2. HYDROPOWER NWD HAS LION SHARE (75%) OF COE HYDRO NWD HAS LION SHARE (75%) OF COE HYDRO PACIFIC NW’S DOMINANT POWER SOURCE PACIFIC NW’S DOMINANT POWER SOURCE TWO MCX’S: HDC AND HAC TWO MCX’S: HDC AND HAC HIGH FLOW IN SPRING; LOW POWER DEMAND HIGH FLOW IN SPRING; LOW POWER DEMAND SPRING/SUMMER SPILL REDUCES GENERATION SPRING/SUMMER SPILL REDUCES GENERATION FISH NEEDS SHORTEN MAINTENANCE WINDOW FISH NEEDS SHORTEN MAINTENANCE WINDOW SYSTEM OPERATED PER TREATY AND PNCA SYSTEM OPERATED PER TREATY AND PNCA CORPS GENERATES; BPA SELLS CORPS GENERATES; BPA SELLS CONSTRAINTS: ENVIRONMENT, BPA FUNDING CONSTRAINTS: ENVIRONMENT, BPA FUNDING SAME MISSION; NEW CHALLENGES; NEED TO BE PRO-ACTIVE SAME MISSION; NEW CHALLENGES; NEED TO BE PRO-ACTIVE

3. HYDROELECTRIC ENERGY Water ConditionsFirm Energy Non-Firm (aMW) Dry12,0000 Ave16,0004,000 Wet20,0008,000 HIGHEST FLOWS : APRIL-JUN HIGHEST ELECTRICITY DEMAND: NOV-FEB SPRING RUNOFF STORED & RELEASED IN FALL/WINTER

4. SYSTEM GENERATION (aMW) Firm Hydro11,74058% Coal3,28016% Combustion T.1,1506% Nuclear7804% Import2,500135 Biomass6503% TOTAL20,100100%

5. COLUMBIA RIVER TREATY PRIMARY FOCUS: POWER, FLOOD CONTROL PRIMARY FOCUS: POWER, FLOOD CONTROL CORPS IS ONE HALF OF THE US ENTITY CORPS IS ONE HALF OF THE US ENTITY CORPS RESPONSIBLE FOR FLOOD CONTROL CORPS RESPONSIBLE FOR FLOOD CONTROL BPA RESPONSIBLE FOR POWER BPA RESPONSIBLE FOR POWER BC HYDRO REPRESENTS CANADIAN ENTITY BC HYDRO REPRESENTS CANADIAN ENTITY BI-MONTHLY OPERATING COMMITTEE MEETINGS BI-MONTHLY OPERATING COMMITTEE MEETINGS WEEKLY OPERATIONAL CONFERENCE CALLS WEEKLY OPERATIONAL CONFERENCE CALLS CANADIAN ENTITLEMENTS = 0.5 x D/S MW BENEFITS CANADIAN ENTITLEMENTS = 0.5 x D/S MW BENEFITS

6. PACIFIC NW COORDINATION AGREEMENT l COORDINATION AMONG PARTIES l IMPLEMENTATION l RIGHTS & OBLIGATIONS Return of Canadian Entitlements l PLANNING Data submittal Actual Energy Regulations Refill Studies OPERATION

7. PWR RESPONSIBILITIES Annual Hydropower Operational Planning Special Power Impact Studies Support to COE-BPA Joint Operating Committee Coordination of FERC Review Support to Treaty PEBCOM Center of Expertise for Hydropower Analysis Coordination of Coastal Engineering Activities

8. OPERATIONAL PLANNING Actual Energy Regulation Treaty Storage Regulation Assured Operating Plan Refill Studies Special Power Studies Annual Data Submittal Coastal Engineering HYSSR Model Support

9. ANNUAL PLANNING MILESTONES FebPNCA Data Submittal; Entity Meeting MayPNCA 6(d) Changes in Regulation Jul(*)CRT OPERATING PROCEDURES (DOP, AOP, Refill) OctPNCA Refill Study; PEBCOM Report; NovCRT-OC Annual Report AprPNCA Headwater Payment Study 2/mo.PNCA Actual Energy Regulation (AER) 1/mo.CRT Storage Regulation (VECC) OTHER:Chum Studies (Sept); QADJ Studies (Dec-May)

10. Developed for the 6th Succeeding Operating Year for Optimum Power & Flood Control Benefits in Canada and the US. Developed for the 6th Succeeding Operating Year for Optimum Power & Flood Control Benefits in Canada and the US. Defines Operating Criteria for Canadian Projects. Defines Operating Criteria for Canadian Projects. Determines Downstream Benefits (that will do not change, no matter how much actual energy is generated). Determines Downstream Benefits (that will do not change, no matter how much actual energy is generated). ASSURED OPERATING PLAN (CRT)

11. Plan for the upcoming year Plan for the upcoming year Fine-tuned from the AOP (done 6 six years earlier) Fine-tuned from the AOP (done 6 six years earlier) Includes real-time project operations (not in AOP) Includes real-time project operations (not in AOP) May be changed if mutually beneficial for power and non-power purposes. May be changed if mutually beneficial for power and non-power purposes. DETAILED OPERATING PLAN (CRT)

12. HYDROPOWER ANALYSIS CENTER MAJOR POWER PLANT STUDIES - Major Rehab - Plant Expansions - New Hydro Miscellaneous Hydropower Studies - Water Supply Reallocation - Major River Systems Special Activities - Hydropower Engineering Manual - FERC Coordination - COE-BPA Joint Operating Committee - Treaty’s PEBCOM

13. Power Branch Overall Prospects Goal: Premier modelers in the region Need: top-notch hydro analysts + stable staff Must train & retain staff, with good backup Danger: Corps may be forced to give up its mission and renege on its CRT and PNCA responsibilities (if we rely on BPA and others to do operational planning for us)