Document:

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                                 LONG TERM FIRM
                            POWER PURCHASE AGREEMENT

                                     BETWEEN

                          SIERRA PACIFIC POWER COMPANY

                                       AND

                                     ORNI 7

                                  JUNE 28, 2004

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                                TABLE OF CONTENTS

SECTION                                                                                                        PAGE
-------                                                                                                        ----

1.      DEFINITIONS.............................................................................................. 1

2.      TERM; TERMINATION AND SURVIVAL OF OBLIGATIONS............................................................12

3.      SUPPLY SERVICE OBLIGATIONS...............................................................................13

4.      PRICE OF PRODUCT.........................................................................................15

5.      RENEWABLE ENERGY CREDITS/RENEWABLE ENERGY BENEFITS.......................................................16

6.      TAX CREDITS..............................................................................................17

7.      RENEWABLE QUOTAS.........................................................................................18

8.      RIGHT OF FIRST OFFER.....................................................................................18

9.      METERING, INVOICING AND PAYMENTS.........................................................................18

10.     FACILITY CONSTRUCTION; OPERATIONS AND MODIFICATIONS......................................................22

11.     EMERGENCY................................................................................................25

12.     PLANNED OUTAGES..........................................................................................26

13.     REPORTS; OPERATIONAL LOG.................................................................................27

14.     COMMUNICATIONS...........................................................................................28

15.     SCHEDULING NOTIFICATION..................................................................................29

16.     COMPLIANCE...............................................................................................29

17.     APPROVALS................................................................................................30

18.     SECURITY.................................................................................................31

19.     INDEMNIFICATION..........................................................................................33

20.     LIMITATION OF LIABILITY..................................................................................34

21.     FORCE MAJEURE............................................................................................35

22.     DISPUTES.................................................................................................36

23.     NATURE OF OBLIGATIONS....................................................................................37

24.     ASSIGNMENT...............................................................................................37

25.     DEFAULT AND REMEDIES.....................................................................................38

26.     REPRESENTATIONS AND WARRANTIES OF SUPPLIER...............................................................40

27.     REPRESENTATIONS AND WARRANTIES OF BUYER..................................................................41

28.     INSURANCE................................................................................................42

29.     NOTICES..................................................................................................44

30.     MERGER...................................................................................................45

31.     COUNTERPARTS AND INTERPRETATION..........................................................................45

32.     SEVERABILITY.............................................................................................45

33.     WAIVERS; REMEDIES CUMULATIVE.............................................................................46

34.     AMENDMENTS...............................................................................................46

35.     TIME IS OF THE ESSENCE...................................................................................46

36.     CONFIDENTIALITY..........................................................................................46

37.     CHOICE OF LAW............................................................................................48

38.     FURTHER ASSURANCES.......................................................................................48

39.     No Third Party Beneficiary...............................................................................48

40.     CONFLICTS................................................................................................48

                                       ii

                                    EXHIBITS

EXHIBIT 1     DESCRIPTION OF SUPPLIER'S GENERATING FACILITY.............................................1-1
EXHIBIT 2A    PRODUCT RATES............................................................................2A-1
EXHIBIT 2B    EXCESS PRODUCT RATES.....................................................................2B-1
EXHIBIT 3     STANDBY SERVICE TARIFF....................................................................3-1
EXHIBIT 4     NOTICES, BILLING AND PAYMENT INSTRUCTIONS.................................................4-1
EXHIBIT 5     ONE-LINE DIAGRAM OF GENERATING FACILITY AND INTERCONNECTION FACILITY......................5-1
EXHIBIT 6     PROJECT MILESTONE SCHEDULE................................................................6-1
EXHIBIT 7     PERFORMANCE TESTS.........................................................................7-1
EXHIBIT 8     FORM OF AVAILABILITY NOTICE...............................................................8-1
EXHIBIT 9     BUYER'S REQUIRED REGULATORY APPROVALS.....................................................9-1
EXHIBIT 10    SUPPLIER'S REQUIRED REGULATORY APPROVALS.................................................10-1
EXHIBIT 11    SUPPLIER'S REQUIRED PERMITS FOR CONSTRUCTION
              AND OPERATION............................................................................11-1
EXHIBIT 12    SUPPLIER'S REQUIRED AGREEMENTS...........................................................12-1
EXHIBIT 13    SUPPLY AMOUNT............................................................................13-1
EXHIBIT 14    PIPING / FLOW DIAGRAM OF GENERATING FACILITY.............................................14-1
EXHIBIT 15    OPERATION AND MAINTENANCE AGREEMENT; OPERATOR
              GOOD STANDING CERTIFICATE................................................................15-1
EXHIBIT 16    GROUND LEASE; RIGHTS-OF-WAY..............................................................16-1
EXHIBIT 17    FORM OF LETTER OF CREDIT.................................................................17-1

                                      iii

                                 LONG TERM FIRM
                            POWER PURCHASE AGREEMENT

This Long Term Firm Power Purchase Agreement is made and entered into as of June
28, 2004 (the "Effective Date") by and between Sierra Pacific Power Company, a
Nevada corporation ("Buyer"), and ORNI 7, a Delaware LLC ("Supplier"). Buyer and
Supplier are referred to individually as a "Party" and collectively as the
"Parties".

WHEREAS, Buyer is an operating electric public utility, subject to the
applicable rules and regulations of the PUCN and the FERC;

WHEREAS, the Nevada State Legislature passed the Renewable Energy Law in June
2001, which requires Buyer to purchase a certain percentage of its load
requirements from generating facilities fueled by renewable resources;

WHEREAS, Supplier desires to build the Generating Facility which is a 26 MW
geothermal power plant near Steamboat Springs, Washoe County, Nevada, and which
Supplier desires to designate as a QF or an EWG, as appropriate, with the
Federal Energy Regulatory Commission in order to comply with the requirements of
this Agreement;

WHEREAS, the electricity generated by the Generating Facility will comply with
the requirements of the Renewable Energy Law and satisfy a portion of the
Buyer's obligations under the Renewable Quotas to purchase renewable energy; and

WHEREAS, Supplier desires to sell to Buyer, firm energy generated by the
Generating Facility and to transfer associated renewable energy credits, and
Buyer wishes to purchase such energy and receive such renewable energy credits
from Supplier, upon the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the covenants and
conditions contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Buyer and Supplier,
intending to be legally bound, hereby agree as follows:

1.       DEFINITIONS

         As used in this Agreement, the following terms shall have the meanings
set forth below:

         1.1   "After Tax Basis" means a basis such that any payment received or
               deemed to have been received by a Party (the "Original Payment")
               under the terms of Section 19.1 of this Agreement, shall be
               supplemented by a further payment to such Party so that the sum
               of the two payments shall equal the Original Payment, after
               taking into account (x) all Taxes that would result from the
               receipt or accrual of such payments, if legally required, and (y)
               any reduction in Taxes that would result from the deduction of
               the expense indemnified against, if legally permissible,
               calculated by reference to the highest Federal and Nevada
               statutory Tax rates applicable to corporations doing business in
               Nevada and on a net

               present value basis by reference to the applicable federal rate
               then in effect under section 1274(d) of the Internal Revenue Code
               of 1986, as amended.

         1.2   "Agreement" means this Power Purchase Agreement together with the
               Exhibits attached hereto, as such may be amended from time to
               time.

         1.3   "Average Annual Supply Amount" means the total annual MWh for
               each Contract Year as listed in Exhibit 13 (Supply Amount)
               divided by 8760 hours, as may be adjusted pursuant to Section 3.7
               (Adjustment to Supply Amount). The Average Annual Supply Amount
               for the First Full Contract Year is nineteen and four tenths
               (19.4).

         1.4   "Availability Notice" means a notice delivered by Supplier to
               Buyer pursuant to Section 15 (Scheduling Notification) notifying
               Buyer of the availability of the Generating Facility.

         1.5   "Billing Period" has the meaning ascribed to that term in Section
               9.2.1 (Invoicing and Payment).

         1.6   "Bonneville Power Administration" means Bonneville Power
               Administration, a federal agency under the U.S. Department of
               Energy, that markets wholesale electrical power and operates and
               markets transmission services in the Pacific Northwest, or any
               successor entity thereto.

         1.7   "Business Day" means any day other than Saturday, Sunday, and any
               day that is a holiday observed by Buyer.

         1.8   "Buyer" has the meaning set forth in the preamble of this
               Agreement.

         1.9   "Buyer's REC Account" means the account maintained by the REC
               Administrator for the purpose of tracking the production, sale,
               transfer, purchase and retirement of RECs by Buyer.

         1.10  "Buyer Required Regulatory Approvals" means the approvals,
               consents, authorizations or permits of, or filing with, or
               notification to the Governmental Authorities listed on Exhibit 9.

         1.11  "COB" means an electricity trading hub located near the
               California-Oregon border.

         1.12  "Commercial Operation" means that the Generating Facility has
               been constructed in accordance with the requirements of the IOA
               and Good Utility Practice and has delivered Energy to the
               Delivery Point[s] and all of the requirements set forth in
               Section 0 (Commercial Operation Date) and Exhibits 6 and 7 have
               been satisfied.

         1.13  "Commercial Operation Date" means the date on which Commercial
               Operation occurs.

         1.14  "Confidential Information" has the meaning ascribed to that term
               in Section 36.1 (Confidential Information).

                                       2

         1.15  "Contract Representative" of a Party means the individual
               designated by that Party in Exhibit 4 responsible for ensuring
               effective communication, coordination and cooperation between the
               Parties. A Party may change its Contract Representative by
               providing notice of such change to the other Party in accordance
               with the procedures set forth in Section 29 (Notices).

         1.16  "Contract Year" shall mean each year beginning on January 1 and
               ending on December 31 of such year following the Commercial
               Operation Date; provided, however, that the first Contract Year
               shall commence on the Commercial Operation Date and end on the
               following December 31.

         1.17  "Control Area" has the meaning set forth in the OATT of the
               Control Area Operator as follows:

               An electric power system or combination of electric power systems
               to which a common automatic generation control scheme is applied
               in order to: (i) match, at all times, the power output of the
               generators within the electric power system(s) and capacity and
               energy purchased from entities outside the electric power
               system(s), with the load within the electric power system(s);
               (ii) maintain scheduled interchange with the other Control Areas,
               within the limits of Good Utility Practices; (iii) maintain the
               frequency of the electric power system(s) within reasonable
               limits in accordance with Good Utility Practices; and (iv)
               provide sufficient generating capacity to maintain operating
               reserves in accordance with Good Utility Practices.

         1.18  "Control Area Operator" means a Person, its agents and successors
               that are responsible for the operation of the Transmission System
               and for maintaining reliability of the electrical transmission
               system(s), including the Transmission System, within the Control
               Area. At the time of execution of this Agreement, the Control
               Area Operator is the Transmission Provider.

         1.19  "Credit Rating" of a Person means the credit rating then assigned
               by a Relevant Rating Agency to the long-term senior unsecured
               non-credit-enhanced indebtedness of that Person.

         1.20  "Cure Period" has the meaning ascribed to that term in Section
               25.2.

         1.21  "Default Notice" means the notice of an Event of Default to the
               Defaulting Party.

         1.22  "Defaulting Party" has the meaning ascribed to that term in
               Section 25.1.

         1.23  "Delivered Amount" means, with respect to any Dispatch Hour, the
               actual amount of Energy delivered by Supplier to Buyer at the
               Delivery Point[s] during such Dispatch Hour.

         1.24  "Delivery Point[s]" means the Steamboat substation or other
               points on the Transmission System as may be mutually agreed upon
               by the Parties and set forth in Exhibit 5.

                                       3

         1.25  "Derating" means a condition of the Generating Facility as a
               result of which it is unable to produce the Supply Amount during
               a Dispatch Hour.

         1.26  "Disclosing Party" has the meaning ascribed to that term in
               Section 36.1 (Confidential Information).

         1.27  "Dispatch Hour" means each hour from the Operation Date through
               the end of the Term.

         1.28  "Dispute" has the meaning ascribed to that term in Section 22.1
               (Dispute or Claim).

         1.29  "Effective Date" has the meaning ascribed to that term in the
               preamble of this Agreement.

         1.30  "Emergency" means any circumstance or combination of
               circumstances or any condition of the Generating Facility, the
               Interconnection Facilities, the Transmission System, or the
               transmission system of other electric utilities, which is
               reasonably likely to endanger life or property and necessitates
               immediate action to avert injury to persons or serious damage to
               property or is reasonably likely to adversely affect, degrade or
               impair Transmission System reliability or transmission system
               reliability of other electric utilities.

         1.31  "Energy" means electrical energy (measured in MWh) that is
               generated by the Generating Facility from and after the Operation
               Date. Energy shall also mean the capacity intended to be
               available and/or delivered to the Buyer at the specifications and
               Delivery Point[s] stated herein.

         1.32  "Environmental Law" shall mean any federal, state, and local law
               (including common law), regulation, rule, ordinance, code,
               decree, judgment, binding directive, or judicial or
               administrative order relating to the protection, preservation or
               restoration of human health, the environment, or natural
               resources, including any law relating to the releases or
               threatened releases of Hazardous Substances into any media
               (including ambient air, surface water, groundwater, land, surface
               and subsurface strata) or otherwise relating to the manufacture,
               processing, distribution, use, treatment, storage, release,
               transport and handling of Hazardous Substances.

         1.33  "EPC Contract" has the meaning set forth in Exhibit 6.

         1.34  "Event of Default" has the meaning ascribed to that term in
               Section 25.1.

         1.35  "EWG" means an exempt wholesale generator pursuant to section 32
               of the Public Utility Holding Company Act of 1935, as amended.

         1.36  "Excess Energy" means, with respect to any Dispatch Hour, any
               Delivered Amount of Energy that exceeds the Supply Amount of
               Energy delivered by Supplier to Buyer at the designated Delivery
               Point[s]. Excess Energy, including Energy in excess of the
               Maximum Amount, is non-firm Energy.

                                       4

         1.37  "Excess Product" means the Product associated with Excess Energy.

         1.38  "Excess Product Rates" means the rates for Excess Product set
               forth in Exhibit 2B of this Agreement under "Excess Product
               Rates".

         1.39  "FERC" means the Federal Energy Regulatory Commission and any
               successor agency thereto.

         1.40  "Force Majeure" has the meaning set forth in Section 21 (Force
               Majeure).

         1.41  "Generating Facility" means Supplier's geothermal generating
               power plant, located near Steamboat Springs, Washoe County,
               Nevada with an aggregate installed total nominal nameplate
               capacity of approximately 26.0 MW and including any associated
               facilities and equipment required to deliver Energy to the
               Delivery Point[s], as further described in Exhibits 1, 5 and 14
               hereto.

         1.42  "Good Utility Practice" means (i) the applicable practices,
               methods and acts required by or consistent with applicable Laws
               and reliability criteria, whether or not the Party whose conduct
               at issue is a member of any relevant organization and otherwise
               engaged in or approved by a significant portion of the electric
               utility industry during the relevant time period, or (ii) 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 to
               acceptable practices, methods or acts generally accepted in the
               region and industry. Good Utility Practice shall include
               compliance with applicable Laws and regulations, applicable
               reliability criteria, and the criteria, rules and standards
               promulgated in the National Electric Safety Code and the National
               Electrical Code, as they may be amended from time to time,
               including the criteria, rules and standards of any successor
               organizations.

         1.43  "Governmental Authority" means, as to any person, any Federal,
               state, local, or other governmental, regulatory or administrative
               agency, court, commission, department, board, or other
               governmental subdivision, legislature, rulemaking board,
               tribunal, or other governmental authority having jurisdiction
               over such Person or its property or operations.

         1.44  "Hazardous Substance" means (i) any petroleum or petroleum
               products, flammable materials, explosives, radioactive materials,
               friable asbestos, urea formaldehyde foam insulation and
               transformers or other equipment that contain dielectric fluid
               containing polychlorinated biphenyls (PCBs) in regulated
               concentrations, (ii) any chemicals or other materials or
               substances which are now or hereafter become defined as or
               included in the definition of "hazardous substances", "hazardous
               wastes", "hazardous materials", "extremely hazardous wastes",
               "restricted hazardous wastes", "toxic substances", "toxic
               pollutants", "contaminants", "pollutants" or words of similar
               import under any Environmental Law and (iii) any other chemical
               or other material or substance, exposure to which is now or
               hereafter prohibited, limited or regulated as such under any

                                       5

               Environmental Law, including the Resource Conservation and
               Recovery Act, 42 U.S.C. Section 6901 et seq., the Comprehensive
               Environmental Response Compensation and Liability Act, 42 U.S.C.
               Section 9601 et seq., or any similar state statute.

         1.45  "IEEE-SA" means the Institute of Electrical and Electronics
               Engineers Standards Association and any successor entity thereto.

         1.46  "Indemnified Party" has the meaning provided in Section 19.1
               (Third Party Claims).

         1.47  "Indemnifying Party" has the meaning provided in Section 19.1
               (Third Party Claims).

         1.48  "Interconnection Facilities" means the equipment and facilities,
               including any modifications, additions and upgrades made to such
               facilities, which are necessary to connect the Generating
               Facility to the Transmission System as described in Exhibit 5.

         1.49  "Invoice" means the statements described in Section 9.2
               (Invoices) setting forth the Supply Amount, Delivered Amount,
               Excess Energy, Shortfall, Replacement Costs, and REC Replacement
               Costs, if any, and the associated payment due for the Billing
               Period or the Contract Year, in the case of REC Replacement
               Costs.

         1.50  "IOA" means the Interconnection and Operating Agreement that has
               been or will be executed between Supplier and Transmission
               Provider, or its successors, for the Generating Facility.

         1.51  "Law" means any federal, state, local or other law (including any
               Environmental Laws), common law, treaty, code, rule, ordinance,
               binding directive, regulation, order, judgment, decree, ruling,
               determination, permit, certificate, authorization, or approval of
               a Governmental Authority, which is binding on a Party or any of
               its property.

         1.52  "Loss" means any and all claims, demands, suits, obligations,
               payments, liabilities, costs, fines, Penalties, sanctions,
               judgments, damages, losses or expenses in connection with any
               claim by a third party against an Indemnified Party pursuant to
               Section 19 (Indemnification).

         1.53  "Material Adverse Effect" means, with respect to a Party, a
               material adverse effect on the ability of such Party to perform
               its obligations under this Agreement, individually or in the
               aggregate, or on the business, operations or financial condition
               of such Party.

         1.54  "Maximum Amount" means, with respect to a Dispatch Hour, an
               amount of Energy equal to 26.0 MWh.

         1.55  "Meter" means any of the physical metering devices, data
               processing equipment and apparatus associated with the meters
               owned by Buyer, or its designee, required for (i) an accurate
               determination of the quantities of Delivered Amounts

                                       6

               from the Generating Facility and for recording other related
               parameters required for the reporting of data to Supplier, and
               (ii) the computation of the payment due to Supplier from Buyer.
               Meters do not include any check meters Supplier may elect to
               install as contemplated by Section 9.1.1 (Meters).

         1.56  "Minimum Credit Rating" of a Person means that the Credit Rating
               of that Person is at least (i) A- (or its equivalent) as
               determined by Standard & Poor's or (ii) A3 (or its equivalent) as
               determined by Moody's.

         1.57  "Moody's" means Moody's Investor Services, Inc, or any successors
               thereto.

         1.58  "MW" means megawatts of electrical power.

         1.59  "MWh" means megawatt hours of electrical energy.

         1.60  "NERC" means the North American Electric Reliability Council and
               any successor entity thereto.

         1.61  "Nevada Power Company" means Nevada Power Company, a Nevada
               corporation and operating electric public utility, or any
               successor entity thereto, subject to the applicable rules of the
               PUCN and the FERC.

         1.62  "Non-Defaulting Party" means the Party other than the Defaulting
               Party.

         1.63  "OATT" means Transmission Provider's or Control Area Operator's
               then-effective Open Access Transmission Tariff, which has been
               accepted for filing by the FERC.

         1.64  "Off-Peak" means hours ending 01 through 06 PPT, hours ending 23
               through 24 PPT and all hours Sunday and NERC designated holidays.

         1.65  "On-Peak" means hours ending 07 through 22 PPT Monday through
               Saturday, other than on NERC designated holidays.

         1.66  "Operating Representative" of a Party means any of the
               individuals designated by that Party, as set forth in Exhibit 4,
               to transmit and receive routine operating and Emergency
               communications required under this Agreement. A Party may change
               any of its Operating Representatives by providing notice of the
               change to the other Party in accordance with the notice
               procedures set forth in Section 29 (Notices) herein.

         1.67  "Operation Date" means the first date on which the Generating
               Facility is energized and operates in parallel with the
               Transmission System and delivers Energy to the Delivery Point[s].

         1.68  "PacifiCorp" means PacifiCorp, an Oregon corporation and an
               electric utility, or any successor entity thereto, subject to the
               applicable rules of the OPUC and the FERC.

                                       7

         1.69  "PPT" means Pacific Standard Time or Pacific Daylight Time, which
               ever is then prevailing.

         1.70  "Party" or "Parties" means each entity set forth in the preamble
               of this Agreement and its permitted successor or assigns.

         1.71  "Penalties" means any penalties, fines, damages, or sanctions
               imposed on Buyer under Laws.

         1.72  "Person" or "Persons" means any natural person, partnership,
               limited liability company, joint venture, corporation, trust,
               unincorporated organization, or Governmental Authority.

         1.73  "Planned Operation Date" means the date specified in Item 5 of
               Exhibit 1 as the date on which the Operation Date is expected to
               occur.

         1.74  "Planned Outage" has the meaning ascribed to that term in Section
               12 (Planned Outages).

         1.75  "Power Quality Standards" means the Power Quality Standards
               established by NERC, WECC, Buyer, IEEE-SA, National Electric
               Safety Code, the National Electric Code, or their respective
               successor organizations or codes as they may be amended from time
               to time and consistent with Good Utility Practice.

         1.76  "Product" means (i) all Energy produced by the Generating
               Facility, except Station Usage (ii) all RECs and (iii) all
               Renewable Energy Benefits.

         1.77  "Product Rates" means the rates set forth in Exhibit 2A of this
               Agreement under "Product Rates".

         1.78  "Project Milestone" means each of the milestones listed in
               Exhibit 6, Project Milestone Schedule under the column "Project
               Milestone".

         1.79  "Project Milestone Schedule" means the schedule of Project
               Milestones, completion dates and required documentation specified
               in Exhibit 6.

         1.80  "PUCN" means the Public Utilities Commission of Nevada and any
               successor entity thereto.

         1.81  "PUCN Approval Date" means the date on which an order of the PUCN
               approving this Agreement becomes effective pursuant to Nevada
               Administrative Code Section 703.790.

         1.82  "QF" means a cogeneration or small power production facility
               which meets the criteria as defined in Title 18, Code of Federal
               Regulations, ss.ss. 292.201 through 292.207.

         1.83  "Qualified Financial Institution" means a financial institution
               having an office in the United States, with total assets of at
               least $10,000,000,000 U.S. and whose

                                       8

               general long-term unsubordinated unsecured debt is rated at least
               "A" by S&P and "A2" by Moody's.

         1.84  "REC Administrator" means the entity appointed by the PUCN to
               administer the REC trading program, pursuant to the Renewable
               Quotas.

         1.85  "Receiving Party" has the meaning ascribed to that term in
               Section 36.1 (Confidential Information).

         1.86  "REC Replacement Costs" has the meaning ascribed to that term in
               Section 3.6.

         1.87  "RECs" means all renewable energy credits, offsets or other
               benefits allocated, assigned or otherwise awarded or certified to
               the Supplier or Buyer by any Governmental Authority or as
               received in connection with Renewable Quotas, in either case
               derived from the ownership or operation of, or production of
               energy from the Generating Facility or due to the Generating
               Facility's use of geothermal resources for generation, whether
               existing now or in the future and whether foreseen or unforeseen,
               including credits, offsets or other benefits attributable,
               without duplication, to (i) Energy sold under this Agreement,
               (ii) Energy consumed by the Generating Facility, such as Station
               Usage or Standby Service, and (iii) the difference between the
               gross metered production and the net metered output of the
               Generating Facility, but in all cases shall not mean Tax Credits
               or Renewable Energy Benefits.

         1.88  "Relevant Rating Agency" means Moody's or S&P.

         1.89  "Renewable Energy Benefits" means any and all economic,
               environmental or other benefits derived from the ownership or
               operation of, or production of Energy from the Generating
               Facility or due to the Generating Facility's use of geothermal
               resources for generation, whether existing now or in the future
               and whether foreseen or unforeseen, including but not limited to
               emissions credits or allowances, but excluding RECs and Tax
               Credits.

         1.90  "Renewable Energy Law" means an act relating to energy, revising
               and clarifying provisions requiring certain providers of electric
               service to comply with a portfolio standard for renewable energy,
               and providing for other matters relating thereto, codified as
               Nevada Revised Statutes ss.ss. 704.7801 to 704.7828, as amended
               or superseded.

         1.91  "Renewable Energy System" means a "renewable energy system" as
               defined in the Renewable Energy Law and the regulations
               promulgated thereunder, as such Laws may be amended or
               superseded.

         1.92  "Renewable Quotas" means any Law, including, without limitation,
               the requirements of Nevada Revised Statutes ss.ss. 704.7801 to
               704.7828, inclusive, as amended or superseded, and regulations
               promulgated thereunder by the PUCN, which impose an obligation on
               Buyer to meet a required percentage of its retail load or energy
               requirements by purchasing or generating electricity derived from
               renewable energy generating facility systems or which provide for
               the trading of RECs, as such Laws may be amended or superseded.

                                       9

         1.93  "Replacement Costs" means, with respect to any period of time,
               the difference between (i) Buyer's costs to replace any Shortfall
               as calculated in Section 3.5.4 plus related Penalties, and
               transmission costs and (ii) the Product Rates multiplied by the
               number of MWhs related to the Shortfall. If the difference is
               less than zero, then the Replacement Costs shall be equal to
               zero.

         1.94  "Schedule" or "Scheduling" means the actions of Supplier, Buyer
               and/or their designated Operating Representatives of notifying,
               requesting, and confirming to each other the amount of Energy to
               be delivered on any given day or days at any given hour at the
               Delivery Point[s].

         1.95  "Shaped COB Firm Price" means an hourly price calculated pursuant
               to the following procedures. The average Dow Jones Mid-Columbia
               Electricity Index hourly prices for firm energy will be
               calculated during the On-Peak and Off-Peak periods as follows:
               (i) the On-Peak average is calculated by summing the 16 On-Peak
               hourly values and dividing by 16, (ii) the Off-Peak average is
               calculated by summing the 8 Off-Peak hourly values and dividing
               by 8, and (iii) for Sunday and NERC holidays, a 24 hour average
               is calculated by summing the 24 hourly values and dividing by 24.
               For each hour, an hourly shaping factor is calculated by taking
               the Dow Jones Mid-Columbia Electricity Index hourly price for
               firm energy for that hour and dividing by the corresponding
               On-Peak average, Off-Peak average or 24-hour average determined
               by the preceding sentence. The Shaped COB Firm Price is
               calculated for each hour by taking the hourly shaping factor for
               the hour (a) multiplied by the On-Peak, Off-Peak or 24 hour Dow
               Jones COB Electricity Index price for firm energy that
               corresponds to that hour, (b) multiplied by 106.46% (based on a
               6.46% transmission loss factor) and (c) added to $8.56/MWh. The
               amounts in subsections (b) and (c) above are designed to take
               into account the cost of transmission to deliver energy from COB
               and currently represent the point-to-point transmission rates for
               PacifiCorp and Bonneville Power Administration under their Open
               Access Transmission Tariff and shall be updated from time to time
               to account for any change in those tariffs or other transmission
               costs. The Parties will endeavor to agree on appropriate changes
               in these amounts, but failing that agreement, the appropriate
               amount will be determined through the process for resolving
               Disputes in Section 22 (Disputes) of the Agreement.

         1.96  "Shortfall" means the amount, if any, by which the Delivered
               Amount of Energy is less than the Supply Amount of Energy in any
               Dispatch Hour.

         1.97  "Sierra Pacific Power Company" means Sierra Pacific Power
               Company, a Nevada corporation and an operating electric public
               utility, or any successor entity thereto, subject to the
               applicable rules of the PUCN and the FERC.

         1.98  "Standard and Poor's" or "S&P" means Standard and Poor's Ratings
               Group, a division of McGraw Hill, Inc., or any successors
               thereto.

         1.99  "Standby Service" means the electric service supplied by Sierra
               Pacific Power Company for Station Usage pursuant to the PUCN
               approved tariff, a copy of

                                       10

               which is attached hereto as Exhibit 3, as such tariff may be
               amended from time to time.

         1.100 "Station Usage" means all Energy used by the Generating Facility.

         1.101 "Supplier" has the meaning set forth in the preamble of this
               Agreement.

         1.102 "Supplier Required Regulatory Approvals" means the approvals,
               consents, authorizations or permits of, or filings with or
               notifications to the Governmental Authorities listed on Exhibit
               10.

         1.103 "Supply Amount" means, with respect to any Dispatch Hour, the
               amount of Energy stated in Exhibit 13 unless reduced due to a
               Planned Outage pursuant to Section 12.1.2, or as may be adjusted
               pursuant to Section 3.7.1 and Section 3.7.2. The Supply Amount is
               firm Energy.

         1.104 "Tax" or "Taxes" means any Federal, state, local or foreign
               income, gross receipts, license, payroll, employment, excise,
               severance, stamp, occupation, premium, windfall profits,
               environmental, customs duties, capital stock, franchise, profits,
               withholding, social security (or similar), unemployment,
               disability, real property (including assessments, fees or other
               charges based on the use or ownership of real property), personal
               property, transactional, sales, use, transfer, registration,
               value added, alternative or add-on minimum, estimated tax, or
               other tax of any kind whatsoever, or any liability for unclaimed
               property or escheatment under common law principles, including
               any interest, penalty or addition thereto, whether disputed or
               not, including any item for which liability arises as a
               transferee or successor-in-interest.

         1.105 "Tax Credits" has the meaning ascribed to that term in Section
               6.1.

         1.106 "Term" has the meaning ascribed to that term in Section 2.2
               (Term).

         1.107 "Transferred RECs" means RECs that have been transferred by
               Supplier to Buyer pursuant to the terms of the Agreement, in
               accordance with the Renewable Quotas and which have been properly
               recorded to Buyer's REC Account.

         1.108 "Transmission Provider" means Sierra Pacific Power Company or any
               successor operator or owner of the Transmission System.

         1.109 "Transmission System" means the facilities used for the
               transmission of electric energy in interstate commerce, including
               any modifications or upgrades made to such facilities, owned or
               operated by the Transmission Provider, except the Interconnection
               Facilities.

         1.110 "UEPA" means the Utility Environmental Protection Act, as set
               forth in NRS 704.820 to 704.900.

         1.111 "WECC" means the Western Electric Coordinating Council (formerly
               Western System Coordinating Council) and any successor entity
               thereto.

                                       11

         1.112 "Yearly REC Amount" shall be 208,000,000 RECs for each Contract
               Year or as may be adjusted pursuant to Section 3.7 (Adjustment To
               Supply Amount). If the initial Contract Year is not a full
               Contract Year, then the Yearly REC Amount shall be the number of
               full calendar months ("FCM") the Generating Facility is in
               Commercial Operation during the first Contract Year divided by 12
               multiplied by 208,000,000.

2.    TERM; TERMINATION AND SURVIVAL OF OBLIGATIONS

         2.1   Effective Date. This Agreement shall become effective on the
               Effective Date.

         2.2   Term. Supplier's obligation to deliver Product, and Buyer's
               obligation to accept and pay for Product, under this Agreement
               shall commence on the Operation Date and shall continue for a
               period of 20 years from January 1 immediately following the
               Commercial Operation Date, subject to earlier termination of this
               Agreement pursuant to the terms hereof (the "Term"); provided,
               however, that for the avoidance of doubt, unless the approvals
               described in Section 17.2 (PUCN Approval), are received as
               contemplated thereby, Buyer shall not be obligated to accept or
               pay for any Product.

         2.3   Termination.

               2.3.1  Mutual Agreement. This Agreement may be terminated by
                      written agreement of the Parties.

               2.3.2  For Cause. This Agreement may be terminated at any time by
                      the Non-Defaulting Party upon 14 days' prior notice to the
                      Defaulting Party in the event an Event of Default has
                      occurred and is continuing after the applicable Cure
                      Period (if any) set forth in Section 25.2 has expired.

               2.3.3  Optional Termination. This Agreement may be terminated at
                      any time upon 14 days written notice from Buyer in the
                      event the PUCN and FERC approval[s] are not obtained
                      pursuant to Section 17 (Approvals).

               2.3.4  Force Majeure. Except as set forth immediately below, this
                      Agreement may be terminated by either Party if the other
                      Party's obligations hereunder have been excused by the
                      occurrence of an event of Force Majeure pursuant to
                      Section 21 (Force Majeure) for longer than 6 consecutive
                      months. If an event of Force Majeure has caused a
                      catastrophic failure of major equipment (such as but not
                      limited to the turbine or generator) used to provide
                      Product, and if Seller documents and Buyer verifies that
                      the replacement or repair time for that major equipment
                      exceeds 6 months, Buyer may not exercise its rights under
                      this paragraph until the Seller's obligations hereunder
                      have been excused for longer than 12 consecutive months.

               2.3.5  No termination of this Agreement by Supplier shall be
                      effective unless (i) Supplier has first given Nevada Power
                      Company a written offer to enter into a new power purchase
                      agreement on the identical terms set forth in this
                      Agreement and (ii) Nevada Power Company shall not have

                                       12

                      accepted such offer by written notice to the Parties
                      within 14 days of receipt of such offer.

         2.4   Effect of Termination - Survival of Obligations. Any default
               under or termination of this Agreement or expiration of the Term
               shall not release either Party from any applicable provisions of
               this Agreement with respect to:

               2.4.1  The payment of any amounts owed to the other Party arising
                      prior to or resulting from termination of, or on account
                      of breach of, this Agreement;

               2.4.2  Indemnity obligations contained in Section 19
                      (Indemnification), which shall survive to the full extent
                      of the statute of limitations period applicable to any
                      third party claim;

               2.4.3  Limitation of liability provisions contained in Section 20
                      (Limitation of Liability);

               2.4.4  For a period of one year after the termination date, the
                      right to submit a payment dispute pursuant to Section 22
                      (Disputes);

               2.4.5  The resolution of any dispute submitted pursuant to
                      Section 22 (Disputes) prior to, or resulting from,
                      termination; or

               2.4.6  The obligations under Section 36 (Confidentiality).

3.    SUPPLY SERVICE OBLIGATIONS

         3.1   Supply Amount. Subject to the other provisions of this Agreement,
               commencing on the Commercial Operation Date, Supplier shall
               supply and deliver the Supply Amount to Buyer during every
               Dispatch Hour on a continuous basis at the Delivery Point[s].

         3.2   Dedication. All Product shall be dedicated exclusively to Buyer
               for the Term of this Agreement.

         3.3   Buyer's Obligation and Delivery. Buyer shall take delivery of the
               Supply Amount and any Excess Energy at the Delivery Point[s] in
               accordance with the terms of this Agreement. Supplier shall be
               responsible for all costs associated with delivery of the Supply
               Amount and any Excess Energy to the Delivery Point[s].

         3.4   Consumption. Supplier shall acquire Standby Service necessary to
               meet the electrical requirements of the Generating Facility.

         3.5   Replacement Costs.

               3.5.1  After Commercial Operation, if the sum of the Delivered
                      Amount, not including any Excess Energy delivered during
                      Off-Peak Hours, over a monthly Billing Period is less than
                      95% of the sum of the Supply

                                       13

                      Amount over the same period, the Buyer shall calculate its
                      Replacement Costs and the Supplier shall reimburse the
                      Buyer for all of its Replacement Costs for the period.

               3.5.2  After Commercial Operation, if the sum of the Delivered
                      Amount, not including any Excess Energy delivered during
                      Off-Peak Hours, over a monthly Billing Period is equal to
                      or greater than 95% of the sum of the Supply Amount over
                      the same period, the Supplier shall not reimburse the
                      Buyer for its Replacement Costs for the period.

               3.5.3  The Parties recognize and agree that the payment of
                      amounts by Supplier pursuant to this Section 3.5
                      (Replacement Costs) is an appropriate remedy in the event
                      of such a failure and that any such payment does not
                      constitute a forfeiture or penalty of any kind, but rather
                      constitutes anticipated costs to Buyer under the terms of
                      this Agreement.

               3.5.4  The cost to Buyer to replace any Shortfall of Energy shall
                      be determined solely by Buyer from the higher of the
                      following amounts: (i) the Shaped COB Firm Price or (ii)
                      the incremental cost of generation owned by Sierra Pacific
                      Power Company, which incremental cost shall be calculated
                      based on the daily incremental fuel cost and the
                      applicable unit's incremental heat rate curve plus the
                      applicable unit's operation and maintenance cost. The
                      operation and maintenance cost shall be equal to the
                      average operation and maintenance cost per kWh for the
                      applicable unit derived from the most recent FERC Form 1
                      filing.

               3.5.5  Information used by Buyer to establish Replacement Costs
                      shall be verifiable and Buyer shall on a quarterly basis
                      make available to Supplier supporting calculations
                      pursuant to Section 9.2.4 (Payment to Buyer).

         3.6   REC Replacement Costs.

               3.6.1  If after the REC Administrator issues all the REC
                      statements for a Contract Year, as of December 31 of such
                      Contract Year, the sum of Transferred RECs for such
                      Contract Year is less than the Yearly REC Amount, and to
                      the extent such shortfall is not excused due to Force
                      Majeure, then Supplier shall indemnify Buyer for any costs
                      required to purchase RECs in replacement of those RECs not
                      delivered ("REC Replacement Costs").

               3.6.2  The cost to Buyer to replace any RECs not delivered,
                      pursuant to Section 3.6.1 shall be determined solely by
                      Buyer based on the cost of purchasing replacement RECs
                      with a comparable expiration date or the cost of replacing
                      RECs not delivered with RECs of the Buyer's choice already
                      in the Buyer's REC Account; provided, however, that Buyer
                      shall not be required to purchase such replacement RECs in
                      order receive payment for REC Replacement Costs.

                                       14

               3.6.3  Information used by Buyer to establish REC Replacement
                      Costs shall be verifiable and Buyer shall make available
                      to Supplier supporting calculations pursuant to Section
                      9.2.4 (Payment to Buyer).

         3.7   Adjustment to Supply Amount

               3.7.1  Prior to Commercial Operation: On or before Milestone "G"
                      of Exhibit 6, but no later than thirteen (13) months after
                      PUCN approval of this Agreement, the Supplier may, only
                      once as set forth herein, increase the Maximum Amount,
                      Supply Amount, Average Annual Supply Amount, Yearly REC
                      Amount and the amounts in Section 1.40 (Generating
                      Facility). The amounts may be increased such that (i) the
                      Average Annual Supply Amount shall be equal to or less
                      than 24.5 MW, and (ii) the Maximum Amount and Yearly REC
                      Amount shall increase in the same proportion as the
                      increase of the Average Annual Supply Amount in the first
                      Contract Year that is a full calendar year (the "First
                      Full Contract Year"). The Average Annual Supply Amount for
                      any Contract Year shall not exceed the Average Annual
                      Supply Amount for the First Full Contract Year determined
                      pursuant to this Section 3.7.1

               3.7.2  After Commercial Operation Date. On or before October 1 of
                      each year, Supplier may reduce or increase the Supply
                      Amount and/or Yearly REC Amount, provided that (i) the
                      Average Annual Supply Amount shall not exceed the Average
                      Annual Supply Amount for the First Full Contract Year as
                      such may be modified in Section 3.6.1 and (ii) the Supply
                      Amount may not be increased above the Maximum Amount, by
                      providing notice of such to Buyer. Each reduction or
                      increase, subject to this provision, (a) may not be
                      greater than 5% of the Average Annual Supply Amount in
                      that year, and (b) only applies to the third subsequent
                      Contract Year and remaining Contract Years and shall not
                      apply to the first or second subsequent Contract Years. In
                      no event shall reductions in the Supply Amount and Yearly
                      REC Amount be allowed to accommodate sales of Product,
                      Energy, RECs, or Renewable Energy Benefits to third
                      parties. Reductions to the Supply Amount are capped such
                      that the Average Annual Supply Amount must always be equal
                      to or greater than eighty (85%) of the greater of (i) the
                      original Average Annual Supply Amount on the Effective
                      Date, or (ii) the increased Average Annual Supply Amount
                      pursuant to Section 3.7.1 above. The Yearly REC Amount may
                      only be reduced by up to the same percentage that the
                      Average Annual Supply Amount is reduced and must always be
                      equal to or greater than 85% of the Yearly REC Amount for
                      the First Full Contract Year on the Effective Date.

4.    PRICE OF PRODUCT

         4.1   Product Payments. Supplier shall be paid for the Product based on
               the Delivered Amount of Energy as determined by hourly data from
               monthly Meter readings, as follows:

                                       15

               4.1.1  Upon the Operation Date and prior to the Commercial
                      Operation Date, all Product associated with Delivered
                      Amounts of Energy from the Generating Facility shall be
                      paid for by Buyer at the lesser of (i) 90% of the Dow
                      Jones COB Electricity Index for firm energy or (ii) 90% of
                      the Dow Jones COB Electricity Index for non-firm energy,
                      or (iii) the Excess Product Rates as set forth in Exhibit
                      2B.

               4.1.2  Subsequent to the Commercial Operation Date.

                      4.1.2.1  All Product associated with Delivered Amounts of
                               Energy from the Generating Facility other than
                               Excess Energy, from and after the Commercial
                               Operation Date, shall be paid for by Buyer at the
                               Product Rates set forth in Exhibit 2A.

                      4.1.2.2  All Product associated with Excess Energy from
                               the Generating Facility, from and after the
                               Commercial Operation Date, shall be paid for by
                               Buyer at the lesser of (i) 90% of the Dow Jones
                               COB Electricity Index for firm energy or (ii) 90%
                               of the Dow Jones COB Electricity Index for
                               non-firm energy, or (iii) the Excess Product
                               Rates as set forth in Exhibit 2B.

