1. Oh, It Is Scary... BPA’s Ratemaking and the Impact to Consumer-Owned Utilities 1

2. A Long and Sordid Tale Budget and Rate Processes –Past and Future Customer Involvement 2

3. Scary Power Rate TrajectorY 3

4. Utility Manager Perspectives Matt Michel General Manager, Lane Electric Cooperative Debra Smith General Manager, Central Lincoln People’s Utility District Anne Spangler General Counsel, Snohomish Public Utility District 4

5. Date-Topic-Presenter 5

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7. Central Lincoln PUD People’s Utility District established in 1943 38,500 residential and commercial meters 1 large industrial customer – 40% of total load FY 15-16 Budget of approximately $92 million 125 Employees BPA Full Requirements Customer 7

8. Service Territory 10 cities 4 counties Population is older than Oregon average Household income is lower than Oregon average 8

9. FY16 Total Expenditures (% of Total) 9

10. Snohomish PUD by the Numbers Electric System Service Area: 2,200 square miles Electric System Customers: 332,516, added 4,760 electrical service connections in 2014 Generating Capacity: 120 megawatts (MW) from Jackson Hydroelectric Project, Woods Creek Hydroelectric Project, and Youngs Creek Hydroelectric Project 2014 Energy Sales: 8,812,294 megawatt hours 2014 Operating Revenues: $628,582,000 Residential Rate: 9.9¢ per kilowatt-hour (kWh) Population Served: 750,000 Key Commercial/Industrial Customers: Boeing Company, Naval Station Everett, Providence Medical Center, Fluke Corporation, AT&T, Verizon, T-Mobile, Philips Medical, Snohomish County Bonneville’s largest customer, approximately 11% of BPA system 10

11. Snohomish PUD Service Area 11

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13. The Sequel: Utility Manager Perspectives Matt Michel General Manager, Lane Electric Cooperative Debra Smith General Manager, Central Lincoln People’s Utility District Anne Spangler General Counsel, Snohomish Public Utility District 13

14. Last Words… … Out of Time? 14