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{{#Wiki_filter:Washingtou Public Power Supply System Nuclear Project No.2 u,.Revenue Dottds, Series l975 A Dated: March 1, X975 Duc: July 1, as shown below Principal and semi.annual interest (July I and January I, commencing July I, 1975)payablc at Seattle-First National Dank, Seattle, (Vashington, Continental Illinois National Bank and Trust Company of Chicago, Chicago, Illinois, and Thc Bank of New York, New York, Ncw York.Coupon bonds in the denomination of$5,000 registrable as to principal only and fully registered bonds in the denomination of$5,000 or any multiple thereof and interchangeable. | {{#Wiki_filter:Dotmun f Moodyps: Aaa NEÃ EBSUR g2I+ 000 (000 I 80mom6APoopnAAA WASHINGTON PUBLIc POwHR SUPPLY SYsTUt,15@lateg Docile" FLi< | ||
Continental Illinois National Bank and Trust Company of Chicago is Bond Fund and Construction Fund Trustee.The 1975 A Bonds maturing on July I, 1999 and on July I, 2012 arc subject to rcdcmption by operation of thc Bond Retirement Account at 100%plus accrued interest to satisfy sinking fund installments, on January I, 1995 and on January I, 2000, rcspcctivcly, and on any interest payment date thereafter. | A Mtmicipal Corporation and a Joint Operating Agency of thc State of Wash'uigton Washingtou Public Power Supply System Nuclear Project No. 2 u,. | ||
'Inc 1975 A Bonds may bc redeems>ed prior to maturity, at the opdon of the Supply System, on or after July I, 1985, as a whole at any time, or in part in inverse order of maturitics and by lot within a maturity, on any interest payment date at prices ranging from 103%for thc period July It 1985, to and including Junc 30, 1990, to 100%after June 30, 2000, plus accrued interest to thc date fixed for redemption in each case, as further dcscribcd herein.The 1975 A Bonds may also be redccmcd under special circumstances as further described herein.Interest exempt, in the opinion of Bond Counsel, from federal ineonie taxation under existing laws and regulations and specific rulings received from the Internal Revenue'Service with respect to the Bonds.The 1975 A Bonds are being issued to finance a portion of the cost of acquisition and construction of the Wasjihgton Public Power Supply System Nuclear Project No.2.Thc Project's entire capability has been sold by the Supply System to certain statutory preference customers of the Bonneville Power Adminis-tration and assigned by such preference customers to Bonneville under Net Billing Agrcctnents herein described. | Revenue Dottds, Series l975 A Dated: March 1, X975 Duc: July 1, as shown below Principal and semi.annual interest (July I and January I, commencing July I, 1975) payablc at Seattle-First National Dank, Seattle, (Vashington, Continental Illinois National Bank and Trust Company of Chicago, Chicago, Illinois, and Thc Bank of New York, New York, Ncw York. Coupon bonds in the denomination of $ 5,000 registrable as to principal only and fully registered bonds in the denomination of $ 5,000 or any multiple thereof and interchangeable. Continental Illinois National Bank and Trust Company of Chicago is Bond Fund and Construction Fund Trustee. | ||
The 1975 A Bonds and the interest thereon arc payable solely from the Bond Fund created by the Resolution and the moneys pledged to such fund are limited to the income, revenues, rcccipts and profits derived by thc Supply System through the ownership and operation by it of the project, including all payments to be made to the Supply System pursuant to the Net Billing Agreements, and Bond proceeds.The Net Billing Agreemcnts provide that each such prcfcrence customer is obligated to pay the Supply System its share of Project annual costs, and Bonneville is obligated to credit thc amounts so paid against amounts owed to Bonneville by such preference customers for the power and services it provides, whether or not the Project is completed, operable, or operating and notwithstanding the suspension, interruption, interference, reduction or curtailment of the I'roject output.The Bonne-ville Power Administration will usc its revenues to pay any costs billed to such preference customers which arc not offset under the Net Billing Agreements. | The 1975 A Bonds maturing on July I, 1999 and on July I, 2012 arc subject to rcdcmption by operation of thc Bond Retirement Account at 100% plus accrued interest to satisfy sinking fund installments, on January I, 1995 and on January I, 2000, rcspcctivcly, and on any interest payment date thereafter. | ||
Sce"Security for the Bonds" and"Bonneville Povvcr Administration" herein.AMOUNTS, MATURITIES, COUPONS AND YIELDS Atooun!Doo Coupon Vlo(8 Amount Duo Coupon 08,000,000 1988 6,60%5;10%81,600,000 1989 6,60%3,200,000 1983 6.60 5.20 1,G00,000 1990 6,60 3,500,000 1984 G.G0 5.30 1,800,000 1991 6.60 3,900,000 1985 6.60 5.45 2,000,000 1992 6.60 4,300,000 198 G G.60 5.60 2,000,000 1993 6.60 1,500,000 1987 6.60 5.70 2,300,000 1994 6.60 1,500,000 1988 6.60 5,80 9159000,000 6.60%Term Bonds Due July X9 1999 Price 100%$78>000,000 67/k%Term Bonds Due July 1, 2012 Price X00%(Plus Accrued Interest) | 'Inc 1975 A Bonds may bc redeems>ed prior to maturity, at the opdon of the Supply System, on or after July I, 1985, as a whole at any time, or in part in inverse order of maturitics and by lot within a maturity, on any interest payment date at prices ranging from 103% for thc period July It 1985, to and including Junc 30, 1990, to 100% after June 30, 2000, plus accrued interest to thc date fixed for redemption in each case, as further dcscribcd herein. The 1975 A Bonds may also be redccmcd under special circumstances as further described herein. | ||
Interest exempt, in the opinion of Bond Counsel, from federal ineonie taxation under existing laws and regulations and specific rulings received from the Internal Revenue'Service with respect to the Bonds. | |||
The 1975 A Bonds are being issued to finance a portion of the cost of acquisition and construction of the Wasjihgton Public Power Supply System Nuclear Project No. 2. Thc Project's entire capability has been sold by the Supply System to certain statutory preference customers of the Bonneville Power Adminis-tration and assigned by such preference customers to Bonneville under Net Billing Agrcctnents herein described. The 1975 A Bonds and the interest thereon arc payable solely from the Bond Fund created by the Resolution and the moneys pledged to such fund are limited to the income, revenues, rcccipts and profits derived by thc Supply System through the ownership and operation by it of the project, including all payments to be made to the Supply System pursuant to the Net Billing Agreements, and Bond proceeds. The Net Billing Agreemcnts provide that each such prcfcrence customer is obligated to pay the Supply System its share of Project annual costs, and Bonneville is obligated to credit thc amounts so paid against amounts owed to Bonneville by such preference customers for the power and services it provides, whether or not the Project is completed, operable, or operating and notwithstanding the suspension, interruption, interference, reduction or curtailment of the I'roject output. The Bonne-ville Power Administration will usc its revenues to pay any costs billed to such preference customers which arc not offset under the Net Billing Agreements. Sce "Security for the Bonds" and "Bonneville Povvcr Administration" herein. | |||
AMOUNTS, MATURITIES, COUPONS AND YIELDS Atooun! Doo Coupon Vlo(8 Amount Duo Coupon Vtol8 08,000,000 1988 6,60% 5;10% 81,600,000 1989 6,60% 8.90% | |||
3,200,000 1983 6.60 5.20 1,G00,000 1990 6,60 6.oo 3,500,000 1984 G.G0 5.30 1,800,000 1991 6.60 6,10 3,900,000 1985 6.60 5.45 2,000,000 1992 6.60 G.20 4,300,000 198 G G.60 5.60 2,000,000 1993 6.60 6.25 1,500,000 1987 6.60 5.70 2,300,000 1994 6.60 6.30 1,500,000 1988 6.60 5,80 9159000,000 6.60% Term Bonds Due July X9 1999 Price 100% | |||
$ 78>000,000 67/k% Term Bonds Due July 1, 2012 Price X00% | |||
(Plus Accrued Interest) | |||
Tbe 1975 A Bonds arc offered when, as and if issued nnd rcceivcd by us and arc subject to thc approval of legality by V8'ood Dawson Love S; Sabatinc, Ncw York, New York, Bond Counsel to thc Supply System, and Houghton Cluck Coughlin ik Riley, Scattlc, washington, Special Counsel to thc Supply System. It is cxpcctcd that thc Bonds in dclinitivc form will bc ready for delivery on or about March 27, 1975. | |||
Jofarch 6, 1975 | |||
WASIIINGTON PUBLIC POWER SUPPLY SYSXKhf Ihe fnformsden contained la this Odidd Statement fms beea obts>>ed from thc Scpply System aad other sources deemed reliable. No reprcsentadoa or rrarrsaty ls made> however> as to thc accuracy or Prfndpal Ofhce Fdcbfsnd, Washh>~<on compte'tenets ol such information, aad nothing comahied hach fr, or shJ'e> rdicd upon as ~ promise or rcprcsentstioa of the U>nderwrften. '1hls OKdsf Smtcment, <<hkh fndades the cover ~~ aad Bosan oy Dtazcross exhibits, docs oot coaititute aa oga to sdl the 1975 A Bonds la any state to aay pasoa to <<born it is A. J. Bene>Lttir Kirby Bi1tings!Cy Lne Bray Rolf L> Jcmtegssrd Hero!d W. Jeebies Thomas F. hroupa gfre sny faformsdon or to ~ aay representations other ~ | |||
tmhrrhl to mshe such oiler la such state. No desLr, calcem or other pecten hm baa authorized to those con>>d la this Otgdsf Smtc meat fa connecdoa <<fth the otfcrfag ol thc 1975 h Bonds> sad if glrcn or tnsdc> such feformstfon or Ed Pitcher'ucatin Gerald C. Fcnton Alvin E. Fletcher Francis Loago Howard Prey hfircr rrprmasadoa nu>st not bc rdfmf upon. | |||
D. E. Hughes'oha L Joha Goldsbuty W.G. Hefbcrt, Jr. ~ | |||
Edwia IV. Ta)for Toe<<a Gordoa Vickerye TABLE OF CO>>VRdS Atnohf J. James Glctm C. Wsihfcyv Joha J. Wcfdt SUstMAET SrATzsrzNT ~ ~ ~~~ 5 | |||
~ Ezccutivc Gxnait tee hfember. | |||
OPP>czas Tttz SUPPLY SYSTEM, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~~ g Alvin E. Fletcher Prcshfent The Supply Slsmm's Generating Pro ccts ................ | |||
Howard Prey Vice Prcddcnt Szcuturv Poa Tttz Bows 10 Edwht W. Taylor Secretary Tttz Pr orzcT 11 AEMnttsTEATtvz STAPP J. J. Stein Locsdon of the Project ~ ~ ~ ~ ~ ~ ll Managing Director Dcscripdion ol the Project . | |||
Deputy hfsnsyng Director LL Humphreys 12 hfensgcr, Planning aud Anslluis H R Koimsta initial Fuel Core 12 hfsnager, Construction DiviYion IL D. Ssblbcig Construction Contrast and Scbmfdo 12 hfsnsgcr, Proj~m Division C. Lr Love Project Financing Reqdrcm~> | |||
hfansgcr, Techaical DiriYioa Dusne L Rcnberger 13 hfaasgcr, Amtftittaation DidYton V. V. Jofmsoa Liccusm and Permits M~gcr, Operadons D:->tYimt R. E. Smith Project Output . 14 Mmtagcr, Finance DiviYioa James T. Bobo James D. Pcrho Project Annual Costs 14 Treasurer Auditor C W. Godfrey BoivzvtLLE Powza AnwtNtsTEATtoN 15 Chief Counsd Richard Q. Quigfcy Addidoaal Power Supply . 17 SPzctAL C0UNsEL Bonncdilc Contracts ~ 17 Houghton Cludc Coughlin dt Riley Iitz Hvnao TNzastAL Powza PaocaAM Am Powzz SUPPLE tN Tttz PActrtc Noart twzsT 18 Boi> COUNSEL Power Retiuiremcns md Rcsourccs 2P Wood Dawson Love gs Ssbstiae | |||
'Qm PAartctrasm . 21 CawsULTU'o ENcntzza | |||
~ R.W. Bxk and Assoc<<tcs Iltz NET BtLLEto Acazzstzhm ............ | |||
[LEITERIIEAD OF WOOD DAWSON LOVE P SABATLx(E[ | [LEITERIIEAD OF WOOD DAWSON LOVE P SABATLx(E[ | ||
[LEITERHEAD OF HOUGHTON CLUCK COUGHLD(tjx RILEY] | [LEITERHEAD OF HOUGHTON CLUCK COUGHLD( tjx RILEY] BO <<vs~LE POI>'ER AD>ID(ISXRATION Projected Revenues (I mtmcux) | ||
......, 197$ | |||
BPA Coat ot Board of Dircmors ptxcat Opcrxdcn Puavhxxc Surplus Washiagton PubUc Power Supply System Veer ad R~ | |||
~ ~ ad Avxtkbk rcr Eudtcg BPA ¹tBPA Richland, Wmbjngton Jane 30 ~LAI Matctcuaucc | |||
~EI11 Exchxxxc KI | |||
%ppSSNo 2 pxymcutioxbc Bll' II.L 1975 ......... 225.6 42.1 31$ t 1$ 1.6 0.0 151.6 WASHPNGTON PUBLIC POIVER SUPPLY SYSIESI NUCLEAR 1976 ......... 296.0 45.6 31.1 219.3 0.0 219.3 PROJECP NO. 2 REVE.aUE BONDS, SERIES 197$ A, 512$ >000,000 1977 ......... 312.5 49.0 29.9 233.6 25.0 208.6 0 1978 ......... 330A 49.9 24.9 2$ $ .6 703 Under the date ot ............, 1975, wc rendered an opinion ppprovjng thc vnhdity of ihc above 1979 ......... 364.6 51.6 23.2 289.8 185.3 bonds (the "Bonds" ) issued pursuant to rcsoludons adopted by the Board of Directors of thc tVashjng.on 70.3 219.5 Public Poiver Supply S>stem (the "S>xtem") on June 26, 1973 and March 6, 1975 (eoUectivcly, the 1980 ......... 484.3 54.1 127.3 302.9 70.3 232.6 Bond ResolilUion ), 1981 ......... 489.1 55.6 211.3 222.2 703 151.9 tVo have examined into the validity of the project Afxecment (Camtrnet No. f443-19121), dated 1982 ......... 497.6 $ 6.1 211.1 230.4 70.3 160.1 January 4, 1971, between tho United States of Amerfm, Di~cnt of thc Interior, acting by mid 1983 ......... 525.$ $ 6,9 211.4 257.2 through thc BonnexiUe po<<vr Administrator, and Was)dng(on pubUe power Supply System, referred to 70.3 186.9 on page 24 of the 0!Ueial Siatcmcnt of the S>x;em, dated March 6, 1975. relating to the Boi:ds. IVith 19S4 ......... 527.8 578 210.9 259A 70.3 IS9.1 respect to thc authorization, ex:cation a."3 dchvery ot szhf ngrcemcnt, wc have cznmivavf eer iced copb 19SS ......... S26.4 57.6 210.9 2$ 7.9 70.3 187.6 of proevxfings of ihc Boz:d of Director of the S>stem authoiiring the execvrion 2nd delivery ot aid 1986 ......... 527.3 57.6 210.9 2$ S.S agreement, nnd such other documents. proeccdings and maners relating to thc nuthorimtjon, cxeeuriion 70.3 1888 and deUvery of said agreement b> each of the parties thereto ns <<u deemed rejexmh In our opinhxa, szM 1987,. ~ ~ ~... ~ 526 5 57 9 2109 2$ 7.7 70.3 187.4 agreement hzs been duly nuthorizcd, cxea::ed and delivered by each of rite parties thereto and comtitutes 1988 ......... 535.9 SS.4 210.7 266.S 70.3 1965 is n valid nnd binding agreement enforce" blc bx accordance with terms. 1989 ....... | |||
'tVo have also examined into thc v<<Udity o( ............ of tbe ¹t BiUing h-eemcnts, rc(erred to on page 21 of ari 0!Ueizj Statement, among the United Smtcs of America, Department of tho 1990 ......... | |||
<< | ~ ~ 534.6 533 I 58.6 59 I 21'LO 2105263 264.0 5 | ||
70.3 703 193.7 193 2 In'.crior, acting by nnd through the Bon"miUc Power AdmiYist. tor, thc S>vtem, 2nd c stain of the 1991 ...... ". 5404 598 2072 273 7 70.3 203 4 PzrtiYipsnts.referred to in Exhibit I of s"id 0!Ucial Statement, u hich .......... agreements proiide 1992 ......... $ 39.S 59.6 206.6 273.6 for the purchase aud assignment of an aggregate of ...... ic of the czpnbUhy o( the Project, ns such 1993 ......... $ 37.8 $ 9.6 206.6 271.6 70.3 2033 project is defined in thc Bond Rcsolupion, nnd i"elude aU such Nct BUUng Agreements provMing for the 70.3 201.3 purchase nnd nssignmcnt by any Participant of more th n ....9c ot thc eapnbUity of thc Projea. (l) Bcvauucx are baird ou ucw pouvr whotcxxk rxicx cfacxivc t>cccmbcr 20, 7974 aad an aariYipxtcd rxic W th respect to ihc nuthorization, execution and dehvery of said .......... I(et Billing Agrecn its, <<e 30% ta nims, year l9so. Thcic rcvcaucx do uot (uctudc addtiNuxxt rcaourccx a<<tetrad from Wp PSS Nuckxr pro)cctx BpA rcvcuucx <<bjch wnt result from thc xxtc lecrcxic of of thc have examined certi8% copies ot proeeeChngs of tbc S>stem nnd of the Pnnieipzns which are pzttj Nox I aad 3. | |||
