ML18191A345

Washington Public Power Supply System Nuclear Project No. 2, $125,000,000 Revenue Bonds, Series 1975 a

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 " iV jy NUCLEAR PROJECT NO cscal vL ~ "P-' hva ' g~ ~ il 0 11 Woshlnp(on Pub((c Power Supply Sys(em cs 1(111 CO tts i.. I OOO<h(as y tOST-I ta AA .VQXHIL a (0 tm svrvar)Q Cospststivas OAO MVSUsll Cv.(C lv a(i&i 'rt r t'C Ah ~ rr~ ) Mvthiatpsl tiss OONQ I cro C au'a 5Q~ 0'la l ~ vvavaaav Cstcttas stA 'tillsvt55IOV 515'CCU 10 I ttssilllr l,tsrl I ' a Cj CCA AALIA CCvrlllll CtitNS SEE INSET t' I Irl'I~ I '..-.-i'I ~ ( j v. iplc I LON rCOCNAL IVC(cll tOUCN tLANT sav Nv y mN 5 Ct tUt'rraa L I Q NON s(0(llt. /055l. ti'CL tONCA tLANT(COALI CO atr 0 IW 5 WiM I Rat trav( t(0rO ~ aa l Sh Vill a($ 1 OIC'h cj hr at aavlail Ct (1CC ct Lar 'illa 1trC 0 i r cjr tit(.cjsr ~ V-- '0 trt h tg, v 1 +AQv~r ~ aa~ / alai 0 vllt000 lail'VLUI ~ I ( >>Otc 1 r atua~(tc(.tstr. 0-- S(5(NVMION Covltr . V 1 Vl iliCV Cl(C. LLC Clair .V.a I iv assr>> Q Ii h CtC( 't ~ CNT N NO.E L ~ittss a(tt4 Wa GPSS -!-'rl.r...... ~r r qvaa C~~ ta raa I t'c. r) ~I Nv'll ('tr l r 'at ~ Va I:0 1st 0 Pgrt vNa / 1 F a Cs. 1Y, C(ht sat till >>a -a rr.( a i'lr-gE. Tw Agva( 5' tatL stall ,I ,.,-.0~< Q rv' r vaaaa L lI NAIL Ct((.tstr C I., I 'lrra I I 050:5( K list lti(l v L AY ILI ~ ~ 0 'hctcc.cJtr, T a jO vltlllr

OAAOOI,

~ avva 'a'( 'r c <j+tohUO. ALCS (tpcs / $ ~ (ON I I I I- 1 I aaasv ' ~ I --,0=: ( )I(IVG ~ I I I I A raN'ACT t -I Krh u VINIOOAA I I NV ~ aar(r O~..YSY rtua O 5 g ~lt ~ I 1 . 5'a I.lt tl a.atr .L I I I ~ ~ ah>lsf 'ta ~ Av ~ ~ n ~ al .ca K '-1st A 0(CLO I ah ) 1 (,y&t I -W OnEIGOi 'I 'il I) A II 0 1 I I CaL I I PpR i. 1 8 1 Y>> l(d N R Y l( I) Z ( -j> ~ I Irt arts tali ti(c csm ~. v. ~ Ila aaa avaaaaal ~ (K I V ~ ~v~ VvIr rar K -C ra ia the Resene Accouat dther frau Bond proceeds or amouats rccdwd under the Net BZLng Agree- Sptem authormd to dk busiaess in thc S:etc of Washh~on, nct cxcecdiag 259o of thc capital stocL meats and deposited in thc Prepa>vnent Account. The Supply S>x!em B requi ed to msiatch t!ic required cad surp!us of such member. Moneys in thc Rcvcnuc Fund not requLM for Immediate disbutscmert amount in the Reserve Account at aB rimes thereof!a by addiYional pa>men!s from ihc Rcicnuc Fund.. arc!o bc hvested h Iavestmen! Scocrihies described ia dsuses (i) through (iv) above maturiag or lf any Bonds are issued after September 1 1977, or thc Date of Co.~ere!a! Opemtion, whi;hcvcr Is ~ sedeemsb!e at or prior to thc estimaied time for the diibuisemeat o! such mone>v. Moneys in the carlicr, thc additiorial amotmt required to bc deposited in the Reserve 'Account shaB bc deposited thereia Interesi Account, Principal Account and Bond Retirement Account are to be invcs!ed in Invcstmeni from Bond proceeds or rcvcnucs availab!c therefor at the rimc of issuance of thc Brads. (Rcs. & 6.2). Seauities described ia chuscs (i) through (iv) above matuiiag not hter than 2 ihys prior to thc rcspecrivc dsws whea such moray will be required for thc purposes intended. hfoaga h the Reserve Accouat Fusf Funds Beghniag oa the Date of Commesdsl Operation, aB pa>ments for Fuel <<iB be made co: reqirired fos Itn edis!e disbursement ate to bc invested ia investment Securitics described ln dauscs I!om thc Foci Fund. After the Date of Commercial Opcrarioa, after tqshag the required paya~mrs ia!o (i) through (iv) above msturiag or redmnsblc <<ithia 7 >ears from thc date of iavestment. hfoaeys h tho Bond Fund aad hto aay sepamtc bond hnd fos addi&mal bmds and after pa>ing 6= ~~ab!c thc Fud Fund A Ress!ac aad Conringency Fund not requi< for immcdix!c d!sbu!scient arc to be iniested ia lavesunent Seeuriries mamiing os redeunsbie wiKn 2 >u=s mid 7 yeas, rcspectiwly, from and necessity costs of opcratiag and msh~g thc Proj~ hehdiag taxes or pa>meats ia Leu thmoL tho Supply S><<tern wiB uaasfcr to thc Fud Fu"d tbc foBo<<hg amour! thc date of iavesunent. hfoaeys h tbc Constrrcriioa Fuad arc to bc hwued by ve Construction Fuad Trus;ec in lnvesnaent Rcuriries restating or rcdccmab!e <<iithin 5 ym!s of tss date of iawstmenL (Rcs. (I) thc amount iadwfuf h the Annud Budget for Fuel, 5~ 61 67) (2) aB amounts rcccivcd as Fud csedit, hdudhg thc proceeds of thc use of Fuel. mid Excess !!for~sr Prior to Sep!ember 1, 1977 or thc Date of Commetdd Operation, whichever is (3) any additioasl amouats accessary to avoid a dcgdency ia the Fuel Fun* (Rcs. Sec. 6A). earlier, excess moneys (as hereindter degned) ia the Reserve Aeeotmt and thc Reserve and Coa!ingcncy 0 Fund shsB bc paid into the Construction Ftmd. hfonc>a aad the value of Inwstmeat SecuriYia h Reserve or3 Contingency Funds On os before S ptembcr 1, 1977, os !he Date ot Co~erdel thc Rcscrvc Accourt ia excess of the aa.ounts requited to bc mahtehed h tie Reserve Account con-Opetatioa, whichever occurs earlier, ie Supply System wB! deposit ia thc Reserve and Coathgeacy siitute "excess moneys" in respect of such Account; mone>a aad thc value of Invesnncnt Securirics Fuad thc sum of 53,000,000 from th Preps>men! Account, or, to thc exicat such moneys arc not in thc Resave and Contiageacy Fuad in excess of $ 3,000,000 pius the commit eats or obligations available', from Bond psoeeeds. Ia September 1977, and in each moath thercd:cr, thc Supply S>x:em h~sred by or the rcquuements of thc Supply System for any of thc purposes for whhh thc Rcscrve ls required to psy out of the Revenue Fund hto the Resma ard Gmticgency Fund, aft: r ma!ring the and Coatiagcacy Fuad may bc usa! consritute "cxccss n:on ys" in respect of such Fund. requi:ed pa>meats iaio thc Bond &md, any separate b.nd fupd cs!abhhcd for additional boW aad tho Foci Fund, aad after paying or mahag provision fos pk>xaent of thc reasoaable aad ngesury cost If as of aay June 30 foBo<<iag September I, 1977 or thc Date of ~aria! Opersrioa, <<hhhcwr of operatiag mid mahtainhg the Piojea, an amouat equal to 10% of the aggregate of the amounts Is earlier, exes morc>s exist ia the Resesve and ConCiagency Fimd or thc Rcs:rvc Acokunt, suds requLed to be paid durhg such monrit h!o thc Intc~ Props! amI Bond Rcrirement Acckaa!s in inoncys shaB bc ps!d as foBo<<a! tbc Boad Fund and into any spcoU hads for htemst, priMipJ a"-d bo"-d rctLcments ia sespect of addi-bo~ (a) excess mone><< in thc Rcservc nd Conringency Fund shdl be pdd ptoporrionstely hto noaal thc Reserve Acocnt and thc reserve ~unt for aay serics of addiriscal boads to thc extent of any hioncys m thc Rescrvc and Conringeacy Fimd are!eqtrised to bc used to male vp d ac!caries h dcgriency the!cia, and the balance of such excess moneys shall bc paid hto thc Rewnuc Fund; and thc Bond Fund or in any bond funds established for addiYional boads for which fucds arc not availab!e, (b) excess mone>a cxhriag h thc Rescrvo Account shall bc pdd proporilona!ely inm thc rcspeaively, ia thc Coastruaioa Fund or Reserve AIumuat or ia thc const!action fund or reserve aeco~ ~ resavc account for any series of additional bonds to thc extent of any dcQchncy therein, and thc h respect of addirioas! boads. To the extent not rcqvcrcd for aay svch degdeng, moneys ia thc balance of such cxccss moreys shaB be pdd into the Revenue Fuad. Rescrvc and Contingeacy Fund msy bc used after the Dine of Commcschl Operation fos any onc or morc of thc foL'o<<iag pu!pnsm: If as of aay Junc 30 foL'owi g September I, 1977 or thc Date of Commouid Op;.athn, whichever (i) to pay the cost of renavals, rephaunents and normal Mucus to awf exteasioas of the is cs!Ber, there shsB exist ia thc Revcnuc Fund, after g!viag of!ca to any LMer of excess moneys Project; and  ! ~ from thc Res~ Account aad thc Rose!v" and Conthge cy Fund tk such Fuad, m amo "t which execcds thc Supply S>wcm's requi:ed amount of wnfring capital, the amo'"t ot such cxeas fs to b. (ii) to pay extrao:dhasy operauoa amf mahteaanec costs, hdudiag cxtrsor&sy cols ot Fuel and the cost of prcwathg or cosseahg any unusud loss or damage (hciudhg majos repsL>) to thc Project. (Res. Sec. 6d). <<vuUag mpit~Z s'ha!1 be 53,000,000 or such lasa amoun: (not Lss ~ ppBed to reduce annual power costs micr the Net BilBag Agecaents. Thc "rcqdsed amcun! of $ 2.000000) or such greater amourt as may be dedded vpoa by thc Supply S>atcm aad Bo~wZ- <<5th thc approval of u Coa-sulthg Engheer. In addirioa, if the Supply S>x'-m ard Bo~vBI ag!ee, aB or any pan of such fnvesimrnr of Furst Thc term "laws!ment Securirics" means (i) direct obggstioas of, or obligs- cxecss over requhed wos>1ng capi!al may bc applied to thc ma!riag of repdrs, rencwm, replacements, rions guaranteed by, the United Stem of Amerim; (ii) general ob!igatioa beds of any stat= of thc sddirions, bettesments aad hnprovcmcnts to, and extcasions of, thc Project, thc purchase or redemprion Udted Staics ra:8 by a narionaBy seaigsused bond ratiag agency h ehher o! !h>> two ldghcst rating of Bonds, or for other purposes h co""cc:oa with the project. (Rcs. Secs. 6.2, 6.5, 6.6). eategorics assigned by such rathg agcacy; (Bi) bonds, debenmra, no!ca or parricip-rion ee!rigea:cs hsued by thc Ban!s for Cooperatives, the Federal htermetBate Credit Bane, thc Fedeta! Home Loan BaaL S>stems thc Bxport-impoa Bsnfs of t" Uaitcd Staies. Federal Land Bsnfs or thc Fedacl Nsrionsi Mortgage Assoeiktha or of aay agency of thc Uai!ed Statm or cf any coTosarioa whoBy owed by thc Ud!ed States; (iv) pabBn Htmshg Boads or psojea Notes sea..ed by contmas <<ith thc Uched 5'-':cs or an agcy thaeof; aml (v) tLnc dcpkrits aad earigmtcs of d~t of any membc: of the Forest Rcsavc boA ao ~d Catsia covenant of thc S Trp!y S>vmm whh thc hcMem of tbs xs flows: Bcmds smd thc bottle!s of add!km] 33 32 Corsulu>>g E>>girarrr Tbc Supply S>>>tern <<iU rctaia a natioaxUy recoy8zed hdependcnt- conufit-The Project! 