Advice Notice No. 21

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Norah Ferguson
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1 Page 1 of 11 RESCIND IN ENTIRITY AND RELY ON TARIFF #13 APPLICABILITY This Tariff ( Standard Tariff ) is applicable to a Qualifying Facility ( QF ) as defined in 1.4 (G) of General Order No. 37 ( GO 37 ) within the Cooperative s service area and which has an installed capacity of 100 kilowatts or less. INTERCONNECTION The cooperative shall interconnect with a QF, which meets the conditions of GO 37, 2.1, within the time period specified to GO 37, 2.2. The QF must execute a contract ( Contract ) with the Cooperative substantially in the form appearing in the 11 of this Standard Tariff and meet the requirements of this Standard Tariff. The Cooperative may require certification that the customer is a Qualifying Facility under 18 CFR, Part 292. ENERGY SALES AND PURCHASES The Cooperative shall purchase energy from a QF according to this Standard Tariff and the Contract. Electric service to the QF shall be in accordance with any contract with the QF, the rules and regulations of the Cooperative and the tariffs applicable to the class of customers to which the QF would be assigned if it did not have its own generation, unless the QF s load and cost characteristics are significantly different. If the QF is a member of the Cooperative, applicable provisions of the articles and bylaws shall apply. RATES FOR PURCHASES Unless a capacity credit or different energy rate is negotiated between the QF and the Cooperative or the QF selects the load displacement metering option under 5 of this Standard Tariff, energy delivered to the Cooperative at the Delivery Point shall be paid at the same rate ( Standard Rate ) for each kilowatt-hour delivered as the average energy portion of the wholesale rates that the Cooperative paid its wholesale supplier(s) for power and energy delivered to the Cooperative by the same supplier (s) during the same period. The energy portion shall be the energy rate plus any fuel or purchased power adjustment under tariffs approved by the New Mexico Public Service Commission or Federal Energy Regulatory Commission, as applicable, exclusive

2 Page 2 of 11 of any demand (capacity) charges or any other costs which do not vary on a short-term basis with the amount of electricity purchased. Any negotiated agreement for a different rate than the Standard Rate shall meet the general principles and conditions of GQ 37, and negotiations may be initiated by either the QF or the Cooperative. METERING OPTIONS In the contract, the QF shall select one of the following metering options: A. Load displacement metering: The Cooperative shall interconnect with a single meter installed to measure flow from the Cooperative to the QF. The QF will not be paid for any electric power and energy delivered to the Cooperative. The terms and conditions of electric service by the Cooperative shall not be affected. B. Net metering: The Cooperative shall interconnect with a meter installed to measure separately the energy generated by the QF. The Cooperative then shall calculate net energy delivered to or by the QF. The terms and conditions of electric service by the cooperative shall not be affected except that charges for the billing period shall be reduced or offset by energy delivered to the Cooperative at the Standard Rate. The Cooperative shall purchase the net energy supplied by the QF above that delivered by the Cooperative at the Standard Rate. C. Separate load (simultaneous buy/sell) metering: The Cooperative shall interconnect with a meter installed to measure separately all power and energy delivered by the QF and the Cooperative, respectively. The terms and conditions of electric service by the Cooperative shall not be affected. The energy delivered by the QF shall be purchased at the Standard Rate. In the event that the QF shall select a metering option other than load displacement (A), a customer charge of $ 5.00 per monthly billing period, to cover the added costs of billing and administration, shall be applicable. Any payment to the QF may be reduced by the amount of such customer charge. To the extent that payment by the Cooperative under the Standard Rate does not cover the customer charge for any billing period, the deficiency may be added to and be payable with the Cooperative s billing for service to the QF or, at the Cooperative s option, be carried forward as a reduction for energy delivered by the QF during future billing periods.

