Document:

AGM Docs (Notice/circ/card

EXHIBIT 4.8

ALTEK POWER CORPORATION

INCENTIVE STOCK OPTION PLAN

Dated for reference: May 17, 2002

	INTERPRETATION

	Defined Terms

For the purposes of this Plan, the following terms shall have the following meanings:

	"Act" means the Securities Act (British Columbia), R.S.B.C. 1996, c. 62, as amended, and any legislation passed in replacement thereof or supplemental thereto and all regulations pursuant thereto;

(b)"Associate" has the meaning ascribed to that term under section 1(1) of the Act;

(c)"Affiliated" has the meaning ascribed to that term under section 1(2) of the Act;

	"Board" means the Board of Directors of the Corporation;

	"Common Shares" means the Common shares without par value of the capital stock of the Corporation as currently constituted;

	"Corporation" means ALTEK POWER CORPORATION, which was incorporated pursuant to the law of British Columbia under incorporation number 303622;

	"Eligible Person" means, subject to all applicable laws, any director, officer or employee of the Corporation or any of its Affiliated companies and any other person or company engaged to provide ongoing management or consulting services for the Corporation or any of its Affiliated companies;

	"Employee" means an employee of the Corporation or of any of its Affiliated companies the Corporation as defined under Canadian Venture Exchange policy 4.4 or under the Income Tax Act.;

	"Exercise Price" means the amount payable on the exercise of an Option;

	"Insider" means an insider as defined under section 1(1) of the Act;

	"Option" means an option to purchase Common Shares granted to an Eligible Person pursuant to the terms of this Plan;

	"Participant" means an Eligible Person to whom Options have been granted;

	"Plan" means this Incentive Stock Option Plan of the Corporation;

	"Share Compensation Arrangement" means any stock option, stock option plan, employee stock purchase plan or any other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares, including a share purchase from treasury which is financially assisted by the Corporation by way of a loan, guarantee or otherwise; and

	"Termination Date" means the date on which a Participant ceases to be an Eligible Person.

	"TSX" means the TSX Venture Exchange.

	Included Words

Wherever words importing the singular are used in this Plan the same will be deemed to include references to the plural and vice versa, and words importing gender will be deemed to include all genders.  

	Governing Law

This Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

	PURPOSE AND ADMINISTRATION

	Purpose

The purpose of this Plan is to advance the interests of the Corporation by:

(a)providing Eligible Persons with additional incentive;

(b)encouraging stock ownership by such Eligible Persons;

(c)increasing the proprietary interest of Eligible Persons in the success of the Corporation;

(d)encouraging the Eligible Person to remain with the Corporation or its Affiliates; and

(e)attracting new employees and officers.

	Administration

This Plan shall be administered by the Board or a committee of the Board duly appointed for this purpose by the Board and consisting of not less than three directors.  If a committee is appointed for the purpose described in subsection 2.1, all references to the Board will be deemed to be references to the committee. Subject to the limitations of this Plan, the Board shall have the authority to:

(a)grant Options to Eligible Persons;

(b)determine the terms, limitations, restrictions and conditions respecting such grants;

(c)interpret this Plan and to adopt, amend and rescind such administrative guidelines and other rules and regulations relating to this Plan as it shall from time to time deem advisable; and

(d)make all other determinations and to take all other actions in connection with the implementation and administration of this Plan as it may deem necessary or advisable.

The Board's guidelines, rules, regulations, interpretations and determinations shall be conclusive and binding upon the Corporation and all other persons.

	RESERVATION OF SHARES

	Maximum Number

The maximum number of Common Shares issuable for all purposes under this Plan shall not exceed 9,843,103 shares.  However, in accordance with TSX Policy 4.4, this maximum number may be revised from time to time provided that approval is obtained from the Company's shareholders and the TSX.

Any Common Shares that are subject to an Option which for any reason is cancelled or terminated without having been wholly exercised, shall again be available for grant under this Plan.  Common Shares covered by an Option that shall have been exercised shall not be available again for an Option grant under this Plan.

	Per Person

The maximum number of Common Shares which may be reserved for issuance under Options to a Participant, other than a consultant, at any time under this Plan shall be 5% of the Common Shares outstanding at the time of the grant (on a non-diluted basis) less the aggregate number of Common Shares reserved for issuance to such person under any other Share Compensation Arrangement.

Where the Participant is a consultant, as defined in BC Instrument 72-503, the maximum number of Common Shares which may be reserved for issuance under Options to the consultant shall be 2% of the Common Shares outstanding at the time of the grant (on a non-diluted basis) less the aggregate number of Common Shares reserved for issuance to such person under any other Share Compensation Arrangement.

	Capital Alteration

The number of Common Shares subject to an Option will be subject to adjustment in the events and in the manner following:

	if and when the Common Shares are subdivided or consolidated after the date an Option is granted, or the Corporation fixes a record date for and pays to holders of Common Shares of record as of a date after the date the Option is granted a dividend payable in Common Shares, the number of Common Shares which would be acquired on any exercise of the Option thereafter will be adjusted to the number of such shares that the Participant would hold through the combined effect of such exercise and such subdivision, consolidation or stock dividend if the time of the subdivision or consolidation or the record date of such stock dividend had been immediately after the exercise, and the number of such shares referred to in subsection 3.1 as previously allotted or considered as allotted or issued for the purpose of subsection 3.1 will be correspondingly adjusted;

	if there is any capital reorganization, reclassification or other change or event affecting the Common Shares to which paragraph (a) above does not apply, the Board will determine whether in the circumstances it is just and equitable that there be some alteration in the securities or other consideration to be acquired by the Participant on the exercise of Options then outstanding and will make such amendments to the Plan as the Board considers appropriate in the circumstances to ensure a just and equitable result; and

	the Corporation will not be required to issue any fractional share in satisfaction of its obligations hereunder or any payment in lieu thereof.

The Exercise Price per Common Share to be acquired upon the exercise of an Option shall be subject to adjustment if and whenever the Common Shares are subdivided or consolidated after the date an Option is granted, or the Corporation fixes a record date for and pays to holders of Common Shares of record as of a date after the date the Option is granted a dividend payable in Common Shares (such event is hereinafter collectively referred to as an "Adjustment Event").  The Exercise Price shall be adjusted effective immediately after the effective date of the Adjustment Event by multiplying the Exercise Price in effect immediately prior to the effective date of the Adjustment Event by a fraction, the numerator of which shall be the number of Common Shares outstanding on such date before giving effect to the Adjustment Event and the denominator of which shall be the number of Common Shares outstanding immediately after giving effect to the Adjustment Event, including, in the case where securities exchangeable for or convertible into Common Shares are distributed, the number of Common Shares that would have been outstanding had such securities been exchanged for or converted into Common Shares upon the effective date of such Adjustment Event.

	EXISTING STOCK OPTIONS

4.1The existing options granted by the Corporation, representing approximately 18% of the issued and outstanding shares in the capital of the Corporation, are hereby brought under the umbrella of this Plan and, consequently, as of the date of the Plan, the following are the issued and outstanding options:

	
Name of Optionee
	
No. of Option

Shares
	
Exercise

Price
	
Expiry

Date

	
Byron P. Loewen
	
255,575
	
$0.16
	
January 5, 2010

	
	
213,380
	
$0.16
	
February 28, 2010

	
	
248,445
	
$0.12
	
April 27, 2010

	
	
200,000
	
$0.20
	
March 7, 2006

	
	
1,300,000
	
$0.12
	
July 24, 2006

	
Rod Reum
	
233,333
	
$0.20
	
March 7, 2006

	
	
1,597,194
	
$0.12
	
July 24, 2006

	
	
228,125
	
$0.12
	
March 14, 2007

	
W. Gerald Mazzei
	
229,530
	
$0.15
	
June 30, 2009

	
	
33,000
	
$0.16
	
February 28, 2010

	
	
121,333
	
$0.12
	
April 27, 2010

	
	
196,137
	
$0.10
	
May 23, 2010

	
	
150,000
	
$0.20
	
March 7, 2006

	
	
1,100,000
	
$0.12
	
July 24, 2006

	
Gerald B. Caul
	
441,333
	
$0.15
	
June 30, 2009

	
	
100,000
	
$0.20
	
June 30, 2009

	
	
138,667
	
$0.12
	
April 27, 2010

	
	
150,000
	
$0.20
	
March 7, 2006

	
	
1,100,000
	
$0.12
	
July 24, 2006

	
Reyna Seabrook
	
15,000
	
$0.12
	
July 24, 2006

	
Lesley McNamara
	
15,000
	
$0.12
	
July 24, 2006

	
Linda Andersson
	
25,000
	
$0.12
	
March 14, 2007

	
Thomas Isbell
	
100,000
	
$0.12
	
July 24, 2006

	
John Thomas
	
100,000
	
$0.12
	
July 24, 2006

	
Robert L. Bolin
	
100,000
	
$0.12
	
July 24, 2006

	
John Cousins
	
150,000
	
$0.12
	
July 24, 2006

	
Gert Tarstad
	
130,000
	
$0.12
	
March 14, 2007

	
Jonus Tarstad
	
130,000
	
$0.12
	
March 14, 2007

	
Silve Piejko
	
130,000
	
$0.12
	
March 14, 2007

	

Total
	

8,931,052
	
	

	TERM AND TERMINATION

5.1Effective Date

This Plan shall be effective upon the approval of this Plan by the TSX.  All Options granted by the Corporation prior to the approval date shall be deemed to form part of and to comply with the provisions of this Plan, except that such prior Options are not subject to the vesting provisions under this Plan.  Upon approval of the TSX, the Corporation may grant Options under this Plan up to the maximum number, provided that it shall be a term of any such grant of Option that the Participants may not exercise the Option until such time as the shareholders of the Corporation have approved this Plan.

