October 2, 2017 **Monday**

Transcription

1 SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING Everett Headquarters Building, 2320 California Street October 2, 2017 **Monday** CONVENE REGULAR MEETING - 9:00 a.m. - Commission Meeting Room 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media 2. Other B. Overview of Federal Action on Energy Policy C Integrated Resource Plan (IRP) Update D. Beverly Park Substation Contract History and Project Update RECONVENE REGULAR MEETING - 1:30 p.m. - Commission Meeting Room 2. RECOGNITION/DECLARATIONS A. Employee of the Month for October Steve Freimark 3. COMMENTS FROM THE PUBLIC 4. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of September 19, 2017 B. Bid Awards, Professional Services Contracts and Amendments C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers 5. PUBLIC HEARING A. Open the 2018 Proposed Budget Hearing 6. COMMISSION BUSINESS A. Commission Reports 7. GOVERNANCE PLANNING A. Governance Planning Calendar ADJOURNMENT October 4, 2017 October 6, 2017: Public Power Council (PPC)/Pacific Northwest Utilities Conference Committee (PNUCC) Meetings (Sheraton Inn/Portland Airport - Portland, Oregon) The next scheduled regular meeting is October 17, 2017 Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1 web page at The public is invited to attend. Parking and meeting rooms are accessible for persons with disabilities. Contact the Commission Office at for special accommodations or additional information. 1/252

2 BUSINESS OF THE COMMISSION Meeting Date: October 2, 2017 Agenda Item: 1 TITLE: CEO/General Manager Briefing and Study Session SUBMITTED FOR: Briefing and Study Session CEO/General Manager Craig Collar 8473 Department Contact Extension Date of Previous Briefing: N/A Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Executive Limitations, EL-9, Communications and Support to the Board the CEO/General Manager shall...marshal for the board as many...points of view, issues and options as needed for fully informed Board choices. List Attachments: CEO/General Manager Briefing and Study Session attachments 2/252

3 OVERVIEW OF FEDERAL ACTION ON ENERGY POLICY October 2, /252

4 2 Driving the Federal Agenda Funding the federal government Several major reauthorizations Federal Aviation Administration (March 2018) National Flood Insurance Program (March 2018) Debt Ceiling Disaster Recovery Hurricanes in the East Fires in the West Filling Federal Agencies Nominations slow to come from White House, Senate slowed by partisan politics Healthcare Reform Tax Reform 4/252

5 3 Administration The new dialogue: No longer greenhouse gases, now pollution Department of Energy Study of the Current Power System Infrastructure and Security Environmental Protection Agency Focused on Untangling Litigation and Regulations from Obama Administration including the Clean Power Plan Federal Energy Regulatory Commission New Commission, New Opportunities 5/252

6 4 Congress, an overview on Energy Policies Senate Bill House Bills Leadership in Our Region on Issues that Matter to Us 6/252

7 5 Senate S 1460, the Energy and Natural Resources Act of 2017 Passed the Senate and was being negotiated with the House during the last Congress; Chairwoman Murkowski and Ranking Member Cantwell pushed an updated version through the Committee in June 7/252

8 6 House The House Energy and Commerce Committee has passed several bills, including: H.R. 3043, Hydropower Policy Modernization Act of 2017 (Sponsored by Congresswoman Cathy McMorris Rodgers (R WA)) H.R. 2880, Promoting Closed Loop Pumped Storage Hydropower Act (Sponsored by Morgan Griffith (R VA)) H.R. 2883, Promoting Cross Border Energy Infrastructure Act, (Sponsored by. Markwayne Mullin (R OK) and Gene Green (D TX)) H.R. 2910, Promoting Interagency Coordination for Review of Natural Gas Pipelines Act (sponsored by Rep. Bill Flores (R TX)) 8/252

9 7 What to Expect in 2018 Heightened Campaign Rhetoric Likely priorities for the Senate: Tax Reform (unless taken care of this year) An Energy Bill Disaster Recovery Relief including funding assistance and changes to federal laws and actions Legislative package developed to assist in building new and repairing Infrastructure Focus on international relations including: North Korea, Venezuela, Paris Climate Agreement potential healthcare reform bill? Likely Priorities for the House: Fiscal Policy including budget, debt ceiling Legislative package developed to assist in building new and repairing Infrastructure Disaster Recovery Relief including funding assistance and changes to federal laws and actions 9/252

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13 2017 IRP Update Proposed Long Term Resource Strategy Proposed Conservation + 10 Year Potential Estimate /2019 Conservation Target Proposed Action Plan Commission Briefing September 25, 2017 Pre Decisional & Informational Discussion 13/252

14 Agenda 1. Background & Review of 2017 IRP Scenarios & Planning Assumptions Demand Side & Supply Side Resources Resource Need after New Conservation 2. Portfolio Results by Scenario 3. Lessons Learned & Other Considerations 4. Proposed Long Term Resource Strategy 5. Proposed Conservation 10 Year Potential Estimate Biennial Target 6. Proposed Action Plan 7. Next Steps Snohomish PUD 2017 Integrated Resource Plan 2 14/252

15 Background Snohomish PUD 2017 Integrated Resource Plan 3 15/252

16 Summary of State IRP Requirements analysis describing the mix of generating resources and conservation and efficiency resources that will meet current and projected needs at the lowest reasonable cost and risk to the utility and its ratepayers General Requirements (Revised Code of Washington ) Evaluate a range of load forecasts. Assess commercially available conservation and renewable resources. Evaluate renewables, non renewables and conservation using lowest reasonable cost criterion. Assess how plan will address renewable integration and overgeneration events. Integrate into a long range assessment and describe the mix of supply side resources and demand side conservation resources that will meet current and projected needs. Detail a short term action plan. Perform a utility specific conservation analysis every two years to establish biennial target. Develop a comprehensive IRP every four years; progress report or update every two years. Snohomish PUD 2017 Integrated Resource Plan 4 16/252

17 Goal of IRP Effort To identify the least cost mix of demand side and supply side resources to meet the District s forecasted capacity and energy needs over the long term planning horizon, while satisfying established planning standards, where least cost covers multiple considerations. Regulatory Considerations Reliability Environmental Impacts Rate Impacts Least Cost Public Policy Other Risks Revenue Requirement Snohomish PUD 2017 Integrated Resource Plan 5 17/252

18 District s IRP History The District s 2010 IRP was adopted by the Board in August Staff performed a mid term update to the 2010 IRP, which informed the setting of the District s 2012 and 2013 conservation targets to meet Initiative 937 requirements. This update was adopted by the Board in December The 2013 IRP was adopted by the Board in November The 2015 Update to the 2013 IRP was a mid term update, and revised key factors such as load growth rates, market prices, avoided costs and conservation potential. The 2015 Update was adopted in October The Board had its first briefing on the 2017 IRP effort on February 21, 2017, with subsequent updates on June 13 and August 22, Snohomish PUD 2017 Integrated Resource Plan 6 18/252

19 2017 IRP Process IRP Inputs IRP Study Period IRP Outputs Create scenarios, load, price, carbon, resource forecasts Establish Biennial Conservation Targets Establish Avoided Costs for Conservation Test Portfolio Resiliency Establish Planning Standards Develop New Supply Curves from Conservation Potential Assessment Integrate Renewable, Non renewable & Conservation Resources Elect Renewables Compliance Method Identify Least Cost Portfolios Develop Portfolios Long Term Resource Strategy Reference Document Short Term Action Plan 7 19/252

20 Scenarios & Planning Assumptions Snohomish PUD 2017 Integrated Resource Plan 8 20/252

21 2017 IRP Scenarios IRP Study Period Business as Usual (BAU) Load Growth at 1.1% Gas $3.00 to $6.64/MMBtu No Carbon Costs BAU w/california Carbon 2022 Load Growth 1.1% Gas $3.00 o $6.64/MMBtu CA Carbon $14 to $60/ton BAU w/no with No Carbon BAU with CA Carbon 2022 Sensitivities Sensitivities to BAU Case Varied element within BAU Case to answer certain questions and/or test portfolio resiliency Low Load Growth Case Load Growth at.5% Gas $2.99 to $5.80/MMBtu Low Societal Cost of Carbon (Low SCC), $12 to $30/ton Low Growth Case High Growth Case High Load Growth Case Load Growth at 2.3% Gas $3.21 to $10.56/MMBtu Mid High Societal Cost of Carbon (Mid SCC), $42 to $90/ton Snohomish PUD 2017 Integrated Resource Plan 9 21/252

22 Scenario Assumptions: Load Forecasts 1,300 1, IRP Load Forecasts before New Conservation Average Annual Growth Rates Low Growth Case: 0.5% Business as Usual: 1.1% High Growth Case: 2.3% 1,100 amw 1, BAU Case High Case Low Case Climate Change: 3 degrees 2015 Update 2013 IRP Snohomish PUD 2017 Integrated Resource Plan 10 22/252

23 Scenario Assumptions: Natural Gas & Carbon $16 Forecast Natural Gas Prices $100 Forecast Carbon Costs $14 $90 $80 $12 $10 High Growth Case $70 $60 High Growth Case $/MMBtu $8 $6 Business as Usual (BAU) $/ton $50 $40 BAU w/ca Carbon $30 $4 Low Growth Case $20 Low Growth Case $2 $10 $0 $0 BAU w/no Carbon Snohomish PUD 2017 Integrated Resource Plan 11 23/252

24 Scenario Assumptions: Market Price Forecast Forecast Mid Columbia Market Price (Flat Price) $180 $160 High Case w/mid High SCC $/MWh $140 $120 $100 $80 $60 $40 $20 $0 BAU w/ca Carbon Low Case w/low SCC BAU w/no Carbon Snohomish PUD 2017 Integrated Resource Plan 12 24/252

25 IRP Guiding Principles Pursue all cost effective conservation. For load growth not met by conservation, pursue renewable resources. Under the Board s Climate Change Policy, there is the ability to consider a diversity in resource options that provide the optimum balance of environmental and economic elements. Comply with Board policies and all applicable policies, regulations, state laws. Preserve PUD flexibility /252

26 2017 IRP Planning Standards Annual Load/Resource Balance (LRB) at expected levels, or P50 metric Winter Monthly On Peak (Energy) December On Peak LRB at P5 metric with no more than 100 amw on peak forecast market purchases Winter Peak Week (On Peak Capacity) December Peak Week LRB at P5 metric with no more than 200 amw on peak forecast market purchases Regulatory Energy Independence Act (Initiative 937) Board s Climate Change Policy Snohomish PUD 2017 Integrated Resource Plan 14 26/252

27 Renewables Compliance with EIA (I 937) Modeling Assumptions: Assume no change to the renewables target of 15% of District s total retail load over the study period (2020 through 2037). The Energy Independence Act (EIA) annual renewables target can be met by purchasing Renewable Energy Credits (RECs), eligible renewable resources or a combination of the two. IRP modeled REC prices based on cost to build a REC Generator where: REC Price = Levelized Cost of Wind Levelized Cost of Energy ~$43/REC in 2018 to $53/REC in 2037 REC cost assumption modeled is conservative compared to today s near term REC market price, but considers the reduced availability of RECs across the 20 year IRP study period with increasing renewable portfolio standard requirements. Snohomish PUD 2017 Integrated Resource Plan 15 27/252

28 Portfolio Modeling Process Establish Planning Standards Annual energy Winter On Peak Peak Week Regulatory (I 937) Establish Parameters for Procuring Unbundled RECs Same Process Followed for Sensitivities No Snake River Dams Optimize Portfolios by Scenario Select from Demand & Supply side Resource options Assumes 10 yr Conservation Ramp Derives optimal combination of new resource additions within modeling constraints and satisfies Planning Standards Climate Change Green Premium (No Fossil) Generate Lowest Cost Portfolio by Scenario Net Portfolio Cost (NPV) Incremental Emissions 10 Yr Conservation Potential Snohomish PUD 2017 Integrated Resource Plan 16 28/252

29 Demand Side & Supply Side Resource Options Snohomish PUD 2017 Integrated Resource Plan 17 29/252

30 Conservation Potential Assessment (CPA) The CADMUS Group conducted the District s 2017 CPA, informed by preliminary regional 2016 Residential Building Stock Assessment (RBSA) data. A conservation supply curve was created by grouping measures into bundles by cost. The CADMUS Group also performed a preliminary oversampling in the PUD s service area of certain 2016 RBSA measures and values. Completed analysis expected Spring CPA results informed by a District specific oversampling of 2016 RBSA: Slightly less annual conservation potential available over the 20 year study period. Slightly larger contribution of conservation to winter on peak period, depending on scenario. Portfolios selected to meet need from the bundles on the conservation supply curve to fill either a winter and/or an annual load resource balance deficit /252

31 20 Year Conservation Potential Supply Curve 350 Comparison of Annual vs Winter On Peak 2018 through 2037 (in amw) Annual Dec HLH amw <$45 <$55 <$65 <$75 <$85 <$100 <$120 >$120 Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 * The 2017 CADMUS study indicates the District s ratio of annual conservation to winter capacity contribution varies slightly by scenario, but is approximately 1:1.3. Snohomish PUD 2017 Integrated Resource Plan 19 31/252

32 Demand Response (DR) Potential Demand Response (DR) Program* Cumulative DR Potential through Dec 2037 December Peak Week (in amw) 20 Year Program Net Present Value (NPV)** $ per Peak MW (in $/MW Year) Smart Thermostats 12.8 $16,221,880 $148,347 Commercial/Industrial Controls 6.3 $12,025,108 $179,086 Thermostats & Water Heaters 83.3 $153,938,733 $216,233 Water Heaters (<80 gallons) 78.4 $249,071,654 $371,788 Smart Water Heaters (>80 gallons) 34.3 $152,309,616 $728,778 * DR programs listed above are limited in the number of times they can be requested, with the exception of Smart Water Heaters, available year round. ** NPV costs for the DR Potential assumes AMI is not used in the implementation of the DR program or measure. SOURCE: Data provided from 2017 DR Potential study for Snohomish PUD conducted by The CADMUS Group, Inc. Snohomish PUD 2017 Integrated Resource Plan 20 32/252

33 List & Cost of Resource Options Resource Nameplate (MW) Levelized Cost Levelized Cost ($/MWh) Peak Week Capacity ($/MW) Simple Cycle Combustion Turbine (SCCT) 239 $ 137 $ 118, MW Short Term Capacity Contract (5 year) 25 $ 155 $ 129,496 DR Direct Load Control Smart Stat 20.5 $ 1,854 $ 148,347 Dual Fuel Reciprocating Engine 50 $ 199 $ 170,841 DR C&I Curtailment 0.1 $ 2,239 $ 179,086 DR Direct Load Control Air & H20 Heat 0.8 $ 2,703 $ 216,233 Pumped Storage Hydro Low 100 $ 248 $ 286,148 DR Direct Load Control H20 Heat 0.7 $ 4,647 $ 371,788 Pumped Storage Hydro High 100 $ 330 $ 381,559 Landfill Gas 10 $ 75 $ 545,327 Biomass 15 $ 91 $ 572,799 Geothermal (traditional) 25 $ 87 $ 578,937 DR Smart H20 & Heat 34.3 N/A $ 728,778 Energy Storage Battery 25 $ 373 $ 764,313 Long Distance Wind (Montana) 50 $ 69 $ 881,933 Run of River Hydro (small hydro) 30 $ 113 $ 2,451,503 WA/OR Wind* 50 $ 77 $ 6,685,044 Lower Cost Utility Scale Solar (E Wash) 25 $ 94 $ 8,229,719 Customer Owned DG 15 $ 125 $ 8,304,656 Utility Scale Solar (U/S Solar E Wash) 25 $ 97 $ 13,912,590 Utility Scale Solar (U/S Solar W Wash) 5 $ 182 $ 39,824,048 * Repowered wind projects (replacement and upgrade of turbines after useful life) at an existing wind project were not evaluated in the 2017 IRP. ** The federal investment tax credit (ITC) or production tax incentive (PTC) is set to expire in Renewable resource costs assume tax credit is not continued. 21 Snohomish PUD 2017 Integrated Resource Plan 33/252

34 Resource Need after New Conservation Snohomish PUD 2017 Integrated Resource Plan 22 34/252

35 Annual Position after New Conservation vs District s Existing/Committed Resources 1, Energy Need for High Growth Case after New Cumulative Conservation 1, amw BPA Block BPA Slice Jackson Hydro Wind Contracts Packwood PUD Owned Hydro Customer Owned Generation (Hampton, Qualco) BAU Load After Conservation Low Load After Conservation High Load After Conservation Snohomish PUD 2017 Integrated Resource Plan 23 35/252

36 December On Peak Position after New Conservation vs Existing/Committed Resources 1,600 1,400 Varying Amounts of Capacity Needed to serve Winter Peak during period 1,200 1,000 amw BPA Block BPA Slice Jackson Hydro Wind Contracts Packwood PUD Owned Hydro Customer Owned Generation (Hampton, Qualco) Forecast Short Term Mkt Purchases BAU Load After Conservation Low Load After Conservation High Load After Conservation Snohomish PUD 2017 Integrated Resource Plan 24 36/252

37 Portfolios New Resources Additions 800 Portfolio Results by Scenario Snohomish PUD 2017 Integrated Resource Plan 25 37/252

38 Business as Usual Case With & Without Carbon amw BAU No Carbon New Portfolio Additions December On Peak amw BAU w/ca Carbon New Portfolio Additions December On Peak Conservation Short Term Capacity Contract Simple Cycle Combustion Turbine Total Portfolio Net Present Value $ 702,088, Year Potential (amw) 20 Year Potential (amw) New Annual Conservation New December HLH Year Total Total Added Portfolio Emissions (Metric Tons of CO2) 1,648,107 Conservation DR DLC Smart Stat DR C&I Curtail U/S Solar 1 (W WA) U/S Solar 1 (W WA) Dual Fuel Reciprocating Engine 1 Dual Fuel Reciprocating Engine 2 Portfolio Net Present Value $481,360, Year Potential (amw) 20 Year Potential (amw) New Annual Conservation New December HLH Conservation Year Total Total Added Portfolio Emissions (Metric Tons of CO2) 305, Snohomish PUD 2017 Integrated Resource Plan 38/252

39 Low Case w/low Societal Cost of Carbon High Case w/mid High Societal Cost of Carbon amw Low Case New Portfolio Additions December On Peak Conservation Short Term Capacity Product C&I Curtail Portfolio Net Present Value $ 317,088, Year Potential (amw) 20 Year Potential (amw) New Annual Conservation New December HLH Conservation Total Added Portfolio Emissions (Metric Tons of CO2) 10,965 Snohomish PUD 2017 Integrated Resource Plan amw High Load New Portfolio Additions December On Peak Conservation DLC Smart Stat DLC Air & H20 Heat C&I Curtail BioMass 1 BioMass 2 WA Wind 50% Simple Cycle Combustion Engine Simple Cycle Combustion Engine Dual Fuel Reciprocating Engine Total Portfolio Net Present Value $1,368,599, Year Potential (amw) 20 Year Potential (amw) New Annual Conservation New December HLH Conservation Year Total Total Added Portfolio Emissions (Metric Tons of CO2) 6,140, /252

40 20 Year Incremental Emissions by Source Scenarios Renewable Resources Resources Assumed to be Fueled by Market Purchases Fossil Fueled Resources Total Incremental Portfolio Emissions % fueled by Renewables % fueled by Mkt Purchases or Fossil Fuel Resources Low Case w/low Carbon 10,965 10,965 0% 100% Climate Change w/low Carbon 21, , ,929 0% 100% BAU w/calif Carbon 0 305, ,528 0% 100% BAU w/calif Carbon & No Fossil 2,847,295 2,847, % 0% BAU w/no Carbon 10,965 1,637,143 1,648,107 0% 100% BAU w/no Carbon & No Fossil 1,587, ,720 1,781,405 89% 11% High Case w/mid High Carbon 4,413,191 1,727,100 6,140,291 72% 28% High Case w/mid High Carbon & No Fossil 3,465, ,162 3,796,962 91% 9% Snohomish PUD 2017 Integrated Resource Plan 28 40/252

41 Portfolio Modeling Process Testing for Value of Accelerated Conservation Same Planning Standards Annual energy Winter On Peak Peak Week Regulatory Same Parameters for Unbundled REC Procurement NPV Results not materially significant (except for Low & High Cases) Low Case w/low Carbon 20% NPV Optimize Portfolios by Scenario Select from Demand & Supply side Resource options Assume 7 yr Conservation Ramp Derives optimal combination of new resource additions within modeling constraints BAU w/no Carbon BAU w/ca Carbon.8% NPV 2.1% NPV Forecast Market Prices Generate Lowest Cost Portfolio by Scenario Net Portfolio Cost (NPV) Incremental Emissions 10 Yr Conservation Potential unchanged No change in new planned resource additions High Case w/mid High Carbon Not tested: Green Premium (BAU w/no Fossil) No Snake Dams Sensitivity 7.8% NPV Snohomish PUD 2017 Integrated Resource Plan 29 41/252

42 Lessons Learned & Other Considerations Snohomish PUD 2017 Integrated Resource Plan 30 42/252

43 Lessons Learned 1. Resource Need Conservation continues to provide significant value to District. No energy need after new conservation acquisitions except in High Load Growth Case. Winter capacity need after new conservation drives planned resource additions. 2. Portfolio Development Dispatchable resources that provide capacity were best fit and least cost in all portfolios. Excluding fossil fuel resources increased portfolio costs by selecting different supply side resources and affected portfolio emissions. 3. Carbon Policy Timing and scale of carbon costs impacted amount of conservation and net portfolio costs. 4. EIA Renewables Compliance (I 937) Portfolios predominantly selected unbundled RECs except for energy need in High Case. Compliance costs represented high percentage of total portfolio cost, irrespective of REC price. Snohomish PUD 2017 Integrated Resource Plan 31 43/252

44 Other Considerations 1. Carbon Policy Uncertainty As modeled, higher carbon price = higher value from surplus energy sales Higher carbon price = More expensive supply side resources resulting from treatment of resource additions with varying asset lives (end effects) These modeling assumptions make portfolios sensitive to carbon policy price 2. Climate Change uncertainty Regional utilities considering merits/challenges of Climate Change on loads and resources District using 3 degree Climate Change load forecast for its financial planning IRP analysis noted changes to future peak needs and shape of output from existing resources BPA s climate change analysis expected in November 2017 Snohomish PUD 2017 Integrated Resource Plan 32 44/252

