2. Purchased Power Products

Bear Valley executed an agreement with Shell for four products: (1) Annual Baseload, (2) Seasonal Baseload, (3) Peak Call Option, and (4) System Resource Adequacy Capacity. The original application called for a "refreshed" offer by Shell following a Commission decision which would find the process that led to the proposed contracts to be reasonable. During the pendency of the application, market conditions changed so significantly that Bear Valley was prepared to execute a final agreement for the four products and filed an amendment on November 10, 2008 to seek a finding that the executed agreement was reasonable. (Amended Application, p. 4.) The pricing terms are confidential subject to the September 25, 2008 ruling on confidentiality.¹ The following table summarizes the public terms of the agreement for the four products, exclusive of prices. (Appendix 1, Amended Application.)

Bear Valley - Shell Agreement
Resource Type	Term	Capacity	Expected Deliveries
Product 1. Annual Baseload
Firm Energy2	4 years, 11 months	13 Megawatts (MW)	113,800 Megawatt hours (MWh) annually
Product 2. Seasonal Baseload
Firm Energy	3 years	7 MW Dec., Jan., Feb. 5 MW Nov.	18,720 MWh annually
Product 3. Peak Call Option
Firm Energy	4 years, 11 months	15 MW Winter 5 MW Other	39,545 GWh max. annual
Product 4. System Resource Adequacy Capacity
Gas Turbine3	4 years, 11 months	18 - 35 MW varying by month and year

¹ The four separate executed documents which contain the confidential pricing terms and conditions of the four energy products are received in the record as Exhibits BV-1 Confidential, BV-2 Confidential, Bear Valley-3 Confidential and BV-4 Confidential, numbered consistently with the four products.

² Consistent with the California Independent System Operator criteria.

³ Combined cycle combustion turbine.