 

5.2Amend or Terminate Plan

The Board may amend, suspend or terminate this Plan or any portion thereof at any time in accordance with applicable legislation, and subject to any required regulatory or shareholder approval.  No such amendment, suspension or termination shall alter or impair any Options or any rights pursuant thereto granted previously to any Participant without the consent of such Participant.

5.3Continuing Effect

If this Plan is terminated, the provision of this Plan and any administration guidelines, and other rules and regulations adopted by the Board and in force at the time of this Plan shall continue in effect during such time as an Option or any rights pursuant thereto remain outstanding.

	COMPLIANCE WITH LEGISLATION

6.1Applicable Laws

This Plan, the grant and exercise of Options hereunder and the Corporation's obligation to sell and deliver Common Shares upon exercise of Options, shall be subject to all applicable federal, state, provincial and foreign laws, rules and regulations, the rules and regulations of any stock exchange on which the Common Shares are listed for trading and to such approvals by any regulatory or governmental agency as may, in the opinion of counsel to the Corporation, be required.

The Corporation shall not be obliged by provision of this Plan or the grant of any Option hereunder to issue or sell Common Shares in violation of such laws, rules and regulations or any condition of such approvals.

6.2Void where Applicable

No Option shall be granted and no Common Shares issued or sold hereunder where such grant, issue or sale would require registration of this Plan or of Common Shares under the securities laws of any foreign jurisdiction and any purported grant of any Option or issue or sale of Common Shares hereunder in violation of this provision shall be void.

6.3Listing on Stock Exchange

The Corporation shall have no obligation to issue any Common Shares pursuant to this Plan unless such Common Shares shall have been duly listed, upon official notice of issuance, with all stock exchanges on which the Common Shares are listed for trading.

6.4Resale Restrictions

Common Shares issued and sold to Participants pursuant to the exercise of Options may be subject to limitations on sale or resale under applicable securities laws.  In particular, if Options are granted to any resident or citizen of the Province of British Columbia, the Board and the Corporation will use their best efforts to ensure that all matters pertaining to such Option shall be made in compliance with applicable British Columbia securities laws.

The current policies of TSX provide that Options shall be subject to a four month hold period commencing on the date of grant.  Any Common Shares issued upon exercise of an Option may not be traded through the facilities of TSX or otherwise in Canada during the term of the hold period without the prior written consent of TSX.

 

 

	TERMS OF OPTIONS

7.1Grant of Options

Subject to the provisions of this Plan, the Board shall have the authority to determine the limitations, restrictions and conditions, if any, in addition to those set forth in this section, applicable to the exercise of an Option, including, without limitation:
(a)the nature and duration of the restrictions, if any, to be imposed upon the exercise of the Option or the sale or other disposition of Common Shares acquired upon exercise of the Option; and

(b)the nature of the events, if any, and the duration of the period in which any Participant's rights in respect of Common Shares acquired upon exercise of an Option may be forfeited, with the discretion in the Board to modify or rescind such restrictions in the event of certain corporate development such as take over bid, reorganization, merger, change in capital or amalgamations.

An Eligible Person may receive Options on more than one occasion under this Plan and may receive separate Options on any one occasion.

7.2Option Exercise Price

The Board shall establish the Exercise Price at the time each Option is granted, subject to the following conditions:

	if the Common Shares are not listed, posted and trading on any stock exchange or bulletin board, then the Exercise Price for the Options granted shall be determined by the Board at the time of granting; and

	if the Common Shares are listed, posted and trading on the TSX, then the Exercise Price for the Options granted then shall not be less than the Discounted Market Price as defined in the TSX policies; 

	if the Option is granted within 90 days of a distribution by a Prospectus, the minimum exercise price will be the greater of the Discounted Market Price and the per share price paid by the public investors for the distribution under the Prospectus; and.

	in all other cases, the Exercise Price shall be determined in accordance with the rules and regulations of the applicable regulatory bodies.  

The Exercise Price shall be subject to adjustment in accordance with the provisions of subsection 3.3.

7.3Term of Options

For as long as the Corporation is classified as a Tier 2 company of the TSX, Options granted must terminate on the earlier of the Termination Date or 5 years after the date of grant or such lesser period as may be determined by the Board.  In the event the Corporation is classified by the TSX as a Tier 1 company, then the Board can choose to comply with either the provisions of the Toronto Stock Exchange Option policy or the TSX policies for Tier 1 companies.

If the Common Shares are no longer listed on the TSX and are listed on another recognized stock exchange in North America, the Options granted may terminate on the earlier of the Termination Date or the maximum number of years as permitted by the policies of that stock exchange on which the Common Shares are listed, or such lesser period as may be determined by the Board.

7.4When Exercisable

The Board may determine when any Option will become exercisable, provided that each Option (other than the Options granted as at the date of this Agreement) must be subject to a vesting schedule under which not more than: 
(a)25% of the initial aggregate number of common shares which may be purchased under the Option may vest on allocation;

(b)25% of the initial aggregate number of common shares which may be purchased under the Option may vest on the date which is 6 calendar months after the date of grant;

(c)25% of the initial aggregate number of common shares which may be purchased under the Option may vest on the date which is 12 calendar months after the date of grant; and

(d)25% of the initial aggregate number of common shares which may be purchased under the Option may vest on the date which is 18 calendar months after the date of grant.

7.5No Fractional Shares

No fractional Common Shares shall be issued upon the exercise of options granted under this Plan and accordingly, if a Participant would become entitled to a fractional Common Share upon the exercise of an Option, such Participant shall only have the right to purchase the next lowest whole number of Common Shares and no payment or other adjustment will be made with respect to the fractional interest so disregarded.

7.6Cease to Be Eligible Person
If the Corporation or its Subsidiary terminates the employment or engagement of a Participant for any reason other than just cause, then any Option that has been granted to that Participant shall become fully vested and may be exercised within the earlier of 30 days of the Termination Date or the expiry date of the Option. 

If the Corporation or its Subsidiary terminates the employment or engagement of the Participant for just cause, or the Participant should terminate his or her employment or engagement with the Corporation or its Subsidiary, or the Participant ceases to become an Eligible Person, then the Participant shall be entitled only to exercise that part of the Option that is vested pursuant to clause 6.4 above within the earlier of 90 days of the Termination Date or the expiry date of the Option.

If a Participant dies, the legal representative of the Participant may exercise the Participant's Options within 12 months after the date of the Participant's death, but only to the extent the Options were by their terms exercisable on the date of death.

7.7Non-transferable

Options shall not be transferable by the Participant otherwise than by will or the laws of descent and distribution, and shall be exercisable during the lifetime of a Participant only by the Participant and after death only by the Participant's legal representative.

Without limitation, and for greater certainty only, paragraph 7.6 will apply regardless of whether the Participant was dismissed with or without cause and regardless of whether the Participant received compensation in respect of dismissal or as entitled to a period of notice of termination which would otherwise have permitted a greater portion of the Option to vest with the Participant.

7.8Option Agreement

Each Option shall be confirmed by an option agreement executed by the Corporation and by the Participant. 

 

7.9Payment of Exercise Price

The exercise price of each Common Share purchased under an Option shall be paid in full in cash or by bank draft or certified cheque at the time of such exercise, and upon receipt of payment in full, but subject to the terms of this Plan, the number of Common Shares in respect of which the Option is exercised shall be duly issued as fully paid and non-assessable.

	GENERAL

8.1Other Arrangements

Nothing contained herein shall prevent the Board from adopting other or additional compensation arrangements, subject to any required approval.

8.2 No Rights as Shareholder

Nothing contained in this Plan nor in any Option granted thereunder shall be deemed to give any Participant any interest or title in or to any Common Shares of the Corporation or any rights as a shareholder of the Corporation or any other legal or equitable right against the Corporation whatsoever other than as set forth in this Plan and pursuant to the exercise of any Option.

8.3Continuing Services as Director, Officer, Employee or Consultant

This Plan does not give any Participant or any employee of the Corporation or any of its associated, affiliated, subsidiary or controlled companies the right or obligation to or to continue to serve as a director, officer, employee or consultant, as the case may be, of the Corporation or any of its affiliated companies.

8.4No Fettering of Discretion

The awarding of Options to any Eligible Person is a matter to be determined solely in the discretion of the Board.  This Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment or issue of any Common Shares or any other securities in the capital of the Corporation or any of its subsidiaries other than as specifically provided for in this Plan.