45 1. Carbon Policy Uncertainty Timing and scale of carbon pricing impacts amount of conservation and net portfolio costs. $221 million lower NPV between the BAU w/california Carbon and BAU w/no Carbon portfolios: Higher carbon prices reduce portfolio costs as modeled; Value in low emitting resources. Difference in treatment of surplus market sales and new resource additions. Unlikely State carbon policy and implementation will occur in next two years. More unlikely a Mid High level of carbon would occur in next two years. Snohomish PUD 2017 Integrated Resource Plan $/ton $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $ IRP Range of Forecast Carbon Costs High Case with Mid High Societal Cost of Carbon BAU w/california Carbon in 2022 Low Case with Low Societal Cost of Carbon BAU w/no Carbon (Current $.32/MWh) NWPCC CA Cap & Trade SCC Low Aug16 SCC Mid Aug /252

46 2. Climate Change Uncertainty Climate Change sensitivity modeled loads and resources* under Climate Change 3 degrees: Reduced District s annual energy need Reduced District s winter need (less load and more hydro) Emerging summer need (more load and less hydro) Resource needs different under the Climate Change scenario. $112 M reduction in NPV between the Climate Change and the BAU cases with no carbon policy. The Climate Change future decreases portfolio costs through reduced resource need. Climate Change 3 degrees load forecast is currently being used for PUD financial planning as well as BPA power contract for FY2018. Other regional utilities including BPA are studying the impacts of Climate Change. *Climate Change modeling of loads and resources informed by the University of Washington s Climate Impact Group, BPA studies and internal estimates. Snohomish PUD 2017 Integrated Resource Plan 34 46/252

47 Climate Change Uncertainty (continued) Forecast Impacts of Climate Change on Monthly On Peak Position With Existing/Committed Resources Net On Peak Position at P5 (in amw) (100.0) (200.0) (300.0) Increasing summer demand with reduced hydro supply from expected declines to seasonal snowpack Increasing hydro production from increased precipitation, less snow, more moderate winter demand (400.0) June July August September October November December January February March April May HLH 2037 HLH Snohomish PUD 2017 Integrated Resource Plan 35 47/252

48 Developing the Long Term Resource Strategy Snohomish PUD 2017 Integrated Resource Plan 36 48/252

49 Process to Develop Long Term Resource Strategy 1. Climate Change affects the District s load and resource balance o IRP sensitivity identified that projected changes to load and hydro production will alter future portfolio needs: Emerging summer need appears as hydro production dwindles in summer from reduced snowpack. Winter peak needs decline as hydro production projected to increase with more precipitation and warmer temps. 2. Carbon policy uncertainty has biggest impact on portfolio costs o Structure, start date and level of cost of a future carbon policy is not known. o Evaluating a range of policy paths provides a deeper understanding of an ideal long term strategy before a policy is known. o Identifying which portfolio components are similar and different under different carbon policies. 3. Determine optimal conservation bundle o Conservation acquisition determines optimal combination of unbundled RECs and supply side resources to satisfy planning standards and meet portfolio needs. Snohomish PUD 2017 Integrated Resource Plan 37 49/252

50 Conservation Potential Bundles 350 Comparison of Annual vs Winter On Peak 2018 through 2037 (in amw) Annual Dec HLH amw <$45 <$55 <$65 <$75 <$85 <$100 <$120 >$120 Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 Snohomish PUD 2017 Integrated Resource Plan 38 50/252

51 Generate Portfolio NPV s by Conservation Bundle Across Carbon Policies* Climate Change (No Carbon or Current Law at $.32 avg) Climate Change (Low Societal Cost of Carbon, at $20.48 avg) Climate Change (Calif Carbon at $33.62 avg ) Average Net Portfolio Cost (NPV) Bundle 3 (<$65) Bundle 4 (<$75) $ 590,125,771 Bundle 5 (<$85) Bundle 6 (<$100) $ 386,587,749 Bundle 7 (<$120) * The Mid High Carbon cost policy at $65.00 avg was not included in this comparison as it is not considered plausible based on current expectations. Snohomish PUD 2017 Integrated Resource Plan 39 51/252

52 Portfolio NPV s by Conservation Bundle Across Carbon Policies Climate Change (No Carbon or Current Law at $.32 avg) Climate Change (Low Societal Cost of Carbon, at $20.48 avg) Climate Change (Calif Carbon at $33.62 avg) Average Net Portfolio Cost (NPV) Bundle 3 (<$65) $ 651,874,662 $ 599,653,298 $ 520,697,514 $ 590,741,825 Bundle 4 (<$75) $ 590,125,771 $ 555,317,896 $ 440,208,186 $ 528,550,618 Bundle 5 (<$85) $ 645,018,336 $ 556,180,095 $ 463,028,592 $ 554,742,341 Bundle 6 (<$100) $ 653,354,271 $ 572,717,472 $ 386,587,749 $ 537,553,164 Bundle 7 (<$120) $ 734,315,617 $ 663,563,872 $ 472,996,255 $ 623,625,248 Snohomish PUD 2017 Integrated Resource Plan 40 52/252

53 Development of Long Term Resource Strategy Selected Load Resource Balance that reflects Climate Change. Determine cost effective conservation bundle across range of carbon policies (Bundle 4). BAU: $0.32 Low: $20.48 CA: $33.62 Apply a carbon policy to arrive at portfolio containing Long Term Resource Strategy Components. 20 Year Average Carbon Prices Snohomish PUD 2017 Integrated Resource Plan 41 53/252

54 Proposed Long Term Resource Strategy Climate Change w/low Societal Carbon Cost Dec On Peak New Portfolio Additions Climate Change Portfolio with Low SCC Carbon Policy Total Portfolio Net Present Value $ 555,317,896 amw Year Potential Estimate (in amw) 20 Year Potential Estimate (in amw) Conservation 50MW Short Term Capacity Contract 50% Simple Cycle Combustion Turbine Customer DG New Annual Conservation New December HLH Conservation Total Added Portfolio Emissions (Metric Tons of CO2) 20 Year Total 785,929 Snohomish PUD 2017 Integrated Resource Plan 42 54/252

55 Proposed Long Term Resource Strategy 1. Carbon Assumption o Low Societal Carbon Cost policy begins in New Conservation 1 st year add is 2018 o Annual: 87 amw by 2027, 107 amw by 2037 o Winter: 112 amw by 2027, 137 amw by Capacity 1 st Year Add is 2018 o 50MW Short Term Bridge Capacity Contract in 2018 (through 2022) o 50% Single Cycle Combustion Turbine (116MW) in EIA Renewables Compliance (I 937) o Combination of unbundled RECs and Distributed Generation (DG), where aids in overall REC strategy Snohomish PUD 2017 Integrated Resource Plan 43 55/252

56 Benefits of Proposed Resource Strategy 1. Most reflective of District s current, near and mid term load expectations. 2. Optimal conservation across all plausible carbon policies on average, allows District to pivot to the carbon policy may be enacted MW short term capacity contract to address period reduces exposure to short term market price volatility and deliverability risk during winter period. 4. Preserves flexibility to alter the course in next IRP cycle (2019): Timing and quantity of resource acquisitions and/or development can be adjusted based on changes in actual load and conservation achievements. Provides time to explore dispatchable capacity resource options, including BPA products. Not binding on future 2019 IRP analysis /252

57 New Conservation + 10 year Conservation Potential Estimate + Proposed 2018/2019 Biennial Target Snohomish PUD 2017 Integrated Resource Plan 45 57/252

58 10 Year Conservation Potential Estimate The 2017 IRP analysis used an integrated portfolio approach over a range of futures to determine the 10 year economic and achievable potential: 2017 IRP Scenario Low Growth Case w/low Carbon BAU w/no Carbon Case Climate Change Case w/low Societal Cost of Carbon BAU w/california Carbon 2022 Case High Growth Case w/mid High Societal Cost of Carbon 10 Year Economic & Achievable Potential 97 amw or 849,720 MWh 73 amw or 639,480 MWh 87 amw or 760,870 MWh 114 amw or 998,640 MWh 114 amw or 998,640 MWh Snohomish PUD 2017 Integrated Resource Plan 46 58/252

59 Factors to Consider: Planning to Implementation 1. IRP analysis identifies conservation as a resource that continues to bring significant benefits to the District. 2. Claimable savings continue to decline as efficient end use technologies gain greater market penetration, and challenges cost effectiveness. 3. Conservation program re design is required to achieve predictable and reliable capacity savings. Snohomish PUD 2017 Integrated Resource Plan 47 59/252

60 Proposed 2018/2019 Biennial Target The proposed 2018/2019 Biennial Target consistent with the Climate Change with Low Societal Carbon Cost long term strategy is as follows: 10-Year Potential 2-Year Biennial Target Target Years 2017 IRP amw 17.4 amw IRP amw (623,449 MWh) amw (122,990 MWh) IRP 73.1 amw (640,356 MWh) 13.3 amw (116,508 MWh) Snohomish PUD 2017 Integrated Resource Plan 48 60/252

61 Proposed Action Plan Snohomish PUD 2017 Integrated Resource Plan 49 61/252

62 Proposed Action Plan Resource Strategies 1. Pursue all cost effective conservation and further explore capacity contributions. Explore feasibility of Demand Response as a utility scale capacity resource for the PUD 2. Explore low cost, low emissions alternatives for dispatchable capacity resources. Continue evaluating battery and pumped hydro storage Explore opportunities for addressing capacity as part of BPA Post 2028 product discussions 3. Ensure customer owned and distributed renewable strategies complement portfolio strategy. 4. Develop a renewables compliance strategy that results in a least cost EIA compliance approach. Monitor alternate compliance options Actively participate in rulemaking Non Resource Strategies 5. Expand short and long term resource portfolio modeling capabilities to assess cost and risk tradeoffs. 6. Conduct an internal survey about the IRP to determine how the reference document is used; validate key findings and incorporate into District s current process. 7. Continue to participate in regional forums and assess impacts associated with climate change, emissions, renewable portfolio standards, and regional power and transmission planning efforts. Snohomish PUD 2017 Integrated Resource Plan 50 62/252

63 Next Steps Finalize IRP draft document and SEPA Checklist. Conduct SEPA process (30 day determination). Schedule public hearing date. File District s biennial target for and 10 year conservation potential by December 29, 2017 with Department of Commerce. Snohomish PUD 2017 Integrated Resource Plan 51 63/252

64 Questions? Snohomish PUD 2017 Integrated Resource Plan 52 64/252

65 Supplemental Slides Snohomish PUD 2017 Integrated Resource Plan 53 65/252

66 Modeled Resource Output Characteristics Dispatachable Capacity Demand Response Baseload Renewables Variable Renewables Resource Nameplate (in MW) Average Annual Energy (in amw) Winter December On Peak (in amw) Winter December Peak Week (in amw) Summer August On Peak (in amw) Summer August Peak Week (in amw) Simple Cycle Combustion Turbine (SCCT) MW Short Term Capacity Contract (5 year) Dual Fuel Reciprocating Engine Pumped Storage Hydro Energy Storage Battery DR Direct Load Control Smart Stat * 12.8* DR C&I Curtailment * 6.3* DR Direct Load Control Air & H20 Heat * 83.3* DR Direct Load Control H20 Heat * 78.4* DR Smart H20 & Heat Landfill Gas Biomass Geothermal (traditional) Long Distance Wind (Montana) Run of River Hydro (small hydro) WA/OR Wind Customer Owned Distributed Generation Utility Scale Solar (U/S Solar E Wash) Utility Scale Solar (U/S Solar W Wash) *Quantities for Demand Response reflect total cumulative potential over the 20 year study period /252

67 Resource Modeling Assumptions Short Term Capacity Contract (5 year contract term) Capacity costs based on annual levelized cost of a Simple Cycle Combustion Turbine Annual dispatch assumed at ~10% Fuel cost assumed to be market purchases at forecast market price Emissions based on estimated annual regional Northwest Power Pool Net System Market Mix Renewable Resources (Solar, Wind, Small Hydro, Landfill Gas, Biomass, Geothermal) Resource costs based on survey of other regional utility IRPs and market research Assumed federal tax incentives not continued after 2020 expiry Annual dispatch reflects must run resource, less forced outage rate Emissions based on resource and fuel type Fossil Fueled Resources (Simple Cycle Combustion Turbine and Reciprocating Engine) Resource costs based on survey of other regional utility IRPs and market research Annual dispatch assumed at ~10%, fueled by natural gas Emissions based on plant efficiency and carbon content of fuel (~117 lbs/mmbtu) Pumped Storage Hydro (100 MW nameplate) Resource costs based on market research and internal studies Annual dispatch assumed at ~18% Roundtrip efficiency estimated at ~80% Fuel costs assumed to be market purchases at forecast market price Emissions based on estimated annual regional Northwest Power Pool Net System Market Mix Snohomish PUD 2017 Integrated Resource Plan 55 67/252

68 Contribution of Demand Response to Winter Need Cumulative Contribution of DR to December Peak Week (Mon Fri, On peak hours for One Week) Cumulative Contribution of DR to December On Peak (Mon Sat, On peak hours for the Month) 250 Total Cumulative DR by 2037 of 218 amw (Peak Week) amw amw Total Cumulative DR Potential 68 amw "Smart" Thermostats Water Heaters (< 80 gallons) "Smart" Water Heaters (> 80 gallons) Thermostats & Water Heaters Commercial/Industrial Controls "Smart" Thermostats Water Heaters (< 80 gallons) "Smart" Water Heaters (> 80 gallons) Thermostats & Water Heaters Commercial/Industrial Controls Snohomish PUD 2017 Integrated Resource Plan 56 68/252

69 Supply Side Resource Options Not Considered 1. Mature technologies difficult to site or permit in the current environment: New Coal Plants New Traditional Scale Nuclear Plants New Large Scale Hydro Facilities 2. Developing technologies not yet commercially available for this IRP, but being monitored: NW Offshore Wind/Ocean Generation Small/Modular Nuclear Other Emerging Technologies 3. Repowered wind resources due to limited data availability at this time. Snohomish PUD 2017 Integrated Resource Plan 57 69/252

70 Portfolio Comparisons by Scenario Scenario Carbon Cost (Avg 20 yr nominal) Net Portfolio Cost (NPV) Incremental Emissions (Annual Avg) Total Cumulative 10 Year New Conservation Potential (in amw) Total Cumulative 20 Year New Conservation Potential (in amw) 1 st Yr Supply Side Resources Added after New Conservation Low Case w/low SCC BAU w/no Carbon Climate Change w/low SCC BAU w/ca Carbon $12 to 30/ton $20.48 avg Current Law $0.32 avg $12 to $30/ton $20.48 avg $14 to $60/ton $33.62 avg $ 317,088, $ 702,088,729 82, $ 555,317,896 38, $ 481,360,736 15, High Case w/mid High SCC $42 to $90/ton $65.47 avg $ 1,368,599, , Snohomish PUD 2017 Integrated Resource Plan 58 70/252

71 NPVs of Highlighted 2017 IRP Scenario Studies Scenarios High w/ 10 yr Ramp & No Thermals BAU w/ No Thermals 10 yr Ramp BAU w/ 10 yr Ramp BAU w/ CA carbon & No Thermals 10 yr Ramp Climate Change w/ Low Carbon 10 yr Ramp BAU w/ CA Carbon 10 yr Ramp Climate Change w/ CA Carbon 10 yr Ramp Climate Change w/ High Carbon 10 yr Ramp Comparison of Portfolios and 10 Year Conservation Potential $0 $500 $1,000 $1,500 $2,000 $2,500 $891 $760 $702 $697 $653 $590 $555 $539 $481 $471 $387 $317 $209 Portfolio NPV (in Millions) $1,369 $2, Year Conservation Potential 10 Year Conservation Potential Estimate Net Portfolio Cost (NPV) Snohomish PUD 2017 Integrated Resource Plan 59 71/252

72 Portfolio Sensitivity Results Snohomish PUD 2017 Integrated Resource Plan 60 72/252

73 No Fossil Fuel Portfolio BAU Case BAU No Fossil New Portfolio Additions December On Peak BAU No Fossil Fuels BAU Load Forecast Total Total Portfolio Net Present Value $ 890,726,393 Portfolio Net Present Value $ 702,088, year Potential 20 Year Potential 10 year Potential 20 Year Potential amw New Annual Conservation New December HLH Conservation New Annual Conservation New December HLH Conservation Total Added Portfolio Emissions (Metric Tons of CO2) 1,781, Year Total 20 Year Total Total Added Portfolio Emissions (Metric Tons of CO2) 1,648,107 New Conservation 1st Landfill Gas 2nd Landfill Gas Pump Storage Snohomish PUD 2017 Integrated Resource Plan 61 73/252

74 No Snake Dams Sensitivity BAU Case No Snakes New Portfolio Additions December On Peak BAU No Snakes BAU Load Forecast Total Total Portfolio Net Present Value $759,594,343 Portfolio Net Present Value $702,088,729 amw year Potential 20 Year Potential New Annual Conservation year Potential 20 Year Potential New Annual Conservation New December HLH Conservation New December HLH Conservation Year Total 20 Year Total Conservation SCCT Short Term Capacity Contract DLC Smart Stat Total Added Portfolio Emissions (Metric Tons of CO2) 1,757,250 Total Added Portfolio Emissions (Metric Tons of CO2) 1,648,107 C&I Curtail Snohomish PUD 2017 Integrated Resource Plan 62 74/252

75 Climate Change Sensitivity BAU Case BAU Climate Change BAU /No Carbon Total Total Portfolio Net Present Value $ 590,125,771 Portfolio Net Present Value $ 702,088, year Potential 20 Year Potential 10 year Potential 20 Year Potential New Annual Conservation New December HLH Conservation New Annual Conservation New December HLH Conservation Year Total 20 Year Total Total Added Portfolio Emissions (Metric Tons of CO2) 774,965 Total Added Portfolio Emissions (Metric Tons of CO2) 1,648,107 Snohomish PUD 2017 Integrated Resource Plan 63 75/252

76 Conservation Snohomish PUD 2017 Integrated Resource Plan 64 76/252

77 Testing for Accelerated Conservation IRP analysis evaluated conservation acquisition at an accelerated implementation ramp rate of 7 years versus standard 10 year ramp rate. Accelerated portfolio results were not materially significant for the BAU and Climate Change cases, but did show differences for the Low and High Cases as a result of assumed carbon policies ($20 and $65, respectively) as shown below: Scenario 20 yr Portfolio NPV with 10 yr Ramp 20 yr Portfolio NPV with 7 yr Ramp % Change in Portfolio NPV Low Case w/low SCC $ 317,088,867 $ 382,989, % BAU w/no Carbon $ 702,088,729 $ 696,524, % BAU w/calif Carbon $ 481,360,736 $ 471,457, % Climate Change w/low SCC $ 555,317,896 $ 538,952, % High Case w/mid High SCC $ 1,368,599,951 $ 1,276,077, % Snohomish PUD 2017 Integrated Resource Plan 65 77/252

78 EIA Renewables Compliance Snohomish PUD 2017 Integrated Resource Plan 66 78/252

79 Forecast EIA Renewables Compliance (I 937) 2,500,000 Forecast REC Acquisition & Compliance for BAU Case 2,000,000 Renwable Energy Credits 1,500,000 1,000, , Existing Portfolio REC Generation REC Adds from New Resource Additions REC Bank Unbundled/"Paper" REC Adds REC Target after Conservation Snohomish PUD 2017 Integrated Resource Plan 67 79/252

80 EIA Renewables Compliance (I 937) RCW : (2)(a) Except as provided in (j) of this subsection, each qualifying utility shall use eligible renewable resources or acquire equivalent renewable energy credits, or any combination of them, to meet the following annual targets Staff Findings: A strategy of procuring unbundled renewable energy credits (RECs) was the most cost effective way for the PUD to meet EIA compliance standards under the target methodology. Proposed short term action plan includes action to monitor and assess pros/cons of EIA renewables compliance through 4% Financial Cost Cap and 1% No Load Growth compliance options. REC Adds through 2037 BAU w/no Carbon BAU w/ca Carbon Low w/low SCC High w/mid SCC Forecast REC Need 900, , , ,000 NPV for RECs (~$43 $53/REC) $512 MM $464 MM $454 MM $129 MM Percent of Total Costs 73% 96% 143% 9% NPV for RECs ($15/REC) $ 143 MM Percent of Total Costs 89% Snohomish PUD 2017 Integrated Resource Plan 68 80/252

81 Contract History and Project Update Previous Presentation: Beverly Park Expansion Project and PSE Letter Agreement 1/24/17 81/252

82 Agenda Background PSE Agreements Construction Progress Update Design and Construction Contracts Project Costs 2 82/252

83 1989 Letter Agreement Long range planning study of facilities and interconnections with BPA Mutual studies included PUD, BPA and PSE Determined need for additional support in the Northern and Central parts of Snohomish County Laid ground work 230kV delivery at Beverly Park 3 83/252

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85 1990 Transfer Agreement with Puget Sound Power and Light Approved under Resolution 3408 on May 22, 1990 Purchase of Beverly Park Substation, Lot 2 and 3, Price:$1,871, Puget remained dispatching party, District paid O&M costs of $12,927 per year Puget paid the District Facilities Charge of $92,164 per year Charge based on number of breakers Term of agreement lasts until Puget abandons all breaker positions in the station After commissioning of new station District will be dispatching party and Puget will pay O&M. 5 85/252

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87 2007 Purchase and Sale Agreement with PSE Options Approved under Resolution 5300, December 19, 2006 Conveyance of Lot 1 for $520K, to be paid in 2037 adjusted by CPI U Option Agreement has 30 yr life, expires 2037 PSE Option for (6) 115kV bays and (3) 230kV bays If PUD expands the existing substation, PUD pays all costs associated with modifications to PSE s existing facilities. If PSE elects to acquire options, PSE pays pro rata share of expanded substation costs. 7 87/252

88 2015 PSE Letter Agreement Approved under Resolution 5701, December 16, 2014 Relocation of lines of PSE lines to provide area for construction of substation expansion Engineer and construct modifications to circuit breaker, relays, controls and fiber optic cable to accommodate construction activity. Total Cost $480, /252

89 2017 PSE Letter Agreement Approved under Resolution 5801, February 7, 2017 Set and Test Relays and Meters Relocate Transmission Lines to North Bus Commission and Energize North Bus Original estimate of $855,000 Amended to $1,140,000 under Resolution 5814, June 13, /252

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93 Other Project Contracts RW Beck Professional Services Contract Notice to Proceed : 4/7/2008 Original Cost: $648,000 Paid: $628,000 Leidos Professional Services Contract Notice to Proceed : 5/13/13 Original Cost: $2,416,633, Amended Cost: $2,548,437 (Costs inclusive of Phase 1 and 2 of contract. Paid to Date: $2,509,233 Wilson Construction Public Works Contract Notice to Proceed: 6/24/2016 Original Cost: $10.4M, Amended Cost: 11.2M Paid to Date: $8.3M 13 93/252

94 Project Costs Project Estimate Total Cost to Date Total Forecast Cost Variance $29,757,937 $24,417,371 $31,025,486 $1,267, /252