3 Page 3 of 11 PERIODS DURING WHICH PURCHASES AND SALES ARE NOT REQUIRED: The Cooperative, at its option, may disconnect the QF from its system if, in its sole opinion, continued operation of the QF in connection with the Cooperative s system may create or contribute to a system emergency, unsafe condition or interference with the service of other customers. The Cooperative may discontinue purchases during any period which, due to the operational circumstances, purchases from QFs will result in costs greater than those which the Cooperative would incur if it did not make such purchases, but instead generated an equivalent amount of energy itself. Disconnection and discontinuance of purchases pursuant to this 6 shall be subject to GO 37, 8. INTERCONNECTION AND SAFETY STANDARDS: The following minimum standards govern the installation, operation and maintenance of the protective equipment required to integrate the QF into the Cooperative s system: A. The QF shall install, operate and maintain adequate safety and protective devices, as approved by the Cooperative, on the QF side of the Delivery Point to protect the respective systems from adverse conditions on the other s system, to protect the equipment, contracttors and personnel of the QF, the Cooperative and to protect family members, employees, agents, contractors, licensees and invitees of the QF. The QF shall comply with the National Electric Code, the National Electric Safety Code, Occupational Safety and Health Act requirements and any applicable utility service standards, including those of the Rural Electrification Administration. The contract may specify particular additional standards. B. The QF shall furnish complete descriptive and technical data on its qualifying facilities prior to any interconnection, and the plans, specifications and operating characteristics for the QF and interconnection must be approved by the Cooperative. Included should be a complete set of electrical diagrams, a site plan, complete listing of electrical parameters, a description of the protective equipment, a range of settings and fuse characteristics, maximum power rating, expected kwh production and available information of the expected use of the generator as it pertains to the use, seasonal

4 Page 4 of 11 availability patterns, wind regime average monthly data or solar insolation patterns that may be helpful in preparing load curves. The QF shall notify the Cooperative prior to, and shall maintain a log of, any startup, testing or operation of the facility, and shall not make any modification without the Cooperative s prior approval. C. Interconnections shall be made in such a manner that if voltage from the Cooperative or its supplier is interrupted or absent, the electrical interconnection is immediately broken. The QF must not be capable of energizing the Cooperative s line when that line is dead. D. The interconnection will be at the service voltage and phases available at the QF or at such voltage and phases as may be required due to the electric capability of the QF. The interconnection voltage and phases shall be limited to those provided in the Cooperative s standard service practices or such higher voltages as may be required. E. The QF shall be at times operate any equipment and keep each of the phases balanced as far as practicable so as not to adversely affect service and voltage to other consumers. The harmonics, power factor and frequency of the QF will be such as to not adversely affect the Cooperative s system. Any corrective devices required (including future modification and additions as may be require, such as harmonic filtering, complex relaying schemes, power factor correction and SCADA, due to large penetrations of small power producers) shall be installed and maintained by the QF. F. A manually-operated generator disconnect switch, provided by the QF, must be accessible to Cooperative personnel at all times on the Cooperative s side of the Delivery Point, and may be used, whether or not the QF is present or given notice, to remove the QF from the line in an emergency situation as determined by the Cooperative s system conditions. G. The Cooperative may disconnect and lock-out a QF whenever it, in its sole judgement, has determined that disconnection is warranted under 6 of this Standard Tariff.

5 Page 5 of 11 INTERCONNECTION COSTS: The reasonable cost of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the Cooperative directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with the QF (to the extent such costs are in excess of the corresponding costs which the Cooperative would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased and equivalent amount of electric energy or capacity from other sources), exclusive of any cost included in the calculation of the Standard Rate, shall be borne by and be the responsibility of the QF. To the extent practicable, the Cooperative shall furnish the QF, prior to installation, an estimate of the interconnection costs. Where additions or alterations to the Cooperative s system are required during the term of the Contract due to the collective presence of the consumer s qualifying facilities and one or more other consumer-owned qualifying facilities operating in parallel with the Cooperative s system, the costs if such additions or alterations shall be shared by the QF and consumer-owners of such other qualifying facilities upon an equitable basis determined by the Cooperative, subject to GO 37. The Contract shall provide for the times and manner of payment of interconnection costs, which shall be reimbursed to the Cooperative as soon as practicable but in no instance over a period of time greater than two years. The unpaid balance of interconnection costs shall bear interest at the same rate per annum as is required by law for utility consumer deposits. Delinquency is ground for discontinuance of purchases. BILLING: The billing period for transactions hereunder shall be approximately a calendar month, unless a different period is specified in the Contract. The exact period shall be based from time to time upon the Cooperative s meter reading schedule. Billings may be increased by an amount equal to the sum of taxes payable under the Gross Receipts and Compensating Tax Act and of all other taxes, fees or charges (exclusive of ad valorem, state and federal income taxes), payable by the Cooperative and levied or assessed by any governmental authority on the service rendered, or on the right or privilege of rendering the service, or on any object or event incidental to the rendition of service. The QF shall not charge gross receipts tax

