1. Chelan County PUD March 16, 2009

2. Staff recommendation for license action and resolution License Order Rehearing and Clarification Rehearing Items License term Bull trout critical habitat Clarifications March 16, 2009 Chelan PUD 2

3. License term (43 years vs 50 years) FERC’s rationale for 43-year license term: Coordinate license terms within same river basin Match HCP expiration date Early HCP implementation does not count as new license mitigation since it was done prior to issuance of the new license (e.g. fish bypass system construction) 3 March 16, 2009 Chelan PUD

4. License term (43 years vs 50 years) Chelan PUD’s rationale for requesting 50-year license term: Recognize 50-year license term in Settlement Agreement Coordinating license terms would cause strain on regional resources and coordination would be difficult Give credit for early implementation of HCP Clarify expiration date of HCP 4 March 16, 2009 Chelan PUD

5. Critical habitat for bull trout Provide correction that critical habitat for bull trout does not occur within the Project area 5 March 16, 2009 Chelan PUD

6. Provide clarification that: Lease/sale of land to Entiat will occur outside project boundary Ute Ladies’-tresses are within project boundary 6 March 16, 2009 Chelan PUD

7. Additional differences between License Order and Settlement Agreement, but Chelan PUD is not including in Rehearing: Removed payment to Entiat for wastewater treatment plant upgrades commensurate with Entiat park operations Brought Tumwater and Dryden fish trapping facilities into project boundary No funding provision to agencies for wildlife habitat restoration. PUD required to complete measures 7 March 16, 2009 Chelan PUD

8. Today’s Resolution “A resolution authorizing the general manager to accept the new license order issued by the Federal Energy Regulatory Commission for the Rocky Reach Hydroelectric Project and to file a request for rehearing and clarification of the new license order. ” 8March 16, 2009 Chelan PUD