               4.1.3  Maximum Amount. All Product delivered during any Dispatch
                      Hour in excess of the Maximum Amount shall be paid for by
                      Buyer at the lesser of (i) 75% of the Dow Jones COB
                      Electricity Index for firm energy or (ii) 75% of the Dow
                      Jones COB Electricity Index for non-firm energy, or (iii)
                      75% of the Excess Product Rates as set forth in Exhibit
                      2B.

5.    RENEWABLE ENERGY CREDITS/RENEWABLE ENERGY BENEFITS

         5.1   Transfer of Credits. Supplier hereby transfers to Buyer all RECs
               derived from the ownership or operation of, or production of
               energy from, the Generating Facility and Energy for Station
               Usage, and any benefits derived from RECs, whether existing now
               or in the future and whether foreseen or unforeseen. All RECs and
               any benefits derived therefrom are exclusively dedicated to and
               vested in Buyer. Supplier shall timely prepare and execute all
               documents and shall take all actions necessary under Nevada Law
               or regulation or other Law to cause the RECs to vest in the
               Buyer, without further compensation, including the registration
               of the Generating Facility with the PUCN or other Governmental
               Authority, the provision of periodic production data to the PUCN
               or REC trading program administrator and the filing of requests
               with the trading administrator for transfers of RECs to Buyer.
               Supplier and Buyer will use their mutual and best commercial
               efforts to support and affect the registration of the transfer of
               RECs with the PUCN or other Governmental Authority. The quantity
               of RECs transferred to Buyer shall be the amount of RECs
               attributable to the ownership and operation of, and all energy
               produced at, the Generating Facility and Energy for Station
               Usage. All RECs in addition to RECs related to Energy purchased
               under the Agreement are transferred at no expense to the Buyer.
               RECs shall be deemed transferred to the Buyer when they have been
               properly recorded in the Buyer's REC Account by

                                       16

               the REC Administrator, pursuant to the terms of the Agreement and
               in accordance with the Renewable Quotas.

         5.2   Renewable Energy Benefits. Supplier hereby transfers to Buyer, at
               no charge to Buyer, all Renewable Energy Benefits, in and of
               themselves and as derived from the ownership or operation of, or
               production of energy from the Generating Facility, or due to the
               Generating Facility's use of geothermal resources for generation.
               All Renewable Energy Benefits derived therefrom are exclusively
               dedicated to and vested in Buyer. Supplier shall timely execute
               all documents and shall timely take all actions necessary under
               Nevada Law or regulation or other Law to cause the Renewable
               Energy Benefits to vest in or be transferred to Buyer, without
               further compensation. The amount of Renewable Energy Benefits
               transferred to Buyer shall be the amount of Renewable Energy
               Benefits derived from the ownership or operation of or production
               of energy from the Generating Facility or due to the Generating
               Facility's use of geothermal resources for generation or other
               applicable standards.

6.    TAX CREDITS

         6.1   The Parties agree that the price of the Product as provided for
               in Section 4 (Price of Products) and as specified in Exhibits 2A
               and 2B accounts for state, local and/or Federal production tax
               credit[s] and or investment tax credit[s] specific to investments
               in renewable energy production and delivery facilities (if any)
               ("Tax Credit[s]") in effect as of the Effective Date of this
               Agreement. If, in any year, Supplier or its investors receive any
               quantifiable benefit as a result of the availability or enactment
               of additional Tax Credit[s] at any time, or the extension of
               deadlines for the expiration of existing Tax Credit[s] at any
               time, then Supplier shall pay to Buyer the quantifiable benefit
               received by Supplier or its investors of such additional or
               extended Tax Credit[s]. Whether any such new or extended Tax
               Credit will have such a quantifiable benefit in any year will be
               determined by the Supplier's independent, third-party auditor or,
               if Supplier's auditor refuses or is unable to make such
               determination, by another auditor jointly selected by the
               Parties, within 120 days of the end of such year, which auditor
               shall not be the then current auditor of either party. This
               determination will be based upon the availability of credits for
               Product sales made under this Agreement or Supplier and its
               investors' ability to use Tax Credits over such year. Based on
               this analysis, such a quantifiable benefit, if any, will be
               certified to Buyer by an officer of Supplier in a report that
               summarizes the reasons for the auditor's conclusions as to why
               such Tax Credits will or will not have a quantifiable benefit.
               Buyer shall have the right to review and approve such report
               which approval shall not be unreasonably withheld. If Buyer does
               not approve Supplier's report, then the quantifiable benefit will
               be determined through the dispute resolution provisions of
               Section 22 (Disputes) below. Supplier shall make payment of any
               amount due under this Section in 12 equal monthly installments
               (together with interest on such amount from the end of the
               applicable calendar year at the rate calculated in Section 9.3
               (Overdue Amounts and Refunds)), the first installment of which
               shall be due within 30 days after Buyer's approval of the
               certified report referred to above (or as otherwise determined
               through the dispute resolution provisions if such report is not
               approved by Buyer). Supplier shall apply for any Tax Credit[s]

                                       17

               which might be available to Supplier or the Generating Facility
               from any Governmental Authority.

         6.2   Supplier and Buyer agree that the Product Rates set forth in
               Exhibit 2A and Exhibit 2B are not subject to adjustment or
               amendment if Supplier fails to receive any Tax Credits, or if
               such Tax Credits expire, are repealed or otherwise cease to apply
               to the Supplier or the Generating Facility in whole or in part,
               or Supplier or its investors are unable to benefit from such Tax
               Credit.

7.    RENEWABLE QUOTAS

         7.1   The Parties agree that the RECs will be used by Buyer in meeting
               its obligations pursuant to the Renewable Quotas and the
               regulations promulgated thereunder as either may be amended or
               superseded or as otherwise determined by Buyer. Supplier shall
               cooperate with Buyer in all respects to ensure Buyer's compliance
               with all applicable requirements set forth in the Renewable
               Quotas and any regulations promulgated thereunder and shall
               provide all information reasonably requested by Buyer or
               otherwise necessary to allow the PUCN to determine compliance
               with the Renewable Quotas and regulations adopted pursuant
               thereto.

8.    RIGHT OF FIRST OFFER

         8.1   Should Supplier (or any direct parent of Supplier) intend to sell
               the Generating Facility (or its direct equity interests in
               Supplier), before any such sale may occur, Supplier shall give
               notice thereof to Buyer. Upon Buyer's receipt of such notice,
               Buyer shall have the right to negotiate in good faith with
               Supplier for no more than 60 days, unless otherwise agreed to by
               Supplier, the terms of the sale of the Generating Facility to
               Buyer or its designee on an exclusive basis. If Buyer desires to
               enter into such negotiation, Buyer shall notify Supplier of such
               decision within 15 days of receipt of Supplier's notice, and
               Buyer's failure to do so within such 15 day period shall be
               deemed a rejection by Buyer of its right to so negotiate.
               Supplier will provide in a timely manner, information regarding
               the Generating Facility which is customary to allow the Buyer to
               perform due diligence and to negotiate in good faith for the
               purchase of the Generating Facility, such information to be
               provided only after the execution by the Parties of a
               non-disclosure agreement that governs the delivery, return, and
               destruction of such information as appropriate. If the Parties
               fail to execute a definitive agreement to effect Buyer's purchase
               of the Generating Facility within the 60 day period, Supplier
               shall be free to sell the Generating Facility as intended.

         8.2   In the event that Buyer does not exercise its right pursuant to
               Section 8.1 within 60 days as set forth above, Supplier must
               comply with Section 24 (Assignment) in any assignment or
               delegation of Supplier's rights, interests or obligations herein
               to a purchaser of the Generating Facility.

9.    METERING, INVOICING AND PAYMENTS

         9.1   Metering.

                                       18

               9.1.1  Meters. Buyer shall, at Supplier's cost, provide, install,
                      own, operate and maintain all Meters in good operating
                      condition. The Meters shall be used for quantity
                      measurements under this Agreement. Such equipment shall be
                      bi-directional and shall be capable of measuring and
                      reading instantaneous and hourly real and reactive energy
                      and capacity. The Meters shall also be used for, among
                      other things, metering Station Usage of the Supplier's
                      Generating Facility. Supplier, at its own expense, may
                      install additional check meters. Any check-metering
                      equipment to be installed by Supplier on Buyer-owned
                      facilities shall be mutually agreed upon and installation
                      procedures shall be developed.

               9.1.2  Location. Meters shall be installed at the location
                      specified in Exhibit 5, or as otherwise reasonably
                      determined by Buyer to effectuate this Agreement.

               9.1.3  Non-Interference. Supplier shall not undertake any action
                      that may interfere with the operation of the Meters.
                      Supplier shall be liable for all costs, expense, and
                      liability associated with any such interference with the
                      Meters.

               9.1.4  Meter Testing. Meters shall be tested at least once every
                      calendar year by Buyer. Either Party may request a special
                      test of Meters or check meters, but such Party shall bear
                      the cost of such testing unless there is an inaccuracy
                      outside the limits established in American National
                      Standard Institute Code for Electricity Metering (ANSI
                      C12.1, latest version), in which case the Party whose
                      meters were found to be inaccurate shall be responsible
                      for the costs of the special testing. Meters installed
                      pursuant to this Agreement shall be sealed and the seal
                      broken only when the meters are to be adjusted, inspected
                      or tested. Authorized representatives of both Parties
                      shall have the right to be present at all routine or
                      special tests and to inspect any readings, testing,
                      adjustment or calibration of the Meters or check meters.
                      Buyer's Operating Representative shall provide 15 days
                      prior notice of routine meter testing to Supplier's
                      Operating Representative. If Supplier has installed check
                      meters in accordance with Section 9.1.1 (Meters), Supplier
                      shall test and calibrate each such meter at least once
                      every calendar year. Supplier's Operating Representative
                      shall provide 15 days prior notice of routine check meter
                      testing to Buyer's Operating Representative. In the event
                      of special meter testing, the Parties Operating
                      Representatives shall notify each other with as much
                      advance notice as practicable.

               9.1.5  Metering Accuracy. If the Meters are registering but their
                      accuracy is outside the limits established in ANSI C12.1,
                      Buyer shall repair and recalibrate or replace the Meters
                      and Buyer shall adjust payments to Supplier for the
                      Delivered Amount for the lesser of the period in which the
                      inaccuracy existed or 90 days. If the period in which the
                      inaccuracy existed cannot be determined, adjusted payments
                      shall be made for a period equal to one-half of the
                      elapsed time since the latest prior test

                                       19

                      and calibration of the Meters; however, the adjustment
                      period shall not exceed 90 days. If adjusted payments are
                      required, Buyer shall render a statement describing the
                      adjustments to Supplier within 30 days of the date on
                      which the inaccuracy was rectified. Additional payments to
                      Supplier, or Buyer's Invoice for refunds due Buyer, as
                      applicable shall accompany Buyer's statement. Any payments
                      required pursuant to this Section shall be made within 30
                      days of receipt of Buyer's statement.

               9.1.6  Failed Meters. If the Meters fail to register, Buyer shall
                      make payments to Supplier based upon Supplier's check
                      metering, provided, however, that if the accuracy of the
                      check meters is subsequently determined to be outside the
                      limits established in ANSI C12.1, Buyer shall adjust the
                      payments to Supplier for the Delivered Amount calculated
                      using the check meters for the lesser of the period in
                      which the inaccuracy existed or 90 days. If the period in
                      which the inaccuracy cannot be determined, adjusted
                      payments shall be made for a period equal to one-half of
                      the elapsed time since the latest prior test and
                      calibration of the check meters; however, the adjustment
                      period shall not exceed 90 days. If no such metering is
                      available, payments shall be based upon Buyer's best
                      estimate of the Delivered Amount. In such event, Buyer's
                      estimated payments shall be in full satisfaction of
                      payments due hereunder.

         9.2   Invoices.

               9.2.1  Invoicing and Payment. On or before the last day of each
                      month, Buyer shall send to Supplier an Invoice for the
                      prior month (a "Billing Period"). The Invoice shall be
                      calculated based upon Meter data available to Buyer and
                      shall comply with this Section.

               9.2.2  Monthly Invoice Calculation. On each monthly Invoice,
                      Buyer shall calculate the following amounts:

                      9.2.2.1  The Supply Amount during each Dispatch Hour of
                               the Billing Period;

                      9.2.2.2  The sum of the Supply Amounts during all Dispatch
                               Hours of the Billing Period;

                      9.2.2.3  The Delivered Amount, excluding Excess Energy,
                               during each Dispatch Hour of the Billing Period;

                      9.2.2.4  The sum of the Delivered Amounts, excluding
                               Excess Energy, during all Dispatch Hours of the
                               Billing Period multiplied by the Product Rate for
                               Delivered Amounts;

                      9.2.2.5  If applicable, Excess Energy delivered during
                               each Dispatch Hour of the Billing Period;

                                       20

                      9.2.2.6  If applicable, the sum of the Excess Energy
                               during all Dispatch Hours of the Billing Period
                               multiplied by the applicable rate for Excess
                               Product;

                      9.2.2.7  The Shortfall, if any, during each Dispatch Hour
                               of the Billing Period;

                      9.2.2.8  The sum of the Shortfalls, if any, during all
                               Dispatch Hours of the Billing Period;

                      9.2.2.9  The Replacement Costs, if any, in respect of the
                               Shortfall referred to in Section 9.2.2.7 above,
                               during each Dispatch Hour of the Billing Period;
                               and

                      9.2.2.10 The sum of the Replacement Costs, if any, during
                               all Dispatch Hours of the Billing Period.

               9.2.3  Replacement REC Invoice Calculation. In addition to the
                      requirements for monthly Invoices set forth in Section
                      9.2, after the REC Administrator issues its final REC
                      statement for a Contract Year, the Buyer shall send to
                      Supplier a yearly Invoice for such Contract Year, which
                      shall include the following calculations:

                      9.2.3.1  The sum of the Transferred RECs during the
                               Contract Year;

                      9.2.3.2  The difference between the Yearly REC Amount and
                               the sum of the Transferred RECs during such
                               Contract;

                      9.2.3.3  The REC Replacement Costs, if any, payable to
                               Buyer in respect of the undelivered RECs referred
                               to in Section 9.2.3.2 above, during such Contract
                               Year.

               9.2.4  Payment to Buyer. In the event any Shortfall occurs
                      pursuant to Section 3 (Supply Service Obligations), the
                      Invoice referred to in Section 9.2.1 (Invoicing and
                      Payment) above shall deduct Replacement Costs, REC
                      Replacement Costs and any other amounts owing to Buyer
                      from amounts due to Supplier and shall indicate the net
                      payment due Supplier or Buyer, as applicable. Buyer shall
                      provide supporting data in reasonable detail to support
                      its calculations of Replacement Costs, REC Replacement
                      Costs and any other amounts owing to Buyer. Any payment
                      due to Buyer shall be made within ten calendar days of the
                      date of the Invoice.

               9.2.5  Method of Payment. Contemporaneously with delivery of the
                      Invoice, Buyer shall remit the payment amount by wire or
                      electronic fund transfer or otherwise pursuant to the
                      instructions stated in Exhibit 4.

               9.2.6  Examination and Correction of Invoices. As soon as
                      practicable, but no later than 12 months after Supplier's
                      receipt of Buyer's Invoice and

                                       21

                      payment, Supplier shall notify Buyer in writing of any
                      alleged error in Buyer's Invoice.

                      9.2.6.1  If Supplier notifies Buyer of an alleged error in
                               Buyer's Invoice, the Parties agree to make good
                               faith efforts to reconcile the billing and
                               mutually agree on the appropriate remedy, if any.

                      9.2.6.2  If a correction is determined to be required,
                               Buyer shall provide an adjusted Invoice to
                               Supplier. If such error results in an additional
                               payment to Supplier, Buyer's payment in the
                               amount due Supplier shall accompany the adjusted
                               Invoice. If such error resulted in a refund owed
                               to Buyer, Supplier shall pay Buyer the amount of
                               the Invoice within 10 calendar days of the date
                               of the statement or at Buyer's option, Buyer may
                               offset such amount against the subsequent monthly
                               payment to Supplier.

                      9.2.6.3  If Supplier fails to provide notice of an alleged
                               error within 12 months of receipt of an Invoice,
                               then Supplier shall be deemed to have waived all
                               rights to object to the Invoice for the subject
                               Billing Period.

                      9.2.6.4  Buyer may correct any Invoice errors it discovers
                               and make adjustments in payments as a result
                               thereof within 12 months of Supplier's receipt of
                               Buyer's Invoice.

         9.3   Overdue Amounts and Refunds. Overdue amounts and refunds of
               overpayments shall bear interest from and including, the due date
               or the date of overpayment, as the case may be, to the date of
               payment of such overdue amounts or refund at a rate calculated
               pursuant to 18 C.F.R. ss. 35.19a.

         9.4   Buyer Right to Offset. Buyer shall have the right to offset any
               amounts Supplier owes to Buyer against the amounts owed by Buyer
               to Supplier.

         9.5   Taxes. If Buyer is required to remit any Taxes imposed on or
               associated with the Energy or its delivery up to the Delivery
               Point[s], the amount shall be deducted from any sums due to the
               Supplier. Either Party, upon written request of the other Party,
               shall provide a certificate of exemption or other reasonably
               satisfactory evidence of exemption if either Party is exempt from
               Taxes, and shall use reasonable efforts to obtain and cooperate
               with the other Party in obtaining any exemption from or reduction
               of any Tax.

               Supplier shall indemnify and hold harmless Buyer from and against
               Taxes imposed on Buyer as a result of Supplier's actions or
               inactions and that otherwise would not have occurred in the
               absence of this Agreement in accordance with Section 19
               (Indemnification).

                                       22

10.   FACILITY CONSTRUCTION; OPERATIONS AND MODIFICATIONS

         10.1  Construction of Generating Facility. Supplier shall construct the
               Generating Facility in accordance with Good Utility Practices, in
               accordance with the Project Milestones and to ensure (i) Supplier
               is capable of meeting its supply obligations over the Term, (ii)
               the Generating Facility is at all times a Renewable Energy System
               and (iii) Supplier is at all times in compliance with all
               requirements of a renewable energy generator set forth in the
               Renewable Energy Law and any regulations promulgated thereunder.
               Supplier shall provide to Buyer in a form satisfactory to Buyer:
               (i) within 30 days after execution of the IOA, an update to
               Exhibit 5 which shall include a single line diagram of the
               Generating Facility, Interconnection Facilities, the Delivery
               Point[s] and the location of Meters, which location shall be
               reasonably acceptable to Buyer; (ii) within 30 days of the
               commencement of construction of the Generating Facility, Exhibit
               14; and (iii) within 30 Business Days after the Commercial
               Operation Date, a revised version of Exhibit 14 reflecting the
               Generating Facility as built. At Buyer's request, Supplier shall
               provide Buyer with copies of the construction contract for the
               facility and any documentation and drawings reasonably requested
               by Buyer, redacted of any pricing and Confidential Information.

         10.2  Performance of Project Milestones. Supplier shall complete each
               Project Milestone specified in Exhibit 6, Project Milestone
               Schedule, on or before 1600 hours PPT on the date specified for
               each Project Milestone listed in Exhibit 6.

               10.2.1 Completion of Project Milestones. Upon Supplier's
                      completion of each Project Milestone, Supplier shall
                      provide to Buyer in writing pursuant to Section 29
                      (Notices) documentation as specified in Exhibit 6 and
                      reasonably satisfactory to Buyer demonstrating such
                      Project Milestone completion within 30 days of such
                      completion but no later than the date specified for each
                      Project Milestone listed in Exhibit 6. Buyer shall
                      acknowledge receipt of the documentation provided under
                      this Section and shall provide Supplier with written
                      acceptance or denial of each Project Milestone within 15
                      days of receipt of the documentation. If any Project
                      Milestone is not completed by 1600 hours on the date
                      specified in Exhibit 6, then the Supplier shall be in
                      Default pursuant to Section 25 (Default and Remedies).

               10.2.2 Progress Towards Completion. Supplier shall notify Buyer
                      promptly (and in any event within ten days) following its
                      becoming aware of information that leads to a reasonable
                      conclusion that a Project Milestone will not be met, and
                      shall convene a meeting with Buyer to discuss the
                      situation not later than 15 days after becoming aware of
                      this information.

         10.3  Commercial Operation Date. Supplier shall notify Buyer at least
               10 days prior to the commencement of any performance tests
               required by the EPC Contract or the IOA. Buyer shall have the
               right to be present at and witness each such test. Supplier shall
               notify Buyer at least 10 days prior to the commencement of the
               performance tests required by Exhibit 7. Buyer shall be deemed to
               waive its right to be present at the performance tests if Buyer
               fails to appear at the scheduled time for the performance tests.
               Within seven days of the successful completion of the performance
               tests pursuant to Exhibit 7, Supplier shall provide Buyer with
               all

                                       23

               completed test summary data sheets and other relevant data
               derived from such tests demonstrating to Buyer's satisfaction
               that such tests have been successfully completed. The date
               specified under Milestone K of Exhibit 6 notwithstanding,
               Supplier may attain Commercial Operation, with energy payment for
               the Supply Amount delivered in accordance with Exhibit 2 A, at
               such earlier time as successful completion of the performance
               tests as above can be achieved.

         10.4  Modification. Without the prior written consent of Buyer, which
               shall not be unreasonably withheld, Supplier shall not be
               entitled to make any modification to the Generating Facility that
               might (i) expose Buyer to any additional liability or increase
               its obligations under the Agreement or (ii) adversely affect
               Supplier's or Buyer's ability to perform its obligations under
               this Agreement or any Law or to any third party. Any such
               modifications shall be conducted in accordance with Good Utility
               Practice and all applicable Laws and reliability criteria, as
               such may be amended from time to time. To the extent additions
               and modifications interfere with the ability of the Generating
               Facility to provide the Supply Amount beyond the limits for
               Planned Outage[s] set forth in Section 12 (Planned Outages),
               Supplier shall pay Replacement Costs to Buyer pursuant to Section
               3.5 (Replacement Costs).

         10.5  Operation and Maintenance. Supplier, at all times shall install,
               operate, maintain and repair the Generating Facility in
               accordance with Good Utility Practice and to ensure (i) Supplier
               is capable of meeting its supply obligations over the Term, (ii)
               the Generating Facility is at all times a Renewable Energy System
               and (iii) Supplier is at all times in compliance with all
               requirements of a renewable energy generator set forth in the
               Renewable Energy Law and any regulations promulgated thereunder.
               Supplier agrees to (i) to maintain adequate records of all
               operations of the Generating Facility, and (ii) to follow such
               regulations, directions and procedures of Buyer, the Control Area
               Operator, the Transmission Provider, WECC, NERC and any
               applicable Governmental Authority to protect and prevent the
               Transmission System from experiencing any negative impacts
               resulting from the operation of Supplier's Generating Facility.
               In the event of an inconsistency, the Buyer shall choose whose
               procedures shall govern. Each Party shall use all reasonable
               efforts to avoid any interference with the other's operations.
               Supplier shall cause the Energy of the Generating Facility to
               meet the Power Quality Standards at all times, and shall operate
               the Generating Facility consistent with WECC, NERC, Buyer,
               Control Area Operator and Transmission Provider requirements.

         10.6  Operation and Maintenance Agreement. No later than 90 days prior
               to the Commercial Operation Date, if the owner of the Generating
               Facility is not the operator, Supplier shall provide an unpriced
               copy of the agreement between Supplier and the operator which
               requires the operator to operate the Generating Facility in
               accordance with the terms hereof which shall be attached to this
               Agreement as Exhibit 15. Supplier shall provide a certified copy
               of a certificate warranting that the operator is a corporation or
               partnership in good standing with the State of Nevada which shall
               be attached to this Agreement.

         10.7  Ground Lease; Rights-of-way. If the land on which the Generating
               Facility is located is not owned by the Supplier, no later than
               60 days prior to

                                       24

               commencement of construction, Supplier shall provide a copy of
               the agreement with the owner of the land which establishes the
               right of the Supplier to construct the Generating Facility on the
               land and the existence of required rights-of-way and easements,
               which shall be attached to this Agreement as Exhibit 16.

         10.8  Right to Review. Buyer and Supplier each shall have the right to
               review during normal business hours the relevant books and
               records of the other Party to confirm the accuracy of such as
               they pertain only to transactions under this Agreement. The
               review shall be consistent with standard business practices and
               shall follow reasonable notice to the other Party. Reasonable
               notice for a review of the previous month's records shall be a
               minimum of seven Business Days. If a review is requested of other
               than the previous month's records, then notice of that request
               shall be provided with a minimum of 14 Business Days notice by
               the requesting Party. The notice shall specify the period to be
               covered by the review. The Party providing records can exercise
               its right under Section 36 (Confidentiality) to protect the
               confidentiality of the records.

11.   EMERGENCY

         11.1  In the event of an Emergency, Buyer and Supplier shall promptly
               comply with any applicable requirements of any Governmental
               Authority, NERC, WECC, Control Area Operator, Transmission
               Provider, transmission operator, or any successor of any of them,
               regarding the reduced or increased generation of the Generating
               Facility.

         11.2  Each Party shall provide prompt oral and written notification to
               the other Party of any Emergency. If requested by the other
               Party, the Party declaring the Emergency shall provide a
               description in reasonable detail of the Emergency and any steps
               employed to cure it.

         11.3  In the event of an Emergency, either Party may take reasonable
               and necessary action to prevent, avoid or mitigate injury,
               danger, damage or loss to its own equipment and facilities, or to
               expedite restoration of service; provided, however, that the
               Party taking such action shall give the other Party prior notice,
               if practicable, before taking any action. This Section shall not
               be construed to supersede Sections 11.1 and 11.2.

         11.4  In the event of an Emergency, Buyer can request Supplier not to
               institute a Planned Outage of the Generating Facility and
               Supplier agrees to take all commercially reasonable steps to
               avoid instituting the Planned Outage until such time as the
               condition of the Emergency has passed. Supplier may present a
               reasonable estimate of costs expected to be incurred as a result
               of the Supplier not instituting the Planned Outage. If Buyer
               agrees to the estimated costs, Supplier shall be required not to
               institute the Planned Outage and Buyer shall reimburse Supplier
               for actual costs incurred, not to exceed the estimated amounts.

         11.5  In the event of an Emergency declared by the Supplier, such that
               the Supplier cannot deliver some or all of the Supply Amount to
               the Delivery Point[s], the Supplier will pay the Buyer's
               Replacement Costs pursuant to Section 3.5

                                       25

               (Replacement Costs) unless the Supplier declares a Force Majeure
               in accordance with Section 21 (Force Majeure).

         11.6  In the event on an Emergency declared by Buyer, as a result of
               which Buyer is unable to receive some or all of the Product at
               the Delivery Point[s] or is unable to deliver some or all of the
               Product to its customers, then Buyer shall have no payment
               liability in respect of such Product for up to one hundred
               sixty-eight (168) consecutive hours. If the Emergency lasts
               longer than one hundred sixty-eight (168) consecutive hours,
               Buyer shall pay the Supplier for up to the Supply Amount for the
               hours that exceed one hundred sixty-eight (168) hours, provided
               that the Buyer has not declared Force Majeure and provided, that
               the Supplier demonstrates to the Buyer that the Generating
               Facility would have been available to deliver Energy up to the
               Supply Amount during the Emergency. The Supplier shall not pay
               the Buyer for Replacement Costs to the extent Buyer is not able
               to receive some or all of the Product at the Delivery Point[s] or
               is unable to deliver some or all of the Product to its customers.

12.   PLANNED OUTAGES

         12.1  Supplier shall request and obtain Buyer's prior written approval
               before conducting any non-forced outage of the Generating
               Facility or reducing the capability of the Generating Facility to
               deliver the Supply Amount (all hereinafter referred to as
               "Planned Outages") so as to minimize the impact on the
               availability of the Generating Facility.

               12.1.1 Within 90 days prior to the Commercial Operation Date and
                      on or before October 1 of each Contract Year, Supplier
                      shall provide Buyer with a schedule of proposed Planned
                      Outages for the upcoming Contract Year. The proposed
                      Planned Outages schedule will designate the days and
                      amount (in MWs) in which the Generating Facility output
                      will be reduced in whole or in part. Each proposed
                      schedule shall include all applicable information,
                      including the following: month, day and time of requested
                      outage, facilities impacted, duration of outage, purpose
                      of outage, and other relevant information. The total
                      combined Planned Outages in any Contract Year shall not
                      exceed 15 days, prorated in the first Contract Year based
                      on the number of days in such year, unless otherwise
                      approved by Buyer.

               12.1.2 Buyer shall promptly review Supplier's proposed schedule
                      and shall either require modifications or approve the
                      proposed schedule within 30 days of Buyer's receipt of
                      such schedule. The Supply Amount will be reduced
                      accordingly in part or total during the period of the
                      Planned Outage. Supplier shall use its best efforts to
                      accomplish all Planned Outage[s] in accordance with the
                      approved schedule. Supplier shall be responsible to Buyer
                      for Replacement Costs if any outage period exceeds its
                      approved schedule, or is not approved by Buyer, provided
                      that changes to the approved schedule may be requested by
                      either Party and each Party shall make reasonable efforts
                      to accommodate such changes, provided further that Buyer
                      shall have no obligation to agree to Supplier's revisions
                      to the approved Planned Outage[s] schedule.

                                       26

               12.1.3 Regardless of any prior approval of a Planned Outage, the
                      Supplier shall not start a Planned Outage on the
                      Generating Facility without notification of the approved
                      Planned Outage to the Buyer's Operating Representative
                      seven days prior to the start of such Planned Outage.

13.   REPORTS; OPERATIONAL LOG

         13.1  Copies of Communications. Supplier shall promptly provide Buyer
               with copies of any orders, decrees, letters or other written
               communications to or from any Governmental Authority asserting or
               indicating that Supplier or its Generating Facility is in
               violation of Laws which relate to Supplier or operation or
               maintenance of the Generating Facility which could have an
               adverse effect on Buyer. Supplier shall keep Buyer apprised of
               the status of any such matters.

         13.2  Notification of Generating Facility Status. Supplier shall notify
               Buyer of the status of the Generating Facility as an EWG, QF or
               such other status no later than 90 days prior to the Operation
               Date. Supplier shall notify Buyer, as soon as practicable, of any
               changes in that status after the Operation Date of this
               Agreement.

         13.3  Notices of Change in Generating Facility. In addition to any
               consent required pursuant to Section 0 (Modification), Supplier
               shall provide notice to Buyer as soon as practicable prior to any
               temporary or permanent change to the performance, operating
               characteristics, or turbine/generators of the Generating
               Facility. Such notice shall describe any changes, expected or
               otherwise, to the total capacity of the Generating Facility, the
               rate of production and delivery of Energy, interconnection and
               transmission issues, and such additional information as may be
               required by Buyer.

         13.4  Operational Data. Supplier shall provide Buyer with the following
               data: hot water in pounds per hour and temperature in degrees
               Fahrenheit at the turbine inlet valve necessary to operate the
               plant at the Supply Amount as shown in a preliminary piping or
               flow diagram provided by Supplier as described in Exhibit 14, the
               Supply Amounts as listed in Exhibit 13, and up to the total
               facility capacity as described in Exhibit 1. Subject to Buyer's
               review and acceptance, Supplier may change this data no later
               than concurrent with completion of item 2(G) in Exhibit 6. This
               information will be used as a baseline and monitoring tool for
               items 2(E) and 2(G) in Exhibit 6.

         13.5  Project Reports and Project Review Meetings.

               13.5.1 Prior to the Commercial Operation Date. Supplier shall
                      provide to Buyer in a quarterly project report, with a
                      monthly update, all pertinent information in connection
                      with Supplier's hot water and steam supply to be used for
                      the Generating Facility including: drilling data, test and
                      well performance information and any reports pertaining to
                      the geothermal reservoir; progress in obtaining Project
                      Milestones; progress in obtaining any approvals or
                      certificates in connection with achieving the Commercial
                      Operation Date; and a discussion of any foreseeable
                      disruptions or delays. The project reports should be

                                       27

                      provided at the latest on the 15th day of every month when
                      such quarterly or monthly update is due. The Parties shall
                      conduct meetings every six months or more frequently if
                      requested by Buyer to review this data and any information
                      related to Supplier's completion of or progress toward the
                      Project Milestone activities listed in Exhibit 6.

                      13.5.1.1 Projected Operation Date; Commercial Operation
                               Date. In addition to any other requirements for
                               Commercial Operation under this Agreement, the
                               Supplier shall provide notice to Buyer of its
                               best estimate of the projected Operation Date and
                               Commercial Operation Date on the PUCN Approval
                               Date and as soon as Supplier becomes aware of any
                               changes in such projected dates, and shall
                               coordinate with Buyer regarding the commencement
                               of operation of the Generating Facility.

               13.5.2 After Commercial Operation Date. After the Commercial
                      Operation Date, Supplier shall provide to Buyer on January
                      1 and July 1 of each calendar year throughout the Term of
                      this Agreement, in both electronic and hard copy format, a
                      report which shall include all pertinent information in
                      connection with Supplier's Generating Facility including:
                      all reporting information maintained in the operational
                      log; data on hot water and steam supply to be used for the
                      Generating Facility including drilling data, test and well
                      performance information and any reports pertaining to the
                      geothermal reservoir. Each February during the Term, the
                      Parties shall meet to conduct an annual review of the
                      Generating Facility and geothermal resource performance.
                      Additional data and meetings may be required as
                      necessitated by Generating Facility performance.

               13.5.3 Operational Log. Supplier shall maintain an operations
                      log, which shall include the aggregate Delivered Amounts
                      for the Contract Year, planned and unplanned maintenance
                      outages, circuit breaker trip operations requiring a
                      manual reset, partial deratings of equipment, and any
                      other significant event or information related to the
                      operation of the Generating Facility. The operations log
                      shall be available for inspection by Buyer upon reasonable
                      advance request, and Supplier shall make the data that
                      supports the log available on a real time basis by remote
                      access to Buyer, if Buyer acquires the necessary equipment
                      and software license to process the data by remote access.

14.   COMMUNICATIONS

         14.1  Supplier's Operating Representative or designated alternate shall
               be available to address and make decisions on all operational
               matters under this Agreement on a 24 hour, seven day per week
               basis. Supplier shall, at its expense, maintain and install a 24
               hour, seven day per week communication link with Buyer's
               Operating Representative at Buyer's operations center and with
               Buyer's schedulers as listed on Exhibit 4, to maintain
               communications between personnel on site at the

                                       28

               Generating Facility, Buyer and the Control Area Operator at all
               times. Supplier shall provide at its expense:

               14.1.1 For the purposes of telemetering, a telecommunications
                      circuit from the Generating Facility to the Buyer's
                      operations center;

               14.1.2 Two dedicated ringdown voice telephone lines for purposes
                      of accessing Buyer's dial-up metering equipment and for
                      communications with Buyer's operations center; and

               14.1.3 Equipment to transmit to and receive telecopies and email
                      from Buyer and the Control Area Operator, including
                      cellular telephones.

15.   SCHEDULING NOTIFICATION

         15.1  Scheduling Notification. Supplier shall provide to Buyer notices
               containing information including Supplier's good faith daily and
               hourly forecast of the Delivered Amount, Generating Facility
               Planned Outages, Derating, other outages and similar changes that
               may affect the Delivered Amount.

               15.1.1 Availability Notice.

                      15.1.1.1 No later than 0500 PPT each day, or as otherwise
                               specified by the Buyer consistent with Good
                               Utility Practice, Supplier shall deliver to
                               Buyer's Operating Representative an Availability
                               Notice in the form set forth in Exhibit 8. The
                               Availability Notice will cover the 42 hours
                               beginning with hour ending 0700 of that day
                               through hour ending 2400 for the following day or
                               such other period specified by Buyer consistent
                               with Good Utility Practice.

                      15.1.1.2 Supplier shall update the Availability Notice and
                               notify the Buyer's Operating Representative as
                               soon as practicable after becoming aware (i) of
                               an expected Derating, or (ii) that Excess Energy
                               is expected.

                      15.1.1.3 The information in the Availability Notice,
                               including the forecasted Delivered Amount and
                               Excess Energy, will be the Supplier's good faith
                               forecast and will indicate any Dispatch Hour for
                               which the Delivered Amount is expected to be less
                               than the Supply Amount or any Dispatch Hour for
                               which Excess Energy is expected.

                      15.1.1.4 In the event of a Derating, Supplier shall
                               provide: (i) the extent, if any, to which the
                               Derating is attributable to a Planned Outage;
                               (ii) the magnitude of the Derating; (iii) the
                               hours during which the Derating is expected to
                               apply; and (iv) the cause of the Derating.

                                       29

16.   COMPLIANCE

         16.1  Each Party shall comply with all relevant Laws and regulations
               and shall, at its sole expense, maintain in full force and effect
               all relevant permits, authorizations, licenses and other
               authorizations material to the maintenance of its facilities and
               the performance of obligations under this Agreement. Each Party
               and its representatives shall comply with all relevant
               requirements of the Control Area Operator, Transmission Provider
               and each Governmental Authority to ensure the safety of its
               employees and the public.

         16.2  Buyer and Supplier shall perform, or cause to be performed, their
               obligations under this Agreement in all material respects in
               accordance with Good Utility Practices and in good faith.

17.   APPROVALS

         17.1  Condition Precedent. Each Party's performance of its respective
               obligations under Sections 3 (Supply Service Obligations), 4
               (Price of Product), 5 (Renewable Energy Credits/Renewable Energy
               Benefits), 7 (Renewable Quotas), 8 (Right of First Offer), 10
               (Facility Construction; Operations and Modifications), 11
               (Emergency), 12 (Planned Outages), 14 (Communications), 15
               (Scheduling Notification) and 28 (Insurance) of this Agreement is
               subject to Buyer obtaining the PUCN approval described in Section
               17.2 (PUCN Approval) in form and substance satisfactory to Buyer
               and without any conditions unsatisfactory to Buyer.

         17.2  PUCN Approval. Within 90 days after the execution date of this
               Agreement, Buyer shall submit this Agreement to the PUCN for:

               17.2.1 A determination that the terms and conditions of this
                      Agreement are just and reasonable; 17.2.2 A determination
                      that the Generating Facility is a Renewable Energy System;

               17.2.3 A determination that the Energy purchased under this
                      Agreement can be used to satisfy Buyer's renewable energy
                      portfolio requirement;

               17.2.4 A determination that this Agreement and its terms and
                      conditions are prudent and that all costs of Energy
                      delivered under this Agreement are recoverable by Buyer in
                      Buyer's tariff;

               17.2.5 A determination that any litigation costs incurred by
                      Buyer in good faith associated with this Agreement shall
                      be considered in a general rate case for a prudence
                      determination and recovery therein;

               17.2.6 A determination that the actions, terms, and conditions
                      are in full compliance with the terms, conditions, and
                      requirements of the Renewable Energy Law and any
                      regulations promulgated thereunder;

               17.2.7 A determination that it was appropriate for Buyer to enter
                      into this Agreement to purchase Renewable Energy and RECs
                      from Supplier rather than to construct and own its own
                      facility; and

                                       30

               17.2.8 Approval of this Agreement and its terms and conditions in
                      their entirety.

         17.3  Failure to Obtain Approval. If PUCN fails to grant approval or
               acceptance of this Agreement (including all items provided in
               Section 17.2 (PUCN Approval)) within 135 days of Buyer's
               submittal of same for approval, then Buyer shall, in its sole
               unreviewable discretion, have the right to terminate this
               Agreement.

         17.4  Cooperation. Each Party agrees to notify the other Party of any
               significant developments in obtaining any approval in connection
               with achieving Commercial Operation of the Generating Facility,
               including PUCN approval. Each Party shall use reasonable efforts
               to obtain such required approvals and shall exercise due
               diligence and shall act in good faith to cooperate with and
               assist each other in acquiring each approval necessary to
               effectuate this Agreement. Further, each Party agrees to
               reasonably support each other in regulatory proceedings to obtain
               the requisite approvals.

18.   SECURITY

         18.1  Security. As a condition of Buyer's execution of and continuing
               compliance with this Agreement, Supplier shall:

               18.1.1 provide to Buyer a letter of credit from a Qualified
                      Financial Institution in form and substance acceptable to
                      Buyer in the amount equal to the product of $4.09 per MWh
                      and the annual total Supply Amount specified in Exhibit 13
                      for the first Contract Year or, if the first Contract Year
                      is not a full calendar year, the second Contract Year.
                      This letter of credit shall be posted as soon as
                      practicable after Supplier's execution of this Agreement,
                      but in any event prior to the submittal of this Agreement
                      to the PUCN pursuant to Paragraph 17.2. No later than 30
                      days prior to the expiry date of any letter of credit,
                      Supplier shall cause the letter of credit to be renewed or
                      replaced with another letter of credit in an equal amount.
                      The Buyer shall have the right to draw on the letter of
                      credit, at the Buyer's sole discretion (i) in the event
                      Supplier fails to make any payments owing under this
                      Agreement or to reimburse the Buyer for costs, including
                      Replacement Costs, REC Replacement Costs and Penalties,
                      that the Buyer has incurred or may incur as a result of
                      the Supplier's failure to perform under this Agreement,
                      (ii) if the letter of credit has not been renewed or
                      replaced at least 30 days prior to the date of its
                      expiration or (iii) if the financial institution that
                      issued the letter of credit has been downgraded to below
                      the Minimum Credit Rating and Supplier has not caused a
                      replacement letter of credit to be issued for the benefit
                      of Buyer within seven days of such downgrade pursuant to
                      Section 18.2 (Maintaining Security) below. The letter of
                      credit shall be released by Buyer to Supplier (i) if this
                      Agreement is terminated because of a failure to obtain
                      PUCN approval, or (ii) no later than 10 days after the
                      later to occur of (x) the end of the first Contract Year
                      that is a full calendar year during which Supplier has
                      complied with each of its obligations under

                                       31

                      this Agreement and (y) 12 months after the Buyer has
                      submitted its annual report to the PUCN for that Contract
                      Year and the Buyer has not suffered a Penalty due to
                      Supplier's performance under this Agreement during that
                      Contract Year; or

               18.1.2 deposit with Buyer as soon as practicable after Supplier's
                      execution of this Agreement, but in any event prior to the
                      submittal of this Agreement to the PUCN pursuant to
                      Paragraph 17.2,cash in the amount equal to the product of
                      $4.09 per MWh and the annual total Supply Amount specified
                      in Exhibit 13 for the first Contract Year or, if the first
                      Contract Year is not a full calendar year, the second
                      Contract Year. The Buyer shall have the right to apply
                      such funds, at the Buyer's sole discretion, in the event
                      Supplier fails to make any payments owing under this
                      Agreement or to reimburse Buyer for costs, including
                      Replacement Costs, REC Replacement Costs and Penalties,
                      that Buyer has incurred or may incur as a result of
                      Supplier's failure to perform under this Agreement. Any
                      unused deposit shall be released by Buyer to Supplier (i)
                      if this Agreement is terminated because of a failure to
                      obtain PUCN approval, or (ii) no later than 10 days after
                      the later to occur of (x) the end of the first Contract
                      Year that is a full calendar year during which Supplier
                      has complied with each of its obligations under this
                      Agreement and (y) 12 months after the Buyer has submitted
                      its annual report to the PUCN for that Contract Year and
                      the Buyer has not suffered a Penalty due to Supplier's
                      performance under this Agreement during that Contract
                      Year.