'Ibe Supply S>>>tcm <<iU, subject to thc Projca A@cement, comp!em consttverioa of mrna ing eau~! or eng'"ecriag firm to render conthvuts engineering couasel h thc operatioa ot the Pro~ thc Projea at thc earliest pmcricab!c rime, operate th Projca efficientiy and at rcasonsb!c cost, Ia addi!ha to his other dr.'ics, thc Consvlthg Engi"ccr shaU prepare, noi hter than 18 moa>Jts a:a the thc Project ia good condiuon a"d comply at aU times <<'.th the terms of aay licenses for t5 Project. Date of Convvzrciai operation and each 3 yeas thereafter, a report based upon a survey of thc ~ (Res. Sec.9.1). Projca ""d tk opctstioa aad msiatenaace thcsoL Each report is to show, among other !Mugs, whctha Rvicsr The Supply S>>>tern <<1U Cisposc of aU capabUity of avd power and energy from t5c Project thc Supply S>>>tern has sarisfaaorBy peifoiv:.cd and compRd with certah covenants h thc Rcsoiutiom Agree-solely for thc bcne5t and a~ant of the Project ard pe suan: to thc proiirioas of thc >!et Billing The CoasvJting En!lacer is abo revivircd to rcport to the Bord Fund Trustee a" d thc Supply 5>>>:cm upoa ats: aad the Supply S>>>tern sill maintain and collect rates aad charges for capsbBity, power and eaergy t!ic economic soundass and feasibility o! aU coatemplived rene<<vis, rep!aeemcnts, addi Jons, britcrmcnts <<hich wUI and other services, facu'itics aad conunodiiies sold, furnished or supplied through thc Project, and improvements to, and extcnshas of, the Projea iavo!ving the expenditure of $ 100,000 or morc. inter-be adetiustc, <<bethe! or not the generatioa or travsmissioa ol po<<vr by ihe Project is smpendcd, Thc Consulting Engheer is also required to 5!e aanuaUy a ceitificate <<ith the Boad Fund T!vs~ thittgs, (i) to pay rupted or rcduccd for any reason <<hatcver, to proiidc revenues svQ!cient antong other ~ dcscribi"g the irsuraaoe then in cgect and stating whether or not svch imurance complics <<4th the into ihc Bond the expenses of operating and maintainiag ihe Project, (ii> to nuke thc reriuircd payments rcrvirements of the Resolvrioa. In thc event of any loss or damage in excess of 3100,000, whether or iato thc Pv J Fund and any special hads for additional bonds, and (iJ) to make thc rc!',vrrcd pa>xenx not covered by insurance, thc Consulting Eaghccr is to ascermia the amount of such loss or damage Fuad and Rescrvc and Conthgency Fund. (Rcs. Secs.9."-,9.3). and deliver to tbc Supply S>>>tcm a cerrificatc sctriiag forth thc amouat and nature o! such loss or dsmagc, togcthcr <<iih recommendations as to whc:ber or vot such loss or damage shoald ie replace>L Cop!a Ncr Bi!Erg >Igrremrrus vrd Project >fgrrcme>>rr Thc Supply S>>>:em <<iU not cement voluntaBy of aay such nhnaiJ report, annual certificatc as to hsvrance, or ccrrifizte in rcspea of any such loss to any amcndmeat or rescission of the Projea Agreemeat or thc Xa BBUng Agrccmevts or take aay for Wreia or damage wBI bc sent to bondhu>des Bing with thc Supply S>>>tern writtca requests therefor. (Rcs. action under or h uenecriion <<ith such agreements wMch will reduce t5c ps>ments pnsvMCC Scc. 9.10). or of m or which viU in any manner Lnpah'r advescly afiea thc rights of the Supply S>>>tem bovdhoMes. (Rcs. Sec. 9A). Evvnts of Ddavlt; Rcmedics Under 5'e Raolu Con, thc happening o! one or morc of the foUowhg events comtitutes aa Et>>nt of DI!posfrk>>> o/ Prop!>>i!sr The Svpp!y S>>>tem will vot seU, mortgage, lease or otetwise dispose of Default: (i) default in thc performaacc of aay obUgatioa with respect to payments into Lu>> Revenue any properrics of thc Project u Jess (a) sinml:aneous prosisioa is made for the rc J:em!at ia fvU of the Puad; (ii) !Lfav!t ia the payment o! thc principaI of or default for 30 da>>> ia the Ie>ment o! ia>terat or Bonds and any addiYumaI btuds or (b) the piopewa to bc !L>>posul of are tmserviceable, insdeip:ate. any sinkhg fund imtJlmcat on aay Bonds; (iii) default for 90 da>>> in the obscrvan ard performutcc obso!eie or no longer re!la!rcd for usc in coanecriioa with thc Project, in wMch case $ 50,000 of thc of any other of t."c covcaaas, coaditioas aul a Jvvcments of the Supply S>>>tem ia thc Resolutioa; (iv) raone>>> received therefor are to be traasferrcd to the Rese~ and Conthgency Fund ~M thc balance thc saic or conveyance of aay properties of ihe Project except as pertaitted by the Resoluriion or thc Is to be paid proport!onatcly hto thc Bond Refirement Account and bond retircmcnt aueunts created forfeiture through fault of thc Supp'ly System of any Ucense, franchise, p:rmit or other prit wgc nmsmry riies for additional bonds, unless such disposition is in connection with thc replacement of such prop or dairab!c in the op>>stion of thc Project; and (v) certain cvcnts ia ooanection with the bankruptcy, traasfcrrcd or thc disporirion ol Fuel, ia which case all moneys received from such !UspcsiYioa are to bc Insolvency or reorganizatioa of thc Svpply S>>>tem. (Rcs. Scc. 11.1). tramfer of such to thc Rescrsv md Contingency Fund or thc Fvcl Paul, rcspcrrivcly, or (c) th fn csc an Event of Dehult has occurred wldch has not been cured, each truitcc appohtcd by or w c or ia p"-c is by operariion of hw, ia wh."h use moac>>> reccivcd therefor arc to bc ropctries pfopc h whole cs ia paid proporrioaately into thc Boad ReJrcmeat Accouat md bond rcti:emag ~ts for addiriomI pursuant to h tb provisions of thc Rcsolufiioa is iertuircd to excrete svtt of the rights aad powers vcs>ed it by the Resohtion and usc the same Ceg!Cc of cuc avd shll ia t!e exercise theuof as a prudea msn boa ds. (Res. Scc.9.7). wovM excrasc or tuc ia the cirrvmstances ia t5c coaduc! of his owa af!CI!s. (Rcs. Sec. 7.6). '>>rurcrzcr The Supp!y S>>>tern <<iU keep the Project insured, to the extent such hsurace is avaB- Ifaa E>vnt of Default s5aU have occurred, aad shJI not haec bccn remedied, the Bond Fu>>d Trustee Cestruaion oL the Project, at b! at reasonable cost: agahst rish of Cirect ph>>>imI Ios, damage to, or or thc hoMes of 209>> ia principal amouat of th BouR ard additioaal bonds thea ovtstavdiag may least to the extent that simBa: insurance is usually arriuI by private utiTity corporariions opera Jng dcchre the priacipal of aU the Bonds and additional bonds and the interest accrued tb>>!con to bc empIo>vr's and agchst accidents, casvaives or negligence, L>>eluding liabBity insuravu and 'rop"rues, ed!ately dvc and payable, but such dedaratioa may bc aaauUcd under certaia circvmstateuu lisbiTity. (Res. Scc. 11.1). ot Ia thc eveat !>hat any loss or damage to the propettLes of thc proj:ct oecvs during the period ARer the o~sence of aa Event of Defauh and prior to thc curing cf such Event of Dchuit, coastrucriion thc Supply S>>>tern is to transfer the iasurwee Iroucds, if any, in respect of such loss or ihc Bond Fvvd Trustee msy, to the cxteat pernit ted by hw, take p!>>sess!on aad control of the Pro!ca received by thc Supply S>>>tern ia rcspeci of damage to the Constructioa Fund; any iasutancc proceeCs and opeiaic avd msiataia the same, prescrib rates for Projea capahUity or power sold or supplied such loss or damage oi>>irring thereafter arc to be transferred L>>to ihe Reserve avd Continger y Fund though the fsciTiriics of thc project, collect thc gross revenues rcsultiag from such opcratioa and or ia thc case of iasuraace covering loss or damage to Fuel, to th Fuel Fund. (Res. St@. 9.5). pcriorm ail of thc agrccmcnts aad covenants contehed ia any contrxa ~hi!5 the Supply Systaa is !ben obligated to perform. Such gross revenues> after payment of oil r tlag expcnscs> s CU bc app cd Bookr oj >fccou>>rr 'Thc Supply System <<ill keep proper booh cf ceovmt, showing the project ax to the payment of principal of and iaterest oa thc Bonds and addiYioaal bonds. After aU svms then &>M of tk~ Divishn of >dvniYiipal Cor-a scparaic utility s>'stan, ia accoulxncc with thc rules and regni d c ia rapea of the Boads and addiYionsl bonds have bcca p id, and Jter aU Events ot Defa"'t have r"~s of thc State Aturtu's officc of the State ol tVa~gtoa aad ia auottLm <<ith thc Un orn been n:cd or sea>rcd to thc sst!sf@won of the Bend Fund Trastw, thc Bond Fvad Trust- is reitrired S>>>tem ot Accounts prescr>oui by thc Ped-al Power C-m=brion. Su-" boch of auovnt -e to I e to ~>'Bh rion. Bond- pots~ avd conmsl of thc Pro>m to m Supp'y Sync@. (Res. Sus 11 3> ] I 4) a~ad!ted a""vtly by a 5>>n of hdepc"-Cent cerrified pub Jc uu>r":ants of nsrioasl !cpu> ho!Ces may obeah copies of m ""uxl ~ca! smtc~ts sho<<hg th fiaancixI condirioa of th: Tbc Resohrioa cmpowas the Boui Fund Trustee to 5!c proofs of vires for thc bcnc5! of thc hob!as cf thc Buds in lank!up!ay> Imolv~> or oogatrisarion prcoecdhtgs "d m hsrimte urit S>>>mm. (ILs. projca and thc anna ~J a" Cit rcport by acme a writtca revivcst therefor to the Supply Sc 9.9). 