Execution Version POWER PURCHASE AGREEMENT BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND COSO GEOTHERMAL POWER HOLDINGS, LLC DATED AS OF ________________, 2020 ARTICLE I DEFINITIONS AND INTERPRETATION...............................................................1 Section 1.1 Definitions ............................................................................................1 Section 1.2 Interpretation.......................................................................................25 Section 1.3 Order of Precedence ...........................................................................26 ARTICLE II EFFECTIVE DATE, TERM AND EARLY TERMINATION ..............................26 Section 2.1 Effective Date .....................................................................................26 Section 2.2 Agreement Term and Delivery Term .................................................27 Section 2.3 Survivability .......................................................................................27 Section 2.4 Early Termination...............................................................................27 ARTICLE III DEVELOPMENT OF THE FACILITY................................................................28 Section 3.1 In General ...........................................................................................28 Section 3.2 Commencement Date Notices ............................................................28 Section 3.3 Other Information ...............................................................................28 Section 3.4 CEC Certification ...............................................................................29 Section 3.5 Performance Damages........................................................................29 Section 3.6 Decommissioning and Other Costs ....................................................29 ARTICLE IV OPERATION AND MAINTENANCE OF THE FACILITY ..............................30 Section 4.1 Compliance with Electrical Service Requirements ............................30 Section 4.2 General Operational Requirements.....................................................30 Section 4.3 Operation and Maintenance Plan........................................................30 Section 4.4 Reporting and Information .................................................................31 ARTICLE V COMPLIANCE DURING OPERATION PERIOD...............................................31 Section 5.1 In General ...........................................................................................31 Section 5.2 Compliance with Standards ................................................................32 Section 5.3 Quality Assurance Program................................................................32 Section 5.4 Security Provided by Seller ................................................................32 Section 5.5 Effect of Review by Buyer .................................................................34 ARTICLE VI PURCHASE AND SALE OF POWER.................................................................34 Section 6.1 Purchases by Buyer.............................................................................34 Section 6.2 Point of Delivery.................................................................................34 Section 6.3 Energy to Come Exclusively from Facility ........................................35 Section 6.4 Sales to Third Parties..........................................................................35 Section 6.5 Right of First Refusal..........................................................................35 ARTICLE VII TRANSMISSION AND SCHEDULING; TITLE AND RISK OF LOSS ..........36 Section 7.1 Transmission and Interconnection......................................................36 Section 7.2 Forecasting and Scheduling of Energy...............................................36 Section 7.3 Scheduled Outage ...............................................................................39 Section 7.4 Curtailments........................................................................................40 Section 7.5 Title; Risk of Loss ..............................................................................41 ARTICLE VIII ENVIRONMENTAL ATTRIBUTES; EPS AND RPS COMPLIANCE...........41 Section 8.1 Transfer of Environmental Attributes.................................................41 Section 8.2 Reporting of Ownership of Environmental Attributes .......................41 Section 8.3 Environmental Attributes....................................................................41 Section 8.4 Use of Accounting System to Transfer Environmental Attributes ............................................................................................42 Section 8.5 Further Actions Regarding Environmental Attributes........................42 Section 8.6 RPS and EPS Compliance ..................................................................43 Section 8.7 Change in Law....................................................................................43 ARTICLE IX MAKEUP OF SHORTFALL ENERGY...............................................................44 Section 9.1 Makeup of Shortfall............................................................................44 Section 9.2 Makeup Energy and Replacement Energy .........................................44 Section 9.3 Energy Replacement Price..................................................................44 Section 9.4 No Limitation on Remedies................................................................45 ARTICLE X CAPACITY RIGHTS .............................................................................................45 Section 10.1 Purchase and Sale of Capacity Rights ................................................45 Section 10.2 Representation Regarding Ownership of Capacity Rights .................45 Section 10.3 Failure to Provide Expected RA Capacity..........................................45 Section 10.4 Further Action by Seller Regarding Capacity Rights.........................46 ARTICLE XI BILLING; PAYMENT; AUDITS; METERING; ATTESTATIONS; POLICIES.............................................................................................................46 Section 11.1 Billing and Payment ...........................................................................46 Section 11.2 Payment ..............................................................................................47 Section 11.3 WREGIS Withholding........................................................................48 Section 11.4 Disputed Invoices ...............................................................................48 Section 11.5 Buyer’s Right of Setoff.......................................................................48 Section 11.6 Records and Audits.............................................................................48 Section 11.7 Electric Metering Devices ..................................................................49 Section 11.8 Taxes...................................................................................................51 iii ARTICLE XII REPRESENTATIONS AND WARRANTIES; COVENANTS OF SELLER................................................................................................................51 Section 12.1 Representations and Warranties of Buyer ..........................................51 Section 12.2 Representations and Warranties of Seller...........................................52 Section 12.3 Covenants of Seller Related to Real Property Agreements................54 Section 12.4 Covenants of Seller Related to Tax Equity Financing........................56 Section 12.5 Additional Covenants of Seller...........................................................57 Section 12.6 Additional Related Projects ................................................................57 Section 12.7 Storage Technology and Shared Facilities .........................................58 ARTICLE XIII DEFAULT; TERMINATION AND REMEDIES; PERFORMANCE DAMAGE.............................................................................................................58 Section 13.1 Default ................................................................................................58 Section 13.2 Default Remedy..................................................................................60 Section 13.3 Termination for Default......................................................................61 ARTICLE XIV MISCELLANEOUS...........................................................................................63 Section 14.1 Authorized Representative..................................................................63 Section 14.2 Notices ................................................................................................63 Section 14.3 Dispute Resolution..............................................................................63 Section 14.4 Further Assurances .............................................................................64 Section 14.5 No Dedication of Facilities.................................................................64 Section 14.6 Force Majeure.....................................................................................64 Section 14.7 Assignment of Agreement; Change in Control ..................................66 Section 14.8 Ambiguity...........................................................................................68 Section