thereto, author Yiing thc execution and delivery of said ........ Net BUling Agreements, and such other (2) 1>ocx act juctudc axy cat!matc of BPA'c avavrxtjon and mxkicaxccc cxPcuxex for docun.cnts, proceedings nnd matters relating to thc nuthorizatjpn, exec-tion and delivery of said ...... with WPPSS Nudcxr Pio';ccu Ncx. l aud 3. xmmhxion fxcnmcx xxxoctxtcd | |||
.... Net BUling Agreements by each of the parties thereto ns <<u deemed rclcvank ln our opinion, e eh (3) Thc coat io Bph ot xcquhiug thermal power through nat of said ........ Hct Biliin Agreemcms has been duly authorized, executed and delivered by each Tmjin Nuclear prujccn cad (c) xhc Wxxhtcgrou pubti powc. bgnug xgrccmcuix for (a) ihc Hxnford project, (b) thc Supply System Nudcxr projccu Nox. I xad of the parties thereto and eontdtutes a v~vd and binding agreement, enforccsblc in accordance <<ith is tuymceii thrwugh zci bmicg (or Trojan power cummcaccd Nu kxr project No. l tn Jaeuxry l9gn. aad Nuckxr la lxuuxiy ut l974, aud will couuucucc (cr | |||
: 3. Bph'c thc WppSS | |||
'ternis. prcjam 7'o. 3 tu lxuuxry lsgt. | |||
In renderin this ophdon, v:c have rcUed upon ihc opinion of counsel for each of thc Pzltjefpans that (4) BpA Rcavaucx m(cex BpA Opcrxiko aud St 'niccxucc Bxpcuxcx xmt | |||
~ | |||
Coat u( pcrchxic and Exehxugc power. | |||
tho 1(ct BU!in Agreement to wHch such Paacipznt is par:y hzs b'n duly execu:ed and delivered by (5) Nci bjniug tcc ihc project witt bcs(a no ktcr than scpnmbcr ari Parricipant and is not Ln eo."Mc <<ith, or M viola'.', and <<SU not be a breach of, or constitute a x;c p yxb:c from t'c BPA peed on a purity xdk k l977. Any cmoucix uot px!d ihrcczh nat ~~'r:m SPA Cpu!scca anz htxn n xacc Expcexc aud dc(suit under, tho terms a" 6 eondirions of may other agent o: commitment by which svch pzwpat ced Puwcn ccct of purchxm fs bound. | |||
Very n cjy >vxure, | |||
$6 57 | |||
United States Department of the Interior BOXikTV!ILKPOWER ADJUIXISTRATION rA sex kku. reelsAM esrctkv kuks oI/Ice on Tll~ AO TIKI vknk ken In reply refer toi XORS | |||
'O: hfa.yxcc J.grant Nokumb<<12, 1974 hfcr "ging Director IVxstmvoro'4 Puattc Powaa Sugar Srsxxw P. O. Box 968 Richland. KVashingmn 99352 All PmtiYipants in WPPSS Nucle ~ | |||
Projects ¹>>. I, 2 and 3 W thc Trojan Proj<<t ¹t BUUng Agrccments GcnUcment The Supply System is p!eaning to issue an addition J $ 125 mUion of long term bends to Seance the consttumion of its Nudear Project No. 2. BonneviL'e, as in th past, is coopcradng <<5th the Supply System and its financial advisors ia piquing the OIUeiaI Stateinent end other suppotung documentation which arc re!xted to the Issue. | |||
As the result of thc ensmment of tbe Federal Co!umbia River Tyansmission Syste~ Act (Pub. I No. 93S54) there has l>>en sigrdUcant improvement ht the overall security aUorded thc ho!ders of aU bonds issued or to be issued by the Supply System for Nuclear projems Nos. I, 2 and 3 aud by the City of Eugene for thc Trojan project. Und:r the proviuons of the Transndssion S)stem Act BonnckiUe now has the authority to use its revenues deposited ia the Bonnekille Power Adnunhtmdion Fund (Fund) | |||
"without further appropriatioa" of Congress "for any purposes necessary or appropriate to carry out the dudes imposed upon the Admirdszator pursuant to lsw, Indudiag... (6) purchme of electric power (Inciudhkg thc entitIement of eiceuic p!ant crpabhsty) ... if such purchase hss been hcrctofoto a thorized .: .." In any year ia which ret biUiag credits may be Insu!U.":cnt to ofset thc aa:ouats ovkud to any part Ykpmkt these costs wouM bc paid from thc Fund oa a parity ufth other BonnciiUc opetaung expenses aad pdor to any psymeats by Bc~ki'!c to the Tr<<sary for reps) ent of (I) thc Federal Inkustment in thc Federal Columbia River System (2) Corps ov En@a~ ad Bureau of Rcclamatioa costs conn<<ted with such spital, and (3) btmds Issued by Bonnek J!c under thc Act. | |||
BonneviUc's actiuiYidcm of txe cspxbihty of such pro)<<ts as p-c of the H!pro-Ther=xi Power Progr~ ww exprcsslv approved by Corgrcss In the Appropdadon Acts of 1970 ~ 1971. | |||
Bounek@c, in accordance with the provisions of the TransmMon S>stem Act, wui psy in cash from the Fuad oa a psdty with oU:<<BoaacviUc opcradng expenses any costs biUed to thc PemYkpants for Supply System Nuciem Pioje<<s Nos. I, 2 and 3 mtd th- City of Eugcnc's ss - of m Trojan Pro j<<t w~~ are not pahI through nrt biL'hg credits. | |||
Sh<<rc!y, | |||
/s/ Dovxtrk Pxt't finnan'~druutor 58 | |||
EXHIBIT B REVENUE BOND SALE WASHINGTON PUBLIC POWER SUPPLY SYSTEM | |||
l}} |
Latest revision as of 10:25, 17 March 2020
ML18191A345 | |
Person / Time | |
---|---|
Site: | Columbia ![]() |
Issue date: | 03/06/1975 |
From: | Washington Public Power Supply System |
To: | Office of Nuclear Reactor Regulation |
References | |
Download: ML18191A345 (40) | |
Text
Dotmun f Moodyps: Aaa NEÃ EBSUR g2I+ 000 (000 I 80mom6APoopnAAA WASHINGTON PUBLIc POwHR SUPPLY SYsTUt,15@lateg Docile" FLi<
A Mtmicipal Corporation and a Joint Operating Agency of thc State of Wash'uigton Washingtou Public Power Supply System Nuclear Project No. 2 u,.
Revenue Dottds, Series l975 A Dated: March 1, X975 Duc: July 1, as shown below Principal and semi.annual interest (July I and January I, commencing July I, 1975) payablc at Seattle-First National Dank, Seattle, (Vashington, Continental Illinois National Bank and Trust Company of Chicago, Chicago, Illinois, and Thc Bank of New York, New York, Ncw York. Coupon bonds in the denomination of $ 5,000 registrable as to principal only and fully registered bonds in the denomination of $ 5,000 or any multiple thereof and interchangeable. Continental Illinois National Bank and Trust Company of Chicago is Bond Fund and Construction Fund Trustee.
The 1975 A Bonds maturing on July I, 1999 and on July I, 2012 arc subject to rcdcmption by operation of thc Bond Retirement Account at 100% plus accrued interest to satisfy sinking fund installments, on January I, 1995 and on January I, 2000, rcspcctivcly, and on any interest payment date thereafter.
'Inc 1975 A Bonds may bc redeems>ed prior to maturity, at the opdon of the Supply System, on or after July I, 1985, as a whole at any time, or in part in inverse order of maturitics and by lot within a maturity, on any interest payment date at prices ranging from 103% for thc period July It 1985, to and including Junc 30, 1990, to 100% after June 30, 2000, plus accrued interest to thc date fixed for redemption in each case, as further dcscribcd herein. The 1975 A Bonds may also be redccmcd under special circumstances as further described herein.
Interest exempt, in the opinion of Bond Counsel, from federal ineonie taxation under existing laws and regulations and specific rulings received from the Internal Revenue'Service with respect to the Bonds.
The 1975 A Bonds are being issued to finance a portion of the cost of acquisition and construction of the Wasjihgton Public Power Supply System Nuclear Project No. 2. Thc Project's entire capability has been sold by the Supply System to certain statutory preference customers of the Bonneville Power Adminis-tration and assigned by such preference customers to Bonneville under Net Billing Agrcctnents herein described. The 1975 A Bonds and the interest thereon arc payable solely from the Bond Fund created by the Resolution and the moneys pledged to such fund are limited to the income, revenues, rcccipts and profits derived by thc Supply System through the ownership and operation by it of the project, including all payments to be made to the Supply System pursuant to the Net Billing Agreements, and Bond proceeds. The Net Billing Agreemcnts provide that each such prcfcrence customer is obligated to pay the Supply System its share of Project annual costs, and Bonneville is obligated to credit thc amounts so paid against amounts owed to Bonneville by such preference customers for the power and services it provides, whether or not the Project is completed, operable, or operating and notwithstanding the suspension, interruption, interference, reduction or curtailment of the I'roject output. The Bonne-ville Power Administration will usc its revenues to pay any costs billed to such preference customers which arc not offset under the Net Billing Agreements. Sce "Security for the Bonds" and "Bonneville Povvcr Administration" herein.
AMOUNTS, MATURITIES, COUPONS AND YIELDS Atooun! Doo Coupon Vlo(8 Amount Duo Coupon Vtol8 08,000,000 1988 6,60% 5;10% 81,600,000 1989 6,60% 8.90%
3,200,000 1983 6.60 5.20 1,G00,000 1990 6,60 6.oo 3,500,000 1984 G.G0 5.30 1,800,000 1991 6.60 6,10 3,900,000 1985 6.60 5.45 2,000,000 1992 6.60 G.20 4,300,000 198 G G.60 5.60 2,000,000 1993 6.60 6.25 1,500,000 1987 6.60 5.70 2,300,000 1994 6.60 6.30 1,500,000 1988 6.60 5,80 9159000,000 6.60% Term Bonds Due July X9 1999 Price 100%
$ 78>000,000 67/k% Term Bonds Due July 1, 2012 Price X00%
(Plus Accrued Interest)
Tbe 1975 A Bonds arc offered when, as and if issued nnd rcceivcd by us and arc subject to thc approval of legality by V8'ood Dawson Love S; Sabatinc, Ncw York, New York, Bond Counsel to thc Supply System, and Houghton Cluck Coughlin ik Riley, Scattlc, washington, Special Counsel to thc Supply System. It is cxpcctcd that thc Bonds in dclinitivc form will bc ready for delivery on or about March 27, 1975.
Jofarch 6, 1975
WASIIINGTON PUBLIC POWER SUPPLY SYSXKhf Ihe fnformsden contained la this Odidd Statement fms beea obts>>ed from thc Scpply System aad other sources deemed reliable. No reprcsentadoa or rrarrsaty ls made> however> as to thc accuracy or Prfndpal Ofhce Fdcbfsnd, Washh>~<on compte'tenets ol such information, aad nothing comahied hach fr, or shJ'e> rdicd upon as ~ promise or rcprcsentstioa of the U>nderwrften. '1hls OKdsf Smtcment, <<hkh fndades the cover ~~ aad Bosan oy Dtazcross exhibits, docs oot coaititute aa oga to sdl the 1975 A Bonds la any state to aay pasoa to <<born it is A. J. Bene>Lttir Kirby Bi1tings!Cy Lne Bray Rolf L> Jcmtegssrd Hero!d W. Jeebies Thomas F. hroupa gfre sny faformsdon or to ~ aay representations other ~
tmhrrhl to mshe such oiler la such state. No desLr, calcem or other pecten hm baa authorized to those con>>d la this Otgdsf Smtc meat fa connecdoa <<fth the otfcrfag ol thc 1975 h Bonds> sad if glrcn or tnsdc> such feformstfon or Ed Pitcher'ucatin Gerald C. Fcnton Alvin E. Fletcher Francis Loago Howard Prey hfircr rrprmasadoa nu>st not bc rdfmf upon.
D. E. Hughes'oha L Joha Goldsbuty W.G. Hefbcrt, Jr. ~
Edwia IV. Ta)for Toe<<a Gordoa Vickerye TABLE OF CO>>VRdS Atnohf J. James Glctm C. Wsihfcyv Joha J. Wcfdt SUstMAET SrATzsrzNT ~ ~ ~~~ 5
~ Ezccutivc Gxnait tee hfember.
OPP>czas Tttz SUPPLY SYSTEM, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~~ g Alvin E. Fletcher Prcshfent The Supply Slsmm's Generating Pro ccts ................
Howard Prey Vice Prcddcnt Szcuturv Poa Tttz Bows 10 Edwht W. Taylor Secretary Tttz Pr orzcT 11 AEMnttsTEATtvz STAPP J. J. Stein Locsdon of the Project ~ ~ ~ ~ ~ ~ ll Managing Director Dcscripdion ol the Project .
Deputy hfsnsyng Director LL Humphreys 12 hfensgcr, Planning aud Anslluis H R Koimsta initial Fuel Core 12 hfsnager, Construction DiviYion IL D. Ssblbcig Construction Contrast and Scbmfdo 12 hfsnsgcr, Proj~m Division C. Lr Love Project Financing Reqdrcm~>
hfansgcr, Techaical DiriYioa Dusne L Rcnberger 13 hfaasgcr, Amtftittaation DidYton V. V. Jofmsoa Liccusm and Permits M~gcr, Operadons D:->tYimt R. E. Smith Project Output . 14 Mmtagcr, Finance DiviYioa James T. Bobo James D. Pcrho Project Annual Costs 14 Treasurer Auditor C W. Godfrey BoivzvtLLE Powza AnwtNtsTEATtoN 15 Chief Counsd Richard Q. Quigfcy Addidoaal Power Supply . 17 SPzctAL C0UNsEL Bonncdilc Contracts ~ 17 Houghton Cludc Coughlin dt Riley Iitz Hvnao TNzastAL Powza PaocaAM Am Powzz SUPPLE tN Tttz PActrtc Noart twzsT 18 Boi> COUNSEL Power Retiuiremcns md Rcsourccs 2P Wood Dawson Love gs Ssbstiae
'Qm PAartctrasm . 21 CawsULTU'o ENcntzza
~ R.W. Bxk and Assoc<<tcs Iltz NET BtLLEto Acazzstzhm ......................."" 21 Term 21 CoNsraucnoN ENcntzza Ownership and Operation . 21 Burns and Roc, fnc.
SSL, Par&etc amf Asti~ 22 FntANCSAL CoNsULTANT 22 Blyth Eastman Dghm th Ctx Incorporated Termfnshon . ' ~ ~ ~ ~~~ ~ ~ ~ ~ ~ ~ ~ 23
PAGE SQIMARY STATEIdF Evest ot Default 24 (Subj wt ia AQ Respects to hforc Complete Mormztion Contained ls This Oalris) Statemeat)
Participant's Rate Covenant and Somces of Payments ............ 24 hfodigcarion of Agreement . 24 The Supply System Eztub)ts 24 The Supply System, organized is 1957, is a music)pa) corporatioa and a joint opcrausg agency of the Smtc ot Wash)sgton. Its members arc IS operating public uriivty districts asd thc Cities of Riehbsd, T)IE PRMEGT AGREEIIENT 24 Seattle and Tacoma, all located h thc State cf Wash)sgton. 'Ihc Supply System has thc authority, among Term 25 other things, to acquirc, consuuet aud opcratc planus works and faritities for thc geseratios asd trans-mlsrios of e'iecuic power asd energy.
Design, Liccss)sg asd Cosstzuctios of thc Project ................ 2$
Fisasring 25 In addition to a hydroe)ecuic pro)NS, thc Supply S>stem presently owns asd opera.'es the Hasford Project, a stcam electric generating plant operated in conjuseCion vdth thc United Statm Energy Resources Budgets 26 Development Agency's (fmmeriy the Atman Energy Cotr nMon's) New Prodtmon Reactor os thc Operauoa aad Mrisumancc . 26 Agency's Hasfoid Reseivaritm, rear Richland, WashisgtoIL 'I)ris steam plant has a same plate rarirg Bonds for Replacements, Repairs am) Capital Addirions .......... 26 of 860,000 kilowatts, has been In operatios risec 1966 and Is currently onc of thc t<<o largest producers of nuclear generated eicetricity is the United States. Thc Supply System is currently usdeztahng. Lv Bonneville's Approval and Project Comuimst .................. 26 addidon to thc Projea, thc deieiopment of four other suriear generating plants. Two wii) bc located Ezhib)ts 27 oa thc Has(std Reservaiion scar II:c project asd arc 1,250,000 kilowatt phnts to bc is operation by 1932 asd 1934, respeerively. Thc other two arc 1,240,000 kilowau plants h Grays Harbor County, DEscau TIGN oF 1975 A BGNss AND CRETAN PkovlsloNs GF TBE Washington. The Sist of thcsc proj~ is to bc joistly owned by thc Supply S>Stern (70%) and four RESGLIITIGN ~i~ SurrzasIENTAL RESGLIIIIGN ................... 27 investor owned uiiliYies (30%). Joint ownership of thc second project is under study. These plasts The Bonds and the 1975 A Bonds 27 arc to bc in operarion by 19S2 and 1934 respeerively.