34 35 FNEGOTIABLE LATRUhfEf~ with thc Bonds, to a!one speciffc periozmanee is for thc coBcnioa of sums duc aad unpaid in connect!on iae The 197$ A Bords and the iatercst coupoas attached thereto are negoffab!e instruments to Resolutlca or to obtain Injun Jvc or OJez appr~ctc rc"cf for of covenants contained in thc cxtcr t prorided by tke provirions of Sccuon 54.24.120 of the Rcviscd Code of tVashingtoa. of the holders of the BOM. (Res. Sec. 11.4). pzotecffzoa the Boads ard adFF'till bonds at th- rim The holders of a majority h principal amount of LmGATION to direct the Qme, method aad place of coaductiag any proceeding foz aay outs!and!ng have the right to thc Bond Fund Trustee, or exercising any trust or powur confer!cd upon the 'Ibere is ro litigation pending or, to thc knowledge ot the Supply System, threatened, quest!oniag remedy availab!c with rasoaable searity and indem-but the Boad Fund Trustee must be provided thc covorate existerce of thc Supp!y System, the ritric of the otffeers of the Supply System to thefr Bond Fund Trustee, decline to follow any such directioa if it shall bc adrised by counsel that thc action respective offfces, thc validity of the 1975 A Bonds, the power and authority of the Supply System nity and also may !f R ia good faith deternrines that the action to haue thc 1975 A Bonds, the vdidity of the Net Bi!ling Agreemats or the project A@cement, thc or proceeding so directed may not lawfully be taka or . cd'irected would involve it ia persoaal bablFJty or that ' the actioa oz proceeding so vahdity of any other proceeding taken or contra.. entemd into by the Supply System which is ia aay ho!ders of Bonds ozz add!tlonsl bonds n ot p acies to such way re!ztcd to the Projec.', oz the power and uthority of the Supply System to ffx, charge and co!lect wou!d bc unjustly prejudicial to the rates for the sale of power, cncrgy cnd capabJity from the projat as provided h the Rcso!ation. dhected direction. No bondholder has any right to hstitutc sui: to eaforcc any prorision of the Reso!uritoa Intra!1-to enforce thc payment of principQ or interest or the exeatioa of any trust thercundcr (except has been requested oy thc ho!dczs of not less ) unless thc Boad Fund Trustee to exezcise the pow wers g ranted it APPROVAL OF LEGAL PROCEEDINGS than 205o in aggregate pz!ncipal amount of thc Boads thea outstanding ' Trustee has refused or fii!ed, All!egal matters hcident to thc Nct Billiz.g Agreements, thc Project Agreeme" t aad thc auiserizarion R I fft tc such, suit and ualcss thc Bo"-d Fund to comply 60 days after thc receipt of such request <<(th the 1 aforesaid request, thc and after h v-"g been offercd adequate sccurity an 'th ch equest. Ia th>> event thc Bo"d Fund Trustcc has fsllnf Rcso!urion provides foz thc act!Ion of a Bondholdcrs W or refused d'dthn 1M Counsel to thc Supply ~, and fsmaacc of the 1975 A Bonds are subject to the approval of hfessn. Wood Dawson Love tk Saba!:"c, and hfcsszs. Houghtoa Cluck Con~>>' R'Jey, Spec'LJ CotmaJ to thc Supply S)xtai Cop!es of the opinions they propose to reader ara appaded hery as Exhibit IV. Amendmeats; Supplematal Resolurions Any amadmat dm to th c Resoluffoa holders of 66)5~o in prinripal amount of thc consent of the holders of 66)zz% ia principal I f! t d b an amadmat which uJ m y bc made by the Supply S)litem Bonds amount and of additional the boads outstaading thea ufth the conseat of thc rat!standing Bonds aa wi aad add!t!o=al bonds does not equally affect all other otnstznd?ag c In the op~ton of the TAX RKMPIION above named Counsel, thc htcrcst oa thc 1975 A Bonds wlffbc exe=p from Federal Leone tu"tkxz under cxfsJag laws ad rcgu!atioas aad specie- zuffngs issue! by the Revenue Service, dated November 18, 1970 and Novcmbcr 30, 1972. ~ M Beads and addittoazl bonds, provided that pa)vnent of principa ~red redemptioa ti pri 'ta-paI of orr any in !L-eat of no such amendment pricee thereof or the rate of interest pcr"Jt a c "ge Intern! oa any Bond or add.:&mal bo"d or a redact!oa thercoa without thc c causa'. : of hfISCELLAiMEDUS ¹t Bi!rag Agree=ats, the ia the principal or Thc referaces, excerpts and smnmsries coamined herein of the ach bondhouer so affected. (Res. Azric!c XII). project Agreement "d thc Reso'iuffioa do not Fupozt to bc complete statements ot the provii<ms of thc Supply Slutem may adopt supp!ematal resolu- rA doamats and rdercncc shou!d be made to such docmneats for a full and complete state at WIJ:out thc consent of aay holder cf Bonds, the cov~ ~~ series of Bonds or addirionzl bonS; to add to of a!I matters ze!a "g to thc thc basic agrcemcnts securing thc Bonds and the rights and OMgatioas F tioas: to authorize thc issuance of subsequent reserved to or coafencd upoa of the holdns thereof. l S tained h, or to surreader aay rights ' Issuance of a i-estricffons conmiaed in the Reso!ation upoa thc it b, thc Resoiutioa; to a "d to th e res under the Reso!utioa of the revenues Thc auiFFxrizat!ons, agreements and coveaants of thc Supply System are sct fonh in the Reso!utka. tion2 Indebtedness; to co nffzm as fu.. nherr assurance aay pledge thc Rcsolutioa (but no ncithcr this Official Statcmat nor any advezthcment of the 1975 A Bonds arc to bc construed as a .on otherwise to modify any of thc provisions of conum with the holders of th 1975 A Bonds. Any statements made h this Official Stztemeat involving to cure aa am igF tty aay ambi while any of the Bonds arc outstadhtg); or maffers of op'-Fon or of esJmatcs, whcthcr or not expressly so Identiffed, arc iatendcd merely as sech such modiffcaffzon may bc cffativc the Bond Fund Trustee shall eonscnt thereto. prorid:d that aad not as repznenmtfons of feei or correct any defect in c Resoluffion esou'h (Rcs. AztMo X). All of the fnfozmaffon relative to the Pacific Nozthwest, Bonncvi!lc, Joint Power Planning Council aad Pzciffc No&west Utilitics Conference Committee have be n tskea from sources dcemcd to be REGISTRATION OF THE 1975 A BONDS rcliaMc but arc not gaaran~~ as to comp!ct<<ness or accuracy. BY SI'ATE AUDITOR thc State Avditor of the Smtc of Wash!ngton. aad a Be derv'f ~~'Kclsl Ststemaz has baa duly authorized by the Supply Syseat. Thc 1975 A Bonds will bc reg!stcrcd by Auditor or a Deputy Stum Auditor will bc cndorscd .e State the cerriffcate of u neath 19755 A B such regisnation 'ance sigae Boa d ia aaor ance with d b th y wi the pznfsions u c Supply I o!! Sarion 54.24.070 of thc Rcviscd Code S>xtem by the Rnid Code of V cshingtoa, Secritoa WxsttntcToà PUamc Powxa SUttLY SvsznM of Washington, made app' E b! t o revenue obligattons after having been so <<Jo. 54.24.070 provfdw, in pact, that aay Enwnr W. Tavxoa shall bc held ia every aaron. wit or proce ng ia Secretary stercd and bearin such ccztiffcatc 'hto vdoa nvd ad bhang ob!!gsuons in aaordsna with valFTdty B or may bc brought b gh --ri pzima p fa!c a&r Lxms. ABC E)fHIBIT I Paittd syaoc ~ t ties Scactsttn Shan or WASHD(GTON PUBLIC POIVER SIIPPLY SYSTEhf NUCLEAR PROJECT NO. 2 ~Payftd ot Cosroiacn Rcccoocs ~C~ Pcoicct s4!J 'Ihe Parriclpaats, their customers and gross rcveaucs, aud Pacrieipant's Shares of thc Project capabBlty. Public UtSity District No. I of KLhkitat County, Washhyon... $,999 8 1,788,$ 58 .01009 Kootenai Becttic Cooperative, Ia" 4,789  !,OS1,040 .00391 5 Lane E!cctfic Coopefauvc, In~ ~ ~ 7,654 2,019,895 .01452 i If P~dsaots Public U:uity Dis:Qet No. I of Lewis Couaty, )Vmhnyoa ..... 15,716 3,703,733 .02274 f (" toss Start(ctcs Share Pfoi(ct of Uncola Ei:ctcie Cooperative, lnc. (Montana) .............. 1,632 528,653 .0025$ Lost Riict Ecctcic Coo"cfauvch Inc. ~ ~Payfsd ~i Cairo rahhs 155 8 Raccoon 27,169 ~Cs .00016 aht Lower Val!ey Poisvt 8: Gght, inc. 1,35$ 6,659 372,6S2 1,866,175 .00202 .GOS20 Gty of Albion, Ifhho Pub!ic USSity Dhtric: Ão. I of Mmon County, WMinyon.... L541 439,058 .00231 'I 1,785 388,710 .00263 pubfBc Utility Disuict No. 3 of hhson Coimty, Washinyoa.... Ciry ot Bandoa, Omgoa . 12,373 2,898,63$ .01446 Public UOBty District No. I ot Bcntoa Cosmty, Washington ..... 16,121 $ ,111,529 1,323,22$ .05350 .00666 Town of hfcQC ry, '\Varidnyon 642 218,860 X@234 Bentoa Rural Electrc Associarion, Inc. 5,0$ 0 05 .01610 City of hfcMinnsal!e, Ocegoa 5,692 1,675,956 .01227 Big Bead Electric Cooperative, Lc..

l. 2,033,780 Blschly Lane Couary Cooperariive Etc~ Associatioa .......