95 Broad Utility Engagement Transmission Distribution Substation Metering System Planning and Protection Energy Control Center Operational Technologies Telecommunications Information Technology Services Legal Warehouse Line Department Environmental Corporate Communications Contracts and Purchasing 15 95/252

96 Questions 16 96/252

97 BUSINESS OF THE COMMISSION Meeting Date: October 2, 2017 Agenda Item: 2A TITLE Employee of the Month for October - Steve Freimark SUBMITTED FOR: Recognition/Declarations Employee Resources Tanya Manchester 8210 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: The October 2017 Employee of the Month is Steve Freimark, Lead Maintenance and Custodial Mechanic. Steve began his career at the PUD on July 30, 2001, as a Maintenance Mechanic A. On November 1, 2011, Steve became a Lead Maintenance and Custodial Mechanic, which is the title he continues to hold today. Steve will be presented by Manager Facilities Maintenance Trevor Vaden. List Attachments: Employee Profile 97/252

98 Employee of the Month Steve Freimark October 2017 Super friendly. Super positive. Super efficient. Yes, it appears that Superman works at the PUD and his mild-mannered alter-ego is Steve Freimark, Lead Maintenance and Custodial Mechanic. Steve began his career at the PUD on July 30, 2001, as a Maintenance Mechanic A. On November 1, 2011, he became a Lead Maintenance and Custodial Mechanic, which is the title he continues to hold today. One of the reasons Steve was nominated was because of the way he handles room setups for a regular quarterly manager meeting, a task that combines hard work with dependability and flexibility. Steve consistently caters to individual and room setup requests with a smile and positive attitude. Once, there was a last-minute crazy change, but he stayed calm and positive, carefully making all of the changes quickly so the meeting could be held on time. One of the nicest results of his professional work is an archway that was added to a kitchen area near Distribution & Engineering Services. A coworker says, It may not sound like much, but it wasn t easy to do. He completed a complex task without batting an eye, and the result is terrific. Other coworkers mentioned that when it comes to snowy/icy days: Steve is on it. He s the first one to be out working on preparing the grounds to make them safer for everyone. A Safety Department employee says: Steve gets it done! If you call Steve with a facilities concern (especially a hazard), he responds right away. He understands the need to take care of safety issues before someone gets hurt, not only because it is his job, but because he cares. He s been described as the kind of person who always has a cheery outlook someone who will smile and greet you if you pass him in the hallway. When you work with him, he s upbeat and positive, even if the task is hard or tedious. He is known for his great attention to detail, always doing careful work for jobs both big and small. He is dependable and was described as a go-to employee for Facilities-related work. He responds in a timely manner to employee requests. I think the entire District benefits from his scope of work and helping hand, said one admiring co-worker. Congratulations, Steve, on being our honored employee for October! It s a nice way to recognize the super work of a super employee! 98/252

99 COMMENTS FROM THE PUBLIC 99/252

100 BUSINESS OF THE COMMISSION Meeting Date: October 2, 2017 Agenda Item: 4A TITLE Approval of the Minutes for the Regular Meeting of September 19, 2017 SUBMITTED FOR: Consent Agenda Commission Melissa Collins 8616 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4) a non-delegable, statutorily assigned Board duty as defined under RCW minutes. List Attachments: Preliminary Minutes 100/252

101 PRELIMINARY SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting September 19, 2017 The Regular Meeting was convened by Vice President Kathleen Vaughn at 1:30 p.m. in the Commission Meeting Room. Those attending were Tanya Olson, President (telephonically); Sidney Logan, Secretary; CEO/General Manager Craig Collar; General Counsel Anne Spangler; Assistant General Managers James West and Brant Wood; Interim Chief Information Officer Dean Galvez; other District staff; members of the public; Clerk of the Board Melissa Collins and Deputy Clerk of the Board Lela Wall. * Items Taken Out of Order **Non-Agenda Items 1. RECOGNITION/DECLARATIONS A. Consideration of a Resolution Recognizing the Observance of the Week of October 2, 2017 Through October 6, 2017, as Customer Service Appreciation Week A motion unanimously passed approving Resolution No recognizing the observance of the week of October 2, 2017, through October 6, 2017, as Customer Service Appreciation Week. B. Consideration of a Resolution Authorizing the CEO/General Manager to Recognize the Weeks of October 9, 2017, Through October 27,2017, for the Charitable Giving Campaign A motion unanimously passed approving Resolution No Authorizing the CEO/General Manager to recognize the weeks of October 9, 2017, through October 27, 2017, for the Charitable Giving Campaign. 2. COMMENTS FROM THE PUBLIC Lora Cox, Gold Bar, provided a handout at places, by reference made a part of the packet and read the handout referencing exhibits, which were included. Ms. Cox opined that the Sunset Falls Fish Passage and Energy Project was not cost effective and would cause harm to native fish; and the District should look to more promising renewable energy projects, such as solar. Commissioner Olson asked when the next Integrated Resource Plan (IRP) discussion was scheduled to be presented to the Board. CEO/General Manager Craig Collar confirmed that the discussion will take place during the October 2, 2017 Commission meeting. 101/252

102 2 Regular Meeting September 19, CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of September 5, 2017 B. Bid Awards, Professional Services Contracts and Amendments Public Works Contract Award Recommendations Over $25,000: Request for Proposal No. Doc with Magnum Power, LLC Request for Proposal No. Doc with Kemp West, Inc. Formal Bid Award Recommendations $60,000 and Over: None Professional Services Contract Award Recommendations $200,000 and Over: None Miscellaneous Contract Award Recommendations $200,000 and Over: None Cooperative Purchase Recommendations: Contracts: Purchase Order Number with Altec Industries Amendments: None Sole Source Purchase Recommendations: Purchase Order No with Craley Group Limited Emergency Declarations, Purchases and Public Works Contracts: None Purchases Involving Special Facilities or Market Condition Recommendations: None Formal Bid and Contract Amendments: None Contract Acceptance Recommendations: Public Works Contract No. CW with Razz Construction, Inc. Public Works Contract No. CW with Davey Tree Surgery Company C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers A motion passed approving Agenda Item 3A - Approval of Minutes for the Regular Meeting of September 5, 2017, with Commissioner Logan abstaining. Revised bid award documents were provided at places, by reference made a part of the packet. A motion unanimously passed approving 3B - Bid Awards, Professional Services Contracts, and Amendments. A motion unanimously passed approving 3C - Certification/Ratification and Approval of District Checks and Vouchers. 102/252

103 3 Regular Meeting September 19, PUBLIC HEARING AND ACTION A. Disposal of Surplus Property - 4th Quarter 2017 Vice President Vaughn convened the public hearing. There being no questions or comments from the public, the public hearing was closed. Based on staff s recommendation that the items are no longer necessary or useful to the District, a motion unanimously passed approving those items listed on Exhibits A and B of the Surplus Property Recommendation Report be declared surplus and be sold for high bid or disposed of according to policy in the fourth quarter of COMMISSION BUSINESS A. Commission Reports Commissioner Logan worked the District s booth at the Evergreen State Fair and met with Power Scheduling staff. Commissioner Vaughn mentioned that Board members and staff would be touring the Columbia Generating Station and the Nine Canyon Wind Farm later in the week. 6. GOVERNANCE PLANNING A. Governance Planning Calendar There were no changes to the Governance Planning Calendar. EXECUTIVE SESSION The Regular Meeting recessed at 1:58 p.m. and immediately reconvened into Executive Session at 2:03 p.m. to discuss current or potential litigation, under the terms set forth in the Open Public Meetings Act. It was anticipated the Executive Session would last approximately 40 minutes with no public announcements. Those in attendance were Commissioners Tanya Olson (telephonically), Kathleen Vaughn, and Sidney Logan; CEO/General Manager Craig Collar; General Counsel Anne Spangler; and other District staff. The Commission immediately adjourned the Regular Meeting upon conclusion of the Executive Session. 103/252

104 4 Regular Meeting September 19, 2017 ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of September 19, 2017, adjourned at 2:40 p.m. An audio file of the meeting is on file in the Commission Office and available for review. Approved this 2 nd day of October Secretary President Vice President 104/252

105 BUSINESS OF THE COMMISSION Meeting Date: October 2, 2017 Agenda Item: 4B TITLE CEO/General Manager's Report of Public Works Contract Award Recommendations; Formal Bid Award Recommendations; Professional Services Contract Award Recommendations; Miscellaneous Contract Award Recommendations; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations SUBMITTED FOR: Consent Agenda Contracts/Purchasing Clark Langstraat 5539 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description, GP-3(4) non-delegable, statutorily assigned Board duty Contracts and Purchasing. The CEO/General Manager's Report of Public Works Contract Award Recommendations Over $25,000; Formal Bid Award Recommendations $60,000 and Over; Professional Services Contract Award Recommendations $200,000 and Over; Miscellaneous Contract Award Recommendations $200,000 and Over; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations contains the following sections: Public Works Contract Award Recommendations Over $25,000 (Page 1); Request for Proposal No. Doc with B & L Utility, Inc. 105/252

106 Formal Bid Award Recommendations $60,000 and Over (Page 2); Request for Quotation No with EC Power Systems Professional Services Contract Award Recommendations $200,000 and Over; None Miscellaneous Contract Award Recommendations $200,000 and Over; None Cooperative Purchase Recommendations; Contracts: None Amendments: None Sole Source Purchase Recommendations (Page 3); Purchase Order No with Bailey Valve Incorporated Emergency Declarations, Purchases and Public Works Contracts; None Purchases Involving Special Facilities or Market Condition Recommendations; None Formal Bid and Contract Amendments (Pages 4 6); Professional Services Contract No with Michael & Alexander, PLLC Professional Services Contract No with Van Ness Feldman, LLP Professional Services Contract No. CW with Terracon Consultants, Inc. Contract Acceptance Recommendations (Page 7); Public Works Contract No. CW with Kemp West, Inc. Public Works Contract No. CW with Kemp West, Inc. List Attachments: October 2, 2017 Report Basis for Sole Source Statement of Purchaser Order No with Bailey Valve Incorporated 106/252 Page 2

107 Public Works Contract Award Recommendation(s) Over $25,000 October 2, 2017 RFP No. Doc Capital Improvement Vernon Road West Water Main Replacement No. of Bids Solicited: 17 No. of Bids Received: 7 Project Leader & Phone No.: Al Cohen Estimate: $410, This project work provides all labor, equipment, tools, goods, material, and incidentals necessary to install approximately 2,100 lineal feet of eight-inch Ductile Iron water main and all necessary appurtenances associated with the installation. Such construction shall be performed while maintaining service to existing six inch Asbestos Cement and two inch HDPE (high-density polyethylene) temporary and existing water mains. The project location commences near the 8500 block of Vernon Road and proceeds west to the 8000 block. The project is discontinuous and commences at approximately block 27 and proceeds south to block 5 on Vernon Road, in the City of Lake Stevens, in Snohomish County, Washington. Contractor Subtotal (w/o tax) Award To B & L Utility, Inc. $365, SRV Construction, Inc. $409, Carman s Construction, LLC. $438, Laser Underground & Earthwork, Inc. $449, RRJ Company, LLC $466, Allied Construction Associates $486, Interwest Construction, Inc. $522, Summary Statement: Staff recommends award to B & L Utility, Inc., the low evaluated bidder, in the amount of $365,263.12, plus tax. The bid submitted by RRJ Company, LLC was in the amount of $465, However, it contained two math extension errors totaling $ After correcting these errors, B & L Utility, Inc. remains the low evaluated bidder. The bid submitted by Allied Construction Associates was in the amount of $510, However, it contained a mathematical extension error of $24, After correcting this error, B & L Utility, Inc. remains the low evaluated bidder. Page 1 107/252

108 Formal Bid Award Recommendation(s) $60,000 And Over October 2, 2017 RFQ No Operations Center Stationary Load Bank No. of Bids Solicited: 6 No. of Bids Received: 3 Project Leader & Phone No.: George Hespe, X8646 Material Estimate: $90, This procurement is for one stationary load bank to be installed at the Operations Center, to be used with existing Emergency Paralleling Controls. Vendor Subtotal (w/o tax) Award To EC Power Systems $91, Graybar Electric, proposing Simplex, Inc. Graybar Electric, proposing Asco Power $99, $81, Summary Statement: Staff recommends awarding to EC Power Systems, the low responsive bidder, in the amount $91, plus tax. The bid provided by Graybar Electric proposing Asco Power contained substantial exceptions to the stated technical specifications and to the Functional Sequence of Operation, rendering their bid non-responsive. Page 2 108/252

109 Sole Source Purchase Recommendation(s) $60,000 And Over October 2, 2017 PO No Two (2) Bailey Valve Repair Kits Project Leader & Phone No.: Mark Flury 1722 Material Estimate : $119, The Jackson Project requires repair work to two separate synchronous bypass valves located on the turbine floor within the Powerhouse. The valves were originally manufactured by Bailey Valve Inc. and installed during the Project construction in Bailey Valve is providing two valve repair kits which utilize an improved seal technology to guard against leakage. Leakage results in lost generating water and lost revenue, so this repair will result in an associated increase in generating water availability. The kits are unique to these valves and application, so there are no local distributors or alternate valve manufacturers that can provide these materials. Vendor QTY Subtotal (w/o tax) Award To: Bailey Valve Incorporated 2 $119, Summary Statement: Staff recommends award to Bailey Valve Incorporated, the sole provider of the in the amount of $119,454.12, plus tax. Page 3 109/252

110 Formal Bid and Contract Amendment(s) October 2, 2017 PSC No Employment Litigation Contractor/Consultant/Supplier: Michael & Alexander, PLLC Project Leader & Phone No.: Branda Andrade X8657 Amendment No.: 5 Amendment: $30, Original Contract Amount: $ 20, Present Contract Amount: $220, Original Start/End: 8/26/14 12/31/15 Amendment Amount: $ 30, Present Start/End: 8/26/14 12/31/17 New Contract Amount: $250, New End Date: 6/30/18 Summary Statement: Staff recommends approval of Amendment No. 5 to increase the contract value by $30, and extend the term to June 30, 2018, so Michael & Alexander, PLLC may continue to represent the District with ongoing litigation and post-trial matters, and advise on employment issues. Summary of Amendments: Amendment No. 1 dated December 17, 2014, extended term to December 31, Amendment No. 2 dated April 13, 2016, increased contract value by $25, Amendment No. 3 dated October 24, 2016 increased contract value by $75, and modified end date to April 28, Amendment No. 4 approved by Commission on February 7, 2017 increased contract value by $100, and modified end date to December 31, Page 4 110/252

111 Formal Bid and Contract Amendment(s) October 2, 2017 PSC No Sunset Fish Passage and Energy Project Contractor/Consultant/Supplier: Van Ness Feldman, LLP Project Leader & Phone No.: Shawn Aronow x8130 Amendment No.: 4 Amendment: $100, Original Contract Amount: $125, Present Contract Amount: $423, Original Start/End: 3/9/15 3/9/17 Amendment Amount: $100, Present Start/End: 3/9/15 3/9/17 New Contract Amount: $523, New End Date: 12/31/18 Summary Statement: Staff recommends approval of Amendment No. 4 to increase the contract value by $100, and extend the contract term to December 31, 2018 so that Van Ness Feldman may continue to represent and advise the District with ongoing Federal Energy Regulatory Commission (FERC) issues for the Sunset Fish Passage and Energy Project. Summary of Amendments: Amendment No. 1 dated February 2, 2016, increased the contract value by $75, for continued legal services related to the Sunset Fish Passage and Energy Project. Amendment No. 2 approved by Commission on June 6, 2016, increased the contract value by $75, for continued legal services related to the Sunset Fish Passage and Energy Project. Amendment No. 3 approved by Commission on October 18, 2016, extended the contract term to December 31, 2017 and increased the contract value by $150, for continued legal services related to the Sunset Fish Passage and Energy Project. Page 5 111/252

112 Formal Bid and Contract Amendment(s) October 2, 2017 PSC No. CW HCH CCH Materials Testing and Special Inspections Services Contractor/Consultant/Supplier: Terracon Consultants, Inc. Project Leader & Phone No.: Mark Flury x1722 Amendment No.: 3 Amendment: $25, Original Contract Amount: $ 94, Present Contract Amount: $ 197, Original Start/End: 3/7/16 3/1/18 Amendment Amount: $ 25, Present Start/End: 3/7/16 3/1/18 New Contract Amount: $ 222, New End Date: N/A Summary Statement: Staff recommends approval of Amendment 3 to increase the contract by $25, to allow for additional hours to cover for project inspections primarily related to continuous certified welding inspection coverage based on FERC standards and slow progress in penstock welding which required longer inspection presence. Summary of Amendments: Amendment No. 1 dated May 20, 2016, Providing a certified welding inspector and NDE inspector to perform inspection and testing during the installation for penstock pipes for both sides and increased the funding by $ for the additional inspections. Amendment No. 2 dated April 4, 2017, Increased contract value by $56, to cover additional hours for project inspections and changed the Terracon Project Manager to Dave Detterich. Page 6 112/252

113 Contract Acceptance Recommendations(s) October 2, 2017 Accept Contract(s) as complete and grant approval to release Retained fund after full compliance with Departments of Labor and Industries, Revenue and Employment Security. PWC No. CW Three Lakes Distribution Line Clearance Contractor: Kemp West, Inc. Start/End: 2/13/2017 8/7/2017 Evaluator & Phone No.: Josh Perez X5056 No. of Amendments: 1 Retained Fund: $21, Original Contract Amount: $416, Total Amendment Amount: $14, Final Contract Amount: $431, Summary Statement: None PWC No. CW Three Lakes Transmission And Distribution Line Clearance Contractor: Kemp West, Inc. Start/End: 6/5/2017 8/8/2017 Evaluator & Phone No.: Josh Perez X5056 No. of Amendments: 1 Retained Fund: $11, Original Contract Amount: $221, Total Amendment Amount: $6, Final Contract Amount: $228, Summary Statement: None Page 7 113/252

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119 BUSINESS OF THE COMMISSION Meeting Date: October 2, 2017 Agenda Item: 4C TITLE Consideration of Certification/Ratification and Approval of District Checks and Vouchers SUBMITTED FOR: Consent Agenda General Accounting & Financial Systems Julia Anderson 8027 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4)(B)(2)a non-delegable, statutorily assigned Board duty to approve vouchers for all warrants issued. The attached District checks and vouchers are submitted for the Board's certification, ratification and approval. List Attachments: Voucher Listing 119/252

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121 Detailed Disbursement Report Workers' Compensation - Time Loss Payment Date Payment Ref Nbr Payee Amount 9/15/ TRINA N STEVENS $2, /15/ BOB G ALTOM $5, Total: $7, /252 Page: 2/64

122 Detailed Disbursement Report Revolving Fund - Petty Cash Reimbursement and Other Payment Date Payment Ref Nbr Payee Amount 9/13/ JANET ANDERSON $ /13/ JANA EASTERLING AND/OR RONALD MILL $1, /15/ KEITH ELLISON $ /15/ JANA EASTERLING AND/OR RONALD MILL $2, Total: $6, /252 Page: 3/64

123 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/11/ FLYNN ADAMS $ /11/ CIRRA CRANE $ /11/ SSHI LLC $ /11/ RUIYU QU $ /11/ KATHLEEN RAMIREZ $ /11/ ALEXIA TERHARK EMERSON $ /11/ VIOLET MACK $ /11/ ERIC RINGSTAD $3, /11/ RICHMOND AMERICAN HOMES OF WA INC $ /11/ JAMES HENDERSON $1, /11/ THOMAS SCHOENFELDER $ /11/ JOHN FELTZ $ /11/ WILLOW TREE GROVE 1, LLC $ /11/ MCKENZIE CAMPBELL $ /11/ RHODORA PANTIER $ /11/ KENNETH MIETZNER $ /11/ JR CHRISTOPHER COOKSEY $ /12/ ANAHI ANDRADE $ /12/ MICHELLE KOCI $ /12/ EMILY HUNT STANFIELD $ /12/ GERALD CAPONE $ /12/ MARILYN GLOSSER $2, /12/ ELIZABETH ADOLPHSEN $2, /12/ BRENT WHITING $ /12/ MANOJ KUMAR MIRYALA $2, /12/ RACHEL MORENO $ /12/ ANNE HATHAWAY $ /12/ DOROTHY HARPER $ /12/ CHRIS DELACRUZ $ /12/ LARCHMONTLA LLC $ /12/ BEN ABRAMS $2, /12/ TIAN QIU $ /252 Page: 4/64

124 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/12/ TH AVE CLEANERS N TAILORS INC $ /12/ PATRICK D'ABBRACCI $ /12/ PHILIP BINSTOCK $ /12/ BRENDA LOBATO $ /12/ CANDELARIA LEWIS $ /12/ YANGFUXIAO MEI $ /12/ MARIAH MILLER $1, /12/ MARCIA MCCARTY $3, /12/ ANITA WILLIAMS $ /12/ PORTSMITH APTS $ /12/ DYNASTY HOMES $ /12/ MICHAEL MCINTYRE $ /12/ GORDON MARKS $ /12/ CASSIDY COROCH $ /12/ CEP-KPA 10, LLC $ /12/ KELSEY SEVERSON $ /12/ KRISTINA NASS $ /12/ CHRISTINA GOMEZ $ /12/ MAUDIE MOE $ /12/ JOSEPH RAGUINE $ /12/ MARILYN BALLARD $2, /12/ MARIO ALAMILLO $ /12/ REBECCA A PRIBBLE $ /12/ AKANA HUSSEIN $ /12/ MARINA BENALLY $2, /12/ MACKENZIE STRAUGHAN $1, /12/ MARISSA SCHUH $4, /12/ SARAH VANDERVORT $3.44 9/12/ PEDRO SEVILLA ZARAGOZA $ /12/ CHRISTINE CASTRO $8.14 9/12/ CARIE DEEMS $2, /12/ DEANNA SCHROEDER $ /252 Page: 5/64

125 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/12/ SANDRA JONES $ /12/ MANTICA MOSSELLI $3, /12/ MARCUS DUSENBURY $3, /12/ HAIWEN SUN $ /12/ MARILYN BROWN $4, /12/ PATRICIA THOMAS $ /12/ KARY BECKNER $5.57 9/12/ WINIFRED MILLER $ /12/ HERACLIO DELACRUZ $ /12/ TIM RHOADES $ /12/ VIRGINIA BALDASAR $ /12/ MARILYN WALKER $4, /12/ HARISH PARAVASTHU $ /12/ DAVID HAGERMAN $ /12/ MARILYN DEGAN $1, /12/ DALE GEYER $ /12/ MARK CONTY $1, /12/ QUANSHUANG LI $ /13/ GARY FONTES $2, /13/ ERICK LEE $2, /13/ HARRY PLATE $4, /13/ GRACE KANE $4, /13/ GOPAL RENGAN LAKHSMANAN $2, /13/ GROWING COMMUNITY, LLC $2, /13/ HOMEBREW HEAVEN, INC $ /13/ MARK HOWE $ /13/ GERARDO MAGALLANES $4, /13/ GREG SNYDER $1, /13/ MARSHAL STAPP $2, /13/ MARTIN VALERI $1, /13/ RADOUANE BOUKRAA $ /13/ ELLEN GARDUNO $1, /252 Page: 6/64

