Exhibit 10.3.8 AMENDMENT NO. 1 TO THE POWER PURCHASE CONTRACT BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY AND SECOND IMPERIAL GEOTHERMAL COMPANY QFID NO. 3021 AMENDMENT NO. 1 TO THE POWER PURCHASE CONTRACT BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY AND SECOND IMPERIAL GEOTHERMAL COMPANY ---------------------------------- 1. PARTIES The Parties to this Amendment No. 1 to the Power Purchase Contract between Southern California Edison Company and Second Imperial Geothermal Company, executed on April 16, 1985 ("Contract"), are Southern California Edison Company, a California corporation, ("Edison") and Second Imperial Geothermal Company, a California general partnership, ("Seller") referred to individually as "Party" and collectively as "Parties". 2. RECITALS This Amendment No. 1 is made with reference to the following facts, among others: 2.1 On April 16, 1985, Edison and Seller executed the Contract to provide the terms and conditions for the sale by Seller and the purchase by Edison of electrical power delivered by Seller to Edison at the Point of Interconnection from the 40.000 kW Contract Capacity electrical Generating Facility located at Heber, California. 2.2 The Parties wish to extend the expected date of Firm Operation and Termination Date. 2.3 Edison desires that Seller's Forecast of Annual Marginal Cost of Energy be shifted one year forward and that each year's price remain valid for 12 months after it first becomes effective. 2.4 The Parties wish to amend the Contract to provide for the changes listed above. 3. AGREEMENT The Parties agree to amend the Contract as follows: 3.1 Section l.2e is amended to change the data when construction shall start and shall now read as follows: "a. Seller shall commence construction of the Generating Facility by September 1, 1989." 3.2 Section 1.7 is amended to change the date of Seller's Firm Operation and shall now read as follows: "1.7 Firm Operation: December 31, 1990." 3.3 Section 2 is amended to add a new Section 2.11.1 which shall read as follows: "2.11.1 Contract Year: Except for the first Contract Year, a Contract Year shall consist of twelve (12) monthly billing periods beginning on the first day of the billing period following the anniversary date of Firm Operation. At Edison's option, the first Contract Year may consist of either twelve or thirteen billing periods commencing on the date of Firm Operation. If the first billing period of the contract term is less than a normal billing month, then the Contract year may consist of thirteen billing periods. If the first billing period is greater than a normal billing month, then the first contract year shall consist of twelve billing periods. 3.4 Section 3.1 is amended to provide for a delayed development schedule and shall now read, in part, as follows: "3.1 The First Period of the Contract Term shall commence upon date of Firm Operation but not later than December 31, 1990." 3.4 Section 11 is amended to provide for the extended date of Firm Operation and shall now read as follows: "This Contract shall terminate if Firm Operation does not occur on or before April 16, 1991." 3.5 Appendix B is amended to reflect the Annual Marginal Cost of Energy that Seller shall be paid for the First Period and shall now read as follows: 3 SOUTHERN CALIFORNIA EDISON COMPANY ---------------------------------- LONG-TERM STANDARD OFFER ------------------------ ENERGY PAYMENT SCHEDULE - ------------------------- FORECAST OF ANNUAL MARGINAL COST OF ENERGY(1) --------------------------------------------- Year Annual Margina(l) Line Payments Contract Cost of Energy(2) No. Start Year (c/kWh) - ------------------------------------------------------------------------------ 1 1991 1 8.1 2 1992 2 8.6 3 1993 3 9.3 4 1994 4 10.1 5 1995 5 10.9 6 1996 6 11.8 7 1997 7 12.6 8 1998 8 13.6 9 1999 9 14.6 10 2000 10 15.6 1 This forecast to be used in conjunction with Energy Payment Option 1. 2 The annual energy payments in the table will be converted to seasonal time-of-delivery energy payment rates that are consistent with the time-of-delivery rates currently authorized by the Commission for Avoided Energy Cost Payments. 4. OTHER CONTRACT TERMS AND CONDITIONS Except as amended herein, all turns, covenants, and conditions contained in the Contract shall remain in full force and effect. 4 5. SIGNATURE CLAUSE The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 1 on behalf of the Party for whom they sign. This Amendment No. 1 is hereby executed as of this 23rd day of October 1987. SOUTHERN CALIFORNIA EDISON COMPANY By /s/ Glenn J. Bjorklund ----------------------------- GLENN J. BJORKLUND Vice President SECOND IMPERIAL GEOTHERMAL COMPANY, A PARTNERSHIP SECOND IMPERIAL CONTINENTAL, INC., PARTNER By /s/ F. Neil Smith ----------------------------- Name F. Neil Smith -------------------------- Title President -------------------------- SECOND DRAVO GEOTHERMAL, INC., PARTNER By /s/ J.J. Burke ----------------------------- Name J.J. Burke -------------------------- Title General Manager, Geothermal Projects & Operations -------------------------- 5
Ormat (ORA) S-1IPO registration
Filed: 21 Jul 04, 12:00am