INTERCONNECTION AGREEMENT FOR NET BILLING FOR RENEWABLE ELECTRICAL GENERATING FACILITIES OF ONE MEGAWATT OR LESS

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1 INTERCONNECTION AGREEMENT FOR NET BILLING FOR RENEWABLE ELECTRICAL GENERATING FACILITIES OF ONE MEGAWATT OR LESS

2 TABLE OF CONTENTS SECTION TITLE PAGE 1. CUSTOMER-GENERATOR RENEWABLE ELECTRICAL GENERATING FACILITY 3 2. NET BILLING 3 3. INTERRUPTION OR REDUCTION OF DELIVERIES 3 4. INTERCONNECTION 4 5. MAINTENANCE AND PERMITS 4 6. ACCESS TO PREMISES 5 7. INDEMNITY AND LIABILITY 5 8. INSURANCE 6 9. GOVERNING LAW AMENDMENTS, MODIFICATIONS OR WAIVER APPENDICES NOTICES TERM OF AGREEMENT SIGNATURES 8 APPENDICES A INTERCONNECTION STANDARDS 2

3 ( Customer-Generator ), and IMPERIAL IRRIGATION DISTRICT (IID), referred to collectively as Parties and individually as Party, agree as follows: 1. CUSTOMER-GENERATOR SOLAR OR WIND ELECTRIC GENERATING FACILITY 1.1 Operating Option - Customer-Generator has elected to interconnect and operate its renewable electrical generating facility, as such facility is defined in Section 25741(a)(1) of the California Public Resources Code (hereinafter the Facility ), in parallel with the electric grid. The renewable electrical generating facility is intended primarily to offset part or all of the Customer-Generator s own electrical requirements. 1.2 Customer-Generator Information: Customer Account Name Customer Account Number Customer Meter Number Generating Facility Location CEC-AC Rating kw 1.3 Facility will be ready for operation on or about (date) 2. NET BILLING 2.1 The Energy Charge identified and provided for on the applicable regularly filed tariff schedule shall be computed based upon energy supplied by the utility to the customer-generator. The customer-generator shall pay the balance owed in accordance with IID s normal monthly billing cycle. 2.2 Any generation provided to the IID grid will be compensated on each billing period according to the Distributive Self-Generation Service rate. As determined by the district, this rate shall be adjusted as needed. 3. INTERRUPTION OR REDUCTION OF DELIVERIES 3.1 IID shall not be obligated to accept or pay for and may require Customer- Generator to interrupt or reduce deliveries of available energy under the following conditions: a. when IID determines, in its sole discretion, that it is necessary in order to construct, install, maintain, repair, replace, remove, investigate, or inspect any of its equipment or part of its system; or 3

4 b. if IID determines, in its sole discretion, that curtailment, interruption, or reduction is necessary because of emergencies, forced outages, force majeure, or compliance with prudent electrical practices. 3.2 Whenever possible, IID shall give Customer-Generator reasonable notice of the possibility that interruption or reduction of deliveries may be required. 3.3 Notwithstanding any other provision of this Agreement, if at any time IID determines that either (a) the Facility, or its operation, may endanger IID personnel, or (b) the continued operation of Customer-Generator s facility may endanger the integrity of IID s electric system, IID shall have the right to disconnect Customer-Generator s Facility from IID s system. Customer- Generator s Facility shall remain disconnected until such time as IID is satisfied that the condition(s) referenced in (a) or (b) of Section 3.1 have been corrected. 4. INTERCONNECTION 4.1 Customer-Generator shall deliver the available energy to IID at the utility s meter. 4.2 The Customer-Generator shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electrical flow in two directions. A dual meter socket with separate meters to monitor the flow of electricity in each direction may be required. If the Customer-Generator refuses consent for dual metering, and due to billing purposes a single bi-directional meter cannot be installed, IID shall have the right to refuse interconnection. 4.3 Customer-Generator shall not commence parallel operation of the Facility until written approval of the interconnection facilities has been given by IID. IID shall provide written approval within ten (10) working days from the utility s receipt of the inspection clearance of the governmental authority having jurisdiction. Such approval shall not be unreasonably withheld. IID shall have the right to have representatives present at the initial testing of Customer-Generator s protective apparatus. Customer-Generator shall notify IID five (5) working days prior to the initial testing. 4.4 Customer-Generator shall notify IID of any upgrades or changes to their facilities. 5. MAINTENANCE AND PERMITS Customer-Generator shall: (a) maintain the Facility and interconnection facilities in a safe and prudent manner and in conformance with all applicable laws and regulations including, but not limited to, IID s Interconnection Standards attached hereto as Appendix A, and (b) obtain any governmental authorizations and permits required for the construction and operation of the Facility and interconnection facilities. Customer-Generator shall reimburse IID for any and all losses, damages, claims, penalties, or liability it incurs as a result of Customer- 4

