Slide 1 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N McNary Dworshak Anderson Ranch Palisades Ice Harbor Grand Coulee Revelstroke Lower Monumental Little Goose John Day The Dalles Minidoka Lower Granite Chandler Rosa Albeni Falls Black Canyon Boise Diversion Mica Keenleyside Duncan BPA Service Area Columbia Basin Federal Dams: Canadian Dams Montana Wyoming Utah Nevada California Oregon Idaho Washington Canada U.S.A. Non-Federal Dams Chief Joseph Priest Rapids Wanapum Rock Island Rocky Reach Wells Hells Canyon Oxbow Brownlee Swan Falls C J Strike American Falls Bliss Upper Salmon Falls BPA Transmission Grid Libby Hungry Horse Corps of Engineers Bureau of Reclamation Bonneville Green Springs Lost Creek Hills Creek Lookout Point Cougar Dexter Green Peter Foster Detroit Big Cliff BPA Established in 1937 Markets power at cost from 31 federal dams, 1 nuclear plant & 5 wind projects – roughly one- third of electricity used in PNW Markets transmission services – owns 75% (15,000 miles) of the high-voltage lines in PNW Protects, mitigates & enhances fish & wildlife in the Columbia River Basin 300,000 square mile service area Self-funding federal agency within DOE. Sets rates to recover costs. $3.5 billion in annual revenues 2900 employees Headquarters in Portland, OR BPA Established in 1937 Markets power at cost from 31 federal dams, 1 nuclear plant & 5 wind projects – roughly one- third of electricity used in PNW Markets transmission services – owns 75% (15,000 miles) of the high-voltage lines in PNW Protects, mitigates & enhances fish & wildlife in the Columbia River Basin 300,000 square mile service area Self-funding federal agency within DOE. Sets rates to recover costs. $3.5 billion in annual revenues 2900 employees Headquarters in Portland, OR B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Slide 2 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Miles from River Mouth  Common fuel supply, affected by non-power constraints  Hydro operations have consequence,either immediately or in the future  Hydro is used for regulation and load-following while thermal tends to be base loaded Hydro Characteristics

Slide 3 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 3 Key Challenges Obligation to serve Utility Load Growth – Integrating Renewable Resources – River Operations and Fish Mitigation – Federal Columbia River Power SystemFederal Columbia River Transmission System

Slide 4 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N River Operations and Fish Mitigation – Currently playing out in the courts The growing demand from fisheries interests and the court is: –Spill more water for juvenile fish bypass –Shape system flows into spring and summer, and out of winter peak periods in support of juvenile migration –Reduce (flatten) daily peaking operations to provide improved rearing and spawning conditions –Include as a possibility, the breaching of the four lower snake dams if the BiOp does not improve endangered runs

Slide 5 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Fish and Wildlife Legal Mandates Listed ANADROMOUS FISH RESIDENT FISH WILDLIFE 1980 Northwest Power Act Endangered Species Act 1995 and 2000 Biological Opinions “The Administrator shall use the Bonneville Power Administration Fund to protect, mitigate, and enhance fish and wildlife to the extent affected by development and operation of any hydroelectric project of the Columbia River and its tributaries.” “Each Federal agency shall….insure that any action authorized funded, or carried out by such agency is not likely to jeopardize continued existence…of any endangered species or threatened species…” Ongoing consultation with Tribal & State Governments 2008 Columbia Basin Fish Accords – $900 million, 10- year funding for Hydro, Habitat and Hatchery improvements

Slide 6 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Percentage of Spending Categories Allocated to F&W FY ($ in Millions ) UNSLICED 50-year Annual Average Hydro Operations Effects (Power Purchases & Foregone Revenues) Integrated Program NWPCC – Annual Average US Fish & Wildlife Service – Annual Average Lower Snake Compensation Plan Corps of Engineers O&M – Annual Average Reclamation O&M – Annual Average 100% 50% 100% ~25% ~7% Depreciation & Interest on COE / Reclamation / USF&WS Capital F&W Investments (based on Plant in Service) Depreciation & Interest on BPA Direct Program Capital F&W Investments BPA’s Fish & Wildlife Program: Total Annual Average Cost to BPA Rate Payers 1/ 1/ Based on WP-07 Power Rate Proposal 3-year average of FY07-09 forecasts and Integrated Program Review for FY10-11 spending forecasts Total $ FY ($ in Millions )

Slide 7 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N River Operations and Fish Mitigation Improved fish passage Increased funding for hydro, habit and hatchery programs A final BiOp in the near future (we hope) that will bring regional consensus and a way forward for the next 10 years.