Bonneville Power Administration - Power, Transmission, and Fish & Wildlife Conservation

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 • 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 Columbia Basin BPA Service Area Mica BPA Transmission Grid Federal Dams: Revelstroke Corps of Engineers Bureau of Reclamation Non-Federal Dams Duncan Canadian Dams Canada Keenleyside U.S.A. Libby Washington Hungry Horse Albeni Falls Chief Joseph Wells Grand Coulee Montana Rocky Reach Rock Island Lower Granite Lower Monumental Wanapum Rosa Priest Rapids Dworshak Little Goose Chandler Ice Harbor The Dalles McNary John Day Bonneville Hells Canyon Big Cliff Oxbow Brownlee Idaho Detroit Oregon Foster Green Peter Black Canyon Cougar Dexter Palisades Lookout Point Boise Diversion Hills Creek American Falls Anderson Ranch Swan Falls Minidoka Lost Creek C J Strike Bliss Upper Salmon Falls Green Springs Wyoming Utah California Nevada

2. 4,000ft 3,500ft United States – Canada Treaty and Columbia River Base System Projects 3,000ft Treaty Project Dam in Canada Base System Federal Project Base System Non-Federal Project NOTE: FOR ILLUSTRATIVE PURPOSES; NOT ALL PROJECTS ARE SHOWN Hungry Horse So. Fork Flathead River 2,500ft Kerr Flathead River 2,000ft Thompson Falls Libby Mica Noxon Rapids Coeur d’Alene Lake 1,500ft Feet above Sea Level Cabinet Gorge Clark Fork River Duncan Lake Albeni Falls Brownlee Box Canyon Kootenay River Kootenay Lake Oxbow Pend Orielle River 1,000ft Arrow Lakes Spokane River Grand Coulee Snake River 500ft Chief Joseph Columbia River Wells Rocky Reach Chelan Rock Island Wanapum Ice Harbor Priest Rapids McNary The Dalles John Day Sea Level Bonneville OCEAN 100 200 300 400 500 600 700 800 900 1000 1100 1200 Hydro Characteristics • 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 Miles from River Mouth

3. Federal Columbia River Power System Federal Columbia River Transmission System 3 Key Challenges • Obligation to serve Utility Load Growth – • Integrating Renewable Resources – • River Operations and Fish Mitigation –

4. 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

5. Fish and Wildlife Legal Mandates 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.” Listed ANADROMOUS FISH RESIDENT FISH WILDLIFE “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

6. UNSLICED 50-year Annual Average Hydro Operations Effects (Power Purchases & Foregone Revenues) 100% 50% 100% ~25% ~7% 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 BPA’s Fish & Wildlife Program: Total Annual Average Cost to BPA Rate Payers 1/ FY 2007-2009 ($ in Millions) FY 2010-2011 ($ in Millions) Percentage of Spending Categories Allocated to F&W Depreciation & Interest on COE / Reclamation / USF&WS Capital F&W Investments (based on Plant in Service) Total $ Depreciation & Interest on BPA Direct Program Capital F&W Investments 1/Based on WP-07 Power Rate Proposal 3-year average of FY07-09 forecasts and Integrated Program Review for FY10-11 spending forecasts

7. 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. http://www.efw.bpa.gov/