4,3SO 1,90S 755,447 .00272 hfidstatc Bectric Coopehratisu8 I~ 4,092 I,105491 .0048S Gty of hl!Iron-Frecuuter, Oregon 3/76 640,99S .00583 Gty of Bhiae, IVQSYingon ... 1,2!3 254,413 .00185 1,62S 401,405 .00182 City of hfiaidoka, Idaho . 54 7,729 .00005 Gty of Bonnets Percy, Idaho . hgssoula Eicctu'c Cocpefarivc, Inc. Gty of But!ey, Idaho .............o .................... 3,977 872,123 .00694 3,731 859,5$ 2 .00294 Gty of Canby, Oregoa ................................. '7 '212 473,313 199,021 .00090 .00054 Gty of Monmouth. Omgon Nespricm VaL'cy Bcctri= Coopaarivc, Inc................. 1,867 1,110 381,692 2$ 3,461 .00236 .G0149 Gty o! Cascade LocLs, Oregon $ 97 5,656 1,477,539 .00586 Northern Ughu, Inc. 5,844 1,364,914 .00455 Ccn\fcl Ecctfic Coopcrariivc, Inc. 6,382 1,168,111 .00739 Northern Wasco County People's UtilityDisuia ............ 2,519 516,771 .SI51 Gty of Central!a, WQSL'Qyon Central Uncoh Peoples'rility Diurict.................... 17,997 6,321,978 .04017 Okanogan County Ecctric Cooperative, Inc................ 1,027 ~ 207,370 .00190 2,608 666,771 .00539 Public Utility Distria No. ) of OLanogaa County, Washngtoa. 11,661 2,981,689 .01042 City ot Cheney, Washing.'on .01769 3,009,330 Orcas Power <<aad Light Company 3,$ 49 Pubfdc Urii!ity Distria No. I of Chllsm County, Washiayoa.... 10,413 989,451 .G0725 57,672 15.I 06,0SO .06151 Public Utglty Distrn No. 2 of Pectic Cotmty, Wmhhoyon.... 2,022,730 Public USBity Distria No. I of QarL County, >%ashinyon...... 11,218 .01503 2.288 2,015,406 .01996 Gty of Port Ange!cs, Washhyon 6,995 1,994,158 .02416 Qaukanic Peop!es UtiL'ty Datcht ~ 1,432,S13 .00715 PrJYie Power Coopersrisu, Inc. Gears stet Posyer Company 5,537 323 S0,390 .000!9 Columbia Bmh Becusc Cooperarive, Inc................. 3,102 1,067,072 .00613 Raft River Rurei Eearic Cooperatisu, Inc................. 1,736 1,106,458 .00853 Columbia Pou er Cooper tive Assochtioa, inc.............. 1,304 46S.909 .00143 Ravalli County Beach Cooperative, IQ- ................. 2,195 588,330 .00301 Columbia Rual Hectric Associarion, Iac................. 1,914 86$ .810 2,68S,341 .00161 .00453 Gty of RicMand, Washnyoa 9/32 2,6S6,624 .02761 Consumers Poshm, IQ* 9,523 RinrsMc Bear< Con:pany, Ltd. 208 40,857 .00020 .01634 C~cry Elearic Cooperative, Inc. 8,305 544 2,6S4,490 160,S24 .00137 Gly of Rupert, Idaho . 2,086 4SS,714 AM34$ Town of Cou!ec Dam. WASHY~ 11,504,144 .0552$ Rural Hectric Compaay . 1.98$ 494,'173 .00262 UriilityDistria No. I of Cowlitz County, Washiayoa... 29,704 Mem Hcctric 7,150 1,309,752 .00453 PQSBc 18,1$ 0 .G0019 91 Mmon Rlvcf Hecui" Coopcrativcf, Inc. GityofD h,ia ho 1,277 359,886 .00170 Douglas Eectric Cooperatisu, inc. 5,3$ 5 574 I/96,211 183,381 .00363 .00218 Gty ot Seattle. Washhyon .................... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 259,444 63,848,358 .07193 i City of Drain. Oregon 67,254 .00033 Publh Uri!ityDistria No. I ot Ska<<mania County, Washhyoa.. 29742 834,987 .00547 321 j v East End Mutual Hecuic Co., Ltd. .0102$ PcbEc UtilityDhtrict No. I of Snohomhh County, IYashinyoa. 106,832 28,765,124 .15363 5,06$ 1,086,S42 City of HIensbucg. Washington . Iac................. 4,313 99$ .459 .00409(A) South Side Electric Lines, Itc.... 399 149,859 .00073 Fall Rivet Rural Bearic Cooperative, 204 44,15$ .00041 Gty of Springdeid, Oregoa . 6,236 1,436,100 .00363 Fartners Electcic Co., Ltd. 496,215 .00171 City of Sumss, Washington . '322 73,916 .00048 8 Public Uti!ity District No. I of Ferry Cotmty, )Vashinyon..... 1,427 4,188 8$ 2.728 .00370 Surprise VALicy Eleacidcathu Corporation ................ 2,929 80S,466 .00323 Flathead Elearic Coopecatisu, Inc. 980,130 .00181 Tanner Hcaric 709 4,336 176,338 .00122 City of Forest Grove, Oregon Wmhington.. 10,421 3,033,105 .02370 Til!amook Peop!Cs'tility District, 11,345 25752,344 .01729 Public Utility Dis:rict No. 1 of FranLlin County, Public Utility Distria No. I of Gmys Harbor County, IVash'"g.oa. 2S,635 8,540,24S .03075 Umatilh Eicanc Coopccativc Association ................. 4,883 1,826,413 .00036 .00719 Unity Ue<<ht <<mal Poivet Company Hafncy Eecuic Coopmrive, Lc.. 1,632 999,123 1,101 267,900 .00204 711 414,990 .00504 Vera Irri~garion Dhtria No. 15 . 3,349 645,259 .00701 Gty of Heyburn, Id" .o 2,103 652,670 .00502 Viriiante E!each Coopemtivc, Lc. 3,100 Hood River Eectric Cooperative of Hood River County, Oceym 816,425 .00294 Inc.... 1,648 385,282 .00186 Pu !!c LTBi:1 District No. I of Wahkhkum County, Washhsyoa 1,967 Idaho County Light gc Power Cooperauve Associatha, 13,046 3,351,267 .02376 IVasco Bcctric Ccopcrarive, Lc. 2,309 391,753 .00328 756,790 .00342 Gty of Idaho Falls, IdaPAs . 12.802 3,188,311 .01222 West Oregon Bectcm Cooperwve IQ- 2,672 673,833 .00182 Itis"d Power I; Ligiat Co pang.I"DI<<(h ~ .00220 9 Ih Dho:yD<<<<<<D I Iy, W(~D 1,217 337,982 TOTAL ~ ~ ~ ~ ~ ~ ~ ~ 858,90hy ,230,773,352 (5) yD<< h~s.' I 0 W~ I ~ y<<05 ' lis Parmp(=gs Sharc to Puhtic Usury Dhutet No. 1 of County. (Corahmed on n-c page) 39 38 ~(<<.<<.whee~.h<<hhyy ~ sw-Dy 0 E>QHBIT H The Supply S>stem is nudertabng prelimhsry work oa tvro additional nucksr generat!ng fariiiYies desiymtcd as IVashi"yon PubEc Power Supply System Mear Project No. I and IVash!sgton PubEc R. W. BECK AND ASSOCIATES Po<<ur Supp!y Sperm Nuckar Project No. 3, which are, as is the Project, aa intcyal par of Phase I ot thc Hydro IILcrmal Po<<ur Program. The Supply System <<ill hale IOOLyo o<<TLaship of Nuclear Project No. I and 70!ro o<<nership of Nuc!ear Project No. 3. The Supply System's o<<TLership share ~ LALALWC SLAT hl. wAIACWAL of th>> output of these projcas has ba:a sold under net bKng agreements slmi!ar to thc Net Billing OLLeL CLAATkCOLOALOO Ayecments for thc Project. Each of these projects is a separate utl1ity system and thc revenues of each SALLL IWOLA<<,AOTOAA arc respectively p!edged to each s:paratc s>vtcm. AAALITLS sa Towtl LosoTLO o<<AhOO. <<OLOA LYALOATIOAS stATTLLWALIAIA:TOILTTICT LIAAIACLLALNL .COLV4%IL HC LAAVLA Ia a!dition, th: Supply System has undertaken preliminary 6naachg and preliminary <<erk on t<<e LQLAIeAtLLOLLA<<Ala additional nlwlear gererating feei!ities known as thc Wathinyon Pub!ic Po<<ur Supply System Nuclear Project No. 4 and tVashington Pub!ic Power Supply System Nuclear Project Ntx S and is Invmigating LL . AI AL FILE NO. SS-1119-NFI-TA hfarch I, 197$ h these Pmiccs willbc ~ thc possibilities of its partieipation ia nuclear generating facilities kno<<TL as the Skaglt project to bo built by pugct Sound Power 6: Light Company. Tbe Supply System antkipates that its o<<TLership interest as a single utl!ity systan. The Projec! Board of Directors Washinycn Public Power Supply S>stem Tbc project is located approknately 12 mL'es north of the City of Richland and 3 mlles west Richland, Wash!ngmn of thc Columbia River, in Benton County, IVashington, on thc Hadord Rese~tlon of thc ERDA. Gentlemen! Thc Project vill Inc!ude a nuclear stem supply system manufactured by thc General EIectric Comity that <<TII employ a boiling water reactor. Thc nuclear stcam supply s><<tern <<ill Inc!ude thc necessary auxlqdlary s><<tems required to control, consin and service the nucle r reactor core. Stcam Subject t Summary Engineering Rcport wIII be suppEed to thc tmbinc t approximately 935 psia. After driving thc turbine, the stcam will bc Washington Public Power Supply S>stem exhausted into the condenser which is coo!cd <<ith cuuu!sring water from n:echanical draft cooling Nuclear Pmject No. 2 towers. 1Vater will be <<i&drawn from the Co!umbia River and strsbly treated for usc as makeup to thc coohng to<<ur circa!sting system. A IVcsringhouse generator will bc uhc main generating unit and Presented herewith is a sumtnaty of our analyses, invustlgat!ons and studies with respect to the willbc rated at I/31,700 kVA. 'Ibc generato: <<1II be conncaed to 3 shtglc phase power uaasformers proposal by thc Washington Public Power Supply S>stem (thc "Supply System" ) to issue $ 125,000,000 and t<<e auxBiary transfthmcrs. 'Ihc men power transformers <<1Q step up the geaerator voltage of its Washing:on Publk Po<<ur Supply S>stem Nuckar Project No. 2 Revenue Boads, Series 1975 A (the to 500 kV. Dehvery into thc Federal Columbia River Power S>vtcm wpd b: over a 18.3 mvc 500 kV "1975 A Bonds" ), for the purpose o.'aying cert'ost of acquiring and construing a nudear-fuekd transmission lkc to be consLLuaed by Bomtcv!UO Power Admiaistratioa ("BonuevZc") between thc ekcuic gen:rating p!ant with a nordual capacity of approximate!y 1,100,000 hlowatts and related pmject and Boa "evvl "s HMotd Substatioa. Thc project <<TB have a nct c!mtrical output of approxi-fariiities (the "Project" ). Thc Supply S><<tern has issued a tosl of $ 355,000,000 of its IVashi-"yon Public mately 1,093,000 kvtowaus. Power Supply System Nuclear Project No. 2 Revenue Bonds h three s:nes, S:r'es 1973 (tho "1973 Bonw"), Series 1974 (the "1974 Bonds" ) and Series 1974 A (the "1974 A Bonds" ). The pmsent proyam provides that additional revenue bonds will be blued at kter d".es and in amounts PermIS and Licenses necessa~ to comp!etc the conrtrcakn of thc Pmject and p!acc it Into operatioa. Thc splice site for ue Projea hs been cer6$ ed for thc Stam of Washinyon by thc Wastungton 'Ibc Supply System 1s a m~Yiptd corpomrion ~ a jokt opcraring agency organ!ra! under thc Is<<u of the State ot IVashinyon and has 21 memb:rs consisring of lg public utility distrias and 3 muniripab- I:~ State Thermal Po<<vr Plant Site ET<<!nation Counrik The Supply S><<tern submitted to the AEC a Ple-Mcty Analysis Report and an EOTTronmental Report for the projea <<hich werc rcsdewed by the rita, dl located withhtnhe Sstc of Wmhiagtoa. The Supply S><<tern o<<ms and opemtcs thc Paebvood La'ke AEC. 