126 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/13/ BARBARA CAMPBELL $ /13/ GEORGE ANN ENDRES $5, /13/ FRIDA KUMAR $1, /13/ ENTERPRISE WA, INC $ /13/ PATHLIGHT PROPERTY MANAGEMENT $ /13/ ELIVALDO MEIRELES DA SILVA $ /13/ STRATHCONA PROPERTIES, LLC $9.68 9/13/ EARL BURGETT $1, /13/ MARK ROCK $4, /13/ EVERETT THERAPEUTIC CENTER, LLC $5, /13/ PAULA SULLIVAN $6.78 9/13/ ERIC YOUNGBERG $4, /13/ ERIC OLSON $3, /13/ EMILY WATROUS $1, /13/ GORDON STEPHENSON $4, /13/ PAMELA WILLIAMS $ /13/ JOLLY FAMILY CORP $ /13/ GREG RAYMOND $2, /13/ MATT SMITH $4, /13/ GEOFF CLARK $4, /13/ LEON SON $ /13/ QIANG LI $ /13/ MARTIN PROUDFOOT $4, /13/ ERIKA KUECKER $5, /13/ MARK HULLIN $2, /13/ ESTHER GUSTAFSON $5, /13/ DOLORES FLETCHER $ /13/ EUGENE CROOKSTON $1, /13/ FRER MARRIOTT $3, /13/ GUY PIERCEY $3, /13/ GARY PEDERSON $4, /13/ HEATHER MARGO $2, /252 Page: 7/64

127 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/13/ GEOFF KENWAY $1, /13/ ERIC WICKSTROM $ /13/ COREY DAVISON $ /13/ GREGORY BOXFORD $ /13/ JOSEPH CATALINI $1, /13/ GAY ENGELSEN $2, /13/ GWEN WOOD $1, /13/ MAYANK JAIN $3, /13/ EMILY COUNTRYMAN $2, /13/ HANS DANKERS $5, /13/ HAI LETRONG $2, /13/ GRANITE FALLS SCHOOL DISTRICT $1, /13/ GARY ARTIM $2, /13/ HANS-ULRICH SIGNER $1, /13/ REBECCA CATES $ /13/ ED COLLINS $1, /13/ GREGORY SCHULER $1, /13/ ELIZABETH HERTEL $ /13/ FRANCES MASON $2, /13/ GARY KROHN $2, /13/ JUAN VAZQUEZ $ /13/ ERNIE GLADSJO $1, /13/ WENDY KHUN $ /13/ JACK CARRICK $ /13/ GREG WILLIAMS $1, /13/ EVAN GRIFFITHS $2, /13/ GOLDE CREEK HOMES LLC $1, /13/ MATTHEW BUZA $5, /13/ COTY YODOFF $ /13/ MARTIN OSTERWALD $4, /13/ GENEVIEVE KYSAR $3, /13/ ED HURST $ /252 Page: 8/64

128 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/13/ GREGG ORTEGA $5, /13/ HAMID ALI $4, /13/ ERIK PETERSEN $3, /13/ HADY ANTONY $3, /13/ GARY MICKELSEN $4, /13/ MASAKI GOMI $3, /13/ HEATHER MERRITT $4, /13/ GAURAV MALHOTRA $3, /13/ GARY PEASE $3, /13/ BRYCE CHAPMAN $ /13/ MELIA LOCKHART $3, /13/ ELLEN CASSEN $ /13/ MARK MCCLURE $3, /13/ ERIC KELLEY $ /13/ MARK MORSE $1, /13/ SANDERS LAMBERT $ /13/ IH2 PROPERTY WASHINGTON, L.P. $ /13/ FREDERICK WESTERGAARD $3, /13/ MELISSA BURTON $2, /13/ GARY BUCK $ /13/ MARTHA CLAY $1, /13/ ELIZABETH DORMAN $2, /13/ ELIZABETH LAWRENCE $3, /13/ WASHINGTON EVERETT MISSION $ /13/ CHARLENE REYNOLDS $ /13/ ERIC NICKOLS $5, /13/ MARTIN PARK $ /13/ DELMA SILVA $ /13/ PILCHUCK VET HOSPITAL INC PS $ /13/ ERIC SMALL $4, /13/ MATTHEW FIFE $1, /13/ HEATHER CURFMAN $ /252 Page: 9/64

129 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/13/ GUY FORSLING $2, /13/ MEKANIK & NEKAHI ENTERPRISES, $5, /13/ MATT JAMES $2, /13/ ZHANNA KOCHEROV $ /13/ ELIZABETH DUBREUIL $2, /13/ ETHAN LORIMOR $2, /13/ GEORGE DECKER $1, /13/ JOHAN LOPEZ $ /14/ HELEN WERTHEIMER $3, /14/ HENRY LANDAU $2, /14/ HOWARD KNOEPFLE $2, /14/ MITCHELL PEARSON $1, /14/ HEATHER TEEGARDEN $ /14/ CRYSTAL SPRINGS APTS $ /14/ JOVELYN BENARES $ /14/ RYAN CROW $ /14/ ERIK WATT $ /14/ HEATHER YOUNG $5, /14/ EVAN CACKA $1, /14/ MICHAEL LEIBOLD $3, /14/ JAMES SPRINGFIELT $ /14/ CARISSA SUHENDRA $ /14/ STACK DESIGN & CONSTRUCTION LLC $ /14/ SHORELINE RIDGE, LLC $ /14/ MICHAEL OCHELTREE $2, /14/ SCOTT ROOKS $ /14/ PACIFIC RIDGE - DRH, LLC $ /14/ JENNIFER PEMPEIT $ /14/ MEI WU $ /14/ LOUIS TSENG $ /14/ MICHAEL FARDEN $ /14/ LORRAINE ROBERTSON $ /252 Page: 10/64

130 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/14/ SNOHOMISH SCHOOL DISTRICT #201 $2, /14/ HOWARD FANKHAUSER $2, /14/ MIKE MILLER $2, /14/ MICHAEL ELLISTON $2, /14/ STEPHEN RICHTER $ /14/ CAMERON HOWARD $ /14/ HELEN SMITH $5, /14/ HEIDI BAHREY $4, /14/ MELISSA NEYMAN $1, /14/ HEATHER MURRAY $ /14/ MONICA LORIMOR $2, /14/ MARK LUCIANNA $5, /14/ PETER RIEHLE $ /14/ DAVID GLADSTONE $5, /14/ MIKE HEBAUS $4, /14/ MIKE SANDBERG $3, /14/ BRYANT BUNCH $1, /14/ WALTER DEPREY $ /14/ ERIK WATT $3, /14/ SUMINTRA WATI $ /14/ MIGUEL MONROE $4, /14/ DAVID WANG $6.07 9/14/ ROBERT FINK $ /14/ WILLIAM SHAW $ /14/ MIKE SCHOONOVER $3, /14/ CHRISTOPHER PRICE $ /14/ MIKE GARKA $ /14/ DELSIO DA SILVA $ /14/ MADELYN JOHNSON $ /14/ ZHAOYI FANG $ /14/ MADISON HILL PARTNERS LLC $ /14/ JADE RICKER $ /252 Page: 11/64

131 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/14/ DANIEL FINE $ /14/ MICHAEL STEPHENSON $2, /14/ HOLLY KASTELIC $1, /14/ HEIDI SKIEVASKI $ /14/ HIEU VUONG $2, /14/ MERLE BROWN $4, /14/ MICHAEL SCHAMENS $5, /14/ CHARIEDEL ECALNE $ /14/ MICHAEL DELURY $1, /14/ MICHAEL NIELSON $2, /14/ MICHAEL MC EACHERN $1, /14/ SANDRA SWARBRICK $2, /14/ ANDREW LEDFORD $ /14/ KAREN LAIRD $ /14/ HUNG THAI $2, /14/ PATRICK STEVENS $ /14/ MAPLE COURT APTS 2010 LLC $ /14/ JIANG HU $ /14/ MUNIRAJU JAYARAMAIAH $ /14/ SNOHOMISH SCHOOL DISTRICT #201 $2, /14/ MICHAEL GOLD $5, /14/ WICKSTROM CONST $ /14/ MICHAEL MONAS $1, /14/ MICHAEL STEVENSON $1, /14/ MERLE BLEVINS $4, /14/ MICHAEL SHRIVER $5, /14/ JACK MURRIN $ /15/ SNOHOMISH COUNTY FACILITIES MGMT $2, /15/ JAMES CORNELL $ /15/ JAMES BUZITIS $3, /15/ JENNIFER ERVIN $1, /15/ JOHN STEINER $2, /252 Page: 12/64

132 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ ROBERT GAMAGE $ /15/ KATHIE GOLDEN $ /15/ JOHN BROOKS $1, /15/ NICHOLAS SHELLY $ /15/ JOHN MOSTROM $4, /15/ JEFF BRUMLEY $4, /15/ NIKITA VORONKOV $1, /15/ NICHOLAS PEMBROKE $5, /15/ NAGESHWARAKUMAR POTUKUCHI $3, /15/ JENNIFER BENNETT $2, /15/ JEANETTE BUSHNELL $5, /15/ JAN LENGENFELDER $1, /15/ JEROLD GEMAR $5, /15/ JESS WASHABAUGH $2, /15/ KAMESWARA KODUKULA $4, /15/ VENKATA RAMANA KOTAPATI $3, /15/ VENKAT SINGIREDDY $2, /15/ III ANDREW PEARSON $3, /15/ MASTON PROPERTIES & CONSTRUCTION LLC $ /15/ DONNA HOPPER $4, /15/ ERIC ENSIGN $ /15/ IRENE LINDVALL $4, /15/ NANCY WILEY $1, /15/ JUSTIN PIETSCH $2, /15/ NANCY JOHNSON $3, /15/ JOSEPH WILSON $4, /15/ KAPIL DUA $4, /15/ JOSH LAURICHA $3, /15/ JEFF ONZAY $5, /15/ JOAN SCHRAMMECK $1, /15/ KATHERINE FINLEY $3, /15/ JEANETTE KUO $5, /252 Page: 13/64

133 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ JR WILLIAM TAYLOR $3, /15/ JENNINE THIGPEN $3, /15/ JEFFREY THURNAU $1, /15/ JENNIFER BURKS $5, /15/ JOHN ANTHONY $3, /15/ SANU CHACKO $5, /15/ KAREN VAN LIER $1, /15/ JAMIE MALLAHAN $3, /15/ JOSHUA SMITH $4, /15/ JANET SMITH $3, /15/ LILI YAO $2, /15/ KATHERINE ALBRIGHT $5, /15/ ELVIRA GUZMAN $ /15/ DANIEL FINE $ /15/ JULIE HOWARD $2, /15/ NATHAN KING $ /15/ NANCY BREWER $1, /15/ JAMES CHIDESTER $2, /15/ KATRINA KERSHNER $4, /15/ JEFFERY MILTON $5, /15/ HEIDI WOOD $1, /15/ KARTHIK PATTABIRAMAN $3, /15/ NORTHSHORE SCHOOL DISTRICT 417 $4, /15/ JAMES CARRAWAY $3, /15/ JOSHUA LOW $ /15/ KARLA PETTIT $2, /15/ JOHN CUSTER $2, /15/ SNOHOMISH COUNTY FACILITIES MGMT $1, /15/ KAPIL LAKHLANI $ /15/ NORTHSHORE SCHOOL DISTRICT 417 $ /15/ JENNIFER RINALDI $4, /15/ JEFFREY DEBOER $2, /252 Page: 14/64

134 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ KARTHIKEYAN KESAVAN $4, /15/ SKOTDAL PRIME PROPERTIES II, LLC $5, /15/ MILBERN ADAMS $1, /15/ ROGER HIGBEE $1, /15/ JAY LORENZ $2, /15/ KATRINA HEPLER $1, /15/ JOACHIM ANDRES $4, /15/ JEREME EVANS $3, /15/ NICHOLAS MYERS $4, /15/ JAMES ARMSTRONG $ /15/ JAMES WHITE $5, /15/ SCOTT GALBREATH $ /15/ KAREN GAHM $4, /15/ JAMES TOWELL $3, /15/ JR JOHN KLEIN $5, /15/ JOHN NORTON $5, /15/ LUIS LUNA $ /15/ JUSTIN SCHALLMANN $3, /15/ KAIMIN ZHANG $3, /15/ JOHN KESSLER $4, /15/ SILVY TRIANA $ /15/ JENNIFER WILLCOX $3, /15/ JAMES COPPERNOLL $5, /15/ KAREN KELLY $ /15/ JEFF COUCKUYT $4, /15/ JACK KUEHN $4, /15/ JENNIFER DAHLGAARD $4, /15/ CLAUDIA UMANA $ /15/ MICHELLE GRANDY $ /15/ GERALD JAMES $ /15/ JULI VAN PELT $3, /15/ JAMES CORBETT $3, /252 Page: 15/64

135 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ JASON BRAINARD $5, /15/ JURGEN BETTAG $2, /15/ JON SCHWEGLER $ /15/ KATIE BROWN $3, /15/ JOSEPH GRABER $4, /15/ MUTHU RANGA RAJAN VARATHARAJAN $2, /15/ KARI QUAAS $3, /15/ TODD GRISIM $ /15/ SNOHOMISH COUNTY AIRPORT $ /15/ JOAN DAVIS $1, /15/ K BRAD YUSKO $3, /15/ JULIE TRENT $2, /15/ JOHN NOLAN $4, /15/ JEAN ARMBRUSTER $5, /15/ JOHN SCHWAB $1, /15/ JENNIFER CHANG $5, /15/ JUNE VANDERSTEEN $4, /15/ JEREMY WILMS $3, /15/ JACALYN BACKEN $3, /15/ JUDITH DUBOIS $2, /15/ JESSE MCCLUSKY $4, /15/ JORDAN BROWN $4, /15/ BYARD BOWER $2, /15/ DAVID CAVANAUGH $ /15/ MARY BYER $ /15/ JUNG PARK $1, /15/ JULIE PRENTICE $2, /15/ JOCELYNN WINTER $4, /15/ JANET MONTAGUE $5, /15/ FAWN MEDEL $ /15/ JOHN MCCOY $5, /15/ JOSHUA CALES $3, /252 Page: 16/64

136 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ JANET GIFT $3, /15/ AUSTIN CLARK $ /15/ JAMES STEPHENSON $ /15/ MIRIAM BELADOR-LOPEZ $ /15/ MIKE TANDO $2, /15/ LINDY ADAMS $ /15/ DALE GLASSETT $ /15/ KATHLEEN CORRIGAN $3, /15/ JOSEPH NESS $5, /15/ JACK PIETRA $2, /15/ JONATHAN SCOTT $3, /15/ MARSHAL STAPP $2, /15/ JASON GARDINER $4, /15/ JAMES THOMAS $ /15/ JR JAMES RECKERS $5, /15/ JOHN HARVILLE $ /15/ KAREN GUZAK $2, /15/ NEAL PADBURY $2, /15/ ROBERT SOTAK $3, /15/ JACOB WILLIAMS $1, /15/ BRIAN SAYRE $ /15/ KEVIN STAFFORD CONSTRUCTION $ /15/ JASON CALL $2, /15/ NINALEI PULLIAM $ /15/ JOHN HORNE $2, /15/ JOHN SNYDER $2, /15/ JOHN SIEVERS $3, /15/ JAMES CARROLL $4, /15/ NORTHSHORE SCHOOL DISTRICT 417 $ /15/ VIVEK SHAH $1, /15/ NATHAN MOORE $5, /15/ JOHNNY PHAN $5, /252 Page: 17/64

137 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ MIRANDA MOORE $ /15/ JOSHUA STORZ $2, /15/ NICOLAS BRIGHT $ /15/ HENLEY USA, LLC $ /15/ DONNAVE PREMO $7.42 9/15/ CAMILLE PIEGA $ /15/ DAWN KNIGHT $ /15/ GCP POINT LLC $2, /15/ BRAMBLEMIRE INC $ /15/ MICHAEL HOLLY $16, /15/ NATHAN BERGEMAN $1, /15/ JOSEPHINE O'SHAUGHNESSY $3, /15/ KARLA NOTHAFT $5, /15/ JANYCE OSENBACH $2, /15/ JESSE JONES $1, /15/ JOHN ZIMMERMAN $1, /15/ JAMES SURFACE $5, /15/ SNO CO PARKS DEPT $ /15/ JAMES CLARK $1, /15/ NANDA LELLA $3, /15/ CRYSTAL HARRIS $ /15/ JASON WALTER $2, /15/ NANCI KIMBLE $ /15/ TINA LEGRAND $ /15/ ARNE WENNERBERG $ /15/ KAREN CLARK $3, /15/ KAREN FISHER $2, /15/ JIM GORMAN $ /15/ JANELL HANSEN $4, /15/ JAMEL SCOTT $2, /15/ III JAMES SMITH $3, /15/ ASGARD PROPERTIES, LLC $ /252 Page: 18/64

138 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/15/ KEVIN OLIVIER $ /15/ PACIFIC PROPERTIES NW LLC $ /15/ JOHN VANDENBERG $ /15/ JOHN STILLING $2, /15/ JAMES PEARCE $3, /15/ JR FORD MULLEN $4, /15/ MARK SCHNELL $2, /15/ KATE CRONON $ /15/ JR JAMES BAINARD $1, /15/ JOHN AGYAPONG $3, /15/ MONICA CHRISTENSEN $4, /15/ DARLA FREEMAN $ /15/ JASON CHENG $ /15/ JBL - EVERETT LLC $5, /15/ KAITLIN WHITE $4, /15/ HENLEY USA, LLC $ /15/ JOHN MOORE $2, /15/ JAIME POWLESLAND $3, /15/ JUDITH HINDERLIE $5, /15/ JOSEPH BAGOCKI $2, /15/ JUDITH GUSTAFSON $ /15/ JOSEPH FANCELLA $2, /15/ NATHAN JUSTUS $5, /15/ KALIAPPAN SATHAPPAN $4, /15/ NITESH BAKLIWAL $5, /15/ JENNIFER WALLENBERG $ /18/ MADHUSUDANA KATTA $ /18/ RICKIE HANSKEN $17, /18/ LYNN HUNTER $4, /18/ ROBERT MCMAHON $3, /18/ LAWRENCE CUFLEY $4, /18/ PHIL FRIEDRICH $5, /252 Page: 19/64

139 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ KENT ELLEFSON $1, /18/ KLONDIKE MANOR, LLC $1, /18/ ROBERT GALLAGHER $4, /18/ KENNETH SMITH $3, /18/ ROBERT EDWARDSEN $3, /18/ PAUL BORCHERT $3, /18/ NORTH CREEK SELF STORAGE $5, /18/ KENNETH ANDERSON $2, /18/ NORBERT HERTL $ /18/ PAUL FERRARI $2, /18/ KEN MORRELL $4, /18/ PAMELA GRUDIN $ /18/ NORMAN OLSEN $5, /18/ KENNETH O'DONNELL $2, /18/ RICHARD LAMOUREUX $5, /18/ REBECCA SCHIRLE $3, /18/ RANJIT NAIR $4, /18/ RHIANNON DRAKE $4, /18/ OLGA ILLARIONOVA $4, /18/ PAUL MILLER $2, /18/ REBECCA WRIGHT $4, /18/ KENNETH ROOT $ /18/ LOREN WEST $ /18/ RICHARD TAYLOR $4, /18/ NORTHEND GROUP LLC $ /18/ PNT PROPERTIES LLC $ /18/ LES ARNOTT $ /18/ CHARLOTTE FRITZ $ /18/ NOAH PESTER $2, /18/ RICHARD NICHOLS $ /18/ RANDY SCHULTZ $4, /18/ R VANHOLLEBEKE $3, /252 Page: 20/64

140 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ RICHARD RUSSELL $3, /18/ ROBERT KOONCE $2, /18/ DAVID LITTLE $2, /18/ PUNEET SINGLA $3, /18/ LINDA BAUMGARTNER $5, /18/ KEITH LYONS $ /18/ KENNETH HENDERSON $4, /18/ LES ALLEN $3, /18/ KEN FITZGERALD $ /18/ LARRY VIUST $1, /18/ PATRICIA WEHMEYER $ /18/ SMITH BROTHERS CONST $ /18/ KRIS SPRATLEN $ /18/ ANTONIO MORA $ /18/ RAVI KANTH PONNAM $3, /18/ LARRY NEWCOMB $5, /18/ PAUL ROBERTS $3, /18/ LINDA GABOUREL $5, /18/ CYNTHIA THIES $2, /18/ PATRICK BERTIAUX $ /18/ LINDSEY HELLER $2, /18/ RICHARD FLEISCHER $4, /18/ KOK CHEAH $5, /18/ ROBERT CRICHTON $2, /18/ KONA TENO PROPERTIES LLC $5, /18/ KYLE JUNGK $3, /18/ PACIFIC RIDGE HOMES $ /18/ NORTHWEST MST LLC $ /18/ RICHMOND AMERICAN HOMES OF WA INC $5.00 9/18/ RICHARD WETMORE $2, /18/ RANDALL HOCHBERGER $5, /18/ ROBERT HERING $2, /252 Page: 21/64

141 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ LESLIE PARRISH $1, /18/ LISA THOMPSON $3, /18/ LAUREN SOLBAKKEN $4, /18/ PAULA JONESGONG $4, /18/ RICHARD TORGESON $3, /18/ CHARIS TERRAY $ /18/ LAURA ELLIS $3, /18/ R BRIAN ROWSE $3, /18/ RANDALL YATES $2, /18/ PAUL GLYER $3, /18/ LAUREN SNYDER $4, /18/ PETER EVERETT $2, /18/ ROBERT HARRIS $1, /18/ LYMAN CARPENTER $1, /18/ PHILIP NICHOLS $2, /18/ LARRY WILSON $2, /18/ ROBERT KREBS $1, /18/ SHERRON FISHER $7.04 9/18/ PHILIP LOVELL $3, /18/ POONAM SIGROHA $4, /18/ KYLE BURGESS $ /18/ PAOLO POLINTAN $3, /18/ KIMBERLEY FAY $2, /18/ JOY DIXON $2, /18/ STEVE CROFFUT $ /18/ KEVIN ZWEBER $4, /18/ AMAIRANI GILMORE $ /18/ RITA SNYDER $2, /18/ RAILI CALVERT $2, /18/ ROBERT GATES $3, /18/ KEITH BINKLEY $4, /18/ LINDA WILLIAMS $3, /252 Page: 22/64