         18.2  Maintaining Security. If at any time after the Effective Date of
               this Agreement, Standard & Poor's, Moody's or another nationally
               recognized firm downgrades the credit rating to below the Minimum
               Credit Rating of the financial institution that issued the letter
               of credit pursuant to Section 18.1 (Security) above, then
               Supplier shall (i) provide Buyer with written notice of such
               downgrade within two Business Days of Supplier being notified of
               any such downgrade, but not to exceed 30 days from such downgrade
               and (ii) cause a replacement letter of credit satisfying the
               conditions of Section 18.1.1 to be issued in favor of Buyer
               within seven days of such downgrade. In the event such a
               downgrade also constitutes an Event of Default pursuant to
               Section 25 (Default and Remedies), the requirements of this
               Section are in addition to, and not in lieu of, the requirements
               of Section 25 (Default and Remedies).

               18.2.1 Supplier shall take all necessary action and shall be in
                      compliance with Section 18.1 (Security) within 15 days of
                      the downgrade.

         18.3  Supplier hereby waives any and all rights it may have, including
               rights at law or otherwise, to require Buyer to provide financial
               assurances or security (including, but not limited to, cash,
               letters of credit, bonds or other collateral) in respect of its
               obligations under this Agreement. Supplier shall not earn or be
               entitled to any interest on any security provided pursuant to
               this Section 18 (Security), including amounts deposited pursuant
               to Section 18.1.2.

                                       32

19.   INDEMNIFICATION

         19.1  Third Party Claims. A Party to this Agreement (the "Indemnifying
               Party") shall indemnify, defend and hold harmless, on an After
               Tax Basis, the other Party, its parent and affiliates, and each
               of their officers, directors, employees, attorneys, agents and
               successors and assigns (each an "Indemnified Party") from and
               against any and all Losses arising out of, relating to, or
               resulting from the Indemnifying Party's breach of, or the
               performance or non-performance of its obligations under this
               Agreement (including Taxes, and failure to maintain insurance at
               levels required by this Agreement, Penalties, fines, reasonable
               attorneys' fees and costs associated with Renewable Quotas);
               provided, however, that no Party shall be indemnified hereunder
               for any Loss to the extent resulting from its own gross
               negligence, fraud or willful misconduct.

               19.1.1 In furtherance of the foregoing indemnification and not by
                      way of limitation thereof, the Indemnifying Party hereby
                      waives any defense it otherwise might have against the
                      Indemnified Party under applicable workers' compensation
                      laws.

               19.1.2 In claims against any Indemnified Party by an agent of the
                      Indemnifying Party, or anyone directly or indirectly
                      employed by them or anyone for whose acts the Indemnifying
                      Party may be liable, the indemnification obligation under
                      this Section 19 (Indemnification) shall not be limited by
                      a limitation on amount or type of damages, compensation or
                      benefits payable by or for the Indemnifying Party or a
                      subcontractor under workers' or workmen's compensation
                      acts, disability benefit acts or other employee benefit
                      acts.

         19.2  No Negation of Existing Indemnities; Survival. Each Party's
               indemnity obligations under this Agreement shall not be construed
               to negate, abridge or reduce other indemnity or other rights or
               obligations, which would otherwise exist at Law or in equity. The
               obligations contained herein shall survive any termination,
               cancellation, expiration, or suspension of this Agreement to the
               extent that any third party claim is commenced during the
               applicable statute of limitations period.

         19.3  Indemnification Procedures.

               19.3.1 Any Indemnified Party seeking indemnification under this
                      Agreement for any Loss shall give the Indemnifying Party
                      notice of such Loss promptly but in any event on or before
                      30 days after the Indemnified Party's actual knowledge of
                      such claim or action. Such notice shall describe the Loss
                      in reasonable detail, and shall indicate the amount
                      (estimated if necessary) of the Loss that has been, or may
                      be sustained by, the Indemnified Party. To the extent that
                      the Indemnifying Party will have been actually and
                      materially prejudiced as a result of the failure to
                      provide such notice, the Indemnified Party shall bear all
                      responsibility for any additional costs or expenses
                      incurred by the Indemnifying Party as a result of such
                      failure to provide notice.

                                       33

               19.3.2 In any action or proceeding brought against an Indemnified
                      Party by reason of any claim indemnifiable hereunder, the
                      Indemnifying Party may, at its sole option, elect to
                      assume the defense at the Indemnifying Party's expense,
                      and shall have the right to control the defense thereof
                      and to determine the settlement or compromise of any such
                      action or proceeding. Notwithstanding the foregoing, an
                      Indemnified Party shall in all cases be entitled to
                      control its own defense in any action if it:

                      19.3.2.1 May result in injunctions or other equitable
                               remedies with respect to the Indemnified Party
                               which would affect its business or operations in
                               any materially adverse manner;

                      19.3.2.2 May result in material liabilities which may not
                               be fully indemnified hereunder; or

                      19.3.2.3 May have a significant adverse impact on the
                               business or the financial condition of the
                               Indemnified Party (including a material adverse
                               effect on the tax liabilities, earnings, ongoing
                               business relationships or regulation of the
                               Indemnified Party) even if the Indemnifying Party
                               pays all indemnification amounts in full.

                      19.3.3   Subject to Section 19.3.2, neither Party may
                               settle or compromise any claim for which
                               indemnification is sought under this Agreement
                               without the prior written consent of the other
                               Party; provided, however, said consent shall not
                               be unreasonably withheld or delayed.

20.   LIMITATION OF LIABILITY

         20.1  Responsibility for Damages. Except where caused by the other
               Party's negligence or willful misconduct, each Party shall be
               responsible for all physical damage to or destruction of the
               property, equipment and/or facilities owned by it and any
               physical injury or death to natural Persons resulting there from,
               and shall not seek recovery or reimbursement from the other Party
               for such damage.

         20.2  Limitation on Damages. To the fullest extent permitted by Law and
               notwithstanding other provisions of this Agreement, in no event
               shall a Party be liable to the other Party, whether in contract,
               warranty, tort, negligence, strict liability, or otherwise, for
               special, indirect, incidental, multiple, consequential (including
               lost profits or revenues, business interruption damages and lost
               business opportunities), exemplary or punitive damages related
               to, arising out of, or resulting from performance or
               nonperformance of this Agreement. For purposes of clarification,
               Replacement Costs, REC Replacement Costs or payment made by
               either Party to satisfy Penalties or payments owing under
               Sections 3.5 (Replacement Costs), 3.6 (REC Replacement Costs),
               7.1 (Renewable Quotas), 9.5 (Taxes) or 28.6 (Supplier's Minimum
               Insurance Requirements), shall not be considered special,
               indirect, incidental, multiple, punitive, consequential or
               incidental damages under this Section. In addition, this
               limitation on damages shall not apply with respect to claims
               brought by third parties for which a Party is entitled to
               indemnification under this Agreement.

                                       34

         20.3  Survival. The provisions of this Section 20 (Limitation of
               Liability) shall survive any termination, cancellation,
               expiration, or suspension of this Agreement.

21.   FORCE MAJEURE

         21.1  Excuse. Subject to Section 21.4 (Conditions), neither Party shall
               be considered in default under this Agreement for any delay or
               failure in its performance under this Agreement (including any
               obligation to deliver or accept Product) if such delay or failure
               is due to an event of Force Majeure, but only to the extent that:

               21.1.1 such event of Force Majeure is not attributable to fault
                      or negligence on the part of that Party;

               21.1.2 such event of Force Majeure is caused by factors beyond
                      that Party's reasonable control; and

               21.1.3 despite taking all reasonable technical and commercial
                      precautions and measures to prevent, avoid, mitigate or
                      overcome such event and the consequences thereof, the
                      Party affected has been unable to prevent, avoid, mitigate
                      or overcome such event or consequences.

         21.2  Definition. "Force Majeure" means, subject to Section 21.3
               (Exclusions):

               21.2.1 Acts of God such as storms, floods, lightning and
                      earthquakes;

               21.2.2 Sabotage or destruction by a third party of facilities and
                      equipment relating to the performance by the affected
                      Party of its obligations under this Agreement;

               21.2.3 Transmission System or generating equipment failure;

               21.2.4 War, riot, acts of a public enemy or other civil
                      disturbance;

               21.2.5 Strike, walkout, lockout or other significant labor
                      dispute; or

               21.2.6 Action or inaction of a Governmental Authority (including
                      expropriation, requisition or material change in law
                      imposed by a Governmental Authority).

         21.3  Exclusions. None of the following shall constitute an event of
               Force Majeure:

               21.3.1 Economic hardship of either Party;

               21.3.2 Prior to Commercial Operation Date, the non-availability
                      of the resource supply to generate electricity from the
                      Generating Facility, unless caused by an independent
                      identifiable event of Force Majeure;

               21.3.3 After Commercial Operation Date, the non-availability of
                      the resource supply to generate electricity from the
                      Generating Facility;

                                       35

               21.3.4 A Party's failure to obtain any permit, license, consent,
                      agreement or other approval from a Governmental Authority,
                      except to the extent it is caused by an event listed in
                      Sections 21.2.1 and 21.2.5; and

               21.3.5 A Party's failure to meet a Project Milestone, except to
                      the extent it is caused by an event listed in Sections
                      21.2.1 through 21.2.5.

         21.4  Conditions. In addition to the conditions set forth in Section
               21.1 (Excuse) above, a Party may rely on a claim of Force Majeure
               to excuse its performance only to the extent that such Party:

               21.4.1 Provides prompt notice of such Force Majeure event to the
                      other Party, giving an estimate of its expected duration
                      and the probable impact on the performance of its
                      obligations under this Agreement;

               21.4.2 Exercises all reasonable efforts to continue to perform
                      its obligations under this Agreement;

               21.4.3 Expeditiously takes action to correct or cure the event or
                      condition excusing performance so that the suspension of
                      performance is no greater in scope and no longer in
                      duration than is dictated by the problem; provided,
                      however, that settlement of strikes or other labor
                      disputes will be completely within the sole discretion of
                      the Party affected by such strike or labor dispute;

               21.4.4 Exercises all reasonable efforts to mitigate or limit
                      damages to the other Party; and

               21.4.5 Provides prompt notice to the other Party of the cessation
                      of the event or condition giving rise to its excuse from
                      performance.

22.   DISPUTES

         22.1  Dispute or Claim. Any action, claim or dispute which either Party
               may have against the other arising out of or relating to this
               Agreement or the transactions contemplated hereunder, or the
               breach, termination or validity thereof ("Dispute") shall be
               submitted in writing to the other Party. The written submission
               of any Dispute shall include a concise statement of the question
               or issue in dispute together with a statement listing the
               relevant facts and documentation that support the claim.

         22.2  Good Faith Resolution. The Parties agree to cooperate in good
               faith to expedite the resolution of any Dispute. Pending
               resolution of a Dispute, the Parties shall proceed diligently
               with the performance of their obligations under this Agreement.

         22.3  Informal Negotiation. The Parties shall first attempt in good
               faith to resolve any Dispute through informal negotiations by the
               Operating Representatives or Contract Representatives and senior
               management of each Party.

                                       36

         22.4  Arbitration. In the event the Parties are unable to resolve the
               Dispute through informal negotiations as described above, the
               Parties may elect to pursue arbitration pursuant to the rules of
               the American Arbitration Association, or any other method chosen
               by the Parties, subject to the express prior written agreement of
               both Parties. Such written agreement shall include all guidelines
               to be followed by the Parties in such arbitration or dispute
               resolution prior to the commencement of such arbitration. Neither
               Party shall be obligated to pursue arbitration over any other
               method of dispute resolution.

         22.5  Litigation Rights. In the event the Parties are unable to
               satisfactorily resolve the Dispute within 30 days from the
               receipt of notice of the Dispute, subject to any extensions of
               time as may be mutually agreed upon in writing, or any
               arbitration agreement, either Party may initiate litigation in a
               court of law with jurisdiction located in Las Vegas or Reno,
               Nevada, which shall be the exclusive venue to litigate disputes.

         22.6  Recovery Costs. In the event any action is brought at law or in
               equity in court to enforce any provision of this Agreement, or
               for damages by reason of any alleged breach of this Agreement,
               then the prevailing Party will be entitled to recover from the
               other Party all costs of the suit, including, court costs and the
               prevailing Party's reasonable attorney's fees and related costs
               and expenses of litigation.

23.   NATURE OF OBLIGATIONS

         23.1  The provisions of this Agreement shall not be construed to create
               an association, trust, partnership, or joint venture; or impose a
               trust or partnership duty, obligation, or liability or agency
               relationship between the Parties.

         23.2  By this Agreement, neither Party dedicates any part of its
               facilities or the service provided under this Agreement to the
               public.

24.   ASSIGNMENT

         24.1  Buyer may assign this Agreement as follows:

               24.1.1 Buyer may assign this Agreement or assign or delegate its
                      rights and obligations under this Agreement, in whole or
                      in part, without Supplier's consent, if such assignment is
                      made to: (i) Nevada Power Company; (ii) where such
                      assignment does not occur by operation of law, any
                      successor to Buyer provided such successor is a public
                      utility holding a certificate of public convenience and
                      necessity granted by the PUCN pursuant to NRS Chapter 704;
                      (iii) a legally authorized governmental or
                      quasi-governmental agency charged with providing retail
                      electric service in Nevada; or (iv) as otherwise required
                      by Law.

               24.1.2 Buyer also may assign this Agreement, in whole or in part,
                      without Supplier's consent, to a party or Person whose
                      Credit Rating, as published by either Relevant Rating
                      Agency, is equal or superior to the Minimum Credit Rating
                      as of the time of assignment.

                                       37

         24.2  Supplier may, without the consent of Buyer (and without relieving
               itself from liability hereunder), (i) transfer, pledge, encumber,
               or assign this Agreement or the account, revenues or proceeds
               hereof in connection with any financing or other financial
               arrangements for the Generating Facility and (ii) transfer or
               assign this Agreement to an affiliate in connection with a
               transfer of the Generating Facility; provided, that Supplier
               provides Buyer prior notice of any such transfer and, with
               respect to any transfer to an affiliate of Supplier, such
               affiliate enters into an assignment and assumption agreement in
               form and substance satisfactory to Buyer.

         24.3  Except as stated above, neither this Agreement nor any of the
               rights, interests, or obligations hereunder shall be assigned by
               either Party, including by operation of Law, without the prior
               written consent of the other Party, which consent shall not be
               unreasonably withheld. Any assignment of this Agreement in
               violation of the foregoing shall be, at the option of the
               non-assigning Party, void.

         24.4  A Party's assignment or transfer of rights or obligations
               pursuant to Section 24 (Assignment) (other than Section 24.2) of
               this Agreement shall relieve said Party from any liability and
               financial responsibility for the performance thereof arising
               after any such transfer or assignment, provided such transferee
               enters into an assignment and assumption agreement in form and
               substance satisfactory to the other Party.

         24.5  During the Term, Supplier will not sell, transfer or otherwise
               dispose of its ownership interest in the Generating Facility to
               any third party absent an agreement from such third party,
               enforceable by Buyer, to perform Supplier's obligations under and
               otherwise be bound by the terms of this Agreement.

         24.6  Supplier shall procure and deliver to Buyer an undertaking,
               enforceable by Buyer, from each party possessing a security
               interest in the Generating Facility to the effect that, if such
               party forecloses on its security interest, (a) it will assume
               Supplier's obligations under and otherwise be bound by the terms
               of this Agreement, and (b) it will not sell, transfer or
               otherwise dispose of its interest in the Generating Facility to
               any third party absent an agreement from such third party to
               assume Supplier's obligations under and otherwise be bound by the
               terms of this Agreement.

         24.7  This Agreement and all of the provisions hereof are binding upon,
               and inure to the benefit of, the Parties and their respective
               successors and permitted assigns.

25.   DEFAULT AND REMEDIES

         25.1  Except to the extent excused due to an event of Force Majeure in
               accordance with Section 21 (Force Majeure), an event of default
               ("Event of Default") shall be deemed to have occurred with
               respect to a Party (the "Defaulting Party") upon the occurrence
               of one or more of the following events:

               25.1.1  in the case of either the Buyer or the Supplier, failure
                       to make timely payments due under this Agreement;

                                       38

               25.1.2  in the case of the Supplier, its failure to achieve
                       Commercial Operation by the date specified in Exhibit 6;

               25.1.3  in the case of the Supplier, its failure to meet any of
                       the Project Milestone Requirements as set forth in
                       Exhibit 6;

               25.1.4  in the case of the Supplier, its failure to comply with
                       the provisions of Section 18 (Security);

               25.1.5  failure of the Supplier's Generating Facility to deliver
                       at least 50 percent of the total Supply Amount to Buyer
                       during any two consecutive Billing Periods after the
                       Commercial Operation Date;

               25.1.6  in the case of the Supplier, its failure to comply with
                       the provisions of Section 24 (Assignment);

               25.1.7  failure by the Buyer or the Supplier to comply with any
                       other obligations imposed upon it by this Agreement,
                       which failure to comply has a Material Adverse Effect on
                       the other Party or its rights and obligations under this
                       Agreement;

               25.1.8  failure by the Buyer or the Supplier to comply with the
                       material requirements of the Control Area Operator,
                       Transmission Provider, Buyer, WECC, PUCN, FERC, or any
                       successor thereto where following such directions is
                       required hereunder, which failure to comply has a
                       Material Adverse Effect on the other Party or its rights
                       and obligations under this Agreement;

               25.1.9  in the case of the Supplier, its failure at any time to
                       qualify the Generating Facility as a Renewable Energy
                       System or itself as a renewable energy producer or
                       similar status under the Renewable Energy Law or any
                       regulations promulgated thereunder; or

               25.1.10 in the case of the Supplier, its failure to install,
                       operate, maintain or repair the Generating Facility in
                       accordance with Good Utility Practice, which failure has
                       a Material Adverse Effect on the other Party or its
                       rights and obligations under this Agreement.

         25.2  Upon the occurrence of an Event of Default, the Defaulting Party
               shall be entitled to a period of 30 days from such occurrence
               (the "Cure Period") to cure such Event of Default during which
               time the duties and obligations of the Non-Defaulting Party under
               this Agreement are suspended; provided, however, that in the case
               of an Event of Default under Section 25.1.3, with written notice
               from the Defaulting Party to the Non-Defaulting Party such Cure
               Period may be extended for an additional 60 days if (i) Supplier
               can demonstrate to Buyer that such Event of Default was not
               capable of being cured within such 30 day period and such Event
               of Default is capable of being cured within an additional 60 day
               period, (ii) the Defaulting Party is diligently and continuously
               proceeding to cure such Event of Default. In such an event, Buyer
               may demand that Supplier post additional security in a form and
               amount consistent with Sections 18.1.1 and/or 18.1.2.

                                       39

         25.3  If an Event of Default is not cured by the Defaulting Party
               during the Cure Period, the Non-Defaulting Party shall be
               entitled to all legal and equitable remedies that are not
               expressly prohibited by the terms of this Agreement.

26.   REPRESENTATIONS AND WARRANTIES OF SUPPLIER

         The Supplier represents and warrants to the Buyer as follows:

         26.1  Organization. The Supplier is a Limited Liability Corporation
               duly organized, validly existing and in good standing under the
               laws of the State of Delaware and has all requisite power and
               authority to own, lease and/or operate its properties and to
               carry on its business as is now being conducted. The Supplier is
               duly qualified or licensed to do business as a foreign Limited
               Liability Corporation (LLC) and is in good standing in each
               jurisdiction in which the property owned, leased or operated by
               it or the nature of the business conducted by it makes such
               qualification necessary, except where the failure to be so duly
               qualified or licensed and in good standing would not have a
               Material Adverse Effect.

         26.2  Authority Relative to this Agreement. The Supplier has full
               authority to execute, deliver and perform this Agreement and to
               consummate the transactions contemplated herein and has taken all
               necessary corporate actions necessary to authorize the execution,
               deliver and performance of this Agreement. No other proceedings
               or approvals on the part of the Supplier are necessary to
               authorize this Agreement. This Agreement constitutes a legal,
               valid and binding obligation of Supplier enforceable in
               accordance with its terms except as the enforcement thereof may
               be limited by applicable bankruptcy, insolvency or similar laws
               affecting the enforcement of rights generally.

         26.3  Consents and Approvals; No Violation. Other than obtaining the
               Supplier Required Regulatory Approvals as set out in Exhibit 10,
               the execution, delivery and performance of this Agreement by the
               Supplier shall not (i) conflict with or result in any breach of
               any provision of the articles of organization (or other similar
               governing documents) of the Supplier; (ii) require any consent,
               approval, authorization or permit of, or filing with or
               notification to, any Governmental Authority, except where the
               failure to obtain such consent, approval, authorization or
               permit, or to make such filing or notification, could not
               reasonably be expected to have a Material Adverse Effect or (iii)
               result in a default (or give rise to any right of termination,
               cancellation or acceleration) under any of the terms, conditions
               or provisions of any note, bond, mortgage, indenture, agreement,
               lease or other instrument or obligation to which the Supplier or
               any of its subsidiaries is a party or by which any of their
               respective assets may be bound, except for such defaults (or
               rights of termination, cancellation or acceleration) as to which
               requisite waivers or consents have been obtained.

         26.4  Regulation as a Utility. Except as set forth in Exhibit 10, the
               Supplier is not subject to regulation as a public utility or
               public service company (or similar designation) by the United
               States, any State of the United States, any foreign country or
               any municipality or any political subdivision of the foregoing.

                                       40

         26.5  Availability of Funds. The Supplier has, or will have, and shall
               maintain sufficient funds available to it to perform all
               obligations under this Agreement and to consummate the
               obligations contemplated pursuant thereto.

         26.6  Interconnection Cost Due Diligence. Supplier has conducted due
               diligence regarding the costs of all facilities necessary to
               interconnect the Generating Facility to the Delivery Point[s] and
               all such costs are covered by the Product Rates depicted in
               Exhibit 2A.

         26.7  Permits, Authorizations, Leases, Grants, etc. Supplier has
               applied or will apply for or has received the permits,
               authorizations, leases, grants as listed in Exhibits 10 and 11,
               and that no other permits, authorizations, licenses, grants, etc.
               are required by Supplier to construct and operate the Generating
               Facility or fulfill its obligations under this Agreement.

         26.8  Related Agreements. Supplier has entered into or will enter into
               all necessary and material agreements as listed in Exhibit 12
               related to Supplier's obligations under this Agreement.

         26.9  Certification. The Generating Facility qualifies as a Renewable
               Energy System and Supplier has been and is in compliance with all
               requirements set forth in the Renewable Energy Law and any
               regulations promulgated thereunder.

         26.10 Title. Supplier owns all Product attributable to the Generating
               Facility and has the right to sell such Product to Buyer.
               Supplier will convey good title to the Product to the Buyer free
               and clear of any liens or other encumbrances or title defects,
               including any which would affect Buyer's ownership of any portion
               of such Product or prevent the subsequent transfer of any portion
               of such Product by Buyer to a third party.

27.   REPRESENTATIONS AND WARRANTIES OF BUYER

         The Buyer represents and warrants to the Supplier as follows:

         27.1  Organization; Qualification. The Buyer is a corporation duly
               organized, validly existing and in good standing under the laws
               of the State of Nevada and has all requisite corporate power and
               authority to own, lease, and operate its properties and to carry
               on its business as is now being conducted. The Buyer is duly
               qualified or licensed to do business as a corporation and is in
               good standing in each jurisdiction in which the property owned,
               leased or operated by it or the nature of the business conducted
               by it makes such qualification necessary, except where the
               failure to be so duly qualified or licensed and in good standing
               would not have a Material Adverse Effect.

         27.2  Authority Relative to this Agreement. Buyer has full corporate
               authority to execute and deliver this Agreement to which it is a
               party and to consummate the transactions contemplated herein. The
               execution and delivery of this Agreement has been duly and
               validly authorized by the Buyer and no other corporate
               proceedings on the part of the Buyer are necessary to authorize
               this Agreement. This Agreement constitutes a legal, valid and
               binding obligation of Buyer

                                       41

               enforceable in accordance with its terms except as the
               enforcement thereof may be limited by applicable bankruptcy,
               insolvency or similar laws affecting the enforcement of rights
               generally.

         27.3  Consents and Approvals; No Violation. Other than obtaining the
               Buyer Required Regulatory Approvals as set out in Exhibit 9, the
               execution, delivery and performance of this Agreement by the
               Buyer shall not (i) conflict with or result in any breach of any
               provision of the articles of organization (or other similar
               governing documents) of the Buyer; (ii) require any consent,
               approval, authorization or permit of, or filing with or
               notification to, any Governmental Authority, except (a) where the
               failure to obtain such consent, approval, authorization or
               permit, or to make such filing or notification, could not
               reasonably be expected to have a Material Adverse Effect or (b)
               for those consents, authorizations, approvals, permits, filings
               and notices which become applicable to the Buyer as a result of
               specific regulatory status of the Buyer (or any of its
               affiliates) or as a result of any other facts that specifically
               relate to the business or activities in which the Buyer (or any
               of its affiliates) is or proposes to be engaged, which consents,
               approvals, authorizations, permits, filings and notices have been
               obtained or made by Buyer; or (iii) result in a default (or give
               rise to any right of termination, cancellation or acceleration)
               under any of the terms, conditions or provisions of any note,
               bond, mortgage, indenture, agreement, lease or other instrument
               or obligation to which the Buyer or any of its subsidiaries is a
               party or by which any of their respective assets may be bound,
               except for such defaults (or rights of termination, cancellation
               or acceleration) as to which requisite waivers or consents have
               been obtained.

         27.4  Related Agreements. Buyer warrants that it has entered into or
               will enter into all necessary and material agreements related to
               Buyer's obligations under this Agreement.

28.   INSURANCE

         28.1  General Requirements. Supplier shall maintain at all times, at
               its own expense, general/commercial liability, worker's
               compensation, and other forms of insurance relating to its
               property, operations and facilities in the manner and amounts set
               forth herein from the Effective Date of this Agreement. Supplier
               shall maintain coverage on all policies written on a "claims
               made" or "occurrence" basis. If converted to an occurrence form
               policy, the new policy shall be endorsed to provide coverage back
               to a retroactive date acceptable to Buyer.

         28.2  Qualified Insurers. Every contract of insurance providing the
               coverage required herein shall be with an insurer or eligible
               surplus lines insurer qualified to do business in the State of
               Nevada and with the equivalent, on a continuous basis, of a "Best
               Rating" of "A-" or better and shall include provisions or
               endorsements:

               28.2.1  Stating that such insurance is primary insurance with
                       respect to the interest of the Buyer and that any
                       insurance maintained by Buyer is excess and not
                       contributory insurance required hereunder;

                                       42

               28.2.2  Stating that no reduction, cancellation or expiration of
                       the policy shall be effective until 30 days from the date
                       notice thereof is actually received by Buyer; provided,
                       that upon Buyer's receipt of any notice of reduction,
                       cancellation or expiration, that Party shall immediately
                       provide notice thereof to the other Party; and

               28.2.3  Naming the Buyer as an additional insured on the general
                       liability insurance policies of Supplier as its interests
                       may appear with respect to this Agreement.

         28.3  Certificates of Insurance. Within 30 days of the Effective Date,
               Supplier shall provide to Buyer, and shall continue to provide to
               Buyer within 30 days of each anniversary of the Effective Date
               until the expiration of this Agreement, upon any change in
               coverage, or at the request of Buyer not to exceed once each
               year, properly executed and current certificates of insurance
               with respect to all insurance policies required to be maintained
               by Supplier under this Agreement. Certificates of insurance shall
               provide the following information:

               28.3.1  The name of insurance company, policy number and
                       expiration date;

               28.3.2  The coverage required and the limits on each, including
                       the amount of deductibles or self-insured retentions,
                       which shall be for the account of Supplier maintaining
                       such policy; and

               28.3.3  A statement indicating that the Buyer shall receive at
                       least 30 days prior notice of cancellation or expiration
                       of a policy or of a reduction of liability limits with
                       respect to a policy.

         28.4  Certified Copies of Insurance Policies. At Buyer's request, in
               addition to the foregoing certifications, Supplier shall deliver
               to Buyer a copy of each insurance policy, certified as a true
               copy by an authorized representative of the issuing insurance
               company.

         28.5  Inspection of Insurance Policies. Buyer shall have the right to
               inspect the original policies of insurance applicable to this
               Agreement at the Supplier's place of business during regular
               business hours.

         28.6  Supplier's Minimum Insurance Requirements.

               28.6.1  Worker's Compensation. Worker's compensation insurance in
                       accordance with statutory requirements including
                       employer's liability insurance with limits of not less
                       than $1,000,000 per occurrence and endorsement providing
                       insurance for obligations under the U.S. Longshoremen's
                       and Harbor Worker's Compensation Act and the Jones Act
                       where applicable.

               28.6.2  General Liability. General liability insurance including
                       bodily injury, property damage, products/completed
                       operations, contractual and personal injury liability
                       with a combined single limit of at least $2,000,000 per
                       occurrence and at least $2,000,000 annual aggregate.

                                       43

               28.6.3  Automobile Liability. Automobile liability insurance
                       including owned, non-owned and hired automobiles with
                       combined bodily injury and property damage limits of at
                       least $1,000,000 per occurrence and at least $1,000,000
                       aggregate.

               28.6.4  Failure to Comply. If Supplier fails to comply with the
                       provisions of this Section 28 (Insurance), Supplier shall
                       save harmless and indemnify Buyer from any direct or
                       indirect loss and liability, including attorneys' fees
                       and other costs of litigation, resulting from the injury
                       or death of any person or damage to any property if Buyer
                       would have been protected had Supplier complied with the
                       requirements of this Section 28 (Insurance), in
                       accordance with Section 19 (Indemnification).

29.   NOTICES

         29.1  All notices hereunder shall, unless expressly specified
               otherwise, be in writing and shall be addressed, except as
               otherwise stated herein, to the Parties' Contract Representatives
               as set forth in Exhibit 4 or as modified from time to time by the
               receiving Party by notice to the other Party. Any changes to
               Exhibit 4 shall not constitute an amendment to this Agreement.

         29.2  All notices or submittals required by this Agreement shall be
               sent either by hand-delivery, regular first class U.S. mail,
               registered or certified U.S. mail postage paid return receipt
               requested, overnight courier delivery, electronic mail or
               facsimile transmission. Such notices or submittals will be
               effective upon receipt by the addressee, except that notices or
               submittals transmitted by electronic mail or facsimile
               transmission shall be deemed to have been validly and effectively
               given on the day (if a Business Day and, if not, on the next
               following Business Day) on which it is transmitted if transmitted
               before 4:00 p.m. PPT, and if transmitted after that time, on the
               following Business Day; provided, however, that if any notice or
               submittal is tendered to an addressee and the delivery thereof is
               refused by such addressee, such notice shall be effective upon
               such tender.

         29.3  All oral notifications required under this Agreement shall be
               made to the receiving Party's Operating Representative and shall
               promptly be followed by notice as provided in the other
               provisions of this Section 29 (Notices).

         29.4  Notices of Force Majeure or an Event of Default pursuant to
               Section 21 (Force Majeure) or pursuant to Section 25 (Default and
               Remedies), respectively and notices of a change to Exhibit 4
               shall be sent either by hand delivery, registered or certified
               U.S. mail (postage paid return receipt requested), or overnight
               courier delivery. Such notices will be effective upon receipt by
               the addressee; provided, however, that if any notice is tendered
               to an addressee and the delivery thereof is refused by such
               addressee, such notice shall be effective upon such tender.

         29.5  Any payments required to be made under this Agreement shall be
               made pursuant to the instructions in Exhibit 4 as such
               instructions may be changed by any Party from time to time by
               notice.

                                       44

30.   MERGER

         30.1  This Agreement contains the entire agreement and understanding
               between the Parties with respect to all of the subject matter
               contained herein, thereby merging and superseding all prior
               agreements and representations by the Parties with respect to
               such subject matter.

31.   COUNTERPARTS AND INTERPRETATION

         31.1  This Agreement may be executed in two counterparts, both of which
               shall be deemed an original.

         31.2  In the event an ambiguity or question of intent or interpretation
               arises, this Agreement shall be construed as if drafted jointly
               by the Parties and no presumption or burden of proof shall arise
               favoring or disfavoring any Party by virtue of authorship of any
               of the provisions of this Agreement.

         31.3  Any reference to any Federal, state, local, or foreign statute or
               law shall be deemed also to refer to all rules and regulations
               promulgated thereunder, unless the context requires otherwise.

         31.4  The words "include", "includes" and "including" in this Agreement
               shall not be limiting and shall be deemed in all instances to be
               followed by the phrase "without limitation".

         31.5  References to Articles and Sections herein are cross-references
               to Articles and Sections, respectively, in this Agreement, unless
               otherwise stated.

         31.6  The headings or section titles contained in this Agreement are
               inserted solely for convenience and do not constitute a part of
               this Agreement between the Parties, nor should they be used to
               aid in any manner in the construction of this Agreement.

         31.7  Discontinued or Modified Index. If Dow Jones discontinues
               publishing or substantially modifies any index utilized herein,
               then the index used herein will be modified to the most
               appropriate available index, with appropriate changes to take
               into account any changes in the location of measurement.

32.   SEVERABILITY

         32.1  If any term, provision or condition of this Agreement is held to
               be invalid, void or unenforceable by a Governmental Authority and
               such holding is subject to no further appeal or judicial review,
               then such invalid, void, or unenforceable term, provision or
               condition shall be deemed severed from this Agreement and all
               remaining terms, provisions and conditions of this Agreement
               shall continue in full force and effect.

         32.2  The Parties shall endeavor in good faith to replace such invalid,
               void, or unenforceable provisions with valid and enforceable
               provisions which achieve the purpose intended by the Parties to
               the greatest extent permitted by law.

                                       45

33.   WAIVERS; REMEDIES CUMULATIVE

         33.1  No failure or delay on the part of a Party in exercising any of
               its rights under this Agreement or in insisting upon strict
               performance of provisions of this Agreement, no partial exercise
               by either Party of any of its rights under this Agreement, and no
               course of dealing between the Parties shall constitute a waiver
               of the rights of either Party under this Agreement. Any waiver
               shall be effective only by a written instrument signed by the
               Party granting such waiver, and such shall not operate as a
               waiver of, or estoppel with respect to, any subsequent failure to
               comply therewith. The remedies provided in this Agreement are
               cumulative and not exclusive of any remedies provided by law.

34.   AMENDMENTS

         34.1  Amendments to this Agreement shall be mutually agreed upon by the
               Parties, produced in writing and shall be executed by an
               authorized representative of each Party.

         34.2  The Buyer may submit amendment(s) to the PUCN and FERC, as
               applicable, for filing, acceptance or approval.

35.   TIME IS OF THE ESSENCE

         35.1  Time is of the essence to this Agreement and in the performance
               of all of the covenants, obligations and conditions hereof.

36.   CONFIDENTIALITY

         36.1  Confidential Information. "Confidential Information" means
               information provided by one Party (the "Disclosing Party") to the
               other (the "Receiving Party") in connection with the negotiation
               or performance of this Agreement that is clearly labeled or
               designated by the Disclosing Party as "confidential" or
               "proprietary" or with words of like meaning or, if disclosed
               orally, clearly identified as confidential with that status
               confirmed promptly thereafter in writing, excluding, however,
               information excluded as provided in Section 36.3 (Excluded
               Information).

         36.2  Treatment of Confidential Information. The Receiving Party shall
               treat any Confidential Information with at least the same degree
               of care regarding its secrecy and confidentiality as the
               Receiving Party's similar information is treated within the
               Receiving Party's organization. The Receiving Party shall keep
               confidential and not disclose the Confidential Information of the
               Disclosing Party to third parties (except as stated hereinafter)
               nor use it for any purpose other than the performance under this
               Agreement, without the express prior written consent of the
               Disclosing Party. The Receiving Party further agrees that it
               shall restrict disclosure of Confidential Information as follows:

               36.2.1  Disclosure shall be restricted solely to (i) its agents
                       as may be necessary to enforce the terms of this
                       Agreement, (ii) its Affiliates, shareholders,

                                       46

                       directors, officers, employees, advisors, lenders and
                       representatives as necessary, (iii) any Governmental
                       Authority in connection with seeking any required
                       regulatory approval, (iv) to the extent required by
                       applicable Law, (v) in the case of Buyer only, potential
                       transferees of Energy or RECs obtained by Buyer and (vi)
                       potential assignees of this Agreement (together with
                       their agents, advisors and representatives), as may be
                       necessary in connection with any such assignment (which
                       assignment or transfer shall be in compliance with
                       Section 24 (Assignment)) in each case after advising
                       those agents of their obligations under this Section.

               36.2.2  In the event that the Receiving Party is required by
                       applicable Law to disclose any Confidential Information,
                       the Receiving Party shall provide the Disclosing Party
                       with prompt notice of such request or requirement in
                       order to enable Disclosing Party to seek an appropriate
                       protective order or other remedy and to consult with
                       Disclosing Party with respect to Disclosing Party taking
                       steps to resist or narrow the scope of such request or
                       legal process. The Receiving Party agrees not to oppose
                       any action by the Disclosing Party to obtain a protective
                       order or other appropriate remedy. In the absence of such
                       protective order, and provided that the Receiving Party
                       is advised by its counsel that it is compelled to
                       disclose the Confidential Information, the Receiving
                       Party shall:

                       36.2.2.1  Furnish only that portion of the Confidential
                                 Information which the Receiving Party is
                                 advised by counsel is legally required; and

                       36.2.2.2  Use its commercially reasonable efforts, at the
                                 expense of the Disclosing Party, to ensure that
                                 all Confidential Information so disclosed will
                                 be accorded confidential treatment.

                       This Section 36.2.2 shall not apply to information
                       disclosed as contemplated by 36.2.1 (iii).

         36.3  Excluded Information. Confidential Information shall be deemed
               not to include the following:

               36.3.1  Information which is or becomes generally available to
                       the public other than as a result of a disclosure by the
                       Receiving Party;

               36.3.2  Information which was available to the Receiving Party on
                       a non-confidential basis prior to its disclosure by the
                       Disclosing Party; and

               36.3.3  Information which becomes available to the Receiving
                       Party on a non-confidential basis from a person other
                       than the Disclosing Party or its representative who is
                       not otherwise bound by a confidentiality agreement with
                       Disclosing Party or its agent or is otherwise not under

                                       47

                       any obligation to Disclosing Party or its agent not to
                       disclose the information to the Receiving Party.

         36.4  Injunctive Relief Due to Breach. The Parties agree that remedies
               at Law may be inadequate to protect each other in the event of a
               breach of this Section, and the Receiving Party hereby in advance
               agrees that the Disclosing Party shall be entitled to seek
               without proof of actual damages, temporary, preliminary and
               permanent injunctive relief from any Governmental Authority of
               competent jurisdiction restraining the Receiving Party from
               committing or continuing any breach of this Section.

         36.5  Public Statements. The Parties shall consult with each other
               prior to issuing any public announcement, statement or other
               disclosure with respect to this Agreement or the transactions
               contemplated hereby and the Supplier shall not issue any such
               public announcement, statement or other disclosure without having
               first received the written consent of the Buyer, except as may be
               required by Law. It shall not be deemed a violation of this
               Section to file this Agreement with the PUCN or FERC for approval
               as required by applicable Law.

37.   CHOICE OF LAW

               This Agreement and the rights and obligations of the Parties
               shall be construed and governed by the Laws of the State of
               Nevada.

38.   FURTHER ASSURANCES

         38.1  The Parties hereto agree to execute and deliver promptly, at the
               expense of the Party requesting such action, any and all other
               and further instruments, documents and information which a Party,
               may request and which are reasonably necessary or appropriate to
               give full force and effect to the terms and intent of this
               Agreement.

39.   NO THIRD PARTY BENEFICIARY

         39.1  Except with respect to the rights of the Indemnified Party in
               Section 19.1 (Third Party Claims), (i) nothing in this Agreement
               nor any action taken hereunder shall be construed to create any
               duty, liability or standard of care to any third party, (ii) no
               third party shall have any rights or interest, direct or
               indirect, in this Agreement or the services to be provided
               hereunder, and (iii) this Agreement is intended solely for the
               benefit of the Parties, and the Parties expressly disclaim any
               intent to create any rights in any third party as a third-party
               beneficiary to this Agreement or the services to be provided
               hereunder.

40.   CONFLICTS

         40.1  The Parties acknowledge that the Supplier has or will enter into
               an IOA with the Transmission Provider. If the Buyer is also the
               Transmission Provider and conflicts arise between any term,
               provision, or condition contained in this Agreement and the IOA,
               Supplier shall comply with the most stringent requirement. If
               such conflict cannot be resolved by the Supplier meeting the more

                                       48

               stringent requirement, the Parties agree to work in good faith to
               resolve the conflict. If the Buyer is not the Transmission
               Provider, the Parties shall perform their obligations under this
               Agreement as provided herein.