'Ihc Advisory Comm!am on Reactor %&guards of t".e AEC, on Gctob:r 19, 1972, aeckdal H>vkoe!Oaric Protect of 27,500 kVa of na-e pLate capacity Iocsted ia Le<<is County, IVssh!agon, ths:, if due aesiderarion is y'vcn to the cern=eats of th= Commtkc, the projca "can bc constructed the ste"=~learic generaring plant cf appmxinately 860,000 kgowarts Iomtcd h Benton County, with reasoaab!c msur~ th t it cm bc opcratcd without undue risk to thc health and safety o! thc >Vaainym, knovm as the Hauford Project. Steam is pmvidcd to this hite! projea fmm a nuckar pubIdc." pubL'= lesriags <<uro cad<<red in ~dane <<ith AEC licensing requircr:cats, aA thc AEC reaetcr (tAA: "Ncw Productioa Rcartor") o<<ued a"d operated by t!Lo Energy Reso rces Development Uccnsing Bo d on Mmh 19, 1973 ya" tcd t>>e Supply System a aestruction permit for Oc projca. Agency (tbe "ERDA"), a sumcssor agcn~ to thc Aton Tc Energy Comwfssion (thc "A~, oa its ' ord Reservarioa near Richland, Washhtyon. The Supply S><<tern issued S13,700,000 ot P -bared Lake Hydroe!ectr!e Project Revenue Bonds, Series ot 1962 ard !965, to 6as m conssuwtlon of the Pa;brood Lake Hydmc!cctr-'mjmt aad $ 122,000,000 of Hanked Pm': Electrk Revenue Bo"-'s, Th= construction schedule hss been plepaed by 6c Supply System aaI Burns and Roc, Inc., m Series of 1963. to !man."c constwaioa of ts- Hanford Project. Ea."h of these pmjccs is a sqmm Cps'wrion Eny"ccr sc!meed by tho Supply Syst:m to dalgn and supersfsc constructkn of the project. u8iny s><<sm a" d tho raven~ of each arc respectively p'.edged to the sepal systems. Ere@~i of tkc co"'"-ent vessel was aa.M fa.Septuor 1973. Cocgkg tower ccnsuuaion <<us P deliseiy in Deccmb r 1975, and the turbhte In add rion to thc foregoing amounts obtained through issuance of Bo"-S,, fuM required to maLc started in April 1974. Th='reactor vessel is scheduled for thc necessary papa. ts:o thc Reserve Account tin thc 9<cd Fund, to provW worhng capital, to 'fbc Constiuedon Engineer has projtuted that the generator is scheduled for delivery in Junc 1975. the date of commercial opcradon to Jrne I, proiide an Initi I Reseivo and Contingency Fuad and to provkfc a contingency for fuel arc expected to Project is eight months b"hind schedule, and has rcschcdulcd thc program for const tucrion is rcalhtic and be obtained unde; the Nct Billing Agreemerts describcd below during thc period beginning Januaty I, 1978. The Construction Engineer is of the opinion that rea<onab'ie cfzmce of achievement; however, accord- 1977 and cztending to September I, 1977 as foUows: a commerrial operation date ot June I, 197S has a conun rcial operating date v9(U ietluire a signif~ant ing to thc Consuuetion Engineer, realization of such a improvement in the rate of construction progress. Rcseivc Acszydnt in Bond Fund(l). S21,127,GOO c conuuim~nts to:alcd $25 S,058,567. KVorking C"piiJ(2). 3,000,000 As of December 31 1974 etluipment a% construction conuuct Decembe. 310 '1974 are summarizcd,ht thc foUO<<ing tab.c: 0 ~ Actual expcn6t"w to Reserve aud Conringency Fund(3) 3,000,000 Tomf Consuuction Cost ................ $ 123,4S7,400 Fuel Contingency(4) 8,000,000 11,85~~700 I(uclear Fu:I Bond Discount and Financing Cost ........ 2,664.100 TotaI 333,927MO I ID 3 0 OMS (0 > ~..... I9340000 T lll ..................... SI57304200 (t) Esttmstod s~t ieeeiied by the sappy s)stem's Resohs4sa )rsz 6SOS (3) h22243eet sebjea m fDSthor Resiyiis aad spprovit by BceaevQfo aad ibo seppty system. (3) tmlou23t rrq2<<cd by Qe zuppty system'i Raoh3tf63a yre6 6eo. Long Term Fiaanciag Program Bonds to Saancc ihc constmcrion (4) Est(assed amount to be pr43vidcd f573m Rdviaisd aoi bnties io permit foSDI~ of fur~Dr seausl term Sauncing program contemplates the issuance of fDet eoiu ia the ewat of a cririesi period of pclvcr scppiy. Amccat scbBct to aA ihe Seppiy initial operation of thc project in several series. The $ 150,000,000 cf the 1973 Bonds werc ihe aai'.yus aed approval by Beaeevine Syuem. and the 1973 Bonds werc us4d to provide for thc payment ot Urst Bonds issued. Proceeds from thc issuance of 55,000,000 ot outstanding revcuuc notes theretofore Issuaf for thc project and to pmvide addi- H for any reason such amounts (other than the fuel conriagency) arc not pmvidcd under thc h7et thc.$ from the issuance of thc $ 80,000,000 of the BillingAgrecmenlts they willbe provkied thmugh thc issuance of additional Bonds. tional funds for construction of tM Project. The proceeds Bonds and the $ 125,000,000 of the 1974 A Bonds are being used to pay thc costs of construcrion 1974 125,000,000 of 1975 A Bonds <<iH bc used io pay the costs of thc Project, mid the proceeds from thc $ Consttucfion Project Output construction of thc Proj et. Based on preseiit estimates of actual needs by thc ot conriinuing and the Supply S)ztcm, the proceeds from ihc 197$ A Bonds vriH b: suGieient to eoniiauc eoa- 'Ihc Project is expected to have a nct peaking capabiLity cf 1,093,000 kUowatts and is Engineer to <<hich '-hc addiiional Bonds arc plamd io bc bc capaMc of produchg Jxsut 7 "00 000 000 kHowatt hours annuaUy. Duri"g a critimf period ot power exp'o stiuction of ih Projcci until thc sum.-r of 1976 prior IssuctL The a cunt of tho nezt issue of Bonds will be deter@nod med'ately prior to the rime of supply in thc p riSO I(or9hwest earned by water shortage, it is expected t" t thc proj~ wo Jd bc caHmf issuance upon to pmducc thc fuH amount of cncrgy that it fs capable of produring. During other pcriods, howmur, ted Financing Retiufred(1) there wiU b. thres whea surplus water viU bc avaUabh to generate power at exisring hydroelectri projerzs thereby pamitriag " reduction ia thc total amount of energy produmd at the thamJ cfemio proofs to bc constructed under the Hydro Thermal Power Pro@am, Induding thc Project. $ 491,516.SGO Total Coezttucwon Costs(2) ..... $ 2S5,210,000 $ 10S,145,000 8 98,161,SOO 40,929,000 Cost of Power Nuclear Fuel(3) .............. 12,445,000 2.382,000 26,102,000 Estimates of th: annual c'os!s of thc Project'5 operariions have been prepared lmsed on 1974 costs of 7 326.0M labor and matcfi Js escalated to csthnated 1978 conditions, the actual hterat rate on thc 1973 Bonds, Financing Costs ............. 2,664,000 2,250,000 2,412,000 21.049.000 125.60S.OOO tho 1974 Bonds and thc 1974 A Bonds, and annual interest rates of 7.2556 on thc 1975 A Bonds and 81,903,000 22,656.000 Interest During Consuuetion(4)... on thc additional Bonds. The costs rcgect those operating costs that would bc characteristic of a maturo Gross Retiufrements ......" S382,222,000 $ !35,433,0GO $ 147,724,800 $ 665,349,SOO phnt. Thc total annual costs are es(iumtaf to be approzinutely $ 70,330,000 for thc generation of Less: Estima:ed 792300,000,000 kilowatt hours minuJ)y amounting to a unit cost of 9.77 mUls per kUowau hour. 51.379.SOO Insustmcnt Income ........... 27.222.000 10.433.000 13.724.SGO The tgJ annual costs referred to above me baal on level debt servix over a 35 year perioSL The. 'M 3934.0NON SSI4.MO.MO NI RIOR'\ ~.... ~... 5355.000.040 3925.000.0N Supply Sys:cm and Bo~~IO -ti ~w ll979 ~ 0 DG'DMS IR . I I Ill'9992*% ~ ll pate thai mauuitics of thc <<iH not be sehufuied to yieM 1~xi dcbi servLo Lroughout Qm pcrioSL Variarions fn annual costs will renilt from st@ schedu)iag coats. Scc Ezhibx fiL fn project eomS~i42a <<7322td ra27tt ia sa hersase ia these to tb cxtcnt that wuJ iLbt scrsi- varies from the msumd level debt scivLc. eocsuuedea <<ons. c~~ee~ sad esmsuu~a smaRS maz eau, aafsdea azd ceca-~ as

01) lect~i o<<<<RA 4'rem Coii RS ~G- 4 t7y Z'M Sappty Sysum.

by iha (ZSaurGD~ Eerieca; Red Sale of Power (3) (4) 4490 Based atfmsud by the Seppiy S>vtsm; Lch25a sita iiz. ou a~ Mrieioii rata for SRRI 1913 Bmds, the t974 rata of 7&46 oa ihe f935 h Boa& Raid 7.35% oa the 42 ~ BanS. ihc 1974 h Beads L25 BSmh. assumed ~est <<rat 1 'Ihc cadre capabUity of thc Project has been prchased by 94 public agency PartiYipants pursuant to Nct BiUing Agrccmcnts enmicd Imo bcnvccn the S-pply System, BonncviL'e mf each pzrtfripanh 'Ihe as defhed h In addidon to thc forcgohg projects, thc Supply S>>>tern, pursuant to a request by thc Public Po<<>>r e>1 o. the Project Annusf Cosa Co Nct Billing Agee ents obLgate the Pasmpants to pay folio<<>> by mah cateDsdes: Coun@ rcpmsenthg morc thin 100 statutory preference customers of BosmevZc in thc Pacidc Noah-The rumbcr o! Pasthdpsnts and the extent of pewpadon west, >as also begun pseliminssy work on the Supply S)>>tcm's Nuclear Project No. 4 and Nuclear thc Agree=cuts. ~PP>> II ProIe t No. 5 ~ is invesiigcsieg mhcr elec'".c generating facilities. It is presently planned that the Supply S>>>tem's Nuclear Project Nsx 4 <<11> be a duphicate plant ot the Supply System's Nuclear Pro,'cct ~>> 56.363 No. 1 on thc Hanford Rcservadon and that thc Supply S)>>tcm's Nun!car Pso;ect ho. 5 sill be a duplhate ~ Dbufcts plant of tss: 5upp!y S)>>tcm's Ncc!ear proje:t No. 3 at m Satsop si:e near Aberdeen in Grays Hssbor 22>>'7 hfu! !cfpaL'dm ...."" "~ 22.639 20A93 Coumy, RVashhg!on, The Supply S)>>:>>m is n:gothting <<iih thc hvcstors<<ued utilitks <<ho sha:e 45 o<<uesship in the Supply S)>>tern's>>Nuclear Project No. 3 concerning possible sharing o! o<<sicsship of Coopaanvca Nuclear Psojo>> No. 5. The Supply System is Jso hv>>stlgathg the pou.'biiity of paniqpathg on a Total ..... ~ 94 1 OOA)00 joht o<<sic!ship bash with pugct gourd po<<ur 4 Light Company and other hvestorpo<<ucd utilities in puget Sound power 6: Light Company's Skayt project to be located h Skagh County, )Vashington. ~ ty p&gc Un!sty Divulge 4 Peep'u".sty Dhutets, aA! 1sstrstkpa Dliuict. h st the 'he prelindnary work of thc Supply S>>>tern on these projects to date is being dnanced from thc proceeds Nose: gescsessy sist!id il tefosscssleu oa the PsstMpsats 0 riven h Tsht+ of 517,500,000 of Washington Public po<<ur Supply System Genesathg Facilities Revenue Nom which werc issu:d in t<<v> series, Series 1974 and Series 1974 A. b such h 'h i, Bach Pastici ant's share of the output of i suc Participant, a total the Supply S)>>tern for su )>>as.. ~ thc 05cial Statement to v;hich Other Proposed Projects nt wB amocnt cscd>t this equal the repo'st to is the the Project has been ass'gn Pasticip ut payment each 'hich year, agahst i ed to Bonsciillc which, amounts oivhg to Bo""eiille the Pa>>icipant is required to mMc to Tl is p roccss referred to hcreh as "r~t Mling" is more hlly at!ac~~ LSieussed h Conclusions arc of Based on our study and anal)>>cs of thc Supply S)>>tem's proposal to consuuct the project, wc &o~>>'on that:

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.