Subsequent Series of Bonds 29 Thc Joist Power Flensing Cotmtfl, conshtisg ot 110 pubidc and private utilitics is the PariSC Notth-Additiosal Indd>M'css Other 'Ihan Bonds .................... 29 <<ust and tbc Bonncvilic Power Admhusuarios, a bureau of thc United Sta:es Department ot thc Interio, has phaned through thc development of thc H)zho rheims) Po<<ur Progzmn thc comdissrios ot Consuuction Fund; App))carion of Btmd Proceeds ............... 30 cz)srisg asd future c)eetric zcsomces in the Pae)5c Notthwest. Thc nude" r e!Cetric generating plants, Other Funds Established by the Ress)u&>n; Flow of Reiusues ..... 31 ine)ud)sg ~ pro;CCL which will be comuueted and operaud by thc Supply +Stem arc aa Istegra) asd Cezts)s Covenants 33 major paw of the p)assed c)ecuic genmarisg power c.pacity for thc region under that Progiaas Evests of Default; Retmri)cs .. 35 Pmpose ot Lsue Amesdmutts; Supplemental Resoturioas ..........~............ 36 Thc purpose of thc $ 125,000,000 Wariusgton pub)ic po<<ur Supply System Nudear project No. 2 REGISTRATIGN GF THE 197S A Bohos BY STATB ALTtITGR ~ ~ ~ 36 Revenue Bonds, Serie 1975 A, is to Ssarm a portioa of the cats of consuuerisg and acquirisg Ihc Project. To date thc Supply S>sum has issued aa aggregate of $ 355,000,000 ot Bonds for the sano NEGGTIAELE INszatrsmzs 37 purpose. It has been esrim.ted that the total permanent gnaseing requLM for the Project, Ise)udisg thc LITIGATION 37 Isitia) nuclear fuel corn asd isterest durisg eonsuumios, less temporary mvcsuscst Income, wIII bc S 614,000,000.
A'FFROVAL GF LEGAL PRocEED!NG$ 37 Thc Project vril! bc located on the Hanford Reservation but will be Snanccd and accounted for TAx ExEMFTIGN 37 Independently of the Supply System's Hanford Project currently h operarios on thc Reseivatisn and Mlsc E LLANEous 37 all other current or planned Supply Slstem projceu. 1hc project will consist of a hoTiing water nuclear eleeuic geseratisg plant <<5th a nomina) ca~ty of 1,100,000 kilowatts, together with associated ExlaatT IThc Pazriripasts 33 faeilirics to deliver the output to thc 500 kV transmiss)on faeihrics of thc Federal Cclumbia River Eattatv IILcuer of R. W. Beck asd Amoeba ............... 40 Power System located in thc vicinity of the Project.
Exmatv IH Letter of Bu~ am) Roe, Inc...................... 47 Cossuuerios Cosuaets asd Sehed"ia ExtaaIT IV Op&as of Coume) 54 .Thc AEC czmstmerion pcisrit ms obtained on hfareh 19, 1973, at <<frich tkvm ~rion of Lbc EENNIT V Bonn viih Power Adms)suarion Projmtuf Rcvcn cs .. 57 p!1st proper <<us smiled. As of Dcoembm 31, 1974, equipment asd eonsuuetion cosuacts totaling
$ 2SS mgiion, eovm)sg appmrimateiy 7S% of the estreat)y eiriimated total direct oosstruerion asd equip.
ExmaIT Vl Leam from BonncvKC power Adnrinsuator to projcm znent eosu (Ine)udisg csea)srion but czrimivc of esgiscerisg, consuuerion management, asd conris-PL~pants 0 ~ ~ ~~ ~ ~ 58 gemrics) g had been awardM.
~ As of December 31, 1974, overall constru~on was estimated to be 13.093 complete comps:cd Among t5c categorie specie<<aUy lnduded as expenditures that Bonncvigc may nate from thc to a schedu!cd 33% complcrion under the orign J schedule wK<<h con:cmp!atcd a commercial operarion Fimd is payment for "the purchase of elecuic power (ine!udLig the eat!dement of e!cctric plant capa-date of September I, 1977. Commercial opcrarioa is prcseady schcdulcd for Juae I, 1978. ... if such purchase has been heretofore authorizoL..." BonneviU<< has smM (see Exhibit Vl) bUity)
Further Information concerning progress of construcrion, construction schcdu!cs, aad major coa- to thc Supply +stem ard each Pgriicipant that, ia a cordance vdth thc proviYions of thc Transmission tracts B <<unzoned ia ExhiMt IIL Act, ii sill pay in cash from the Fund'any costs biUcd to thc Pa~pants not paM enough nct bUUng credits on a parity <<iA other BonnevU!c operating cxpmses ard prior to any payments by DonneviUc to thc Treasury for repa)znent of the Federal investment in thc Federal Columbia River Power System Securit for thc Boads thc Pa<<<!pants, Net BUUng Agre<<ments, and bonds issued pursuant:o the Transmission Aet. Da~ncviUc projmed rcvcnues which u(U bc avid-ab'1 for suc5 purpose arc set forth in Exhibit V. Bonne"iUc is obligated by law to cfwzgc rates for Effect of Neir BonucvU!e Legislation, and Rate Covcaant elemric power and transmission of electric power which will recover the "cost of producing and irans-Tho Bonds, including thc 1975 A Bonds, and thc interest thereoa arc payable solely from the Bord m!ufng such <<I<<ctric power.
Fuad crcatcd by thc Resoluuon, and thc moacys p!<<dged to such Fund arc limited to thc income, revenues, r<<ccipts and progts derived by the Supply Sysicm through thc ownersUp and operatioa of the Project. Rase Covvnarrr No PardYipant vdU bc i<<tin!red to make payments to the Supply System except including aU payments to bc made to thc Supply Sysiem pursuant to thc Nct BiUing Agreements described from revenues deriv<<d from thc ownership and operarioa of its ehutric utiUty properties. Each Pairidpant her<<hi, and Bond proceeds. Interest on thc 1975 A Boads will be capitaUzcd untU September I, 1977. has covcaan!<<d that it will esmbUsh, maintain and coL'ect rates or <<!ages for power and energy am!
other services fmnbhed ~~gh its eioctric utiL'ty propcrrics which shall be ad<<i!nate to prov!dc revenues The Parrfcfpcnrrr Thc Project's catirc capab!Uty has bcea sold by thc Supply S)>~ pursuant to summnt to mh requ!red payments to th Supply S)amm.
thc Net BiUiag Agreements to 94 P~ciYipants, consisting of 27 man!el~<<ties, 22 diwrim ~ 45 <<lcctric cooperatives located principriiy in tVashing,on, Oregon, Idaho, hfoataua and CaUfoiula, <<ach of whom is a statutory preference customer of Btmnev!U<<. The PactiYiponts'hares of thc Project's output raago from approximately 15% to 0.005 7o. An aggregate of aptuoxlmately 225% of the output ls sha&
by 64 Patt Yipants each of which has a sharc of less thaa I~io. Sec Ezhbit L
¹r Billing Agreemclrrsr Each of thc PartiYipants has entered into a ¹t BiUiag Agreement with thc Supply S)item aad Bonn<<i(U<<. Pursuant to thcsc agreements, eA" Participant (i) wUl m6c pay-ments to the Suppjy Systeru for its proportionate sharc of tLe Project's anrual costs, including debt servitx;, and (ii) has assigned its sharc of thc Project capability to Boom~<<. In comidcration thereof, Doaaci(Ue willcredii thc payments by the Parricipants to thc Supply System against billings by BonncvUlc to the Participants for povur and ccttah ot5<<r services rendered by BonneiiU<< under other contracts.
Dcforo BonneviU<< <<ntered into thc Nct BiUing Agreemeats it dcteinrined ~t its csrimatcd aggregate bilUags to each of the PattiYipa"-ts auld be not less than 1159) of DonneviU<<'s nct bUUng obUgations to thc respecrive participants under aU agreements providing for net bUUng. BonacviUc has agreed ia tue Net Billing Agreements thai vrith respect to any future net MUng agree en4 <<at<<red hto u"'.th any of thc Pmtiripants it sill determine that the mc csrimated 1!5'ovcmgc is presenL fhc Partlripanis are obligated, bc fuming no later thaa Sep:ember I, 1977, to pay thc Supply System their proportioaatc s!ares of the project's annuJ costs, and BonncvUIc B obligated to make credits as aforesaid, whether or not thc project is completed, opcrab!e, or operating amI notwithstaading thc suspension, interruprim, interference, reduction or curtaUment of the Project outpuL Effect of ¹w Bonnev!U<<.L<<gls!arlonr Thc Nct BiUing Agreements provide for vo!untary and man-datory assignments of a Participant's sharc if the ct biliing credits to thc PartiYipant by DonneviUc crc insutU<<lent to oUset the Pmricipant's ob!igations to thc Supply S)item, and, if these assignments arc not suihcicnt to Mane<< the P~:ipant's obUgations and nct billing credits, for cash payments by Barmn viUc "subject to thc avaihbihty of appiopriarions for such purposes." Subsctlucnt to thc Supply Sys:cm'4 cntering into thc Net BilUng Agre<<mens, t5c Fed<<id Columbia Rivur Tramnussion System Act (scc secuoa enrided "BonneviU<< Power Administrauoa") was enacted a"-d siged inio Iaw The Trans-mission Act authorizes Boanevii!c to use f4 rcvcnucs srithout f"cher appropri riom of Co" gim to maL<<
expcntUtures from t5c Bomtcv!Uc Power Adminlstiarion Fund ("Fu"-d") for aay purposo accessary turcs must bc htc!uded ia BonncviU<<'s budges submitted ~
or appropriate to carry out the daries fmposwf upon tho Administer p" rstmnt to hw. These <<xpenth-year to Co "gr~
I I'
OFFICIAL STATE'>IEiWT Public Unity Dhtrlct No. I of Douglas County ............... Prcjt Pub!ic Urgity Dutrict No. 1 of Ferry Co!sty ................. Thoutas F. hrcupa GP PubH- Utlti!> Disuict No. I of Franklin County ............... G!ena C.Toevs Waltdeyv Public Uili:yDis:rict Ãa 2 of Grant Comty ................. John L WASHINGTOiN PUBLIC POWER SUPPLY SYSTEM Pub'.ic UtilityDhuIct Ntx I of G:a)v Harbor County........... John J. >Velch~
Pubbc UtIIItyDisuict No. I of Kltutas County ................ Ihrold W. Jenk!ns A Hdunlefpa! Corporation and e Joint Operating Agency of the Stats of Washlnyon Pub!ic UtiTity Disuict No. I of KHchtat County ............... Amo!d Gerald C. Fenton Public Uu!ity District No. I of Lewis County ................. Edwin W.J. James relating ro fts Pub!ic UtilityDistrict No. 3 of h'1ason County ................ Taylor 8125t000t000 PubHc UrilityDisulct No. 2 of Parigc County ................. Quenunhftxer Laac City of Richland . Bray Washington Public Power Supply Systcru Nuclear Pro jcct No. 2 City of Seattle .... Gordon
.............. E Jemteymf Vickety'olf Pubhc Uugty Dis:rict No. I of Skamsms Co>>ty Revenue Dondst Series 197S A Public Ut!Hty Disiict Ntx I of S~mbh County ............. >V.G.Ba:cdcttti Hu!bert, Jr.v City o! Tacoma . A.J.
March 6, 1975 PubLc UtiTityDisuict No. I of >Vahk!skum Cotmty ............ Frmcis Longe The purpose ot th!s (> cia! S:aten:cnt, ash!eh Includes the cover page hereof and the cabin he!cut ~ Exccetivc Cow-ttua Meta!vs is to set forth information concerniug Washington PubHe Power Supply System (the "Supp!y System"). Is The Supp!y S>xtmt presently <<n:ploys approx!ma!riy 320 pert!ms, Indudiag a higMy qusHSed Washiuyon PubHc Power Supply S>vtem Nuclear Project No. 2 (the "Pmjec!") as is more fuHy Ccscribed tcchniceI staH ~hose combined experience In the nuc!ear Held totals over 1500 mm.yean and whose herein unCcr Ihe Project" md is $ 125,000,000 Wash'vyon Pubic Power Supply S>vtem Nuriear trsfnhg Iae!udes dhcip!ines in electrica, mechancal, civil and nudear eng!neering. Through thc opera-Project No. 2 Revenue Bonds, Series 1975 A (the "1975 A Bonds" ), in connection with thc sa!c by the tion of thc Hsnford project daaibcd below thc Supply System staH has accmnulated substandial cxpcrl-Supply S>stem of the 1975 A Bonds and for thc Motmarion of aH vho !nay b~mc hatders of such c" cc ia thc opemtioa of a large suan electric generaring f riHty, 1975 A Bonds. The 1975 A Bonds mv to be issued pursuant to the Reiised Code o! >Vashhyon, Chap.'er 4332, as amended (the "Act"), Resolut!on No. 640 (thc "Resdurioa") aCopted Junc 26, 1973 Tbe Supply System's Generating Projmts by the Supply S>vtem and a reso!ation supp!cmental to the Reso!urion, Resolution ho. 739 (the Tbe Supp!y S>vt m ovns and operaus an 860,000 kHowau <<Iectric genera6ng plant and asso-
"Suppleiuental Resolution-) adop:ed Mph 6, 1975 by thc Supply S>stern. 'Ihc Supply S>stem ciated facHities (the "Hanford Project" ) located on t"e Her!oui Reservarion of the Un!md Stems Energy has hereto!em Issued pursuant to the Rcso!urion $ 355,000,000 principsl amount ot bomls for thc Pro~ Resources Development Agency (the "ERDA"), onc of thc successor ayncies to thc Atomic Energy Commission (thc "AEC"). The Hanford project was coastntaed ia accordance with aycemcnts bo.
Hughes'oward which bonds, the 1975 A Bonds and aH addirional series ot bord! whkJt may be hereafter Issued pur-suant to thc Resolution to pay thc cost of acqu!ring and consuucting the Project are herein caHed tavcn the Supply S>stem, thc United States of America, Department of & laterior, acting by and coHectivcly the "Bonds". through thc BonneviHc Power Aduuulstrator ("Bonneville" ), aad thc AEC. The Ha<ord Projem is currently one of th two lsryst producers of clcctririty generated from nuc!ear cncrgy in tbe United THE SUPPLY SYSIEhf States. Steam is proviCed for thc Hsnford Project from thc Ncw Production Reactor (the "NPR")
owned and operated by thc ERDA. In 1963, thc Supply System Issued $ 122,000,000 Hanford Project The Supply S>vtem, a inunitripal corpurarion md a joint operating agency of thc State of Washington, vus organized in January, 1957 pursuant to the Act. Its membership H made up of IS operating public Elecuic Revcnuc BorW (~ "Hmford project Bonds" ), of which $ 60,000,000 uvre outstanding as of January I, 1975. Thc Supply System a!so ovtts and operates thc packavgd Lake Hydroelecuic project unity districts md thc Grics of RichlarA. Seattle and Tacoma, aH ltxnted in thc State of Washfnyon.
The Supply S>stem has the auritority, among other things, to as!aire, consuuct and operate pttets, works with a nmtepistc rating of 2T500 kVa. Ia 1962 A 1965, thc Supply S>stem sold $ 10,500,000 and
$ 3p00,000 packwood Lake H>riroelenric project Revenue Bonds, of which $ 13,1SI,000 werc outstand-a"d feei!itics for thc generation and trmsndssion of elccuic power aad energy. The Supply S>vtem has ing as of January I, 1975.
thc power of emhcnt do aht, but it is spec!ScaHy precluded from the condemnation of any p!aus, works
'Ihc Supp!y System Ins bcgua preHminary work on a 1,250,000 hloaau nuclear cicctric generat-or faciHiries ovtted aad operated by any rity, pubHc uriHty dhtrict or privatdywwncd e!ectric rtility.
ing plmt knovn as the tVmhinyon pcblic power Supply S>vtem Nuriear project No. l. 'fn June 1974 Thc Supply System has is principal ofHcc in Ricldand, >Vashinyon. The management and control thc Supply System issued $ 77,000,000 principal amount of revcnae notes Lv orCcr to pay a portion of of thc Supply System is tvsted in a Board of Directors composed of representsuvcs of each of thc thc costs of such pre!i!treaty work. This plant vriH be constmctcd on the Hsnford Reservation of the members. Regular meeriny of tbc Board me held quanerly. ERDA at a site near thc project and is prcscntly scheduled to begin commerrisl operation ia 19S2.
Thc Executive Committee of the Board ad!ala!stets the business of the Supply System between Thc Supply S>vtem has abo begun preliminary uvtrk on a 1,240,000 kihwatt nuclear plant at a regahr meany of the Board. The Exccutivc Commiuee hoMs regular mcctmy !vice each month md site near Sasop, in Gra>v Harbor County, Washinyon, to be known as Washinyon Public Power special rneeriny as of!ca as thc business of th>> Supply System may requLm Supply System Nuriesr Prolea No. 3, which will bc 70'Io owned by thc Supply System aad 309> owned hfembers of the Supply S>vtem and theirrespccrive rcprcscrtativcs on thc Board o! D~rs mu by four fntvstor ov cd uu"'ties, and it hs Hnmced its ownershp sharc of prcHmimy work in om-as foLtows ncction with sech plmt wiX thc procuds ot a $ 29,000,000 note Issue. Commcnriai operatioa is Public UHHty Distfiet ho. I of Benton Cotmty ................John Ga'Csbury prcserdy scheduled for 1982.