DATED at Vancouver, British Columbia, this 17th day of May, 2002.

	
ALTEK POWER CORPORATION 

per:"Byron P. Loewen"

Byron P. Loewen, Director

per:"Gerald B. Caul"

Gerald B. Caul, DirectorINTERCONNECTION AGREEMENT FOR GENERATOR INTERCONNECTION TO THE ELECTRIC DISTRIBUTION SYSTEM

EXHIBIT 4.10

 

INTERCONNECTION AGREEMENT

FOR GENERATOR INTERCONNECTION TO

THE ELECTRIC DISTRIBUTION SYSTEM

 

Dated OCTOBER 1, 2000

 

BETWEEN

 

AUTUMN INDEPENDENT POWER CORPORATION

 

AND

 

UTILICORP NETWORKS CANADA (ALBERTA) LTD.

 

 

LSD 06-24-41-06 W5M

WILLESDEN GREEN

900 kW (nominal rating)

Induction Generator

FOR EXPORT

 

______________________________

 

 

 

Utilicorp Networks Canada

1202 Centre Street South

CALGARY, ALBERTA

T2G 5A5

 

 

	 	
- TABLE OF CONTENTS -
	 
	
1.
	INTRODUCTION

	
1

	
2.
	DEFINITIONS

	
2

	
3.
	GOVERNING PRINCIPLES AND PROVISIONS

	
5

	
4.
	TERM AND TERMINATION

	
6

	
5.
	BILLING AND PAYMENT

	
6

	
6.
	NOTICE

	
7

	
7.
	SAFETY AND DISCONNECTION

	
8

	
8.
	INTERCONNECTION DATE AND INTERCONNECTION OBLIGATIONS

	
9

	
9.
	INTERCONNECTION CHARGES

	
10

	
10.
	RESISTIVE LOSS CHARGES AND PAYMENTS

	
10

	
11.
	METERING, POLLING AND PROVISION OF METERING DATA

	
12

	
12.
	RIGHT OF WAY AND ACCESS 

	
13

	
13.
	INSPECTION

	
14

	
14.
	FORCE MAJEURE

	
14

	
15.
	LIABILITY AND INDEMNITY

	
15

	
16.
	GOVERNMENT APPROVALS

	
16

	
17.
	DISPUTE RESOLUTION

	
16

	
18.
	CONFIDENTIALITY

	
18

	
19.
	GENERAL 

	
19

1.  INTRODUCTION

MEMORANDUM OF AGREEMENT made this 1st day of October 2000

BETWEEN:

AUTUMN INDEPENDENT POWER CORPORATION, a company incorporated under the laws of Alberta with its head office at the City of Kelowna, in the Province of British Columbia (hereinafter referred to as the "Generator"),

OF THE FIRST PART,

- and -

UTILICORP NETWORKS CANADA (ALBERTA) LTD., a company incorporated under the laws of Alberta with its head office at the City of Calgary in the Province of Alberta (hereinafter referred to as the "Wire Owner"),

OF THE SECOND PART

 

WHEREAS the Generator desires to interconnect its generating facility to the Wire Owner's Facilities (defined below) to be located in LSD 06, of Section 24, Township 41, Range 06, West of the 5th Meridian, near Rocky Mountain House, in the Province of Alberta; and

WHEREAS the Wire Owner is willing to provide said interconnection under the following terms and conditions.

NOW THEREFORE, this Agreement witnesses that:

2.  DEFINITIONS

In this Agreement the expressions below shall respectively have the following meanings:

(a)  "Act" means the Electric Utilities Act, S.A. 1995, c. E-5.5, as amended from time to time;

(b)  "Agreement" means this Interconnection Agreement, including the Operating Procedures attached hereto as Schedule A;

(c)  "Board" means the Alberta Energy and Utilities Board;

(d)  "Business Day" means any day other than a Saturday, a Sunday, or a statutory, holiday in Alberta;

(e)  "Construction Contribution" means an amount to be paid by the Generator to the Wire Owner for the interconnection of the Generator's Facility and the provision of the Interconnection Facilities, which shall include, without limitation, reasonable costs incurred by the Wire Owner in the design, supply and construction of the Interconnection Facilities, as described in the Interconnection Proposal;

(f)  "Effective Date" means the date as of which the Parties have executed this Agreement;

(g)  "Force Majeure" has the meaning given to that term in Section 14;

(h)  "Generator's Facility" means, collectively, all facilities of the Generator located at the Generator Location on the Generator's side of the Point of Interconnection, including, without limitation, all transformers, switches, and connection and protective equipment, required for the Generator to deliver and receive electricity to and from the Point of Interconnection;

(i)  "Generator Location" means that location in LSD 06, of Section 24, Township 41, Range 06, West of the 5''' Meridian;

(j)  "Good Electric Operating Practices" means the standard of practice attained by exercising that degree of knowledge, skill, diligence, prudence and foresight which would reasonably and ordinarily be expected from a skilled and experienced operator, engaged in the same type of undertaking under the same or similar circumstances and which is expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety of the public, safety of personnel, and expedition, but is not restricted to the optimum practice or course of action to the exclusion of all others but rather to the spectrum of reasonable practices, methods or acts;

(k)  "Interconnected Electric System" means "interconnected electric system" as defined in the Act;

(l)  "Interconnection Facilities" means all incremental facilities required to interconnect the circuits of the Generator's Facility to the circuits of the Wire Owner's Facilities at the Point of Interconnection, and all modifications to the Wire Owner's Facilities that may be required to allow the Generator to utilize the Wire Owner's Facilities for interconnection, which may include, without limitation, poles, lines, substations, service leads, and protective and metering equipment, but which shall not include any Transmission Facilities;

(m)  "Interconnection Proposal" means that proposal for interconnection that has been agreed to by the Wire Owner and the Generator, which may include, without limitation, a description of the Interconnection Facilities, the Target Interconnection Date, and the Construction Contribution, and which, if agreed to by the Parties, shall be deemed to be incorporated into and form part of this Agreement;

(n)  "Islanded Operation" means the operation of a generating unit that provides the sole source of production on an electric power system;

(o)  "NERC" means North American Electric Reliability Council;

(p)  "NWPP" means the Northwest Power Pool;

(q)  "Operating Procedures" means that schedule which describes the procedures for the operation of both the Generator's Facility and the Wire Owner's Facilities relating to the interconnection, a copy of which is attached hereto as Schedule A, which shall be deemed to be incorporated into and form part of this Agreement and which may be revised from time to time by the Wire Owner upon written notice to the Generator;

(r)  "Operation and Maintenance Charge" means the one-time or monthly charge, as applicable, specified in subsection 9(a);

(s)  "Parties" means the Generator and the Wire Owner, and "Party" means either one of them, as the context may require;

(t)  "Point of Interconnection" means the point identified on the Single Line Drawing attached as Appendix A to Schedule A as being the point at which electricity passes from the circuits of the Generator's Facility to the circuits of the Wire Owner's Facilities, or inversely, the point at which electricity passes to the circuits of the Generator's Facility from the circuits of the Wire Owner's Facilities;

(u)  "Power Pool" means "power pool" as defined in the Act;

(v)  "Pool Price" means "pool price" as defined in the Act;

(w)  "Pool Rules" means "rules of the power pool" as defined in the Act;

(x)  "Transmission Administrator" means the person(s) appointed by the Lieutenant Governor in Council to act as the Transmission Administrator pursuant to the Act;

(y)  "Transmission Facility" means "transmission facility" as defined in the Act;

(z)  "Transmission System" means "transmission system" as defined in the Act;

(aa)  "Wire Owner's Facilities" means all facilities of the Wire Owner located on the Wire Owner's side of the Point of Interconnection, including, without limitation, poles, lines, substations and service leads, but not including any Transmission Facilities, that are in existence before the Effective Date and are required to deliver and receive electricity to and from the Point of Interconnection; and

(bb)  "WSCC" means Western Systems Coordinating Council.

3.  GOVERNING PRINCIPLES AND PROVISIONS

(a)  Each Party shall perform its obligations under this Agreement in accordance with:

(i)  commercially reasonable efforts and Good Electric Operating Practices;

(ii)  applicable NERC, WSCC, NWPP, Transmission Administrator and Power Pool rules and policies;

(iii)  the Safety Codes Act (Alberta), the Canadian Electrical Code, the Electrical and Gas Inspection Act (Canada) and any other applicable legislation, safety codes, and safety standards; and

(iv)  the Operating Procedures attached as Schedule A, which are established to protect life and property and to facilitate the safe, effective interconnection of the Generator's Facility in a manner that does not degrade power quality, operability or reliability of the Interconnected Electric System and which the Wire Owner may revise from time to time upon written notice to the Generator.

(b)  The Wire Owner's Terms and Conditions of Electric Service and any Transmission Administrator terms and conditions, as approved by the Board from time to time and to the extent applicable to this Agreement, shall take precedence over and supersede the provisions of this Agreement to the extent of any inconsistency.