Pubih Power Supply System Nuclear Project > Thc first of these, designated as Washington Reservation near thc site of thc Project. This a!ed on thcc Hsnford B a 1,250,000 hlo uu pro>set lo ate " or roj We have fusnbhcd to )xiu information contahed h the Ofgcfsl Statement under thc capdons ed to be built at thc site of the Hanfosd Project generating facihities hto its design.. t i!hash<<d ccn c e "Project Fmmschg Reqtdscments", "Project Output", Project Annus) Costs", "The H)tfso These Powc: Psogsw A>>" Poet Supply h the Pmc Northwest" ad Bxhbit L Tn our ophfon, the hfosm" ~ the site near the project in owfer to Jhow conthucd operation o non contahed the!eh fs cosrec!. Present phns psovide that the total cost of thc of rcien~ue notes iss cd in ycne 1974. Application for site 'ashh"ton the W ed f th gton State issuance of long-term bonds. ta e 'll:csmal Po<<er Plant Site Evalwihn Council of ~May approvsd has been submincd to ~ o rc the State of tV~vs g.on and thc nuclear stcam supply s)>>tern has been /s/ L W. Baca mw7> Assocsayxs esi ated as '6'ashington Public Power Supply S)>>:em Nuclms Pm;cct No. 3, 'red -oe"t <<i'hthcgu l Systcmowni"ga70pcrc.ut ~ utgiues o<<uing th- retraining 30 pe ircent in!crest. A site hr imdivided interest mid four hvestorm v u ed ~ has been selected n ear Aberdeen h Gra)>> Harbor County, as e this pro>ect Supply S)>>tern's s. re o work on thh pro,'ect is under way. Thc nt owners 'p s P lans prov'.dc that the Supply Systesn's 70 pere.nt the issuance of io g~>>esmbonds Noah<<>>st" w i. is and Powcs Supply in the Pacige ~ccsing scpcct fs an extu>>iit. summary 45 Tfhi Po xo oo,v N NLI . c ro ., ~ 8 '. 441 ..; ." '5oND 4 Els'2 Tab'e A Burns and Roe, inc. PROJECP PARTICIPA.LIS Data 220 Fonoo Avenue ~ Itepxpstosd. sew York ttSA ~ Teophcco (stc) 48$ 4cco Summary of Haanda) and Stat!rica! 7(VX 6104224049 ~ Cxh!e BVRCK HD4PSTKADNY vovt it s To tot Toit: sxootnoonuoo coooosoiivoo Disirioio Slot!0 Cnxoe TCO iuoeoSxo$ ooc k ttoox Sioaitta Opodou, Noo JOSOOy 01443 Cusyoll tts 1 )02$ 6) 127,619 748,ID2 7 19,855 318.790 827/47 Rovtfcadxt 341,01) 153,669 858$ 05 364,163 Teel 26315 TN &.638$ 49 ............ 13,428,085 9,118.891 3,60S.SCO hfa:ch 6, f975 EvStxcv Sacs: tWB (000) Evrxov Pose<<Ssxsi ah (000) 2.840,603 164.645 504$ 81 3$ ttk229 5$ 4$$ 55 Board of Direc:ors Boaoovitto (nxaford Prelect Exchxato) 17,840.106 14$ 69$ 91 Washinyon Public Power Supply System 3,$ 855033 3 463 010 I 0,492.C6) N.911 Rich! and, Washinyon Boooovato . 456516 I 101 6213 1P06 20612'll On!or 509.0!I 9P69292 215827$ 1S Total Eocrgy Porchtia 'Dvh (000) .. 13251532 6414.67 2,094 6,184975 ~ .. ~ 559358 5 623 623 Ktsxxcv Gxoxaxrxo: tVVb (000) ~.... 28$ 12.193 26677 955 Subjects Washington PuMc Poser Supply S)stem I)$ 10,830 IO,V&.677 )$ 71,686 Hudcar Projea!qtk 2 Total Kaorgy RoCulrce<<an t%h (000) 1$ 24$ 22 '35/$ 4 5$ 06.6S4 5.$ 56.651 Pcox Ds<<xyavsi tW ........... ~~~ .~~~. 2$ 47$ 7$ Oporonooo. $ 211.60& 09 1<<coo(xi $ 43,449$ 09 $ %0,778$ 52 Barns and Roe Ine. has been selcacd and rctamed by %rayon Pubhc Po icr Supp y System To<<1 Opiaiiog Rcvoaoos ....~....... SIC)$ )RTIS $ $4.105,125 59 N4 2933. 56 3220,'lll NNII 663D 65 to provide cngineefing. design mid construcdon management services for DWmhinyoa Public Power OP!or ItcoSxse (Nocooportt!ag) .. ~ ~ ~ $ 216,1$ f.65f ~ ~ $ 237.608.611 . .~~~ llo,l5L6N 4 47 3:5 99 9 11.21$ 654 Supply System Nudm project 10'tk 2 (the "projea") being eotnuuaed on thc U. S. Atomic Energy Totxt Iteono ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Commhfion's Hsnford Reservudon, near Ricxtud, Washinyon. Orxxxve$ 0 KxyxNscsi 10$ 59,140 $ 16$ 13,489 Burns mid Roc's raponsibihdcs cover comp!etc engheefing. quality assumncc and construaion Purchoicd PoLvcr 5 6.623 8 '1.636781 8 Boco<<viTe (llxoford Prelect Exchtase) $ 8$ 95$ 36 $ 5),t(Xk9)5 45,18 161 2 management seisin a-d include prcparadon ot phns and specidcadom, capital cost esdmadng. site 10$ 5K119 W5$ 0.786 5 ................ ~ ~ . ~ ~ ~ ~ 31$ 69$ )0 1.0'9.$ 25 .656.5DS sclccdon, pardap tion in thc preparation of app!ications and reports for such items as thc Luclear Boaocv¹o 80$ $ 92 ~ 8$ 28 1 On!or . 2)5.505 ' 1228),7)4 8 IR225$ 95 $ 64,669$ (O 9 63Ãl,lil 0 Reydxtory Commission (the "LLIRCN) consttuaion perndt and operadng license and Corps of $ 40 N(yk)TI Engineers'ermits, Totxt Porchx<<d Power Expioxe ~ L565.164 economh analyses, projea scheduling, rcvicw of bids, cxpedinng of vendors and contractors, """"" 10350DII ~ ~ 61955N I 5 9 PL 3539394 assistance in phut stan-up and test and training ot opcmding pcrsonwl, manayng of construcdon con-Ocacrxdog Kxpoa<< ~ ~ ~ ~ ~ ~" . $ 19019400 4 122'I!844 $ 75059513 1 665399 D 9 1539669 tracts and coordinauon of contracton, direcdon of contraaor worL, es:ab!hhing and administefing Teal Pov5or Sorpty Kxp aie ~ Exroaie (IodcdSag Dep~ "hor tng IIM I. 19IP53.3N 'I 108217 473 115P39412 site safety, smufity, Erst.aid and other such site programs, and a!I related items to result in a complac Tax oi) 7LN17N $ 3515LI04 2 and successful oper" ting phut. To& Oportdog Expoa<<o .~... .. ~ 1 8,19D 446 $ Cotdooicd Bxtxace Shoot fhe Pro jec,' $ 883 $ 46$ 22 5 $ 40.666274 $ 401,162.021 $ 1$ 8$ 94.623 21 consist of a sing c u 4t, bodmg ~~t~r rcaaor c cairn generating ~t~t~~n hav Not Vc7Nty Pliat..................... $ 293,1 89,87$ 135 751 (tv 50$ 4N 924 ....... 7)~N65,840 5'60.895 9,624 877 nomic capaaty of 1,100,000 kilowatts together vfith thc neccssa5y transfotmtdon, ssitching aad related Other Pioncny tad Iavcoa<<atx 30$ 35.1'73 20$ 52 "II 9$ ,601,726 500 k fuasidcs to intcreonnax the generating shtion vfith the 500 kV faaiiiics of d:c Federal Columbia Correct As<<tt ..................... 49,63f NN22 9271. Dl 4 .63 2 .722 9 0 9.44 I River Power S)vten. The plant hyout and deign, which provides for thc initiJ development of a ...... ~ . 11.622A66 '9$ 5S.165 Deferred Dc'S<< ~ . ~ . ~ ~ ~ . ~ . ~ ~ ~ Teel Aisoio .................... $ 421,11)A06 449,433,19D i.'19591P14 $ 1,141,743,170 $ 1$ shgic 1,100,000 k!$ sutt unit,!naudcs coasidcrat!on of th possible future expansion to a staion with ano er gencrathig unit Foaowhg is a summ-p desefipdon of thc ficafic gencnuing stadon. 506.849$ 3) $ 156,106$ 2 I $ 565$ 12$ 26 $ Ixxtnxtvvsi 15oapTcrm Doht ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .""'" $ 168,60)A05 $ 240.602.0CO $ $ 50,077 48,751,704 415829,835 The Projea sid bc located on the Hafiord Rcservadon, approfimttely 3 nd!es oust of d:c Co!un:bia " 21,427$ $ 1 1$$14$ 76 9.626 $ 01 "g,402 River and 12 mQcs nonh of thc City of Richhnd. The plant <<i!I consist of a nudear stcam supp'iy s)steat, Correct UohnttSa ~ ~ ~ ~ ~ ~ ~ Crcd!ts ~ ~ ~ ~ ~ ~ """-""" 'eterred Sfyt)$ 33 112,192 56 3,t44,137 '88$ 79)$ 3 190.717 4207,1C6 3,4) 0$ 04 2'15.736 turbine-gaicmtor, coo!hg tosur and fiver makeup water pumping aaf b!Owdosvt discharge facilities, comp!Cm vi h stn ~e, auxiTiay equipment, iasDiumcctadon, confro!s and other associated accessoncs. Ro<<rva . Coauihssdcos h Atd of Co~ $ $ 37.114 9 930.835 'IIDSN515 6N11$ 60 IS369N 24A$ 6,709 I . 59.DI 653 I. $ 9 There sill bc s:vcn basic stmctures compfisin" th ovcral! power p!ant. '1hesc are thc reactor 4 Rctxtood Kxrohgi .................. 2~19.631 ................ llli713,NI 1494 4l 2 550 $ '319191¹ $ 1@4'1$ 43,170 100.000 $ 1.049,$ 58,165 buil~ng r~vo sutta M!ding. turbhe-gcrerator buildhg, diesel generator buikhng and savicc Tccot 1)tt3(htta 56268 22.639 20A93 Percent Po ~tNNx 47
• 0 - t0NL<<'
house thre= )argo vertieJ circa)aring wata pumps totaUing approxim te!y SS3,000 gpm capcity, buMng (togetss:r conprising m maLi p)snt), <<ooUng towers a=d <<L<u)aring piunpho sc, and river conp!etc with wa:cr scrcers aud oiher auxBiaries, aad thc 6:c pumps. The coedcaser cooling <<uter uiB naL<<'iip <<'atef p)aaL discharge from the turbiac-g:aerator building aad retura to the six round mech~!ca) draB cooling towers. AU structures <<iB be generally supported on compacted structural fi)L Thc approximate ovcraB hiakcup water to rcp!aee the evaporative losses of thc circulatiag << ter coolLig s>item <<iB bc obtained dimensions of the maht pleat <<Jl be 420 feet by 360 feet and thc nahum heighi from baseincat to from the Columbia River by means of three makeup water pumps. Blouriown from the circularing root will be 225 feet in thc reactor building and 180 feet in the turbiac-gen<<r tor buildiag. Thc reactor water sl>>tem <<ill be discharged to thc Co)unbia River do<<ttstream of thc make-up water intake. building wilt be of concrete constmetioa and will include a seed suptstruaure. Primary eoataL>>ntent uiB There <<iL'e a heavyMuty bridge-typ. aane in both thc turbine-generator and area)sting water bo furnished by a scparatc steel vessel withia thc rc" ctor building. This vessel will bc surrounded by coa- bui)dings for scrv)ring cyipnient, aad in thc reactor building for handiiag both equipment and fue). A ae:e from primaty shielding. The radioaaive waste dhposal facility, which adjoins the reactor building computer will be instsfied in the central control rotxvt for coUecting and analyzing data to aid ia contre) and houses thc equipment for treatment ot radio"cuve