                                       49

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
by their duly authorized representative on the date first stated above.

BUYER:                                       SUPPLIER:

SIERRA PACIFIC POWER COMPANY                 ORNI 7

                                             by: ORMAT FUNDING CORP.
                                                  its Sole Member

By:   /s/ M. W. Yackira                      By:   /s/ Ran Raviv
     -----------------------------                ----------------------------
      Name: M. W. Yackira                          Name: Ran Raviv
      Title: EVP and CFO                           Title: Vice President

                                       50

                                    EXHIBIT 1

                  DESCRIPTION OF SUPPLIER'S GENERATING FACILITY

1.   Name of Facility: Galena Geothermal No. 1

     (a) Location:     Steamboat Springs, Washoe County Nevada

2.   Owner:            ORNI 7 LLC

3.   Operator:         Ormat Nevada, Inc.

4.   Equipment:

     (a)    Type of Facility:    Geothermal

     (b)    Capacity

            Total nominal nameplate capacity:  26.0 MW

            Total nominal net capacity:  20.5 MW

5.   Planned Operation Date: October 1, 2005

                                      1-1

                                   EXHIBIT 2A

                                  PRODUCT RATES

The Product Rate for the Term shall be $52.00 per MWh for the first full year of
operation, escalating at 1% per year thereafter.

The Product Rate through the end of the first Contract Year shall be $52.00 per
MWh ("Initial Product Rate"). The Product Rate shall be increased at the
beginning of each Contract Year by an amount equal to one percent of the Product
Rate for the previous Contract Year, for the duration of the Agreement;
provided, however, that the Product Rate for the second Contract Year shall be
determined by the following formula:

         Product Rate = Initial Product Rate * [1 + (0.01 * FCM/12)]

Where FCM is the number of full calendar months the Generating Facility is in
Commercial Operation during the first Contract Year.

                                      2A-1

                                   EXHIBIT 2B

                              EXCESS PRODUCT RATES

The Excess Product Rate for the Term shall be $ 29.79 per MWh.

                                      2B-1

                                    EXHIBIT 3

                             STANDBY SERVICE TARIFF

Sierra Pacific Power Company Schedule LSR, Large Standby Service Rider, dated
December 17, 2003 or any successor rate schedule or as may be amended from time
to time by the PUCN.

                                      3-1

                                    EXHIBIT 4

                    NOTICES, BILLING AND PAYMENT INSTRUCTIONS

SUPPLIER:

Operating Representative:                     Contract Representative:
------------------------                      -----------------------
              Darren Daters                               Paul Zavesov
Address:      1010 Power Plant Drive          Address:    980 Greg Street
              Steamboat, NV 89511                         Sparks, NV 89431-6039

Phone:        775/852-1444 Ext 19             Phone:      775/356-9029
Fax:          775/852-1807                    Fax:        775/356-9039
Email:        ddaters@ormat.com               Email:      pzavesov@ormat.com

Payment Check:                                Union Bank of California
                                              Corporate Trust Department
                                     Address: 475 Sansome Street, 12th Floor
                                              San Francisco, CA 94111-3142

Payment Wire Transfer:                        Union Bank of California
                                              Acct Name: ORMAT FDG./Revenue A/C
                                        For:  ABA: 122000496
                                Account No.:  6711724301

Invoices:
                                              ORNI 7, LLC
Address:                                      980 Greg Street
                                              Sparks, NV 89431-6039
                                              Attn: Paul Zavesov, Asset Manager
                                      Phone:  775/356-9029
                                        Fax:  775/356-9039
                                      Email:  pzavesov@ormat.com

Operating Notifications:
                                                     Darren Daters
        i)    Pre-Schedule                    Phone: 775/852-1444 Ext 19
                                              Fax:   775/852-1807
                                              Email: ddaters@ormat.com
                                                     Darren Daters
        ii)   Real Time                       Phone: 775/852-1444 Ext 19
                                              Fax:   775/852-1807
                                              Email: ddaters@ormat.com
                                                     Paul Zavesov
        iii)  Monthly Checkout Person:        Phone: 775/356-902
                                              Fax:   775/356-9039
                                              Email: pzavesov@ormat.com

                                      4-1

BUYER:

a) Operating Representative:           Contract Representative:
   ------------------------            -----------------------
         Address: Schedulers               Address:  Gary Craythorn
                  North- Brad Marcy                  Manager, Resource Contracts
                                                     Nevada Power Company
                                           Mailing   P.O. Box 98910, M/S 26A
                                                     Las Vegas, Nevada 89151
                                           Physical  6226 West Sahara Avenue
                                                       89146
                                                     Las Vegas, Nevada 89151
         Phone:   775/834-5886             Phone:    702/367-5883
         Fax:     775/834-3841             Fax:      702/579-0019
         E-mail:  bmarcy@sppc.com          E-mail:   gcraythorn@nevp.com

b) Invoices
   --------
         US Post Office:                         Overnight Delivery
         --------------                          ------------------
            (Via Certified Mail)
         Address:   Nevada Power Company        Address: Nevada Power Company
                    Attn: Kathy Crews                    Attn: Kathy Crews
                    P.O. Box 98910, M/S 20               6226 West Sahara Ave.,
                    Las Vegas, Nevada 89151                 M/S 20
         Telephone: 702/579-1561                         Las Vegas, Nevada 89146
         Fax:       702/579-1599
         E-mail:    kcrews@nevp.com

c) Scheduling
   ----------
        i) Pre-Schedule   Primary Name:   John Hughes   Phone:  775/834-3843
                                                        E-mail: jhughes@sppc.com
                          Alternate Name: Tyson Taylor  Phone:  775/834-3018
                                          Sherri Cross
                                                        E-mail: ttaylor@sppc.com
                                                                slemon@sppc.com
                                                        Fax:    775/834-3841
       ii) Real Time:                                   Phone:  775/834-3018
                                                        Fax:    775/834-3841
      iii) Monthly Checkout:              Kathy Crews   Phone:  702/579-1561
                                                        Fax:    702/579-1599
                                                        E-mail: kcrews@nevp.com

d) Control Area/Transmission
   -------------------------
        i) Reliability Dispatch:          Phone:  775/834-3909
                                          Fax:    775/834-3940
       ii) Transmission Dispatch:         Phone:  775/834-4541
                                          Fax:    775/834-3940

                                      4-2

                                    EXHIBIT 5

                     ONE-LINE DIAGRAM OF GENERATING FACILITY

                                       AND

                           INTERCONNECTION FACILITIES

Exhibit 5 shall contain a one-line diagram of the Generating Facility, the
Interconnection Facilities, the Delivery Point[s], ownership and the location of
Meters, which location shall be reasonably satisfactory to Buyer. Within 30 days
after it executes the IOA, Supplier shall provide an update to Exhibit 5.

                                      5-1

                                    EXHIBIT 6

                           PROJECT MILESTONE SCHEDULE

1.  All time periods are in months after the PUCN Approval Date. As stated
    below for convenience of drafting after PUCN approval will be shown as
    "AA". Any other timing is as otherwise described in specific items
    below. Buyer will update this Exhibit with actual dates after PUCN
    approval is received.

2.  All milestones may be completed earlier than stated times, at the sole
    option of Supplier.

    A)   Project Milestone: Supplier shall provide a geophysical or geological
         exploration plan on the geothermal resource, or in the case of an
         existing operating resource, a professional resource report, which
         defines the geothermal resource. Such plan shall specify start and
         completion dates of the geophysical or geological exploration work, or
         a summary of the work performed to date.

         Completion Date: Two months AA

         Documentation: Supplier shall provide Buyer with documentation from a
         qualified professional of the actual resource exploration work
         completed and the associated data.

    B)   Project Milestone: Supplier shall obtain all permits, licenses,
         easements and approvals to construct and operate the Generating
         Facility.

         Completion Date: Seven months AA for permits and approvals to
         construct, Sixteen months total (including seven months as above for
         permits to construct) AA for permits and approvals to commence
         operation

         Documentation: Supplier shall provide Buyer with written documentation
         and decisions from the appropriate agencies indicating hearings during
         which approvals were granted and final written decisions from those
         agencies where the approval was made.

    C)   Project Milestone: Supplier shall demonstrate to Buyer that it has
         complete financing for construction of the Generating Facility.

         Completion Date: Eight months AA

         Documentation: Supplier shall provide Buyer with written documentation
         demonstrating that Supplier has secured construction financing of the
         Generating Facility.

    D)   Project Milestone: Notice to Proceed has been issued to the
         construction contractor under the turnkey engineering, procurement and
         construction

                                       6-1

         contract (the "EPC Contract") for the Generating Facility and
         construction of the Generating Facility has commenced.

         Completion Date: Eleven months AA

         Documentation: Supplier shall provide Buyer a copy of the executed
         Notice to Proceed acknowledged by the construction contractor and
         documentation from qualified professionals which indicates that
         physical work has begun on-site regarding the construction of the
         Generating Facility.

    E)   Project Milestone: Supplier shall complete the drilling and testing of
         the initial production well(s), which shall deliver hot water at not
         less than an average of 500,000 pounds per hour and a temperature of
         not less than 300 degrees Fahrenheit for a test period of 48 continuous
         hours or until stabilization occurs. Stabilization shall be considered
         met when the flow rate and temperature at the end of any 8-hour
         continuous period shall not be less than 98% of the first hour of the
         8-hour period. Supplier shall provide Buyer pursuant to Section 29
         (Notices) of this Agreement with written notification 48 hours prior to
         conducting such drilling and testing, but shall provide such notice
         with as much advance notice as practicable. In the case of an existing
         operating resource, a report on the well field which provides for the
         verification of the existence of the equivalent source of geothermal
         fluid shall be provided.

         Completion Date: Three months AA

         Documentation: Supplier shall provide Buyer with the data from the well
         test, which well test is performed by qualified professionals, which
         indicates delivery of hot water of the quantity and quality as
         indicated. An authorized representative of Buyer shall have the right
         to be present during and witness such test. In the case of an existing
         operating resource, the report as above shall satisfy the documentation
         requirement.

    F)   Project Milestone: Supplier's major equipment shall be delivered to
         Generating Facility's construction site.

         Completion Date: Two months after Notice to Proceed has been issued to
         the construction contractor under the EPC Contract, defined in
         Milestone D above (or thirteen (13) months after AA).

         Documentation: Supplier shall provide Buyer with documentation that the
         major equipment has been delivered to the Generating Facility's
         construction site.

    G)   Project Milestone: Supplier shall complete the drilling of the all the
         production and injection wells, which shall deliver a combined rate of
         hot water at not less than 500,000 pounds per hour per well and an
         average temperature of not less than 300 degrees Fahrenheit, and shall
         be capable of

                                       6-2

         injecting fluids produced by the production wells. Supplier shall
         provide Buyer pursuant to Section 29 (Notices) of this Agreement with
         written notification 48 hours prior to conducting any such drilling and
         testing, but shall provide such notice with as much advance notice as
         practicable. In the case of an existing operating resource, a report on
         the well field which provides for the verification of the existence of
         the equivalent source of geothermal fluid shall be provided.

         Completion Date: Eight months after Notice to Proceed has been issued
         to the construction contractor under the EPC Contract.

         Documentation: Supplier shall provide Buyer with the data from the well
         tests, which well tests are performed by qualified professionals, which
         indicate delivery of hot water of the quantity and quality as indicated
         and the capability of injection of all production fluids from the
         production wells. An authorized representative of Buyer shall have the
         right to be present during and witness such drilling and testing. In
         the case of an existing operating resource, the report as above shall
         satisfy the documentation requirement.

    H)   Project Milestone: Supplier shall qualify as an EWG, QF or such similar
         status under applicable Law.

         Completion Date: No later than 30 calendar days prior to the Planned
         Operation Date.

         Documentation: Supplier shall provide Buyer with documentation that it
         has filed for and obtained EWG, QF or such similar status under
         applicable Law and shall remain an EWG, QF or such similar status for
         the entire Term of this Agreement.

    I)   Project Milestone: The Generating Facility achieves the Operation Date.

         Completion Date: Seventeen months AA

         Documentation: Buyer's Meters shall record Energy being delivered from
         the Generating Facility to Buyer and the Generating Facility provides
         written notice to Buyer that the Generating Facility satisfies the
         definition of Operation Date in the Agreement.

    J)   Project Milestone: Supplier shall have installed 2 turbines with a
         total installed capacity nameplate rating stated in Exhibit 1.

         Completion Date: Seventeen months AA

         Documentation: Supplier provides written notice to Buyer that the
         Generating Facility is comprised of a total of 2 or more turbine
         generators, all of which are fully installed and operational at the
         Generating Facility site, and further satisfies the definition of the
         Generating Facility in the Agreement.

                                       6-3

    K)   Project Milestone: The Generating Facility achieves the Commercial
         Operation Date.

         Completion Date: Eighteen months AA

         Documentation: Supplier provides written notice to Buyer that the
         Generating Facility satisfies the definition of the Commercial
         Operation Date in the Agreement.

                                      6-4

                                    EXHIBIT 7

                                PERFORMANCE TESTS

1.       MECHANICAL COMPLETION TESTS
The following preliminary tests shall be conducted at the Site during the start
up process:
         a.   Radiographic and hydrostatic examination of main brine line
              welding.
         b.   Functional test of main controls and alarms, i.e. control and
              protective devices, fire detection and alarm system.
         c.   Setting and testing of safety valves.
         d.   Balancing and vibration tests of main rotating equipment,
              including turbines and generators and motors larger then 100 HP.
         e.   Automatic operation of standby equipment. f. Operation of fire
              fighting equipment.
         g.   Generator short circuit and open circuit characteristic checks. h.
              Generator and power cable megger insulation tests. i. Setting of
              protective relays.
         j.   Electrical ground and/or insulation tests of equipment. k. Check
              out of instrument loops.

2.       TESTS REQUIRED FOR FINAL ACCEPTANCE
Generating Unit Test
         a.   Each Generating Unit shall run at stable condition at 100% (+10%
              to -30%) of the unit rated power, conditional upon adequate heat
              source supply, for four (4) hours without any failure or
              malfunction.
         b.   The Generating Unit shall be tripped manually with the unit
              remaining in safe condition without any damage, and capable of
              immediate restart.
         c.   After the Generating Unit comes to a standstill and after
              resetting the same, it shall be started again according to the
              normal hot start procedure as described in O&M manuals, and resume
              normal operation conditions.

Net Deliverable Energy Test (Performance Test)
         After completion of the Mechanical Completion Tests and the Generating
         Unit Tests, the Facility will be tested as close as possible to the
         Design Conditions, for a period of ninety six (96) hours at full rated
         load to verify the Facility's Net Deliverable Energy.

Instrumentation Uncertainty
                  Kilowatt meters                    +/- 1.5% (of full scale)
                  Kilowatt-hour meters               +/- 1.5% (of full scale)
                  Ambient Air temperature meters     +/- 1 (Degree)F
                  Heat Source flow rate meters       +/- 2% (of full scale)
                  Heat Source temperature meters     +/- 1 (Degree)F
                  Heat Source Pressure meters        +/- 0.5 % (of full scale)

                                      7-1

                                    EXHIBIT 8

                           FORM OF AVAILABILITY NOTICE

 Date of Notice:

 Time of Notice:

 Supplier:

 Name of Supplier's Representative:

 Buyer:

 Availability Date:

Contact Information:

                                      8-1

                      A            B               C             D             E

--------------------------------------------------------------------------------------------------------------------
                            Availability        Total
                             From Plant        Derating     Permitted    Plant Total    Cause and Time of Derating
                               (MWhs)           (MWhs)      Derating        (MWhs)
--------------------------------------------------------------------------------------------------------------------
                             (A<or =___)      (___ - A)      Yes/No         (A-B)
--------------------------------------------------------------------------------------------------------------------

                  0700
--------------------------------------------------------------------------------------------------------------------
                  0800
--------------------------------------------------------------------------------------------------------------------
                  0900
--------------------------------------------------------------------------------------------------------------------
                  1000
--------------------------------------------------------------------------------------------------------------------
                  1100
--------------------------------------------------------------------------------------------------------------------
                  1200
--------------------------------------------------------------------------------------------------------------------
                  1300
--------------------------------------------------------------------------------------------------------------------
                  1400
--------------------------------------------------------------------------------------------------------------------
                  1500
--------------------------------------------------------------------------------------------------------------------
                  1600
--------------------------------------------------------------------------------------------------------------------
                  1700
--------------------------------------------------------------------------------------------------------------------
                  1800
--------------------------------------------------------------------------------------------------------------------
                  1900
--------------------------------------------------------------------------------------------------------------------
                  2000
--------------------------------------------------------------------------------------------------------------------
                  2100
--------------------------------------------------------------------------------------------------------------------
                  2200
--------------------------------------------------------------------------------------------------------------------
                  2300
--------------------------------------------------------------------------------------------------------------------
                  2400
--------------------------------------------------------------------------------------------------------------------
                  0100
--------------------------------------------------------------------------------------------------------------------
                  0200
--------------------------------------------------------------------------------------------------------------------
                  0300
--------------------------------------------------------------------------------------------------------------------
                  0400
--------------------------------------------------------------------------------------------------------------------
                  0500
--------------------------------------------------------------------------------------------------------------------
                  0600
--------------------------------------------------------------------------------------------------------------------
                  0700
--------------------------------------------------------------------------------------------------------------------
                  0800
--------------------------------------------------------------------------------------------------------------------
                  0900
--------------------------------------------------------------------------------------------------------------------
                  1000
--------------------------------------------------------------------------------------------------------------------
                  1100
--------------------------------------------------------------------------------------------------------------------
                  1200
--------------------------------------------------------------------------------------------------------------------
                  1300
--------------------------------------------------------------------------------------------------------------------
                  1400
--------------------------------------------------------------------------------------------------------------------
                  1500
--------------------------------------------------------------------------------------------------------------------
                  1600
--------------------------------------------------------------------------------------------------------------------
                  1700
--------------------------------------------------------------------------------------------------------------------
                  1800
--------------------------------------------------------------------------------------------------------------------
                  1900
--------------------------------------------------------------------------------------------------------------------
                  2000
--------------------------------------------------------------------------------------------------------------------
                  2100
--------------------------------------------------------------------------------------------------------------------
                  2200
--------------------------------------------------------------------------------------------------------------------
                  2300
--------------------------------------------------------------------------------------------------------------------
                  2400
--------------------------------------------------------------------------------------------------------------------

                                      8-2

                                    EXHIBIT 9

                      BUYER'S REQUIRED REGULATORY APPROVALS

1.    Public Utilities Commission of Nevada for the Agreement

2.

                                      9-1

                                   EXHIBIT 10

                    SUPPLIER'S REQUIRED REGULATORY APPROVALS

As no project opposition is expected, timing estimates are made without
consideration of extended public hearings or debates.

-----------------------------------------------------------------------------------------------------------------------------------
                                                                                ESTIMATED   ESTIMATED START  ESTIMATED COMPLETION
             PERMIT                                AGENCY                       DURATION         DATE               DATE
            --------                              --------                      ---------   ---------------  --------------------

PERMITS PRIOR TO CONSTRUCTION
Conditional Use Grading Permit        City of Reno Planning Commission         120 days            15-Apr-04            15-June-04
Chemical Accident Prevention Program  State of NV                              150 days            15-Mar-04             27-Aug-04
                                                               Initial Review  30 days             22-Mar-04             30-Apr-04
                                                              Public Comments  30 days              3-May-04             11-Jun-04
AIR Quality Permit to Construct       Washoe County                            60 days             15-May-04             15-Jul-04
Disturbance Permit                    NV Division of Forestry, State of NV     60 days             30-Apr-04             30-Jun-04
                                                            Biological Survey  20 days             23-Feb-04             10-Mar-04
                                                              Cultural Survey  20 days             15-Mar-04             30-Apr-04

Must be completed prior to beginning next phase of permitting. Estimated
completion date October 1, 2004.
-----------------------------------------------------------------------------------------------------------------------------------
PERMITS FOR DRILLING
Drilling Permit                       Nevada Division of Mineral               45 days             30-May-04              1-Jul-04
Drilling AIR Quality Permit           Washoe County                            30 days             30-May-04             30-Jul-04
Disturbance Permit                    NV Division of Forestry, State of NV     60 days             30-Apr-04             30-Jun-04
                                                            Biological Survey  20 days             30-Apr-04             30-May-04
                                                              Cultural Survey  20 days             10-May-04             30-May-04

May be completed prior to construction. Estimated completion date August 1,
2004.
-----------------------------------------------------------------------------------------------------------------------------------
PERMITS FOR CONSTRUCTION
Building Permit                       Washoe County                            30 days              1-Oct-04              1-Nov-04
Dust Plan                             Washoe County                            20 days              1-Oct-04             20-Oct-04
Chemical Accident Prevention Program,
construction schedule                 State of NV                              5  day               1-Sep-04              5-Sep-04

Must be completed prior to construction. Estimated completion date November 1,
2004.
-----------------------------------------------------------------------------------------------------------------------------------
PERMITS FOR OPERATION
Hazardous Materials Permit            City of Reno                             10 days              1-Jun-05              1-Jul-05
Pressure Vessel Permits               State of Nevada                          10 days              1-Jun-05              1-Jul-05
Underground Injection Permit
(Modification)                        State of Nevada                         180 days             15-Jun-04             15-Jan-05
AIR Quality Permit to Operate         Washoe County                            30 days              1-Jun-05              1-Jul-05
Chemical Accident Prevention Program,
Permit to Operate                     State of NV                              30 days              1-Jun-05              1-Jul-05
QF Certification                      Federal Energy Regulatory Commission     30 days              1-Jun-05              1-Jul-05

Must be completed prior to operation.
-----------------------------------------------------------------------------------------------------------------------------------

                                      10-1

                                   EXHIBIT 11

           SUPPLIER'S REQUIRED PERMITS FOR CONSTRUCTION AND OPERATION

                               SAME AS EXHIBIT 10

                                      11-1

                                   EXHIBIT 12

                         SUPPLIER'S REQUIRED AGREEMENTS

1.   Interconnection Agreement

2.

                                      12-1

                                   EXHIBIT 13

                                  SUPPLY AMOUNT

The Supply Amount(s) shall be the Energy amounts for each Dispatch Hour that
shall be supplied by Supplier to Buyer as specified by each value in the
attached table below.

                                                YEARS 1, 4, 7, 10, 13, 16, 19
   -------------------------------------------------------------------------------------------------------------------------
   HOUR OF
   THE DAY       JAN      FEB      MAR       APR      MAY      JUN     JUL       AUG       SEP      OCT      NOV       DEC
   -------       ---      ---      ---       ---      ---      ---     ---       ---       ---      ---      ---       ---

         1       23.19    24.12    21.80     21.50    21.74    16.64   15.50     15.50     19.01    19.70    21.72     23.06
         2       23.24    24.03    22.23     21.71    22.05    17.52   16.36     16.36     19.38    20.16    21.81     22.78
         3       23.23    24.52    22.34     22.16    22.36    18.35   16.77     16.77     19.99    20.45    21.97     23.02
         4       23.44    24.48    22.49     22.37    22.35    18.25   17.18     17.18     20.20    20.67    22.04     23.23
         5       23.69    24.61    22.57     22.82    22.40    18.99   17.61     17.61     20.73    21.07    22.05     23.37
         6       23.72    24.58    22.90     22.69    22.60    19.53   17.96     17.96     20.55    21.44    22.14     23.38
         7       23.94    24.73    22.71     23.07    22.63    19.50   17.66     17.66     21.29    21.71    22.28     23.40
         8       24.10    24.76    22.91     22.82    22.15    18.23   17.55     17.55     21.54    22.06    22.32     23.36
         9       23.75    24.26    22.49     21.82    21.69    17.56   16.63     16.63     20.35    21.62    21.46     23.33
        10       23.30    23.59    22.21     21.28    20.73    16.44   15.81     15.81     18.94    20.14    21.42     23.02
        11       23.16    23.26    21.63     20.02    19.69    15.54   14.69     14.69     18.40    20.18    21.08     22.40
        12       22.50    22.81    21.15     19.19    18.87    13.87   13.22     13.22     17.54    18.98    20.59     22.13
        13       21.99    22.00    20.73     18.68    18.35    13.85   11.97     11.97     16.46    18.29    20.38     21.93
        14       21.45    21.68    20.30     18.08    17.57    13.43   11.19     11.19     15.76    17.33    19.80     21.93
        15       20.89    21.46    20.12     18.20    16.90    12.79   10.91     10.91     15.07    16.73    19.65     21.83
        16       20.61    21.58    20.18     18.01    16.84    12.91   10.90     10.90     14.49    16.24    19.68     22.09
        17       20.35    20.94    19.93     18.34    16.90    12.97   10.67     10.67     14.21    15.82    19.97     22.29
        18       21.39    21.46    19.59     18.79    16.89    13.39   11.04     11.04     13.91    15.33    20.87     22.53
        19       21.43    22.20    20.68     19.50    16.62    13.20   12.42     12.42     13.86    16.26    21.33     22.65
        20       21.85    22.83    21.22     19.99    16.36    13.44   13.74     13.74     14.79    17.24    21.75     22.74
        21       22.04    23.29    21.81     20.23    18.01    14.52   14.82     14.82     15.79    17.92    21.97     22.82
        22       21.95    23.51    22.14     20.35    18.73    16.08   14.98     14.98     16.37    19.12    22.25     22.82
        23       22.16    23.51    22.55     20.47    19.40    16.79   15.38     15.38     17.62    19.80    22.42     22.87
        24       22.69    23.53    22.74     20.68    19.97    17.39   15.46     15.46     18.42    19.48    22.38     22.97
     DAILY
     TOTAL      540.08   557.75   519.43    492.75   471.80   381.17  350.42    350.42    424.65   457.75   513.31    545.94
   MONTHLY
     TOTAL     16742.4  15616.9  16102.5   14782.4  14625.7  11435.1 10863.0   10863.0   12739.4  14190.1  15399.3   16924.3
    ANNUAL
     TOTAL   170284.06
    ANNUAL
     GROSS   215916.48
    ANNUAL
   STATION
   SERVICE
     TOTAL    45632.42

NOTE: SUPPLY AMOUNTS LISTED FOR YEAR 1 ARE FOR THE FIRST CONTRACT YEAR THAT IS A
FULL CALENDAR YEAR; AND SUCH AMOUNTS WILL ALSO BE APPLICABLE TO ANY INITIAL
CONTRACT YEAR STARTING ON THE COMMERCIAL OPERATION DATE THAT IS NOT A FULL
CALENDAR YEAR.

                                      13-1

                                   EXHIBIT 13

                                  SUPPLY AMOUNT

The Supply Amount(s) shall be the Energy amounts for each Dispatch Hour that
shall be supplied by Supplier to Buyer as specified by each value in the
attached table below.

                                                YEARS 2, 5, 8, 11, 14, 17, 20
   -------------------------------------------------------------------------------------------------------------------------
   HOUR OF
   THE DAY       JAN      FEB      MAR       APR      MAY      JUN     JUL       AUG       SEP      OCT      NOV       DEC
   -------       ---      ---      ---       ---      ---      ---     ---       ---       ---      ---      ---       ---

         1       22.84    23.75    21.46     21.16    21.40    16.37   15.24     15.24     18.70    19.39    21.38     22.69
         2       22.88    23.66    21.89     21.38    21.70    17.24   16.09     16.09     19.08    19.84    21.46     22.43
         3       22.87    24.15    21.99     21.81    22.01    18.05   16.50     16.50     19.68    20.13    21.63     22.66
         4       23.07    24.10    22.14     22.02    22.00    17.95   16.90     16.90     19.88    20.34    21.69     22.86
         5       23.33    24.23    22.22     22.46    22.05    18.69   17.33     17.33     20.40    20.73    21.71     23.01
         6       23.35    24.20    22.55     22.34    22.24    19.22   17.67     17.67     20.22    21.11    21.79     23.01
         7       23.57    24.35    22.36     22.71    22.28    19.19   17.38     17.38     20.95    21.37    21.93     23.04
         8       23.73    24.38    22.56     22.46    21.80    17.94   17.27     17.27     21.20    21.72    21.97     23.00
         9       23.38    23.89    22.14     21.48    21.35    17.28   16.36     16.36     20.02    21.28    21.12     22.96
        10       22.94    23.22    21.87     20.94    20.40    16.17   15.55     15.55     18.64    19.82    21.08     22.66
        11       22.80    22.90    21.29     19.71    19.38    15.28   14.45     14.45     18.11    19.86    20.75     22.05
        12       22.15    22.46    20.82     18.88    18.57    13.64   12.99     12.99     17.26    18.68    20.26     21.78
        13       21.65    21.66    20.40     18.38    18.05    13.62   11.76     11.76     16.19    17.99    20.06     21.58
        14       21.12    21.34    19.98     17.79    17.29    13.20   10.99     10.99     15.50    17.05    19.48     21.59
        15       20.57    21.12    19.80     17.90    16.63    12.57   10.72     10.72     14.82    16.46    19.34     21.49
        16       20.29    21.25    19.86     17.72    16.57    12.69   10.71     10.71     14.25    15.97    19.36     21.74
        17       20.03    20.61    19.62     18.05    16.63    12.75   10.48     10.48     13.97    15.56    19.65     21.94
        18       21.06    21.12    19.28     18.49    16.62    13.16   10.85     10.85     13.67    15.07    20.54     22.17
        19       21.10    21.86    20.36     19.19    16.35    12.98   12.21     12.21     13.63    16.00    20.99     22.29
        20       21.51    22.48    20.89     19.67    16.09    13.21   13.51     13.51     14.54    16.96    21.40     22.38
        21       21.70    22.93    21.47     19.91    17.72    14.28   14.58     14.58     15.53    17.63    21.62     22.46
        22       21.61    23.14    21.79     20.03    18.43    15.82   14.74     14.74     16.11    18.82    21.90     22.46
        23       21.82    23.14    22.20     20.14    19.09    16.52   15.13     15.13     17.33    19.48    22.07     22.51
        24       22.33    23.17    22.39     20.35    19.66    17.11   15.20     15.20     18.12    19.17    22.03     22.61
     Daily
     Total      531.70   549.12   511.33    485.00   464.32   374.94  344.60    344.60    417.79   450.43   505.21    537.38
   Monthly
     Total     16482.8  15375.4  15851.1   14549.9  14394.1  11248.2 10682.6   10682.6   12533.7  13963.2  15156.3   16658.8
    Annual
     Total   167578.69
    Annual
     Gross
     Total   212486.13
    Annual
   Station
   Service
     Total    44907.43

                                      13-2

                                   EXHIBIT 13

                                  SUPPLY AMOUNT

The Supply Amount(s) shall be the Energy amounts for each Dispatch Hour that
shall be supplied by Supplier to Buyer as specified by each value in the
attached table below.

                                                  YEARS 3, 6, 9, 12, 15, 18
   -------------------------------------------------------------------------------------------------------------------------
   HOUR OF
   THE DAY       JAN      FEB      MAR       APR      MAY      JUN     JUL       AUG       SEP      OCT      NOV       DEC
   -------       ---      ---      ---       ---      ---      ---     ---       ---       ---      ---      ---       ---

         1       22.48    23.38    21.12     20.82    21.06    16.10   14.99     14.99     18.40    19.07    21.04     22.33
         2       22.52    23.29    21.54     21.04    21.36    16.96   15.83     15.83     18.77    19.52    21.12     22.07
         3       22.51    23.77    21.65     21.47    21.66    17.76   16.23     16.23     19.36    19.80    21.28     22.30
         4       22.71    23.72    21.79     21.67    21.65    17.66   16.62     16.62     19.56    20.02    21.35     22.50
         5       22.96    23.85    21.87     22.11    21.70    18.39   17.04     17.04     20.07    20.40    21.36     22.64
         6       22.98    23.82    22.19     21.99    21.89    18.91   17.38     17.38     19.90    20.77    21.44     22.65
         7       23.21    23.97    22.01     22.35    21.93    18.89   17.09     17.09     20.61    21.03    21.58     22.67
         8       23.36    24.00    22.20     22.11    21.46    17.65   16.98     16.98     20.87    21.37    21.62     22.63
         9       23.02    23.51    21.79     21.14    21.01    16.99   16.09     16.09     19.70    20.94    20.78     22.60
        10       22.58    22.86    21.52     20.61    20.08    15.91   15.29     15.29     18.33    19.50    20.74     22.30
        11       22.44    22.54    20.95     19.39    19.07    15.03   14.20     14.20     17.81    19.54    20.41     21.70
        12       21.80    22.11    20.49     18.58    18.27    13.40   12.77     12.77     16.97    18.37    19.94     21.43
        13       21.31    21.32    20.08     18.08    17.76    13.39   11.55     11.55     15.92    17.70    19.73     21.24
        14       20.79    21.00    19.66     17.50    17.00    12.98   10.80     10.80     15.24    16.77    19.17     21.24
        15       20.24    20.79    19.48     17.61    16.36    12.35   10.53     10.53     14.57    16.19    19.03     21.15
        16       19.97    20.91    19.54     17.43    16.29    12.47   10.52     10.52     14.01    15.71    19.05     21.39
        17       19.72    20.29    19.30     17.76    16.36    12.53   10.29     10.29     13.73    15.30    19.33     21.59
        18       20.72    20.79    18.97     18.19    16.35    12.94   10.66     10.66     13.44    14.82    20.21     21.82
        19       20.77    21.51    20.03     18.88    16.08    12.75   11.99     11.99     13.39    15.73    20.65     21.94
        20       21.17    22.12    20.55     19.36    15.83    12.99   13.27     13.27     14.30    16.68    21.06     22.03
        21       21.36    22.57    21.13     19.59    17.43    14.04   14.33     14.33     15.27    17.34    21.28     22.10
        22       21.27    22.78    21.45     19.71    18.13    15.55   14.49     14.49     15.84    18.51    21.55     22.10
        23       21.47    22.78    21.85     19.82    18.78    16.25   14.87     14.87     17.05    19.17    21.71     22.15
        24       21.98    22.80    22.03     20.03    19.34    16.83   14.95     14.95     17.83    18.86    21.68     22.25
     Daily
     Total      500.85   540.50   503.22    477.25   456.85   368.71  338.78    338.78    410.94   443.11   497.11    528.82
   Monthly
     Total     15526.4  15133.9  15599.7   14317.4  14162.4  11061.3 10502.2   10502.2   12328.1  13736.3  14913.3   16393.4
    Annual
     Total   164176.53
    Annual
     Gross
     Total   208172.25
    Annual
   Station
   Service
     Total    43995.73

                                      13-3

                                   EXHIBIT 14

                  PIPING / FLOW DIAGRAM OF GENERATING FACILITY

Supplier shall provide Exhibit 14 as contemplated by Section 10.1 (Construction
of Generating Facility) of this Agreement within 30 days following the
commencement of construction of the Generating Facility.

                                      14-1

                                   EXHIBIT 15

                      OPERATION AND MAINTENANCE AGREEMENT;
                       OPERATOR GOOD STANDING CERTIFICATE

     Supplier to provide within 10 days after execution of this Agreement.

                                      15-1

                                   EXHIBIT 16

                           GROUND LEASE; RIGHTS-OF-WAY

                                      16-1

                                   EXHIBIT 17

                            FORM OF LETTER OF CREDIT

                          DATE OF ISSUANCE:

BENEFICIARY:

Sierra Pacific Power Company
PO Box 98910, M/S 26A
Las Vegas, Nevada 89151-0001

         Re:  Irrevocable Transferable Standby Letter of Credit No. ____________

Dear Madam or Sir:

         We ("Issuing Bank") hereby establish our Irrevocable Transferable
Standby Letter of Credit ("Letter of Credit") in favor of Sierra Pacific Power
Company, a Nevada corporation ("Beneficiary") for the account of [Supplier], a
[___________] ("Account Party"), for the aggregate amount not exceeding
______________________ United States Dollars ($___________), available to you at
sight upon demand at our counters at [Location] on or before the expiration
hereof against presentation to us of (a) a sight draft in the form of Exhibit A,
completed in accordance with the instructions contained in such Exhibit A and
executed by your officer, and (b) a certificate in the form of Exhibit B,
completed in accordance with the instructions contained in such Exhibit B and
executed by your officer.

         This Letter of Credit shall become effective immediately upon issuance
and shall expire at our counters in [Location] on ______________ (the
"Expiration Date"). This Letter of Credit is subject to the following:

     1.   Capitalized terms used herein and not otherwise defined have the
          meanings given in that certain Power Purchase Agreement, dated as of
          ________, between Beneficiary and Account Party (as the same may be
          amended, the "Agreement").

     2.   The amount which may be drawn by you under this Letter of Credit shall
          be automatically reduced by the amount of any drawings paid through
          the Issuing Bank referencing this Letter of Credit No. ____. Partial
          drawings are permitted hereunder.

     3.   We hereby agree with you that documents drawn under and in compliance
          with the terms of this Letter of Credit shall be duly honored upon
          presentation as specified.

     4.   This Letter of Credit is subject to (i) the Uniform Customs and
          Practice for Documentary Credits, 1993 Revision, International Chamber
          of Commerce Publication No.500 (the "UCP"), except to the extent that
          the terms hereof are inconsistent with the provisions of the UCP,
          including but not limited to Articles 13(b) and 17 of the UCP, in
          which case the terms of this Letter of Credit shall govern, and (ii)
          to the extent not inconsistent with the UCP, the laws of the State of
          New York.

     5.   With respect to Article 13(b) of the UCP, a demand for payment under
          this Letter of Credit may be made only on a day, and during hours, in
          which the Issuing Bank is open for business (a "Business Day"). If we
          receive your demand for payment at such office at or prior to 12:00
          P.M. Pacific Standard Time on any Business Day in strict conformity
          with the terms and conditions of

          this Letter of Credit, we will honor the same by making payment in
          accordance with your payment instructions on that same Business Day.
          If we receive your demand for payment at such office after 12:00 P.M.
          Pacific Standard Time on any Business Day in strict conformity with
          the terms and conditions of this Letter of Credit, we will honor the
          same by making payment in accordance with your payment instructions on
          the next Business Day.

     6.   With respect to Article 17 of the UCP, in the event of an Act of God,
          riot, civil commotion, insurrection, war or any other cause beyond our
          control that interrupts our business (collectively, an "Interruption
          Event") and causes the place for presentation of this Letter of Credit
          to be closed for business on the last day for presentation, the expiry
          date of this Letter of Credit will be automatically extended without
          amendment to a date 30 calendar days after the place for presentation
          reopens for business.

     7.   This Letter of Credit may not be transferred without our consent and
          may not be amended, changed or modified without the express written
          consent of the Beneficiary, the Issuing Bank and the Account Party.

     8.   Communications with respect to this Letter of Credit shall be in
          writing and shall be addressed to us at the address of the Issuing
          Bank, and shall specifically refer to this Letter of Credit No. _____.

     9.   This Letter of Credit sets forth in full the terms of our undertaking.
          Reference in this Letter of Credit to other documents is for
          identification purposes only and such reference shall not modify or
          affect the terms hereof or cause such documents to be deemed
          incorporated herein.

[ISSUING BANK SIGNATURE]

                                                                       Exhibit A
                                                             to Letter of Credit
                                                                       No. *****
                                   SIGHT DRAFT

[Insert date on or prior to Expiration Date]
[Issuing Bank],
as Issuing Bank
[Issuing Bank Address]

Attn:  Letter of Credit Dept.

         Re:   Irrevocable Transferable Standby Letter of Credit No. *****

At Sight

Pay to Sierra Pacific Power Company in immediately available funds _____________
_______ Dollars ($__________________), pursuant to Irrevocable Transferable
Standby Letter of Credit No. ***** of [Issuing Bank].

[BENEFICIARY]

By:
      Name:
      Title:

                                                                       Exhibit B
                                                             to Letter of Credit
                                                                       No. *****

         [The certificate is to be on the letterhead of the Beneficiary]

[Date]
[Issuing Bank]
as Issuing Bank
[Issuing Bank Address]
Attn:  Letter of Credit Dept.

Re:  Irrevocable Transferable Standby Letter of Credit No. *****

Gentlemen:

This is a certificate presented in accordance with your Irrevocable Transferable
Standby Letter of Credit No. held by us (the "Letter of Credit").

{Use one of the following conditions}

We hereby certify that Account Party has failed to make a payment to Beneficiary
owing under the Agreement, or to reimburse Beneficiary for costs, including
Replacement Costs, REC Replacement Costs and Penalties, that the Beneficiary has
incurred or may incur as a result of the Account Party's failure to perform
under the Agreement.

     OR

We hereby certify that the Letter of Credit has not been renewed or replaced at
least 30 days prior to its Expiration Date.

     OR

We hereby certify that the credit rating of [Issuing Bank] has been downgraded
to below the Minimum Credit Rating and a replacement letter of credit has not
been issued in favor of Buyer within seven days of such downgrade.

IN WITNESS WHEREOF, this certificate has been executed and delivered by a duly
authorized officer of the undersigned on the date first above written.