(c)  The Parties recognize that the applicable standards imposed by subsections (a) and (b) may change from time to time, and that each Party will comply with any changed standards upon receipt of notice or otherwise becoming aware of such changes.

(d)  The Parties acknowledge that the Interconnection Facilities consist solely of distribution facilities, not Transmission Facilities. 

4.  TERM AND TERMINATION

(a)  Unless terminated earlier in accordance with this Section or other provisions of this Agreement, this Agreement will commence on the Effective Date and continue in full force and effect for a period of twenty (29) years, terminating on the 31" day of May, 2029. Notwithstanding any termination of this Agreement, all rights and obligations of the Parties that have accrued prior to termination shall continue in effect until satisfied.

(b)  The Generator may terminate this Agreement by giving 90 days prior written notice to the Wire Owner.

(c)  The Wire Owner may terminate this Agreement upon written notice to the Generator in the event that the Generator has been disconnected from the Wire Owner's Facilities for a continuous period of one (1) year or more.

5.  BILLING AND PAYMENT

(a)  The Wire owner shall issue a bill to the Generator for the Construction Contribution and the one-time Operation and Maintenance Charge, if applicable.

(b)  The Wire Owner shall issue monthly bills to the Generator for the monthly Operation and Maintenance Charge, resistive loss charges, and metering and polling charges, if applicable, and other charges and credits payable by or to the Generator from time to time under this Agreement. Such bills may also include charges for energy and reactive power, if applicable. 

(c)  A late payment charge in accordance with the Wire Owner's Terms and Conditions of Electric Service shall be applied to any balance remaining unpaid 30 days after issuance of the bill, or when the next monthly bill is issued, as the case maybe 

6.  NOTICE

Any demand, notice or other communication ("Notice") required or permitted to be given in connection with this Agreement shall be given in writing and must be given by personal delivery, registered mail or facsimile transmittal as follows:

(a)  Notice to the Wire Owner shall be addressed to:

UTILICORP NETWORKS CANADA

6"' Floor, 801 - 7"' Avenue S.W.

Calgary, Alberta  T2P 3P7

Attention: Manager, Rates and Contracts Administration

Fax: (403) 514-4412

(b)  Notice to the Generator shall be addressed to:

AUTUMN INDEPENDENT POWER CORPORATION

Suite 1004 - 1708 Dolphin Avenue

Kelowna, BC  V1Y 9S4

Attention: Ken Dickson

Fax.: (250) 717-3708

or to such other address, facsimile number or individual as may be designated by Notice by either Party to the other. Any Notice given by personal delivery shall be conclusively deemed to have been given on the day of actual delivery thereof and, if given by registered mail, five business days following the deposit thereof in the mail, and if given by facsimile, on the day of transmittal thereof. If the party giving any Notice knows or ought reasonably to have known of any difficulties with the postal system that might affect the delivery of mail, any such Notice shall not be mailed but shall be given by personal delivery or facsimile.

7.  SAFETY AND DISCONNECTION

(a)  The Interconnection Facilities shall include an acceptable visible disconnect device at the Point of Interconnection which can be locked in the open position and tagged by the Wire Owner as a means of isolating the Generator's Facility from the Wire Owner's Facilities.

(b)  The Wire Owner may disconnect the Generator's Facility from the Wire Owner's Facilities without prior notice:

(i)  if in the Wire Owner's reasonable opinion, the Generator's Facility is posing a significant and immediate safety concern;

(ii)  to maintain, test or repair equipment safely;

(iii)  if the Generator is not meeting the power quality standards or other operating requirements set forth in the Operating Procedures; or

(iv)  if disconnection is required or directed by the Transmission Administrator

The Wire Owner shall use reasonable efforts to coordinate with and give reasonable prior notice to the Generator of such disconnection and to reconnect the Generator's Facility as soon as possible once the reason for the disconnection has been remedied.

(c)  Subject to subsection (b), the Wire Owner may disconnect the Generator's Facility from the Wire Owner's Facilities without further notice to the Generator if the Generator fails to perform any of its obligations under this Agreement, provided that the Wire Owner has first notified the Generator of the failure and the Generator has failed to remedy the failure within five (5) Business Days' after receipt of the Wire Owner's notice. The Wire Owner shall use reasonable efforts to reconnect the Generator's Facility as soon as possible once the Generator's failure to perform has been remedied.

(d)  The Generator acknowledges that the Generator's Facility shall be designed and operated so that Islanded Operation of the Generator's Facility cannot occur under any circumstances

8.  INTERCONNECTION DATE AND INTERCONNECTION OBLIGATIONS

(a)  The Generator shall satisfy all membership and application requirements of the Power Pool in relation to the Generator's Facility during the term of this Agreement. 

(b)  The Parties acknowledge that, as of the Effective Date of this Agreement, the circuits of the Generator's Facility are already interconnected to the circuits of the Wire Owner's Facilities.

(c)  The Wire Owner shall ensure that it has designed, supplied and constructed, and the Wire Owner shall maintain and operate, the Wire Owner's Facilities to establish and maintain interconnection of the Generator's Facility with the Wire Owner's Facilities at the Point of Interconnection in such a manner necessary to provide adequate electrical system protection for the Interconnected Electric System. 

(d)  Depending on the design of the Wire Owner's Facilities, some of the Wire Owner's protective and metering equipment may be located on the Generator's side of the Point of Interconnection, which shall be shown on the Single Line Drawing attached as Appendix A to Schedule A. 

(e)  The Generator shall ensure that it has designed, supplied, and constructed, and the Generator shall operate and maintain the Generator's Facility in such a manner necessary to provide adequate protection to the Generator's Facility.

(f)  Ownership of the Wire Owner's Facilities, including all interconnection, protective and metering equipment whether on the Wire Owner's or the Generator's side of the Point of Interconnection shall be vested at all times with the Wire Owner.

(g)  The Generator shall not at any time run the Generator's Facility, or increase the power output of the Generator's Facility, above a maximum output of 900 kW

9.  INTERCONNECTION CHARGES

(a)  The Generator shall pay the Wire Owner a monthly charge for the operation and maintenance of the Interconnection Facilities (the "Operation and Maintenance Charge"), regardless of whether or not the Generator's Facility is in operation. This monthly charge shall be calculated as approximately one twelfth of: the annual operation and maintenance charge approved from time to time by the Board multiplied by the Construction Contribution. As of the Effective Date of this Agreement, this monthly Operation and Maintenance Charge is calculated as one twelfth of one and one-half (1.5%) per cent of $61,355.00

(b)  The Generator shall pay in each month that Force Majeure is in effect the monthly Operation and Maintenance Charge, if applicable, so long as the circuits of the Generator's Facility are interconnected to the circuits of the Wire Owner's Facilities. The Generator shall also pay in each month that disconnection is in effect under subsection 7(a) the monthly Operation and Maintenance Charge, if applicable.

(c)  The Generator shall not be eligible for any refund of the Construction Contribution in the event that other generators or customer loads are interconnected to the Interconnection Facilities

10.  RESISTIVE LOSS CHARGES AND PAYMENTS

(a)  The Wire Owner shall charge and/or pay the Generator monthly for incremental resistive losses or loss reductions, as the case may be, on the distribution line supplying the Generator's Facility (namely, the Wire Owner's 25 kV circuit designated 290LE.68S) resulting from the operation of the Generator's Facility on such distribution line. Such charge and/or payment shall be calculated in accordance with subsections (b), (c) and (d).

(b)  Up to May 31, 2004, the charge and/or payment described in subsection (a) shall be calculated as follows:

For each calendar month between January and December, inclusive, an incremental loss reduction credit shall apply, which shall be equal to the SUM, for all hours of the applicable month, of. the hourly metered output of the Generator's Facility (in kW) X the Pool Price (in $/kWh) X a loss factor of two (2.0 %) per cent.

(c)  In determining the loss factor(s) specified in subsection (b), the Wire Owner has estimated the impact of the operation of the Generator's Facility on the distribution line supplying the Generator's Facility based upon various assumptions made by the Wire Owner regarding the operational characteristics and production parameters of the Generator's Facility, some of which may have been formulated from information supplied by the Generator. Accordingly, notwithstanding subsection (b) the loss factor(s) used to calculate the incremental resistive loss charge and/or loss reduction payment, as the case may be, during the first four years of this Agreement may be adjusted by the Wire Owner at any time and from time to time during the first four years of this Agreement if, in the Wire Owner's reasonable determination, the actual operational characteristics and production parameters of the Generator's Facility differ from the Wire Owner's initial assumptions. Such characteristics and parameters shall include, without limitation, the power factor of the Generator's Facility.

(d)  Up to May 31, 2004, the incremental resistive loss charge and/or payment specified in subsection (b) shall continue to apply; provided, however, that at any time and from time to time, the Generator may request by written notice to the Wire Owner that the Wire Owner conduct at the Generator's expense, or the Wire Owner may conduct on its own initiative and at its own expense, a review of the loss factor(s). If a review is requested by the Generator, such review shall be conducted by the Wire Owner within a reasonable period of time after receipt of written notice from the Generator. Any review of the loss factor(s) shall be based upon an assessment of the impact, at that time, of the operation of the Generator's Facility on the distribution line supplying the Generator's Facility. Such review may result, in the Wire Owner's reasonable determination, in a charge instead of a payment, or vice versa, or in a different loss factor, which may be zero. The Wire Owner shall provide thirty (30) days' notice to the Generator of the new charge and/or payment and the new loss factor(s) resulting from the review, prior to the same taking effect.