142 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ PAULA JACOBY $2, /18/ NORINA RAMIREZ $1, /18/ RICHARD BECKERT $3, /18/ PAUL HAFFNER $5, /18/ KATHLEEN HALL $ /18/ KENNETH PORTER $3, /18/ KURT PHILLIPS $5, /18/ SHRUTI KANE $ /18/ LAURA MACLEOD $2, /18/ RAYMON GRAY $3, /18/ MICHAEL GROVER $ /18/ LAURIE EBERLI $4, /18/ ROBERT MITCHELL $3, /18/ KIRSTEN PAUST $3, /18/ REBECCA RAELEN $4, /18/ POORNA MALLA $4, /18/ RICHARD DUMO $2, /18/ KRYSTAL TUTCHTONE $ /18/ PAT SHARPE $2, /18/ KENNETH PERKINS $ /18/ RICHARD BIERMANN $5, /18/ RICHARD WILSON $3, /18/ LAUREL BIRD $4, /18/ LYNN CRAWFORD $4, /18/ KRISHNA TAMMA $4, /18/ KIM ROCHAT $5, /18/ KENNETH RIPLEY $2, /18/ REBECCA ORAM $3, /18/ LOUISE KOEHN $ /18/ KURT WINTERHALTER $3, /18/ KERRY LANGAN $3, /18/ KELLY MENDENHALL $1, /252 Page: 23/64

143 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ NORMAN AADLAND $4, /18/ KEVIN APGAR $2, /18/ KYLE WEISBROD $3, /18/ PETER MESSINGER $3, /18/ KEN DAMMAND $5, /18/ LEA ZENGAGE $ /18/ RANDOLPH MCCORMACK $4, /18/ ROBERT MCCOY $1, /18/ ROBERT EYLER $2, /18/ LESLIE HUGHES $2, /18/ OMAR PEREZ $3, /18/ LONES TUSS $ /18/ JUDY HULSE $ /18/ KIRSTIN MUELLER $5, /18/ ROBERT KRUPKA $2, /18/ LORRIE MOREY $1, /18/ NORMA MILLER $5, /18/ PAUL LIPPERT $3, /18/ RICHARD EGER $1, /18/ REBEKAH HENDERSON $5, /18/ ROBERT COOGLE $3, /18/ CHRISTINE COOPER $ /18/ LORI RODDEN $2, /18/ KURT E GARNER $3, /18/ PUSHPALATA MANDAL $4, /18/ LYNN ERICKSON $3, /18/ LAURA MOON $ /18/ RICHARD MYHRE $ /18/ ROBERT HALLER $ /18/ LYNN DELAMARE $2, /18/ KIERON GILLMORE $1, /18/ RAY WEISGERBER $2, /252 Page: 24/64

144 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ LORI LOVE $2, /18/ LEO FRITSCHEN $4, /18/ KELLY BYRNES BLAKE $1, /18/ PETER VEZZONI $ /18/ LINDA MACKE $4, /18/ LK STEVENS SCHOOL DIST #4 $ /18/ LAURETTE SIMMONS $2, /18/ LEONARD BURKE $4, /18/ KIM KUNZ $1, /18/ LOIS MATTHEWS $5, /18/ RICHARD MORTON $1, /18/ KRISTEN CONNER $1, /18/ CORNERSTONE HOMES $6.36 9/18/ BENJAMIN KALLAY $ /18/ KENNETH MORRIS $ /18/ RAMYA CHAKRAVARTHY $ /18/ RANGASAMY ELANGOVAN $4, /18/ HOLLAND RESIDENTIAL LLC $ /18/ LAKEWOOD SCHOOL DIST 306 $ /18/ ROBERT KLUZ $ /18/ PREDRAG BOJIC $4, /18/ LEE KIMMELMAN $2, /18/ TAYLOR THOMPSON $ /18/ ROBERT DICKINSON $4, /18/ PAUL VEXLER $5, /18/ RICHARD ELLER $5, /18/ RANDY TAVENNER $2, /18/ ROBERT JUNGLOV $5, /18/ KURT KASSAHN $3, /18/ LYNN BARKER $2, /18/ NANCY HARRIS $ /18/ RICHARD WELDON $2, /252 Page: 25/64

145 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/18/ KRISHNA KANIKE $4, /18/ PHILLIP HILLHOUSE $2, /18/ PATTI CHASE $5, /18/ RICHARD MARIN $4, /18/ LINDA INGLIN $3, /18/ LORI MCCONNELL $4, /18/ LINDA MOTT $3, /18/ LORNA LOWENTHAL $1, /18/ RACHEL ADAMS $4, /18/ KENNETH MACDICKEN $2, /18/ PAULA BURRIS $ /19/ ANTHONY COOPER $1, /19/ ROGER DITTO $1, /19/ NORTH POINT APTS $ /19/ BARBARA CLEVENGER $5, /19/ ROBIN GOEBEL $3, /19/ ASHISH GARG $3, /19/ ROBIN MAUER $1, /19/ KRISTINE ERICKSON $ /19/ WESLEY LOPEZ $ /19/ WILLIAM LEFLEY $ /19/ J DEREK ROBERTS $ /19/ STEVEN JONES $ /19/ BETH ROBINWEILER $3, /19/ OLUFEMI ADEPOJU $ /19/ SIERRIA UNDERDOWN $ /19/ BRUCE EKLUND $3, /19/ TOM BEAN $ /19/ AARON MERRITT $1, /19/ BRONWEN ONEILL $4, /19/ CARL COLBURN $3, /19/ ROBERT OSBORN $3, /252 Page: 26/64

146 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/19/ BRUCE NORRIS $4, /19/ ROBERT MOONEY $4, /19/ MELISSA GROFF $ /19/ ABU MARCOSE $4, /19/ RODNEY ROBINSON $2, /19/ EVAN REMENIH $ /19/ BARBARA RILEY $3, /19/ BOBBIE ALLEN $5, /19/ ROD EPPS $1, /19/ ROBERT WENTE $1, /19/ BARBARA BANSENAUER $1, /19/ BRETT PORTER $3, /19/ BRIAN TERHUNE $ /19/ ROBERT PIERRE $ /19/ JEFFREY BANKS $ /19/ DANIELA STEWART $ /19/ ANDREW LOCH $1, /19/ RUCKER LLC $3, /19/ ROBERT TAFT $1, /19/ MIKA HADEMAN $ /19/ ROGER GUENTHER $4, /19/ ANTHONY PITTENGER $3, /19/ ROBERT RIVEIRA $1, /19/ ROGER BONEHAM $3, /19/ ANDREW CAMPION $4, /19/ ROBERT PETERS $ /19/ ROBERTA JAQUISH $5, /19/ KRISHNA PRASAD ARAVINDA PRASAD $ /19/ AMY EGBERT $3, /19/ ASHLEY LOVETT $ /19/ CHOONJA CHUNG $ /19/ ANGELA VEEDER $1, /252 Page: 27/64

147 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/19/ BRUCE JOHNSTONE $2, /19/ KATHERINE YANG $ /19/ HELEN PETERSON $6.70 9/19/ ROBERT ESPE $3, /19/ BRYAN AUSTIN $5, /19/ WON KYUNG PARK $ /19/ LEON NUNEZ $ /19/ ANDREW PERRY $2, /19/ ROBIN COOPER $3, /19/ MICHAEL LAZZARI $ /19/ ALEKSANDER SVYATENKIY $ /19/ JOSHUA KANGAS $ /19/ ANGIE COLEMAN $ /19/ AARON PULLEN $2, /19/ ANDREY BAKHAREV $2, /19/ HEIDI GUINN $ /19/ TROY NOBLE $ /19/ HARLEE SAWYER $ /19/ PATRICE WELCH $4, /19/ PAUL RYNER $ /19/ ANDREW HAMACK $ /19/ ANDREA BECKER $4, /19/ ROBIN MCGEE $2, /19/ JACOB MARTIN $ /19/ LISA MARTIS $ /19/ JAMES MARTIN $ /19/ ROBIN MONTEITH $1, /19/ ROBIN WESTERN $ /19/ BRADLEE WICK $4, /19/ WOODWAY ESTATES $ /19/ DAARLANDT PARTNERS INC $ /19/ ANGELA LEVINGSTON $ /252 Page: 28/64

148 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/19/ ROBERT PERRY $4, /19/ RODNEY JOHNSON $ /19/ ALISSA DERSOM $3, /19/ ANURADHA ANNATHURAI $3, /19/ LEONORE SCHOEN $ /19/ KARLETTE SCHEWE $ /19/ ALFONSO MENDOZA $ /19/ STRATA NICKEL LLC $ /19/ BONNIE JUNEAU $5, /19/ SHARON HARVEY $6.04 9/19/ HEATHER SMITH $ /19/ ANDREA NICHOLS $2, /19/ ROBERT FOSTER $ /19/ ELIZABETH WRIGHT $ /19/ DANIELLE BROWN $ /19/ CHRISTOPHER WARDZALA $ /19/ LYNDA OTT $ /19/ BENJAMIN JOHNSON $ /19/ BETSY HARRIS $4, /19/ ALAN MARSH $5, /19/ A HARRIGAN $2, /19/ ARLINGTON SCHOOL DIST $1, /19/ ASHLEY DAVIS $ /19/ WHITNEY HORNBECK $ /19/ RICHARD MCALLISTER $2.07 9/19/ ERIC GASPAR MENDEZ $ /19/ CHING CHAN $ /19/ LAUREN HAYES $ /20/ DAVID SMITH $3, /20/ ROGER NEUMAIER $2, /20/ JUDY BROTHERTON $3, /20/ KAM XAYAVONG $3, /252 Page: 29/64

149 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/20/ JAMES POTTERF $4, /20/ ADAM MONTALVO $4, /20/ PROJECT S10 LLC $ /20/ IRY JONES $3, /20/ WAYNE BREM $4, /20/ EVAN WEISDEPP $3, /20/ CURRAN FRITTS $ /20/ MARIAN SMITH $2, /20/ DANIEL SIMONS $3, /20/ VIKRAM TUMMALA $3, /20/ RUTH AUCKLAND $ /20/ CHRISTINE VARGA $3, /20/ SARAH BRINKERHOFF $5, /20/ DENNIS WACKERBARTH $4, /20/ DAVID BAUS $1, /20/ WILLIAM SINGLETON $3, /20/ CORINNA HUFFAKER $3, /20/ MARK MOREL $ /20/ GREG TAYLOR $2, /20/ STEVEN NARAMOR $9.93 9/20/ DAVID ROONEY $3, /20/ RYAN LAMBERT $2, /20/ DENNIS NELSON $3, /20/ KEIVIN FARGUHARSON $ /20/ SHANNON ROEDER $2, /20/ DAVID JONES $2, /20/ WILLIAM TUCKETT $2, /20/ DONETTE ROTTA $1, /20/ CLINT BUETOW $2, /20/ SHANE LORENZ $4, /20/ WILLIAM STYLES $3, /20/ VINCENT POWELL $2, /252 Page: 30/64

150 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/20/ VICHET TIEV $4, /20/ ROSEMARY CAMREN $3, /20/ DANIEL STEINBERG $3, /20/ SANJAYA BANDARAGODA $2, /20/ BREHON NESS $ /20/ SCOTT LEE $4, /20/ DAN RYAN $4, /20/ FRANK IVES $2, /20/ CHRISTINA MILLER $2, /20/ WALTER ANDERSON $2, /20/ JAMES CASPERS $4, /20/ VISHWANATH MANCHIKALAPATI $4, /20/ CHRISTOPHER CORLEY $2, /20/ SCOTT KINTZ $2, /20/ RYAN MAAS $4, /20/ JILL JOHNSTONE $4, /20/ VINITHA WILLSON $1, /20/ RON HERZOG $3, /20/ VINAY KAPADIA $2, /20/ MARGARET LYNCH $ /20/ GARY JESSOP $ /20/ W CHRIS SIMMONS $5, /20/ ROY ARNHOLD $3, /20/ ROSEMARY ESPE $3, /20/ JEANNE CABRAL $ /20/ DIANE BURKE $2, /20/ CYNTHIA HEYMAN $3, /20/ SANDRA BURKE $3, /20/ DONALD SUPAN $ /20/ CHRISTOPHER NATION $2, /20/ DAVID BAXTER $3, /20/ NOVENTIS $ /252 Page: 31/64

151 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/20/ SAMRIDHI MEHTA $4, /20/ CORY MARCHAND $1, /20/ BEVERLY BARRI $ /20/ JENNIFER FLORES $ /20/ COLE INDUSTRIAL INC $1, /20/ CAROLYN POWELL $5, /20/ WILLIAM KIDD $5, /20/ COLIN PENRY $2, /20/ SEAN HOLLOWELL $2, /20/ WILLIAM SWANDER $5, /20/ RONALD SERLES $2, /20/ CLIFF BENSON $3, /20/ DAVID KING $2, /20/ ROSS CARBO $1, /20/ WILLIAM TRI $ /20/ ROXANNE MARTWICK $2, /20/ VINCE WERNER $4, /20/ ROSS JEKEL $ /20/ GRANT CHRISTENSEN $ /20/ ELIZABETH NELSON $ /20/ ROLAND CLARK $3, /20/ CHRISTIAN JOHNSTONE $3, /20/ DAVID BONEHAM $4, /20/ WORK OPPORTUNITIES $1, /20/ VICTOR WADDELOW $2, /20/ CHUCK JENSEN $3, /20/ CHRIS GARDNER $1, /20/ SANDHYARANI DODDI $4, /20/ RUSLAN NESTERENKO $5, /20/ SALLY NICKELSON $ /20/ SAIKIRAN PALLEY $1, /20/ RYAN RONNELL $3, /252 Page: 32/64

152 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/20/ CASTLE DWELLERS INC $1, /20/ SCOTT MARGERUM $2, /20/ WANRONG LI $ /20/ AUTUMN GROVE LLC $ /20/ DARYL JOHNSON $1, /20/ DAVID KUHLMAN $5, /20/ VALENTIN LAPITSKIY $ /20/ ROGER KENNEDY $2, /20/ CONNIE HOCKEMA $1, /20/ PHI TRAN- CAO $ /20/ SIDDHARTH PHADNIS $ /20/ ELIZABETH MCKEE ZHERKA $6.97 9/20/ W DEAN SMITH $ /20/ JIM DENT $4, /20/ ELLIOTT CHEAP $4, /20/ SEAN SIMON $4, /20/ RONALD STANHOUSE $1, /20/ SANJIV VORA $4, /20/ RONALD VAN DERMEULEN $ /20/ OSCAR RAMIREZ $ /20/ ROSLYN REGUDON $2, /20/ CLIFF MACDICKEN $1, /20/ VERNON MCRAE $4, /20/ SCOTT BORTHWICK $2, /20/ CHERYL MATAKIS $3, /20/ ROSE LESMITH $ /20/ JOSEPH CHUNG $ /20/ XAVIER LUCAS $3, /20/ VICKIE LATTA $2, /20/ SANDRA MCDONALD $ /20/ DANIEL LEWINSKI $2, /20/ WILLIAM ROWE $1, /252 Page: 33/64

153 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/20/ KEITH SWAIN $2, /20/ RUSS TILTON $2, /20/ DEBRA KOSKY $2, /20/ VERONICA ROETCISOENDER $4, /20/ NORTHWEST CHILD $ /20/ CHRISTINE CULL $2, /20/ DEEPTHI MUDUNURI $4, /20/ WAYNE LAUERMAN $5, /20/ MANYUN LING $ /20/ CHARLES BACKMAN $5, /20/ WILLIAM BRITZ $5, /20/ WARM HEARTH REAL ESTATE HOLDING $1, /20/ EMILY HAUSER-LEDBETTER $ /20/ DANIEL OBRIEN $5, /20/ RONAN ANTONE $3, /20/ JEAN MOHR $ /20/ RONALD BENTON $ /20/ RUTH BENEDICT-MCSTOTT $1, /20/ YULIYA NEFEDOV $5, /20/ CRYSTAL FRIDAY $2, /20/ DAVID ADAMS $ /20/ CHANDRAOBULREDDY KOPPARTHI $3, /20/ KEVIN ALBERS $ /20/ YUCHI CHANG $3, /20/ VIRGINIA APPLE $3, /20/ RYAN THOMPSON $1, /20/ SCOTT SEBELSKY $2, /20/ ZACHARY HOENE $2, /20/ SALLY MORRISON $1, /20/ LYNNE ALEXANDER $ /20/ SESHASAYANARAO GRANDHI $2, /20/ DAVID TRUJILLO $ /252 Page: 34/64

154 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/20/ RYAN HAGUE $3, /20/ RENEE OLSON $ /20/ SCOTT PETH $1, /20/ LAUREL ROBERTS $ /20/ MICHAEL DALY $ /20/ ABDULLAH YAR $ /20/ ROCKEFELLER REHAB LLC $ /20/ WENDY VALENTINE $4, /20/ CAROLYN EASTMAN $1, /20/ VIVEK KOTA $4, /20/ JENNIFER FERRILL $3, /20/ SCOTT VANHOFF $ /20/ WAYNE LEWIS $2, /20/ WA GREEN LLC $3, /20/ JOSEPH WANJIKU $ /20/ DAVID GLIESSMAN $1, /20/ CLAUDIA WOOD $1, /20/ SCOTT CAUSBIE $4, /20/ RON SELIA $5, /20/ DANIEL WOLLIN $1, /20/ RUSSELL HARTNESS $3, /20/ WONG CHINA DOLL, LLC $ /20/ ELLEN PRITCHETT $4, /20/ WILLIAM HAYES $5, /20/ ROXANNE GROTJAHN $2, /20/ VIVIAN HENDERSON $5, /20/ SARA PAPANIKOLAOU $3, /20/ VIJAYA KUMAR PALLA SURESH $4, /20/ JORDYN HANSON $ /21/ VICTORIA MARCHETTI $8.92 9/21/ SHIRLEY KOENIG $ /21/ TERRY BENHAM $4, /252 Page: 35/64

155 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/21/ STEVEN STERNER $3, /21/ STEVEN ORAVETZ $ /21/ KEEGAN RUSSELL $ /21/ SONIA QUESTAD $2, /21/ TAMAS EROS $3, /21/ STEVEN HATZENBELER $3, /21/ RACHAEL USTORF $ /21/ JUNIOR SOTELO $ /21/ JUAN ESPINOZA $ /21/ STEVEN ERICKSON $5, /21/ STEVEN MACAULAY $ /21/ RUSSELL KASSELMAN $1, /21/ STARLITE INVESTORS LLC $3, /21/ SUN LEE $4, /21/ SHEILA RILEY $4, /21/ T BURPEE $4, /21/ JANE MORGAN $ /21/ STEVE KLETT $5, /21/ CAMELOT ASSOC LLC $ /21/ EMILY PETERSON $ /21/ HARBOUR HOMES $ /21/ ELIZABETH AZMITIA $ /21/ VERONICA NAJAR $ /21/ LEELA STRONG $ /21/ DANIEL SHEPLER $ /21/ AARON ANDRADE $ /21/ SR NICHOLAS ALDRICH $ /21/ JORDAN DUFFY $ /21/ STEVEN GREENEBAUM $ /21/ STEVEN KRANZ $ /21/ TERRY WALKER $3, /21/ SHAWN MEYER $4, /252 Page: 36/64

156 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/21/ SRINIVAS KABBI $4, /21/ STANLEY LABORE $5, /21/ SRINIVAS GUDURU $4, /21/ SHAWN ELINGS $ /21/ JR THOMAS CARNEY $ /21/ KHAMVING VANNARATH $ /21/ WILLIAM SHULL $ /21/ TAWNYA WILSON $4, /21/ STEPHANIE JANEWAY $ /21/ STACIE BAKER $ /21/ SUNG SUP YANG $5, /21/ SRINIVAS MAMIDALA $5, /21/ AMBER DIMARCO $ /21/ TRE KNIGHT $ /21/ STEPHEN FOX $3, /21/ SRIKANTH BANDARU $3, /21/ ALEX PHILLIPS $ /21/ STEVE OLSEN $3, /21/ STANLEY SMITH $ /21/ SHIRLEY BAURER $3, /21/ NORTHLAKE COURT, LLC $ /21/ WILLIAM RITCHIE $ /21/ STEVEN OLSEN $3, /21/ SIVA DOSAPATI $3, /21/ GEEK FORTRESS $ /21/ SIGMUND HANSON $1, /21/ TERRY ALLEN $ /21/ SUSANNE FOX $1, /21/ SUNNY CAREY $5, /21/ LIUDMYLA KLYMETS $ /21/ CATHOLIC COMMUNITY SERVICES $ /21/ TANYA CORAM $3, /252 Page: 37/64

157 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/21/ STANLEY GENT $5, /21/ STANWOOD COMMUNITY PRESCHOOL $3, /21/ DORIS ASARE $ /21/ MILAN IVANKIC $6.17 9/21/ KEELY SABOL $ /21/ SUKHWANT SOHI $4, /21/ SUSAN WILLCOX $3, /21/ BRIDGID RONEY $ /21/ SUZAN CARPENTER $1, /21/ JUDY BROTHERTON $ /21/ STACIE HEARST $2, /21/ SUSAN NEELY $3, /21/ TAMMIE ANTONSEN $4, /21/ MICHAEL FARRELL $ /21/ SHINE SAFAR $4, /21/ JAMES TUENGEL $ /22/ TRAVIS GIEBEL $2, /22/ MICHAELE JOHNSON $ /22/ TIANRUI WANG $ /22/ THOMAS WAHL $3, /22/ LAVON WOODEY $ /22/ TRAVIS KATZER $3, /22/ TOBIAS TEAL $1, /22/ RAYMOND MAKER $ /22/ ANNA SOTNIK $ /22/ TRAVIS VOGUE $4, /22/ TOM CRISP $3, /22/ TONY PEREZ $2, /22/ APRIL HARRISON $ /22/ JOSEPH CLARK $ /22/ ANASTASIA GRAY $ /22/ ALTISOURCE SINGLE FAMILY INC $ /252 Page: 38/64

158 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/22/ BELINDA HOLLEY $ /22/ TIMOTHY BRESSLER $4, /22/ ANNABELLE ROCKWOOD $ /22/ KENNETH MORRIS $5.00 9/22/ THOMAS HELLER $1, /22/ TIMOTHY COLLIER $ /22/ THOMAS ALBRIGHT $3, /22/ THOMAS SMITH $4, /22/ ALLEN CREEK CROSSING LLC $ /22/ LINDA AUCHTERLONIE $ /22/ JAMES MORGAN $ /22/ TYGRE ANDERSEN $4, /22/ STEVE MARIER $3, /22/ CODY DEZELAN $8.46 9/22/ TODD MCWILLIAMS $3, /22/ KAMIL NEMR $ /22/ JASON HAMER $ /22/ JAMES KUNZ $ /22/ ASHLEY LAMBERT $ /22/ RICHARD STEWART $ /22/ RON MORTON $ /22/ MICHAEL MASSENGILL $ /22/ CHARLES HUSUM $ /22/ CODY BRANTNER $ /22/ TOM BERKLEY $2, /22/ THOMAS FOSTER $2, /22/ TOM HARVILLE $3, /22/ JILLIAN VEITENHEIMER $ /22/ LESLIE PATINO $ /22/ AIMEE EATON $ /22/ KODEY TURNER $ /22/ DAVE HOLDEN $ /252 Page: 39/64