[BENEFICIARY]

By:
      Name:
      Title:AMENDMENT TO THE

                               LONG TERM AGREEMENT

                                       FOR

                        PURCHASE AND SALE OF ELECTRICITY

                      BETWEEN SIERRA PACIFIC POWER COMPANY

                                       AND

                        NEVADA GEOTHERMAL POWER PARTNERS

                      AMENDMENT TO THE LONG TERM AGREEMENT

                      FOR PURCHASE AND SALE OF ELECTRICITY

                      FOR NEVADA GEOTHERMAL POWER PARTNERS

                                TABLE OF CONTENTS

SECTION   NAME                                                              PAGE
-------   ----                                                              ----
   1.     Recitals.......................................................      1
   2.     Amendment Term.................................................      2
   3.     Brady Contract Termination.....................................      2
   4.     Rate...........................................................      2
   5.     Guarantees.....................................................      3
   6.     Sale of Capacity and Energy....................................      4
   7.     Continuity of Deliveries and Economic Dispatch.................      5
   8.     Project Schedule...............................................      6
   9.     Insurance......................................................      6
   10.    Exhibits.......................................................      7
   11.    Status of Amendment............................................      7
   12.    Multiple Originals.............................................      8

Attachment #1 - Amendment No. 1 to Exhibit B
Attachment #2 - Amendment No. 1 to Exhibit D
Attachment #3 - Amendment No. 1 to Exhibit E
Attachment #4 - Amendment No. 1 to Exhibit O

                      AMENDMENT TO THE LONG TERM AGREEMENT
                      FOR PURCHASE AND SALE OF ELECTRICITY
                      FOR NEVADA GEOTHERMAL POWER PARTNERS

     This Amendment is entered into as of the date of execution by and among
Brady Power Partners, a Nevada general partnership ("Seller") the general
partners of which are ESI BH Limited Partnership, a Delaware limited
partnership, with ESI Brady, Inc., a Florida corporation, a wholly-owned
subsidiary of ESI Energy, Inc., a Florida corporation, as its sole general
partner, and Nevada Geothermal Power Partners Limited Partnership, a Nevada
limited partnership ("NGPP"), with Hot Springs Power Company, a Nevada
corporation, as its managing general partner and Sierra Pacific Power Company, a
Nevada corporation ("Sierra"). Seller and Sierra are sometimes referred to
collectively as "Parties".

1. Recitals. This Amendment is based upon the following facts:

     a. Sierra and Brady Hot Springs Geothermal Associates ("Brady") entered
into a Long-Term Agreement for the Purchase and Sale of Electricity dated
October 10, 1986 ("Brady Contract").

     b. A Settlement Agreement between Sierra and Brady was entered into on
October 19, 1990 as a result of an action filed by Brady on August 11, 1988 in
the Second Judicial District Court of the State of Nevada, in and for the County
of Washoe, captioned, "Brady Hot Springs Geothermal Associates v. Sierra Pacific
Power Company," Case No. CV88-4652.

     c. Sierra and NGPP entered into a separate Long-Term Agreement for the
Purchase and Sale of Electricity dated October 5, 1990 ("Agreement").

                                     Page 1                               7/3/91

     d. NGPP has requested an extension of time to perform milestones and meet
project schedule requirements to allow for a reasonable schedule for development
of the Project.

     e. NGPP has assigned its rights, duties, and obligations under the
Agreement to Seller and Sierra has consented to that assignment.

     f. Seller and Sierra have agreed to combine the Agreement and the Brady
Contract into one single contract by terminating the Brady Contract and amending
the Agreement to reflect a combined plant of 19.9 MW of capacity.

     In consideration of the promises and covenants contained herein, the
Parties agree as follows:

2. Amendment Term. This Amendment shall be effective at 2400 hours on the
effective date of Sierra's Consent to Assignment of the Brady Contract from
Brady Hot Springs Geothermal Associates to Seller ("Effective Date") and shall
continue until the Agreement is terminated.

3. Brady Contract Termination. Upon the Effective Date of this Amendment, the
Brady Contract shall be terminated in its entirety.

4. Rate. Subsections 8.(c) and 8 (d) of the Agreement are amended to read as
follows:

          "(c) If the Commercial Operation Date of the Project is on or before
     2400 hours on August 20, 1992, then Sierra shall pay Seller, during the
     period commencing on the Commercial Operation Date and continuing for the
     Term, for all Adjusted Net Metered Output purchased from Seller's Project
     pursuant to the applicable provisions set forth in Exhibit D.

          (d) If the Commercial Operation Date of the Project is after 2400
     hours on August 20, 1992, but on or before 2400 hours on

                                     Page 2                               7/3/91

     November 20, 1992, then Sierra shall pay Seller, during the period
     commencing on the Commercial Operation Date and continuing for the Term,
     for all Adjusted Net Metered Output purchased from Seller's Project
     pursuant to the applicable provisions set forth in Exhibit D."

5. Guarantees. Section 11. Guarantees of the Agreement is hereby replaced and
shall read as follows:

          "11. Guarantees. (a) Upon financial closing of the Project, but in no
     event later than July 31, 1991, Seller shall provide to Sierra $231,000 as
     an additional amount of earnest money deposit. The deposit may be in the
     form of cash, an irrevocable letter of credit or any other form acceptable
     to Sierra. Such deposit, if other than cash, shall list Sierra as
     beneficiary and provide Sierra with clear first rights to the deposit in
     the event of a default as noted in subsection (b) below. Seller has
     previously advanced to Sierra an earnest money deposit of $67,500. The
     total earnest money amount of $298,500 is based upon a fee of $15.00 per KW
     and a capacity of 19,900 KW.

          (b) In the event Seller does not complete a milestone in accordance
     with Section 9 of this Agreement, withdraws the Project, cancels the
     Project for any reason including force majeure, or does not achieve a
     Commercial Operation Date pursuant to Section 7 on or before 2400 hours on
     August 20, 1992, Seller shall forfeit its $298,500 deposit to Sierra.

          (c) Sierra will refund the deposit to Seller or apply it against any
     outstanding balance if Seller establishes a Commercial Operation Date for
     the Project, pursuant to Section 7 of this Agreement, on or before 2400
     hours on August 20, 1992."

                                     Page 3                               7/3/91

6. Sale of Capacity and Energy. Section 6.(a)(2) of the Agreement is amended to
read as follows:

          "(2) Firm Energy which is expected to total approximately 164,241,400
     kilowatt hours in any Contract Year subject to the restrictions specified
     in Section 15 of this Agreement."

Section 6.(b) of the Agreement is amended to read as follows:

          "(b) At the end of the third Contract Year, and the end of each
     Contract Year thereafter, Sierra shall perform the following calculations:
     1) calculate the three year average of the Peak Period Capacity for the
     three immediately preceding years by adding the billing period Peak Period
     Capacity for those thirty-six (36) months and dividing by thirty-six (36).
     2) If such average is below 95% and greater than or equal to 85% of the
     Peak Period Capacity value in Exhibit B, then the capacity rate for the
     next year shall be reduced 1% for each percent or portion thereof that the
     average is below 100%; 3) If the average is less than 85% of the Peak
     Period Capacity value in Exhibit B, then the Seller shall pay Sierra the
     sum of $1,500,000 as and for liquidated damages. This shall be a lump sum
     payment in 1990 dollars and shall be escalated at GNPD beginning the year
     1991 up to the year of the payment. This amount will be billed as soon as
     reasonably practicable after the determination of the three year average
     and shall be due within thirty (30) days of such billing.

          If the three year rolling average is less than 85% of the Average Peak
     Period Capacity Value then specified in Exhibit B, then each of the Exhibit
     B Peak Period Capacity values shall be replaced by the average Peak Period
     Capacity value for that billing period in the three year period described
     above. Said average Peak Period Capacity value

                                     Page 4                               7/3/91

     shall be calculated by adding the Peak Period Capacity value for that
     billing period in each of the previous three years and dividing by 3.
     Sierra shall prepare a revised Exhibit B to incorporate such revised Peak
     Period Capacity values and such revised values shall be used thereafter,
     effective the first month of the new Contract Year. The capacity rate will
     revert back to the amount specified in Exhibit D effective with the revised
     Exhibit B. At the end of the next three contract years, and the end of each
     Contract Year thereafter, Sierra shall repeat the calculations 1, 2, and 3
     above."

7. Continuity of Deliveries and Economic Dispatch. Section 15.(b) of the
Agreement is amended to read as follows:

          "(b) Sierra shall have the right to economically dispatch the Project
     for a maximum of 6,000,000 kilowatt hours of Adjusted Net Metered Output
     each Contract Year. Such economic dispatch capability shall be exercised by
     verbal notice to Seller by Sierra by 1000 hours on the day preceding the
     day on which the Project will be economically dispatched. Such notice shall
     include the hours and the reduced energy price for such hours. Seller shall
     have the option of accepting the reduced energy payment as specified by
     Sierra at the time of such notice for continued deliveries of capacity and
     energy, or discontinuing delivery of capacity and energy for the period
     described in Sierra's notice. Seller shall notify Sierra verbally by 1100
     hours of the option Seller has selected.

          For any month in which Sierra exercises its economic dispatch rights
     for energy under this subsection, Sierra shall provide Seller an accounting
     of the reduced energy price contained in the verbal notice

                                     Page 5                               7/3/91

     by Sierra to Seller. Such accounting shall be included as part of the
     following month's payment to Seller as provided in Section 13."

8. Project Schedule.

     (A) Section 9.(b) of the Agreement is amended to read as follows:

          "(b) Seller shall provide Sierra with the specific amounts of: (1)
     steam in pounds per hour, (2) pressure in pounds per square inch and (3)
     temperature in degrees Fahrenheit, (all measured or recorded at the turbine
     inlet valve) which are necessary to operate the Project at the average of
     the Peak Period Capacity value specified in Exhibit B. Data shall be
     provided to Sierra by 2400 hours on September 16, 1991. Subject to Sierra's
     review and acceptance, Seller may change this data no later than the date
     of completion of Item 3 in Exhibit O. This information will be used as a
     baseline and monitoring tool for items 3 and 7 in Exhibit O."

9. Insurance. Section 20 (b) of the Agreement is amended to read as follows:

          "(b) Prior to connection of the Project to Sierra's system, Seller
shall secure and continuously carry for the Term hereof, with an insurance
company or companies acceptable to Sierra, insurance policies for bodily injury
and property damage liability. Such acceptance shall not be unreasonably
withheld. Such insurance shall include: provisions or endorsements naming Sierra
as additional insured as its interest may appear; provisions that such insurance
is primary insurance with respect to the interest of Sierra and that any
insurance maintained by Sierra is excess and not contributory insurance with the
insurance required hereunder; cross-liability or severability of insurance
interest clause; and provisions that such policies shall not be cancelled or
their limits of liability

                                     Page 6                               7/3/91

reduced without thirty (30) days prior written notice to Sierra. Initial limits
of liability for all requirements under this Section shall be not less than
$2,000,000 for each occurrence."

10. Exhibits. Exhibits B, D, E and O of the Agreement are replaced by the
Exhibits B, D, E, and O attached hereto.

11. Status of Amendment. It is expressly understood and agreed by the Parties
hereto that this Amendment is supplemental to the Agreement. It is further
understood and agreed that all the terms, conditions, and provisions of the
Agreement, unless specifically modified herein are to apply to this Amendment
and are made part of the Amendment as though they were expressly rewritten,
incorporated and included herein.

                                     Page 7                               7/3/91

12. Multiple Originals. Three (3) copies of this Agreement have been executed by
the Parties. Each executed copy shall be deemed an original.

     IN WITNESS WHEREOF, the Parties hereto have executed this Amendment on this
12 day of July, 1991. Acknowledged and Agreed To By:

BRADY POWER PARTNERS

BY: NEVADA GEOTHERMAL POWER PARTNERS,
    LIMITED PARTNERSHIP, A GENERAL PARTNER

BY: HOT SPRINGS POWER COMPANY, ITS MANAGING
    GENERAL PARTNER

BY: /s/ RANDY S. GOLDENHERSH
    ---------------------------
    RANDY S. GOLDENHERSH,
    PRESIDENT

DATE: 7/8/91

BY: ESI BH LIMITED PARTNERSHIP, A GENERAL
    PARTNER

BY: ESI BRADY, INC., ITS GENERAL PARTNER

BY: /s/ LARRY K. CARPENTER
    ---------------------------
    LARRY K. CARPENTER
    PRESIDENT

DATE:
      -------------------------

SIERRA:

SIERRA PACIFIC POWER COMPANY

BY: /s/ GERALD W. CANNING
    ---------------------------
    GERALD W. CANNING
    VICE PRESIDENT,
    ELECTRIC RESOURCES

DATE: 7/12/91

---------
  APPVD.
---------
____
---------
____
---------

                                     Page 8                               7/3/91

                                                      Exhibit A
                                                      To Long Term Agreement
                                                      For The Purchase and Sale
                                                      of Electricity Between
                                                      Sierra Pacific Power
                                                      Company and Brady Power
                                                      Partners Effective Upon
                                                      Execution

                              PROJECT UNIT LISTING

TURBINE NAMEPLATE:

                       Two High Pressure Units                                 One Low Pressure Unit
                       -----------------------                                 ---------------------

Manufacturer:          General Electric                                        General Electric
Model:                 CL55                                                    CL55
Type:                  Double Flow                                             Double Flow
Rating:                8058 KW @ 51.52 psia inlet,                             7839 KW @ 26.55 psia inlet,
                       2.5" HGA exhaust                                        2.5" HGA exhaust

GENERATOR NAMEPLATE: (Same for all turbines)
Manufacturer:          Ideal Electric
Model:                 SAB
Type:                  Synchronous, Horizontal, TEWAC
Rating:                8889 KVA, 8000 KW, 0.9 pf
Voltage:               12.5 KV, 3 phase, Y-connected, 60 Hz
Speed:                 1800 rpm
Temperature Rise:      80(DEG.)C by resistance above a 40(DEG.)C ambient
Insulation:            Class F
Additional Features:   Damper Windings
                       Brushless Exciter
                       Permanent Magnet Alternator
                       Static Voltage Regulator

The power plant will consist of two high pressure units and one low pressure
unit, each with nameplate data as presented above. They will be supplied by
Geothermal Power Company of Elmira, New York, as skid-mounted units complete
with speed reduction gear, lube-oil system, steam inlet control valves,
hydraulic oil system, and switchgear.

BRADY POWER PARTNERS

By: NEVADA GEOTHERMAL POWER PARTNERS, LIMITED PARTNERSHIP,
    A GENERAL PARTNER

    By: Hot Springs Power Company, a general partner

    By: /s/ Randy Goldenhersh
        ------------------------

    By: Randy Goldenhersh, President

    Date: 11/20/91

By: ESI BH, LIMITED PARTNERSHIP, A GENERAL PARTNER

    By: ESI BH Limited Partnership, a general partner

    By: /s/ Larry K. Carpenter
        ------------------------

    By: Larry K. Carpenter, President

    Date: 12-9-91

SIERRA PACIFIC POWER COMPANY

By: /s/ Gerald W. Canning                                              ---------
    ----------------------------                                         APPVD.
    Gerald W. Canning, Vice President, Electric Operations             ---------
                                                                       ___   ___
    Date: 12/20/92                                                     ---------

                                                                       ---------

                                                                   ATTACHMENT #1
                                                                       EXHIBIT B
                                                                 AMENDMENT NO. I
                                                                     Page 1 of 1

                                 CAPACITY TABLE
                    NEVADA GEOTHERMAL POWER PARTNER'S PROJECT

BILLING PERIOD                                    PEAK PERIOD CAPACITY VALUE: KW
--------------                                    ------------------------------
JANUARY.........................................               19,900
FEBRUARY........................................               19,600
MARCH...........................................               19,100
APRIL...........................................               18,700
MAY.............................................               18,300
JUNE............................................               17,800
JULY............................................               17,700
AUGUST..........................................               17,700
SEPTEMBER.......................................               18,300
OCTOBER.........................................               19,000
NOVEMBER........................................               19,300
DECEMBER........................................               19,700
                                                               ------
AVERAGE OF THE PEAK PERIOD CAPACITY VALUES, KW..               18,700

                                                                       EXHIBIT C
                                                                       1 of 4

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              15th Revised   P.S.C.N. Sheet No. 2
Tariff No. Electric No. 2      Cancelling 14th Revised   P.S.C.N. Sheet No. 2

--------------------------------------------------------------------------------

                                SCHEDULE NO. CSPP

                                SHORT-TERM RATES
                     COGENERATION AND SMALL POWER PRODUCTION

APPLICABILITY

          This schedule is applicable only to purchases from Qualifying
Facilities as defined in Utility's Nevada Electric Tariff No. 1 Rule No. 15
under a Short-Term Purchase Agreement with Utility and where no other schedules
are specifically applicable.

RATES

          Utility will pay the sum of the following rates for the energy and
capacity provided as determined by meter readings:

     (1)  ENERGY RATE

     a.   Time-differentiated:

                                                                   1992
                                           -----------------------------------------------------
                                           1st Quarter   2nd Quarter   3rd Quarter   4th Quarter
                                           01/01-03/31   04/01-06/30   07/01-09/30   10/01-12/31
                                           -----------   -----------   -----------   -----------

     Winter
          All On-Peak kWh, per kWh           $0.02247      $0.01760        N/A         $0.01969
          Plus all Mid-Peak kWh, per kWh     $0.02190      $0.01763        N/A         $0.01990
          Plus all Off-Peak kWh, per kWh     $0.01882      $0.01772        N/A         $0.01792

     Summer
          All On-Peak kWh, per kWh             N/A         $0.01717      $0.01847        N/A
          Plus all Off-Peak kWh, per kWh       N/A         $0.01726      $0.01790        N/A

     b.   Non-time differentiated: (See Special Condition 3)

          All kWh, per kWh                   $0.02087      $0.01751      $0.01818      $0.01911

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 01/01/92
                                      Issued By:
Effective: 01/01/92               William L. Keepers
                                      President
Advice No.: 308-E

                                   Appendix E
                                   Page 1 of 4

                                                                       EXHIBIT C
                                                                       2 of 4

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              15th Revised   P.S.C.N. Sheet No. 3
Tariff No. Electric No. 2      Cancelling 14th Revised   P.S.C.N. Sheet No. 3

--------------------------------------------------------------------------------

                                SCHEDULE NO. CSPP

                                SHORT-TERM RATES
                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

RATES (Continued)

(2)  CAPACITY RATE

a.   Time-differentiated:
                                         1992
                                       -------
Winter
     All On-Peak kWh, per kWh          $.00959
     Plus all Mid-Peak kWh, per kWh    $.00859
     Plus all Off-Peak kWh, per kWh    $.00506

Summer
     All On-Peak kWh, per kWh          $.00796
     Plus all Off-Peak, kWh, per kWh   $.00516

b.   Non-time differentiated: (See Special Condition 3)

     All kWh, per kWh                  $.00717

SPECIAL CONDITIONS

1. The payment period for Utility purchases hereunder shall be the time interval
between two consecutive meter readings that are taken for billing purposes.

2. The Utility and the Qualifying Facility shall have executed a Short-Term
Purchase Agreement for the purchase and sale of capacity and energy.

3. Qualifying Facilities having rated (nameplate) capacities of 100 kW or less
shall have the option to choose either flat or time-differentiated rates.
Qualifying Facilities having rated (nameplate) capacities in excess of 100 kW
will receive payments based on the time-differentiated rates only.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 01/01/92
                                      Issued By:
Effective: 01/01/92               William L. Keepers
                                      President
Advice No.: 308-E

                                   Appendix E
                                   Page 2 of 4

                                                                       EXHIBIT C
                                                                       3 of 4

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              15th Revised   P.S.C.N. Sheet No. 3
Tariff No. Electric No. 2      Cancelling 14th Revised   P.S.C.N. Sheet No. 3

--------------------------------------------------------------------------------

                                SCHEDULE NO. CSPP

                                SHORT-TERM RATES
                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

RATES (Continued)

(2)  CAPACITY RATE

a.   Time-differentiated:
                                         1992
                                       -------
Winter
     All On-Peak kWh, per kWh          $.00959
     Plus all Mid-Peak kWh, per kWh    $.00859
     Plus all Off-Peak kWh, per kWh    $.00506

Summer
     All On-Peak kWh, per kWh          $.00796
     Plus all Off-Peak, kWh, per kWh   $.00516

b.   Non-time differentiated: (See Special Condition 3)

     All kWh per kWh                   $.00717

SPECIAL CONDITIONS

1. The payment period for Utility purchases hereunder shall be the time interval
between two consecutive meter readings that are taken for billing purposes.

2. The Utility and the Qualifying Facility shall have executed a Short-Term
Purchase Agreement for the purchase and sale of capacity and energy.

3. Qualifying Facilities having rated (nameplate) capacities of 100 kW or less
shall have the option to choose either flat or time-differentiated rates.
Qualifying Facilities having rated (nameplate) capacities in excess of 100 kW
will receive payments based on the time-differentiated rates only.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 01/01/92
                                      Issued By:
Effective: 01/01/92               William L. Keepers
                                      President
Advice No.: 308-E

                                   Appendix E
                                   Page 3 of 4

                                                                       EXHIBIT C
                                                                       4 of 4

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              Original     P.S.C.N. Sheet No. 4
Tariff No. Electric No. 2      Cancelling              P.S.C.N. Sheet No.
                                          ----------                      --

--------------------------------------------------------------------------------

                                SCHEDULE NO. CSPP

                                SHORT-TERM RATES
                     COGENERATION AND SMALL POWER PRODUCTION
                                  (Continued)

SPECIAL CONDITIONS, (Continued)

     4. Daily time periods will be based on Pacific time and are defined as
follows:

Winter Period     On-Peak   5:01 p.m. to 10:00 p.m. daily
                 Mid-Peak   7:00 a.m. to  5:00 p.m. daily
                 Off-Peak   All other hours

Summer Period     On-Peak   10:01 a.m. to 10:00 p.m. daily
                 Off-Peak   All other hours

     The winter period will consist of eight months from October through May.
The summer period will consist of four months from June through September.

     5. Qualifying Facilities providing energy to Utility hereunder shall be
entitled to receive electric service from Utility on the filed rates
schedule(s) contained in Utility's Nevada Electric Tariff No. 1 applicable to
the type and location of the Qualifying Facility.

     6. All purchases made under this schedule are subject to the provision of
Rule No. 15 as contained in Utility's Nevada Electric Tariff No. 1.

--------------------------------------------------------------------------------

Issued:     6/23/86

                                   Issued By:
Effective:  6/23/86             Austin W. Stedham
                                    President

Advice No.: 249-E
            (Revised)

                                   Appendix E
                                   Page 4 of 4

--------------------------------------------------------------------------------

                                                                   Attachment #2
                                                                       Exhibit D
                                                                 Amendment No. 1
                                                                Payment Schedule
                                                                     Page 1 of 4

1.   This payment schedule is applicable only to purchases of firm capacity and
     firm energy from the Nevada Geothermal Power Partner's Project described in
     this Agreement.

2.a. If Seller's Project establishes a Commercial Operation Date which meets the
     criteria specified in Section 7 of this Agreement and thereby qualifies for
     payments pursuant to this Exhibit, Sierra will pay for the total Firm
     Energy and Firm Capacity delivered as determined by the Adjusted Net
     Metered Output:

2.b. Subject to the provisions in Section 15(b) of the Agreement, the energy
     payment shall be the sum of the products of the appropriate energy rate and
     the corresponding period kWh Adjusted Net Metered Output.

     Energy payment = [E] Periods (kWh delivered x Energy Rate of Section
                                 2.b.(i) of this Exhibit x 2/3)

                    + [E] Periods (kWh delivered x Energy Rate of Section
                                 2.b.(ii) of this Exhibit x 1/3)

     (i) PERIOD       1991$ PER KILOWATT-HOUR BASE ENERGY RATE

                                                        Commercial Operation
                                 Commercial Operation        Date between
                                   Date on or before     August 20, 1992 and
                                    August 20, 1992       November 20, 1992
                                 --------------------   --------------------

     Winter
     All on-peak kWh, per kWh           $.02662                .02560
     All mid-peak kWh, per kWh          $.02583                .02484
     All off-peak kWh, per kWh          $.02334                .02244

     Summer
     All on-peak kWh, per kWh           $.02608                .02508
     All off-peak kWh, per kWh          $.02376                .02285

     These rates shall be subject to adjustment as noted in Section 6.a of this
     Exhibit.

                                                                   Attachment #2
                                                                       Exhibit D
                                                                 Amendment No. 1
                                                                Payment Schedule
                                                                     Page 2 of 4

     (ii) PERIOD     1991$ PER KILOWATT-HOUR BASE ENERGY RATE

                                                        Commercial Operation
                                 Commercial Operation        Date between
                                   Date on or before     August 20, 1992 and
                                    August 20, 1992       November 20, 1992
                                 --------------------   --------------------
     Winter
     All on-peak kWh, per kWh           $.03845                .03545
     All mid-peak kWh, per kWh          $.03740                .03440
     All off-peak kWh, per kWh          $.03408                .03108

     Summer
     All on-peak kWh, per kWh           $.03773                .03473
     All off-peak kWh, per kWh          $.03464                .03164

     These rates shall be subject to adjustment as noted in Section 6.b of this
     Exhibit.

If Seller has accepted a reduced rate for the sale of energy in accordance with
Section 15(b) of the Agreement, then such reduced rate specified in the verbal
notice shall be utilized in the calculation of payment for the Adjusted Net
Metered output delivered for the time period specified in the verbal notice.

2.c. The capacity payment shall be as noted below and shall be subject to
     adjustment as noted in Section 2 of this Exhibit.

     Capacity Payment = Capacity Rate of Section 2.c. (i) of this Exhibit x
                        Capacity Level x 2/3

                   +    Capacity Rate of Section 2.c. (ii) of this Exhibit x
                        Capacity Level x 1/3

     (i)    Capacity Rate            Effective Date
           ---------------   ----------------------------
           $20.25/kW Month   Commercial Operation Date

           $ 8.88/kW Month   Twentieth (20th) Anniversary
                             of Commercial Operation Date

     (ii)   Capacity Rate            Effective Date
           ---------------   ----------------------------
           $14.62/kW Month   Commercial Operation Date

                                                                   Attachment #2
                                                                       Exhibit D
                                                                 Amendment No. 1
                                                                Payment Schedule
                                                                     Page 3 of 4

               $6.41/kW Month                       Twentieth (20th) Anniversary
                                                    of Commercial Operation Date

Capacity Level = the lesser of:

     (a) The kWh generated during the Peak Period divided by the Peak Period or,

     (b) The monthly on-peak capacity value noted in Exhibit B corresponding to
     the billing period.

3.   The Peak Period will be reduced by the cumulative monthly total of Peak
     Period hours associated with Sierra's requirement to curtail Adjusted Net
     Metered Output pursuant to Sections 15 (a) and 15 (b) of the Agreement to
     the extent such monthly curtailment exceeds 4 hours. Only the hours of
     curtailment that exceed 4 hours shall be deducted on a monthly or
     cumulative basis. It shall be Seller's responsibility to maintain a log of
     the monthly and cumulative total of curtailment hours curtailed pursuant to
     subsection 15 (a) of the Agreement and notify Sierra monthly of such
     amounts.

4.   The billing period for Sierra purchases hereunder shall be the time
     interval between two consecutive meter readings that are taken for billing
     purposes.

5.   Daily time periods will be based on Pacific time and are defined as
     follows:

     Winter Period
     On-Peak    5:01 p.m. to 10:00 p.m. daily
     Mid-Peak   7:00 a.m. to 5:00 p.m. daily
     Off-Peak   All other hours

     Summer Period
     On-Peak    10:01 a.m. to 10:00 p.m. daily
     Off-Peak   All other hours

     The winter period will consist of eight (8) months from October through
     May. The summer period will consist of four (4) months from June through
     September.

     This table is excerpted from Electric Tariffs No. 2, PSCN Sheet No. 4,
     Schedule No. CSPP, and is subject to change in accord with the on-

                                                                   Attachment #2
                                                                       Exhibit D
                                                                 Amendment No. 1
                                                                Payment Schedule
                                                                     Page 4 of 4

     peak, mid-peak, and off-peak periods as described in SPPC's own rate
     schedules for the sale of electricity, as revised from time to time.

6.a. The energy rate contained in Section 2.b (i) of this Exhibit shall be
     adjusted on the first anniversary and each subsequent anniversary of the
     Commercial Operation Date of the Project. The adjustment shall be
     calculated as follows:

     R(n) = (1.04) R(n-1)

     R = the indexed rate
     n = the calendar year in which the adjustment takes place

     The capacity rates in Section 2.c. (i) of this Exhibit shall remain fixed
     at the level indicated in Section 1 of this Exhibit, unless modified
     pursuant to Section 2 of this Exhibit.

6.b. The energy rate contained in Section 2.b. (ii) of this Exhibit shall be
     adjusted on the first anniversary and each subsequent anniversary of the
     Commercial Operation Date of the Project based on a three year rolling
     average of the change in the Gross National Product Deflator during the
     prior calendar year. The adjustment shall be calculated as follows:

     R(n) = (((I(n-l)/I(n-2)+(I(n-2)/I(n-3))+(I(n-3)/I(n-4))/3) R(n-1)

     R =    the indexed rate

     I =    the absolute level of the appropriate year index

     n =    the calendar year in which the adjustment takes place.

     In no event shall R(n) exceed a 5.5 percent increase for any three year
     rolling average.

     The capacity rates contained in Section 2.c (ii) of this Exhibit shall
     remain fixed at the level indicated in Section 2.c (ii) of this Exhibit,
     unless modified pursuant to Section 2 of this Exhibit.

                                                                   ATTACHMENT #3
                                                                       EXHIBIT E
                                                                 AMENDMENT NO. 1
                                                                     Page 1 of 4

                           SAMPLE BILLING CALCULATIONS

This example is for purposes of illustrating billing under the rate schedule
contained in this Agreement only, and does not supplement or amend the terms of
the Agreement to which it is attached.

1.   If the Project qualified for payment under Section 8(d) of this Agreement,
     the following payment method is applicable:
     Assume: a.     On-peak generation is 3,123,000 kWh.
             b.     Mid-peak generation is 6,246,000 kWh.
             c.     Off-peak generation is 5,621,400 kWh.
             d.     The energy and capacity was delivered during the
                    First Contract Year for the March billing period.
             e. o   2/3 of the energy will be paid at the following rates:
                    On-peak Exhibit D 2.b.(i) energy rate is $.02560/kWh.
                    Mid-peak Exhibit D 2.b.(i) energy rate is $.02484/kWh.
                    Off-peak Exhibit D 2.b.(i) energy rate is $.02244/kWh.
                o   1/3 of the energy will be paid at the following rate:
                    On-peak Exhibit D 2.b.(i) energy rate is $.03545/kWh.
                    Mid-peak Exhibit D 2.b.(i) energy rate is $.03440/kWh.
                    Off-peak Exhibit D 2.b.(i) energy rate is $.03108/kWh.

             f. o   2/3 of the capacity will be paid at the following rate:
                    Exhibit D 2.c.(i) capacity rate is $20.25/kW month.
                o   1/3 of the capacity will be paid at the following rate:
                    Exhibit D 2.c.(ii) capacity rate is $14.62/kWh.
             g.     There were 465 mid and on-peak hours during the billing
                    period.

     Calculation of the Energy Payment:

     The energy payment will equal the sum of the products of on-peak, mid-peak,
     and off-peak generation kilowatt hour values and the energy rate prorated
     at the different rates specified above.
     On-peak  =   2/3 x 3,123,000 kWh x $.02560 =   $ 53,299.20
     Mid-peak =   2/3 x 6,246,000 kWh x $.02484 =   $103,433.76

                                                                   ATTACHMENT #3
                                                                       EXHIBIT E
                                                                 AMENDMENT NO. 1
                                                                     Page 2 of 4

Off-peak = 2/3 x 5,621,400 kWh x $.02244 = $ 84,096.14
On-peak  = 1/3 x 3,123,000 kWh x $.03545 = $ 36,903.45
Mid-peak = 1/3 x 6,246,000 kWh x $.03440 = $ 71,620.80
Off-peak = 1/3 x 5,621,400 kWh x $.03108 = $ 58.237.70
                                           -----------
Total Energy Payment                       $407,591.05

Calculation of Capacity Payment:

The capacity payment will be prorated at the rates specified above. The capacity
payment will equal the lesser of a) the product of the Capacity Rate and the kWh
generated during the Peak Period hours, divided by the number of Peak Period
hours or b) the product of the Capacity Rate and Peak Period Capacity Value of
19,100 kW for the March Billing Period.

          1)   o $20.25/kW x 2/3 x 9,369,000 kWh / 465 = $272,003.23

               o $14.62/kW x 1/3 x 9,369,000 kWh / 465 = $ 98,189.81

          2)   o $20.25/kW x 2/3 x 19,100 kW = $257,850.00

               o $14.62/kW x 1/3 x 19,100 kW = $ 93,080.67

               Capacity Payment                $350,930.67

          Calculation of Total Payment:

          Total Payment will equal the sum of the capacity payment and energy
          payment.

          Total Payment = $407,591.05 + $350,930.67 = $758,521.72

     2.   If the Project qualified for payment under Section 8 (b) of this
          Agreement, the following payment method is applicable:

                                                                   ATTACHMENT #3
                                                                       EXHIBIT E
                                                                 AMENDMENT NO. 1
                                                                     Page 3 of 4

          Assume: a.   On-peak generation is 458,333 kWh.

                  b.   Mid-peak generation is 825,000 kWh.

                  c.   Off-peak generation is 550,000 kWh.

                  d.   On-Peak Exhibit C capacity rate is $.00873/kWh and
                       energy rate is $.02402/kWh.

                  e.   Mid-peak Exhibit C capacity rate is $.00782/kWh and
                       energy rate is $.02378/kWh.

                  f.   Off-peak Exhibit C capacity rate is $.00461/kWh and
                       energy rate is $.02022/kWh.

Calculation of Capacity Payment:

The capacity payment will equal the sum of the products of on-peak, mid-peak,
and off-peak generation kilowatt hour values and their respective rates.

On-peak  = 458,333 kWh x $.00873 = $ 4,001.25

Mid-peak = 825,000 kWh x $.00782 = $ 6,451.50

Off-peak = 550,000 kWh x $.00461 = $ 2,535.50

Capacity Payment                   $12,988.25

Calculation of Energy Payment:

The energy payment will equal the sum of the products of on-peak, mid-peak, and
off-peak generation kilowatt hour values and their respective rates.

On-peak  = 458,333 kWh x $.02402 = $11,009.16

Mid-peak = 825,000 kWh x $.02378 = $19,618.50

Off-peak = 550,000 kWh x $.02022 = $11,121.00
                                   ----------
Energy Payment                     $41,748.66

                                                                   ATTACHMENT #3
                                                                       EXHIBIT E
                                                                 AMENDMENT NO. 1
                                                                     Page 4 of 4

Calculation of Total Payment:

Total Payment will equal the sum of the capacity payment and energy payment.

Total Payment = $12,988.25 + 41,748.66 = $54,736.91

                         BRADY POWER PROJECT - Schedule

                                    [GRAPHIC]

________ POWER PARTNERS:

_______ GEOTHERMAL POWER
_______, LIMITED PARTNERSHIP,
_________ general partner

_________ Power Company,
_________ general partner

_____ /s/ Illegible
      ----------------------------------
_____ __oldenhersh, President
_______ __/10/91

By: ESI BH Limited Partnership,
         a general partner

By: /s/ Illegible
    ------------------------------------

By: Larry K. Carpenter, President
    Date: 12-9-91

SIERRA PACIFIC POWER COMPANY

By: /s/ Gerald W. Canning
    ------------------------------------
    Gerald W. Canning, Vice President
           Electric Operations
    Date: 12/20/92

--------
  APPVD.
--------
CD   SRC
--------

--------

Amendment No. 1 to Exhibit __
To Long Term Agreement ___ Purchase and Sale of Electricity Between Sierra
Pacific Power Company and Brady Power Partners
Page 2 of 2
Effective Upon Execution

                                                                       EXHIBIT G
                                                                       1 of 12

SIERRA PACIFIC POWER COMPANY
        RENO, NEVADA                         First Revised Sheet P.S.C.N. No. 50
                                       Cancelling Original Sheet P.S.C.N. No. 50

--------------------------------------------------------------------------------

                                   Rule No. 16

             SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES

A.   Service Installation (Continued)

     2.   Underground Service Connections (Continued)

          (b)  Underground Service from Underground System (Continued)

               (1)  New Underground Service Installations (Continued)

                    (A)  the Applicant shall (Continued)

                              transformer vault, pull box, or other duct
                              termination facilities,

                         2.   perform the necessary trenching, backfill, and
                              paving for the service lateral,

                         3.   furnish and install any select backfill materials
                              required,

                         4.   furnish, install, and maintain, at his expense,
                              any specified conduit or duct from the transformer
                              vault, pull box, or other duct termination
                              facilities to the service connection point,

                         5.   permit the Utility to use the trench and any
                              conduit or duct system on his premises for the
                              purpose of housing the Utility's service
                              conductors or cables,

                         6.   pay to the Utility the cost of any conductors or
                              cables required between the service connection
                              point and the duct termination facilities in
                              addition to that provided by the Utility in
                              Section A.2.(b).(l). (B).6. hereof, and

                         7.   provide and maintain, at his expense, any
                              necessary outdoor termination enclosures.

                    (B)  the Utility shall

                         1.   specify the number, size and location of the
                              transformer vaults, pull boxes, or other duct
                              termination facilities,

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: June 23, 1966               Issued By:
                                  Neil W. Plath
EFFECTIVE: October 3, 1966          President

                                                                       EXHIBIT G
                                                                       2 of 12

SIERRA PACIFIC POWER COMPANY
        RENO, NEVADA                         First Revised Sheet P.S.C.N. No. 51
                                       Cancelling Original Sheet P.S.C.N. No. 51

--------------------------------------------------------------------------------

                                   Rule No. 16

             SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     2.   Underground Service Connections (Continued)

          (b)  Underground Service from Underground System (Continued)

               (1)  New Underground Service Installations (Continued)

                    (B)  the Utility shall (Continued)

                         2.   designate the location of the service-connection
                              point at or near the property line of Applicant,

                         3.   specify the number, size, type and manner of
                              installation of conduit or duct systems on
                              Applicant's premises,

                         4.   specify the size of the conductors or cables to be
                              installed,

                         5.   install the conductors or cables from the service
                              connection point to the duct termination
                              facilities, and

                         6.   furnish and maintain, at its expense, all
                              conductors or cables required for installation
                              between the service connection point and the duct
                              termination facilities for a distance of one
                              hundred (100) feet or less.

                    (C)  the conductors or cables shall be terminated as
                         follows:

                         1.   Secondary service (480 volts or less). The
                              conductors or cables shall terminate in the
                              service terminating pull section of the
                              Applicant's switchgear or in a pull box or other
                              terminating facilities furnished and installed by
                              the Applicant.

                         2.   Primary service (2,400 volts or more). The
                              conductors or cables shall terminate in the
                              service terminating pull section of the
                              Applicant's switchgear or in a room, vault or
                              other suitable enclosure.

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: June 23, 1966               Issued By:
                                  Neil W. Plath
EFFECTIVE: October 3, 1966          President

                                                                       EXHIBIT G
                                                                       3 of 12

SIERRA PACIFIC POWER COMPANY
        RENO, NEVADA                        Second Revised Sheet P.S.C.N. No. 52
                                  Cancelling First Revised Sheet P.S.C.N. No. 52

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     2.   Underground Service Connections (Continued)

          (b)  Underground Service from Underground System (Continued)

               (2)  Underground Service Installations Replacing Existing
                    Overhead Services

                         In those instances and in those areas where an existing
                    overhead distribution system is replaced by an underground
                    distribution system, underground service connections will be
                    supplied in the same manner and subject to the same
                    conditions as for new installations under Section
                    A.2.(b).(l). above.

          (c)  Underground Services from Overhead Systems

               (1)  New Underground Service Installations

                         Upon a bona fide application for underground service
                    from an overhead system to an Applicant's premises, an
                    underground service connection will be provided by the
                    Utility in accordance with the following provisions:

                    (A)  the Applicant shall

                         1.   provide and maintain, at his expense, any required
                              transformer vault, pull box, or other duct
                              termination facilities,

                         2.   perform the necessary trenching, backfill, and
                              paving on his property and on the Utility easement
                              or right-of-way to the pole,

                         3.   furnish and install any select backfill materials
                              required,

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED:    April 17, 1970           Issued By:
                                  Neil W. Plath
EFFECTIVE: June 5, 1970             President

                                                                       EXHIBIT G
                                                                       4 of 12

SIERRA PACIFIC POWER COMPANY
        RENO, NEVADA                         First Revised Sheet P.S.C.N. No. 53
                                       Cancelling Original Sheet P.S.C.N. No. 53

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     2.   Underground Service Connections (Continued)

          (c)  Underground Services from Overhead Systems (Continued)

               (1)  New Underground Service Installations (Continued)

                    (A)  the Applicant shall (Continued)

                         4.   furnish, install, and maintain, at his expense,
                              any specified conduit or duct from the transformer
                              vault, pull box or other duct termination
                              facilities to the riser,

                         5.   furnish and install, at his expense, an
                              underground riser conduit to a point eight feet
                              above the ground on the designated pole,

                         6.   furnish the riser conduit and the required
                              protective coverings, attachments and terminals to
                              complete the riser installation,

                         7.   permit the Utility to use the trench and any
                              conduit and duct system on his premises for the
                              purpose of housing the Utility's service
                              conductors or cables,

                         8.   pay to the Utility the cost of any conductors or
                              cables required between the service connection
                              point on the pole and the duct termination
                              facilities in addition to that provided by the
                              Utility in Section A.2.(c). (1).(B).8. hereof, and

                         9.   provide and maintain, at his expense, any
                              necessary outdoor termination enclosures.

                    (B)  the Utility shall

                         1.   specify the number, size and location of the
                              transformer vaults, pull boxes or other duct
                              termination facilities,

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: June 23, 1966               Issued By:
                                  Neil W. Plath
EFFECTIVE: October 3, 1966          President

                                                                       EXHIBIT G
                                                                       5 of 12

SIERRA PACIFIC POWER COMPANY
        RENO, NEVADA                         First Revised Sheet P.S.C.N. No. 54
                                       Cancelling Original Sheet P.S.C.N. No. 54

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     2.   Underground Service Connections (Continued)

          (c)  Underground Services from Overhead Systems (Continued)

               (1)  New Underground Service Installations (Continued)

                    (B)  the Utility shall (Continued)

                         2.   designate the pole or location of such pole where
                              the service connection will be made,

                         3.   specify the number, size, type and manner of
                              installation of conduit or duct systems on
                              Applicant's premises,

                         4.   specify the number, size and type of riser
                              together with associated protective coverings and
                              attachments,

                         5.   specify the size of conductors or cables to be
                              installed,

                         6.   install the conductors or cables from the service
                              connection point on the pole to the duct
                              termination facilities,

                         7.   install the remaining portion of the riser, and

                         8.   furnish and maintain, at its expense, all
                              conductors or cables required for installation
                              between the service connection point on the pole
                              and the duct termination facilities for a distance
                              of one hundred (100) feet or less.