(e)  For greater certainty, this Section does not apply to incremental resistive losses or loss reductions on the Transmission System, in respect of which the Generator and the Transmission Administrator shall have a separate arrangement, if appropriate, for charges and payments.

11.  METERING, POLLING AND PROVISION OF METERING DATA

(a)  The Generator shall be responsible for all metering and polling with respect to the Generator's Facility. Metering shall include, without limitation, the installation and operation and maintenance of an electric or electronic bi-directional metering device to measure, on a 15 minute interval energy recording basis, active energy and reactive energy passing from the circuits of the Generator's Facility to the circuits of the Wire Owner's Facilities and, inversely, active energy and reactive energy passing from the circuits of the Wire Owner's Facilities to the circuits of the Generator's Facility. Polling shall mean the collection and processing of metering data and the reporting of such data to the Transmission Administrator and the Power Pool in accordance with the applicable requirements of those entities.

(b)  The Wire Owner shall perform neither metering nor polling on behalf of the Generator.

(c)  The Wire Owner shall have ownership of the meter if it performs metering on behalf of the Generator under subsection (b). Otherwise, the Generator shall have ownership of the meter.

(d)  The selection of meters, calibration of meters and handling of meter disputes shall be performed in accordance with the Electricity and Gas Inspection Act (Canada) (the "E&GI Act") and the regulations thereto, or such other amended or replacement legislation as may from time to time be enacted.

(e)  If the Generator owns the meter, the Wire Owner shall have the right to have the metering equipment tested and/or calibrated by the proper official designated by the E&GI Act. If such testing shows the metering equipment to be inaccurate, the Generator shall pay the costs of testing and/or calibration, as applicable. If such testing shows the metering equipment to be accurate, the Wire Owner shall pay the costs of testing. If the Wire Owner owns the meter, the Generator shall have the right to have the metering equipment tested and/or calibrated by the proper official designated by the E&GI Act. If such testing shows the metering equipment to be inaccurate, the Wire Owner shall pay the costs of testing and/or calibration, as applicable. If such testing shows the metering equipment to be accurate, the Generator shall pay the costs of testing.

The Generator shall read the meter and provide metering data to. the Wire Owner in a format and frequency as the Wire Owner may require. The Wire Owner may use the metering data: for its own internal use, including, without limitation, the calculation of line losses and the calculation of the Generator's Option I Reactive Power consumption (if applicable); for the purpose of fulfilling its obligations under this Agreement and to the Transmission Administrator and the Power Pool; and as required by law. For greater certainty, nothing in this subsection affects any obligation of the Generator to provide metering data to the Transmission Administrator or the Power Pool.

12.  RIGHT OF WAY AND ACCESS

(a)  The Generator shall provide, without cost to the Wire Owner, a satisfactory easement, space and location within the Generator's Facility, for the construction, maintenance and operation of any of the Interconnection Facilities that are located on the Generator's side of the Point of Interconnection, as more specifically described in the Operating Procedures.

(b)  During the term of this Agreement and for a reasonable period of time thereafter, the Generator shall provide to the Wire Owner reasonable access to the Generator's Facility for the purposes of metering (if metering is to be performed by the Wire Owner under subsection 11(b)), construction, operation, maintenance and removal of the Wire Owner's metering equipment and Interconnection Facilities that are located on the Generator's side of the Point of Interconnection, and the fulfillment of any other obligations of the Wire Owner under this Agreement.

(c)  Without limiting the generality of subsection (b), the Wire Owner may carry out such treating, brushing, trimming and cutting of trees as it deems necessary for the proper operation of the Wire Owner's Facilities and the Interconnection Facilities, and the Generator shall provide the Wire Owner with reasonable access to the Generator's Facility for such purpose.

13.  INSPECTION

In order to fulfill its obligations under this Agreement and to ensure that the Generator is complying with the provisions of this Agreement, the Wire Owner shall have the right, but not the obligation, to inspect the Generator's Facility from time to time. This right of inspection shall not relieve the Generator of any of its obligations under this Agreement. The Generator shall provide the Wire Owner with reasonable access to the Generator's Facility upon reasonable prior notice to enable the Wire Owner to conduct such inspections.

14.  FORCE MAJEURE

(a)  If, at anytime during the term of this Agreement, the operation of either of the Parties are suspended, curtailed or interfered with owing to an Act of God, war, rebellion, sabotage, fire or other causes beyond the reasonable control of any Party, such as strikes, differences with workmen or like causes (excepting and excluding however lack of finances or of market for the product of either of the Parties), the Party whose operations are suspended, curtailed or interfered with shall not be liable to the other under this Agreement until the cause or causes thereof have been removed, provided that;

(i)  the Party seeking to invoke the benefit of this clause promptly notifies the other Party in writing of the occurrences of the cause or causes and promptly and diligently proceeds to rectify such occurrence;

(ii)  each Party shall take all reasonable precautions and adopt all reasonable measures to prevent or remove the cause of such suspension, curtailment or interference; and

(iii)  the Party having invoked this Section under subsection (i) hereof shall give prompt notice of cessation of the cause thereof.

15.  LIABILITY AND INDEMNITY

(a)  Each Party (the "Indemnifying Party") agrees to indemnify and save harmless the other Party, its agents and employees from and against any and all damage, injury, loss, costs and claims suffered or incurred by the other Party, its agents or employees which are in any way connected with any failure of the Indemnifying Party to perform its obligations under this Agreement; provided, however, that such indemnity shall be limited to an amount in proportion to the degree to which the Indemnifying Party, its agents and employees are responsible.

(b)  Except to the extent to which each Party is required to indemnify and save harmless the other Party, its agents and employees under subsection (a) hereof, neither Party nor its agents nor employees shall be liable to the other Party for any damage, injury, loss, costs or claims suffered or incurred by the other Party, its agents or employees which are in any way connected with the performance or non-performance of this Agreement, howsoever and whensoever caused, and whether arising in contract or tort; and each Party hereby forever releases the other Party, its agents and employees from any liability in respect thereof.

(c)  Notwithstanding anything to the contrary contained herein, neither Party nor its agents nor employees shall be liable to the other Party for any damage, injury or loss of an indirect, consequential, special or incidental nature suffered by the other Party, its agents or employees which is in any way connected with the performance or non-performance of this Agreement, howsoever and whensoever caused, and whether arising in contract or tort, including, without limitation, loss of revenue, loss of profit, cost of capital and loss of use of any facilities or property owned, operated or used by the other Party.

(d)  The Generator shall also indemnify and save harmless the Wire Owner, its agents and employees from and against any and all damage, injury, loss, costs and claims resulting from:

(i)  notwithstanding subsection 7(d), Islanded Operation of the Generator's Facility;

(ii)  if direct or transfer tripping is not installed on the Wire Owner's Facilities or the Interconnection Facilities or, if installed, it fails to operate correctly, the failure of the Generator's Facility to detect and clear an electrical fault that occurs on the Wire Owner's Facilities or the Interconnection Facilities; and

(iii)  if live-line close blocking is not installed on the Wire Owner's Facilities or the Interconnection Facilities or, if installed, it fails to operate correctly, the failure of the Generator's Facility to shut down after disconnection from the Wire Owner's Facilities and before the automatic reclosing of the Wire Owner's switching devices; and

(iv)  asynchronous reclosing on the Generator's Facility

15.  GOVERNMENT APPROVALS

The Parties shall use all reasonable efforts to obtain and maintain all applicable government orders, permits, approvals, and consents required by law to perform their respective obligations under this Agreement

16.  DISPUTE RESOLUTION

A dispute, claim, question or difference which arises with respect to this Agreement that cannot be resolved at the operating level shall be referred to senior representatives of the Parties upon either Party requesting such a reference in writing

(a)  Where either Party has requested the reference of a dispute to senior representatives, the representatives shall employ such methods of resolution as they may agree to and shall make all reasonable efforts to resolve the dispute in a timely manner.

(b)  Where a dispute arises which has been referred to senior representatives and has not been resolved within 30 Business Days of the reference, the dispute may be referred by either Party to be resolved through arbitration conducted in accordance with the Arbitration Act (Alberta), as amended from time to time

(i)  All disputes or differences between the Parties to be resolved through arbitration pursuant to this Agreement shall be referred (unless the Parties concur in the appointment of a single arbitrator) to a board of arbitrators consisting of one (1) arbitrator to be appointed by each Party who shall, by instrument in writing, appoint a third arbitrator immediately after they are themselves appointed.

(ii)  The Parties shall be deemed to have failed to concur in the appointment of a single arbitrator if such an arbitrator shall not have been appointed within fifteen (15) days after the serving by either Party on the other of notice requesting it to concur in the appointment of such an arbitrator.