PubHc UriilityDistris No. I ot Chelm Comty .............. '.. KLby B!tiicy!ey la response to arequest of Lse Pubhc Power CcunriL consisring of morc thsa 100 s:atutory prcf-Public UtiHty District No. I of CLtHsm County ................Alvia E He!cher ercnce cunomers of BonncviHe, thc Supply S>stern has also begua prelimiasry worL on ri:c Supply PubHc UtiTityDisuict No. I ot Chrk Couaty .................Ed System's Nuricar Project No. 4 and Nuc!ear Project No. 5. It n presently phnncd that Nuclear UtiTiryDistrict ho. I o! Con!itx County ........... " ".D. E Fischer'ubHc project No. 4 will be a duplicate pimt of thc Supp!y System's Nuricar prohct No. I on the Hanford Rcscrvarion and w01 be phccd ia commercial op ratioa ia 19S4, and that Nuclear Project No. 5 will bo a
I 4
4 1
'I
duplicate plant ot thc Supply System's Nudear Project No. 3 at thc Satsop site rear Abadcen in Grays to make expenditures from the BoaneviUc Power Administration Fucd ("Fund") for any puqesc access ry Harbor County, Washington and wiU bc phced in commercial operation in 1954. The Supply S>stem or appropnate to carry out the dui!cs imposed upon the Adminh!trator pursuant to lsw. 'Hiero experdi-hss issued $ l7.500,000 ot revenue notes to finance this!cork md is plannhg to issue additional obliga- turcs must bc Lauded h Donne!iHc's budget submitted each >car to Congress.
tions ia a tmal amount up to approximately $ 100,000,000 to retund tM $ 17,500,000 of revenue notes Among the caegories specificaUy ir<<dudcd as cxpenditcrcs that Bonne!i'Jc msy make from the and continue thc prelimiaary work. Thc Supply S)stem is ncgofisting uith the investor<<ouced utilidcs Fund Is pa)ment for 'lhc pard>>sc ct electric power (induding thc entitlement of electric ptsct cspa-who sharc ouvicrs!tip in thc Supply S)stem's Nuchar Project No. 3 concerniag possib>> shafing ot biL'ty)... if s W purchase hss been herctoforc authofizcd.. i." BonncviUc hss stated (sce Exhibit VI) out>>tship of Nuclear Project <<No. 5 acd the Pager Sound Power & Light Compsay's Skagt Protect to bc to thc Supply System and each Participant th"r, h aceordsr>>c uith the proviYions ot thc Transmisdon located in Skeet County; Washington.
Act, it uiH pay h cash from thc Fmd auy costs biUcd to the Patficqpats not pdd through ret bi!ling AH pro~ heretofore undertaken by thc Supply $ )stem except Nudcar Projects Nos. 4 acd 5 acdits oa a pafiiy uith oker BonccvUlc operathg expenses aad pfior to sny payments by Boni.eviUe have beca financed as separate s)stern* The obligations issued with reipc t to each such project are to thc Treasury for reps)xnent ot thc Fcdctal h! ustment h thc Federal Columbia River Power System payablc solely from thc rcvcnucs ot that pioject. The project is simihrly being ficaneed as a separate and bonds Bsucd puauant to the Transmits!on Act. BonncviUc's projected revenues which will be avail-system. It is antiYipsted that Nuclear Projects Nos. 4 and 5 and, pahsps, the Skagit Prouct wiH be able for such purpose are set forth in Exhibit V. Bonncvilh is obligated by law to charge rates for electric finmced asones>stem. power and transmission ot dccaic poucr which sill recover thc "cost ot producing and transmitting Oa thc bss!s ot the estimated cost and interest during constmction for thc Supply System's Nudea such eleetficpoucr."
Projects Nos. 1, 2 and 3, it is estimated that the Supp!y System will rcqdre long-term financing for these pa) ~ts by t5e pattLdpants to the Supply S)stem wiH commence oa thc date whca t!>> project Is No. 1 and Project No. 3 are projected for hte 1975 or ealy 1976. The fitst long-term Projec<>lt pa)znects pno: to thc d.te the Project is ready to be opaat:d oa a eommerciJ~ basis, or Sep>>aber I,
]977, whid>>vcr B earlier, a:c Urn!ted to such a=>>cats ss BocceviUe aad thc Supply gem ape The seheduk ot fiasncicg for thc Project contemphtcs. in addifion to thc sdc ot thc 1975 A Bonds, msy bc induded h thc Atmud Budgets, as dcfiacd in thc ¹t Bilfing Agreements. BonnenJc snd tho sale ot additioad Boads tomHcg spproxiinately $ 134,000,000 as dcsml>>d ia morc derail under tbc Supply S)stem have ag.ccd that at least an amount equal to one-ha! f of thc maximum annu~l interest tho csptioa "ihe project project Financing Requitements". Thc next sale is presently conte pla>>d oa t) e Bo ds Bsued prior to September I, 1977 plus $ 6,000,000 sill bc hcludcd in such Amtual Budgets for thc sununer of 1975. for t)>> period Jsnuay I to September I, 1977. The Resolcfion provides that such anouats wiU bc us:d, fitst, to deposit h the Bo" d Fund tor c:edit to the Resene Account thc amount requited to estabHsh such SECIJRITY FOR TIIE BONDS Accorct h the amocct reqdred by the Rcsolufiicn; secotx5 to deposit $ 3,000,000 ia thc Rcservc a=d Principal of <<cd iaterest on the Bonds a:c pa)ub!e solely fmm the Btxtd Fuad cr ",A by u Resolution acd thc clone)'s p!edged to such Fend arc HmItcd to the hxmc, revenues, receipts a"d p.'ofits Coathgcncy Fund est bHshcd h the Resolutha md; t5ird, to provide $ 3,000,000 for uvtrkhg c:pitd fo. the Pro~
d:rived by the Supply System through the ouccrship and operafioa by it ot thc Project, inclcdhg aH Payvncnts acd crew'ts tmder t5e Net BUUcg Agreements arc reqdred to bc made whew o: cot tha psymeats to be made to thc Supp!y S>stem pursuant to certah agreements (thc "Net BillingAgrcem:ats") project is completed, opcrabL; or opersthg and cotwtthstscdhg the stapcnshn, reduahn or curtd).
described belo!v, arxl Bond proceeds. Interest on the Bonds wUI bc capitalized to Septcmbcr I, 1977. ment ot the Project output.
Tbe Bonds arc not general obligsiions ot the Supply S)stem snd neither thc faith and credit of tt>>
Supply S)litem or thc State ot )Vcshington nor any rcvenucs of the Supply S>stem derived from other THE PROJECT Projects v'hich have been or which may hercaQcr bc undctta'ken by the Supply System arc p!edged to the payment thcreoL The project will bc ctmstructed, owned and operated by the Supply S)stem pursuant to aa agree-ment (thc "project A@cement") 2>>twz>>n th. Supply System scd Bocccv!Uc as part of thc H>xLo Thernd The Supply System has enter% hto Nct B!IHng Agreements ui<<k Bocnnih!e and 94 prdetcnce power Frog!an, a progm designed to meet thc aauYipatcd needs for power ia the pacific NorthwcsL customers of BoaaeviUe Usted h Exhli.t I to Gus Offidal Statemcct (the "PatiYip "ts"). Purse<<"t 'Ihc H)dio Thermal Pouur Program B dacfibed ia a htcr section.
to the Nct BiHing Agreemmts (i) the Supply Sys<<>>m has sold the project's entire capabTity ia sham to thc Participants whch, ia turn, have aH assigned thdr respective shacs to BomtevZc, (ii) each Locstioa ot tbe Pmjcet Participant uil pay the Supply Systan its pro rats share of the atmusI costs (icdcdicg pfiMipd The projea, with the exccpfioc ot thc administrative setvice buHdhg. B under construction on thc of and interest cm the Bonds) ot the project and (iii) in consideration of thcsc assignments, Bonnev!Ue Iisnford Reservation, approximately three miles west of the Cotumbia River and 12 miles nonh ot the wiU credit the amounts paid by the Paidcipants to the Supply System sgaiast anounts owed BonncviUe City ot RichLcd in Benton County, KVa!!iagton. The Project site has been leased trom the ERDA for by t5c Participants tor power acd services provided uader other contracts with BonneviUc. This system a tern, induding options, extending beyond July I, 201- A Ipse ot the land in thc M of thc ot offsets or credits is caUed "net bUHag". Columbia River necessary for thc wa:er i"take and,discharge hc'ditics is to bc executed with thc Wahhg-Thc Net Billing Agrecmects provid: tor voluntary acd cmdatory assignments ot a Panda nfs ton State Department of Natural Rcsourccs as soon as the area to bc less:d!s fiaaUy defiaed by th-sharc if the net biUirg credits to thc participant by BonneviHc arc hsuKcicnt to ofisa the patLqpsnt's Coips of Ecyneers'ermit. 'Ibe Hadord Resavation Ues mostly h Ben:on County and encompasses ohqigathm to tb>> Supply System. scd, if these assignments arc cot sutficicnt to Manna thc Psmicipsct's 559 square c!Ues of barm dcsert Isml ia a sparsdy setQA arcs of centrJ Washhgton. The Resen;aticn obiigstioas a" d net biUiag credits, for cash payzcccts by Boc"evilie "subjca to 0>> avaUabiTity ot appro- L~s served as a nudcsr hdcstrisl centa dncc 1943. ProxLdty to nuclear support icdusoies oa the pthtions tor s!>>5 purposes." Subsequcrt to tbc Supply Systmfs entcrLng into the Net Biliing Agioe- Rest tvutloa yves the site a dcdded advantage for a cce!ear power pmject. Favorab!e geegaphic, mccts, the Fcderd,Columbia River Transcission System Aa (the "Transmission Ad"), described gcologimi, seismc!og)A and cHmato!ogieai chsrmefisdcs, adequate water supply, as uvH ss remoteness under the sedhn ectit.'cd "BonnevUle Power AdmicistraCion", ee ended "d sign d hto hw. Thc from large pope)afioa centem, ac fe t- es ot u site that dso coatfibute to its desirabiHty for a nudear
~
Tr "smitsion Act authorizes Bonccvilh to usc its rcvenucs uiithout furker appropri" fons of Congress power site. Scatde is approxLc tdy 160 s'-.!inc mrcs ficm the site port!scd B spproximstdy 180 ance miles fmm the sltc.
10 11
<<<<<<<<<<- k
~ ~
' 4 - '<<M '.K'407 4v 8 3<<a . Nr,v oc wee +w~ a'3<<xfr8M<<4<<3~., 43 4,,3444M 74 D<<s<<riptlon of the Proj<<ct Proj<<ct Fiaaadng R<<qu88<<m<<nts The Project <<(B conshu of a single unit boiliag <<"ter reactor cle tric generatirg smtioa, h ilng a Thc Bords h<<rcto!om issu<<d wem, <<ad the 1975 A Bonds arc being, issued to Br<<ace a portion of nominal capacity of approxL~'.<<ly 1,100.000 kBo<<<<tts, the necessary t:ausfouaadion and related thc cosu of cons ~<<tL~S and acquiring thc Proj<<<<L AddiYional Bonds necessary to compl<<t<< the gaming fsciTiriies to ieterconn<<ct thc gcneradng statio" <<5th thc Fcdcral Colu bia River Pow<<r System and an of the Project ia Ow estimated aggr<<gate piincipal amount of $ 134,000,000 <<iB bc issu<<d ia thc future.
adininistrstive sctvice building. The phat layout and design inc!<<des coasidera44on of possible future Assuming Be additioaal Bonds <<(B bc issued h more than onc series, it is expect<<d that the next ser<<s expansion by the addiYion of another gencrafing unit. <<1B be issu<<d during thc summer of 1975. 'Ihe anmunt of Bnanciug tas been bus:4 oa the a<<tv<<i interest The sevea basic stmctures comprising tk g<<aerating st.tioa are (I) tea<<tor buBdL<<g, (2) radio- rates for thc Bonds herc:ofore Bsucd, ad manA amtusl Later<<st rates of 7.25% for the 1975 A Boads active waste buBdiag, (3) turbine genera or banding. (4) diesel generator bui!di"g. (5) cooBag to<<ers and <<md 7.25% for thc balance of thc Bonds.
cir<<v!adng water pump house, (6) riv<<r makeup wat<<r p!ant and (7) s<<rrice buiMing.
Based on thc foregoing thc totd Baancing r<<qvkemcnu for the project are showa ia the foBo<<1ng The nuclear stcam supply s)st<<m will contsh a G<<n<<ra! E!<<<<tric Company ("GE-) boiling water tabulariiim. 'Ihesc estimates are based on thc project b<<ing placed h commercial operation by June I, reactor of proven desiga v ith a guaranteed rating of 3,330 megawatts th<<rmaL It wiB supply approximately 197S. A sign!6<<ant dday h project completion wou!4 result in an increase ia the finar4<<lng rcquircm<<nu.
14,295,000 pouads of steam per hour at 9S5 ps!a. The spt<<m <<(B be comp!etc with stcam scp rators and For furth<<r information s<<e page 49 under the caprioa "Conurvuion Costs and Coastru<<tion Contracts."
driers, rccircuhting pumps and subsystems including ~Lse required for normal op:rariion and for shutdo<<xi.
The turbine-generator viB consist of a high-pmssurc turbiac secdoa on the san:e shaB with three lov'-pr<<ssure turbine se<<tions aad an electric g<<vera;or irith a nomktal capacity of appoxhuxtdy KSXISIATKDPROJECI'DIA4iCING REQUIRED 1,100,000 kBo<<<<tts. Transformadoa from 25 kV to 500 kV will be pmrid:iL
~ Thc condeaser cooBag <<<<:er <<(B be discharge! from the turb!a~en<<rater buBding to six draft evaporative cooling to<<vrs. hick<<up water to rep!acc thc cvapor tive losses of thc eucv<<ting water
~al St<<it<<tares and Iinprovcnienu ~ $ 64,624,500 12S,697,900 Re"etor P!ant Equipm<<nt mll be ob:ain<<4 from thc Columbia Rior. 108,003,000 Ttubo41<<n<<radng Pl<<nt In addiYion to the service buBding at thc site of thc gener-"ting stariion, thc Project indudcs an ad-tnirlsuarive servdce b<<Bding located <<Blate h thc tddtdty of Riddand, t8Vashingmn, which has beea com- Accessory E!<<<<tric Equipm<<nt 30,999,900 p!<<tcd and provides admfnisuativo space for the Project and ether Supply S)stem activiYies. hBsceliencous Pow<<r Phut Equipment 2,779,900 Station Equipmeat 6,643,100 Inldal Fa<<l Core Tempor~ Coastrvcriion Faciliries 4,080,800 The ini'tial fuel core B bciag svppB<<d by GE as patt of thc rex<<mr eonuacn The fu<<1 ass<<mbB<<s la<<iud<<d ia the inids! core <<(B bc essenvaBy identic<<! to hiYial corn fuel assembLies b<<ing suppB<<4 by Subtotal Dirca Ccnsuucrion(I)(2) $ 345,829, 100 GE to other el<<<<sic utilities ia the Unit<<d States ia thc pc<<iud 1975 through 1981. GE cxp<<cts to pro Nvdesr Fu<<1(3) . 3S,980,000 tide over 30 initial foci cores during that period to some 19 dB!ercat utiLidcs In<<at<<d in various pans of tho 19,240,500 Sa!<<s Tax(4) .
Urdted Statm.
Consuvetion hfanagement(1) 57,818,000 Cons tructioa Contracts aud Sch<<dale O<<u<<r's Direct Cost(5) . 44,100,000 The Ãucl<<ar Regulatory Conunission (another sv<<c<<ssor agency to thc AEC) (thc "NRC") con- Coating<<a~(I ) 26,478,200 struction p<<rmit was obtain<<d on hfarch 19, 1973 at which time construcrioa of thc p!ant proper was Esriimated Bond Discount and Other Finandng Expenses 7,326,000 start<<4. Thc instaBariioa of temporary faci!itics is comp!ete. Thc re<<<<<<or building subsuuctvrc has b<<en comp'!eted an4 thc containment vessel which rests oa it was 83.2% comp!<<tc as of Dcccmb<<r 31, 1974. Capias<<4 Interest During Consuvcrion . 125.60S,000 Thc substracturc for thc turbiae-gen<<rater Wilding has been comp!<<ted and w>rk fs now in progress Gross Requircmcat 665,379,800 on thc tvrbhie pedesml and thc walls of the turbine-generator b<<Bdiug. The substructure of thc radio-act!vc <<<<stc building is comp71<<te aad <<virk is starting on thc superstructure. Concrete work on the Less: Est!mat<<d lao<<me from Temporary Intustm<<nts . 87.379.8M spray pcs and service water pump house is ncarhtg complerion. KVork has s:mted oa thc cooliag Ã<<t Require-ent 8 6 74,0MOM tower bases aad thc <<Lola;ing water pvmp house. As of Dc<<ember 31, 1974, overall consuvction was est!mat<<d to be 13.0% comp!ete compared to a s<<hedv!<<d 3S% compt<<tioa vnd<<r thc oriynal schcdu!c
<<hich coat<<mplate4 a commercial op:ration da4<<c of Scptcmber 1, 1977. (t) ts<<3<<4 <<o <<38tuat<<s by C67<<it<<87<<Coa P4<<rie<<<<r <<<<esse<<4 ia 878btbh!IL As of D<<<<ember 31 1974, equipment aud consuuctioa contracts tot<<Kng $ 25S,058,567 have b<<<<n (2) I<<<<tiit<<s <<6<<st<<&a.
~
~
entered into. Furth<<r information conc<<ruing major cquipmcnt aud consuuction contracts is contained (S) its <<imt<<6t by tb<<8@sty Syit<<m.
in Exhibit Ill.
Thc sdi<<d<<J<<d da:e of comm<<rdal op<<radon has bc<<n d<<layed to Junc I, 1978. 'Ibe Conttrucriicn
'4) Ie<<tot<<s si!<<s tax oa 73<<<<t<<sr fuiL Enf5n<<er is of the opinion that thc program for consuuukin is realistic an4 a co~<<rdd operaron dsm (>) As ~vd by tb-. S>>y Syr~ fed~ <<ov of tb of June I, 1978 has a r<<<<sonable chance of adiicv<<m<<nt; however, it wBl squire a sfgiGma improvc-me=t in the r " of consuuedon ptugrcss.