6 Page 6 of 11 on its sale of electricity to the Cooperative for resale by the Cooperative in the ordinary course of business. OTHER PROVISIONS: The following provisions shall additionally govern interconnection and purchases: A. The QF shall provide, without cost, all privileges, easements, licenses or other rights to enable the Cooperative to purchase energy from the QF. B. The Cooperative may but assumes no duty to inspect the QF s lines, wiring, generator, apparatus or other facilities, and the QF assumes all responsibility for electric power and energy of the QF s side of the Delivery Point. Neither inspection nor the failure to inspect, nor approval of the QF s plans and specifications shall either (a) waive any of the Cooperative s rights or QF s duties and liabilities hereunder or (b) constitute any assumption of liability by or otherwise subject the Cooperative to any liability to the QF or any third party. C. Metering equipment installed shall be tested and maintained at intervals as may be required by the proper regulatory authority, or at such other times as the Cooperative may elect, and any inaccuracy disclosed by such tests shall be corrected. The QF s representatives shall be afforded an opportunity to be present at all official inspection and tests. Meters shall be calibrated to maintain 100% accuracy as far as practicable. If a meter is found to be inaccurate by more than 2%, fast or slow, an adjustment shall be made in settlement to compensate for the effect of such inaccuracy over a preceding period, starting from the date the meter registration became in error, if it can be determined or if not, for a period equal to 50% of the time elapsed since the meter was installed or since the previous test, whichever interval is less, but all adjustments hereunder shall be limited to the preceding 6 month. Payment to the QF based upon the Standard Rate may be adjusted, at the Cooperative s option, if the Cooperative receives a refund or other credit reducing the cost of the energy portion of its average cost upon which the Standard Rate is based.

7 Page 7 of 11 FORM OF CONTRACT: THIS AGREEMENT, made as of the day of, 1981 and between, (a corporation) (a partnership) (a single person) (husband and wife) ( QF ) and Central Valley ELECTRIC COOPERATIVE, INC., a New Mexico cooperative corporation ( Cooperative ). WITNESSETH: WHEREAS, the QF receives electric service from Cooperative, the Cooperative is subject to the jurisdiction of the New Mexico Pubic Service Commission ( NMPSC ), the NMPSC has adopted its General Order No. 37 governing this transaction and the Cooperative has filed its Standard Tariff thereunder, a copy of which is annexed hereto and incorporated herein by reference; and WHEREAS, the QF represents and warrants that it is a qualifying Facility as defined by General Order No. 37 having an installed capacity of 100 kilowatts or less. NOW, THEREFORE, for and in consideration of the mutual undertakings herein contained and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledge, the QF and the Cooperative agree as follows: 1. The QF shall install, operate and maintain the following qualifying facility:, in accordance with the Standard Tariff and this Contract. Except only for metering, the QF shall own, operate, maintain and be solely responsible for all facilities on the QF s side of the delivery Point. The Cooperative expressly disclaims any warranty or representation of expertise or skilled knowledge concerning the installation, operation or maintenance of such facility. 2. The Delivery Point will be located on the QF s property at the physical interconnection situate at a mutually agreeable site within Section, Township, Range, N.M.P.M.,