(iii)  If either Party shall neglect or refuse to appoint an arbitrator within fifteen (15) days after the other Party (provided such other Party has appointed its arbitrator) has served the Party with notice to make the appointment, the Party who has appointed its arbitrator shall be entitled to apply upon notice to the other Party to a Justice of the Court of Queen's Bench of Alberta to have him appoint an arbitrator for the Party in default

(iv)  If the arbitrators appointed by the Parties hereto have not, within fifteen (15) days after their appointment or the appointment of the arbitrator last appointed, as the case may be, appointed a third arbitrator, either Party shall be entitled to apply upon notice to the other Party to a Justice of the Court of Queen's Bench of Alberta to have him appoint such an arbitrator.

(v)  Any arbitrator appointed under the provisions of this clause whether by joint concurrence of the Parties, by either Party, by the arbitrators, or by a Justice of the Court of Queen's Bench of Alberta shall, in the opinion of the person or persons making such appointment, be possessed of such technical or other qualifications as may be reasonably necessary to enable him to property adjudicate upon the dispute or difference

(vi)  Except as herein modified, the provisions of the Arbitration Act (Alberta), as amended from time to time, shall apply to any arbitration proceeding.

(vii)  A decision of the single arbitrator or the majority of the three arbitrators named or appointed shall be final and binding upon each of the Parties to the dispute

Pending resolution of any dispute, each Party shall continue to perform its respective obligations under the Act and this Agreement.

18.  CONFIDENTIALITY

(a)  During the term of this Agreement, each Party agrees to keep confidential all data and information relating to this Agreement and the business and affairs of the other Party (including, without limitation, any data and information obtained from that other Party or exchanged between the Parties) ("Confidential Information"), except as provided herein and to the extent that such Confidential Information otherwise is in the public domain, is previously known to the receiving Party, is at any time lawfully obtained by the receiving Party from a third party without breach of any obligations of confidentiality, is independently developed by the receiving Party, the disclosing Party consents to the disclosure of Confidential Information (such consent not to be unreasonably withheld), the receiving Party is compelled to disclose Confidential Information to the Transmission Administrator or the Power Pool pursuant to applicable rules and requirements of those entities, or the receiving Party is legally compelled to disclose such data and information to a court, government department or agency, or regulatory authority in the proper exercise of its jurisdiction.

(b)  Each Party agrees that it shall make all reasonable efforts to limit internal disclosure of Confidential Information to only those of its employees, representatives, directors, contractors or agents who have a reasonable need to know the same to fulfill the obligations of such Party under this Agreement.

(c)  Each Party agrees that it shall take reasonable precautions to ensure that any employees, representatives, directors, contractors or agents (and any third persons to whom a Party discloses Confidential Information with the consent of the other Party) abide by the obligations of confidentiality hereunder and shall be liable to the other Party for any improper use or disclosure of Confidential Information by such persons.

(d)  Each Party agrees that it shall not use any Confidential Information other than for the purposes contemplated by this Agreement.

19.  GENERAL

(a)  This Agreement supersedes all agreements, oral or written, relating to the subject matter hereof, heretofore made by the Parties with respect to the subject matter hereof and, together with the Schedule attached thereto, represents the entire agreement between the Parties with respect to the matters contemplated herein. Except as expressly provided for herein, this Agreement may be amended or superseded only by written agreement of the Parties.

(b)  This Agreement shall be construed according to the laws of the Province of Alberta.

(c)  Neither Party may assign this Agreement without the express written consent of the other Party, which consent shall not be unreasonably withheld.

(d)  This Agreement shall enure to the benefit of and be binding upon the Parties, their successors and permitted assigns. The rights and remedies of the Parties under this Agreement are cumulative and in addition to any other rights and remedies that the Parties may have at law or in equity.

(e)  The liabilities of the Parties for breach of any covenants, representations or warranties, and any obligations of the Parties under any indemnity contained in this Agreement, shall survive termination of this Agreement except as otherwise expressly provided.

IN WITNESS WHEREOF the Parties hereto have executed this Agreement under the hands of their proper officers as of the day and year first above written.
AUTUMN INDEPENDENT POWER CORPORATION

Per:

Name:Byron Loewen

Title: President

Date: 01/12/01

UTILICORP NETWORKS CANADA (ALBERTA) LTD.

 

Per: ___________________________________________

Name:Deb Crossman, Manager

Title:Rates and Contracts Administration

Date:00/12/20

SCHEDULE A

Attached to and forming part of the Interconnection Agreement

 

Dated OCTOBER 1, 2000

BETWEEN

 

 

AUTUMN INDEPENDENT POWER CORPORATION

 

AND

 

UTILICORP NETWORKS CANADA (ALBERTA) LTD

 

 

OPERATING PROCEDURES.

 

 

1.  SCOPE

This Schedule provides specifics for the operation of the Interconnection Facilities interconnecting the circuits of the Autumn Independent Power Corporation's Generating Facility located at LSD 06-24-41-06-W5 (Willesden Green) and the circuits of the Wire Owner's Facilities.

This Schedule does not supersede any requirements outlined in Government Regulations such as, but not limited to, the Alberta Electrical and Communication Utility Code, the Canadian Electrical Code, and Occupational Health and Safety Act, nor does it supersede any terms of mutual agreements such as, but not limited to, the Agreement entered into between the Parties referenced on the title page of this Schedule.
2.  ATTACHMENTS

Attachments to this Schedule include

(a)  Single line diagram titled "Autumn Independent Power Corp. - 900kW Induction Generator" (Appendix A)

(b)  Harmonic Specification For Harmonic Producing Customers Connected to the UtiliCorp Networks Canada System, dated September 1, 2000 (Appendix B)

(c)  Voltage Flicker Chart, dated September l, 2000 (Appendix C)

3.  OPERATING AUTHORITY

The Operating Authority for each Party is the person identified by name or job title responsible to establish operating procedures and standards for that Party. The Operating Authority shall ensure that timely updates are made to this Schedule to reflect any changes to its content and any attachments included in this Schedule, in accordance with the provisions of the Agreement. In addition, the Operating Authority shall ensure that the operators of their facilities are competent in the operation of the electrical systems and are aware of the provisions of this Schedule and applicable regulations relating to the safe operation of electrical power systems.
(a)  The Operating Authority for the Generator is:

Mr. Gerald Caul

Senior Vice President

Autumn Independent Power Corporation

1004, 1708 Dolphin Avenue

Kelowna BC V1Y 9S4

Office: (250)-717-3707

Fax: (250)-717-3708

Cell: (250)-212-7170
(b)  The Operating Authority for the Wire Owner is:

Mr. John Holmes

Manager, Distribution Assets 

UtiliCorp Networks Canada (UNC)

1202 Centre Street South 

Calgary, Alberta T2G 5A5

Office: (403)-267-7180

Fax: (403)-267-3997

4.  OPERATOR-IN-CHARGE

The Operator-in-Charge for each Party is the person identified by name or job title responsible for the real time operation of the Interconnection Facilities for that Party.
(a)  the Operator-in-Charge for the Generator is:

Shane Eeiew

Penn West Petroleum

Phone: (403)-845-0786

Or

Alternate: Larry Spence

Penn West Petroleum

Phone: (403)-357-2490

Or

Supervisor: Bryan Reese

Penn West Petroleum

Phone: (403)-845-0745
(b)  the Operator-in-Charge for the Wire Owner is:

UNC Customer Services Lineman

This individual can be reached via UNC Dispatch

Phone: (403)-219-1172
5.  DESCRIPTION OF OPERATION:

The Generator's Facility consists of:

*  generator: Induction, 1250 HP, 600V, resistive grounded wye

*  transformer: 1500 kVA, 25kV grounded wye, 600V resistive grounded wye

*  main disconnect device to the Wire Owner's Facilities: 25kV Breaker designated 52U

*  other equipment: 2x600V breakers, 50-75 kVAR cap bank

The Wire Owner's Facilities consist of:

*  distribution line: 290L/206L/168L/3299T/2595T

*  source substation and breaker number: Willesden Green 68S, 68S290E

*  switching devices: as per SLD

Point of Interconnection:

The Point of Interconnection has been designated as switch #20B 166.

The Wire Owner's personnel are the only persons who have the authority to operate this device. This switch will also be used to isolate the generator from the Wire Owner's system.

Switching Procedure to Isolate Generator's Facility:

*  The Wire Owner Customer Service Lineman (CSL) will call the Generator's Operator-in-Charge to arrange for a shutdown of the Generator's Facility including load

*  Once the generator has been shutdown the Generator's Operator-in-Charge will immediately inform the Wire Owner CSL of its status

*  The Wire Owner CSL will then isolate the Generator's Facility

*  The isolation of the Generator's Facility will be done by the Wire Owner CSL opening, locking and tagging switch # 20B166 under his authority

*  Please note that if the Wire Owner's CSL arrives on site to find the generation still on line and the Generator's Operator-in-Charge is not available to shutdown the units. The Wire Owner CSL will proceed to shutdown the generation by opening, locking and tagging switch # 20B166 under his authority.