12 M
In addition to thc foregoing amounts obtained through issuance of Bonds, funds reqidrcd to aake hours annually. 'Ihe costs rcfiect those operating costs that weld be charsctaistic ot a mature plsnL the necasary pa)vncnts to thc Reserve Account in thc Bond Fu".d, to ptovidc <<v7rkieg capital, to The Supply System anticipates additionsl expcnscs of $ 250,000 and $ 125,000 during tbe fint two provide an initis) Reservu and Contingency Fund and to provide a contingency for fuel arc expected to oper ring years, respeaivcly, for Project monitoring.
bo obtained under thc bet BiBing Agreemcnts desaibed Mow during thc period beginning January 1, 1977 and extending to September I~ 1977 as follows: ESXDfATED PROJECX'NNUAL COSTS
$ 21 ~ 127,000 Plxso COS7$ !
Re<is<<Account in Bond Fund(1) . Intern'. and Aaorrization<t> $ 47,220,000 iVorking Capital(2). 3,000,000 4,722,000 3,000.000 Pa)=cuts to Rcscrvc and Contingency Fund Reserve and Contingency Fund(3) 2,000,000 Insurance Fuel Conriny"cy(4) 8.000.000 5,5~&,000 Operation and hfainmn nce (Fixed)tn Total 535.l'7.000 A~n:strative and Gcnerssm .. 1.315.000 Sub:otal . $ 60,782,0GO (t) Eiumstod smo5mt rcucfrod by rbc Rcietcuoa.
(2) Ame3mt 533bioa to funhcr saitystt Sad approval by Bee53OVxh acd ihc Supply Ssstoiiu Less! Surplus of Prior Year's Payc~t to Ress!su amf Connngency Fundo) 3.322.000 Total Fixed Costs $ 57,460,000 (3) Am530mt r05!73!red by the Rose!aueiu (4) EOumstcd smo33ct to be p753vtded from advsrreid na btt!353s io pormii fowl!as of sasust VrtatxBLB C0$ T$ :
fust cata ta ihc cvoei of s ei Y'st ported of pr70rcr supply. Am535mt iubioa io f3357hcr s53stysls Fuel Cost . $ 12,996,000 sid sr,iovs! by Bemiovti'N sed thc Suppty Siswm.
If tor any reason such amounts (other than the fuel conringcncy) are not proiided under the Nct Operation aud hfalntenance (Variab!c)u) .. 683,000 1,440.000 Taxes Bifiing Agreements they willbc provided through the issuance of additional Bonds.
Total Variab1e Costs . $ 15,119,000 Licenses and Penn!(a TOTAL A.'7'RUAL COSIS $ 72,579,000
'Ihc Project site on the Hanford Resavation has bccn cenificd for thc State of Waswngton by the Less: h:tercst Earnhrgs on Rose!su Funds. 2,249,000 Washington State Thermal Po<<ur Plant Site Ev<<lust!on Council as requi:ed by state hw. An AEC, now ... $ 70,330,000 Nxv A.. AL Coszs ~
NRC, cons!in tion perndt <<as issued for ihe Project on hfareh 19, 1973. Prior to that da!e cert~i site hr tr HoUR (7',ONON 3VI03............ llvl preparation was undenaken in a~!danu <<5th an exemption issued by the AEC. Tbc certifiaition by thc State of Washingeton aud thc permits Issued by the AEC werc thc subjects of intensive invesrigation and public hearings. 'Ihe construcrion permit requires that the project bc consnuacd in accordmce with Hrr 5..7733 0330M
!<<3',
Beedu 0
PR KRUW a 725570
'30r lrlietcrmt rite eo um !975 A Beads,
~~l aed a 725%
0 0 9 77
~ 3 semis! tamrcn rate on the bstsr3ee of the applieab!c ru!cs and regulations of thc AEC, now the NRC, including those formulated to pro!ca ma!swd te tp7$ fcwh.
(2) EOumstod !shoe sed mstcriih coins thc environment and the public. Extcnriive quality control procedures arc being iinpleacntcd by thc
~
(3) Competed ss f53l!5307s:
Supply S)stem to assure that the requirements of the construaion permit <<ith respR~ to quality of Psymcsi m Roiorvo sed Ceeuezoeey Fvsd SS,722,000 consnuetion of thc project <<ill bc met. prior to operation an opcraung license must bc obtrincd from the Less: EOumited s55HVH53t rcrtmred fer rceo770!s, rept tecmeau snd add;ue57S NRC, to which this funaion has been transferred from the AEC by !cant legisbtion. Nci 533ipti35 . $ 3 J22.000 (I) )rot Nap!as msy be uied for puipoios aha ihsn redceuea h power eoits h vr!ih tHH3 Additional permits to bc acquired prior to ofmratfon of thc Proiea include the fofio<<ingt Nariional pollution Discharge EEahration S)xtcm Permit to be issued by thc Thermal Po<<vr plant Site 'fhe taxi annual cosa rcferrcd to above arc bmd on level dcb! servLe over a 35 )ua pcriod and Evaluation Coatrii of the State of Washington, (2) petteit to bc Issued by thc U. S. Corps of Engmcax on estimated 1978 Icvch of labor and materials. Thc Supply S)xtcm sd Bonneville anriiripatc that maturi-under the Federal Rivers 8 Harbors Aa of 1899, (3) venus buiLhg ""d lusts)lation fmpeafon perm!4 I ties of thc Bonds <<ill not be scheduled to yield levvl debt service throughout thc period. Variations in by thc Washington State Department of Labor and Indusrries, and (4) a Water hVifiidrawal pc!~L if
~
t aa:ual costs <<ill result from sari scheduling to the extent that actual debt servLc varies from the required, to be issued by the Washington State Thermal Power Plant Site Evaluation Counrih asamd level debt service.
Projec! Output Reference is tnsde to thc reports of R. W. Beck and Associates, included herein as Exhbit H, and
'Ihe Projca is expcctcd to have a net pcahng capsbiL'Tr of I 093 000 kilowatts and fs exp~ to bo Burns and Roc, Inc., fnduded hcrcin as Exhibit III, for addiYional h!onnation reg--ding the projea capable of producing abou: 7,200,0G0,000 kilowatt hou!s annually. During a eriricai period of power and its cosbn supply h thc pacific Northwest caused by water shonage, it is expand tha thc pmject would bc cs)!ed BONNEVILLE POWER ADMLOTSTRATION upon to produce the fu!I amount o(cncrgy that it is capable of produrin~~ During other periods, however, Qmm <<ill bc tiaa when surplus <<uter willbe ava!!able to genaate power at existing hyd~ectric pro}cas Bonne>2!e, a bureau o( the U. S. Department of the Irtcrior, <<<<s established by thc Bonneville thereby pcnnitthig a rcduaion in the total amount of energy produced at thc therari elccrric projects project Act of August 20, 1937, to build transrtussion fa&itics and to market power from Federal hydro-to bc construacd under thc Hydro Thcnnal Po<<ur Pro~, in:luding thc Pro;ect. electric projects in the parifie NonhwcsL Such projaa now numb:r 27 <<ith an inta!fed capaciiy of 10,995,900 )dfo<<uttL Thcsc projects and authorized ncw projects and additions at cxisthrg projects <<i!l Proj~f Annual Costs Esgaa& an A costs of thl pr00jea based year 1978 am gvcn in t>> folrowag table.
on 1974 Ks aMc 14
~ a<<a of labor aaf matcriUUS ei "ted to thc gee.eon of 7$ 00 G00000 ~7 hav <<hcn eoapkted, an instri!ed capority of approximately 28,032480 kilo<<utts. Bonn ville's !!ant-
~on These J
fsefi!ries i.chde over 12.050 tniTa of llS kV to 500 kV ac and 800 kV de ansrndission lines.
tr~on f&iYics to@Lb:r with Fcda Columbia River Power Systan.
th hydroelectric project aenticucd above coaprisc tss:
Bonnev!Uc Revenue by 3fajor Chsslgmt!en of Customers(1) mfssfon s)xtem. By this method of using revenues and revenue bond Snsnchg Bonnevigc expects to avoid the nmxf ot additional'epp~riations of Congcu to ca~ out its program obUgatiom Reed Year O'er Trvann bdea Ended Jete xc prehrcaev Costom ere Rucute Udn des ~ ah Scree Total The Transmission Act re&crees Btxmcv!Ue's criynsl nussion and authorizes Bonnm(Ue to con-struct addiYitxs to thc trsnsmisrion s)stem <<ithia the P cific Northwest to intefyztc ad transmit the 1968... $ 49,134,719 $ 124!5,SIO S39,49S,338 $ 16,739,045 $ 117,8S7,912 e!ecsic po<<vr from existing or additional Federal or non-Federal gcnerathg units, provide serv(ee to 1969... 55,752,314 16,967,117 46,204,161 18,353,608 137,277,200 Bonncv!Uc's customers, provide interregional farilities, and mahtsin the electrical stsbU! ty and elcctrical 1970...
t re!iabTIty of thc Fcder J s)stem. Bonncvib'e mmnot beDn constructhg any major tramnfssfon f ciiitics 58,419,581 20,319,033 50,036,203 18,S7S,209 147,680,036 intended to bc uM t> provide sctviccs not previously provided by BonncviUc with is own f~tlcs 1971... 64,078,043 25,!20,610 45,4!S,745(2) 21,060,576 155,677,974 until such construction is spcclgcsUy approved by Act of Congres<<
1972... 69,452,035 37 918,589 45,733,067(2) 22,990.720 176,094,411 'Ibc Transmhsion Act dso resfErms BonveviUc's obligation to charge rates for e!eetric power and 1973... 74,669/46 37,146,777(3) 44,014,159(2) 21,543,674 177,374,156 transmiss!on of cleetric power wb!ch <<!U recover the "cost of producing avd transmitting such cleetric 1974... 83,034,000 31,51 S,OOO(3) 46,162,000(2) 21,343,000(4) 182,054,000(4) power.
In adtvtlon the Transnrission Aet'desiutates BonnevvT!e as thc msrketLvg agent for JI Corps of (t) From ReeamiGc Summary Phsacid Dso, 1374 dsts fran Pcderd Co'webb Rivet Peawr System ptcted h Decemtcr tpys.
s~ cern. En@'users a"d Bureau of Rcchmauon generating phns, excepting thc Green Springs Project in southern a~
OrcDsn. prior to ths designation BonneviUc <<-s dsignatcd marketing agent for these projects by (2) Tbo defame in tadmtrid rcvccum wss primsrily due to sb<<Moxa of dem'em po"'s h tbo am aA to e" ~. of thc Secrct.p cf the lnterior. 'Ibc formdiz tioa of this designation cnsurcs thc rcvcnucs Rom thc meat by L<<mcvP's of hterrupdbto po<<vr to ccrtdn of its fc 'uartd cmte-crs. sale of po<<ur from ~>> projects will accrue to the Ftmd to pay Bonuevt.'e's expenses, (3) 'Ibc dc Leo ia 04cr Etcetric Unyides'evenues <<<<s due to low power svsihbKty aed t<<vested uc~ of preference evutomets.
Additional Power Supply (4) SNNO.OOO of Trsesmi<<tcn Strvke sed O~ is eve In cddirion to the Federal h>vlroe!ectric projects, Bonne>!Ue has act!aired additional power supply Tbe major psn of the 500 kV and 230 kV backbone trsnsmisrion system in the Paclge Northwest and hydro smmge to ensb!e it to eonthuc to meet its customers'm!uiremcns. Uadcr agreemcns executed in ]963 by BonncviUe, 76 urility mstomers of BonncviUc ami the Supp!y S>stem, Bonnevkue h o<<vted by Bonnmk'Ic as a rmu!t of is ro!e in const~rag transmission fsriUUes as part of the Fedcml exchanges &a po<<'cr from is system for the output ot tbc Hauford Project of thc Svpply System. In Columbh Riv<<r Po<<cr System. BonneviUe trammels over thc Federal Cola-bia River Power System thc major ptutlon of thc po<<ur from I 1 nonfederal projects to various private and pubUc uuTiries in the 1964, Bonnet(Ue, acting joht!y <<ith the U. S. A~ Corps of Ecglneers as thc United States Entity, pursuant to thc Treaty Bcnveen the United States and Canada Rehtiug to the Cooperative Dcvdop-Pa&c Northwest. This s><<tern represents approx!mately 8098 of the bulL power ~'~ioneaparity for the P~c North<<ust. ment of bVater Resources of the Columbia River Basin, and pursuant to certain agrecrnents cxecutcd h connectioa vdth such Tres:y, obtained certain rights to 1$ ,500,000 amc-feet of hydro storage on thc Columbia River in Canada.
Thc Federal Columbh River Power S)vtem has interconnections <<4th other regions in the United States and Canada. Three high vo!tagc transmission line hterconnections (two 500 LV ac, onc SOO Under Phase I of thc H)pro Therma! Power Program, Bonne<<U!e willobtain throu+ thc Net BUling kV de) of thc PasrSe Nor;h<<vst-Pacigc Southwest Intertie have been completed and am now in operation.
Agrcemens the cap"biTity of the project upon its completion and through rimihr agrccmcuts thc Supply T<<vs $ 00 kV ad Uncs hterconnect tbe Federal Co!vmbia River Power System <<ddt Bridsh Columbia, S)xtem's sharc of the capsbihty of Nue!ear Project No. I and Nuchsr Project No. 3 and the City of Canada, and several 230 kV ac lines intereo"=cot thc emt m portion of the s)<<tern vrith uuTitfes in Eugene, Oregon's 30$$ sharc of the Trojan Nuriear Project.
adjacent Canadian provtnees and the hfov-"tsfn States. These Intereonnecrions pnyride, ia addirion to tuutusl support ia the event of a breskdo<<m or emergency, the means to carry capacity and energy which h surplus to thc Pac(Se horthwest ~ds to these ar:as, and conversely to mrry sutp!us cspschy and After )983 Bomcv!Ue does not expect to a~aire clmtrie power from ncw thermal projecs to mew energy from tssc areas hto thc Pacffh Ntuthwest. thc Iosd gro<<th of its pmferencc agency customers. Rather, mtder Phase II of thc H)vtro Thermal Power Prop~~, Bcnuev(Ue expo~ to aet as agent for many of its prcfcrencc customers ia +pairin Jte e!cctric Bonneville po<<vr and energy necessary from thermal projees to meet thcsc custom:rs'utmc locd gro<<th.
On October 19, 1974, thc President signed into I w the Federrl Cola-bia Transmisrion $ 3<<tern Aet (Pub. I No. 93-(54), which cstsbUshcd a ncw met& for Snanring Bon"evUIe's comtv ction and operating program. Under the Transmission Act Bonncvf lie is authorized to psl is cost of opcmting BonnevU!e Contracts
~ and maintahing thc Federal s>stern from is revenues and pay thc cot: of conssucrion of additional faciliYies from revenues and revenue bond proceeds. The Bonnet(Ue Power Adnuaistration Fvnd is nsrkcs power to 153 custom, including 109 statutory prefcreno: cus:om h tho established into <<hich ail ot BonncviUe's revenues (i<<!uding trust "nd fund reccips), props from revcr.ue bonds, avd appropriations arc deposit+4 Bonne<<Ulc is authorized to scU up to $ 1.25 bUUon of rcvenve bonds to the Secretary of the Treasury to &ance the txmstvzmlon of addidcm to u trm Pa E North<<ust (public bodies aad coopcrstivcs Fedora! Co!umbh Kiver po<<ur Systczu pursuant to the BonncvUh project Act, as amcadcdl ~
which have prcfercncc avd priority upoa power from 16 17
'I 1
F j'4
'I 4
the terms of vaqous power sales contra"ts. E "h of thc Participants is a preferene>> anmmcr and H Th: Phase I H)<o 'Ihetmal Power Program thamal generating plans arc tabulated below:
a party to at last one such pouur sales contract requiring pa)vuents to Bon"eiiUe for the purchase or Raeca PcoacNo exchange of pouur. the operation ar.d niUntenanec of faili:les, or thc transaUission of power over thc Pico Pctoctpil Cepoctcr Koecar Federal Columbia River Power System. Sv h contracts gener Jly provide for the saic ""d delivery of S oaoc Ioecuoa ~ts ~Dcec i) 5rm power to a preference customer in the amount of its requirements for power over and above the I Paede Power 8; Ught Co.
generating rcsourecs, if any, that the prcfcreneo cus:omar has available to serve its own loads. Bonne- and The 'lVasoJcyon lVatcr vUle's obligation to meet a prcferencc customet's requirenients B e5eeUve for the term of thc cortraet Power Company (CentraUa unless BonnciiUe gives the pref<<rcnec customer at least eighi years'prior notice of Insu!5cieney of suppl>;
Project) ............. ~ Cent:eUa, Wa. CoJ-5rcd 1,400 (2) 2 Ponland Ge" eral Eeetric Company (Trojan Projea) St. He!ens, Or. Nuclear 1,130 Dc- 1975 These pouur sales contracts <<! th prefere~ customers are usuaUy for term of 20 years. Bo" c-3 Pae!5c Power g Light Gx viUc expects to negoUicdc ncw 20 year power sales contra-ts vdth aU prefcren-e customers to supply (Jim Br!dyer ho. 2) .... Rock Spqny. Wy. 500 Junc 1976 their Iced grouth requirements imtil 1983 and fixed amounts thereafter. Thc PubLc Pouur Gxm il M Bridoger No. 3) .... Roc'k Sprinw, Wy. Coal-5red Coal-5'Jim 500 July 1977
~ Bonneville are eturcnt!y studying thc aUocation of pouur to these customers after Ju!y I, 1983. 4 \Vashmyen P bUc Power Supp!y S)stem (Nuaccar The power sales eontrwts contain proviions for a rate review once each 5vc years. Rates are Pro~,t ho. 2) ......... Hanford, lVa. hu!ca. 1,100 Oct. 1979 proposed by Bo~tiUe and become effective upon con5rmaUon and approval by th Fedora! Power 5 Portland Geneml ELctrfc Nuclear Company (Pcbb!c Spriuy ComnMion ("FPC"). In 1974 BonneviUe submitted proposed rate increases to the FPC avcrayng approximately 27~o which were confirmed and approved by the FPC cfective Dceember 20, 1974 for an ho. 1) ............... ArUnyon, Or. Nuc'ie- 1,260 July 1982 6 lVashinyon Public Power interim period dnding no later ihan December 20, 197S. Thc eon5rmation and approv J of such rates S"pp!y Sytem (Nuclear for thc full 5vc )var period ending December 20, 1979, is now pending before thc FPC, amf BonncriUc Prolect No. 1) ......... Hanfotd, lVa. 1,250 Oct. 1982 cxpccts that thc FPC will approve such rates for such period in thc near future. 7 lVashfnycn Public Power Supply Sys:em (huc4ar ooiao.3)......... Sl p,w. ocat I /40 SepL 1982
'IHE HYDRO TTIER)LLL POI)ER PROGRAM AND POWER SUPPLY o> 5 c i ~ co Rcco "v~R" (2) Currently fn oper tion at redo'apacity.