5 Generator s failure to obtain or maintain any governmental authorizations and permits required for construction and operation of Customer-Generator s Facility. 6. ACCESS TO PREMISES IID may enter Customer-Generator s premises: (a) to inspect, at reasonable hours, Customer-Generator s protective devices and read or test meters, and (b) to disconnect, without notice, the interconnection facilities if, in IID s opinion, a hazardous condition exists and such immediate action is necessary to protect persons, or IID s facilities, or property of others from damage or interference caused by Customer-Generator s renewable electrical generating facilities, or lack of properly operating protective devices. 7. INDEMNITY AND LIABILITY 7.1 Each Party as indemnifier shall defend, save harmless and indemnify the other Party and the directors, officers, employees, and agents of such other Party against and from any and all loss, liability, damage, claim, cost, charge, demand, or expense (including and direct, or consequential loss, liability, damage, claim, cost, charge, demand, or expense, including attorney s fees) for injury or death to persons including employees of either Party and damage to property including property of either Party arising out of or in connection with (a) the engineering, design, construction, maintenance, repair, operation, supervision, inspection, testing, protection or ownership of, or (b) the making of replacements, additions, betterments to, or reconstruction of, the indemnifier s facilities; provided, however, Customer-Generator s duty to indemnify IID hereunder shall not extend to loss, liability, damage, claim, cost, charge, demand, or expense resulting from interruptions in electrical service to IID s customer other than Customer- Generator. This indemnity shall apply, notwithstanding the active or passive negligence of the indemnified. However, neither Party shall be indemnified hereunder for its loss, liability, damage, claim, cost, charge, demand, or expense resulting from its sole negligence or willful misconduct. 7.2 The provisions of this Section shall not be construed to relieve any insurer of its obligations to pay any insurance claims in accordance with the provisions of any valid insurance policy. 7.3 Except as otherwise provided in Section 7.1 neither Party shall be liable to the other Party for consequential damages incurred by that Party. 7.4 If Customer-Generator fails to comply with the insurance provisions of this Agreement, Customer-Generator shall, at its own cost, defend, save harmless and indemnify IID, its directors, officers, employees, agents, assignees, and successors in interest from and against any and all loss, liability, damage, claim, cost, charge, demand, or expense of any kind or nature (including attorney s fees and other costs of litigation) resulting from the death or injury to any person or damage to any property, including the personnel and property of IID, to the extent that 5

6 IID would have been protected had Customer-Generator complied with all such insurance provisions. The inclusion of this Section 7.4 is not intended to create any expressed or implied right in Customer-Generator to elect not to provide any such required insurance, nor create any limitation with respect to indemnity as provided in Section INSURANCE 8.1 To the extent that Customer-Generator has currently in force all risk property insurance and comprehensive personal liability insurance, Customer-Generator agrees that it will maintain such insurance in force for the duration of this Agreement in no less amounts than those currently in effect. IID shall have the right to inspect or obtain a copy of the original policy or policies of insurance prior to commencing operation. 8.2 Customer-Generators shall meet the standards and rules set forth in Section 5, have the appropriate liability insurance required in Section 8.1 and shall not be required to purchase any additional liability insurance. Such insurance required in Section 8.1 shall, by endorsement to the policy or policies, provide for thirty (30) calendar days written notice to IID prior to cancellation, termination, alteration, or material change of such insurance. 9. GOVERNING LAW This Agreement shall be interpreted, governed, and construed under the laws of the State of California as if executed and to be performed wholly within the State of California. The venue for any action arising under this Agreement shall be Imperial County Superior Court, Imperial County, CA. 10. AMENDMENTS, MODIFICATIONS OR WAIVER Any amendments or modifications to this Agreement shall be in writing and agreed to by both Parties. The failure of any Party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by any Party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, shall be deemed to be construed as a further or continuing waiver of any such breach or a waiver of the breach of any other term or covenant unless such waiver is in writing. 11. APPENDICES This Agreement includes the following appendices, which are attached and incorporated by reference: Appendix A: Interconnection Standards 12. NOTICES - All written notices shall be directed as follows: 6