Switching Procedure to Re-connect Generator's Facility:

*  The Wire Owner CSL will contact the Generator's Operator-in-Charge and request for the Generator Operator's permission to energize the Generator's Facilities

*  Only after receiving this permission can the Wire Owner CSL proceed with closing switch #20B166

*  The Wire Owner CSL will call the Generator's Operator-in-Charge immediately after removing his lock and tag and closing switch # 20B166 to inform them that the system is now prepared for them to re-connect. 

Request to Re-Connect:

Following any event that resulted in the disconnection of the Generation Facilities from the Distribution Facilities, the Generator's Operator in Charge must contact and obtain permission from the Wire Owner's Operator in Charge to connect to the Distribution Facilities. Under no circumstance shall the Generator's facilities be connected to the Wire Owner's system before such permission is received.

Synchronization:

The Generator's Facility is designed to operate interconnected to the Wire Owner's Facilities, with synchronizing schemes provided on the Generator's equipment. It is recognized by the Generator that there are no synchronization schemes in place on the Wire Owner's Facilities, and that the Wire Owner's upstream facilities contain equipment that will provide voltage regulation and/or automatic reclosing. 

Anti-islanding Protection:

The Generator's Facility shall not operate as an electrical island. In the event that the Wire Owner's electrical sources to the Generator's Facility become de-energized, the Generator's Facility must be able to disconnect from the Wire Owner's Facilities quickly, before automatic reclosing devices on the Wire Owner's system can operate. 

1.  Other Anti-Islanding Protection:

Over-frequency:  61 Hz with 1 second time delay

Under-frequency:  59.5 Hz with 0.5 second time delay

Over-voltage:  132V (@120V base) with 0.3 seconds time delay 

Under-voltage:  100V (@120V base) with 1 second time delay 
6.  POWER QUALITY STANDARDS

The Generator must demonstrate its compliance with the following power quality requirements: 

Voltage & Voltage Regulation: 

The Generator's Facility shall not adversely affect the voltage and voltage regulation on any part of the Wire Owner's Facilities. At the Point of Interconnection, the Generator's three-phase voltages must conform to CSA CAN3-C235-83.

Harmonics:

The Generator must not cause an unacceptable level of harmonics during operation of the Generator's Facility. Limits on acceptable voltage and current distortion, telephone interference limits, measurement approaches and mitigation suggestions are detailed in the attached Harmonic Specification For Harmonic Producing Customers Connected to the UtiliCorp Networks Canada System, which is included as Appendix B to this Schedule.

Voltage Fluctuations: 

The Generator must not cause an unacceptable level of voltage fluctuation during starting, operation, or shutdown of the Generator's Facility. The Wire Owner's standard on voltage flicker limits are shown in the Voltage Flicker Limits Chart that is included as Appendix C to this Schedule.
7.  SUSPENSION OF INTERCONNECTION

If the operation of the Generator's Facility or quality of electric energy supplied does not meet operating standards as specified, the Wire Owner has the right to take reasonable and expedient corrective action in accordance with the Agreement, including but not limited to the right to disconnect the Generator's Facility until compliance is demonstrated.

If the Generator is not meeting the operating requirements of the Wire Owner, the Generator's Operating Authority must provide written documentation to the Wire Owner's Operating Authority detailing the reason for non-compliance and corrective measures taken. The Wire Owner's Operating Authority shall subsequently provide a written response to the Generator's Operating Authority to either grant continued connection or re-connection of the Generator's Facility to the Wire Owner's Facilities, or, in the event that the Wire Owner's Operating Authority is not satisfied with the resolution, request an acceptable resolution and maintain the right to disconnect or continue the disconnection of the Generator's Facility.
8.  SAFE WORK PLANNING:

Safe work planning procedures such as pre job plans and tailboard meetings, will be followed where both Parties are involved in work. Nothing in this document should be interpreted as to change the intent of the Wire Owner's safe operating practices and procedures. Any contradictions between the Parties regarding practices or procedures are to be identified and resolved prior to work commencing. 

Safe work routines described in Division D of the Electrical and Communication Utility Systems Regulations (AECUC) shall be followed in providing isolation for work on any part of the Interconnected Electric System.
9.  MAINTENANCE OUTAGES:

Outages will be coordinated by the Operator-in-Charge for each of the Parties. The Generator should be aware the Wire Owner would isolate the Generator's facility when a Guarantee Of Isolation or a recloser blockage on the system is required.
10.  ACCESS

Access or inspections will be arranged by the Operator-in-Charge for each of the Parties.
11.  NOTICE OF CHANGES TO PROTECTION & CONTROL:

The Generator's Operating Authority shall notify the Wire Owner's Operating Authority in writing of any intention to alter the settings on any protection and control devices that could affect the Wire Owner's Facilities and the final settings shall be established by mutual agreement between the Parties in accordance with the amendment provisions of the Agreement

APPROVED BY: 

UTILICORP NET WORKS CANADA OPERATING AUTHORITY 

"John Holmes"

Name: Mr. John Holmes, P. Eng

Titel: Manager, Distribution Assest

Date: "Sept 20, 2000"

 

AUTUMN INDEPENDENT POWER CORPORATION OPERATING

"Gerald B. Caul"

Name: Mr. Gerald B. Caul

Title: Senior Vice President

Date: "Jan 12, 2001"

APPENDIX A

 

Single Line Diagram

APPENDIX B

Harmonic Specification For Harmonic Producing Customers Connected to the UtiliCorp Networks Canada System

September 1, 2000

1.0  Introduction 

The purpose of this document is to establish the responsibilities for the control of harmonic distortions at the point of influence between UtiliCorp Networks Canada and its customers. 

1.  Limits are defined on the type and amount of harmonic distortion that a customer installation may induce into the power system. 

2.  This document also defines the responsibilities of UtiliCorp Networks Canada in providing and administering interconnections for harmonic producing customers (HPC's) and in defining and administering limits for the total harmonic distortion allowable on the system 

A recommended reference is IEEE Standard 519 "Recommended Practices and Requirements for Harmonic Control in Electric Power Systems".

2.0  Definitions And Terms

2.1  Point of Influence (POI) 

The point of influence is defined as the UtiliCorp Networks Canada point closest to the harmonic producing customer which is also common to other UtiliCorp Networks Canada customers. Normally, the primary terminals of the customer supply transformer would be the point of influence. In some cases, where the supply to a customer is taken from one winding of a transformer with two or more secondary windings, the point of influence would also include the other secondary winding terminals. 

Harmonic producing customers (HPC's) have also been divided into two categories, based on size - HPC's less than 1000 HP and HPC's greater than 1000 HP. The administration of the harmonic limits has been modified for each of these two categories and is described under the section covering distortion limits. 

In either case, the designation refers to a single harmonic producer or an installation of several harmonic producers totally less than or greater than 1000 HP, connected to UtiliCorp Networks Canada through a common point of influence (CPOI). Normally, the common point of influence would be the primary of the transformer supplying the customer as described above. In some cases, this could also be defined as a nodal point on the primary system common to several harmonic producers. UtiliCorp Networks Canada shall identify the CPOI in each case.

2.2  Individual Harmonic Distortion (ID)

The individual harmonic distortion values of a waveform are the magnitudes of the distortion at each individual harmonic. The value of ID is usually expressed in both voltage and current as a percentage of the fundamental of 60 Hz component.

Total Harmonic Distortion (THD)

The total harmonic distortion of a waveform is the Root-Sum-Square of the magnitudes of each individual harmonic distortion, divided by the magnitude of the fundamental or 60 Hz component. The value of THD is usually expressed in both voltage and current as a percentage of the fundamental component.

	
THD (voltage) = 
	
(V2/2 +V 2/3 +...+V2/n)

	 	
V1

	
THD (current) = 
	
(I2/2 +I 2/3 +...+I2/n)

	 	
I1

2.4  I*T Product 

The I*T is the product of the RMS value of the current waveform (I) and the TIF of the current waveform (T). 

I*T = Harmonic Current (Amps) x Telephone Influence Weighting Factor = Weighted Amps 

The "Balanced I*T" is the I*T value of the positive and negative sequence currents per phase. 

The "Residual I*T" is the I*T value of the zero sequence or neutral (ground return) current.

The overall I*T value for a waveform, whether it be balanced or residual, is the Root Sum Square (RSS) of the individual I*T's for each harmonic and the fundamental. 

3.0  Voltage Distortion Limits

3.1  System Voltage Distortion 

UtiliCorp Networks Canada shall normally maintain the voltage distortion at the POI to a maximum of the following values: 

Table 3.1

Maximum System Voltage Distortion at Point of Influence

	
Nominal Bus Voltage
	
%ID
	
%THD

	
25 kV or less
	
3.0
	
5.0

	
69 kV
	
1.5
	
2.5

	
138 kV
	
1.5
	
2.5

	
240 kV
	
1.0
	
1.5

Calculated Voltage Distortion Limits - HPC's < 1000 HP

At the design stage, customer shall satisfy UtiliCorp Networks Canada that calculated values for voltage distortion at the POI shall not exceed the following limits as a percentage of the fundamental:

Table 3.2

Calculated Voltage Distortion Limits - HPC's < 1000 HP

	
Nominal Bus Voltage
	
%ID
	
%TD

	
25kV or less
	
4.0
	
6.0

For HPC's under 1000 HP, these voltage distortion values shall be calculated with the POI assumed to be an open circuit. 