Df THE PACIFIC NORTHlVEST 'Ihc area uulicties have ident!5ed adcUUona! grerating projects refried to as Phase II projeas, so=a of uhieh are currently under development or fnvcsdgation to m cct forecasted load gros."
Thc H)~ Thermal Power Program was conceived by thc Joint Power Pl~8 Coon.3, consfsdng lVhilc the speei5c ro!c of BonueviUc has changed somewhat from Ph asc I of thc H)vfro ThermJ of 110 e!eetric cooperatives, pubUc utiTities and private ui'indies in the Paei5c Northwest and BonnctiUe, Power Proyam, the area u656es arc conunuing to plan aud buttd genuatio n and tramm!stion facUiUes in order to plan thc eoonUnatfon of existing and future thermal ard hydroelectric resources in thc Paci5 on a coopers& c schedu!c. Such thermal gcneraung pfsnts arc tabu!ated below:
Northuust. 'Ihc major part of thc power supply in the rey'on has been historieaUy from hyd:oclearic resources, but the remairdng hydro projects to bc developed wUl be essentiaUy for pecking power rather Phot Pctoctpct than for b4c load. Thamal power will provide an increasing porUon of thc base load resourem in thc No ~Smt Ioec eton Pa55c Pov,ur tk Light Co.
frture. The corn%nation of h) dro peaking and large sca!c thermal gencmting phmts uw found by thc 1 (Jim Bridget project No. 4) Rock Spriny, Wy. Coal-5red 333(2) Sept. 1979 Council to bc thc soundcst plan to aehicvc Lc ahns of the H)vtro Thermal Power preyed fhc ptin- Pordand General Electric ciples of Phase I of this Program and thc Fed~ government's pardeipaUon through Bon"cviUe, thc Army Corps of Engineers and thc Bureau of Ree!amaUon have bccn cndorsaf by eurirt mid previous 1) ............... "" eardmatL Or. CoJ-5red 500 Ju)y 19SO federal ~Uons andby the Conyess. Pugct Sound Power & IJght Comfy (Stay't ho. I) . Sedro WooUg, Wa. NueLar 1,288 Fcb. 1983 The me~hers of thc Joint Power PLtnning Cotmal have cone!uded that thc H)4o Tha& Power KVashino~on PuMic Pouur sill: Supply S)stem (hudear Proyam Pro;:et No. 4) ......... Hanford, Wa. Nu dear 1/50 AptU 1984
- 1. Best preserve th environment and natural he utica of thc P'aci5c h'o4wmt. lVaihinyon PubLc Pouur Supply S)stem (Nuclear
- 2. Mate efUeient and econondc usc of ~s FederJ Columbia River Power S)>tern.
Proc>cet No. S) ......... Satsop, Wq. Nuclear 1,240 hfer. 1984 Pug:t Soimd Power I; Light
- 3. Obta'in tR economies of scale from large therm J genemUng plans. Company (SLay't No. 2) .. Sedro WooUey, Wa. Nuclear 1,288 Fcb. 1985 Po<a:d Gcncral ELetric
- 4. hfeid thc omput from hrgc thermal greraRg phmts with that hom cxbung bye Comnany (Pebbh Sp."my
............... Nues:
gencradng units and the peat!ng genem"'on units wheh w~J be hstaUaf at <<sist:"8 achieve thc most economic and rZiabic power su7ply to racer thc power mq"wments of u~
PaaR hteethwcst.
d~, to o) o (2)
Na 2) Arbngton, Or.
discussions uncLr Power Reqckements and Ca pabU! ty of uiUt utile R~
for usc in West Gro: p.
1,260 July 1985 18 19
4 t~
In addition to the foregoing major projects In thc Paeific Northwest, The hfontana Power Com- TIK PARTTCIPANIS pany, Pugct Sound Povrer 8 Light Company, PacKe Power gr Light Company, Portland General LUccuic Company and 'Ihe Washington Water Power Company arc eomtrucdng a coal-fired steam electric Thc projem has 94 participants, of which 27 arc municipaHQes, 22 are disuicts and 45 arc co-generating phmt at Cobtrip, Mont~. A portion of the ou:pu:: of this project <<fH bc Lued outside of Lbe operatives. Thc mun YidipavYics have contracmd to purchase approximatciy 22.69) of the plant capxbTiity, Pad5 Nonhwcst coordinated system and tbe ~e assht meedag their needs within the Pacific NorthwcsL of the output vdH bc used by the. companies to thc disuicts have contracted to purchase approxiuately 56.9% and the cooperatives thc remaining 20$ ~o. Exhibit I attached hereto Es each partidpant and indicates its shx:e of thc project capabiliry parch asecL Power Requirements and Resources Long-range pianrdng of resources In the Paei5c Northwvst is baMd on anruxl forecasts of loads and Thc Participan~s, BU ot whom are statu'"ry prcfe:ence customers of Bonne@%, currently obtxia resources for thc area prepared by the Pacific Northwest Utililics Con!crcnce Comniiuce. Thc cast aU or part of their poser supply from BonucvUIc, and, nader their power sales contracts, will have aa recent forecast (February I, 1975) was made by thc Commiucc for thc )Tars 1975-1976 through csUmated nct billing capacity wheh in the aggregate B esumated to bc In excess of their share of the 1985-1986 (West Group Forecast). Unlike previous forecasts which were prcparcd using phnt estimated Projccps annual costs paid to thc Supply S)xtem. Each Participant's sharc of su;h annual costs schedules, this most recent farcist was prepared using thc -SSUcstone" cone pt for deier- w!11 be net biHcd or credited agahst the bUlings made by BoimeviHe to thc Partldpsnt oa a monthly basis, siansors'onstruction miniag the d tes on which new thermal generating plants could reasonably be exacted to b ht continuous under iis power sales contract(s).
operation. Thc -SIUestonc" concept establishes standard dcveiopmcnt schcduics for each t)pc o! thermal plant aad identifies, as mUcstoncs, certain major cvunts h the development and constructioa of the plants. Each of thc Participants has executed a Nct BZmg Agrecmcnt, as morc fuHy described below, Thcsc standard "SIHestonc" phnt dcvclopmcnt schedules arc applied to cch propos:d tbruma) plant for udth thc Supply System aud ~vLii.
pmpom of providing a corn!steat basis for plann'ng the addiYioa of therraal msou ces. Each plant sponsor vdH continue to maintain his own construction schedule, which may not be thc same as the By tbo Nct BillingApecments, each particlpmt assigns its share ot thc project's capability to Banc>>
SIUcstone schedule used for area rcsou:cc planning. ville, aad the entL~ ou:put of Hie projad <<fH be added to a "d pooled with the other power sou~ avxH-An an J)xfs of thc most recent forecast, dated February I, 197$, ot the area's loads and resources aMC to Bo""cvUh is shovxt In the foHowing table:
smce the Paludpxnts'ayments to thc supply system uUI bc net bUldL the cost of the power pm-Loads aad Rcsourecs(l) duced by thc project wUI be borne by Boaaevile customers. Bonneville has assured Congress that "day Northwest Power Pool West Croup(2) costs or losses to Bonneville under these agreements wUI bc borne by ail BonneviL'c rate pxycrs through Yrar Esdvsstvd Pvrrcut Pcrcvat rate adju~~~ U necessary."
Eodtrvs Esuwskd Rvvovvcvs Sctstcs 54mlci Tbv 3cce 30 R~d v t ~II PEAK CAPAB)L)TY K)LowATTS (000) 1976 22 491 22.4S7 (4) (0.02)
(4) (0.02) THE NET BILLEVC ACREESIENIE 1977 23,722 23,720 (2) (0.01) (2) (0.01)
~
1978 25,220 26.09S S78 3AS 87S 3AS o! ccrtaht provisions of thc Nct BZng Agrcemcnts foHows. The fuH text cf tbe form of 19'79 26,683 2S.107 1,424 5.34 1,424 5.34
- greemcats inay be obta:"cd from thc Supply S)xtcnL 1980 28,139 28,983 844 3.00 1,100 1,944 6.91 1981 29,515 29,366 (149) (0.50) 1,100 951 3.22 1982 30 950 29,56S (1,3S2) (4.47) 1,100 (2S2) (0.91) Thc capimttation o! any wtud or won4 witch is not conventionally capitxHmd (c.g. Pro-'ect 1983 32.418 33,070 652 2.01 1,100 1,752 $ .40 Participants) ind! tes that such words are dcfincd In the Nct BiUing Agreements. (The same pracUce 19S4 33,907 34,011 104 0.31 1,100 1,204 335 Is Mowed in thc sununaries of thc project Agreemcni and the Resolution w~dch foHow.)
1985 35,4S3 36,172 6S9 1.94 . I ~ 100 1,7S9 5.04 1986 37.154 3S.3S9 1,235 3.32 1,100 2,335 6.2S Term Etrxaov CAPAML)TY AYBBACE K)LovvATTs (000)(6) 1976 ............... 14.625 13,S46 (779) (5.33)
(779) (533) Each Nct BLrfing Agreement became cHcctivc upon <<xecaLoa and delivery and will teruunate on the 1977 ............... 15,418 14,630 (78$ ) (5.11)
(7$ $ ) (5.11) date that the project Agreement tertminatcs exccp: as protfded in Section 10(c) (sce thc sub@apt!on 197$ ............... 16.396 14.977 (1.419) (8.65)
(1.419) ($ .65) "Ter~Eon") and as to accrued obHgxtions ad HabLutles 1979 ............... 17,370 15,136 (2,234) (12.S6) (2,234) (12.86) 19$ 0 ............... 1$ ,196 15,624 (2472) (14.13) 497 (2.07$ ) . ( I I AO) Apxough th: Nct BiHing Agreemea'ts mxy be ter=h:ated pfior to thc matey of any project Bomls, 19S I ............... 19.002 16284 (2.718) (14.30) 7S4 (1,934) (10.18) tbe obHgauon o! each of i". P-"cdixmts thereunder to pay its proportionate sharc of de s:rricc oa any 1982 ............... 19.$ 79 16,59$ (3,2$ 1) (16.50) 825 (2,456) (I" 35) 19S3 ............... 20,72S 19,005 (1,723) (S.31) 825 (S9S) (4.33) project Bonds shaH cont'"uc tmtU the projem Bonds have been rctircd, and Bo""cviL'e will condnue 1984 ............... 21,623 20,718 (905) (4.19) S25 (SO) (0.37) to be obhgatcd to oHsct or credit these payments against payments pumant to thc Pxmci~t'5 BoancviHe 1985 ............... 22,5SI 22.401 (180) (O.SO) S25 64$ 2.$ 6 Conuac4.
!9S6 ............... 23,$ 59 23,911 352 1.49 S25 1,177 5.00
~r Op~ca
~
l) Resources forvexvt pxcific Nortbwclt Uuyuvs Ccvdcrcc c Coucriirce Guldvbccs. Ownership and
- 3) Arcs served by uu)Yy iacmbers of rbc loiat power p~cics council.
- 3) Alice dcdadicx icvcrvys ascii pxdae Ã<nh>>est Utiuucs Ccafwcxcc Cocunhtor GdMhcs. Thc Supply Sys~ will usc its best cHorts to arrange for the finxn&g, design, constmctioa, Not iectudcs tbv ProBcL 5 Pxrcctbcsvs dvrotc nvcsrbc va4cs. opcmtion'D m4" ~ce of th ProwcL 6 ~deader padS. Northwest UuL'des Ccavvi~ GuucIIu 20 21.
If Bosnevfie is unaMc to net Ml thc amounts to bc paid to the Supply Slstem because the dofsr ohfyfons duc DonncviHc &om a Parricipant are or arc exp@col to bc hsuKaent to ofsct Donnevifc's Thc Supply S>stem s<<Hs, and <<aeh Partieipan! purchases, its Part Yipungs Share of thc Proiect defer obUgadiors to such Participant, Bonn<<vlf<< <<iU usc i!s besc efow to arrange tor a voh.nary Capabfity and each Pai Jripant h curn assigns its PaiciYipant's Sharc ot such Capabihty to BonrciiiJe. assiymat of aU or a poruos ot ihe Partiripant's Sharc to thc extent reciutred to eliminate thc Tb~ amount of each Pat Jcipan s Shat<<of Project CapaMity is shown h Exhbtt I auached hereto. htufiriency, ~ t5e Participant sMI make any such assiymcnt so atraneM. Thc other Paifieipants
<<iJ have thc 5 is! right to aaept such assiym<<nt, pro rais among ihosc exerrising sech right, b<<fore The purchase price to be paid by each PsrZipant h e ch Contact Year <<iU be t5<< "-oust such an asfiy=est is mad m a customer who is not onc of thc Participants. If BonncvU!c is unable sperigal Ia thc BiHing Statemem rend:el to thc Pattfripant by thc Supply System. Thc amount of to arrange for such an msiyment, the Participant will make sash asfiyment to thc o Jier Pa!ticipants, thc BiUing Statemen! is de:ermiccd by meltiplling thc Aursal Budyt or any amended Annual Bud!et who a:c obhgsted to accep! it, pro ra:a, proiidcd that the sum ot such assignmcs!s to a Partiripant by the Partiripant's Share. The Annual Budge! shril provide for CU ot tix-. Supply SIxtem's costs <<ith sMI not, <<i!hist Its consent, cxcced either 2P~ of the ParuYip<<<<t's Sharc ot Project C pabiTiry or Its respect to thc Proje in the Con!ran Year, inchding debt sctsicc. Thc Partiripan! is obfyA to csfi-a:ed net b Jhcg capability.
pay thc Supply Sp'm whether or not th Projec: is completed, operable, or operating snd notuithstandhg i".c suspension, htermption, in!<<rfcrence, rcduefon or curtailmnt of thc Project out'put, and smJc If aU or a portion of tbc Pan%pant's Sharc is assigned as described above, the Pardripast viill paymerts ac not subject to reduction and are not conditioned upon thc p"fiocmana or nonperto. ance mme liable to pay the purchase price for its Parttripant's Shac h accordance <<ith its Nct Billing by the Supply System or Bonn<<life or any other Partiripan! !mdcr thc Net Bifisg Agee~uts or a"y Age<<ment as if such asiiyment had not been made. Su<<5 li bifty of thc PmYipant will bc disc< rgcd o Jar age<<ment or only ta thc extent that ihe assiyec of aU or a portion of the Par eipant's Sharc pays to the Supply System ie hsutien'he the purchase price for Pattieipasps Sharc so ssfiyecL Participant assiys smI Bonn<<life accepts thc sssiy=.ent of thc PartYiipanc's S5are h con-Ifassiy=eats cannot bc made in amotmts scf cien! to bring hto Mane<< thc respective doiJar oMy-sidaation of su<<5 sssiymat, BcmnevZ<< sill ofset or credit thc amoun!s pakl by thc Pamcipant to the Supply Sysiem ender thc Nct BQling Agreement agaiss! amounts ouud Bonn<<i!He for po<<er p-rchascd tion of BonreiQI>> and thc Par!Lripant nnd cn accumu'lated Ma<<ce h fsmr of tbc Pardcipant from a and certain servias rendaed under chc Participant's BonnesiUC Contracts. Tbis slstem of ofs<<ts and previous Cost!aet Year is exp:cted by Bonneiife to be carfied for as additional Contract Year, such credits is termed'"net Mlisg". Net biUisg <<iQ begh os January I, f977, or thc Date ot Commercial Ma"cc snd any s bsetlucnt monthly nct Manccs that cannot bc net bJIed will be paid in cM to thc Operation, whichever is earlier, or at some eafiicr d<<tc if th Projec. is tempted puissant to Agree cnt, as herei"after dacnled.
u Project Par icipant by Bonsai!!e. subject co the aviilaMity of fed rd appropriatitos for such purpose.
Boc"eiiUc has indicated to ih. Supply S>stem and thc Patfiripants that it will pay in <<aih from Bon"cviQc is obUyced to make the ofsets and credits spewed h t"- Net Billing Agreements amounts <<spec:ed to bc aviilable in tke BonncviUC Pouur Admhistraiios Furd asy costs billed thc Pardcipa" ts whic5 arc no! paid through nct bflhg credit (See section entitled "Sccufity for the Bonds.")