                    (C)  the conductors or cables shall be terminated as
                         follows:

                         1.   Secondary service (480 volts or less). The
                              conductors or cables shall terminate in the
                              service terminating pull section of the
                              Applicant's switchgear or in a pull box or other
                              termination facilities furnished and installed by
                              the Applicant.

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: June 23, 1966               Issued By:
                                  Neil W. Plath
EFFECTIVE: October 3, 1966          President

                                                                       EXHIBIT G
                                                                       6 of 12

SIERRA PACIFIC POWER COMPANY                Second Revised Sheet P.S.C.N. No. 55
        RENO, NEVADA              Cancelling First Revised Sheet P.S.C.N. No. 55

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     2.   Underground Service Connections (Continued)

          (c)  Underground Services from Overhead Systems (Continued)

               (1)  New Underground Service Installations (Continued)

                    (C)  the conductors or cables shall be terminated as
                         follows: (Continued)

                         2.   Primary service (2,400 volts or more). The
                              conductors or cables shall terminate in the
                              service terminating pull section of the
                              Applicant's switchgear or in a room, vault or
                              other suitable enclosure.

               (2)  Underground Service Installations Replacing Existing
                    Overhead Services

                         Upon a bona fide application for replacement of an
                    existing overhead service with an underground service to an
                    Applicant's premises, an underground service connection will
                    be supplied in the same manner and subject to the same
                    conditions as for new installations under Section A.2.
                    (c).(l). above.

          (d)  Replacement or Reinforcement of Existing Underground Services

                    Whenever, in the judgement of the Utility, an underground
               service requires replacement or reinforcement, such replacement
               or reinforcement will be made in the same manner and subject to
               the same conditions as for new installations under Section A.2.
               (b). (1). hereof.

     3.   Number of Services to be Installed

               The Utility will not install more than one service, either
          overhead or underground, for the same voltage and phase classification
          for any one building or group of buildings on a single premises,
          except that separate services may be installed for separate buildings
          or groups of buildings

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: April 17, 1970              Issued By:
                                  Neil W. Plath
EFFECTIVE: June 5, 1970             President

                                                                       EXHIBIT G
                                                                       7 of 12

SIERRA PACIFIC POWER COMPANY                Second Revised Sheet P.S.C.N. No. 56
        RENO, NEVADA              Cancelling First Revised Sheet P.S.C.N. No. 56

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     3.   Number of Services to be Installed (Continued)

          where necessary for the operating convenience of the Utility. Where
          required by law, local ordinance, and if at Customer's convenience;
          where the Utility installs more than one metered service, each meter
          will be billed separately. Where more than one class of service is
          required for a Customer and is to be supplied from the same pole,
          manhole or service box, the service outlets are to be located as close
          together as practicable.

     4.   Connection of Applicant's Service to Utility Lines

               Only authorized employees of the Utility will be permitted to
          connect the Applicant's service lateral and the Applicant's
          terminating facilities to, or disconnect the same from the Utility's
          electric lines.

     5.   Meters and Associated Equipment

          (a)  General

                    The Utility will, at its own expense, install a suitable
               meter on an Applicant's premises in a location furnished by him
               and approved by the Utility, which location shall, at all
               reasonable times, be accessible for reading, testing and
               maintaining the meter. No rent or other charge shall be made by
               the Applicant for the use of this location.

          (b)  Multiple-Occupancy Buildings

                    In multiple-occupancy buildings where a number of meters are
               required to measure the electricity supplied, all meters will be
               located at a central point and each meter socket or panel will be
               clearly marked to indicate the particular location supplied
               through it.

                    In buildings which are divided into two or more stores or
               other commercial premises, meters may be installed in the
               separate premises provided no adjacent alleyway, common basement
               or other location accessible to all the tenants and suitable for
               the installation of

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: June 23, 1966               Issued By:
                                  Neil W. Plath
EFFECTIVE: October 3, 1966          President

                                                                       EXHIBIT G
                                                                       8 of 12

SIERRA PACIFIC POWER COMPANY
        RENO, NEVADA                             Original Sheet P.S.C.N. No. 56A

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     5.   Meters and Associated Equipment (Continued)

          (b)  Multiple-Occupancy Buildings (Continued)

               a group of meters exist. In such buildings, all wiring from the
               Utility's point of delivery to the individual meters shall be in
               rigid conduit.

          (c)  Sealing of Meters

                    All meters will be sealed by the Utility at the time of
               installation and no seal shall be altered or broken except by one
               of its authorized employees.

          (d)  Equipment Furnished by Customer

                    All service switches, meter sockets, meter and instrument
               transformer housings, cutouts and similar devices, irrespective
               of voltage, required in connection with a service and meter
               installation on a Customer's premises shall be furnished,
               installed and maintained by the Customer in accordance with, the
               Utility's requirements.

          (e)  Equipment Furnished by Utility

                    The Utility will furnish and install the necessary
               instrument transformers, test facilities and meters. The Utility
               will furnish the metering enclosures when in the opinion of the
               Utility it appears necessary to locate metering equipment at a
               point that is not accessible to the Customer.

          (f)  Master Meters

                    A master meter will be furnished and installed by the
               Utility upon application by the owner or lessee of any buildings
               where the floors (or portions thereof) or rooms or groups of
               rooms are rented separately and where electric energy is to be
               metered and resold by said owner or lessee to the individual
               tenants as provided in Rule No. 18, Supply To Separate Premises
               and Resale. In such cases, the said owner or lessee shall
               furnish, install, maintain and test the submeters.

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: June 23, 1966               Issued By:
                                  Neil W. Plath
EFFECTIVE: October 3, 1966          President

                                                                       EXHIBIT G
                                                                       9 of 12

SIERRA PACIFIC POWER COMPANY                First Revised Sheet P.S.C.N. No. 56B
        RENO, NEVADA                  Cancelling Original Sheet P.S.C.N. No. 56B

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     6.   Transformer Installations on Applicant's Premises

          (a)  General

                    In those instances where the Utility, for aesthetic,
               economic or engineering reasons, desires to install transformers
               on Applicant's premises, the Applicant shall furnish a
               satisfactory right-of-way for the high voltage primary service
               conductors and shall provide adequate space for the transformer
               installation. Right-of-way and space provisions must be such that
               legal clearances from adjacent structures can be maintained and
               the vault, transformer room, or enclosures shall conform with all
               applicable laws of the State of Nevada, and/or municipal
               regulations, and/or regulations of other public bodies having
               jurisdiction thereof, and shall meet with the approval of the
               Utility.

          (b)  Installations of 75 Kva and Larger

               (1)  The Utility will not furnish pole-type structures.

               (2)  Where transformers and associated equipment or appurtenances
                    are to be located in a fireproof vault or room in a building
                    (or structure), the Applicant shall, at his expense, provide
                    and maintain such vault or room as specified by the Utility.
                    Applicant shall also furnish and install, at his expense,
                    all secondary equipment and material necessary to receive
                    service at the secondary terminals of transformer(s) or as
                    otherwise specified by the Utility. The Utility will, at its
                    expense, complete the installation.

               (3)  Where transformers and associated equipment or appurtenances
                    are to be located outdoors, the Applicant shall, at his
                    expense, provide and maintain, as specified by the Utility,
                    a concrete pad or foundation and suitable enclosure, if
                    required. The Applicant shall also furnish and install, at
                    his expense, all secondary equipment and material necessary
                    to receive service at the secondary terminals of the
                    transformer(s) or as otherwise specified by the Utility. The
                    Utility will, at its expense, complete the installation.

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: April 17, 1970             Issued By:
                                  Neil W. Plath
EFFECTIVE: June 5, 1970             President

                                                                       EXHIBIT G
                                                                       10 of 12

SIERRA PACIFIC POWER COMPANY                First Revised Sheet P.S.C.N. No. 56C
        RENO, NEVADA                  Cancelling Original Sheet P.S.C.N. No. 56c

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

A.   Service Installation (Continued)

     6.   Transformer Installations on Applicant's Premises (Continued)

          (c)  Installations of Less Than 75 KVA

               (1)  The Utility will erect a pole-type transformer structure, at
                    its expense, and service from this structure will be
                    supplied as specified by the Utility.

               (2)  In those instances where the Applicant has provided a
                    fireproof vault or room, at his expense, the installation
                    shall be made in accordance with Section A.6.(b).(2). above.

               (3)  In those instances where the Applicant has provided a
                    concrete pad or foundation, the installation will be made in
                    accordance with Section A.6.(b).(3). above.

B.   Ownership

          The transformers, meters, service wires, appliances, fixtures and
     other facilities furnished by the Utility at its own expense and located
     wholly or partially upon a Customer's premises for the purpose of
     delivering electric energy to the Customer will at all times be and remain
     the property of the Utility which shall have the right to repair or replace
     them at any time or to remove them after service to the Customer has been
     discontinued.

          Such equipment may also be used to supply other Customers whether or
     not on the same premises, provided the proper rights-of-way have been
     obtained.

          No rent or other charge whatsoever shall be made by the Customer
     against the Utility for placing or maintaining said transformers, meters,
     service wires, appliances, fixtures, etc. upon the Customer's premises.

          The Customer shall exercise reasonable care to prevent the facilities
     of the Utility upon said premises from being damaged or destroyed, and
     shall refrain from interfering with same, and, in case any defect therein
     shall be discovered, shall notify the Utility thereof.

                                   (Continued)

--------------------------------------------------------------------------------

ISSUED: April 17, 1970             Issued By:
                                  Neil W. Plath
EFFECTIVE: June 5, 1970             President

                                                                       EXHIBIT G
                                                                       11 of 12

SIERRA PACIFIC POWER COMPANY                First Revised Sheet P.S.C.N. No. 56D
        RENO, NEVADA                  Cancelling Original Sheet P.S.C.N. No. 56D

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

C.   Maintenance

          The Utility will be responsible for the maintenance of its own
     property only, and the Customer shall be responsible for the maintenance of
     all other property required for the receipt of electric energy from the
     Utility.

D.   Right of Access

          Upon application for electric service and the establishment of service
     pursuant thereto, the Customer shall be deemed to grant to the Utility and
     its assigns, to whatever extent the Customer may be empowered to make such
     grant, an irrevocable easement upon and through the Customer's premises for
     the location of the facilities of the Utility required to provide service.
     Any such grant from the owner of the premises serviced shall be deemed to
     be an easement running with the land, and shall bind his heirs and assigns.

          The Utility will, at all reasonable times, have the right of access to
     a Customer's premises for any purpose normally connected with the
     furnishing of electric energy and the exercise of the rights secured to it
     by law or these rules.

E.   Responsibility for Loss or Damage

          The Utility will not be responsible for any loss or damage caused by
     any negligence or wrongful act of a Customer or Customer's authorized
     representatives in installing, maintaining, or operating the receiving
     facilities or utilizing equipment for which electric energy is being
     supplied.

          The Customer shall, at his sole risk and expense, furnish, install,
     inspect and keep in good and safe condition all electrical wires, lines,
     machinery and apparatus of any kind or character which may be required for:
     (1) receiving electric energy from the lines of the Utility, regardless of
     the location of the transformers, meters or other equipment of the Utility;
     and (2) applying and utilizing such energy, including all necessary
     protective appliances and suitable housing therefor.

          The Customer shall also transmit and deliver and be solely responsible
     for the transmission and delivery of all electric energy over or through
     Customer's wires and equipment, regardless of the place where such electric
     energy may be transformed or metered.

--------------------------------------------------------------------------------

ISSUED: July 27, 1967               Issued By:
                                  Neil W. Plath
EFFECTIVE: September 20, 1967       President

                                                                       EXHIBIT G
                                                                       12 of 12

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada                5th Revised   P.S.C.N. Sheet No. 56E
Tariff No. Electric No. 1      Cancelling   4th Revised   P.S.C.N. Sheet No. 56E

--------------------------------------------------------------------------------

                                   Rule No. 16

              SERVICE CONNECTIONS, METERS AND CUSTOMER'S FACILITIES
                                   (Continued)

     F.   Remote Metering

               Remote metering is available to any Customer with 120/240 volt
          single phase service who does not desire to comply with Section D,
          Right of Access, hereto, relative to meter reading.

               The Customer will be required to pay Utility $100.00, in advance,
          for the cost of installing the facilities necessary to provide remote
          metering. The remote metering equipment will remain the property of
          Utility, and Utility will maintain the equipment.

               Utility will require a minimum of two (2) annual inspections of
          the meter and remote register for verification of the meter readings.

               If at any time there should exist a difference between the meter
          reading and the remote register reading, the meter reading will be
          considered as the proper basis for purposes of billing. If a meter
          test is required, it will be done in compliance with Rule No. 17.

     G.   Customer's Responsibilities

          1.   Utility Owned Facilities

               Utility property installed on the premises served for the purpose
               of measuring or supplying service to a customer is placed there
               under the Customer or property owner's protection. The Customer
               or property owner will be held responsible for the breaking of
               seals, tampering or interfering with Utility's meter or meters or
               other equipment of Utility placed under their protection. Only
               authorized employees of Utility will be allowed to make repairs
               or adjustments to meters or other apparatus belonging to Utility.
               Where such repairs or adjustments are necessary, a charge shall
               be made to the customer or property owner as appropriate, in
               addition to actual material costs. See Schedule SC, PSCN No. 63C.

     H.   Tax Liability on Customer Contributions

               Contributions by customers of or for facilities or equipment
          provided under this rule will be increased by the appropriate tax
          liability factor from Section C.5 of Rule No. 9. to cover the
          Utility's tax liability on such contributions. Such tax liability will
          be paid in cash.

--------------------------------------------------------------------------------

Issued: 11/28/88

                                   Issued By:
Effective:  11/28/88            Austin W. Stedham
                                    President

Advice No.: 273-E
            Amended
--------------------------------------------------------------------------------

                                                                       EXHIBIT H
                                                                       1 of 3

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada                 6th Revised   P.S.C.N. Sheet No. 57
Tariff No. Electric No. 1      Cancelling    5th Revised   P.S.C.N. Sheet No. 57

--------------------------------------------------------------------------------

                                   RULE NO. 17

               METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR

     A.   Tests

          1.   Facilities

               The utility shall provide or have access to a facility to
               determine the accuracy of its meters.

          2.   On Customer Request

               The utility shall test the meter of a customer upon his request.

               No charge will be made for performing the test once during any 12
               month period. The utility may charge the customer a fee, as set
               forth in Schedule SC, PSCN No. 63C, for any additional test
               conducted during the period.

               The customer may be present and may request a qualified
               representative of the Commission be present at the time a test is
               conducted.

               If a meter is tested at the request of a customer, the utility
               shall, within a reasonable time after the test:

               a.   Provide the customer with a written statement of the results
                    of the test.

               b.   Notify the customer in writing if the meter is replaced or
                    repaired.

               The utility will prepare and maintain a record of the results of
               each test conducted pursuant to this section. The record will
               include:

               a.   The name and address of the customer.

               b.   The meter number.

               c.   The type of meter.

               d.   The type of test.

               e.   The date on which the test was conducted.

               f.   The results of the test.

               g.   A description of any action taken as a result of the test.

                                        (Continued)

--------------------------------------------------------------------------------

Issued: 1/16/90

                                    Issued By:
Effective: 1/16/90              Austin W. Stedham
                                    President

Advice No.: 292-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT H
                                                                       2 of 3

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada                5th Revised   P.S.C.N. Sheet No. 58
Tariff No. Electric No. 1      Cancelling   4th Revised   P.S.C.N. Sheet No. 58

--------------------------------------------------------------------------------

                                   RULE NO. 17

               METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR
                                   (Continued)

     B.   Adjustment of Bills for Meter Error

          1.   If a meter is tested and found to be inaccurate by more than two
               percent (2%), the bill for service of any customer affected must
               be adjusted as provided in this section.

          2.   Except as otherwise provided in Section B.3., if the meter has:

               a.   Slow Metering:

                    Under-recorded the usage of electric energy. The adjustment
                    must be made only for the period of the most recent three
                    (3) months of usage.

               b.   Fast Metering:

                    Over-recorded usage, the adjustment must be made only for
                    the period of the most recent six (6) months of usage.

               c.   Non-Registering Meters:

                    Upon test, been found to be non-registering, utility shall
                    bill the customer for the estimate of consumption not
                    registered for either the period the meter was in use at
                    such customer's premises, or the preceding three (3) months,
                    whichever is shorter.

          3.   Unauthorized Service

               If the utility establishes that the meter has been tampered with
               or used without authorization, the billing adjustment must be
               calculated for a period not to exceed the most recent six (6)
               months of usage or the date on which the tampering or
               unauthorized use began, whichever is greater.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 1/16/90

                                    Issued By:
Effective: 1/16/90              Austin W. Stedham
                                    President

Advice No.: 292-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT H
                                                                       3 of 3

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada               2nd Revised    P.S.C.N. Sheet No. 58A
Tariff No. Electric  No. 1      Cancelling 1st Revised    P.S.C.N. Sheet No. 58A

--------------------------------------------------------------------------------

                                   RULE NO. 17

               METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR
                                   (Continued)

B.   Adjustment of Bills for Meter Error (Continued)

     4.   Underpayment

          A customer who, because of an adjustment to his bill, owes the utility
          money for service may pay that amount over a three (3) month period.

     5.   Overpayment

          The utility shall credit the account of a customer who was overcharged
          because of an inaccurate meter not later than thirty (30) days after
          the overcharge is determined.

     6.   Calculation of Billing Adjustment

          Bills for this purpose shall be based upon:

          a.   Customer's prior use;

          b.   Customer's subsequent use correctly metered;

          c.   Utility's experience with other customers of the same class; and

          d.   The general characteristics of customer's operations.

--------------------------------------------------------------------------------

Issued: 1/16/90
                                    Issued By:
Effective: 1/16/90              Austin W. Stedham
                                    President
Advice No.: 292-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       1 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada               4th Revised    P.S.C.N. Sheet No. 67D
Tariff No. Electric  No. 1      Cancelling 3rd Revised    P.S.C.N. Sheet No. 67D

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS

                              FIRM STANDBY SERVICE

                     COGENERATION AND SMALL POWER PRODUCTION

APPLICABILITY

     Service hereunder is applicable to any Customer where all or part of the
electrical requirements can be supplied from a cogeneration or small power
production source which meets the criteria for a Qualifying Facility set forth
in Subpart B, Sections 292.201-292.207 of the FERC rules (45 Fed. Reg. 17959),
and which service is elected by the Customer to be billed under the net metering
option described in Rule No. 15, paragraph B.3.a. QFs billed under the seperate
metering option of Rule No. 15, paragraph B.3.b. will be billed under the
appropriate rate schedule for regular service.

     The cogeneration or small power production source may be connected for: (1)
parallel operation with service of Utility, or (2) isolated operation with
standby or breakdown service provided by Utility by means of a double-throw
switch.

     This schedule is limited to Customers having a maximum total demand equal
to or greater than fifty (50) kilowatts and where another schedule is not
specifically applicable.

     This tariff will be effective until changed with the approval of the Public
Service Commission of Nevada in Sierra Pacific Power Company's first electric
general rate case filed after 3/1/91.

TERRITORY

     Entire Nevada service area, as specified.

RATES

     Customer Charge

     Per meter per month:                                                $700.00

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 03/01/91
                                      Issued By:
Effective: 03/01/91              William L. Keepers
                                      President
Advice No.: 298-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       2 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada               4th Revised    P.S.C.N. Sheet No. 67E
Tariff No. Electric  No. 1      Cancelling 3rd Revised    P.S.C.N. Sheet No. 67E

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS

                              FIRM STANDBY SERVICE

                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

RATES (Continued)

     Fixed Standby Demand Charge

        For each kilowatt of contract demand              $3.47

     Additional Variable Demand Charge

        For each kilowatt of maximum total demand
           in excess of the contract demand               $3.47

     Variable Demand Charge

        For each kilowatt of On-Peak billing demand       $3.51
        For each kilowatt of Mid-Peak billing demand      $1.76

     Energy Charge

                                       Base Tariff   Base Tariff       Total
                                      General Rate   Energy Rate   Energy Charge
                                      ------------   -----------   -------------
     Winter
        All On-Peak  kWh, per kWh        $.01358       $.02789        $.04147
        Plus all Mid-Peak kWh,
           per kWh                       $.01138       $.02789        $.03927
        Plus all Off-Peak kWh,
           per kWh                       $.00495       $.02789        $.03284

     Summer
        All On-Peak kWh, per kWh         $.01270       $.02789        $.04059
        Plus all Off-Peak kWh,
           per kWh                       $.00806       $.02789        $.03595

     Deferred Energy Accounting
        Adjustment

        All kWh per kWh
           (02/01/90  - 01/31/91)                                     $.00113

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 9/1/90
                                   Issued By:
Effective: 9/1/90              Austin W. Stedham
                                     President
Advice No.: 301-E
--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       3 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              Original _____ P.S.C.N. Sheet No. 67F
Tariff No. Electric No. 1      Cancelling ______________ P.S.C.N. Sheet No. ___

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS

                              FIRM STANDBY SERVICE

                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

RATES (Continued)

     Power Factor Adjustment

          Credit (or charge) at the rate of $.0014 per kvarh for all actual
          kvarh less than (or greater than) equivalent kvarh at a 90% power
          factor level per Special Condition 5.

     Voltage and Transformer Adjustment

          Where service is delivered directly from a primary distribution or
          transmission system, the Customer, demand and energy charges shall be
          decreased as follows:

                                                       Primary
                                                     Distribution   Transmission
                                                     ------------   ------------
     a.   Where service is metered at or
          compensated to the delivery point              1.25%          7.50%

     b.   Where customer owns and maintains all
          equipment required for transformation
          from the delivery voltage                      1.25%          7.50%

     c.   Where both a) and b) exist                     2.50%         10.00%

     d.   Where neither a) nor b) exist                  None           5.00%

     Late Charge

          1% on any amount in arrears from previous billings.

     Tax Adjustment Charge

          2% of total bill within incorporated area (3/4 of 1% for City of
          Gabbs) or as designated in specific franchise agreements.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 2/6/89
                                    Issued By:
Effective: 2/6/89               Austin W. Stedham
                                    President
Advice No.: 281-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       4 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              Original _____ P.S.C.N. Sheet No. 67G
Tariff No. Electric No. 1      Cancelling ______________ P.S.C.N. Sheet No. ___

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS

                              FIRM STANDBY SERVICE

                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

MINIMUM CHARGE

     The minimum charge for service hereunder shall be the sum of the customer
charge, demand charges, energy charges, deferred energy accounting adjustment,
power factor adjustment, voltage and transformer adjustment, late charge and tax
adjustment charge.

SPECIAL CONDITIONS

     1.   A written contract will be required for service hereunder, for a
          minimum term of not less than five years.

     2.   Determination of Demand: The demand for any billing shall be defined
          as the maximum measured fifteen minute average kilowatt load in the
          billing period. In instances, however, where the use of energy by a
          Customer is intermittent or subject to violent fluctuations, a shorter
          time interval may be used and the demand determined from special
          measurements. At Utility's option, a thermal type of demand meter
          which does not reset after a definite time interval may be used for
          demand measurements.

     3.   Contract Demand: The contract demand for Customers requiring standby
          service for all of their self-generation capacity shall be the
          nameplate capacity, in kW, of connected self-generation capacity for
          which Utility will standby. In the event that measured output from the
          self-generation equipment in any month exceeds the previously
          established contract demand, Utility may revise the contract demand to
          this higher measured amount.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 2/6/89
                                    Issued By:
Effective: 2/6/89               Austin W. Stedham
                                    President
Advice No.: 281-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       5 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              1st Revised     P.S.C.N. Sheet No. 67H
Tariff No. Electric No. 1      Cancelling Original        P.S.C.N. Sheet No. 67H

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS

                              FIRM STANDBY SERVICE

                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

SPECIAL CONDITIONS (Continued)

          The contract demand for Customers requiring standby service for less
          than all of their self-generation capacity shall be the maximum load
          that the Customer is expected to place on the Utility's system under
          normal standby operating conditions, as determined by the Utility at
          the time the service contract is written or at such time as the
          Utility becomes aware that normal standby operating conditions have
          changed.

     4.   Maximum Total Demand: The maximum total demand for any billing period
          shall be the maximum (over the fifteen minute metering intervals) of
          the sum of metered demand for service provided by the Utility and the
          metered coincident output of the customer's self-generation equipment,
          less the Customer's coincident metered deliveries to the Utility.

     5.   On-Peak Billing Demand: The billing demand hereunder for any billing
          period shall be the greater of the current period's maximum metered
          demand for service provided by the Utility during the on-peak period;
          or twenty-five percent (25%) of the highest metered demand during the
          on-peak billing period established by the Customer during the
          preceding eleven (11) months. Demands imposed on the Utility's system
          during periods of scheduled maintenance arranged at the convenience of
          and with the approval of the Utility, will not be considered in
          determining the billing demand applicable to the assessment of
          generation and transmission demand charges.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 03/01/91
                                    Issued By:
Effective: 03/01/91             William L. Keepers
                                    President

Advice No.: 298-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       6 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              Original       P.S.C.N. Sheet No. 67I
Tariff No. Electric No. 1      Cancelling ____________   P.S.C.N. Sheet No. ___

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS

                              FIRM STANDBY SERVICE

                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

SPECIAL CONDITIONS (Continued)

     6.   Mid-Peak Billing Demand: The billing demand hereunder for any billing
          period shall be the current period's maximum metered demand for
          service provided by the Utility during the mid-peak period. Demands
          imposed on the Utility's system during periods of scheduled
          maintenance arranged at the convenience of and with the approval of
          the Utility, will not be considered in determining the billing demand
          applicable to the assessment of generation and transmission demand
          charges.

     7.   When service is initiated under this schedule, the Customer charge
          will be established on the basis of the Utility's estimate of the
          Customer's highest monthly maximum total demand. If, in any month, the
          Customer's maximum total demand equals or exceeds 1,000 kW, the
          Customer will be billed the Customer charge for that level of service
          until twelve (12) consecutive months are experienced with the
          Customer's maximum total demand less than 1,000 kW.

     8.   The power factor adjustment shall be at a rate of $.0014 per kvarh.
          The rate shall be applied to the difference between actual kvarh and
          the kvarh equivalent to a ninety percent (90%) power factor level. If
          the actual kvarh are greater than kvarh equivalent to a ninety percent
          (90%) power factor, then the adjustment shall be a charge to the
          Customer. If the actual kvarh are less than kvarh equivalent to a
          ninety percent (90%) power factor, then the adjustment shall be a
          credit to the Customer. Kvarh equivalent to a 90% power factor level
          shall be estimated as .484 times total billed killowatthours during
          the billing period.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 2/6/89
                                   Issued By:
Effective: 2/6/89               Austin W. Stedham
                                    President
Advice No.: 281-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       7 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              1st Revised    P.S.C.N. Sheet No. 67J
Tariff No. Electric No. 1      Cancelling Original       P.S.C.N. Sheet No. 67J

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS
                              FIRM STANDBY SERVICE
                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

SPECIAL CONDITIONS (Continued)

     9.   Utility retains the right to change its line voltage at any time,
          after reasonable advance notice to any Customer receiving a voltage
          and transformer adjustment. Such Customer then has the option to
          change his system so as to receive service at the new line voltage or
          to accept service (without discount) through transformers to be
          supplied by Utility.

     10.  Daily time periods will be based on Pacific Standard time and are
          defined as follows:

          Winter Period   On-Peak    5:01 p.m. to 10:00  p.m. daily
                          Mid-Peak   7:00 a.m. to 5:00 p.m. daily
                          Off-Peak   All Other Hours

          Summer Period   On-Peak    10:01 a.m. to 10:00 p.m. daily
                          Off-Peak   All Other Hours

          The winter period will consist of eight regularly scheduled billing
          periods for service provided in the months of October through May. The
          summer period will consist of four regularly scheduled billing periods
          for service provided in the months of June through September.

     11.  Included in the Energy Charge is a base unit energy cost as defined in
          General Order No. 21 and fully described on Schedule No. DEAA.

     12.  Included in the Base Tariff General Rate is $(.00007) per kilowatthour
          ($.00013 base rate and ($.00020) amortization rate) for recovery of
          expenses incurred in developing a plan for resources pursuant to NRS
          704.751.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 04/01/90
                                      Issued By:
Effective: 04/01/90               Austin W. Stedham
                                      President
Advice No.: 297-E

--------------------------------------------------------------------------------

                                                                       EXHIBIT I
                                                                       8 of 8

SIERRA PACIFIC POWER COMPANY
6100 Neil Road, Reno, Nevada              Original       P.S.C.N. Sheet No. 67K
Tariff No. Electric No. 1      Cancelling ____________   P.S.C.N. Sheet No. ___

--------------------------------------------------------------------------------

                          EXPERIMENTAL SCHEDULE NO. FSS
                              FIRM STANDBY SERVICE
                     COGENERATION AND SMALL POWER PRODUCTION
                                   (Continued)

SPECIAL CONDITIONS (Continued)

     13.  Service hereunder is subject to the provisions of Rule No. 15.

     14.  The Customer will pay all costs of interconnection with the Utility,
          beyond the cost of the meter and service drop appropriate for the
          Customer in the absence of self-generation equipment. The Utility will
          install separate metering of the Customer's self-generating equipment
          at the Customer's expense. The Customer will furnish, install, and
          maintain all switches, sockets, housings, cutouts, and similar devices
          required in connection with the metering of the self-generating
          equipment in a location approved by the Utility, which location shall
          at all reasonable times be accessible for reading, testing, and
          maintaining the meter.

--------------------------------------------------------------------------------

Issued: 2/6/89
                                   Issued By:
Effective: 2/6/89               Austin W. Stedham
                                    President
Advice No.: 281-E

--------------------------------------------------------------------------------

                                                              EXHIBIT J - 1 of 5

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              1st Revised    P.S.C.N. Sheet No. 8
Tariff No. Electric No. __        Cancelling Original       P.S.C.N. Sheet No. 8

--------------------------------------------------------------------------------

                                   Rule No. 2

                             DESCRIPTION OF SERVICE

A.   General

     1.   Service described hereunder may be obtained by any person or agency by
          making application in accordance with Rule No. 3 and, if required, by
          signing a contract in accordance with Rule No. 10. Each Applicant will
          also be required to establish credit in accordance with Rule No. 12.
          Applicant will be informed as to the conditions under which service
          will be established if the requested service requires a Utility
          installation beyond that specified for a service connection in Rule
          No. 16.

     2.   The type of service available at any particular location should be
          ascertained by inquiry at the local Utility office.

     3.   It is the responsibility of the Applicant to ascertain and comply with
          regulations of governmental entities having jurisdictional authority.

     4.   Alternating current service of approximately 60 hertz is regularly
          supplied.

     5.   Voltages referred to in these tariffs are nominal and refer either to
          voltage between energized conductors and ground, or to voltage between
          energized conductors.

B.   Service Delivery Voltages

     1.   The following are standard service voltages, however, not all voltages
          are or can be made available at a given service delivery point:

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 9/21/84
                                    Issued By:
Effective: 9/21/84                Joe L. Gremban
                                     President
Advice No.: 231-E

--------------------------------------------------------------------------------

                                                              EXHIBIT J - 2 of 5

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              1st Revised    P.S.C.N. Sheet No. 9
Tariff No. Electric No. __        Cancelling Original       P.S.C.N. Sheet No. 9

--------------------------------------------------------------------------------

                                   Rule No. 2

                             DESCRIPTION OF SERVICE
                                   (Continued)

B.   Service Delivery Voltages (Continued)

                                                       Transmission
               Distribution Voltages                     Voltages
--------------------------------------------------   ---------------
 Single-Phase       Three-Phase       Three-Phase
  Secondary          Secondary          Primary        Three-Phase
--------------------------------------------------   ---------------
120/240 3-Wire   120/240 4-Wire*    Contact local    Contact local
120/208 3-Wire*  120/208 Y 4-Wire   Utility office   Utility office.
                 277/480 Y 4-Wire

  *Limited availability - subject to Utility approval.

     2.   Voltages greater than 600 volts but less than 25,000 volts are defined
          as primary distribution voltages. Service at primary distribution
          voltages may be available on request subject to Utility approval.

     3.   Voltages of 25,000 volts and above are defined as transmission
          voltages. Service at transmission voltage may be available on request
          subject to Utility approval.

     4.   Where the Applicant desires voltage control within unusually close
          limit beyond that supplied by the Utility in the normal operation of
          its system, the Applicant, at his own expense, is responsible for
          installing, owning, operating, and maintaining any special or
          additional equipment on the load side of the point of delivery.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 9/21/84
                                    Issued By:
Effective: 9/21/84                Joe L. Gremban
                                     President
Advice No.: 231-E

--------------------------------------------------------------------------------

                                                              EXHIBIT J - 3 of 5

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              1st Revised   P.S.C.N. Sheet No. 10
Tariff No. Electric No. __        Cancelling Original      P.S.C.N. Sheet No. 10

--------------------------------------------------------------------------------

                                   Rule No. 2

                             DESCRIPTION OF SERVICE
                                   (Continued)

C.   General Load Limitations

     1.   Single and Three-Phase Secondary Service

                         Service Configuration   Maximum
                         ---------------------    Demand
                           Nominal               -------
                           Voltage     Phase        kW
                         -------------------------------
                           120/240    1(phi)       150
                           120/208    1(phi)       150
                           120/208Y   3(phi)       *
                           120/240    3(phi)       *
                           277/480Y   3(phi)       *

*Contingent upon transformer KVA size limitations

Note: Not all of the above voltages are or can be made available at a given
     service location. It is the responsibility of the Applicant to consult the
     local Utility office to ascertain the service configuration(s) available at
     the location in question.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 9/21/84
                                    Issued By:
Effective: 9/21/84                Joe L. Gremban
                                     President
Advice No.: 231-E

--------------------------------------------------------------------------------

                                                              EXHIBIT J - 4 of 5

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              1st Revised   P.S.C.N. Sheet No. 11
Tariff No. Electric No. 1         Cancelling Original      P.S.C.N. Sheet No. 11

--------------------------------------------------------------------------------

                                   Rule No. 2

                             DESCRIPTION OF SERVICE
                                   (Continued)

C.   General Load Limitations (Continued)

     2.   Load Balance

          A customer's connected load must be balanced as nearly as practicable
          between energized conductors. In no case shall the difference in
          amperage between two energized conductors on a secondary service
          exceed 10 percent or 50 amperes, whichever is greater. The difference
          between the load on a lighting phase of a four-wire delta service and
          the load on the power phases may exceed these limits.

     3.   Protective Devices

          a.   Loads connected to a service shall have sufficient protective
               devices, installed and maintained at the customer's expense, to
               prevent damage to equipment during routine conditions that may
               include sudden loss of voltage, sudden re-energization, opening
               of one or more phases, and voltage or current fluctuations or
               variations.

          b.   It is the responsibility of the customer to furnish, install, and
               maintain at his expense any protective devices necessary to
               coordinate with Utility's protective devices to avoid exposing
               other Utility customers to unnecessary service interruptions.

          c.   The connection and operation of customer owned generation
               facilities in parallel with the Utility's system will be governed
               by the requirements of Rule No. 15.

     4.   Interference With Service

          The customer shall not connect load to his service that introduces
          abnormal currents, voltages, and/or frequencies to the Utility's
          system or to communication facilities, or that interferes with a
          normally acceptable quality of service to any other customer. Upon
          notification by the Utility that one of the above conditions exist,

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 9/21/84
                                    Issued By:
Effective: 9/21/84                Joe L. Gremban
                                     President
Advice No.: 231-E

--------------------------------------------------------------------------------

                                                              EXHIBIT J - 5 of 5

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              1st Revised   P.S.C.N. Sheet No. 12
Tariff No. Electric No. 1         Cancelling Original      P.S.C.N. Sheet No. 12

--------------------------------------------------------------------------------

                                   Rule No. 2

                             DESCRIPTION OF SERVICE
                                   (Continued)

C.   General Load Limitations (Continued)

     4.   Interference With Service (Continued)

          the customer shall either discontinue use of the load causing the
          interference with service or install and maintain, at his expense, the
          corrective measures necessary to reasonably limit the interference
          with service. If the customer fails to take corrective measures in a
          timely manner and continues to use the load causing the interference
          with service, the Utility may terminate service after prior notice in
          accordance with Rule No. 6 of these Rules and Regulations. Customer
          shall contact the local Utility office for maximum allowable motor
          starting currents.

     5.   Power Factor Correction

          The customer shall provide, at his expense, the necessary power factor
          corrective equipment to maintain a power factor of at least 90%
          lagging unless a power factor adjustment is being applied for billing
          purposes in accordance with appropriate rate schedules.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 9/21/84
                                    Issued By:
Effective: 9/21/84                Joe L. Gremban
                                     President
Advice No.: 231-E

--------------------------------------------------------------------------------

                                                              EXHIBIT K - 1 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              3rd Revised   P.S.C.N. Sheet No. 47
Tariff No. Electric No. 1         Cancelling 2nd Revised   P.S.C.N. Sheet No. 47

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)

A.   Applicability

     Under provisions of this rule, the utility will purchase energy or energy
and capacity from qualifying cogenerators and small power production facilities.
These facilities will be allowed to operate in parallel with the utility.

     1.   A Qualifying facility is one that meets the criteria set forth in
          Subpart B, Sections 292.201 - 292.207 of the FERC rules. (45 Fed. Reg.
          17959)

     2.   Parallel generation is defined as a system in which the QF's
          generation can be connected to a bus common with the utility's system.
          Power transfer between the QF's facilities and the utility's system is
          a common result.

B.   BUY-SELL ARRANGEMENT

     1.   Utility will purchase power from qualifying small power production or
          cogeneration facilties at a rate which reflects the cost which
          Utility can avoid as a result of obtaining the power.

     2.   Utility will sell power to qualifying small power production or
          cogeneration facilities based on filed Rate Schedules applicable to
          comparable customers without generation.

     3.   Utility offers two metering options to QF's.

          a.   Netting Generation and Load - Metering Option I

               1.   The QF can choose to have the metering arranged so that
                    Utility purchases the

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 3/20/81
                                    Issued By:
Effective: 3/20/81                Joe L. Gremban
                                     President
Advice No.: 176-E

--------------------------------------------------------------------------------

                                                              EXHIBIT K - 2 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada              4th Revised   P.S.C.N. Sheet No. 48
Tariff No. Electric No.           Cancelling 3rd Revised   P.S.C.N. Sheet No. 48

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)
                                   (Continued)

          a.   Netting Generation and Load - Metering Option I (continued)

               1.   (Continued)
                    net energy which the QF does not use, and so that Utility
                    sells the net energy which the QF does not generate.

               2.   When the QF's generation output is greater than his load,
                    Utility will purchase the excess energy which the QF does
                    not use. The purchase meters will register only the energy
                    which is supplied from the QF's system to Utility's system.

               3.   When the QF's generation output is less than his load,
                    Utility will charge the QF only for the power requirements
                    which are not supplied by the QF's generation. The billing
                    meters will register only the power requirements which are
                    supplied from Utility's system to the QF's system.

               4.   Neither the purchase meters nor the billing meters will be
                    allowed to reverse rotation.

               5.   If the applicable rate schedule requires demand metering the
                    demand meter will register only the demand which is supplied
                    from Utility's system to the QF's system. This demand meter
                    will be used to determine the billing demand and the
                    applicable rate schedule.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 5/4/81

                                   Issued By:
Effective: 5/4/81                Joe L. Gremban
                                    President

Advice No.: 178-E

--------------------------------------------------------------------------------

                                   Appendix C
                                  Page 2 of 7

                                                              EXHIBIT K - 3 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada            3rd Revised   P.S.C.N. Sheet No. 48 A
Tariff No. Electric No.         Cancelling 2nd Revised   P.S.C.N. Sheet No. 48 A

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)
                                   (Continued)

          a.   Netting Generation and Load - Metering Option I (continued)

               5.   (Continued)
                    It is feasible that the QF's generation could reduce his
                    demand enough to move the customer to a different rate
                    schedule.

          b.   Separate Generation and Load - Metering Option II

               1.   The Qualifying Facility can choose to have the metering
                    arranged so that Utility purchases 100% of the QF's
                    generation output, and so that Utility sells 100% of the
                    QF's load requirements.

               2.   The QF's generation and load shall be treated separately and
                    independently. For example, if a cogeneration facility
                    produces 50 KW and consumes 30 KW, it would be treated the
                    same as another qualifying facility that produces 50 KW, and
                    is located next to a factory that uses 30 KW.

               3.   The QF should note that the purchase meter will reverse its
                    rotation if the generator loses power and goes into a
                    motoring state. The Utility may require a reverse power
                    relay to prevent this condition.

C.   INTERCONNECTION COSTS

     1.   The Qualifying Facility shall pay all costs of interconnection with
          the Utility's facilities.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 5/4/81

                                   Issued By:
Effective: 5/4/81                Joe L. Gremban
                                    President

Advice No.: 178-E

--------------------------------------------------------------------------------

                                   Appendix C
                                  Page 3 of 7

                                                              EXHIBIT K - 4 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada            2nd Revised   P.S.C.N. Sheet No. 48 B
Tariff No. Electric No.         Cancelling 1st Revised   P.S.C.N. Sheet No. 48 B

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)
                                   (Continued)

C.   Interconnection Costs - (Continued)

     2.   Utility financing for specified portions of interconnection costs is
          available on an individual contract basis. The contracts will be
          negotiated with each Qualifying Facility and will include, but not be
          limited to, the following terms:

          a.   The Utility will finance only the service drop and metering
               equipment.

          b.   The owner of the Qualifying Facility will be required to execute
               a promissory note in an amount equal to the actual costs of
               construction, bearing interest at the prime rate prevailing at
               the time of execution plus 1%.

          c.   The Utility will require that the debt be secured by property,
               bond, letter of credit, or other adequate security.

          d.   Monthly payment amounts and repayment schedules will be
               determined on a case-by-case basis.