was'.es, villa)so bc concrete. rod positioning, plant operations and p)ant perfonnance analysis. The turb)ne-generator buL'ding siB have a reinforced concmtc foundatk>n. The portion above Diesel genera'.ors <<i)i be Iaduded for emergency use ia the cveat of loss of auxiliary power. The gad<< siU bc of htsu)ated metal pane)s except for the nuns <<ndosed by concrete for radiariion sh)e)ding. diesel generators <<iB bc housed ia a separate concrctc buildiag located adjacent to the reactor bui)ding. Thc nuclear plant wiU contaht a General E)cade Conpny boiling, <<ster reactor of proven design. The seriice buBding adjacent to thc turb!re-generator aud reactor buihUngs wiU house o)H<<cs, The reaaor core will coataia 764 fuel bundles <<ach coiuposed of an 8 by 8 rod a.ray of sfighfiy enriched laboratories, locker room, lobby, first~d fs<<Biri~ machiac shop and storerooms. UOs peUets <<ith ZL~oy-2 dadding. Thc assembly wiB bc cont"ined ia a Z)resin)A reusah!e <<oo!xat fiow channel which wiB provide a fixed fiow path for 'hc boiLiag coo)ant, seri<< as a guide surface for Construcrioa Prtricss and Sebkha!a thc control rod blades mtd protect the fuel during h."dfing. Contmaioa of thc Pro,'~ sss started in August, 1972 under a Constn:aion Permit variance Four fuel assembhcs wBI surround each of 185 contre) rods, whkh atu bo:ton mounted and granted by thc AEC, pm&msor agency to Qe ÃRC. The Construaion Pcrnit was granted by thc AEC 'h>t)raulicaBy driven to control reactiiity aad mode)ate rcaaor oinput. Ihe core aud associated Iaternris on hfarch 19, 1973 n which tim" <<ontruaioa of thc res<<mr buBding subsuuaurc uas started. Con-wiB be housed ia a vatical steel vase) approximately 76 feet high and 21 feet ia diameter. Thc nuclear strucrion of the rene)ada of the main phut was started oa hfsy 19, 1973. Erection of thc cont<<bun<<at tassel was stated ia Sep'tembcr, 1973. Coofirg tower cottstruction was started ia April, 1974. s:ean supply systan siH be comp)ac uirit stean separators aad drias, rocircu)aring pu ps aad sub-syscns!naut thos<<required tor norma) operation aad for shut doss. Thc instsBation of temporary f&ries is comp!ete. Thc reaaor buiMing substructure has beca compkted and the coatrianent vessel wh)eh rests on it was 83.2% compte as of December 31, 1974. The nuaear steam supp!y system wHI have a gus~re< rariag o',300 megawatts t"erm J aad 'Ihe substmcturc for thc turbiaageaertor buLiiing has been complacd and sv>rk is now Li pro~ will supply approxhnatcly 14,295,000 pounds per ho r of stean at 985 psia <<ith fecdiva:cr rerumcd oa tku turb'edcst2 mid the waUs of the twbin~erator building. Thc subsuuaure of th-at 420 degrees F. Tlis s'.cern to the turbine-generator <<SU resu)t in a gaaranteed output of I 154.745 ~ radusste buBding is oonplac and work is starring oa thc suprstruaure. Conaete sork oa the spray kBoustts of genertion under expeaed condirions of opentiou. After subtmaing thc electrical require- ponds and savioc water pump housn is nearLig comp)etioa. KYork has started oa the cooLng touvr ments for snrion operatiag aux)Uaries, thc net p)aat output eU'e approxins:c)y 1,093,000 kilowaas, bases ~>> th circa) ti"8 wa:cr pump hone. 'Ihe reaaor vessel is schedu)cd for deUvcry in December, The tarbiao generator uiB be a tandemeapound. 6-fiow unit consisring of a hi~it-pre<<rut<< tur. 1975, aad thc turb'"~castor is scha!cled for d<<Every in June, 1975. bine seaioa on the same shaft with three low.prasurc turb)ne seaions and the e)ectrie generator. Each Thc Proiea is projeaed to be about eight months behind scheMe. The compietioa dates have low-pressure seaioa will ans)st of two paraLiel fiow pathsmahag . total of six paraUcl steam exhamt been <<hanged axerdin Jy. Comm<<rein) oprarion is presatt)y scheduled for Jun I, 1978. Achieve-paths. The exhaust end of each turb'iB contain rotating b)adcs 44 )aches ht length. The turbine. ment of this date wBI mquLm a sig8icant improv<<meat ia the rate of construaioa progress As of generator rotates <<4 1,800 rpn. Deeanber 31 ~ 1974, ovcfsB onsttrucrion vms <<stinated to bc ) 3.0 lo complete compared to a schcd u!<<d 38% comp!<<rion under the origina) schcdulc which contemp)aux) a commercial operation dstq of Thc generator sill bc a three-phase, 60 c)u)e AC unit rated at 1,231,700 kVA at 0.975 power Scptanbcr I, 1977. P~prational tesring is cxpeacd to begin on certain components in June, 1976 factor aad sill genaatc at 25 kV. and conrinue through November, 1977. Fuel 1<@ding is scheduled for December, 1977, with start-up Thc turbine cycle will iaclude six points of regenerative feedwater heatiag utiliiriiag extractioa and power tesring to bc coaduaed prior to hfay I, 1978. The estitnatcd costs shown in Exhibit A arc steam from thc turbhtc. The feedwata heaters sill be ainnged in parallel paths, <<ith thc lowest pressure based oa a conmercia) opcratiag date of Juae I, 1978. !I th)s date Is sigtufimnfiy <<xcccded, the exhausting from heat<<r in thc nccL of the condenser to <<I)ect economies ia space and materiaL Steam badge) siU have to be IncrcnctL the turbine will be condens:d by circ<<)sting water coo)ed by tnechsnical drft cooling towers. The coa-densate wiU thea be retu:ned to thc reactor through the dehrineralizer and fecdwater heaters by motor- Coastmction Costs ead Coustmcrion Contracts reactor feed pumps. The tuibiae-driven condensate aad condensate booster pumps and turbinc4riven The to:al esturated project coastmetioa cost of the )tcrr4 under Barns and Roc's scop of reipon-co" tro's, wrumentarioa, e!ectric switc-generator pleat uiB be comp)cte with auxiTiary systems, pump, siMhy as En@'" er, Contrucrion and Quality Assur ce hfanager is 5447,416,800 as showa in deiail in gcar and fire pro:ection equipnen'hc Exhibh A aaaehcd to this )atcr. Thc capital cost csrimatc covers aB nudear elearic gencraring gcnaator e)ectrieal output will be transnritted by isolated.phase bus dua to three single.phase plant cqvcpnent and construaion up to and Iae)ud."ng the main step.up transformers, Bwa aad Roe trans.ernie, each main step.up transfomters, e havLig a raring o'. 380,000 kVA. wheh roe the vohage from 25 kV:o cni,N <<rin, consuuefitn U qu'y ns~ naiagemc ty shc consu)tantsy and sales taxy <<onringency 500 kV for transmission. A)to )nc)uded <<iB be onc sprc single-phase uxs!orner of ritc sane ntmg. and csn)arion appfimbin to the domn~ritnetL Nuclear ."w) anl.own:r's coax arc not Exh!gt A. It sho id be noM t".t the ~~'ion costs have now bcca distributed ia thc tUrea co<<sL~ InJ~ in condenser oeoBag <<<<ter, fire s)>>tcn water aid I i ~ >'er Fcmpuousc which proiidcs rion cost to nak it agre<< <<ith the Washing'ub~a Powa Supp!y System amouaring system. cooling wa'.er sill be located south oi ~>> pL-"t adjs'=t to m cooHng to<<<<a. It <<Ul service auxiBary 49 48 Thc total costs of equipment and construction conuacts awarded to December 31, 1974 rc she<<a It h our considered opia:on, with respect to the Project, thfti oa Exhibit B awaehed to thc lcncr. As no!cd oa this exhibit these coatmcts to~ig 5258,05$ ,567, include provision for escalation. The amounts for these contracts total approximately 74.6~v of the 1. The piesent phns and desiga are suitable for the site, and thc site is sod!table for thc projem. currcatly estimated total direct construction and equipment costs including escahtion but exclusive of 2. Thc program for construcriion is realistic and a commercial opmtion date of June I, 197S engineering, consuvcdoa management, and conthgencies. has a reasonable chance of achicvcmen!. However, it vill require a signigcant iinprovement ia thc rate of constriicrion progress 'Ihc two largest cquipmeat cont!ace uvre awarded for thc furnishing of So nuclear steam supply s)stem to General Electri Company m d for the n"bine genera!et! to KVcsringhousc Ehctiic Corporarion. 3. 