Calculated Voltage Distortion Limits - HPC's < 1000 HP

At the design stage, the customer shall satisfy UtiliCorp Networks Canada that calculated values for voltage distortion at the POI shall not exceed the following limits as a percentage of the fundamental. 

Table 3.3

Calculated Voltage Distortion Limits - HPC's > 1000 HP

	
Nominal Bus Voltage
	
%ID
	
%TD

	
25kV or less
	
4.0
	
6.0

	
69 kV
	
2.0
	
3.0

	
138 kV
	
2.0
	
3.0

	
240 kV
	
1.5
	
2.0

These calculated values shall be determined using a harmonic impedance envelope representing the utility system as viewed from the POI.  This envelope will be provided by UtiliCorp Networks Canada and will be based on a number of varying system conditions and configurations, including provision for future utility system additions.  The maximum voltage distortion value shall be the largest value obtained from examining both of the following two conditions:

	
(i)
	
Condition 1 - The individual harmonic distortions (ID) shall be calculated by selecting the value of the utility impedance within the envelope which maximizes each harmonic voltage individually. 

	 	 
	 	
The calculated value for total harmonic distortion (THD) shall be based on the simultaneous occurrence of the two worst harmonic resonance conditions on the utility system viewed from the POI.  These two resonances shall be determined independently from each other, utilizing the harmonic impedance envelope described above.  All remaining harmonic orders shall be calculated with the POI assumed to be an open circuit. 

	
(ii)
	
Condition 2 - In this calculation, all harmonic orders shall be calculated with the POI assumed to be an open circuit.

 

In addition, these calculations shall include the assumption that the voltage distortion on the UtiliCorp Networks Canada system may equal, but will not exceed the following limits:

Table 3.4

Maximum System Voltage Distortion at the Point of Influence

	
Nominal Bus Voltage
	
%ID
	
%TD

	
25kV or less
	
2.0
	
3.0

	
69 kV
	
1.0
	
2.0

	
138 kV
	
1.0
	
2.0

	
240 kV
	
1.0
	
1.5

Basic Current Distortion Limits

Basic Current Limits - HPC's <1000 HP

Same as Section 4.2

Basic Current Limits - HPC's > 1000HP

All harmonic current values shall be calculated assuming a fundamental frequency phase voltage unbalance at the POI which is equal to a negative phase sequence component of 2.0%.

At the design stage, the customer shall satisfy UtiliCorp Networks Canada that calculated values for current distortion shall not exceed the following limits as a percentage of the fundamental:

Table 4.1

Basic Current Limits

	
S
	
%ID

H<9
	
%ID

9<H<23
	
%ID

23<H<35
	
%ID

35<H
	
%THD

	
Up to 20
	
4.0
	
1.5
	
1.0
	
0.5
	
5.0

	
20-50
	
7.0
	
2.5
	
1.5
	
0.8
	
8.0

	
50-100
	
10.0
	
4.0
	
2.0
	
1.2
	
12.0

	
100-1000
	
12.0
	
5.0
	
2.5
	
1.5
	
15.0

	
>1000
	
15.0
	
8.0
	
4.0
	
1.8
	
20.0

S: Short Circuit Ratio (ratio of maximum short circuit current to maximum load current of the HPC).

H: Harmonic Order (ratio of harmonic frequency to fundamental frequency) including non-integer harmonic orders.

5.0  Telephone Interference Limits

In addition to the basic current limits, the following I*T limits must be met.

I*T Limits - HPC's <1000 HP

At the design stage, the supplier of the customer's harmonic filters shall satisfy UtiliCorp Networks Canada that calculated values for I*T will not exceed the following limits:

Table 5.1

I*T Limits - HPC's <1000 HP

	
Nominal Bus Voltage
	
Balanced I*T
	
Residual I*T

	
25 kV or less
	
1500
	
100

The performance calculations shall be made with the assumption that the POI is a short circuit. Since this is a simplistic design method, the balanced I*T limit for HPC's less than 1000 HP will normally remain 1500.

I*T Limits - HPC's > 1000 HP

For HPC's larger than 1000 HP, UtiliCorp Networks Canada shall provide balanced and residual I*T limits for each specific application. These limits shall be determined from a number of factors including location, pre-existing HPC's, etc. Normally, the available limits will exceed those in Table 5.2. Table 5.2 represents the minimum values expected at the respective voltage levels.

I*T Limits - HPC's > 1000 HP

For HPC's larger than 1000 HP, UtiliCorp Networks Canada shall provide balanced and residual I*T limits for each specific application. These limits shall be determined from a number of factors including location, pre-existing HPC's, etc. Normally, the available limits will exceed those in Table 5.2. Table 5.2 represents the minimum values expected at the respective voltage levels.

Table 5.2

Maximum I*T Limits - HPC's> 1000 HP

	
Nominal Bus Voltage
	
Balanced I*T
	
Residual I*T

	
25 kV or less
	
1500
	
100

	
69 kV
	
2000
	
100

	
138 kV
	
3000
	
100

	
240 kV
	
5000
	
100

At the design stage, the customer shall satisfy UtiliCorp Networks Canada that the calculated values for I*T shall not exceed the assigned limits under the following criteria:

	
(i)
	
Using the harmonic impedance envelope of the utility system, determine two characteristic and two non-characteristic harmonics which individually maximize the total I*T values. 

	
(ii)
	
The I*T contributions of all other harmonic orders shall be calculated using the simple harmonic impedance of the utility system under fixed, normally operating conditions. 

6.0  Engineering Information

6.1  System Harmonic Impedance Information

UtiliCorp Networks Canada shall supply harmonic impedance information to all HPC's greater than 1000 HP, in the form of a harmonic impedance envelope. The harmonic impedance envelope shall be based on normal system operating conditions and shall be calculated to the POI, and to the customer's supply voltage bus when the supply transformer is, provided by UtiliCorp Networks Canada.

Normal system operating conditions shall include those conditions which exist at the time that the customer load is added to the system and also any system changes which are likely to occur within the next five years

Normal system operating conditions shall also include single contingency outage conditions as determined by UtiliCorp Networks Canada.

The harmonic impedance information will be calculated using power system data and will include shunt capacitor and filter bank installations which exist at other customer facilities in the area.

UtiliCorp Networks Canada will also supply harmonic impedance information to HPC's less than 1000 HP if requested.

6.2  Review of Installation Design

As stated in Sections 3.0, 4.0, and 5.0 UtiliCorp Networks Canada will review the design of the installation to confirm that the design is adequate to meet the harmonic current limits at the point of influence. UtiliCorp Networks Canada shall not accept responsibility for the design of the customer's facilities except in respect of reviewing its harmonic distortion impact.

7.0  Measurements And Mitigation Of Harmonic Problems

7.1  Measurement Procedure

To confirm that the harmonic voltage and current distortion is within specified limits, UtiliCorp Networks Canada will perform measurements at the customer's supply facilities. Where practical, the measurements will be taken from the POI. (The measurements may be taken elsewhere and calculated to the POI.)

The measurements will be performed in such a manner that the harmonic voltage, current, and power flow up to the 50" harmonic is determined. These measurements shall be the basis for mitigation of problems caused by harmonic distortion.

7.2  Mitigation of Problems

7.2.1  Voltage Distortion Limits Exceeded

The customer is responsible to ensure that the filter installation complies with the design submitted to UtiliCorp Networks Canada in accordance with Section 3.2 or Section 3.3 as appropriate.

If the voltage distortion limits are exceeded initially, or under subsequent system conditions which were included in the harmonic impedance information, the customer is responsible for reducing the voltage distortion.

For changes made to the supply system outside the scope of the harmonic impedance information initially provided to the customer, UtiliCorp Networks Canada is responsible for reducing the voltage distortion.

7.2.2  Current Distortion Limits Exceeded

(i)  Current Distortion Limits Exceeded Initially

If the current distortion limits are exceeded initially, or under subsequent system conditions which were included in the harmonic impedance information, the customer is responsible for reducing the current distortion.

(ii)  Current Distortion Limits Exceeded After Changes to Supply System

For changes made to the supply system outside the scope of the harmonic impedance information initially provided to the customer, UtiliCorp Networks Canada is responsible for reducing the current distortion.

7.2.3  Telephone Interference Complaints

In the event that the operation of the power system is causing interference with the Communication Common Carrier's facilities, the mitigation procedures will be as follows:

(i)  Customer Limits Exceeded Initially

If the I*T limits are exceeded initially, or under subsequent system conditions which were included in the harmonic impedance information, the customer is responsible for reducing the current distortion. 

(ii)  Customer Limits Not Exceeded 

UtiliCorp Networks Canada is responsible for reducing the telephone interference.

 

APPENDIX C

 

 

 

 

Voltage Flicker Limits

 

 

 

 

Chart September 1, 2000

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