1. Geothermal Energy Exploration in Washington State Craig W. Collar, P.E. Senior Manager Energy Resource Development

2. Utility Overview Municipal corporation of the state of Washington. Located just north of Seattle. Municipal corporation of the state of Washington. Located just north of Seattle. Serve a population of ~700,000 and an area of ~2,200 square miles. Serve a population of ~700,000 and an area of ~2,200 square miles. Largest of 28 PUD’s in Washington, 12 th largest public utility nationwide. Largest of 28 PUD’s in Washington, 12 th largest public utility nationwide. Key customers include Boeing, Naval Station Everett, and Kimberly- Clark Corporation. Key customers include Boeing, Naval Station Everett, and Kimberly- Clark Corporation.

3. Energy Challenge Service Region Growth Service Region Growth –Snohomish County is growing rapidly - ~8,000 new connections/year –Load growth of 15 to 20 average MW/year Renewable Portfolio Standard Renewable Portfolio Standard –Requires the addition of ~140 average MW of new renewable resources by 2020.

4. Wind Energy Challenges: Challenges: Intermittent/difficult to predict Intermittent/difficult to predict Integration issues Integration issues Transmission constraints Transmission constraints Increasingly difficult to site projects Increasingly difficult to site projects Increasing competition for wind energy Increasing competition for wind energy Can geothermal energy also be part of the solution?

5. Utility Industry Strategic Fit Geothermal Power = Clean, renewable, emission-free energy Meets Washington Renewable Portfolio Standard requirements Baseload energy Significant potential

6. Geothermal Energy: The Baseload Renewable  Meet load growth, achieve I-937 goals, mitigate transmission & integration constraints by developing baseload geothermal energy locally.

7. Status of Geothermal Exploration in Washington  Historically low power prices.  Little oil/gas exploration.  Rainfall/moisture masks geothermal signatures.  Must Avoid National Parks and Wilderness areas.  Focus on wind.  Lack of Geothermal promotion/visibility? Very little geothermal exploration…but the resource potential clearly exists.

8. Potential Washington Resources  High enthalpy system indication Mt. Baker Rainier St. Helens - Mt. Adams – Mt. Hood triangle  Indian Heaven KGRA/Skamania County Snohomish County Area  Glacier Peak  Hot Springs  Mineral Springs

9. Snohomish County

11. Study Activities: 2007-08 Updated GIS database utilizing data from historical BPA studies Existing data review  Temperature with depth maps  Geochemistry  Geology  Fracture/fault mapping  Seismic data  Stress/tectonic regime  Transmission lines  Access/land availability Gathered new geochemistry data from springs and wells Preliminary costs: exploration, wells, plant Potential exploration/development options

12. Next Steps: 2008-10  Develop and execute exploration plan Time table and costs Determine if risk/cost of exploration well drilling in our region is warranted Specific site identification Land/lease acquisition Permitting Well drilling plans, specifications, and strategy Funding opportunities Exploration well drilling and evaluation EGS opportunities

13. Objective: 2015-20 & Beyond  Develop ~ 90 aMW of geothermal energy in/near Snohomish County  Engineered Geothermal System advancement and potential

14. Questions? cwcollar@snopud.com www.snopud.com