7 IMPERIAL IRRIGATION DISTRICT: Energy Management & Strategic Marketing Imperial Irrigation District 333 E. Barioni Boulevard Imperial, CA CUSTOMER-GENERATOR: Name Address City, State, Zip Attn. Customer-Generator s notices to IID pursuant to this Section 12 shall refer to CEC-AC rating set forth in Section TERM OF AGREEMENT This Agreement shall become effective as of the last date set forth in Section 14 and shall continue in full force and effect until terminated by either Party providing 30 days prior written notice to the other Party in accordance with Section 12. This Agreement may be terminated prior to 30 days by agreement of both Parties. /// /// /// 7

8 14. SIGNATURES IN WITNESS WHEREOF, the Parties hereto have caused two originals of this Agreement to be executed by their duly authorized representatives. This Agreement is effective as of the last date set forth below. CUSTOMER-GENERATOR Name By (Signature) Type/Print Name Title Date IMPERIAL IRRIGATION DISTRICT Name By (Signature) Type/Print Name Title Date 8

9 A. GENERAL APPENDIX A INTERCONNECTION STANDARDS This Appendix sets forth the requirements and conditions for interconnected non utility-owned, solar or wind electric generation where such generation may be connected for parallel operation with the service of IID. For purposes of this Appendix, the interconnecting entity shall be designated Customer-Generator. B. DESIGN REQUIREMENTS Customer-Generator shall conform to all applicable solar or wind electrical generating system safety and performance standards established by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and accredited testing laboratories such as Underwriters Laboratories (UL), and where applicable, rules of the Public Utilities Commission regarding safety and reliability, and applicable building codes. This requirement shall include, but not be limited to, the provisions of IEEE Standard 929 and UL Standard A customer-generator whose solar or wind electrical generating system, or a hybrid system of both, meets those standards and rules shall not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance. IID requires a manual visible-blade, load-break disconnect switch for the PV system ac output, lockable in the open position. This switch should be installed within 15 feet of the service meter panel and within plain sight of the meter. Disconnect switches that meet these requirements do not need specific approval of IID personnel. Any switch location that does not meet these criteria must be specifically approved by IID personnel prior to installation. The switch must be capable of being locked in the open position and provide for visible verification. This will help ensure the disconnection of the generation facilities when required by IID. The meter panel and switch must be labeled with a metal or plastic plaque, with engraved or machine printed letters in a contrasting color to the plaque, and shall be attached to the panel with pop-rivets, screws, or epoxy. The lettering is to a minimum of ¼ in height; with the CAUTION lettering a minimum of ½ in height. It is suggested that an additional plaque be installed on the inside face of the panel to serve as a caution if the panel cover has been removed for some reason. 9

10 APPENDIX A INTERCONNECTION STANDARDS (Continued) B. DESIGN REQUIREMENTS (Continued) The text for the plaques shall include the following applicable descriptions: CAUTION THIS SERVICE IS SERVED BY AN ALTERNATE SOURCE OF POWER. CAUTION SOLAR PV SYSTEM DISCONNECT - AC CAUTION SOLAR PV SYSTEM DISCONNECT DC 10

2. IDENTITY AND LOCATION OF GC

2. IDENTITY AND LOCATION OF GC INTERCONNECTION AND NET ENERGY METERING AGREEMENT FOR LARGE COMMERCIAL CUSTOMERS OF A SOLAR, WIND OR HYBRID OF BOTH GENERATING FACILITY HAVING A CAPACITY OF 30 KW TO 1,000 KW DECLARATIONS This Interconnection