8 Page 8 of 11 County, New Mexico. Authorized Cooperative employees or contractors may enter upon the QF s property at any time to inspect and make additional tests to ensure the continued safe operation of the QF and the accuracy of the meter. Such inspections shall not relieve the QF from the obligation to install, operate and maintain the facility in a safe and satisfactory manner and consistent with the Standard Tariff and shall not subject the Cooperative to any liability or duty with respect to the lawful, safe and reliable operation thereof. 3. The Cooperative shall construct, operate and maintain the following interconnection facilities:, in accordance with the Standard Tariff and this Contract. The Cooperative may at any time install or modify its equipment as it deems necessary to insure the safety of its employees and contractors and the satisfactory operation of the Cooperative s system and/or the accuracy of its meter as a result of the QF s operations, the costs thereof being interconnection costs under the Standard Tariff and reimbursable by the QF. 4. Under the terms and conditions stipulated herein, the QF will furnish and sell to the Cooperative and the Cooperative shall receive and purchase from the QF at the Point of Delivery, electric energy produced by the QF under the following metering option:. Payment is due on or before the day of each for the prior. 5. The terms and conditions of the interconnection with and sale of energy by the QF to the Cooperative shall be governed by the provisions of the Standard Tariff as though fully set forth herein. The QF shall further comply with the additional protective standard (s).

9 Page 9 of The QF shall reimburse the Cooperatives interconnection costs on or before, 19 (in equal monthly installments plus interest thereon at the rate of 9% per annum, commencing 19 and continuing on the day of each succeeding until paid) 7. The QF shall protect and make the Cooperative safe and harmless from any liability, loss, costs and expenses (including reasonable attorney s fees and litigation costs) on account of injury to persons (including death) or damage or destruction of property occasioned by the QF s generation, transmission and delivery of power and energy or failure to comply with this Contract, except to the extent that such injury or damage results from the Cooperative s negligence. In no event shall the QF be entitled to loss of earnings, indirect or consequential damages, if there is a demonstrated hazard to person or property as a result of the QF s operation, the Cooperative may also require that the QF provide adequate liability insurance coverage. 8. Any payments, notices, demands or requests required or authorized by the Contract shall be deemed properly given if mailed postage prepaid to: QF, New Mexico 88 The Cooperative General Manager, Central Valley Electric Cooperative, Inc. P.O. Box 230 Artesia, New Mexico as appropriate. The designation of the persons to be notified, or the address thereof, may be changed by notice in writing one by party to the other. Routine notices and notices during a system emergency or operational circumstances may be made in

10 Page 10 of 11 person or by telephone. 9. Should the QF default in the performance of any of the QF s obligations hereunder, the Cooperative may suspend interconnection and/or purchases and if the default continues for more than 10 days after written notice by the Cooperative to the QF, the Cooperative may terminate this Contract. Either the QF or may the Cooperative may terminate this contract upon 30 days written notice to the other. Termination or suspension shall not affect the obligation of the Cooperative to pay for energy already delivered or of the QF to reimburse interconnection costs, or any cause then accrued. Delay or waiver by the Cooperative or any default shall not constitute a waiver of any other or further default. 10. This Contract and any amendments thereto, including all tariffs made a part hereof, shall at all times be subject to such changes or modifications as shall be ordered from time to time by any legally constituted regulatory body having jurisdiction to require such changes or modification, and this Contract shall be binding upon and inure to the benefits of the QF and the Cooperative and their respective personal representatives, heirs Successors and assigns. The Cooperative may not be assigned by the QF without the Cooperative s prior written consent. This Contract (and the Standard Tariff incorporated herein) contains all the agreements and representations of the parties relating to the interconnection and purchases contemplated and no other agreement, warranties, understandings, or representations relating thereto shall be binding unless set forth in writing as an amendment hereto. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first written above. " LIMITATION: Nothing in this Standard Tariff limits the authority of the QF and the Cooperative and its supplier to agree to other terms and conditions, Subject to 12.0 or GO 37.

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Standard Tariff for Electricity Purchases From And Sales to Qualifying Facilities. Applicant: Dated 20

Standard Tariff for Electricity Purchases From And Sales to Qualifying Facilities. Applicant: Dated 20 Applicant: Dated 20 Form of Standard Contract Standard Interconnection Agreement For Qualifying Facilities with a design Capacity of 25 Kilowatts or Less Preamble This Agreement is made as of the day of,