159 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/22/ MICHAEL DISTON $ /22/ CORAZON SUPERO $ /22/ KATHRYN GREGG $ /22/ KRISTI MCGLOAN $ /22/ LALENA CURRY $ /22/ THOMAS SPEAR $5, /22/ CHRIS BRITT $ /22/ GEORGEAN MADDY $ /22/ TINA THOMPSON $4, /22/ ANTHONY JAMES MOREAU $ /22/ JILL PERRIGOUE $ /22/ SOFT SHOTZ, LLC $ /22/ SAMANTHA SHIRA $ /22/ WICKLINE CONSTRUCTION $ /22/ LIBERTY GARDEN APARTMENTS $ /22/ KEITH GEPNER $ /22/ MILL CREEK SPORTS CARDS $ /22/ TOKI TONOOKA $ /22/ TIMOTHY KELLY $1, /22/ CEP III-MORNING RUN 13 LLC $9.61 9/22/ CHALIMPA MUPENDA $ /22/ ISAAC GRIFFENBERG $ /22/ DIONE GENAOVARGAS $ /22/ REBECCA DUNNE $ /22/ BCKY, INC $ /22/ CHRIS BECKETT $ /22/ JONATHAN LOBAUGH $ /22/ ALESHA CHAMBERS $ /22/ AARON LINGENFELTER $ /22/ OTTO SCHROEDER $ /22/ KIM HUMBLE $ /22/ CHRISTOPHER BOROWIAK $ /252 Page: 40/64

160 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 9/22/ GILBERTO SANDOVAL-ROJAS $ /22/ JOHN KNISELY $ /22/ JACKIE MITCHELL $9.08 9/22/ CRISTAL NUNEZ $ /22/ THERESA SWIFT $ /22/ TOM SUMME $3, /22/ THOMAS CURTIS $4, /22/ TODD BROWN $5, /22/ TRACEY TROUT $3, /22/ KIRSTEN GERO $ /22/ ANTHONY EBIO $ /22/ DALIA MENDEZ CHIMAL $ /22/ CONNOR TEAL $ /22/ SAMUEL TAFOLLA $ /22/ DENNIS BATES $ /22/ THOMAS LAWLER $5, /22/ TIBOR KORODY $3, /22/ RON PAJOMAN $ /22/ TIFFANY SORRELL $ /22/ REYES SORIANO PEREZ $ /22/ REALTY BROKERS INC $ /22/ CORNERSTONE HOMES $ /22/ REAVA DAVIS $10.49 Total: $2,547, /252 Page: 41/64

161 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/11/ WLD SIERRA LLC $2, /11/ AIRGAS INC $ /11/ APPLIED INDUSTRIAL TECH INC $ /11/ ASPLUNDH TREE EXPERT CO $31, /11/ AT&T CORP $ /11/ MATTHEW BENDER & COMPANY INC $1, /11/ CDW LLC $ /11/ CERIUM NETWORKS INC $11, /11/ CONSOLIDATED ELECTRICAL DISTRIBUTOR $1, /11/ NAVIA BENEFIT SOLUTIONS $2, /11/ FRONTIER COMMUNICATIONS NORTHWEST I $ /11/ FULL COMPASS SYSTEMS LTD $ /11/ HOWARD INDUSTRIES INC $5, /11/ KENWORTH NW INC $ /11/ LANDAU ASSOCIATES INC $1, /11/ LEOTEK ELECTRONICS USA LLC $14, /11/ LOWES COMPANIES INC $ /11/ MCFARLAND CASCADE HOLDINGS INC $45, /11/ N C MACHINERY CO $ /11/ NETWORK COMPUTING ARCHITECTS INC $1, /11/ OFFICE DEPOT INC $1, /11/ REXEL INC $ /11/ PUGET SOUND ENERGY INC $ /11/ RWC INTERNATIONAL LTD $ /11/ TERRACON CONSULTANTS INC $23, /11/ TESSCO INCORPORATED $2, /11/ THE CEI GROUP INC $6, /11/ MARCOO INC $ /11/ TOPSOILS NORTHWEST INC $1, /11/ UNITED PARCEL SERVICE $ /11/ GORDON TRUCK CENTERS INC $ /11/ WAGNER SMITH EQUIPMENT CO $3, /252 Page: 42/64

162 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/11/ WESTERN FACILITIES SUPPLY INC $ /11/ WILLIAMS SCOTSMAN INC $ /11/ WORKSPACE DEVELOPMENT LLC $7, /11/ ALLIED ELECTRONICS INC $4, /11/ ALS SPORTSWEAR $2, /11/ ARA COLLISION EVERETT INC $3, /11/ CONTRACT HARDWARE INC $4, /11/ GREENSHIELDS INDUSTRIAL SUPPLY INC $2, /11/ DAYVILLE HAY & GRAIN INC $ /11/ DESIGNER DECAL INC $1, /11/ DOUBLE EAGLE LANDSCAPE INC $5, /11/ THE HO SEIFFERT COMPANY $ /11/ EVERETT SAFE AND LOCK INC $ /11/ EVERETT STEEL INC $ /11/ FIRE CHIEF EQUIPMENT CO INC $1, /11/ K&L GATES LLP $ /11/ CITY OF MOUNTLAKE TERRACE $3, /11/ NORTHWEST CASCADE INC $2, /11/ NORTH SOUND HOSE & FITTINGS INC $ /11/ O C TANNER RECOGNITION CO $ /11/ SEATTLE AUTOMOTIVE DISTRIBUTING INC $ /11/ SEBRIS BUSTO JAMES $16, /11/ SOUND SAFETY PRODUCTS CO INC $ /11/ STAPLES CONTRACT & COMMERCIAL INC $ /11/ SUMMIT LAW GROUP PLLC $3, /11/ TOTAL LANDSCAPE CORP $18, /11/ US HEALTHWORKS MEDICAL GROUP OF WA $ /11/ PILCHUCK EQUIPMENT RENTALS AND SALE $13, /11/ KOHLS DEPARTMENT STORES INC $24, /11/ GRAYBAR ELECTRIC CO INC $1, /11/ ALTEC INDUSTRIES INC $1, /11/ ANIXTER INC $13, /252 Page: 43/64

163 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/11/ AT&T CORP $3, /11/ SITEONE LANDSCAPE SUPPLY HLDNG LLC $1, /11/ LESLIE KENNEDY $2, /11/ RES GROUP NW LLC $ /11/ ARC DOCUMENT SOLUTIONS LLC $1, /11/ ARKIVE INFORMATION MANAGEMENT $ /11/ RAMON DIAZ PACHECO $ /11/ JPMORGAN CHASE BANK NA $2, /11/ COGENT HOLDINGS-1 LLC $ /11/ WASHINGTON CAPITAL JOINT MST TR $2, /11/ CADMAN MATERIALS INC $6, /11/ AMERICAN CRAWLSPACE & PEST SERVICES $ /11/ ROD HOPKINS $ /11/ SMART ENERGY TODAY INC $7, /11/ SMOKEY POINT PROFESSIONAL GROUP LLP $1, /11/ SNOHOMISH HEATING & AIR CONDITIONIN $1, /11/ STILLY RIVER MECHANICAL $ /11/ RANDY LAVALLE $ /12/ NEW CINGULAR WIRELESS PCS LLC $40, /12/ LAND PRO GROUP, INC $1, /12/ N C MACHINERY CO $3, /12/ PUGET SOUND ENERGY INC $ /12/ SILVER LAKE WATER & SEWER DISTRICT $ /12/ SOUND PUBLISHING INC $ /12/ VALMONT INDUSTRIES INC $ /12/ WORKSPACE DEVELOPMENT LLC $13, /12/ MCLARENS YOUNG INTERNATIONAL INC $5, /12/ PACIFIC RAINIER ROOFING INC $ /12/ POWER SYSTEMS CONSULTANTS INC $20, /12/ ROBERT M SHEEHAN $ /12/ WESTERN ELECTRICITY COORDINATING CO $25, /12/ MALLORY SAFETY AND SUPPLY LLC $ /252 Page: 44/64

164 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/12/ SURE POWER CONSULTING LLC $25, /12/ MYLES ROBERTS $ /13/ VOID $0.00 9/13/ VOID $0.00 9/13/ ROBERT HOKANA $ /13/ ALS GROUP USA CORP $ /13/ THE CADMUS GROUP INC $8, /13/ HOWARD INDUSTRIES INC $24, /13/ LANDAU ASSOCIATES INC $12, /13/ LOWES COMPANIES INC $ /13/ NORTH COAST ELECTRIC COMPANY $ /13/ REXEL INC $4, /13/ REPUBLIC SERVICES INC $ /13/ R W BECK GROUP INC $25, /13/ RWC INTERNATIONAL LTD $5, /13/ STELLAR INDUSTRIAL SUPPLY INC $ /13/ TOPSOILS NORTHWEST INC $ /13/ UNUM LIFE INSURANCE COMPANY OF AMER $31, /13/ GORDON TRUCK CENTERS INC $ /13/ WESCO GROUP INC $ /13/ WW GRAINGER INC $2, /13/ EVERETT STEEL INC $ /13/ KEMP WEST INC $111, /13/ BRIAN DAVIS ENTERPRISES INC $2, /13/ MORGAN SOUND $ /13/ MT HOOD FASTENER CO $ /13/ PACIFIC CABLE CONST INC $ /13/ POWER-GLASS INC $1, /13/ RELIANCE MANUFACTURING CORPORATION $6, /13/ LOUIS F MATHESON CONSTRUCTION INC $1, /13/ RMG FINANCIAL CONSULTING INC $1, /13/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI $1, /252 Page: 45/64

165 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/13/ SOUND SAFETY PRODUCTS CO INC $1, /13/ ULINE INC $1, /13/ SAMPSA M WRIGHT $10, /13/ WYNNE AND SONS INC $ /13/ INTERSECTION MEDIA HOLDINGS INC $4, /13/ CAPITAL ARCHITECTS GROUP PC $10, /13/ LAMAR TEXAS LTD PARTNERSHIP $5, /13/ KELLY LUGAR $4, /13/ NANCY L BAUER $ /13/ ADVENT LUTHERAN CHURCH $4, /13/ TRIMBLE INC $30, /13/ SYNERGY SERVICES GROUP LLC $9, /13/ HP INC $1, /13/ MCDONALDS CORPORATION $8, /14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ AVISTA CORP $33, /14/ CLATSKANIE PEOPLES UTILITY DISTRICT $3, /14/ COONER SALES COMPANY $2, /14/ EXPRESS IMAGING SYSTEMS LLC $ /14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $ /252 Page: 46/64

166 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $0.00 9/14/ VOID $ /252 Page: 47/64

167 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/14/ VOID $0.00 9/14/ FASTENAL COMPANY $ /14/ HARGIS ENGINEERS INC $1, /14/ LEOTEK ELECTRONICS USA LLC $15, /15/ EDMOND HURST $4, /15/ RYAN G SEVIGNY $2, /15/ ALEISHA M FRENCH $ /15/ ALS GROUP USA CORP $7, /15/ ANIXTER INC $38, /15/ BICKFORD MOTORS INC $ /15/ CONSOLIDATED ELECTRICAL DISTRIBUTOR $15, /15/ COSTCO WHOLESALE CORP $5, /15/ HATLOE DECORATING CENTER INC $ /15/ CITY OF LAKE STEVENS $ /15/ LOWES COMPANIES INC $ /15/ MAYES TESTING ENGINEERS INC $ /15/ MCFARLAND CASCADE HOLDINGS INC $17, /15/ MOTOR TRUCKS INC $ /15/ NORTH COAST ELECTRIC COMPANY $ /15/ NORTHSTAR CHEMICAL INC $1, /15/ OFFICE DEPOT INC $1, /15/ ORRICK HERRINGTON & SUTCLIFFE $2, /15/ POTELCO INC $6, /15/ R2 RESOURCE CONSULTANTS INC $2, /15/ RAGAN COMMUNICATIONS INC $ /15/ REDWOOD SOFTWARE INC $15, /15/ RWC INTERNATIONAL LTD $4, /15/ SOUND PUBLISHING INC $ /15/ SPX TRANSFORMER SOLUTIONS INC $2, /15/ STAR RENTALS INC $6, /15/ STELLAR INDUSTRIAL SUPPLY INC $7, /15/ TACOMA SCREW PRODUCTS INC $ /252 Page: 48/64

168 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/15/ MARCOO INC $2, /15/ THERMAL SUPPLY INC $ /15/ TOPSOILS NORTHWEST INC $ /15/ TOYOTA TSUSHO MATERIAL HANDLING AME $ /15/ UNITED PARCEL SERVICE $ /15/ UNITED SITE SERVICE OF NEVADA INC $ /15/ GORDON TRUCK CENTERS INC $ /15/ VAN NESS FELDMAN LLP $7, /15/ WAGNER SMITH EQUIPMENT CO $ /15/ WILBUR-ELLIS HOLDINGS II INC $ /15/ WW GRAINGER INC $ /15/ AARD PEST CONTROL INC $ /15/ CHAMPION BOLT & SUPPLY INC $1, /15/ CUZ CONCRETE PRODUCTS INC $ /15/ DIRECTV LLC $ /15/ DUNLAP INDUSTRIAL HARDWARE $1, /15/ ESSNOVA SOLUTIONS INC $25, /15/ EVERETT STEEL INC $ /15/ RYAN SCOTT FELTON $ /15/ GENERAL PACIFIC INC $ /15/ GEOENGINEERS INC $9, /15/ LEGACY2012 LLC $13, /15/ BRIAN DAVIS ENTERPRISES INC $ /15/ NORTHWEST CASCADE INC $ /15/ PACIFIC CABLE CONST INC $32, /15/ PACIFIC TRADE SYSTEMS INC $1, /15/ PF PETTIBONE & CO $10, /15/ RUBATINO REFUSE REMOVAL INC $2, /15/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI $1, /15/ UNITED REFRIGERATION INC $ /15/ VISION METERING LLC $8, /15/ WEX BANK $44, /252 Page: 49/64

169 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/15/ BLACKHAWK ENGAGEMENT SOLUTIONS (MD) $178, /15/ MAGNUM POWER LLC $8, /15/ ANIXTER INC $31, /15/ MALLORY SAFETY AND SUPPLY LLC $6, /15/ SITEONE LANDSCAPE SUPPLY HLDNG LLC $ /15/ COLTON L BAILEY $ /15/ WEYERHAEUSER COMPANY $1, /15/ LEE ENERGY LLC $9, /15/ PACIFIC LOGGING LLC $11, /15/ AMERICAN AIR FILTER CO INC $ /15/ JPMORGAN CHASE BANK NA $7, /15/ JJ&B EVERETT LLC $1, /15/ D2000 SAFETY INC $13, /15/ FEDERAL AVIATION ADMINISTRATION $2, /15/ GMES LLC $ /15/ NORTHWEST FLUID SOLUTIONS INC $ /15/ DIANA JOAN ELLIS BEGEMAN $ /15/ VIVID LEARNING SYSTEMS INC $53, /15/ AMERICAN CRAWLSPACE & PEST SERVICES $ /15/ BREEZE FREE INC $ /15/ BRENNAN HEATING & AC LLC $2, /15/ HP INC $2, /15/ MARYSVILLE SCHOOL DISTRICT #25 $7, /15/ METRO GROUP LLC $5, /15/ PROLIGHT LED LLC $ /15/ SMART ENERGY TODAY INC $6, /15/ SCRIBER CREEK LLC $37, /15/ LEIDOS ENGINEERING LLC $19, /15/ VICTOR HUGO GOMES $10, /18/ ALS GROUP USA CORP $ /18/ ASPLUNDH TREE EXPERT CO $34, /18/ BICKFORD MOTORS INC $ /252 Page: 50/64

170 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/18/ CDW LLC $1, /18/ CRYSTAL SPRINGS WATER CO $2, /18/ CITY OF DARRINGTON $5, /18/ CITY OF GOLD BAR $6, /18/ HD SUPPLY WATERWORKS LTD $1, /18/ INTERCONTINENTAL EXCHANGE HOLDINGS $2, /18/ CITY OF LAKE STEVENS $ /18/ CITY OF LAKE STEVENS $ /18/ LOWES COMPANIES INC $ /18/ CITY OF MARYSVILLE $140, /18/ MICHAEL AND ALEXANDER PLLC $ /18/ CITY OF MOUNTLAKE TERRACE $51, /18/ NEWARK CORP $ /18/ REXEL INC $ /18/ REXEL INC $3, /18/ PUGET SOUND ENERGY INC $ /18/ RESOURCE ASSOCIATES INT'L $4, /18/ REPUBLIC SERVICES INC $ /18/ ROMAINE ELECTRIC CORP $ /18/ RWC INTERNATIONAL LTD $ /18/ SOUND PUBLISHING INC $ /18/ CITY OF SULTAN $23, /18/ SUPERIOR GLASS INSTALLATIONS INC $1, /18/ TESSCO INCORPORATED $4, /18/ MARCOO INC $3, /18/ THERMAL SUPPLY INC $ /18/ TOPSOILS NORTHWEST INC $ /18/ TOYOTA TSUSHO MATERIAL HANDLING AME $ /18/ UNITED SITE SERVICE OF NEVADA INC $1, /18/ STATE OF WASHINGTON $7, /18/ WASHINGTON ENERGY SVCS CO $6, /18/ WAGNER SMITH EQUIPMENT CO $1, /252 Page: 51/64

171 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/18/ WESCO DISTRIBUTION INC $11, /18/ WEST COAST PAPER CO $4, /18/ WORKSPACE DEVELOPMENT LLC $9, /18/ WW GRAINGER INC $2, /18/ ALLIED ELECTRONICS INC $ /18/ CITY OF ARLINGTON $88, /18/ CITY OF BOTHELL $90, /18/ CITY OF BRIER $12, /18/ CHAMPION BOLT & SUPPLY INC $ /18/ OTC GLOBAL HOLDINGS LP $ /18/ COLEHOUR & COHEN INC $101, /18/ CONSOLIDATED SUPPLY CO $ /18/ CONTRACT HARDWARE INC $4, /18/ CITY OF EDMONDS $110, /18/ CITY OF INDEX $ /18/ CITY OF LAKE STEVENS $61, /18/ LAKE STEVENS SEWER DIST $ /18/ MARTIN LUMBER & HARDWARE INC $ /18/ MCLARENS YOUNG INTERNATIONAL INC $ /18/ CITY OF MONROE $70, /18/ PACIFIC CABLE CONST INC $ /18/ PACIFIC PUBLISHING CO INC $ /18/ QUALCO ENERGY $5, /18/ ROHLINGER ENTERPRISES INC $ /18/ RUBATINO REFUSE REMOVAL INC $1, /18/ SEATTLE AUTOMOTIVE DISTRIBUTING INC $ /18/ SNOHOMISH COUNTY $ /18/ SOUND SAFETY PRODUCTS CO INC $ /18/ CITY OF STANWOOD $23, /18/ WALTER E NELSON CO OF WESTERN WA $6, /18/ TOWN OF WOODWAY $4, /18/ VOID $ /252 Page: 52/64

172 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/18/ CITY OF GRANITE FALLS $9, /18/ CONSOLIDATED ELEC DIST INC $ /18/ THE SHERWIN-WILLIAMS CO $ /18/ ALTEC INDUSTRIES INC $ /18/ ANIXTER INC $10, /18/ MALLORY SAFETY AND SUPPLY LLC $3, /18/ SITEONE LANDSCAPE SUPPLY HLDNG LLC $ /18/ METER READING HOLDING LLC $6, /18/ TRAVIS J MIRANDA $3, /18/ CORIX WATER PRODUCTS INC $ /18/ GMES LLC $ /18/ CADMAN MATERIALS INC $2, /18/ GREG GEORGE $3, /18/ CLEAN CRAWL INC $ /18/ CM HEATING INC $3, /18/ COZY HEATING INC $1, /18/ GB ENTERPRISES OF WASHINGTON LLC $1, /18/ CITY OF LYNNWOOD $152, /18/ CITY OF MUKILTEO $67, /18/ PACIFIC LAMP & SUPPLY CO $1, /18/ CITY OF SNOHOMISH $33, /18/ CITY OF EVERETT $533, /19/ AIRGAS INC $1, /19/ ARAMARK UNIFORM SVCS INC $4, /19/ AT&T CORP $3, /19/ AT&T CORP $ /19/ CERIUM NETWORKS INC $17, /19/ COMCAST OF WASHINGTON IV $4, /19/ DUNN LUMBER CO INC $9.57 9/19/ FRONTIER COMMUNICATIONS OF AMERICA $8, /19/ FRONTIER COMMUNICATIONS NORTHWEST I $1, /19/ NORTH COAST ELECTRIC COMPANY $2, /252 Page: 53/64

173 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/19/ OFFICE DEPOT INC $1, /19/ REXEL INC $ /19/ PUGET SOUND ENERGY INC $ /19/ CITY OF ARLINGTON $ /19/ SNOHOMISH COUNTY $ /19/ SNOHOMISH COUNTY $ /19/ SNOHOMISH COUNTY $ /19/ ALL BATTERY SALES AND SERVICE $ /19/ BEVERLYS AUTO LICENSING $ /19/ DUNLAP INDUSTRIAL HARDWARE $ /19/ BRIAN DAVIS ENTERPRISES INC $ /19/ PACIFIC CABLE CONST INC $ /19/ GARY PETERSEN $17, /19/ THE DETAILORS LLC $1, /19/ GREEN HOUSE DATA INC $1, /19/ VOID $0.00 9/19/ GRAYBAR ELECTRIC CO INC $1, /19/ GREG GEORGE $ /19/ CITY OF EVERETT $ /20/ AIRGAS INC $ /20/ ALS GROUP USA CORP $ /20/ AQUA TRONICS INC $ /20/ DOBLE ENGINEERING CO $ /20/ EQUIFAX INFORMATION SERVICES LLC $9, /20/ EXIDE TECHNOLOGIES INC $ /20/ L-COM INC $ /20/ MARSHALL SIGN INC $ /20/ MAYES TESTING ENGINEERS INC $ /20/ MCFARLAND CASCADE HOLDINGS INC $8, /20/ MOBILE MINI INC $ /20/ MOTOR TRUCKS INC $ /20/ NORTH COAST ELECTRIC COMPANY $1, /252 Page: 54/64