~nt whetha or not the Pro;cct is completed, operable, or operating md notuithstandhg thc mp nsios, Imermption, hie!ter<<ms'> sedation or ot thc Pmjea outFCL Such ofscts amI credits a c noc subject to reduction and are not conditioned upon tbc patormaee or nosperfo!mane<< by tho If BonncliQ<< is unable to satisfy its oMiyths to as sf<<et'ardcipant by nc! bQIing, assigunest or cash payment snd dacrmines that this wfl eonfisuc for a signifcast period, the afated Pa!ticifust may Supply Sys!cm or BonnmiUc or any tuba PartYiipant imder thc Na BUling Agecments or any omr direct that aU or a pordon ot the energy associated with its Participant's Share be dehvcrcd by thc Supply age<<ment or hsuu cn'L Sp:em for thc Pa<<UYipant's account at a sperifcd point of delivay, either for the expected period of such Lsab Jity or the remainder of thc tenn o! the Ne! Bifisg Agreement, whlchevcr is sperif ed by thc Psg en! Paitiripant when it <<iects to have such energy delivered to IL The mnount ot energy d<<Uvetcd will be lim:!ed to the amoun! of thc Part Yipanps Sharc for v hich payment by Boc"eiiHc cannot b made. Thc v Each Pa!tiYipant is oMgated to pay M Supply System os a monthly basis its PartiYipant's Sharc PamYipangs obligation to assign its Participant's Share to Bosncvil'e and Bonnecif c's oh Jgation to make of thc Supply S>stem's annual exp<<usa i"<<urred h connection with thc operation ot the Pmjmc. pslxnents to che Participant <<iU thea be appmpfiately modif OL Each month's paymencs <<Jl be based on che amount of ne! bifing credit raeived by the Parficipa<<!
during thc preccdisg, ~oath on its Bonn<<vlf<< Mliuy. If thc credits recrived fmm BonneviL'c a:c less t5an the Pai Jripunt's Sharc of expenses for a Contraa Yar, the Par dcipant is nevesh<<I<<ss obhga:ed to pay such Sharc.
Ifthe Project is ended pursuant to Seuon 15 ot the Project Age<<ment, as des<<riled below, Supply
~:em wfl gvc nofcc of tcrmhafos ol each Nct Bivsg Agecment efectivc vpon the date of termina-Bonn iilh has entered in:o ret bHIing ageements <<ith OU of thc Pwcipants in connection <<i!h tics of iuc Pmjem Agccment. Supply Sys:em shaU thea ter Jn tc aU activities relating to constmctios
&e Supply System's Nu lear Projmts Nos. I md 3 and thc Trojan Project. Pursmnt to thc Nct BiQhg and operation of the projecc a"d shaU tmdatskc !5e salvage snd dispositios or vJC of lh pro,'ect as Agmeuwnts, BosrcliHe vriU ofset thc agents it ouvs under thc N<<t Bifing Agreement and aD other provided h the Pro!at Agreement. After meh!aminaJos, the Supply Six!em wQI make mostldy n<<t billing age<<men!s <<hieh it inay have in <<feet uiih each Participant ayinit the sum of thc a~uncs accousung statements to Bon"evifc and each Participan! o! aQ costs aseistcd <<ith such te!mhatios.
that such Participant may ouu BonneviUc for po<<ur and ccrain services, is the proportion tha!!5<< Thc monthly a<<musing statements will crAi: against surit cos<<z aU a=oun!s reecivcd by csc Supply amount spxLid in thc current Billing Siatemert bars to the sum o. the amous!s to b paid by Donne System from the disposifos ot Pmject asses. Such monthly aceous!hg statcmer!s will con!hue untU vQI<< under aU su-5 a~~mats for t5at Cent!aa Yrw. Ea:h Net BiHL<<g Ageem:c! proiidcs!hat aU Projee! Donds arc paid or hsds a:c set aside for such payment. It thc monthly accounting scat<<ments Bo=>>cviHe aiul the parycipant shaB not enter hm asy age<<mum providing for p ymcnts to thc sssw i".a! such ccsts <<xceed sv. 5 credits, thc p eficipmt will psy Iu portion of such excess costs to thc parfieip=-c by Bormcvilh <<heh Bone<<life es~es vfiU ause the aggeg tc ot Bon"'vZC's biUhy Supply Sys!c . ThcpaIvncnts wLiI bc made at times and h <<merits suKcient to discharge os a current to the Participant to be less than 115 percen! of the Bonne!ifc nct bfling obfyficms to thc Pa!ticipant bafis thc p.<<dripmt's Sharc ot ise amoum whhh the Supply System Is retiuD<<d to pay hto thc varhus usda aQ agecm-ts pmviding for nct bi'Jing. pcovÃA h!'.c Project Bond Resolution for debt service smf aU ois.a purposes.
n' Event ot Dchaiz The Participands Sharc of die Project CapabBity pvMaM by the Parddpaat from thc Supply Syitea Thc Agrceaent bec>>ac cfccdivc upon is execu doa and dclivay and will tera~to when the Project and assigned to Bonneidllc will bc autoaatically increased for thc reaairiag tera of J:c Nct BiUing Is term!ax:cd as provided ia Secdoa IS of thc Agreement pro rata with that of other nondefauidng Partiripants J, and to thc extent tha:, one or Agzecacn'ecdon more of ihe Participants is unab!e, fafs, or refuses for any reason to perform its obligations under its IS provides that thc Project shaU terminate aud thc Supply System shaU cause thc Project Nct BiU!ag Agreement; provided however, that the sum of such increases for each PatdeipanL u(thout to be salvaged, discondnued, dccommissioned and disposed of or so!d ia who!c or in part to thc highest is consent,-aay not exceed aa aceumvlatcd aaxiaua of 25~so of is Participant's Share nor shall bidder or bidders, or disposed of in such other armer as thc parties may agree when:
any such increase came thc estiaatc of thc pa)mens to be made by thc ParJcipant to thc Supply System to excccd the csdimatc of Bonncvifc's bUlmgs to thc Pare!pant for power and eettain services (a) Supply S)stem determines it is unab!c to construct, operate, or proceed as owner of thc during thc period of such increase. Project dcc to licensing, fnancing, or opcradng condiYior4 or other eauscs which arc beyond is consoL Particlpant's Rate Coi enant and Sources of Pa)mens (b) The parties drterminc thc project is not capab!e of producLag energy consis~t with No PartiYdipant will bc required to make payments to thc Supply System u>>der is Net BJli"g Prudent UtilityPractice or, if thc parries disagrcc, thc Project Consulsnt so Crtermines, or Agrecmcnt except from revenues Ccrivcd from thc ownership and opczation of is electric utiTity propetdcs (c) Bonucidfc directs thc end of Project pusuant to thc proviYions of Seedon 11(a), which and tron payacnis by BonncvLi!c unCer such Ayeement. proidde that if thc cstiaatcd cost of a rep!awment or repair or capital addition rcquircd by a gov-Tbc Participant coven""ts t5at it viiH esablish. maintaht and cofect rates or charges for power and emaental agency exceeds 20 percent of the then deprcc!at<<I vaiv of ie proj<<t, BonncvZc aay direct that thc Supply System emf thc PzojccL energy and other seri(res, facilities and coaaodidcs so!d, furrJshed or suppUed by it thrtvagh any of is elec'tric vdfty propcides which shaU bc adequate to proridc revenues su~w!ent to enable thc patio!pant to aakc thc payaen:s to Supply System puzsuant to is Net BBrng Agreement and to pay Jl cuber charges Des+, Llecmlag and Constzucdon of the Project and obfgations payable from or consditudiag a charge and iiLm upon such zevcnues.
Tbe Supply S!atem will among ot5er thhtgs (I) perform its dutia and exercise is rig5s ia accordance whh prudent Utvity practice; (ii) tse its bat cforts to obtda aU fumes, perais and other htodigeadon of Agreement sighs and rema!atory approva!s ne<<ssary for the owneship, eonstzuedon, and operadion of thc Projert;
¹I Thc thc payaeut of thc principal, Interest and premium, if any, oa thc ~
BLUng Agreements shall not bc amerded, mod!fed or othczwisc changed by agreement of thc parties in any manner that uV'inpair or adversely sfect thc se>>arity afforded by is provbhns for to schcdulc thc Date of Comaerc!al Operation as Bonnewl!c uff usc
~
(Bi) cemssuct dm project in accordance w!th prudent Udlity practice; and (iv) wc L's best cforts as possib!c to S~'er I, 1977.
its best cforts to construct, operate and maiataht thc nccasazy fw'ties to intertonne>>ct t5e Project vdth the Government's trmsa!sion grid so as to bc ready to receive tho Projcrt's gcmadon on or before thc In!dc! tat and operation ot the Proje<<.
Tbc ~~his dcsaibed be!ow arc an integal part of thc Nct BBling Agreeaens.
Exhibit A A list of thc Participants and their respective Pare!pant's Shares.
In thc Project Agreeaer t "Prudent UtB!ty Pracdicc" at a partictdsz time means any of thc methods and acs engaged Ia or approved by a signficant proportion of the elecuic J uddty indusuy pr~
Exhibit B Dcserip Jon of the Project. ptior to such diae, or any of the pracdces, methods, and acts which, ia the ex risc of zeasonab!c judg-Exhibi<C tnent in liJa of thc facts known at thc dmc thc d<<ds!on was aadc, exld have bccn cxpccted to a<<oa-Contracaal proviYions rcruired by Satutc or Exccudv Order and reiadng to plish thc desired rcsvh at thc lowest reasonable cost consistent wi3 reliabfi:y, safety and expcdidon. !n Contract IVozk hours and sJcty standards, convict labor, equJ opportunity cmpioymeut and thc evaluating whether any act or pmposal conforms to Pmdent Udlity Practice, Boancvifc, thc Sapply Interest of a member of Congress. Under thc provisions of Executive Order 11246 of September 24, Sptem and any project Consultant shall take !nto account thc objective to Intcgi tc the cadre pro<<
1965 and thc Rules and Regulations and rclcvant Orders of the Secretary of Labor thereunder, thc Ca!xtbfity with thc hydroe!ectric resources of thc Fcdcral ColumMa River Power System and to achieve Supply System has b en granted a litnited cxempdon from thc canceUation, termination, and optLawn utJization of thc resources of that system taken as a who', and to ackievc cadent and swpensIon provisions,in thc evert of non~mpliancc with the Equal Oppottunity C!ause contahted economical opemtioa of that system.
In thc Net Billing Agreemeas, by the Director, 0!Bcc of Federal Contr ct Compliance, U. S.
Deportacnt of Labor.
Financing TTIE PROJEC1'GREES~T Thc Supp!y System wBI usc is best cfforts to issue and sell project Bonds to !mana ie cost of thc Prcje: and thc coapicdoa thereof, as such cuss arc Ccfned ia the Projec: Bond Resoludon, and to Tbc Supply System and Bo~ev!Lc have entered into thc Project A~acnL That Agree ent, the cost o! aay capitJ add!Cons, rca=uMs, repairs, rcpiimens or medic dens to thc Project; auto@ odicr thhigs, provides standards for thc desi~, liccndng, fnanring, eonsttucdoa, fueli"g, opem Joa pmv~, however, that s. ch Projsx Bonds may then bc IegaUy issued and sold.
and main:enance ot thc Projmt. aad for t-"o aakfa of any zepiiaccmens, repairs or capital adCJdons thereto. A summary of soac of thc prov!duns of thc Protect Ag:cement foUoav. A copy of thc Project Agreement aay be obtained from thc Supply +<ca.
A!I pro;<<t Bond Res@'udons arc sub j<<t to appzov J by BzmnariL'e, et EecCc has appmvcd thc Reso!udon and th>> Supernal Reso!udca.
Budgets with the item as proposed by it, and the item is determined by thc Project Consultant to be Inconshtent with Prudent UtHity Practice, Supply System shaH bear a"y nct heretic ia thc cost o! comtruuHon or Construction Budgets and Au"ual Budgets wiH bc prepared an;usHy. 'Ihe Construcrioa Budgets operarion of thc Projen resu!ring from such item without chary to thc Project to thc exmat such iten and the Annual Budgets ar.d any revision therco! arc to be submitted to BonnevuHc Q are subjc ~ to its is found by thc Project Consultant to bo hcoashtert viith Prudent Utility Practice.
app~ovaL In thc absence of any ob;ecrioa by Bo""cvH!e a budge'. <<Hl become eHccritvc vrithin 30 days, in the case o! the Construcrion aad Annual Budgets, and wiririn 7 days in thc case o! any revision rhrcoL Exhibhs A ruo" thly Conssucrion Budget report shaH bc prepared by thc Supply S>a:cm and 6!cd <<dfh Bounc-viHe sho<<4ng by major p!ant accounts or conLmts, thc cunuiarivc ~ants connitmd and expended to 'Ihc Exhibits dcseribcd below arc aa fntegr J pnt of thc Project Agreement.
the date o! each su h report.
ExhiMt A Lncriprion of the Project.
Costs incurred by the Supp!y System in an cnergcney or to protect thc safety o! thc Project or thc Ertubit B-Coatrarxuai provisions reunited by Ststate or Exccutivc O<er. Under Qtc pro-public shall be added to the Annual Budget as Inca~ virions o! Exccuritve Ord:r 11246 of September 24, 1965 and the Rules and Rcgu! stions and relevant
. AH saxon'.s shaHbe kept sons to permit conversion to th system of amounts prescribed for e!cwc Orders ot the Rcretaty o! Labor thercaade:, thc Supp!y System has been granted a Mited cxenp-utiHties by thc Fcde:al Power Connisrioa. uo" Lon the canc!Lsrion, term!" tion, a"d suspnsion provirions in thc eiuat o! nonconpHauce
<<5th thc E4<<J Opportunity Cia sc contahed in said Agrccncnt by thc Director, Once o! Fcdcnl Operatloa and frfaintenaucc Contract ConpHaccc, U.S. Depart of Labor.
Thc Supply SJaten wiH operate and maintah the Project in accordance with Prudent Uppity Prao.
tice and thc requirements o! govenmeut agencies having jurisdLrion.
DESCRIPTION OF 1975 A BONDS AhD CKRTAN PROVISIO7iS OF TIIE RKSOLUTIO.'f AND SUPPLK3KNTAL RKSOLUIION Bonds for Repheemcnts, Repairs and Capkal Additions
!I h any Contract Year the amounts in thc Aurual Budget for rene<<Js, reps'nd rephm eats The foHowing sununary Is a btief outline of certain provis!ons contained in thc Resolution and the and for capital additions and bettcrnents necessary to achieve design capab!Hty or required by Supp!cmental Resolution and is not to bc considered as a fuH statement thereof. This summary is tiusl!6ed governmental agencies ("Amounts for Extraordinary Costs" ), whether or not such mounts are costs by reference to and is subject to thc Rcsolutioa a"d the Supplemental Resolution, copies of <<hich msy of operation or costs of consuucrion, exceed thc mount of reserves, i! any, ma!atained for such bc examined at the principal oiHces of thc Supply System, thc Boad Fund Trustee and thc Payiug Agents purpose pursuant to the Project Bond Reso!utica plus thc proceeds of insurance, if any, avaHab!c by for U~ !975 A Bonds.
reason of Itns or damage to the Project, by the Inter of:
(I) $ 3,000,000 or Tho Bonds aad the 1975 A Bonds Thc Resolutloa creates anI es:abHshes an issue o! Bonds of the Supply System which may be (2) an aamunt by which thc amount of BonneviHc's csumatc of Qm total o! thc net billing ercdits avaHab!e in such Coatract Year to thc Parricipants and the amounts of such reserves and issued frtxvt rinc to time to pay the ht of Conaruction of thc Project and to establish reserves as thcrcht Insurance pro wcds, H any, cxcecds ~ Anaml Budget for such Contran Year exclurive of Amounts proridcd. Thc 1975 A Bonds arc pat of such issue.
for Extnordinaty Costs, 'Ihc 197S A Bonds <<ill be dated March.1, 1975; principsl and sen!-annual Interest (January I a% July I) on coupon 197$ A Bonds aad prhxdpal oa registered 1975 A Btnds wHl bc payablc at the Supply System <<1H, ia good faith, usc its best efforts to issue and sell Projen Bonds to psy such cxccss. option of thc ho!der rd Sc tt!c.past )lational Bank, Scaulc, 'tVashington, Conrinental Blinois Jfarional Bank and Trust Company of Chica@>, Chicago, IH:"ois, anl Thc Bank of New York,?(cw York, hew BouaeviHe's Approval aad Pro~ Contain" 1 York. Payment o! Interest on fully rcystered btnds will be mad- by Conrincnt J Bliuois National Bank and Trust Conpau> of Chicago, Chi:a~m, 11Hnoh, which has been appointed the Bond Fund Trustee.
I! any proposal or item subject to approvaI by BonneviHc is dhapproved by BonrcviHc and an Thc deHniYin 1975 A Bonds will bc issued in coupon foun Lu the denonuastion of $ 5,000, registr ble alternative proposal or iten is suggcs'.al by BonneriHe, Supply Sptcm <<Ml either adopt such suggesrioa as to principal only, and in fully registered fo:m in thc denomination of $ 5,000 or any muluplc thereoL or, <<(thin seven days after receipt o! such disapproval. appoint a Pro,:ect Coasuhant acc:ptab!e to Coupon 197$ A Bonds and fuHy registered 1975 A Boads are iatcrchaugcab! c.
BonnevH!c to review thc proposal or iten. Proposals or i:ems found by thc Project Consv! taut to bc consis:cnt <<4th Prudent Urility Pr nice shaH become immediately c8cctive. Proposals or items found Thc 1975 A Bonds <<% nanm in the yean aud amounts and bear interest at the rates pcr anrun by thc project Consultant to be inconshtcat <<1th prudent UtHi:y practice shaH bc modi6cd to cordorn shown on thc cover page hercoL Thc 197S A Boers n turing on July I, 1999 and July I, 2012 viitl have to Lhe recomnendauon'f the Project Consu!tan'. o: as the parries othnwse agm and st eHecrivc as and when modiHcd. If any proposJ or iten refcrrcd to thc projcn Consultant has not been become thc beneHt o! a Bond Retimncnt Account to operate at the times and h thc amounts sct forth bJow.