D.   QF DESIGN & OPERATING REQUIREMENTS

     The QF must meet Utility's latest design and operating specifications in
     addition to all national, state, and local construction and safety codes.

     Utility's design and operating specifications are the minimum requirements
     that the QF must meet.

                                   (Continued)

--------------------------------------------------------------------------------

Issued: 10/21/81

                                    Issued By:
Effective: 10/21/81               Joe L. Gremban
                                    President

Advice No.: 189-E

--------------------------------------------------------------------------------

                                   Appendix C
                                   Page 4 of 7

                                                              EXHIBIT K - 5 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada             1st Revised  P.S.C.N. Sheet No. 48 C
Tariff No. Electric No. __       Cancelling Original     P.S.C.N. Sheet No. 48 C

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)
                                   (Continued)

D.   QF DESIGN & OPERATING REQUIREMENTS (Continued)

     These requirements are intended to protect other customers and Utility from
     damage caused by the parallel generation facility.

     These design requirements are not intended to protect the QF's generation
     facility from every possible source of damage. The parallel generation QF
     may wish to install additional protective equipment to protect his
     generation facility.

     1.   All protective device relay settings and all electrical schematics
          must be approved in writing by Utility.

     2.   The QF will purchase, own, operate, and maintain the required
          protective equipment.

     3.   Utility reserves the right to require additional protective equipment
          and safety measures as further experience may dictate.

     4.   The operation of the QF's generation facility must not reduce the
          quality of service to other Utility customers. No abnormal voltages,
          currents, frequencies, or interruptions are permitted.

     5.   The QF will at no time energize a de-energized Utility circuit,
          without the permission and the supervision of Utility personnel.

     6.   The QF shall not bypass any of the protective relays or equipment.

                                   (Continued)

--------------------------------------------------------------------------------

Issued:    5/4/81
                                   Issued By:
Effective: 5/4/81                Joe L. Gremban
                                    President
Advice No.: 178-E

                                                              EXHIBIT K - 6 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada             1st Revised  P.S.C.N. Sheet No. 48 D
Tariff No. Electric No. __       Cancelling Original     P.S.C.N. Sheet No. 48 D

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)
                                   (Continued)

D.   QF DESIGN & OPERATING REQUIREMENTS (Continued)

     7.   The QF is responsible for damage caused to other customers and to
          Utility as a result of mis-operation or malfunction of the QF's
          generation facility or protective equipment.

     8.   Utility is not responsible for damage caused to the QF's facility as a
          result of acts over which Utility has no control.

     9.   Utility is not responsible for damage caused to the QF's facility as a
          result of automatic or manual reclosing.

     10.  The QF is responsible for performing scheduled maintenance on the
          generation facility and the protective equipment to keep the facility
          in proper operating condition. Utility reserves the right to inspect
          the customer's facility to check for a hazardous condition or a lack
          of scheduled maintenance.

     11.  Utility reserves the right to discontinue parallel generation with
          reasonable prior notice for any of the following reasons:

          a.   Utility needs to perform non-emergency maintenance or repair of
               utility facilities.

          b.   The QF's generation reduces the quality of service to other
               customers.

          c.   Inspection of the QF's facility reveals a hazardous condition or
               a lack of scheduled maintenance.

                                   (Continued)

--------------------------------------------------------------------------------

Issued:    5/4/81
                                   Issued By:
Effective: 5/4/81                Joe L. Gremban
                                    President
Advice No.: 178-E

--------------------------------------------------------------------------------

                                   Appendix C
                                  Page 6 of 7

                                                              EXHIBIT K - 7 of 7

SIERRA PACIFIC POWER COMPANY
100 E. Moana Lane, Reno, Nevada             Original     P.S.C.N. Sheet No. 48 E
Tariff No. Electric No. __       Cancelling ________     P.S.C.N. Sheet No. ____

--------------------------------------------------------------------------------

                                   Rule No. 15

                  COGENERATORS AND SMALL POWER PRODUCERS (QF'S)
                                   (Continued)

D.   QF DESIGN & OPERATING REQUIREMENTS (Continued)

     12.  Utility reserves the right to open the main disconnecting device and
          cease parallel generation without prior notice in the event of a
          system emergency.

          a.   The QF is advised that his generation facility must be capable of
               withstanding load rejection of this nature. Utility is not
               responsible for any damage caused to the QF's equipment as a
               result of disconnection from Utility's system.

--------------------------------------------------------------------------------

Issued: 5/4/81
                                   Issued By:
Effective: 5/4/81                Joe L. Gremban
                                    President
Advice No.: 178-E

--------------------------------------------------------------------------------

                                   Appendix C
                                  Page 7 of 7

                                                           EXHIBIT L (1) 1 of 13

--------------------------------------------------------------------------------

                    SMALL POWER PRODUCTION AND CO-GENERATION

                                TABLE OF CONTENTS

      Section                                                           Page No.
      -------                                                           --------
1.0   INTRODUCTION...................................................       1
2.0   BACKGROUND - DEFINITIONS.......................................       2
3.0   POLICY STATEMENT...............................................       3
4.0   METERING ARRANGEMENT...........................................       3
5.0   CUSTOMER DESIGN REQUIREMENTS...................................       5
6.0   CUSTOMER DESIGN RECOMMENDATIONS................................       8
7.0   INDUCTION & SYNCHRONOUS GENERATION DIAGRAMS....................
8.0   CUSTOMER OPERATING REQUIREMENTS................................      11

1.0  INTRODUCTION

     1.1  This document presents Sierra Pacific Power Company's (SPPCo's) policy
          and metering arrangement for the parallel operation of small power
          production and co-generation facilities. In addition, this document
          provides the customer design and operating requirements to be applied
          to a customer owned generation facility of less than 1000 KVA
          generating parallel to SPPCo's system.

     1.2  The Customer Design Requirements and the Customer Operating
          Requirements outline the design specifications, the protective
          equipment, and the operating procedures necessary on the customer's
          part to ensure safe, effective operation of the parallel customer
          generation facility.

[SEAL of S.T.R.C. APPROVED]

----------------------------------------------------------------------------------------------------
CHG   DATE                  DESCRIPTION                   DWN  DSGN  CHKD  APVD
--------------------------------------------------------------------------------

                                                                                     SHEET 1 OF 13
----------------------------------------------------------------------------------------------------
                                                                                   VOL   SECT   PAGE
----------------------------------------------------------------------------------------------------
                                                                                    1    2.2
----------------------------------------------------------------------------------------------------
 1   2/84         Added 1 3  Generation Above 1MW               GWC
----------------------------------------------------------------------------------------------------
     APPROVED BY                           ENGINEERING & CONSTRUCTION STANDARD
-------------------                                                                -----------------
                                         SMALL POWER PRODUCTION & CO-GENERATION
                                        CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------
/s/ Illegible        [SPPCO. LOGO]              FOR PARALLEL GENERATION
-------------------                                                                -----------------
DESIGNED    CHECKED
  GLP                                                                              -----------------
-------------------                          SIERRA PACIFIC POWER CO.                 DRAWING NO.
DRAWN        DATE                                                                      2.2 GN 01
           08/24/81
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 1 of 13

                                                         EXHIBIT L (1) - 2 of 13

--------------------------------------------------------------------------------

     1.3  The customer _____ and operating requirements__ units or groups of
          units owned by one individual totaling 1 MW or greater will be
          reviewed on a case-by-case basis. However, individual units greater
          than 1 MW will be required to have governors. Units or groups of
          smaller units in one location with individual or total aggregate
          capacity greater than 1 MW may require installation of supervisory
          control capability. Units greater than 1 MW and connected directly to
          the transmission system must use synchronous generators with high
          speed excitation controls. Large units connected to the distribution
          system will be reviewed on a case-by-case basis to determine the type
          of generator required.

2.0  BACKGROUND - DEFINITIONS

     2.1  With energy shortages prevailing and gas-oil supplies diminishing, it
          is very important to conserve energy by increasing efficiency, and to
          reduce gas-oil consumption by encouraging the development of
          non-gas-oil types of generation.

     2.2  Small power production and co-generation are two very effective
          methods of conserving energy and reducing gas-oil consumption.

     2.3  Small power production is exotic generation for which the primary
          fuel/energy sources are wind, hydro, solar, biomass, waste, or
          renewable resources. Small power production facilities do not use
          gas-oil fuels as the primary fuel source.

     2.4  Co-generation is the simultaneous production of electricity and useful
          heat in a way that requires less fuel than the separate production of
          electricity and heat. Co-generation facilities sequentially extract
          energy from a thermal process, and produce electricity and useful
          thermal energy. This recovery of waste heat by-products and the
          simultaneous production of two energy products is a more efficient use
          of gas-oil fuels than the separate production of two energy products.

     2.5  The efficiency of small power production and co-generation can be
          maximized, if the customer's generation is connected parallel to the
          utility's system, so that the excess electricity the customer does not
          use is sold to the utility to be used by other customer's.

     2.6  A parallel generation system is designed such that the customer's
          generation can be connected to a bus common with the utility's system.
          Power transfer between the customer's system and the utility's system
          is a common result.

----------------------------------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD     VOL   SECT   PAGE
                                                            -----------------
[SPPCO. LOGO]     SMALL POWER PRODUCTION & CO-GENERATION     1    2.2
                 CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------
                      FOR PARALLEL GENERATION                                   SHEET 2 OF 13
                                                            -----------------   -------------
                      SIERRA PACIFIC POWER CO.
                                                            -----------------    DRAWING NO.
                                                                                   2.2 GN 01
                                                            -----------------

                                                            -----------------
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 2 of 13

                                                         EXHIBIT L (1) - 3 of 13

--------------------------------------------------------------------------------

3.0  POLICY STATEMENT

     3.1  It is SPPCo's policy to encourage the development of small power
          production and co-generation facilities with the intent of reducing
          gas-oil consumption and increasing efficiency.

     3.2  SPPCo allows "qualifying" small power production and co-generation
          facilities to generate parallel to the utility's system, so that the
          customer can reduce his power required from SPPCo, and so that the
          customer can sell his energy to SPPCo.

     3.3  The parallel generation must be safely integrated into SPPCo's system
          without degrading the integrity of the existing system, and without
          economically burdening the existing customers.

     3.4  Safety is the primary concern with parallel customer generation
          because of the distinct possibility of back-feed into the distribution
          system that previously was immune to back-feed safety hazards.

     3.5  SPPCo requires the parallel generation customer to install certain
          protective devices, and requires the customer to operate his facility
          in a manner that will prevent injury to customers and SPPCo personnel,
          and will prevent damage to customer and SPPCo equipment.

     3.6  SPPCo requires the parallel generation customer to assume the
          responsibilities described in this document.

4.0  METERING ARRANGEMENT

     4.1  SPPCo will purchase electricity from qualifying small power production
          or co-generation facilities at a rate that reflects the cost SPPCo can
          avoid as a result of obtaining the electricity.

     4.2  SPPCo will sell electricity to qualifying small power production or
          co-generation facilities based on filed Rate Schedules applicable to
          comparable customers without generation.

     4.3  SPPCo offers two metering options:

          4.3.1 Netting Generation and Load - Metering Option I

               4.3.1.1 The customer can choose to have the metering arranged so
                    that: SPPCo purchases the net energy from the customer's
                    generator that the customer does not use; and SPPCo sells,
                    to the customer, the net energy that the customer uses but
                    does not generate.

----------------------------------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD     VOL   SECT   PAGE
                                                            -----------------
[SPPCO. LOGO]     SMALL POWER PRODUCTION & CO-GENERATION     1    2.2
                 CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------
                      FOR PARALLEL GENERATION                                   SHEET 3 OF 13
                                                            -----------------   -------------
                      SIERRA PACIFIC POWER CO.
                                                            -----------------    DRAWING NO.
                                                                                   2.2 GN 01
                                                            -----------------

                                                            -----------------
--------------------------------------------------------------------------------

                                   Appendix G
                                  Page 3 of 13

                                                         EXHIBIT L (1) - 4 of 13

--------------------------------------------------------------------------------

                4.3.1.2 When the customer's generation output is greater than
                        his load, SPPCo will purchase the excess energy that the
                        customer does not use. The purchase meters will register
                        only the energy supplied from the customer's system to
                        SPPCo's system.

                4.3.1.3 When the customer's generation output is less than his
                        load, SPPCo will charge the customer only for the power
                        requirements that are supplied by SPPCo. The billing
                        meters will register only the power requirements
                        supplied from SPPCo's system to the customer's system.

                4.3.1.4 Both the purchase meters and the billing meters will be
                        uni-directional or not allowed to reverse rotation.

                4.3.1.5 If the applicable rate schedule requires demand
                        metering, the demand meter will register only the demand
                        supplied from SPPCo's system to the customer's system.
                        This demand meter will be used to determine the billing
                        demand and the applicable rate schedule.

                        It is possible that the customer's generation could
                        reduce his demand enough to move the customer to a
                        different rate schedule.

          4.3.2 Separate Generation and Load - Metering Option II

                4.3.2.1 The customer can choose to have the metering arranged so
                        that SPPCo purchases 100% of the customer's generation
                        output, and so that SPPCo sells, to the customer, 100%
                        of his load requirements.

                4.3.2.2 The customer's generation and load shall be treated
                        separately and independently. For example, if a
                        co-generation facility produces 50 KW and consumes 30
                        KW, it would be treated the same as another qualifying
                        facility that produces 50 KW, and is located next to a
                        shop that uses 30 KW.

                4.3.2.3 The customer is not allowed to connect load on the
                        generator side of the purchase meter, other than the
                        minimal load associated with the generator.

----------------------------------------------------------------------------------------------------
[SPPCO. LOGO]     ENGINEERING & CONSTRUCTION STANDARD      VOL   SECT   PAGE
                                                           -----------------
                 SMALL POWER PRODUCTION & CO-GENERATION     1     2.2
                CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------   SHEET 4 OF l3
                         FOR PARALLEL GENERATION                               -------------
                        SIERRA PACIFIC POWER CO.           -----------------    DRAWING NO.
                                                                                 2.2 GN 01
                                                           -----------------
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 4 of 13

                                                         EXHIBIT L (1) - 5 of 13

--------------------------------------------------------------------------------

                        The customer should note that the purchase meter will be
                        bi-directional. The purchase meter will reverse its
                        rotation if the customer's generator loses power and
                        goes into a motoring state or in any way places a load
                        on the line. SPPCo may require a reverse power relay
                        to prevent bi-directional powerflow or may require
                        additional metering.

5.0  CUSTOMER DESIGN REQUIREMENTS

     This section provides the minimum design specifications that the customer's
     generation facility must meet, and specifies the minimum protective
     equipment that the customer's generation facility must have installed.

     The design specifications and protective equipment listed are intended to
     protect other customers and SPPCo from damage that could be caused by the
     parallel generation facility.

     These requirements are not intended to protect the customer's generation
     facility from every possible source of damage. The parallel generation
     customer may wish to install additional protective equipment to protect his
     generation facility.

     5.1  Applicable Codes - The customer's installation must meet all
          applicable national, state, and local construction and safety codes.

     5.2  Relay Settings - Electrical Schematics Approval - All protective
          device relay settings and all electrical schematics must be approved
          in writing by SPPCo.

     5.3  Customer Responsibilities - The customer will purchase, own, operate,
          and maintain the required protective equipment.

     5.4  Additional Protective Equipment - SPPCo reserves the right to require
          additional protective equipment and safety measures as further
          experience may dictate.

     5.5  Synchronous and Induction Generation - Capacity less than 100 KVA

          5.5.1 Full Load Rejection - The customer's generation facility must be
                designed with the capability or protection to withstand sudden
                loss of load.

          5.5.2 De-energized SPPCo Circuit - Electrical relays must be provided
                to prevent the customer's generator from being connected
                parallel to SPPCo's system if SPPCo's system is de-energized.

----------------------------------------------------------------------------------------------------
[SPPCO. LOGO]     ENGINEERING & CONSTRUCTION STANDARD      VOL   SECT   PAGE
                                                           -----------------
                 SMALL POWER PRODUCTION & CO-GENERATION     1     2.2
                CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------   SHEET 5 OF l3
                         FOR PARALLEL GENERATION                               -------------
                        SIERRA PACIFIC POWER CO.           -----------------    DRAWING NO.
                                                                                 2.2 GN 01
                                                           -----------------
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 5 of 13

                                                         EXHIBIT L (1) - 6 of 13

--------------------------------------------------------------------------------

          5.5.3 Generator Circuit Breaker - The generator must have a generator
                circuit breaker capable of interrupting the maximum anticipated
                fault current and isolating the customer's generation from
                SPPCo's system. The generator circuit breaker must be equipped
                with thermal-magnetic overcurrent or equivalent devices on each
                phase.

                The generator circuit breaker must be grouped with the main
                service disconnects, readily accessible, and nearest the point
                of entrance of the service-entrance conductors as specified in
                the NEC 230-72.

                The generator circuit breaker or enclosure must be capable of
                being locked and/or sealed by SPPCo personnel to physically
                prevent closing the circuit breaker when SPPCo personnel are
                working on the line.

          5.5.4 Voltage Sensing Location - The voltage sensing location for the
                protective relays must be on the SPPCo side of any customer
                operated disconnect (see sheets 8-9).

          5.5.5 Overcurrent Protection - Phase overcurrent protection is
                required to protect the generator from fault current and
                overload current. Ground overcurrent protection is required, if
                applicable.

          5.5.6 Over/Under Voltage Protection - Overvoltage and under-voltage
                protection is required. Time delay is recommended on the voltage
                relays.

          5.5.7 Underfrequency Protection - Underfrequency protection without
                time delay is required. Overfrequency protection may be
                required.

          5.5.8 Loss-of-Phase Protection - Negative sequence current or
                loss-of-phase protection is required on three phase generators.
                The customer is responsible for protecting his generator, from
                negative sequence currents that could overload and severely
                damage the customer's generator. Negative sequence currents will
                occur during single phasing conditions on SPPCo's system.

          5.5.9 Sychronizing Equipment - Synchronous generators require
                synchronizing equipment to be provided at the main, generator,
                and other breakers as necessary. The generator must be
                brought on-line parallel to SPPCo's system by one of the
                following methods:

                5.5.9.1 Automatic synchronizing.

----------------------------------------------------------------------------------------------------
[SPPCO. LOGO]     ENGINEERING & CONSTRUCTION STANDARD      VOL   SECT   PAGE
                                                           -----------------
                 SMALL POWER PRODUCTION & CO-GENERATION     1     2.2
                CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------   SHEET 6 OF l3
                         FOR PARALLEL GENERATION                               -------------
                        SIERRA PACIFIC POWER CO.           -----------------    DRAWING NO.
                                                                                 2.2 GN 01
                                                           -----------------
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 6 of 13

                                                         EXHIBIT L (1) - 7 of 13

--------------------------------------------------------------------------------

               5.5.9.2 Manual synchronizing - note that a synchronizing check
                    relay is also required with manual synchronizing to protect
                    the customer's generator from excessive transient torques
                    that could damage the customer's equipment.

               5.5.9.3 Induction starting - provided that the inrush current
                    does not cause voltage flickers on SPPCo's system greater
                    than 4%.

          5.5.10 Voltage Regulation Equipment - Synchronous generators require
               voltage regulation equipment to maintain the Customer's service
               voltage within 5% above or below nominal service voltage (i.e.
               120 volts +/- 6 volts). Customers in California are required to
               maintain their service voltage in accordance with the
               Conservation Voltage Reduction Program (e.g. 114 volts to 120
               volts).

          5.5.11 Primary Voltage Changes - The generator exciter system and
               voltage regulation equipment on synchronous generators must be
               capable of operating subject to normal primary voltage changes on
               SPPCo's system ranging from 5% above or below nominal primary
               voltage (e.g. 24.9 KV +/- 5%).

     5.6  Synchronous and Induction Generation: Capacity 100 KVA - 1000 KVA

          The requirements described in section 5.0 also apply to 100 KVA to
          1000 KVA generation.

          5.6.1 Overfrequency Protection - Overfrequency in addition to
               underfrequency protection is required. Frequency protection shall
               not have time delay.

          5.6.2 Power Factor Correction - Power factor correction could be
               required at SPPCo's option on induction generators greater than
               100 KVA.

     5.7  D.C. Generation With Inverter

          5.7.1 All requirements listed for synchronous generators shall apply
               to d.c. generator/inverter combinations with the following
               exceptions:

               5.7.1.1 The power factor shall be within the range of 0.9 lagging
                    to 0.9 leading over the full range of power output.

               5.7.1.2 The synchronizing check relay is not required on line
                    commutated inverters that derive their wave-form and
                    frequency from SPPCo's signal.

----------------------------------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD     VOL   SECT   PAGE
                                                            -----------------
[SPPCO. LOGO]     SMALL POWER PRODUCTION & CO-GENERATION     1    2.2
                 CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------
                          FOR PARALLEL GENERATION                               SHEET 7 OF 13
                                                            -----------------   -------------
                          SIERRA PACIFIC POWER CO.
                                                            -----------------    DRAWING NO.
                                                                                  2.2 GN 01
                                                            -----------------

                                                            -----------------
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 7 of 13

                                                         EXHIBIT L (1) - 8 of 13

--------------------------------------------------------------------------------

               5.7.1.3 See section H-6.0 for harmonic voltage and current
                    operating requirements.

6.0  CUSTOMER DESIGN RECOMMENDATIONS

     This section provides recommended protection that the customer should
     consider adding to the generation facility. Aqain, the previous minimum
     design requirements are not intended to protect the customer's generation
     facility from every possible source of damage.

     Additional equipment beyond the minimum required and recommended protection
     may be desired to fully protect the customer's generation facility.

     6.1  Over/Under-Speed Protection - Overspeed and underspeed protection are
          recommended.

     6.2  Reverse Power Protection - Anti-motoring or reverse power protection
          is recommended. A lack of sufficient power at the prime mover will
          cause the customer's generator to motor instead of generate. This
          condition can be very costly to the customer.

     6.3  Impedance Neutral Grounding - Impedance neutral grounding is
          recommended.

     6.4  Voltage Surge Protection - Voltage surge protection is recommended.

     6.5  Generator Differential Protection - Generator differential protection
          is recommended.

     6.6  Loss of Excitation Protection - Loss of excitation protection is
          recommended.

     6.7  Unity Power Factor - It is recommended that synchronous generators be
          set to hold near-unity power factor.

     6.8  Relay Targets - Targets or devices that indicate the operation and
          status of a relay are recommended. Targets are very important to
          troubleshooting the generation facility.

7.0  INDUCTION AND SYNCHRONOUS GENERATION DIAGRAMS

     Typical one-line diagrams illustrating the required equipment for both
     synchronous and induction generators follow. Variations to these designs
     are acceptable provided the intent of this section is met, and provided the
     design is reviewed and approved in writing by SPPCo.

----------------------------------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD     VOL   SECT   PAGE
                                                            -----------------
[SPPCO. LOGO]     SMALL POWER PRODUCTION & CO-GENERATION     1    2.2
                 CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------
                         FOR PARALLEL GENERATION                                SHEET 8 OF 13
                                                            -----------------   -------------
                         SIERRA PACIFIC POWER CO.
                                                            -----------------    DRAWING NO.
                                                                                  2.2 GN 01
                                                            -----------------

                                                            -----------------
----------------------------------------------------------------------------------------------------

                                                         EXHIBIT L (1) - 9 of 13

--------------------------------------------------------------------------------

              INDULTION GENERATION LESS THAN kVA - ONE LINE DIAGRAM
              -----------------------------------------------------

[GRAPHIC]

(27) Undervoltage
(50) Instantaneous phase overcurrent
(51) Time phase overcurrent
(50N) Instantaneous neutral overcurrent
(51N) Time neutral overcurrent
(59) Overvoltage
(81) Underfrequency/overfrequency*
(86) Lockout relay

CUSTOMER REQUIREMENTS
A) Full load rejection
B) Generator circuit breaker**
C) Prevention from energizing a de-energized SPPCo. circuit
D) Phase overcurrent protection: fault current and overload current
E) Ground overcurrent protection (if applicable)
F) Overvoltage and undervoltage protection
G) Underfrequency protection
H) Overfrequency protection*
I) Power factor correction on generators greater than 100 kVA at SPPCo.'s option
J) Negative sequence current protection

SPPCo. REQUIREMENTS
A) Dedicated distribution transformer
B) SPPCo disconnect switch

RECOMMENDED PROTECTION
A) Impedance neutral grounding
B) Voltage surge protection
C) Anti-motoring protection
D) Generator differential protection*
E) Overspeed and underspeed protection

*    Generators 100 kVA - 1000 kVA only

**   Must be grouped with main disconnects, readily accessible, and nearest
     point of entrance of service-entrance conductors. NEC 230-72. Must be
     capable of being locked and/or sealed by SPPCo personnel.

***  Voltage sensing location must be on SPPCo side of any customer disconnect.

-----------------------------------------------------------------------------------------------------------------------------------

                                                  APPRV'D BY                   ENGINEERING STANDARD              SHT. 9 OF 13
---------------------------------------------        STRC                                                        ------------------
                                                 /s/ Illegible       CUSTOMER DESIGN AND OPERATING REQUIREMENTS  CHANGE 1
--------------------------------------------------------------------          FOR PARALLEL GENERATION            ------------------
                                                DRAWN BY                                                         DRAWING NO.
---------------------------------------------                                                                    2.2 GN 01
                                                J. OWNES
--------------------------------------------------------------------
1     ADDED PAR 1.3   2/84   ___   __________   ENGINEER
---------------------------------------------
CH_   DESCRIPTION     DATE   ENG   APPRV'D      G. PORTER            RENO SIERRA PACIFIC POWER CO. NEVADA
-----------------------------------------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 9 of 13

--------------------------------------------------------------------------------

                                                        EXHIBIT L (1) - 10 OF 13

--------------------------------------------------------------------------------

                   SYNCHRONOUS GENERATION LESS THAN 1000 kVA
                                ONE LINE DIAGRAM

                                    [GRAPHIC]

                                                         [SEAL OF] STRC APPROVED

(25)  Synchronizing, synchrocheck, deadline
(27)  Undervoltage
(50)  Instantaneous phase overcurrent
(51)  Time phase overcurrent
(50N) Instantaneous neutral overcurrent
(51N) Time neutral overcurrent
(59)  Overvoltage
(81)  Underfrequency/overfrequency*
(86)  Lockout relay

CUSTOMER REQUIREMENTS

A)   Full load rejection
B)   Generator circuit breaker**
C)   Prevention from energizing a de-energized SPPCo. circuit
D)   Phase overcurrent protection: fault current and overload current
E)   Ground overcurrent protection (if applicable)
F)   Overvoltage and undervoltage protection
G)   Underfrequency protection
H)   Overfrequency protection*
I)   Synchronizing equipment, synchrocheck relay required with manual
     synchronizing
J)   Voltage regulation
K)   Negative sequence current protection

SPPCo. REQUIREMENTS

A)   Dedicated distribution transformer
B)   SPPCo disconnect switch

RECOMMENDED PROTECTION

A)   Impedance neutral grounding
B)   Voltage surge protection
C)   Anti-motoring protection
D)   Generator differential protection*
E)   Loss of excitation protection*
F)   Overspeed and underspeed protection

*    Generators 100 kVA - 1000 kVA only

**   Must be grouped with main disconnects, readily accessible, and nearest
     point of entrance of service-entrance conductors. NEC 230-72. Must be
     capable of being locked and/or sealed by SPPCo personnel.

***  Voltage sensing location must be on SPPCo side of any customer disconnect.

-----------------------------------------------------------------------------------------------------------------------------

                                                    APPRV'D BY                ENGINEERING STANDARD              SHT. 10 OF 13
-----------------------------------------------        STRC                                                     -------------
                                                    ILLEGIBLE      CUSTOMER DESIGN AND OPERATING REQUIREMENTS   CHANGE 1
-------------------------------------------------------------------          FOR PARALLEL GENERATION            -------------
                                                     DRAWN BY                                                    DRAWING NO.
-----------------------------------------------                                                                  2.2 GN 01
                                                      J.OWNES
-------------------------------------------------------------------
1     ADDED PAR 1.3   2/84   ___   ILLEGIBLE         ENGINEER
-----------------------------------------------
CHG   DESCRIPTION     DATE   ENG    APPRV'D          G. PORTER     RENO SIERRA PACIFIC POWER CO. NEVADA
-----------------------------------------------------------------------------------------------------------------------------

                                   Appendix G
                                  Page 10 of 13

                                                        EXHIBIT L (1) - 11 of 13

--------------------------------------------------------------------------------

     8.0  CUSTOMER OPERATING REQUIREMENTS

          This section provides the operating requirements that the customer
          must follow, and the responsibilities that the customer must assume
          for operating his generation parallel to SPPCo's system.

          8.1  Quality of Service - The operation of the customer's generation
               facility must not reduce the quality of service to other SPPCo
               customers. No abnormal voltages, currents, frequencies, or
               interruptions are permitted.

          8.2  De-energized SPPCo Circuit - The customer will at no time
               energize a de-energized SPPCo circuit, without the permission and
               the supervision of SPPCo personnel.

          8.3  Bypassing Relays - The customer shall not bypass any of the
               protective relays or equipment.

          8.4  Inhibited Parallel Operation - If while operating parallel to
               SPPCo's system, or while attempting to bring the generating
               system on-line and operate parallel to SPPCo's system, any of the
               protective relays or devices operate inhibiting parallel
               operation, the customer will follow these procedures prior to
               attempting parallel operation with SPPCo again:

               8.4.1 Determine if SPPCo's circuit is energized or de-energized
                    by checking the status of the relays described in Section
                    E-5.2 and/or contacting the local SPPCo office.

               8.4.2 If it is determined that the SPPCo circuit is and has been
                    continuously energized, then the customer will not attempt
                    to reconnect his system parallel to SPPCo's system, until
                    the cause of protective device operation has been corrected,
                    and it has been determined that the customer's system is in
                    proper operating condition.

               8.4.3 If it is determined that the SPPCo circuit is de-energized,
                    the customer must not attempt to reconnect his system and
                    operate parallel with SPPCo's system until he has confirmed
                    that power has been restored and SPPCo's circuit is
                    energized.

               8.4.4 The customer is not prohibited from isolating his system
                    and supplying his own load while SPPCo's circuit is
                    de-energized.

----------------------------------------------------------------------------------------------------
[SPPCo. LOGO]      ENGINEERING & CONSTRUCTION STANDARD     VOL   SECT   PAGE
                                                           -----------------
                 SMALL POWER PRODUCTION & CO-GENERATION     1     2.2
                                                           -----------------
                CUSTOMER DESIGN & OPERATING REQUIREMENTS                       SHEET 11 OF 13
                         FOR PARALLEL GENERATION           -----------------   --------------
                        SIERRA PACIFIC POWER CO.
                                                           -----------------     DRAWING NO.
                                                                                   2.2 GN 01
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                 Page 11 of 13

                                                        EXHIBIT L (1) - 12 of 13

--------------------------------------------------------------------------------

               NOTE The designs and equipment outlined in this document do not
               provide for the customer to isolate his system and supply his own
               load while SPPCo's circuit is de-energized. If the customer
               wishes to do this, he must install additional protective
               equipment subject to a more complex and stringent design. These
               cases will be studied on an individual basis.

     8.5  Automatic Reclosing - The customer is not allowed to automatically
          reclose parallel to SPPCo's system if any of the protective devices
          operate.

          However, if the customer ceases parallel operation with SPPCo because
          of an anti-motoring operation or lack of applicable power source
          (wind, water, etc.), the customer is allowed to automatically reclose
          parallel to SPPCo system when the energy source resumes to sufficient
          amounts.

          The distinctions between disallowing or allowing automatic reclosing
          are:

          8.5.1 Automatic reclosing is disallowed if parallel operation has been
                ceased due to an abnormal or dangerous condition (fault current,
                overloads, over or under voltage, over or under frequency).

          8.5.2 Automatic reclosing is allowed if parallel operation has been
                ceased due to a lack of sufficient power to the prime mover
                (lack of wind, water, etc.).

     8.6  Harmonics - The customer's generation facility shall not cause
          excessive distortion of the sinusoidal voltage wave. The maximum
          allowable total root-mean-square (RMS) harmonic current is 5% of the
          fundamental 60 Hz RMS current. The maximum allowable total RMS
          harmonic voltage (all harmonics) is 2% of the nominal AC voltage. In
          addition, the RMS voltage of any single voltage harmonic shall not
          exceed 1%.

     8.7  Damage to Other Customers - The customer is responsible for damage
          caused to other customers and to SPPCo as a result of misoperating or
          malfunction of his generation facility or protective equipment.

     8.8  Damage to Generation Customer - SPPCo is not responsible for damage
          caused to the customer's facility as a result of acts over which SPPCo
          has no control.

     8.9  SPPCo Automatic Reclosing - SPPCo is not responsible for damage caused
          to the customer's facility as a result of SPPCo automatic or manual
          reclosing.

----------------------------------------------------------------------------------------------------
[SPPCo. LOGO]                                              VOL   SECT   PAGE
                   ENGINEERING & CONSTRUCTION STANDARD     -----------------
                                                            1     2.2
                 SMALL POWER PRODUCTION & CO-GENERATION    -----------------
                CUSTOMER DESIGN & OPERATING REQUIREMENTS                       SHEET 12 OF 13
                         FOR PARALLEL GENERATION           -----------------   --------------
                        SIERRA PACIFIC POWER CO.
                                                                                 DRAWING NO.
                                                                                  2.2 GN 01
----------------------------------------------------------------------------------------------------

                                   Appendix G
                                 Page 12 of 13

                                                        EXHIBIT L (1) - 13 of 13

--------------------------------------------------------------------------------
                                  ****WARNING****

          RECLOSING CAN CAUSE LOSS OF SYNCHRONISM BETWEEN THE CUSTOMER'S SYSTEM
          AND SIERRA'S SYSTEM, THAT CAN IN TURN SEVERELY DAMAGE THE CUSTOMER'S
          EQUIPMENT

          8.9.1 If feasible, and at the customer's option and expense,
               communications between the customer's circuit breaker and SPPCo's
               circuit breaker can be provided to reduce the risk of
               out-of-synchronism damage. Other measures for protection can be
               considered and implemented if feasible.

     8.10 Scheduled Maintenance and Testing - The customer is responsible for
          performing scheduled maintenance and testing on the generation
          facility and the protective equipment to keep the facility in proper
          operating condition. SPPCo reserves the right to inspect the
          customer's facility to check for a hazardous condition or a lack of
          scheduled maintenance or testing.

     8.11 Discontinue Parallel Generation With Notice - SPPCo reserves the right
          to discontinue parallel generation with reasonable prior notice for
          any of the following reasons:

          8.11.1 SPPCo will be performing non-emergency maintenance or repair of
               utility facilities.

          8.11.2 The customer's generation reduces the quality of service to
               other customers.

          8.11.3. Inspection of the customer's facility reveals a lack
               of scheduled maintenance or testing.

     8.12 Discontinue Parallel Generation Without Notice - SPPCo reserves the
          right to open the main disconnecting device and cease parallel
          generation without prior notice in the event of a system emergency or
          hazardous condition.

          8.12.1 The customer is advised that his generation facility must be
               capable of withstanding load rejection of this nature. SPPCo is
               not responsible for any damage caused to the customer's equipment
               as a result of disconnection from SPPCo's system.

--------------------------------------------------------------------------------
                   ENGINEERING & CONSTRUCTION STANDARD     VOL   SECT   PAGE
                                                           -----------------
[SPPCO. LOGO]    SMALL POWER PRODUCTION & CO-GENERATION     1    2.2
                CUSTOMER DESIGN & OPERATING REQUIREMENTS   -----------------
                         FOR PARALLEL GENERATION                               SHEET 13 OF 13
                                                           -----------------   --------------
                         SIERRA PACIFIC POWER CO.
                                                           -----------------     DRAWING NO.
                                                                                  2.2 GN 01
                                                           -----------------

                                                           -----------------
--------------------------------------------------------------------------------

                                   Appendix G
                                 Page 13 of 13

                                                         EXHIBIT L (2) - 1 of 12

--------------------------------------------------------------------------------
      SMALL POWER PRODUCTION AND COGENERATION PLANNING AND DESIGN CRITERIA

                    FOR GENERATION GREATER THAN ONE MEGAWATT*

                                TABLE OF CONTENTS

      Section                                                           Page No.
      -------                                                           --------
1.0   APPLICATION AND POLICY ........................................       2

2.0   CONTRACT INFORMATION ..........................................       3

3.0   INTERCONNECTION AND TRANSIENT STUDY REQUIREMENTS ..............       4

4.0   METERING ......................................................       6

5.0   DESIGN  REQUIREMENTS  AND   SPECIFICATIONS ....................       7

*    Design criteria for qualifying facilities whose output is less than one
     megawatt are specified in SPPCo. Engineering Standard 2.2 GW 01.

--------------------------------------------------------------------------------------------
CHG  DATE              DESCRIPTION                DWN  DSGN  CHKD  APVD
------------------------------------------------------------------------

                                                                             SHEET 1 of __
--------------------------------------------------------------------------------------------
                                                                           VOL   SECT   PAGE
--------------------------------------------------------------------------------------------
                                                                            1    2.2
--------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------
     APPROVED BY                     ENGINEERING & CONSTRUCTION STANDARD
-------------------                        SMALL POWER PRODUCTION          -----------------
/s/ Illegible        [SPPCO. LOGO]    AND CO. GENERATION FOR GENERATION
-------------------                        GREATER THAN ONE MEGAWATT       -----------------
DESIGNED    CHECKED
  T.B.        B.B.                                                         -----------------
-------------------                         SIERRA PACIFIC POWER CO.           DRAWING NO.
DRAWN        DATE
           ________
--------------------------------------------------------------------------------------------

                                   Appendix H
                                     Page 1

                                                         EXHIBIT L (2) - 2 of 12

--------------------------------------------------------------------------------
1.0   APPLICATION AND POLICY

     1.1  Application

          The purpose of this standard is to present the planning and design
          requirements which all customer-owned qualifying power production
          facilities (QF) must meet or exceed prior to parallel operation with
          Sierra Pacific Power Company's (SPPCo.'s) electric system. This
          document applies to all customer-owned qualifying power production
          facilities whose gross aggregate output exceeds one megawatt (1 MW).

          The QF Developer and SPPCo. personnel are to use this document when
          planning installations of QF generation. It is emphasized that these
          requirements are general and may not cover all details in specific
          cases. The QF Developer should review project plans with SPPCo. before
          purchasing or installing equipment.

          The abbreviations QF for customer-owned qualified power production
          facility and SPPCo. for Sierra Pacific Power Company will be used for
          the remainder of this standard.

     1.2  QF Definition

          A qualifying facility is one that meets the criteria set forth in
          Subpart 13, Section 202.201-292.207 of the FERC rules.

     1.3  Policy Statements

          o    Under provisions of SPPCo. Rule No. 15, in Nevada, and Rule No.
               21, in California, submitted to and approved by the appropriate
               regulatory agency SPPCo. will purchase energy or energy and
               capacity from qualifying facilities.

          o    QF generation will be integrated into SPPCo.'s electric system in
               a manner that will not adversely impact the quality of service to
               customers or cause adverse impacts to personnel or existing
               equipment.

          o    The QF will be required to operate in a prudent manner that will
               not result in injury to customers or SPPCo. personnel nor cause
               damage to customer or SPPCo. equipment.

--------------------------------------------------------------------------------
                ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                      -----------------
[SPPCO. LOGO]          SMALL POWER PRODUCTION          1    2.2
                  AND COGENERATION FOR GENERATION     -----------------
                     GREATER THAN ONE MEGAWATT                            SHEET 2 OF __
                                                      -----------------   -------------
                       SIERRA PACIFIC POWER CO.
                                                      -----------------    DRAWING NO.
                                                                             2.2 GN 02
                                                      -----------------

                                                      -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 2

                                                         EXHIBIT L (2) - 3 of 12

--------------------------------------------------------------------------------
2.0  CONTRACT INFORMATION

     2.1  Initial Contact

          Initial developer contact should be addressed to the Manager of Power
          Contracts Engineering Department at (702) 689-4889. A flow chart
          follows to visually aid the QF Developer in defining coordination
          requirements.

          2.1.1 The QF Developer will be required to submit a written request
               for a power purchase agreement. A description of the project
               (resource or fuel, size of unit(s), net generation, and ultimate
               plant total), the project location (township, range, and
               section), and any other pertinent data should be included.

          2.1.2 From the information provided by the QF Developer, SPPCo. will
               provide an estimate of the cost of an interconnection study, the
               alternatives to be studied, and the approximate interconnection
               cost of each alternative to be studied. SPPCo. will also provide
               a draft power purchase agreement, a data sheet to be completed by
               the QF Developer which supplies project study data, and an
               information request regarding the project.

          2.1.3 Fill out and return "Data Request For Generator Interconnection"
               Form.

---------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                          -----------------
[SPPCO. LOGO]             SMALL POWER PRODUCTION          1     2.2
                      AND COGENERATION FOR GENERATION     -----------------
                         GREATER THAN ONE MEGAWATT                            SHEET 3 OF ___
                                                          -----------------   --------------
                          SIERRA PACIFIC POWER CO.
                                                          -----------------     DRAWING NO.
                                                                                 2.2 GN 02
                                                          -----------------

                                                          -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 3

                                                         EXHIBIT L (2) - 4 of 12

--------------------------------------------------------------------------------
3.0  INTERCONNECTION AND TRANSIENT STUDY REQUIREMENTS

     The interconnection study, which develops requirements and alternatives
     with supporting cost estimates for the required interface facilities, is
     required for all projects. The transient study is required when SPPCo.
     determines that the size and location of the proposed QF may cause
     conditions detrimental to the electric system.

     3.1  Interconnection Study

          The interconnection study examines the steady state effect that the QF
          generation has on SPPCo.'s system. The study is computer based and
          models the QF's generation in SPPCo.'s transmission system.

          The study will determine the optimum interconnection alternative for
          the QF Developer's project and recommend a system that meets SPPCo.'s
          reliability and quality of service standards with the lowest overall
          cost to the QF Developer.