174 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/20/ PACIFIC SAFETY SUPPLY INC $10, /20/ POTELCO INC $78, /20/ PRYSMIAN CABLES & SYSTEMS USA LLC $18, /20/ TOPSOILS NORTHWEST INC $ /20/ TOYOTA TSUSHO MATERIAL HANDLING AME $1, /20/ WAGNER SMITH EQUIPMENT CO $ /20/ WEST COAST PAPER CO $2, /20/ WASHINGTON STATE NURSERY $1, /20/ ALL BATTERY SALES AND SERVICE $ /20/ ATLAS SUPPLY INC $2, /20/ CHAMPION BOLT & SUPPLY INC $1, /20/ DACO CORPORATION $3, /20/ EDGE ANALYTICAL INC $2, /20/ BRIAN DAVIS ENTERPRISES INC $ /20/ NELSON TRUCK EQUIPMENT CO INC $5, /20/ OWEN EQUIPMENT $7, /20/ RICOH USA INC $7, /20/ LOUIS F MATHESON CONSTRUCTION INC $1, /20/ SOUND SAFETY PRODUCTS CO INC $2, /20/ STOEL RIVES LLP $3, /20/ TECH PRODUCTS INC $ /20/ TRUE SURVEY SUPPLY INC $1, /20/ PIROD INC $ /20/ VISION METERING LLC $ /20/ LCS TECHNOLOGIES INC $2, /20/ ALTEC INDUSTRIES INC $ /20/ MALLORY SAFETY AND SUPPLY LLC $2, /20/ SERIO CONSULTING LLC $41, /20/ SNUGG HOME LLC $ /20/ EVERGREEN STATE SHEET METAL INC $ /21/ ARBITER SYSTEMS INC $1, /21/ CERIUM NETWORKS INC $51, /252 Page: 55/64

175 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/21/ EVERETT SOUND MACHINE WORKS INC $ /21/ FASTENAL COMPANY $ /21/ FRUHLING SAND & TOPSOIL INC $1, /21/ IBEW LOCAL #77 $59, /21/ JACO ANALYTICAL LAB INC $ /21/ KWIZCOM CORPORATION $2, /21/ LANDAU ASSOCIATES INC $2, /21/ MCFARLAND CASCADE HOLDINGS INC $16, /21/ MICHELS CORP MICHELS POWER DIVISION $97, /21/ MOBILE MINI INC $ /21/ MOTOR TRUCKS INC $ /21/ MR TRUCK WASH INC $3, /21/ ORIGAMI RISK LLC $4, /21/ ROMAINE ELECTRIC CORP $ /21/ RWC INTERNATIONAL LTD $ /21/ SPX TRANSFORMER SOLUTIONS INC $796, /21/ STAR RENTALS INC $ /21/ TOPSOILS NORTHWEST INC $ /21/ UNITED WAY OF SNOHOMISH COUNTY $5, /21/ WESCO DISTRIBUTION INC $ /21/ WILTON FAMILY PARTNERSHIP LP $5, /21/ TIRES TIRES TIRES INC $ /21/ BGC FINANCIAL LP $1, /21/ CORY STEVENS $ /21/ EDGE ANALYTICAL INC $ /21/ EMERALD SERVICES INC $ /21/ EVERETT STEEL INC $1, /21/ FIRE CHIEF EQUIPMENT CO INC $1, /21/ GENERAL PACIFIC INC $16, /21/ KEMP WEST INC $33, /21/ BRIAN DAVIS ENTERPRISES INC $ /21/ MID CENTRAL ELECTRIC INC $2, /252 Page: 56/64

176 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/21/ NORTHWEST HANDLING SYSTEMS INC $ /21/ PERFORMANCE ERGONOMICS LLC $2, /21/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI $2, /21/ UNITED REFRIGERATION INC $ /21/ US HEALTHWORKS MEDICAL GROUP OF WA $ /21/ CITY OF EVERETT $ /21/ PILCHUCK EQUIPMENT RENTALS AND SALE $ /21/ EDMONDS COMMUNITY SOLAR $27, /21/ GRAYBAR ELECTRIC CO INC $ /21/ ALTEC INDUSTRIES INC $ /21/ ANIXTER INC $20, /21/ MALLORY SAFETY AND SUPPLY LLC $ /21/ FINANCIAL CONSULTING SOLUTIONS INC $6, /21/ ARC DOCUMENT SOLUTIONS LLC $ /21/ NORTH SOUND AUTO GROUP LLC $ /21/ CADMAN MATERIALS INC $ /21/ ACCESS INFORMATION HOLDINGS LLC $ /21/ EVERGREEN STATE SHEET METAL INC $1, /21/ SAZAN GROUP INC $ /21/ SMART ENERGY TODAY INC $2, /22/ PUGET SOUND ENERGY $4, /22/ ALS GROUP USA CORP $ /22/ GALLAGHER BENEFIT SERVICES INC $1, /22/ THE GOLDEN CUP INC $1, /22/ MASTER BUILDERS ASSOCIATION $1, /22/ MAYES TESTING ENGINEERS INC $4, /22/ MOBILE MINI INC $ /22/ MOTOR TRUCKS INC $ /22/ MR TRUCK WASH INC $1, /22/ N C MACHINERY CO $ /22/ POTELCO INC $5, /22/ PRAXAIR DISTRIBUTION INC $ /252 Page: 57/64

177 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/22/ SISKUN POWER EQUIPMENT $ /22/ CITY OF SNOHOMISH $ /22/ SOUND PUBLISHING INC $ /22/ STELLAR INDUSTRIAL SUPPLY INC $3, /22/ STONEWAY ELECTRIC SUPPLY CO $ /22/ SUBURBAN PROPANE $ /22/ MARCOO INC $ /22/ TOPSOILS NORTHWEST INC $ /22/ US BANK NA $1, /22/ VIAMEDIA INC $ /22/ WIRELESS STRUCTURES CONSULTING INC $16, /22/ WORKSPACE DEVELOPMENT LLC $4, /22/ WW GRAINGER INC $ /22/ VALMONT COMPOSITE STRUCTURES INC $10, /22/ ARONSON SECURITY GROUP INC $3, /22/ BURKE ELECTRIC LLC $37, /22/ CHAMPION BOLT & SUPPLY INC $ /22/ CONTRACT HARDWARE INC $6, /22/ CUZ CONCRETE PRODUCTS INC $6, /22/ DICK'S TOWING INC $ /22/ DUNLAP INDUSTRIAL HARDWARE $1, /22/ EDMONDS SCHOOL DISTRICT NO 15 $2, /22/ EDS MCDOUGALL LLC $ /22/ GL SIMMS AND ASSOCIATES INC $1, /22/ HOUSING HOPE $1, /22/ POWER ENGINEERS INC $18, /22/ RICOH USA INC $ /22/ RIDGE TRUCKING INC $ /22/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI $ /22/ SOUND SAFETY PRODUCTS CO INC $ /22/ TWELVE THIRTY ONE INCORPORATED $ /22/ UNITED REFRIGERATION INC $ /252 Page: 58/64

178 Detailed Disbursement Report Accounts Payable Warrants Payment Date Payment Ref Nbr Payee Amount 9/22/ UNITED SALES ASSOC INC $1, /22/ ANIXTER INC $3, /22/ AUTOZONE PARTS INC $15, /22/ UFP WEST CENTRAL LLC $2, /22/ ARC DOCUMENT SOLUTIONS LLC $1, /22/ LEE ENERGY LLC $3, /22/ ARLINGTON HEIGHTS RD LLC $5, /22/ ROMAC INDUSTRIES INC $66, /22/ TH PARK PL HOMEOWNERS ASSOC $2, /22/ CHRISTINA HENSRUDE $8, /22/ SCOTT HENSRUDE $8, /22/ ALTERNATIVE LED LLC $5, /22/ GLASS BY LUND INC $ /22/ G&S HEATING COOLING & ELECTRICAL $2, Total: $5,099, /252 Page: 59/64

179 Detailed Disbursement Report Accounts Payable ACH Payment Date Payment Ref Nbr Payee Amount 9/12/ EDWARD PRIDE $ /12/ TIMOTHY EPP $ /12/ SUSAN LAUER $ /12/ ROBERT STEINER $ /12/ JASON ZYSKOWSKI $ /12/ JAMES MILLER $ /12/ BRIE'N MILLER $ /12/ MICHAEL SHAPLEY $ /12/ ADAM COUNTRYMAN $ /12/ IAN HUNTER $ /12/ KIMBERLY HAUGEN $ /12/ RYAN AMUNDSON $ /12/ KEVIN LAVERING $ /12/ KATHLEEN DEL SESTO $ /12/ DAVID GADDY $ /12/ MISTI MOORE $ /12/ PAUL JACOBSEN $ /12/ SCOTT BASOM $ /12/ DANIEL WOOLMAN $ /12/ LEE BACKHOLM $ /12/ MITCHEL VAN WEGEN $ /12/ GEORGE POHNDORF $1, /12/ LEROY GREENMAN $ /12/ ROBERT HOUSER $ /12/ DOUGLAS WILLIAMS $ /12/ MICHAEL MCCLELLAND $ /12/ ROBERT REED $ /12/ JOHN ROVER $ /13/ MATTHEW HOFFMAN $ /14/ KATIE MCEWEN $ /14/ KIMBERLEY LEE $ /14/ KYM HEGGUM $ /252 Page: 60/64

180 Detailed Disbursement Report Accounts Payable ACH Payment Date Payment Ref Nbr Payee Amount 9/14/ RYAN AMUNDSON $ /14/ DENISE CAVALLO $ /14/ GEORGE POHNDORF $ /14/ TREVOR VADEN $ /15/ JUAN MONTEZ $ /18/ PORTLAND GENERAL ELECTRIC CO $44, /18/ PUGET SOUND ENERGY INC $1, /18/ TULLETT PREBON AMERICAS CORP $1, /18/ ROBERT MCMANIS $ /18/ NEIL NEROUTSOS $ /18/ DIANE PERRY $1, /18/ KATRISHA FARLEY $2, /19/ DOUGLAS WILSON $ /19/ GEORGE HESPE $ /19/ ANDREW MCDONNELL $ /19/ ADELA SANTISTEBAN $ /21/ JOHN MARTINSEN $ /21/ DANICA PATTISON $ /21/ CHRISTINE HALL $ /21/ JANET BARNES $ /21/ JENNIFER MASON $ /21/ TYLER REINITZ $ /21/ BRENDA JOHNS $1, Total: $60, /252 Page: 61/64

181 Detailed Disbursement Report Accounts Payable Wires Payment Date Payment Ref Nbr Payee Amount 9/11/ US BANK $74, /13/ US BANK NA $1,861, /13/ ICMA-RC $24, /15/ CORVEL HEALTHCARE CORP $15, /15/ US BANK NA $12, /20/ PUBLIC UTILITY DIST NO 1 OF CHELAN $34, /20/ THE ENERGY AUTHORITY INC $2, /20/ PUGET SOUND ENERGY INC $123, /20/ CITY OF SEATTLE $340, /20/ TRANSALTA ENERGY MARKETING US INC $129, /20/ CITY OF TACOMA WASHINGTON $43, /20/ HAMPTON LUMBER MILLS-WA INC $44, /20/ AVANGRID RENEWABLES LLC $1,410, /20/ IDAHO POWER COMPANY $37, /20/ LL&P WIND ENERGY INC $220, /20/ WHEAT FIELD WIND POWER PROJECT LLC $1,417, /21/ ICMA-RC $116, /21/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI $66, /21/ ICMA-RC $412, /22/ CORVEL HEALTHCARE CORP $12, /22/ US BANK NA $5, /22/ MCLARENS YOUNG INTERNATIONAL INC $29, Total: $6,438, /252 Page: 62/64

182 Detailed Disbursement Report Payroll Period End Date Payment Ref Nbr Payee Amount 9/20/ PUD EMPLOYEES - DIRECT DEPOSIT $2,999, /22/ PUD EMPLOYEES - WARRANTS $26, /252 Page: 63/64

183 Detailed Disbursement Report Automatic Debit Payments Payment Date Payment Ref Nbr Payee Amount 9/12/ STATE OF WA DEPT OF RETIR $1,787, /20/ AUTOMATIC DATA PROCESSING $747, /21/ US POSTAL SVC $10, /21/ US POSTAL SVC $110, Total: $2,655, /252 Page: 64/64

184 BUSINESS OF THE COMMISSION Meeting Date: October 2, 2017 Agenda Item: 5A TITLE Open the 2018 Proposed Budget Hearing SUBMITTED FOR: Public Hearing Finance Division Glenn McPherson 8356 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4) a non-delegable, statutorily assigned Board duty as defined under RCW budget. Staff will present an introduction to the Electric, Generation and Water system budgets on October 2, Additional presentations will be prepared for the Public Hearings on November 7, 2017, and November 21, Budget adoption is scheduled for the Board s consideration on December 19, List Attachments: 2018 Proposed Budget Introduction Presentation 2018 Proposed Budget Book 184/252

185 185/252

186 2018 Proposed Budget Elements: Supporting the Strategic Priorities SERVING OUR CUSTOMERS Customer Service Experience and Support ($13.1 M) North County Local Office Development ($3.6 M) SAFETY AND RELIABILITY Tree Trimming Program ($6.2 M) Station Reliability Improvements ($850 K) North County 230Kv Bank Addition ($1.3 M) Underground Cable Replacement Program ($5.4 M) VALUE Low Income Discount Programs ($6.7 M) FINANCIAL PROCESSES Banking Services ($166 K) District Audits ($215 K) COST MANAGEMENT NERC Mock Audit ($180 K) Property/Liability Insurance ($1.4 M) STABILITY Budget and Financial Planning ($250 K) Load Forecasting/Rate Consultant ($50 K) CONTINUAL IMPROVEMENT Business Readiness & Training, including CI Training ($501 K) LEADERSHIP Leadership Training Program ($150 K) SAFETY Safety Programs ($932 K) OUR PEOPLE Apprenticeship Program ($1.7 M) OUR IDENTITY Current and Highlights Magazine ($150 K) RESOURCE PLANNING Power Supply Mgmt ($966K) Power Scheduling ($2.5 M) District Information OPERATIONS Governance Projects ($300 K) Business Process IT Projects ($3.0 M) Water Main Replacements ($3.6 M) Distribution & Engineering Business Operations ($154 K) Energy Control Center ($4.7 M) STEWARDSHIP Energy Efficiency Programs ($22 M) 186/ Proposed Budget October 2,

187 o The 2018 Proposed Electric System Operating Budget is $663 million, roughly equivalent to the 2017 Budget There are no planned rate changes in the 2018 Proposed Budget o Retail loads reflect the updated load forecast and are expected to be approximately 6% lower than 2017 budgeted loads consistent with lower customer loads since 2008 o o o 2018 Proposed Budget Overview: Electric System Funding for the 2018 Proposed Budget is expected to come from a combination of operating revenues, customer contributions and fees ($17 million), proceeds from the 2015 Electric System Bonds ($35 million), and transfers from the Resource Reinvestment Reserve ($7 million) The 2018 Proposed Budget includes $93 million in capital expenditures for continued investment in electric distribution system infrastructure as well as information technology, facilities, vehicles and equipment, and grid modernization Spending for Energy Efficiency programs in the 2018 Proposed budget of $22 million continues at levels slightly lower than / Proposed Budget October 2,

188 Electric System Major Projects and Capital Investments Distribution System Infrastructure Major electric distribution infrastructure projects include construction improvements at the Port Gardner Substation, Beverly Park Substation, Cedar Valley Substation, and Oso Substation as well as continued investments in and the wood pole and underground cable replacement programs. Total funding for Distribution System Infrastructure projects is $50.4 million New Connection Construction The 2018 Proposed Budget includes $22.8 million for customer related capital work including line extensions, street and area lighting, and new equipment such as meters and transformers Local Office Design and Development the 2018 Proposed Budget includes $3.6 million for design and permitting work for replacement of the North County local office 75th Street Business Center Upgrades the 2018 Proposed budget includes $6.8 M for building renovation and tenant improvements for both floors of the main building and annex Grid Modernization Project The 2018 Proposed Budget includes $5.5 million for Grid Modernization including $2.6 million to continue work on the MESA energy storage projects which is being funded partially with and the Resource Reinvestment Reserve Vehicles and Equipment The 2018 Proposed Budget includes $3.5 Million for new and replacement vehicles 188/ Proposed Budget October 2,

189 Electric System Budget Comparison ($000's) Operating Revenues 2017 Budget 2018 Proposed Budget Energy Retail Sales $ 619,876 $ 594,896 Energy Wholesale Sales 34,409 37,006 Other Operating Revenues 20,274 24,756 Total Operating Revenues $ 674,559 $ 656,658 Operating Expenses Purchased Power $ 343,723 $ 337,300 Transmission & Ancillary 54,217 56,061 Operations & Maintenance* 175, ,600 Taxes 37,146 35,538 Depreciation 51,314 52,340 Total Operating Expenses $ 662,075 $ 662,840 Net Operating Income $ 12,485 $ (6,181) Interest Income & Other 9,019 7,926 Interest Charges (15,894) (15,432) Contributions 16,884 16,818 Net Income $ 22,494 $ 3,130 Capital Expenditures (126,182) (93,246) Debt Service Principal (9,839) (10,652) Depreciation 51,314 52,340 Loan Repayments and Other 5,401 4,283 Estimated Change in Reserves $ (56,812) $ (44,145) *Energy Efficiency Expenditures 23,934 22, / Proposed Budget October 2,

190 2018 Proposed Budget Overview- Generation System The 2018 Proposed Generation System Operating Budget is $11.8 million, $2.5 million lower than the 2017 Budget o o o The Generation System consists of the Jackson Project, Youngs Creek Project, Woods Creek Project, Hancock Creek Project, Calligan Creek Project and Generation Debt Service The Jackson Project proposed budget includes expenditures for completion of the Water Temperature Conditioning Phase 2 Project, the completion of a project to replace the power and communication to the Diversion dam and replacement of existing transmission system poles. A portion of these projects are proposed to be funded by the Resource Reinvestment Reserve The 2018 Proposed Budget includes $5.8 million to complete commissioning of the Hancock Creek and Calligan Creek Hydroelectric generation projects. The District began work on the projects in / Proposed Budget October 2,

191 Generation System Budget Comparison ($000's) Operating Revenues 2017 Budget 2018 Proposed Budget Energy Wholesale Sales $ 41,482 $ 45,658 Total Operating Revenues $ 41,482 $ 45,658 Operating Expenses Operations & Maintenance 6,513 7,787 Taxes Depreciation 7,738 3,911 Total Operating Expenses $ 14,346 $ 11,796 Net Operating Income $ 27,136 $ 33,862 Interest Income & Other 1, Interest Charges (7,267) (6,933) Contributions - 50 Net Income $ 21,312 $ 27,932 Capital Expenditures (34,098) (14,196) Debt Service Principal (28,612) (28,684) Depreciation 7,738 3,911 Loan Repayments and Other Estimated Change in Reserves $ (33,463) $ (11,036) 191/ Proposed Budget October 2,

192 2018 Proposed Budget Overview- Water System The 2018 Proposed Water System Operating Budget is $11.5 million, slightly lower than the 2017 Budget o o o o The 2018 Proposed Budget reflects a proposed 3% rate increase in retail water rates, effective January The actual increase will be based on the final results of a rate study and subject to Board discussion and decision. This rate increase is expected to recover the City of Everett wholesale water rate increase and provide for capital funding needs Purchased Water expenses reflect a 3.5% wholesale rate increase from the City of Everett The 2018 Budget assumes the transfer of approximately 600 customers as part of the purchase of the Warm Beach Water system. The 2018 Proposed budget includes funding from loans and grants to offset some of the acquisition and system upgrade costs The majority of the $6.9 million in 2018 capital projects are related to main upgrades as part of the Water System s continuing main replacement program as well as construction and upgrades of the Warm Beach system. The 2018 Proposed budget includes funding from Drinking Water State Revolving Fund (DWSRF) loans and grants to offset some of the acquisition costs 192/ Proposed Budget October 2,

193 Water System Budget Comparison ($000's) Operating Revenues 2017 Water Budget 2018 Water Budget Water Retail Sales $ 11,251 $ 12,005 Water Wholesale Sales Other Operating Revenues Total Operating Revenues $ 11,841 $ 12,683 Operating Expenses Purchased Water $ 2,400 $ 2,377 Operations & Maintenance 5,688 5,613 Taxes Depreciation 2,850 2,907 Total Operating Expenses $ 11,537 $ 11,526 Net Operating Income $ 304 $ 1,157 Interest Income & Other 1, Interest Charges Contributions 2,825 2,729 Net Income $ 3,437 $ 3,973 Capital Expenditures (4,985) (6,858) Debt Service Principal (2,025) (2,109) Depreciation 2,850 2,907 Loan Repayments and Other (927) 525 Estimated Change in Reserves $ (1,650) $ (1,562) 2018 Proposed Budget October 2, /252 9

194 Tentative 2018 Budget Schedule November 7, 2017 Water System Proposed Budget Electric System Proposed Budget Operating Revenues o Retail Energy Sales, Wholesale Energy Sales and Operating Revenues November 21, 2017 Generation System Proposed Budget Electric System Proposed Budget Operating Expenditures o Purchased Power and Transmission, O&M, Capital, Energy Efficiency, Debt Service, Taxes, Reserve Transfers, 5-year forecast December 5, 2017 o Present and discuss any suggested modifications to the 2018 Proposed Budget December 19, 2017 o Consider adoption of the 2018 Budget 194/ Proposed Budget October 2,

