1NWHA Portland, Oregon 2-17-16 Mid-License Crisis or Crusin’

PSG

WRG

KTN

3 City Area StatisticsPopulation 19,000 Annual Average Load 32 aMWSystem peak (2012) 48 MWHydro Capacity 68 MW

Very High Percentage Renewable 95% to 99%

SEAPA is a municipality member- board governed, Non-Profit ,wholesale provider of energy at 6.8₵/kWh

SEAPA Swan Lake License Amendment

SEAPA - Why we amended our Swan Lake License

2NWHA Portland, Oregon 2-17-16 Mid-License Crisis or Crusin’

Improves existing system over-all efficiency as Swan and Tyee dispatch last and are operated as seasonal reservoirs

Will improve efficiency on the future system that may include new renewable projects that have limited storage (run-river, tidal, wind)

Since SEAPA is both the real-time balancing entity, and the primary energy provider, this project was much easier to identify and will be automatically incorporated into the dispatch plan

3

SEAPA SWL Amendment– What is Dispatching Last?

KPU and PMPL Hydro just over 10 MW flat for the day

In the winter, dry cold weather decreases KPU and PMPL hydro and loads increase…Storage really matters

Swan Lake Amendment- Pictorial Value of Storage

4

Gulf of Alaska drainages are volatile, storage mitigates this common dilemma. This is a one day change with inflow from Lost Creek above Swan Lake, also the difficulty of doing surveys in a very wet climate

5

Swan Lake Amendment-Schedule and Process

Amendment Process & schedule

2011- SSEAPA Evaluation of Options post IRP

2012- Studies-Engineering Feasibility , Consultation, Environmental field work, more Consultation

2013- Agency Consultations, ICD,consultationGo-NO GO____________________2014- First Delay- Rewrite Studies into TNF Report Format for PDEA instead of Draft EA- Submitted application for license amendment July, 2014

2015- Second Delay- Strong Intervention on best public benefit- FERC had an equally strong Response “We Disagree” Amended License received August 2015

Construction June to Oct 2016

6

Swan Lake Amendment-What are you going to change?

60% SEAPA funded with Bond Issue, no increase to Wholesale Power Rate

7NWHA Portland, Oregon 2-17-16 Mid-License Crisis or Crusin’

Swan Lake License Expires in 2030

Tyee Lake License Expires in 2031

SEAPA Long Term Power sales Agreement expires in 2034

Too much will be loaded onto a small organization in too short a time period…we can’t cruise, The killer whale of permitting is out there…………. always

The Big Picture

8

Future Permit Process-The Forest Service is updating their Plan

The current plan has a lot of detail concerning communications, and logging, and recreation; but there isn’t much concerning renewable energy or hydropower. Long term this should be addressed with a policy review, we’ve been talking about this and commenting for two years-……patience- proposed a renewable over-lay

We’ve also embraced the TNF niche program by taking over cabins that fell out of ……..the niche

On-Going Hydro Site Investigations-Can you Permit?

Swan Lake Reservoir Expansion

10NWHA Portland, Oregon 2-17-16 Mid-License Crisis or Crusin’

Questions

Schedule

2012 2013 2014 2015 2016Compile findings Draft ICD submit final Get AmendedNov Meeting File ICD (Feb) amendment LicenseDraft ICD 60 day Mtg finish Design

(April)Comments(30 days) Write construction Bid

Start Civil Eng. Contract Constructionnew study Planswritten

New study plansaccepted

conduct follow-up Start studies Construction

Tabulate all studiesWrite amendmentDesign Eng. 70% complete FinishStart FERC Dam Safety Construction4e settlement/negotiation

May be a design-Build Contract

Go!—No Go

12Board of Directors Meeting 9-19-12 Petersburg, Alaska

Swan Lake Reservoir Expansion