'Ibe work uithia m scop: of our rcsponsibTihy <<ill be completed withia thc present cost The presert contract prices a:e 544,060,100 and $ 35,074,126. rcspecdrcly. The nuclear stcam supply estimate provided the daic of commercial operarion is noi dehycd si~ntiy beyond Juac I, 1978. Ia the cvcnt iiat this date is sigai5candy exceeded, thc budget <<ill have to be Increased. six!em contract covers thc furnishing of a conventional boiling <<<<ter rex!or, comphte <<iih prcssure vessel and ail rehtcd pumps, controls and other equipment as normally furnished by Ge"-ral Ehctric 4. There arc no major enynecring or construction probkm assoriated with the Project Company to the eieetric uriihy indusuy. The KVcsdnghouse contract conrs thc fora~in! g of a turbhc that requir any uatricd design methods. geacrator complc;c uith aB appurtenances to uuTizc th= output s:eam from the ruelear sieam supply system to generate approximateiy 1,100,000 hlowatts of eicctricity. Dae to thc long cn~wcering aad 5. Thc Pro,'xt is feasible from an cn jinccring aad construcdon standpo', is of accept-fabricadion schedule for these item, they u'ere awarded early ia the project progt~ to meet t" sched sled abh commercial desiga and caa be cxpectcd to operate regably <<itb rema) mrintenanw. piaat construction and operation date 6. The description of the Project aad the statcmeats aad summaries ot our estinates which appear in the 06icfJ Sta!emcnt to which thh report is an cxhbit are correct and in coa-Thc major concrete construction contract for the reactor building, turbine-gen ratoi build- formity <<itis, and a fa'r and adequate presentation of, the infor anon b ths report. ing, diesel-generator buildiag, radioacun waste building and service buildhig was awarded to V'e have revi<<nd tbe Project description and capimi cost estimate Banc aad Crail Coastrucdon Company on hbrch 20, 1973, and thc present contract price is $ 32,749/76, submit:ed by R. 1V. Beck aad Associates ia their report dated hfarch I, 1975, and corZtm that theso The mcchanica! equipmcnt mid piping bstallation oonir ct for the main phut was awarded to a ~ately rcQec! the job! veau:ic, Bone M Crafl Constmction Company Geneml Encry Resources, inc. on I by 10, Project and its cons bsofar as they rehte to th Bems specigcd herrin which are withh ih soope of 1974, and thc present contract price is $ 60,094,374. rcsponsMIT of Bum aad Roc, Irc. AII contracts <<arc a<<<<:ded oa & basis of compcntivc bidd<<mg. The coarct a<<u4 uc. made Very tmly you>, on thc bash of thc bidder's cxperieace, quaLGcatitm, avsihb!c persoaael and fMidcs as <<all as price consideradions. In ou. opiaion, the vendots and conte<ra eche!cd are ail rcspont3sh a"d well quahged fbms for the particular rJpe of <<'o:k to bc performed. K.A. Roa Prcsfdeai ard EscalatIon and Contingencies Chasm of rAe Boarrf As stated previously, the provision for escalation has aow beca distributed ia thc con!true<<on costs as shown ia Exhibit A. Exhibi! B shows those conwacts for v'hich cicahdion proiisions have bccn contractually made aloag <<5th thc amount proc-'ed in tbe budget for those comracts. Ia addition, pro. vision is incladed fn Exhibit A for escalation for cont~ts not as yei awardeL An addirionai atlommcc of $ 26,478Q00 <<m b;hded ia thc estimated capital cos! to corer uaforeseea contiagcacy item <<hich may be nccessa~ as the dctaih of design arc furWr dcn!oped end as construcrion progresses. Conclusions Thc project <<ill include a boiling water reactor of provea dcsiga famished by the Geaeral Eiccuic Company a reactor type already in use ia, under construcdon or planned for maay hrge commercial udiity iasmUations. Thc reiaainder of thc phut is gcnerNy sinufar fn design to convcn tonal thermal ph"ts except for thc special considerations that are rehied m usbg steam from a boiling <<uter reactor, aad the compo" eats dupidcate or arc very s~ to, thorn v:hich arc now ia sucnssbl commcrrial opera- ~~ uon. Vfe have cxambcd the plant eqmpment cs to its feasibTiity, rcUabiuty a" d mrin:enance char Isdcs. iVc deter~ed that the proposed or contemphmd item of eqtdpmert are << "a of prcsengy ptovcn thsfgn or remo&h cxtens:Om of s& &ps. 50 E]iB]BITh KSIEtfATKD PROJKCP COYSIRUC]10]I COST hrr"WdptojMKS]uipmcnt md Coasuucdon Cort.-cts (As of Dccembcr 31, 1974) Co.'tsraucT'oA CosTs Octot>cr, t 974 ttcccmbcr. 't O74 Suwturcs a"-d Improvements 5 63,040,700 5 64,624,500 prcccat Coatract Gwead Rector Plant Etpdpmeat 112,443/00 128,697,900 stem hutSNtor AS>ard Data AoSosSot Tarbo Generator Uaits 101.34$ ,$ 00 108,003,000 Turbine Gcncrator 8 A~sodas ...... Westinghouse 5/ 2/67 S 35,074,]26 Accessory E]ectdcal Et]uipmett . 27,760,700 30,999,900 Nuclear Steam Supply S]Ttem ......... Gcaeral E]ecuic 3/23/71 54,160,]00(l) hdscellanoous Potcur P]aat Equipment.................... ],4S7,500 2,779 900 Cordeatcr and Auxiliadcs ........... Westinghouse I/14/72 3,249,016 Stadoa Et]tdpmcnt 6,037,900 6,643,100 Peedkwter Heaters ................. Southwestern Eag. I/14/72 2,817,842 Temporary Coastrucdoa Feei]iYies ....................... 3,553,000 4,>SS,SM Maa Step.Up Trantfcumets .......... Asa, Inc. 7/14/72 2,020,003 Temporary Facdides ................ Subtos~suucdoa Costs .......:........... 5315,668,810 3343,S29,1M111 BotTc gc Crail 7/24/72 1,56$ ,464 Const. Corp. Gehng Tatters .....,...... ltfarley Corp. 9/22/72 7,259,150 Reactor Bldg. Subsuucture ........., . Orttata Datncr Cosrs Sales Tat 5% ~ ............ Eag]needng am] Miga Coastrucdoa hfanagcmcnt, Site Co"= S 15;]83,500 5 17,291,500 Turbine Rooni lh eat Vcssd .......... ~~r BMg. Cranes S:etratt-Erichtoa PDM Sted Co. Whidug Corp, 10/20/72 10/20/72 3/ 9/73 2,434,1]3 8,496,801 1,040,515 su]rants aad Qua]:y Assurance 54+69,700 S7,818,000 Bovec 8: Crall 3/30/73 32,749+76 Const. Corp. Subtotal . 386,022,000 420,938,610 Standard Cast or Forged Stud Vo]vea... Wdvsxt& Co, 7/13/73 Esedadon 3",59$ ,400 (I) Diesel Ge-"<<rotors ................. Revvatt and Stevenson ],617,266 28,799,400 26,47S,'200 7/13/73 I>254,566 Coadngcacy ~ Nudear Valves Vdan Vdvc Corp. 12/ 3/73 1,418,596 Tom] Esdmatcd Project Consuucdon Cast . 8'474163M SM7456800 Structurd Sled PDM S:ecl Co. 3/12/74 4,119,753 (I] Tbo atra]otic>o Supply Syttcm ~S ttas bccc 4$ 5553buMd Ia ayttc522. du erato to mate it theo 309h tho w~ psttcio potrcr hfch. Quip. Ias>>ladon Bovee 45 Cra]I Coast. Corp4-Gcn. Eaergy Resoua0es lnc. 5/10/74 69,364,374(2) HVAC g. Plumbing Iastd]anon Thc Waldinger Corp. 5/10/74 5,508,695 Btsuumentadon and Conuo] Bo>>s General Electric 6/17/74 I 360.850 E]eetdca] Cable ......... Okoa!tc 7/ 9/74 649,944 E]ecuica] Cable ......... Raychem 7/ 9/74 hf tc UP Water Pump House 2,218,009(3) .. hfchfiUan Bros. 12/27/74 Other Msce]]ament 3,551,869 ~< 28>1> l~ 42-3MMM 420~~ "535 16,127939 .058667

0) ~

(Ii I I 'l>.IMSS> 7 $ ]OI>7CO 45du6ucd $2 53 E'.(IUBIT IV We h.ve ex~cd th. Comdmsos asd statutes of thc State of Wasbfsa~, and certLaed eop!es cf proeeeKngs of the BoM of Dheetors of the S)x:em authorir!ng the Issuance of said Iesds, Including OPTIONS OF COUNSEL thc Bond Reso'.rtion, other proofs re!sting m taa issuance of saM bonds aml as executed ooupos bosd of s-rd seder. In our opisios, thc System is a municipal corporation of thc State cf Washhrgtos, duly created asd [LETTERHEAD OF WOOD DAWSON LOVE 6: SABATQIEj va!My cxht!"g; thc Bond Resolution has bus duly adopted asd thc pmvhoss thereof arc vaM bin&g upos the System, end saiC 'bonds have bees duly authorise and issred is mMasec <<!th thc ~ P.EITERHEAD OF HOUGHTON CLUCK COUGHLD( fe RILEY) CossEitudos and sts'.utes cf the Sts:e of Washhrgton ard cossututc valid aA IegJly b!sdisg ob>Jgsdons of the System payah!c so':!y from the funds tmd raven es as set fosh asd pmvidal is thc Bond Reso!udos os a paity <<fth thc System's presently outstanding Wmaasgtos Pubhc Po<<vr Supply System NuJesr Project No.2 Revenue Bonds, Sedcs 1973, Series 197C and Series 1974 A, and any bonds heres! ter Its& os a psi:y t em<<5th pursuant to the Bond Ress!utios. ..., 1975 It is also our opt "ros that t"a interest os said bonds is exempt from taxatios by taa: Us!M Sass Boa< of Directors of A-erha usa r exiting la<<w and regulat!ass ""d spec!go ~rr gs issaA by the Istaa~J Revenue Washington Pubgc Po<<er Supply S)v:em SaVu <<5th rcspcct to sshI bo" ds, daM Novcmb:r 18, 1970, a" d November 30, 1972. Rtc~dssd, Wasaasgtos Dmr Sirs: WASHDiGTON PUBLIC POINTER SUPPLY SYSIEhf NUCLEAR PROJECI'NO. 2 REVENUE BONDS> SERIES 1975 A, $ 125>000>000 At Juor retires!. <<c have cxamin>M in:o thc suMty o! $ 125.000,000 Washhrg.os PuM!c Porrer Supply System Nuclear Project No. 2 Revenue Bonds, Series 1975 A, ot Wes<<Jngtos P"bR Pov>'er Supply S)mem (thc "S)x:em"), a municipal corporation of the S'tate of IVash'ngtos. Said beads am issuable is coupon form, registrab!e as to pdseipsI cmly, is thc denomination of $ 5,000 each, asd is fully regis:ered form, <<dthout coupons, is the demrwaatioss of $ 5,000 or r u!tip!os thercoL Thc coupon bonds are numbered from I up<<uW and arc dated hfareh I, 1975. The fu>Jy reghtcred bonds arc numbeel from R-I upwards and, except fully regis:ared bonds isiiia!iy issued, <<Meh arc dated hfarch I, 1975, shall be dated so t"at so ga!s or loss of interest shsQ ress!t from exch""ges or transfers the~f as prorMed there!s and is thc Bond Rescinder hem~ter menurmerL Said bonds mar~ on July I is each of thc pars asd Is thc amounts a"d bear istemst, payab!o Ju!y I, 1975, aud semi-aausL> y ta rgtterosJanu I&Jul y l,asfo!!owst tarriest let>tart Year Araaeat Rara Year Arr>oaat Rara Md bor4 src subu to redemption prior to matvrity upon thc terms snd eosdidons set forth there!s, asd recite that dray are issued under asd pursuant to R~Iuthrs No. 640, adop:ed by taa: Board of Directors of thc System os thc 26th dsy of Junc, 1973, and a resolu Jos supplemental thereto, Reso!utica No....., adopted by said Board os ......., 1975 (here!rafter referred to colleedvely as the "Bond Resoiudios"). and urdar the authority of asd is full eosrplia."m vdth th- Constitution asd statum of thc Sta:c of Washing!on, Including Tides 43 md 5C of thc Revis< Code of KVashiagtos, for the purpose of aetiui~sg. by purchase or condemn t!on, and eonsnuetisg s sr Cea eleesic gererau" 5 p!art asd msoeiated f~r'des as a sepctmm utiii:y s)stem constituting asd to b. Imo<<n as tim Washingms PubEc Po<<ur Supply System Nu Jeer Projem No. > 55 [LEITERIIEAD OF WOOD DAWSON LOVE P SABATLx(E[ [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