          The following is a list of the information developed in the
          interconnection study for use by the QF and SPPCo.

          o    Analysis of alternatives to determine the least expensive
               connection method that meets SPPCo.'s reliability and quality of
               service standards.

          o    Recommended conductor size for the interconnection line
               determined by using the QF Developer's economic data.

          o    Recommended step-up transformer tap range, settings, and
               winding configuration.

          o    Available fault duty.

          o    Recommended BIL ratings.

          o    Expected maximum and minimum voltages.

          o    Voltage sag and surge for largest motor start and unit drop, and
               define any system modifications to meet SPPCo. sag and surge
               requirements.

          o    Additions to SPPCo.'s electric system required to serve QF
               start-up loads.

          o    Possible source of construction power.

          o    Communications, supervisory control, and telemetering
               requirements.

          o    Metering requirements.

          o    Interconnection protection requirements and/or modifications to
               the existing system.

          o    Transfer trip requirements (if any).

---------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                          -----------------
[SPPCO. LOGO]             SMALL POWER PRODUCTION          1     2.2
                      AND COGENERATION FOR GENERATION     -----------------
                         GREATER THAN ONE MEGAWATT                            SHEET 4 OF ___
                                                          -----------------   --------------
                          SIERRA PACIFIC POWER CO.
                                                          -----------------     DRAWING NO.
                                                                                 2.2 GN 02
                                                          -----------------

                                                          -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 4

                                                         EXHIBIT L (2) - 5 of 12

--------------------------------------------------------------------------------
     o    Frequency and type of utility interruption expected.

     o    System reactive requirements.

     o    System operation considerations.

     o    Special facilities, construction schedule, and equipment lead times.

     o    Average incremental losses.

     o    Potential impacts of QF project on system reliability and quality of
          service to existing QF projects and other customers.

     3.1.1 Attachment 1, Part A is a data sheet detailing the information
          required to perform the interconnection study. The QF Developer shall
          utilize the data sheets to submit the data required for the study.

3.2  Transient Study

     High-speed transients can result in degradation of the quality of service,
     equipment damage, and/or potential safety problems. Transients are not
     reviewed in the interconnection study. The transient study is performed
     using a specifically tailored computer program to determine the nature of
     high-speed transients and to evaluate the corrective actions necessary to
     minimize their effects.

     The necessity for a transient study will be determined after the
     preliminary analysis of the interconnection study. The following relative
     criteria increase the necessity for a transient study.

     o    Strength of the interconnected system.

     o    Location with respect to other customer loads.

     o    Probability of isolation of the QF with other loads.

     o    Size of the QF generator.

     o    Connection of EHV (230 kV and above) system.

     3.2.1 Attachment 1, Part B is a data sheet detailing the information
          required to perform the transient study. The QF Developer shall
          utilize the data sheets to submit the data required for the study.

---------------------------------------------------------------------------
                    ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                          -----------------
[SPPCO. LOGO]             SMALL POWER PRODUCTION          1     2.2
                      AND COGENERATION FOR GENERATION     -----------------
                         GREATER THAN ONE MEGAWATT                            SHEET 5 OF ___
                                                          -----------------   --------------
                          SIERRA PACIFIC POWER CO.
                                                          -----------------     DRAWING NO.
                                                                                 2.2 GN 02
                                                          -----------------

                                                          -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 5

                                                         EXHIBIT L (2) - 6 of 12

--------------------------------------------------------------------------------
4.0  METERING

     4.1  Metering Location

          Metering of capacity and energy purchased from the QF will normally be
          accomplished at the point of delivery. If point-of-delivery metering
          is not practical, metering may be established at other locations.
          Exact location will be determined on a site-specific basis. All
          metering will be compensated to the point of delivery.

     4.2  CT and PT Location

          The QF Developer shall make provisions in their design to include the
          installation of the metering CTs and PTs by SPPCo. The installation
          will be site specific with design approval by SPPCo. The CTs and PTs
          shall be located such that there are no taps prior to their location
          in the circuit when viewed from the SPPCo. system. The CTs and PTs
          will be metering class and will be used for revenue metering only. No
          customer-owned metering and relaying will be allowed in the metering
          circuits.

     4.3  Metering Provisions

          The metering will be confined to a separate enclosure/cubicle that is
          locked and/or sealed by SPPCo. All metering installations shall comply
          with SPPCo.'s metering standard as detailed in SPPCo.'s Standard
          Volume 2.

          SPPCo. will specify, procure, and install, the metering current
          transformers(CTs), potential transformers(PTs), and meter(s).

---------------------------------------------------------------------------
                   ENGINEERING & CONSTRUCTION STANDARD    VOL   SECT   PAGE
                                                          -----------------
                                                          1     2.2
[SPPCO. LOGO]             SMALL POWER PRODUCTION          -----------------
                     AND COGENERATION FOR GENERATION                          SHEET 6 OF ___
                         GREATER THAN ONE MEGAWATT        -----------------   --------------

                         SIERRA PACIFIC POWER CO.         -----------------     DRAWING NO.
                                                                                 2.2 GN 02
                                                          -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 6

                                                         EXHIBIT L (2) - 7 of 12

--------------------------------------------------------------------------------
5.0  DESIGN REQUIREMENTS AND SPECIFICATIONS

     5.1  Interconnection Facility

          SPPCo. will design, procure, and construct at the QF Developer's
          expense an interconnection facility (Point of Delivery), separate from
          the QF, that will isolate the generation from SPPCo.'s system when
          required.

          This facility is not intended to protect the QF Developer's
          generation. SPPCo. recommends consulting the generator manufacturer
          and/or engaging the services of a registered electrical engineer for
          the design of the generator unit protection schemes. Generator unit
          protection is the sole responsibility of the QF Developer.

          Location, ownership, control, and maintenance will be defined in the
          Power Purchase and Facilities contracts.

          5.1.1 Facility Components

               The interconnection facility, as a minimum, will consist of a
               control building, the interrupting and isolating device(s),
               protective control devices, and data-acquisition equipment. All
               the above will be enclosed in a fenced yard with restricted
               access. SPPCo. Standard GI0005T presents the minimum-design
               specifications for substation interconnection facilities. GI0005T
               supplements the following requirements:

               5.1.1.1 The control building will be temperature controlled and
                    weatherproof to enclose the AC and DC power sources; the
                    relaying devices; and the telemetering, supervisory RTU, and
                    communication equipment.

               5.1.1.2 The interrupting device will be a power circuit breaker
                    capable of interrupting maximum available fault current or
                    industry-standard minimum levels, whichever is greater. It
                    shall be connected for SPPCo. supervisory control.

                    If the addition of a line tap and extension to the QF's
                    generation adds any appreciable exposure to the existing
                    transmission/distribution facilities, additional circuit
                    breaker(s) may be required at the tap point to mitigate this
                    exposure.

                    Air-break switches will be installed on each side of the
                    circuit breaker to isolate the breaker for inspection and
                    maintenance purposes. Single-breaker schemes will not
                    include bypass provisions. Where lines terminate on
                    switches, ground blades will be required.

               5.1.1.3 The following protective relays will be installed at the
                    interconnection point (minimum requirement). Typical
                    settings required by SPPCo. are defined below. Sierra will

---------------------------------------------------------------------------
                   ENGINEERING & CONSTRUCTION STANDARD    VOL   SECT   PAGE
                                                          -----------------
                                                          1     2.2
[SPPCO. LOGO]             SMALL POWER PRODUCTION          -----------------
                     AND COGENERATION FOR GENERATION                          SHEET 7 OF ___
                         GREATER THAN ONE MEGAWATT        -----------------   --------------

                         SIERRA PACIFIC POWER CO.         -----------------     DRAWING NO.
                                                                                 2.2 GN 02
                                                          -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 7

                                                         EXHIBIT L (2) - 8 of 12

--------------------------------------------------------------------------------
                    provide site-specific settings prior to interconnection
                    testing.

                    o    Phase and Neutral Overcurrent Relays.

                    o    Over/Undervoltage Relays.

                         Over/undervoltage protection will be set to pick up at
                         +/-111 percent of nominal with a definite time to trip
                         of 3.0 seconds. In addition, the high-speed (0.15
                         second) trip will be initiated if the voltage at the
                         interconnection exceeds 115 percent of nominal.

                    o    Over/Underfrequency Relays.

                         Underfrequency protection will typically be set at 58.0
                         Hz with a time delay of 15 seconds to coordinate with
                         the SPPCo. underfrequency load shedding scheme. The
                         turbine-generator supplied by the QF Developer should
                         be designed to operate at 58.0 Hz for 15 seconds
                         without any loss of life.

                         Overfrequency protection will be set to trip at 61 Hz
                         in three seconds and at 63 Hz in 0.15 seconds.

                    o    Negative Sequence Relay (Loss of Phase).

                         This relay will be set to detect loss of one phase with
                         a generator output down to 20 percent. Tripping time
                         will be dependent upon what other devices must be
                         coordinated with, but a typical value would be
                         three-five seconds.

                    o    Synch-Check Relay.

                         The relay will prevent the circuit breaker from
                         operation under excessive phase-angle differences, and
                         it will limit torques on the QF generator that could
                         damage equipment.

                         Disclaimer - The interconnection protection and
                         settings outlined above are not to be construed as
                         protection of the QF turbine generator. Additional
                         supplementary protection may be required.

               5.1.1.4 A Supervisory Remote Terminal Unit will be installed at
                    the interconnection facility with the necessary interface to
                    connect it to SPPCo.'s communications system. This system
                    will provide telemetering and control.

---------------------------------------------------------------------------
                   ENGINEERING & CONSTRUCTION STANDARD    VOL   SECT   PAGE
                                                          -----------------
                                                          1     2.2
[SPPCO. LOGO]             SMALL POWER PRODUCTION          -----------------
                      AND COGENERATION FOR GENERATION                         SHEET 8 OF ___
                         GREATER THAN ONE MEGAWATT        -----------------   --------------

                          SIERRA PACIFIC POWER CO.        -----------------     DRAWING NO.
                                                                                 2.2 GN 02
                                                          -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 8

                                                           EXHIBIT L (2) 9 of 12

--------------------------------------------------------------------------------
                    The following information will be remotely monitored with
                    the telemetering equipment:

                              o    Watts In/Out

                              o    Vars In/Out

                              o    Amps

                              o    KWHr and KVarHr

                              o    Line Voltage at Interconnection

                              o    Interconnection Breaker Status/Control

     5.2  SPPCo. System Modifications Required to Support the QF

          In addition to the above requirements, replacement or upgrade of
          existing protective device(s) at other locations may be necessary as a
          result of the addition of QF generation. This may include breakers,
          relays, controls, and other protective devices.

          Should the QF's generation have the potential to be isolated with a
          portion of the SPPCo. system such that the connected load is less than
          or equal to the output of the generator, additional protection may be
          required. This protection may consist of additional relaying or may
          entail the design of a complete remedial-action scheme utilizing
          transfer tripping or some other method to minimize potential adverse
          effects caused by the QF. Transient study results will dictate the
          extent of additional protection requirements or operating
          restrictions.

     5.3  Extension Line

          If ownership, by. SPPCo., of the extension line is contemplated by the
          QF Developer, the line must be constructed such that it complies with
          SPPCo.'s design, construction, and material standards. In addition,
          all right-of-way and permits will be reviewed and approved by SPPCo.

          The extension line (transmission or distribution) design will be
          submitted by SPPCo. for review to ensure that the proposed
          installation meets the minimum requirements as specified by SPPCo.
          SPPCo. Standard GI0001T defines the minimum design standards for
          transmission lines, and SPPCo. Standard GEN01T defines the minimum
          standards for distribution lines.

     5.4  Customer Design Requirements

          This section provides the minimum requirements that the QF Developer
          must meet for major equipment, design review, and design
          responsibility.

          5.4.1 Codes - The QF Developer's installation must meet all applicable
               national, state, and local building and safety codes. In
               addition, installations shall comply with the National Electric
               Code, National Electric Safety Code (ANSI C2), and ANSI, IEEE,
               and NEMA standards for electrical materials and equipment.

-----------------------------------------------------------------------
                ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                      -----------------
[SPPCO. LOGO]          SMALL POWER PRODUCTION          1    2.2
                  AND COGENERATION FOR GENERATION     -----------------
                     GREATER THAN ONE MEGAWATT                            SHEET 9 OF ___
                                                      -----------------   --------------
                      SIERRA PACIFIC POWER CO.
                                                      -----------------     DRAWING NO.
                                                                             2.2 GN 02
                                                      -----------------

                                                      -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 9

                                                          EXHIBIT L (2) 10 of 12

--------------------------------------------------------------------------------
          5.4.2 Major Equipment Requirements

               5.4.2.1 Synchronous Generation - Units or groups of smaller units
                    in one location with individual or total aggregate capacity
                    greater than 1 MW must use synchronous generators, with
                    speed-droop governors and high-speed excitation systems.
                    Individual units should have a minimum operating capability
                    of .90 lagging to .95 leading power factor at rated real
                    power output. At times, SPPCo. may require direct or
                    indirect voltage or power factor control of these units to
                    maintain acceptable system operation.

                    Exception:

                    Units or groups of units connected directly to the
                    distribution system (SPPCo.'s 25 kV or below electrical
                    system) must be reviewed for safety, security, and transient
                    response associated with islanding conditions. This review
                    may dictate a requirement for induction rather than
                    synchronous generation. SPPCo. will specify induction or
                    synchronous generation in these cases subsequent to the
                    interconnection/transient studies.

                    5.4.2.1.1 Individual generators 1 MW or larger are required
                         to have speed-droop governors with a permanent droop
                         setting of 5%. While synchronized to SPPCo.'s
                         electrical system, the governor will operate in droop
                         mode and shall not be blocked without prior permission
                         from SPPCo. Separate generation controllers will have
                         to be reviewed and approved before the unit will be
                         allowed to go into service.

                    5.4.2.1.2 Individual generators 1 MW or larger should have
                         excitation systems with operational, continuously
                         acting (IEEE Def. 2.12.1), automatic voltage
                         regulators. Voltage regulators shall not be left in
                         non-automatic operation without prior permission from
                         SPPCo. The voltage response ratio (IEEE Def. 3.18 and
                         3.21) of said systems are required to be .5 or greater.
                         The facility developer/owner must supply SPPCo. with
                         test results documenting the response ratio
                         performance. SPPCo. reserves the right to determine, on
                         an individual basis, whether a generators excitation
                         system is accentable,

                    5.4.2.1.3 Individual generators 1 MW or larger may be
                         required to have a power factor regulator.
                         Determination of this requirement will be performed by
                         SPPCo.

-----------------------------------------------------------------------
                ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                      -----------------
[SPPCO. LOGO]          SMALL POWER PRODUCTION          1    2.2
                  AND COGENERATION FOR GENERATION     -----------------
                     GREATER THAN ONE MEGAWATT                            SHEET 10 OF ___
                                                      -----------------   ---------------
                      SIERRA PACIFIC POWER CO.
                                                      -----------------     DRAWING NO.
                                                                             2.2 GN 02
                                                      -----------------

                                                      -----------------
--------------------------------------------------------------------------------

                                   Appendix H
                                     Page 10

                                                          EXHIBIT L (2) 11 of 12

--------------------------------------------------------------------------------
                    5.4.2.1.4 Individual generators with a capacity less than 75
                         MW may be required to have power system stabilizers
                         installed with their excitation systems. The
                         determination will be performed by SPPCo. and will be
                         dependent on the location of the facility, excitation
                         system type and performance relative to SPPCo.'s
                         electrical network.

                    5.4.2.1.5 Individual generators 75 MW or larger are required
                         to have power system stabilizers (PSS) installed with
                         their excitation systems. The PSS must be calibrated
                         and operated in accordance with Western Systems
                         Coordinating Council (WSCC) standard procedures for
                         calibration, testing, and operation of PSS equipment.
                         In addition, the calibration and test reports must be
                         submitted to SPPCo.'s Transmission Planning Department
                         for review and approval. The facility will not be
                         considered operational until calibration of the PSS has
                         been performed to SPPCo.'s satisfaction. A copy of the
                         WSCC Power System Stabilizer Test Procedures may be
                         obtained from SPPCo.

               5.4.2.2 Power Transformer - All step-up power transformers
                    connected to SPPCo.'s system must have a grounded wye
                    high-voltage winding. It is recommended that the low-voltage
                    winding (generator side) of the step-up transformer be a
                    delta connection. The nominal voltage ratings (high side and
                    BIL) must be compatible with the system voltages on the line
                    to which it is attached. Where low-side metering will be
                    utilized, certified test results detailing the losses of the
                    transformer must be provided to SPPCo.

          5.4.3 It is the responsibility of the QF Developer to incorporate the
               following information into the design of their generation
               facility. The QF Developer should not limit their design to only
               these items.

               5.4.3.1 Full Load Rejection - The QF Developer's generation
                    facility must be designed with the capability or protection
                    to withstand sudden loss of load.

               5.4.3.2 Primary Voltage Changes - The generator exciter system
                    and voltage regulation equipment on synchronous generators
                    must be capable of operating subject to normal primary
                    voltage changes on SPPCo.'s system ranging from 7.5 percent
                    above or below nominal primary voltage to +/-10 percent
                    during emergency conditions. During a disturbance, the
                    voltage may fluctuate beyond the 10 percent range. Equipment
                    that is not capable of withstanding these excursions should
                    be protected.

-----------------------------------------------------------------------
                ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                      -----------------
[SPPCO. LOGO]          SMALL POWER PRODUCTION         1     2.2
                  AND COGENERATION FOR GENERATION     -----------------
                     GREATER THAN ONE MEGAWATT                            SHEET 11 OF ___
                                                      -----------------   ---------------
                      SIERRA PACIFIC POWER CO.
                                                      -----------------     DRAWING NO.
                                                                             2.2 GN 02
                                                      -----------------

                                                      -----------------
--------------------------------------------------------------------------------

                                                        EXHIBIT L (2) - 12 of 12

--------------------------------------------------------------------------------
               5.4.3.3 Harmonics - The QF Developer's generation facility shall
                    not cause unacceptable distortion of the sinusoidal voltage
                    or current wave form. The maximum allowable total harmonic
                    voltage (all harmonics) and current distortion cannot exceed
                    the values published in IEEE Standard 519.

               5.4.3.4 Voltage Sag - Motor starting and switching operations are
                    limited so that the momentary voltage sag (flicker) during
                    motor starting or switching does not exceed 4 percent of the
                    nominal system voltage for any other customers.

     5.5  Proposed Design Review

          The QF Developer shall submit, for SPPCo.'s review, a generation
          facility one-line diagram, approved by a registered professional
          engineer, indicating the QF's protective devices and their functions.
          Current and potential transformer ratios must be included on the
          on-line diagram when required. In addition, protective device types,
          styles, and settings must be provided. The review is intended to
          ensure that the proposed installation meets the minimum requirements
          to protect SPPCo.'s system from misoperations of the generating unit.
          SPPCo. reserves the right to require additional protective equipment
          and safety measures as further experience may dictate.

     5.6  Synchronizing Equipment

          Synchronizing equipment is required for synchronous generators at the
          interconnection, generator, and other breakers as necessary. The
          generator must be brought on-line parallel to SPPCo.'s system by one
          of the following methods:

          5.6.1 Automatic synchronizing.

          5.6.2 Manual synchronizing - A synch-check relay is required to
               supervise manual closing of the generator circuit breaker.

     5.7  QF Telephone requirements

          The QF Developer is required to install a telephone for direct
          communication with SPPCo.'s Electric System Control Center (ESCC). The
          telephone communication between the QF and ESCC shall be delay free.

--------------------------------------------------------------------------------
                ENGINEERING & CONSTRUCTION STANDARD   VOL   SECT   PAGE
                                                      -----------------
[SPPCO. LOGO]          SMALL POWER PRODUCTION          1    2.2
                  AND COGENERATION FOR GENERATION     -----------------
                      GREATER THAN ONE MEGAWATT                            SHEET 12 OF __
                                                      -----------------    --------------
                       SIERRA PACIFIC POWER CO.
                                                      -----------------      DRAWING NO.
                                                                              2.2 GN 02
                                                      -----------------

                                                      -----------------
--------------------------------------------------------------------------------

                                    EXHIBIT M

                   FACILITY WIRING DIAGRAM AND SPECIFICATIONS

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 1 of 8 Pages

--------------------------------------------------------------------------------

                                    REVISIONS

Each time a new page is added to this specification, or an existing page is
revised, only this "Revisions" page reissues with the new or revised pages.

REV     DATE     BY   PAGES            REMARKS
---   -------   ---   -----   ------------------------
 A     5/7/91   GKD    All    Issued for Quotation.

 O    7/31/91   GKD    All    Issued for Construction.

                                                  Approved
                                                           ---------------------
                                                              The Ben Holt Co.

                                                           ---------------------
                                                                    TIC

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 2 of 8 Pages

--------------------------------------------------------------------------------

1.0  SCOPE

     This Specification covers an outdoor 12.47 kV single-phase, dry type,
     self-cooled, air core shunt reactors continuously operated.

2.0  APPLICATION

     The reactors are for outdoor, concrete pad mounting and to provide
     protection from utility system transient overvoltages. Location - Brady Hot
     Springs, Nevada.

3.0  STANDARDS AND CODES

     The reactors covered by this Specification shall be designed, tested and
     assembled in accordance with the applicable standards of NEMA, IEEE, and
     ANSI and shall conform to the latest edition of the National Electrical
     Code.

4.0  WORKMANSHIP AND MATERIALS

     Materials and equipment shall be standard products of established
     manufacturers who have produced continuously the type of equipment
     specified. All materials and equipment shall be new.

     The unit shall be completely factory built and assembled.

5.0  GUARANTEES

     The components shall be guaranteed for a period of one (1) year from the
     date of their acceptance against defective materials, design and
     workmanship. Upon receipt of notice from the Purchaser of failure of any
     part of the equipment during the guarantee period, new replacement parts
     shall be furnished and installed promptly by the Vendor at no cost to the
     Purchaser.

6.0  ARRANGEMENTS

     Three single-phase reactors will be placed in a triangular configuration,
     wye-connected and fed by a three-phase circuit breaker. The neutral will
     not be grounded. The spacing between the reactors will be as shown on Sheet
     7.

7.0  RATINGS

     The reactors shall be self-cooled, outdoor dry type, air core and of
     upright design, and designed to industry standards and shall include the
     following:

     A.   Rating: 2.17 MVAR (Total 3 (phi) rating of 6.5 MVAR).

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 3 of 8 Pages

--------------------------------------------------------------------------------

     B.   Class: Self-cooled (Class AA as defined in ANSI C57.21).

     C.   Number of phases per reactor: One.

     D.   Temperature rise of windings and terminals: 80 DEG.C with
          hottest-spot temperature rise of 110 DEG.C at 110% rated voltage.

     E.   Frequency: 60 Hz.

     F.   Rated voltage: 12.47 kV, wye-connected.

     G.   Overvoltage: 10 percent continuous above and below rated voltage
          without exceeding the temperature rise limits specified in "D", above.

     H.   Insulation class: 15 kV.

     I.   BIL: 110 kV.

     J.   Type of insulation: Class B as specified in ANSI C57.12.80.

     K.   Temperature rise is with reference to an average ambient of
          30 DEG.C.

     L.   Altitude of 4100'.

8.0  PHYSICAL REQUIREMENTS

     8.1  All materials used in the shunt reactors shall be impervious to
          moisture and shall be suitable for outdoor service.

     8.2  The overall diameter of the shunt reactors shall not exceed 7 feet, 6
          inches, unless specifically approved by The Ben Holt Co.

     8.3  Reactors shall be fitted with lifting eyes or other suitable means for
          lifting with a crane.

     8.4  Reactors which have a base shall be provided with a drainage hole in
          the center of the base. The base should be designed such that it
          slopes toward the drainage hole, or a removable base will be accepted.

9.0  INSULATORS AND NONMAGNETIC SPACERS

     9.1  The shunt reactors shall be mounted on insulators and nonmagnetic
          spacers. The insulators and spacers shall be furnished by
          Manufacturer. Any other mounting method must be approved by The Ben
          Holt Co.

          9.1.1 The insulators shall have nonmagnetic caps and be of sufficient
               strength and size to meet the seismic requirements specified

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 4 of 8 Pages

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               in Section 15. In no case shall insulators smaller than 10 inches
               in diameter be used.

          9.1.2 The nonmagnetic spacers shall be 13 inches high. The temperature
               rise shall be below the values permitted by 7 D and shall not
               damage the porcelain, metal parts, cement, sealant, or other
               components of the insulators.

     9.2  Manufacturer shall furnish information relative to the insulators,
          dimensions, and spacing around the periphery of the bottom of the
          reactors.

10.0 WINDINGS

     10.1 The windings of the reactors shall be aluminum, without joints.

     10.2 The clearance between adjacent turns shall be not less than 1/4 inch,
          unless approved by The Ben Holt Co.

11.0 TERMINALS AND TERMINAL CONNECTORS

     11.1 The terminals of the reactors shall be either brazed or welded to the
          windings.

     11.2 With the conductor arrangement shown on Page 7, the terminals,
          together with the reactors, shall be capable of withstanding an
          available short-circuit duty of 500 MVA.

     11.3 The terminals shall be tin plated.

     11.4 The design of the terminals and the method by which they are secured
          to the reactors shall be such that they will safely support the cables
          and connectors, the sizes of which are shown on Page 7. Manufacturer
          shall assure that the terminals will not bend or be pulled away from
          the reactors. The Apparatus may be subjected to maximum steady wind
          velocities of 88 miles per hour and gusting wind velocities of 120
          miles per hour. Reactor conductors shall withstand normal reactor
          vibration.

     11.5 The temperature rise of the terminals shall not exceed the temperature
          limits permitted for the windings.

     11.6 Manufacturer shall furnish information showing the location of the
          terminals relative to the mounting insulators.

     11.7 Terminal connectors for connection to cables will be furnished by The
          Ben Holt Co.

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 5 of 8 Pages

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12.0 AUDIBLE NOISE LEVEL

     The average audible sound level of any single-phase shunt reactor shall not
     exceed 60 dBA. The audible sound level shall be measured at a distance of
     50 feet from the centerline of the reactor. There shall be no obstructions
     between the reactor and sound measuring apparatus. Sound level tests shall
     be performed as specified in proposed Section 12.6 of ANSI C57.21.

13.0 NAMEPLATES

     Each shunt reactor shall have a noncorrosive, nonmagnetic, stainless steel
     nameplate permanently attached which shall show, as a minimum, the data
     specified in ANSI C57.21. Adhesive type nameplates and labels are not
     acceptable.

14.0 TESTS

     Manufacturer shall make the following tests and furnish three certified
     copies of the test data:

     14.1 Losses and Impedance: In accordance with ANSI C57.21.

     14.2 Temperature Rise Tests: In accordance with ANSI C57.21. The test shall
          be performed at 110% rated voltage.

     14.3 Resistance Measurements: In accordance with ANSI C57.21.

     14.4 Applied Potential Tests: Made on all units in accordance with ANSI
          C57.21.

     14.5 Impulse Tests: In accordance with ANSI C57.21.

15.0 SEISMIC CAPABILITY

     The reactors shall be designed for Zone 4.

16.0 DATA, DRAWINGS, MANUALS AND TEST REPORTS

     16.1 Data and Drawings

          Supplier shall submit data and drawings within the number of days
          after notification of award as specified.

          Outline drawings shall include all the information listed below:

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 6 of 8 Pages

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          A.   Location of insulators.

          B.   Mounting hole dimensions of the bottom insulators.

          C.   The location of terminals relative to the mounting insulators.

          D.   Location and dimensions of the terminal pads.

          E.   Information relative to the number of insulators, dimensions, and
               spacing around the periphery of the bottom of the reactors.

          F.   Diameter of insulators, overall height, and height above the
               mounting insulators.

     16.2 Manuals

          Supplier shall submit complete instruction manuals, including parts
          lists, for the reactors and all devices and equipment furnished with
          the reactors. The manuals shall give complete and detailed
          instructions for erection, installation, operation, adjustment and
          maintenance.

     16.3 Test Reports

          Supplier shall submit certified test reports for all specified tests.

17.0 INFORMATION WITH PROPOSAL

     Bidders shall furnish, as a part of their proposal, two (2) copies of each
     of the items listed below pertaining to the equipment they propose to
     furnish.

     17.1 Descriptive bulletins.

     17.2 Sketches showing the arrangement and overall dimensions.

     17.3 Weight.

     17.4 Sound levels.

     17.5 Reactor losses at no load and full load.

18.0 HYDROGEN SULFIDE GAS CONTAMINATION

     During plant operation the equipment will be exposed intermittently to
     varying concentrations of hydrogen sulfide gas and geothermal fluid spray
     from venting operations. These conditions will be extremely corrosive to
     silver, copper and copper based alloys. The equipment furnished shall be

DRY TYPE AIR CORE SHUNT REACTOR                        Specification No. 3600-13

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     July 31, 1991
                                                              Page 7 of 8 Pages

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18.0 HYDROGEN SULPIDE GAS CONTAMINATION (Continued)

     suitable for operation under these environmental conditions. Copper or
     copper alloy parts shall be tinned or coated with a permanent suitable
     coating to protect against hydrogen sulfide. Aluminum may be substituted
     for copper where it is practical to do so. All exposed copper or wiring
     shall be tinned coated.

  
    
      

LIQUID FILLED SUBSTATION TRANSFORMER A                  Specification No. 3600-8

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     April 23, 1991
                                                              Page 1 of 6 Pages

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                                    REVISIONS

Each time a new page is added to this specification, or an existing page is
revised, only this "Revisions" page reissues with the new or revised pages.

REV.     DATE      BY   PAGES   REMARKS
----   --------   ---   -----   -----------------------------------
  A    11/12/90   GKD    All    Issued for Quotation.
  B    04/23/91   GKD    All    Added Fans and Issued for Contract.
  O    07/25/91   GKD    All    Issued for Purchase.

                                                  Approved
                                                          ----------------------
                                                              The Ben Holt Co.

                                                          ----------------------
                                                                   TIC

LIQUID FILLED SUBSTATION TRANSFORMER A                  Specification No. 3600-8

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     April 23, 1991
                                                              Page 2 of 6 Pages

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1.0  SCOPE

     This Specification covers an outdoor 120KV/12.47KV substation transformer,
     complete from the high voltage bushings to the low-voltage bus terminals.

2.0  APPLICATION

     This substation is a generator step-up transformer, outdoor, concrete pad
     mounting, 12.47 KV to 120 KV. Location: Brady Hot Springs, Nevada.

3.0  STANDARDS AND CODES

     The substation covered by this Specification shall be designed, tested and
     assembled in accordance with the applicable standards of NEMA, IEEE, and
     ANSI and shall conform to the latest edition of the National Electrical
     Code.

4.0  WORKMANSHIP AND MATERIALS

     Materials and equipment shall be standard products of established
     manufacturers who have produced continuously the type of equipment
     specified. All materials and equipment shall be new.

     The unit shall be completely factory built and assembled.

5.0  GUARANTEES

     The components shall be guaranteed for a period of one (1) year from the
     date of their acceptance against defective materials, design and
     workmanship. Upon receipt of notice from the purchaser of failure of any
     part of the equipment during the guarantee period, new replacement parts
     shall be furnished and installed promptly by the vendor at no cost to the
     purchaser.

6.0  ARRANGEMENT

     6.1  The 120KV side of the transformer shall consist of cover mounted extra
          creapage bushings with areal lugs suitable for #2 ACSR wire and
          bushings to be provided with 400/5 multi-ratio current transformers
          for differential protection. 84 KV metal oxide station type surge
          lightning arrestors to be provided for mounting on top of transformer.

          The primary neutral bushing shall be covered mounted, 110 KV BIL
          rated.

          Provide one multi-ratio bushing type current transformer in the
          neutral bushing. The current transformer ratio shall be 200 to 5
          Amperes maximum.

LIQUID FILLED SUBSTATION TRANSFORMER A                  Specification No. 3600-8

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     April 23, 1991
                                                              Page 3 of 6 Pages

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          Provide wiring from current transformer to identified terminals in a
          box mounted on the transformer. The box shall include at lease one 3/4
          inch, or larger, conduit entrance for use by the customer.

     6.2  The 12.47 KV side of the transformer shall consist of sidewall
          bushings and enclosed in a standard flanged enclosure for connection
          to a 1600 Ampere, 15 KV metal enclosed bus. Flexible bus connectors
          will be provided with the metal enclosed bus. The bushing tangs and
          the flanged enclosure shall be factory drilled to match like
          components on the metal enclosed bus.

7.0  RATING. PROVISIONS AND ACCESSORIES

     The transformer shall be an oil-immersed, self-cooled, outdoor unit,
     designed to industry standards and shall include the following:

Ratings                22.32 MVA / 25 MVA / 29.7 MVA (F.A.)

Temperature Rise       OA 55 DEG./ OA 65 DEG./ FA 65 DEG.

Frequency              60 Hertz

Phases                 3

High Voltage           120 KV

H.V. Connection        WYE

Low Voltage            12.47 KV

LV. Connection         DELTA

Impedance              8%

H.V. Taps              4 - 2-1/2% (Two above and two below, fully rated.

Standard Accessories   (Noted in 8.4)

Fans                   Fan cooling shall be provided. Capacity in all current
                       carrying parts shall be based on the fan cooled rating.

LIQUID FILLED SUBSTATION TRANSFORMER A                  Specification No. 3600-8

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     April 23, 1991
                                                              Page 4 of 6 Pages

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8.0  CHARACTERISTICS

     8.1  Temperature rise is with reference to an average ambient of
          30 DEG. C.

     8.2  120 KV transformers shall be of 138 KV insulation class with a minimum
          of 550 KV BIL rating and 12.47 KV shall be 110 KV BIL.

     8.3  No-load tap changers shall be externally operable and rated for full
          transformer KVA and capable of being locked in any position.

     8.4  Standard accessories shall include the following:

          o    Liquid level gauge.

          o    Dial-type thermometer with high temperature switch for actuation
               of fans and alarms.

          o    One oil thermal relay.

          o    One winding thermal relay.

          o    Drain and lower filter-press valve.

          o    Pressure relief device.

          o    Lifting eyes or hooks.

          o    Tank grounding pads.

          o    Base of transformer shall be capable of skidding in any
               direction, and furnished with jacking facilities.

          o    Cove handholes.

          o    Pressure vacuum gauge.

          o    Pressure vacuum bleeder.

          o    Upper filter-press valve.

          o    Gas sampling valve.

          o    Stainless steel nameplate, with ratings, description and
               instructions.

LIQUID FILLED SUBSTATION TRANSFORMER A                  Specification No. 3600-8

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     April 23, 1991
                                                              Page 5 of 6 Pages

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9.0  ACCESSORIES

     Provide a fault pressure relay, device 63, on the transformer. The relay
     shall close its contacts on an abnormal rate of change in pressure. A
     source if 125 V DC power if required for this devide is available.

     Provide wiring for all current transformers and the fault pressure relay to
     identified terminals in a box mounted on the transformer. The box shall
     include at least one 3/4 inch, or larger, conduit entrance for use by the
     customer.

10.0 PAINTING

     All metal parts of the complete transformer shall be thoroughly cleaned
     before application of a rust inhibitor. A minimum of two (2) MILS thickness
     of vendor's standard finish for transformers shall be applied. Furnish one
     pint of finish paint for field touch-up.

11.0 TESTS AND INSPECTION

     11.1 The equipment shall be submitted to standard commercial factory tests
          to assure operational performance.

     11.2 The owner reserves the right of inspection in the manufacturer's shop
          during testing.

     11.3 The manufacturer shall, if requested, provide the services of a field
          engineer to supervise any field tests and to make necessary adjustment
          or alterations, required for the operation of the equipment in
          accordance with this Specification.

12.0 ALTITUDE AND AMBIENT REQUIREMENTS

     Equipment shall be designed to conform to the following:

     Altitude: 4,100 feet above sea level
     Ambient temperature: 110 DEG. F Max. to 20 DEG. F Min.

     Primary voltage changes at full load will be +/- 10 percent.

                                    EXHIBIT N

                          FINAL INTERCONNECTION WIRING

                                                                   Attachment #4
                                                                       Exhibit O
                                                                 Amendment No. 1
                                                                     Page 1 of 2

Item   Date      Milestone                   Standard                    Documentation
----   -------   -------------------------   -------------------------   -------------------------

No.l   9/16/91   Issue purchase order for    Purchase order with         Provide Sierra with a
                 the turbine generators      vendor indicating           copy of purchase order
                                             requisition of              from vendor with a
                                             turbine/generator sets      specified delivery date

No.2   2/5/92    Receive UEPA permit         Order from Public Service   Provide notice of verbal
                 approval from the Public    Commission of Nevada        approval by the Public
                 Service Commission of       granting the Project        Service Commission of
                 Nevada                      rights for construction     Nevada for UEPA permit,
                                                                         followed with the written
                                                                         decisions from the agenda
                                                                         hearing where the
                                                                         approval was made

No.3   2/5/92    Completion of drilling of   Complete the drilling of    Provide Sierra with the
                 the initial production      the initial production      data from the well test,
                 well(s) to be used for      well(s), which shall        which test is performed
                 the Project                 deliver dry steam at not    by qualified
                                             less than _(1)_ pounds      professionals, which
                                             per hour at a pressure of   indicates delivery of dry
                                             not less than _(3)_ and a   steam of quality and
                                             temperature of not less     quantity as indicated
                                             than _(3)_ degrees F for
                                             a test period of 48
                                             continuous hours or until
                                             stabilization occurs.
                                             Stabilization shall be
                                             considered met when the
                                             pressure at the end of
                                             any 8-hour continuous
                                             period shall not be more
                                             than 1 psi less than the
                                             first hour of the 8-hour
                                             period

No.4   3/20/92   Begin pouring of turbine/   Complete preparation of     Provide documentation by
                 generator foundations       turbine/generator           a qualified professional
                                             foundation and begin        that the foundation is
                                             pouring of concrete for     prepared and that
                                             mounting of                 concrete pouring has
                                             turbine/generator sets      begun

No.5   5/18/92   Delivery of                 Receipt of                  Provide documentation
                 turbine/generators to the   turbine/generator sets      that the turbine/
                 plant site of the Project   from vendor delivered to    generator sets has been
                                             plant site                  delivered to plant site

No.6   5/23/92   Complete installation of    Complete mounting of        Provide documentation
                 turbine/generators          turbine/generator sets on   from a qualified
                                             foundation                  professional that the
                                                                         turbine/ generators has
                                                                         been mounted and set on
                                                                         the foundation

                                                                   Attachment #4
                                                                       Exhibit 0
                                                                 Amendment No. 1
                                                                     Page 2 of 2

Item   Date      Milestone                   Standard                    Documentation
----   -------   -------------------------   -------------------------   -------------------------

No.7   5/25/92   Completion of well          Complete the drilling of    Provide Sierra with the
                 drilling for all wells to   all production and          data from the well tests,
                 be used for the Project     injection wells, which      which tests are performed
                                             shall deliver dry steam     by certified
                                             of not less than _(2)       professionals, which
                                             pounds per hour at a        indicates the delivery of
                                             pressure of not less than   dry steam of quality
                                             _(3)_ and a temperature     and quantity as indicated
                                             of not less than _(3)_      and capability of
                                             degrees F, and shall be     injection of all
                                             capable of injecting all    production fluids from
                                             fluids produced by the      the Project
                                             production wells

No.8   9/20/92   Commence the thirty day     Begin thirty day            Provide notice to Sierra
                 shakedown period as         shakedown period pursuant   pursuant to Section 7 of
                 described in Section 7 of   to Section 7 of the         the Agreement that the
                 the Agreement               Agreement                   shakedown period has
                                                                         begun

No.9   11/20/92  Achieve a Commercial        Perform 100-hour test       Provide notice to Sierra
                 Operation Date pursuant     pursuant to Section 7 of    pursuant to Section 7 of
                 to Section 7 of the         the Agreement & establish   the Agreement that the
                 Agreement                   a Commercial Operation      Commercial Operation date
                                             date                        has been established

1)   Calculated as: 120% of the steam number provided in Section 9(b) divided by
     11 (eleven was the total number of wells proposed).

2)   Calculated as: 120% of the steam number provided in Section 9(b).

3)   These numbers shall correspond to the numbers provided in Section 9(b).

                                                                       EXHIBIT P

                           SEMI-ANNUAL PROJECT REPORT

Monthly Data: Required for production and injection wells.

     Total production to plant (gmp) or lbs/hr) ________________________________
     Total plant output (kwh) ___________________________
     Pressure at inlet __________________________________
     Temperature at inlet _______________________________

Production well:

a)   Flowing/pumping:

     Steam ___________________________
     Water ___________________________
     Non-condensible gas concentration _________________________
     Reservoir well head pressure ______________________________
     Reservoir well head temperature ___________________________
     Operating time __________________

a)   Static:

     Shut-in pressure or fluid levels __________________________
     Shut-in temperature _______________________________

Injection well:

     Pressure ________________________
     Volume __________________________

Data needed 3 times a day from any observation well(s):

     Pressure ________________________
     Fluid Level _____________________

Following data record as it happens:

                     What and When Occurred   Cost (Repair)

Plant outage         ______________________   _____________
Unit outage          ______________________   _____________
Equipment failures   ______________________   _____________
Scale removal        ______________________   _____________

Future Data

o    Plans to drill any type of well ______________________

o    Plans for descaling __________________________________

o    Plant modification and refurbishments ________________

o    Any modification of plant ____________________________

LIQUID FILLED SUBSTATION TRANSFORMER A                  Specification No. 3600-8

Nevada Geothermal Power Partners, Ltd.                        Holt Job No. 20177
Brady Hot Springs, Nevada                                     April 23, 1991
                                                              Page 6 of 6 Pages

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13.0 INFORMATION WITH PROPOSAL

     13.1 Descriptive bulletins

     13.2 Sketches showing the arrangement and overall dimensions

     13.3 Weight

     13.4 Sound Levels

     13.5 Standard Tests

     13.6 Transformer Losses at no load, 3/4 load and full load

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