(Rcs. Secs, 4.5 4.7'upp. kes.'cc. 2).
resolved aad will affect the continuous operation of thc Project, Supply Sys:en shaH conrinue to opento the project and racy proceed <<6th the iten as proposed by Supply System, or as proposed by BonncvU'e, Rrdrmprionr 'Ihe 1975 A Bonds wiH bc subject to rcdcmpritoa prior to maturity at the optioa of or as nodiScd by mutual agreement o! Supply System and BoawU'c. If thc Supply S)ann thc Supply S)iten on and ~Jtcr July I, 19SS, oa at least 30 days'ublished notice, ia who!c at any tine, pm'6 27
or ia pxrt on any iatcrest px>m:nt da:c in inverse order of their mxturities and by lot within a maturity, Tbc inhag fu "d instx!!meats for thc 1975 A Bus duc July I, 1999 and duc July I, 2012 may bc at thc respective rcdemptioa prices (expressed as pereeatages ot thc priacipal amount) set forth below, appficd to the reden:ptioa of such Bends oa July I of exch of thc above ymrs or oa th= immcdhtely together with accrued interest to ~ ds:c fixed for redcmprioa: precedhg Jaa~p!.
Feetoa Dvetna 'athlete ReChkeoect Rceecvpuoa (Supp. Res. Scc. 2).
(aoue Deice loetvctec) Meek Jvfy I, 19SS to June 30, 1990 . 103~to Subsequent Serics of Bonds July I, 1990 to Juae 30, 1995 . .. '102 Thc Supply System covenants to issue adehitfonal series of Bonds to thc cxte" t required to pxy the July I, 1995 to June 30, 2000 . 101 Cost ot Coarrucfiioa of the Project aad to estabfish the rcscrvcs required by the Reso!ufion to thc extent July I, 2000 and themafter 100 such reserves atc not funded from other sources. Such Bonds may be issued upoa comp!ianee v(tb the fol!owing prineipaI conditions:
'Ihe Supply S>>>tern further reserves th right to redeem prior to ma'.urity, oa at least 30 ds>>>'ublished (I) There shall have bcca delivered to thc Srpply 8>>>:em a certificatc of the Bemd Fuad notice, (a) the 1975 A Boads taaturing on July I, 1999 and on July I, 2012, in port on any Interest Trmiec that rAe default exists h tie px>ment of priaeipsI and interest oa any o tstanding Bond, mid pa>ment date on and after January I, 1995 and on and aher January I, 2000. respectively, upon there hss Inca iLlivered to the Boml Furl Tr s:ec a ecrfifieatc of the Secretary of the Box:d of paymeat of the prheipxI amouat thereof fmm rinhag fuad hsmLements as dcscrbcd behw ard (b) D'ctors of tice Supply S>>>tem that the het Billiag Agrcemcats aad Project Agreement arc ln fuII th: 1975 A Boads maturiag oa July I, 2012 in part oa aay i>>tercst pa>ment dhtc oa and ahcr July I, 1983 farce a"d efiect and have not brea amend>>I h aay maser adverse!y a!1cctiag the Supply System and upoa payment of 1019vo8of thc prineipal amon"t thereof, from excess comtruerioa fund proceeds, ia thc hex'derx o'hc Bonds each case together vdth accrued iaierest to the date fixed for redempfion.
(2) Such Bonds shall be either serial or term bonds or a comb~fion thereof, with thc final
'Ihe Supply S>>>tern aho reserves thc right to redeem the 1975 A Bonds at aay t: c prior to msmrity, maturity date to be July 1,2012.
on at !cast 30 days'ublished notice, in whole at aay time, or L>> part in inverse order of their maturities aad by lot wit%in a niaturity, on any in'!crest pays:nt date, from promds received from the saic or (3) Tl:c Construction Engineer shall certify es to thc amount expended for, M the amount remaining avxihb!e to pay, Cost of Constr ction aad thc times funds will bc rcquircd to pay such disposition of property or h thc cvcnt the Project is terminated as provcJed in thc Project Agreement, Cost, aad, if thc crtLmxtcd Cort of Coasttuction hxs htercxsed, give a statement of thc rcasoas for upon pa>>>neat of thc prineipal amount thereof together <<fth acemA interest to thc d tc fixed tor such Inmate. (Res. Rc. 3.4).
rcdempfioa. (Res.Sec.5.3;Supp.Res.Sc" 3).
Addificnal Indcbtcdcess Other than Bonds Sfnling Fiend Jnrrdlmrrasr The 1975 A Boads duc July I, 1999 are to be retired by mabtoty Thc Supp!y S>>>tern may aho Issue addition bonds ranhag on a durity with thc Boads and xiJeL>>g fumI hstxl!ments aceumu!ated ia the Bond Redremcnt Account La th Bemd Fund ia amcemts secured by an equal charge and lien on thc revenues of the Project ("addition boads") for thc rZeient m rcdcem oa Jidy I of each year, at ie prinefpJ a ouat thereof, the pt <<cipJ a-o"-t of suJt folio<<>>ng purposes:
Bomfs spcBet for each of thc years shown be!owe (I) to comply <<(th aa order of aay goiur~catxl agency <<ith authority to Issue, m Jc or Xeeovet enforce an order or derision requL>>ag thc iastJhtioa of addifioaal cities or modifications at or tn the 1995 82,595,000 Prelect'2) 1996 2,775,000 to comply v(th requiremeats of thc Project Agreement for thc Issuance of additioaal 1997 2,970,000 bonds (sec "Bonds for Rephcea:eats, Repairs and Capital AddiYions" under "Project Agrcc 1998 3,205,000 menf above)i 1999 3,455,000 (3) to refund at aay time any Bonds or adehifionsI bonds.
Thc 1975 A Bonds duc July I, 2012 arc to bc rcrired by mandatory sinhhg fund Installments ao. The Supply S>>>tern may not issue any additional bonds unless prior to or shnultaneousiy with cumulated ia thc Boad Rett cmcnt Acoouat ia the Bemd Ftmd m maounts sufiicient to rcdecm oa July I the issuance of such bonds the Supply S>>>tcm has h effect valid wriiten contracts for the sale ot of each >var, at thc p>>neip J amour t thereof, thc principal amouat of such Boads speeiccd for earit of the capxbihi:y, po<<vr and energy of thc Projem <<hich, ia thc opinion of the Supply S>>>tern and o! thc yearn ~cwn Consuhing Engineer to th Supply S>>>tern, <<iII pwduec res>>nues at least sufiicient to cnxb!c thc be!ow'cu Supply S>>>tern to meet J! of its obHgarions under t"e Resolution. Such contmcts (I) mmt bc for terms Aieevett Ycce extending at L st to the finxl maturity date of thc Boads, (2) un!css such contracts are with thc 2000 ....... 83,635,000 2007 ....... 86,245,000 p" >>les to the Net Bfilhig Agreements, must bc <<'.th purchasers which, L>> thc opirdon of tI~ Consulting 2001 ....... 4,005,000 2008 ...i... 6,690,000 Engineer, have the ability aad fiaancial respoasiYitity to meet their obligaiions under such eontmets, 2002 ....... 4,320,000 2009 ....... 7 210,000 and (3) roust coat ia terms with respect to payments for project cxpxbL'ity, power a"d energy and thc h thc pric for such project capability, power and energy 2003 ....... 4,570,0GO 2010 ....... 7,805,GOO items of annual power costs to bc included 4,975,MO 2011 ....... 8.390,0GO which arc not less favomble to thc Supply System than thc terms of thc Net BilLiag Agreements.
2005 ....... 5,340,000 2012 ....... 9,060,000 AafioaJ bonds may bc either scrixl cr term bonds or a combination thereof, with thc finxI 2006 ....... 5,755,0GO mxt riO date to be July I, 2012, or If thc servtm lite of thc f~Yies being fiaxnecd cxtccA beyond 28
a later date which is not Inter than thc expmrioa of such service Ufe. A separate bmd >done>a rem&lug ia 8e Construction Fund after payment of aU Cost of Consttucrion and dier July I, 2012, fM Is to bc crea:ed and pa>vuents iato such bond fund for thc re&ement of such additional boA ieqtrired pa>mene, if any, to th Revenue Ford, Reserve Acco""i and to thc Reserve and Cortiagency aro to commence <<dna 5 >vam from thc date thereof or, ia th- ease of refunding bo"ds, at is t e Fund are to bc tr&eiicd to the Bond Re&smear Account. (Ra Sxs. 6.8-6.13, 7.1; Supp. Ra.
when p >xnents with respea to thc reticent of thc refunded Bonds or addftloasI bonds <<xtuld be Sec 5).
tequired if such BoaA or additional bonds werc not refunded. From the procecA of sale of aAUrio&
bonds or rcvraues of thc Supply System avaUsb!c at the time of issuance; aa amouat equal to i<<e mai- Other Funds BstsbUshed by the Resolutfonl Hoir of Revenues mma amount of interest to become dce oa such bonds ia any six-moaih period is io bc deposi:ed in thc Thc Rcsoiutioa aho estabthhcs a washington Public Povar Supply S>atem I'uciai Project Nrx 2 rcscrve account h such bond fund, nnd such account is to be mrintafned ai such amount; pmdded Rcvcruc Fund, Bond Fund (induding an Intcrcst Account, a Principal Account, a Bond Retirement thai such amount, ia thc ease of refunding bonds, may be so deposited at the Umc whca ihe refunded Account and a Reserve Account), Fuel Fund and Rescrvc and Contingency Fund. AU such funds are Bo" ds or additional bords are no longer deemed outstandhsg. (Res. Sec. 9.6). to bc held by the Supply S>stem, except for the Bond Fund, which is to bc held by thc Bond Fund Trustee.
Construction Fuad; AppUeatioa of Bond Proceeds Revrnuc Fund: Thc gross rcvcnues derived by thc Supply System from its o<<xtership and operarioa of thc Project arc to bc paid into the Revenue Fund. hfone>a receisvd prior to September I ~ 1977~
Thc Raolurioa atabUshes a tVasfrington Public Power Supply System Ãuc!ear Project Ntx 2 or thc Date of Commen:i'll Operarion, <<hichever is earlier, under thc Yet IULhg Agilmente will bc Construction Fuad (the Construction Fuad") and a Construction lntcrat Account smI Fuel Accou"t eietUted to a Preps>ment Account in the Rcvcnuc Fund. BonncviUc ami the Supply S>stem have ag~ed thercia, to be held by the Construction Fund Trustee. Continental Ulinob Ban'k and Trust Co pany that iftbc Project docs not commence commerrial operstioa prior to September I, 1977, aa amount at last of Chiago Is Construerion Fund Trustee under the Raolu Don. equal to onc-M'f the maximum annual iniercst oa thc Bonds issued prior to Scpte ba I, 1977, p!us Thc proc cds of sale of thc 1975 A Btmds <<K bc appled as foUo<<a: $ 6,000.000 <<fU bc Mured in ihc Amtu I Budget for ie project for thc perhd Ianna T I to Sep'.ember (a) An amount equal to thc iatercs'. on thc 1975 A Bonds from thei: date to Sepulcher I, I, 1977. Such amount <<9d bc credited to thc Preps>ment Account ard used, Urs4 to deposit ia thc Bo."d Fuad for credit to thc Reserve Account, the amount required to arabs such Account ia thc 1977, wiU be acdiied to the Constr crion Interat Accouat ia the Gmsttucrioa Fund. (Thc ia:crest amount requhcd by thc Resoiutioa; soignd, to deposit $ 3,000,000 in the Resavc c" d CortLngency to September I, 1977 oa thc Boads heretofore issued <<as capitaUxed from thc proceeA of such Fund a9, Curd, to provhic $ 3,000000 for worldng apiml for the Proj:ct. Addftvmai <<or>lng capital Bonds.)
may be proridcd by mutual agrccmcnt between thc Supply S>xtem aV BoancvUlc. hfoneys ia tbc Revenuo (b) Thc sum of $ 2,382,000 <<UI be credited to the Furi Account in ihc Constrt <on M. Frnd az to be ad for thc purpose of mahng required pa><<tens into thc Bond Fund and nny speciri funds for add fdonri bo."S,, paying for thc costs of operaring and mainiaining the Projea, maiing required (c) Thc balance of 1975 A Bead pmcecds wiU bc dqesited ia the Conti~on Ftmti pa>xucnts ir:.o thc Foci Fuad and thc Reserve aad Co" iingency Fund, mahng repairs, renewals, replace-ments, additions, beuerments and i .provements to, and cxtensioas of, thc Project, ad pa>fng cU othe.
The proceeA of sale of subsequeat series of Bonds willbe appled as foUowst chsiga or obUgrdons agains such revert'ues (Ra. Sec. 6.1).
(a) An amount equal to the Interest oa stsrit Boads to Scptemb:r I, 1977, wUI be cicdiM to tho Coasuucrioa Interest Account ia the Constructioa Funti Bond Fund: Fnxn thc gross rcvcaves therctoforo pad into the Revenue Fund, thc Supply Sptcm B to pay monthly into thc Bond Fund, for the credit of thc Interest Account and the Principal Account, (b) Thc Supply S>stem <
- atcm determines BonA as th: same bcc."mc dne and pa>able. Pa>taenia to the Intciat Account will commence on (c) Thc balaaec of thc Bond pioceeA wUI be deposited In thc Comtrucrion Fund. September 25, 1977. prior to that date thc Commtctfon Fund Trustcc wUI transfer from thc Constrcctfoa Fund to ic Bond Fend Trustee amounts sufUricnt to pay each InuaUmcnt of interest
'Ihe Resolutioa provides that ri wor&g apital and the Res:rvc Account and Reservu tmd Con- oa i".e Bonds.
ringency Fund requi:emend are not provided for by Sep:ember I, 1977, thnegh revenues recrived Mceisdy p >incurs to thc principsl Account arc to commence not hier thsa Somber 25, 1977, pursuant to m Net BiUiag Agreements, rich amounts will be provided from Bond proceeds. and bc rrScf eat to pay outsing serial Bonds as they mature.
hfone>a ia the Comttucrion Fu=d are to be us< to psy Cost of Consmtctfon of thc projat, wh'.ch Bey@mug Jdy 25, 1994, the Supply S>%em is also obUgatcd to pay monthly into the Bond hcludes costs of contracting amI acquiYig the project, ob:iYing pernrits aad Uceases ad ~tri."~ .Re:ima:ent Account amounts sMaent in Qe aggrcgatc to sedan thc 1975 A Boads mmuring Foperty a d Fue4 trustea'nd pa>1ng agnus'ees, taxes ""d hsumnec.pre 'tmts, the cost of en~
Ing services awI a Yidstrarivc A oveihad expel of the Supply S>stem cUocab4 to th ~~irsirion a"d constiucrion of the Projec'hc cost o! acquiYi "g Fuel <<(U bc pidtd from i".e Fud Asxr<L July I, 1999 and My I, 2012 in ihe prinripri amoums and ai thc tiaa speciced under the subcaprioa "Siaiing Frnd Insmlhuents" under "Thc Do"ds and thc 1975 A Bonds". Such amounts arc ia adUtioa to the amounts required or to be required to bo paid into the Bond Retirement Account to redeem the bfonc>w ia isc Comtmerion In'.aat Account in the Consttucrion Fu"d <<fU bc md to pay fntm terns bonds of o:her scria of BonA in t."~ prineipaI amounts and at the tines spcciged La the resolutions oa thc DonA to September I ~ 1977. Whenever mon~ ia the Constmctfoa Ia:crest Account are Inade- auritoriring such Bonds. hfone>a ia the Died Rerirement Accoimt arc to bc appUcd by tLe Bond Fund quate to meet Llierest paymc ts, amounts necassry 'to meet tho degricncy arc to be iam.ettwI from Trustee to thc purchase or redcmprion of outrig Bonds.
thc Comuuerion Fimd to thc Consign. 'on ln:rest Accouai. Thcrc is required to bc prid into and msmtrincd ia thc Reserve Account for ecch serie of Bonds
'Ihe Resoiutfoa Prescribe cerirda Procedura desifv.cd to safe@:M Ps> eats or traas!crs from outstanding. an n=ouni equal to thc largest amouni of interest on such Bonds during any sh mosS ihc Coasttucrion Fum4 h ImUng, ~~ othas, cerri6cstcs by ihc Constr erioa Enghea Itcmira"'on by the Supply System of ihe amounts to bc paid and thc p~qecs thaeoi
~ a dctsUcd period from ihe d":>> of such BonA to thc Ensl maturity date thereof. By Scp:ember I, 1977, or thc Da:e of Commerciri Oper"tion, wh>chcvcr B emi:r, the Supply System wUI dcporit m rcqtercd amount 31
ELECTRIC UTILITY PARTICIPANTS SERVICE AREAS
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- l. 2,033,780 Blschly Lane Couary Cooperariive Etc~ Associatioa .......
- 01) lect~i o<<<<RA 4'rem Coii RS ~G- 4 t7y Z'M Sappty Sysum.
- 1. Thc o !Put of the project is sequ>>cd to meet thc load growth of the utihty s)>>tems of the Fadge Northwest under thc Hydro Thesmd Powes Program.
- 2. The ¹t BG>ing Ayte=ents boom th Supply System, each Participant and BonncvEe provide a so& basis for pr~ wish thc fhanchg o! the ccnssswon of the Project through Ba' g pse'~sary work on two nuclear gcncsathg fscilitics lu addidon of Bonds as pioposcsL The Supply S)>>tern to thc Project. 3. The estimated cost o! the outpu! o1'the project fs rsnscnabie a"d comparable to costs P
- o. 1, expcctcd L>>un sLnilar nuclear projects to be dcve>oped withh the same thne frame.
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