195 Board of Commissioners: Sidney Sid Logan Tanya Toni Olson Kathleen Kathy Vaughn 195/252

196 196/252 Snohomish County PUD 2018 PROPOSED BUDGET

197 SNOHOMISH COUNTY PUD 2018 PROPOSED BUDGET TABLE OF CONTENTS CEO/General Manager s Message... 1 ELECTRIC SYSTEM... 5 Exhibit 1 - Operating and Other Revenue Exhibit 2 - Purchased Power, Transmission and Ancillary Services Exhibit 3 - Operating and Maintenance Expenses By Cost Center Exhibit 4 - Operating Expenses By Cost Element Exhibit 5 - Capital Expenditures DIVISIONS Administration (includes Commission, Office of the CEO/General Manager, Safety, and Government Relations)..21 Corporate Communications (includes Corporate Communications, Print Shop, Mail Center, and Business Readiness & Training)...22 Legal Services (includes General Counsel, District Information Governance)...23 Finance (includes AGM Finance and Treasury, Budget and Financial Planning, SAP Support Finance, Treasury & Risk Management, Meter Reading, Customer Accounting, General Accounting, Contracts & Purchasing, and Warehouse)...24 Customer Services (includes Customer Service Experience, Customer Service Support)...25 Energy Services (includes AGM Customer and Energy Services, CES Business Operations, Data Strategy & Analytics, Customer Strategy/Analytics & Planning, Residential, Strategic Segments, Strategic Accounts, Senior Manager Energy Services, and Advanced Metering Infrastructure)...26 Facilities and Security (includes Grounds and Engineering, Custodial Services, Facilities Maintenance, Facilities Planning, Security and Business Continuity, and Facilities Administration)...27 Employee Resources and Benefits Information Technology Services (includes AGM ITS, ITS Administration Management, ITS Automation Projects, Project and Delivery Management, IT Quality Assurance, IT Project Release Management, ITS Operations Management & Architecture, ITS Operations Support, ITS End User Support, Data Base Administration, Enterprise Architecture, ITS Application Management & Architecture, ITS Security Architecture, M2C Application Security, EAM/CMP/ALM, and B2R/P2P/H2R/R2D)...29 Power and Transmission Management (includes AGM Power and Transmission, Power Scheduling; Power Supply; Regional Transmission & Compliance and Rates and Economics)...30 Distribution and Engineering (includes AGM Distribution & Engineering, D&E Business Operations, Asset Management, Local Offices, Everett Region, Everett Region Support, Environmental Affairs, Real Estate, Transportation, Construction Services & Line Training, Vegetation Management, Energy Control Center, Inspection / Scheduling, Apprenticeship Program, Distribution Engineering, Transmission Engineering, GIS / Maps & Records / Drafting, Operational Technology Engineering, System Planning & Protection, Everett Engineering, Plat Development, Substation Engineering, Substation Construction, Metering, Telecommunications)...31 Other Costs GENERATION SYSTEM Exhibit 6 Operating Revenues and Expenditures Jackson Hydro Project and Other Generation Renewable Generation and Youngs Creek Hydro Project Woods Creek Hydro Project, Calligan Hydro and Capital Expenditures Hancock Creek Hydro Project and Generation Sys. Capital Expenditures...39 WATER SYSTEM Exhibit 7 - Operating and Other Revenue Exhibit 8 - Operating Expenses by Cost Element Exhibit 9 - Capital Expenditures /252 Snohomish County PUD 2018 PROPOSED BUDGET

198 198/252 Snohomish County PUD 2018 PROPOSED BUDGET

199 2018 PROPOSED BUDGET The 2018 Proposed Budget for Snohomish County PUD represents a compilation of efforts from the Leadership Team, project leaders and other PUD staff. Every effort has been made to ensure an accurate and straightforward representation of the PUD s revenue and expenditure requirements and a budget plan that upholds the mission, values, and strategic priorities of the PUD. I encourage you to visit our website at snopud.com to learn more about the PUD and the valuable services we provide to Snohomish County and Camano Island residents PROPOSED BUDGET KEY FEATURES The 2018 Proposed Budget and expenditure plan provides funding to develop, maintain, and enhance the PUD s Electric, Generation, and Water systems and continue to provide excellent service and enhance reliability to our customers while pursuing renewable resources and all cost-effective conservation. The 2018 Operating Budget for the Electric System is $663 million, roughly equivalent to the 2017 Operating Budget. The expenditure plan also includes $93 million in capital expenditures; the majority of those expenditures are for system reliability improvements and upgrades. The 2018 Operating Budget for the Generation System is $15.8 million; $1.5 million higher than The expenditure plan also includes a combined $14 million in capital expenditures for construction and improvements. The Water System s 2018 Operating Budget is approximately $11.5 million, roughly equivalent to the 2017 Operating Budget. The following highlights some of the major components of the 2018 Electric System Operating Budget and capital expenditures: Rate adjustment There are no planned rate increases in the 2018 Electric System Proposed Budget. Residential Exchange Program As a part of the Residential Purchase and Sale Agreement with Bonneville, the PUD is participating in the BPA Residential Exchange Program. The 2018 Proposed Budget includes $3.32 million of Residential Exchange credits to be passed on to residential customers. Retail power consumption Retail load is expected to be 6% lower than 2017 budgeted levels. This is expected to result in a $25 million decrease in retail sales from 2017 Budget levels. New connections The estimate for 2018 new customer connections is 3,400. Reading meters monthly In 2016, the PUD began reading all residential and commercial customer meters on a monthly basis. The 2018 Proposed Budget includes the use of reserves to fund the difference between monthly and bi-monthly meter readings. System reliability investments The 2018 Capital plan includes several major projects aimed at increasing reliability for customers major projects include the Cedar Valley Substation, the Stanwood to Camano 115 kv line, the OSO Substation upgrade and the Casino Substation transformer replacement, as well as continuation of the wood pole and underground cable replacement programs. Grid modernization investment Includes $5.5 million to continue investment in infrastructure, including further substation automation, and incorporating energy storage into the grid infrastructure. Snohomish County PUD 2018 PROPOSED BUDGET 199/252 1.

200 75th Street Business Center upgrades Following the purchase of this facility in 2017, the 2018 Proposed Budget includes $6.8 million for renovation and improvements. Bond proceeds The PUD issued $141 million in bonds in 2015 and the proceeds are being used to provide funding for qualified system capital improvement efforts over a three-year period. The expenditure plan includes the use of $35 million of the proceeds in 2018 for qualified projects. Energy-efficiency programs The PUD continues investment in energyefficiency programs in the 2018 Proposed Budget with $22.0 million in planned expenditures. These expenditures are reported as part of Operating and Maintenance. Renewable resource projects Includes $6.6 million for several renewable resource investments including the final commissioning of the Hancock and Calligan Creek hydroelectric projects and further low-impact hydroelectric exploration. These projects will be funded by the Resource Reinvestment Reserve. COMPLIANCE WITH COMMISSION POLICY Pursuant to Commission Policy, specifically EL-4 that defines the executive limitation for financial planning and budgeting, the 2018 Proposed Budget: Includes a credible projection of revenues and expenditures; Maintains cash reserves at levels consistent with Commission policy established in Resolution 5319; Provides for 2018 Electric System debt service coverage greater than the Commission s 1.75x target; and Planned use of bond proceeds does not exceed the Commission s target of 40% of non-generation electric system capital. PUBLIC BENEFITS The PUD remains committed to the benefits of public power for its customers and fulfilling its mission while also responding to the needs of the community. The 2018 Proposed Budget includes: Energy-efficiency programs including residential lighting discounts, rebates for home weatherization improvements, efficient retail products and heat pumps, and comprehensive retrofits for low-income housing efficiency. Incentives also encourage businesses throughout the County to save energy by making efficiency upgrades to lighting, HVAC, motors and process improvements. Significant efforts are made to educate and increase customer awareness of the benefits of energy efficiency for all ratepayers. Fish and wildlife recovery efforts that are featured at the PUD s hydroelectric projects, including Jackson, Youngs Creek and Woods Creek. In addition, approximately 35% of the PUD s payments for power to BPA, approximately $84 million, fund fish and wildlife recovery on the Columbia River; Low-income discounts estimated at about $6.7 million are provided by the PUD for qualifying low-income customers; Public safety information programs are communicated in a variety of ways, including our website, customer newsletters, school programs, newspaper ads, and other means; Trained field employees who live in the communities, keep a watchful eye for customers who may be at risk and provide responsive service during major storm and emergency outage conditions; Energy education programs serving local area schools with classroom presentations, student workshops, and electrical safety demonstrations; Environmental sensitivity demonstrated in our power resource development acquisition and construction practices; The Helping Hands program, funded by employees, which assists low-income seniors with their PUD bills; The Project PRIDE program, funded by customer donations, which provides financial assistance to low-income families for their PUD electric bills; /252 Snohomish County PUD 2018 PROPOSED BUDGET

201 Quality jobs and local employment provided by the customer-owned PUD; The Social Service Agency and LIHEAP (Energy Assistance) support, which provides customers and agencies easier access to customers data at the time assistance is being provided and coordinates pledges to pay; Tax-exempt financing for capital projects helps maintain stable rates; and STRATEGIC PRIORITIES 2018 PROPOSED BUDGET ELEMENTS PUD management and the Board of Commissioners worked together to create a plan that establishes and identifies the mission, values and strategic priorities of the PUD. The 2018 Proposed Budget upholds the values of the plan. The PUD Board of Commissioners and Management Team are taking actions today to build a strong base of sustainable knowledge and physical assets. This will provide a foundation from which our utility can prosper and meet the needs of our customers, while recognizing our environmental stewardship role and the social and economic issues of our community. The Strategic Priorities are designed to support the PUD s mission of providing quality water and electric energy products and services. Providing power and water is our core business, but the PUD is more than simply a commodity supplier. We endeavor to increase the value of these products by providing outstanding service, information, customer convenience and safety. The plan identifies five major areas of strategic focus with underlying strategic priorities, and the PUD has identified a sample of related 2018 Proposed Budget elements that support those priorities as follows: Team PUD Safety There s nothing that we do in achieving our mission that s worth incurring even a single injury, period. Related Budget Elements: Safety Program ($932,000), Safety Training Meetings ($630,000) Leadership PUD Leaders will be models of integrity, professionalism, respectful engagement and accountability. Leadership is not defined by position or title. Leaders make a difference in helping others to be successful and realize their highest potential. Related Budget Elements: Education and Training Opportunities ($1.4 million), Administration Division ($1.7 million), Leadership Development Training ($150,000) Our People Capable, creative and dedicated team members that are at the core of what makes the PUD successful and respected in our community. We do this by performing the highest quality and quantity of work, using our skills and knowledge to our fullest ability and by exercising safe and productive work practices. Related Budget Elements: Apprenticeship Program ($1.7 million), Recruiting Program ($375,000) Our Identity As a public utility, our focus is on providing critical services to our neighbors, friends, family and communities. We will be mindful of the trust invested in us by our customers, and will work hard to earn that trust in everything we do. Related Budget Elements: Corporate Communications ($2.2 million), Government Relations ($715,000), Customer Experience budget ($7.4 million) Customer Service Serving our Customers As long-standing members of the community, we work hard to earn and maintain our customers trust every day. We strive to improve the customer experience and work hard to resolve customer issues promptly. We provide customers with ways to interact with us that meet a variety of needs and lifestyles. We are committed to serving now and for generations to come. Related Budget Elements: Customer Service Support ($5.8 million), Customer Service Experience ($7.4 million) Snohomish County PUD 2018 PROPOSED BUDGET 201/252 3.

202 Safety and Reliability Our systems are designed, maintained, and operated to provide safe and reliable service to our community. We know that there will be occasional interruptions, and we will continually improve our capability to provide timely information and faster service restoration. Related Budget Elements: Power Scheduling ($2.5 million), Tree Trimming Program ($6.2 million), Energy Control Center ($4.8 million) Value The power and water services we supply are foundational to life in our communities. We strive to ensure that they will consistently represent strong value relative to their cost. Related Budget Elements: Government Relations Program ($715,000), Data Strategy & Analytics ($1.1 million), Strategic Accounts ($963,000) Delivering Now and For the Future Resource Planning Provide the lowest reasonable cost and environmentally responsible power and water products to our customers Related Budget Elements: Power Supply ($966,000), Power Scheduling ($2.5 million) Operations Maintain our assets for cost-effective and reliable service. Leverage technology to lower cost and improve or create power and water services Related Budget Elements: Wood Pole and Cable Replacement Programs ($12.6 million), Asset Management ($905,000), System Planning and Protection ($2.8 million), Water Main Replacements ($3.6 million) Stewardship Balancing decisions in the best interest of both current customers and future generations Related Budget Elements: Energy-Efficiency Programs ($22.0 million), Low Income and Senior Discount Programs ($6.7 million) Responsible Cost and Fiscal Management Financial Processes Robust and effective processes for accurate and timely financial and managerial reporting. This will ensure compliance with reporting obligations and provide reliable data to facilitate decision-making and to identify and quantify opportunities and risks. Related Budget Elements: Finance SAP Support ($488,000), General Accounting ($2.9 million), Budget and Financial Planning ($247,000) Cost Management Proactive, strategic and visible cost control that continuously drives improvement in our ability to mitigate rate pressure Related Budget Elements: Long-term BPA power and transmission contracts ($393 million) Stability Ensure long-term financial stability through rates and fees that allocate and recover costs fairly and fully, while mitigating short-term rate volatility. Related Budget Elements: Rates and Economics ($768,000), Budget and Financial Planning ($247,000), Treasury and Risk Management ($3.1 million) Continuous Improvement Establish a formal programmatic effort that fits our needs and provides the tools, resources and expectations to drive continuous improvement in every area of our operations Related Budget Elements: Corporate Communications and Business Readiness Training ($2.7 million), Continuous Improvement Training for Employees ($40,000) /252 Snohomish County PUD 2018 PROPOSED BUDGET

203 2018 PROPOSED BUDGET The Electric System operates primarily to provide electrical service to approximately 345,000 customers in Snohomish County and Camano Island. The Electric System purchases the majority of the electrical energy it sells to customers from the Bonneville Power Administration (BPA). The Electric System consists of the PUD s transmission lines, substations, distribution lines, transformers, meters, and general plant. It also includes customer service, engineering and design, energy-efficiency services, and administrative functions that support the construction, operations and maintenance of the transmission and distribution system. ASSUMPTIONS The 2018 Proposed Budget reflects staff s electric load forecast based on an economic forecast for Snohomish County and a power resource forecast that includes staff s best estimates of wholesale market prices. The 2018 Proposed Budget for the Electric System is based on the following assumptions for revenues, power resources, and other factors: Revenue Assumptions Energy Rates The 2018 Proposed Budget does not include any planned rate increases. Load Forecast PUD retail loads are expected to be 6% lower than loads forecast in the 2017 Budget. New Connections The 2018 Proposed Budget reflects projected new connections of 3,400. The 2017 Budget assumed 3,018 new connections although actual connects are expected to be approximately 4,000. Revenues from customer reimbursed work are projected at $16.9 million for Wholesale Revenues The 2018 Proposed Budget includes $37 million in wholesale energy revenues. The majority of the PUD s short-term wholesale market sales come from surplus Slice energy, which varies with the seasonal and daily variations in the Slice product s output. If snowpack and water conditions are above average in the region, the energy output is also above average. The $37 million is based on regional water levels at a P35 level, an estimate below average water (P50). Based on current price Snohomish County PUD 2018 PROPOSED BUDGET 203/252 5.

204 forecasts, the average wholesale price for revenues from system load balancing used in the 2018 Proposed Budget is $19 per MWh. Cash Reserve Transfers The PUD maintains four cash reserve accounts as follows: On-going Long-term Reserves The Operating Reserve, which represents approximately 90 days of nonpower budgeted expenses in order to provide adequate working capital during unforeseen events such as natural disasters, economic downturns, customer loss, and revenue interruption The Power Market Volatility Reserve, which hedges against risks associated with wholesale market exposure resulting from power supply portfolio imbalances created by such elements as weather, contract purchase/product variability, fuel prices, load variances or resource failure The Self-Insurance Reserve, which represents the estimated cost to support self-insured retention and insurance carrier deductibles Project Specific Reserve The Resource Reinvestment Reserve, which represents the proceeds of the sale of operational assets to be utilized to fund capital investments in new assets and other projects. The on-going, long-term reserves are expected to remain in place over time to address business risks. The project specific reserve is expected to be utilized as the costs it is designed to address are spent. In addition, the Electric System periodically sells tax-exempt bonds in order to fund a portion of its capital infrastructure and other major capital projects. The PUD issued $141 million of tax-exempt bonds in 2015 to partially fund qualifying capital expenditures for approximately three years. The PUD plans to utilize approximately $6.7 million from the Resource Reinvestment Reserve to fund the Energy Storage Demonstration Project (MESA) in 2018 and the incremental cost of monthly meter reading. Purchased Power and Transmission Assumptions Bonneville Power Administration (BPA) The 2018 Proposed Budget reflects a long-term power purchase agreement effective October 1, 2012 through September 30, 2028 for the purchase of up to 811 amw through the Block and Slice products. The BPA power contract represents 84% of the PUD s 2018 power purchases and 71% of the PUD s total power and transmission costs. Block Product Approximately 41% of the PUD s energy contract with BPA comes from the Block product. The Block product provides the PUD with power in flat monthly amounts that average 3.0 million MWh over a contract year. The amount of energy the PUD receives each month is based on the PUD s historical monthly load shape. In 2018, the total annual cost of the Block product is forecasted at $108.3 million. Slice Product Approximately 59% of the PUD s energy contract with BPA comes from the Slice product. The Slice product is delivered in variable amounts that reflect the actual output of the Federal Base Power System, which can vary from year to year based on regional hydro conditions. Because the annual amount is variable and difficult to forecast, the PUD takes a conservative budget position that assumes the actual production will be below average. Specifically, the PUD assumes for budget purposes that Slice production will be in the 35th percentile of simulated historical production. Slice provides the PUD with the ability to follow its customer loads by storing and dispatching energy on an hourly basis within the contractual constraints and physical limits of the Federal Base Power System. Under the Slice product, the PUD takes responsibility for managing its portion of the Federal Base Power System and assumes the inherent risks. If snowpack and water conditions are above average in the region, the energy output is also above average. If snowpack and water conditions are low, the PUD s energy supply is correspondingly reduced. As a purchaser of the Slice product, the PUD has an obligation to pay its pro-rata share of BPA s actual operating costs. The PUD s share of the Slice of the Federal Base Power System is approximately /252 Snohomish County PUD 2018 PROPOSED BUDGET

205 5%. The majority of the PUD s short-term wholesale market sales are from surplus Slice energy, which varies with the seasonal and daily variations in the Slice product s output. The 2018 Proposed Budget estimates receiving 4.3 million MWh from the BPA Slice product at a cost of $139.6 million. Slice True-Up Adjustment After the end of each fiscal year, BPA trues up the difference between its actual costs and the budget for the fiscal year through the Slice True-Up Adjustment. The result can be a charge or credit. The 2018 Proposed Budget assumes no adjustment since we cannot accurately forecast whether or not there will be a charge or credit. Transmission and Ancillary Services The PUD relies on long-term transmission capacity from the BPA transmission network to transport its power supply from the source of generation to the customers it serves. The PUD contracts with BPA for approximately 1,918 MW of firm point-to-point capacity. The 2018 Proposed Budget includes $38.8 million for BPA transmission capacity and $17.3 million for ancillary services. Jackson Hydroelectric Project The Electric System is expected to purchase 389,046 MWh of power from the Jackson Hydroelectric Project, a component of the PUD s Generation System, at a cost of $24.2 million in the 2018 Proposed Budget. This represents 4% of the Electric System s anticipated 2018 power resource costs. Small Hydroelectric Projects The Generation System owns four small hydroelectric projects in Snohomish and King County: the Woods Creek Project, the Youngs Creek Project, the Calligan Creek project, and the Hancock Creek project. The 2018 Electric System Budget includes $3.6 million in purchased power expenditures related to these projects. In 2018, the Generation System will complete the new small hydroelectric projects in King County along the Skykomish River: the Calligan and Hancock Creek projects. Forward and Short-term Market Purchases The 2018 Proposed Budget includes 427,529 MWh, estimated to cost $10.5 million, for forward and short-term market purchases anticipated to satisfy the PUD s retail loads in excess of its firm resources to manage short-term load and resource variations. Of this amount, $5.0 million represents forward purchases which were already committed as of August These costs are offset by wholesale power market sales. Renewable Power Resources The PUD used the target method applying RECs and incremental hydro from its existing power supply portfolio to comply with the annual I-937 renewables requirement for calendar years 2012 through Starting in 2018, the PUD anticipates it may need to begin purchasing small quantities of Renewable Energy Credits (RECs) as part of a hedging and optimization strategy to supplement the PUD s existing REC portfolio to most cost-effectively satisfy the annual I-937 compliance requirements under the target method. The PUD has acquired eligible renewable resources from its own resources and long-term power supply contracts, including the White Creek Wind Agreement, the Wheat Field Wind Agreement, the Hay Canyon I and II Wind Agreements, Qualco Energy Corp., and the Hampton Lumber Agreement. The PUD also is recognized for achieving eligible resources including incremental hydro from the PUD s Woods Creek Hydroelectric Project and Renewable Energy Credits from Bonneville s resource portfolio. The 2018 Proposed Budget includes an expected 480,710 MWh of total power from the three wind power purchase contracts and the Hampton Lumber and Qualco Energy Corp. power purchase agreements for a total cost of $36.5 million. Other Assumptions Full-time Equivalent Employees (FTE) The 2018 Electric System Budget includes 1,086 FTE, a net increase of 11 from the 2017 Budget, representing a 1% increase over 2017 levels. Snohomish County PUD 2018 PROPOSED BUDGET 205/252 7.

206 COMPARATIVE ANALYSIS Schedule 1 is a summary comparing the 2018 Proposed Electric System Budget with Schedule 1 ELECTRIC SYSTEM COMPARATIVE FINANCIAL DATA ($000 s) Proposed Budget Budget Operating Revenues Energy Retail Sales $ 619,876 $ 594,896 Energy Wholesale Sales 34,409 37,006 Other Operating Revenues 20,274 24,756 Total Operating Revenues $ 674,560 $ 656,658 Operating Expenses Purchased Power $ 343,723 $ 337,340 Transmission & Ancillary 54,217 56,061 Operations & Maintenance 175, ,600 Taxes 37,146 35,536 Depreciation 51,314 52,340 Total Operating Expenses $ 662,075 $ 662,879 Net Operating Income $ 12,485 $ (6,220) Other Income & Expense 9,019 7,926 Interest Charges (15,894) (15,432) Contributions 16,884 16,818 Net Income $ 22,494 $ 3,091 Cash Adjustments to Net Income Capital Expenditures $ (126,182) $ (93,246) Debt Service Principal (9,839) (10,652) Depreciation 51,314 52,340 Loan Repayments and Other 5,401 4,283 Estimated Changes in Reserves $ (56,812) $ (44,184) Operating Revenues Projected retail energy sales are $24.9 million lower in the 2018 Proposed Budget due to expectations of lower customer consumption, construction of more energyefficient homes, and weather normalization. Wholesale energy revenues are $37 million in the 2018 Proposed Budget, $2.6 million higher than the 2017 budget. This increase reflects a higher volume of excess power and slightly lower market sales prices expected in 2018 reflecting the current forward price forecast. Other Operating revenues are $24.8 million in the 2018 Proposed Budget, a $4.5 million increase from 2017 levels. Other Operating revenues include sales of renewable energy credits, sales of the PUD s transmission capacity, grant reimbursements, customer fees and other revenues. The increase in 2018 reflects an expectation of greater BPA reimbursements for energy-efficiency programs. Operating Expenses Total 2018 Operating expenditures of $662.9 million are $0.8 million higher than the 2017 Budget. The relative amount of the expenditure categories are illustrated in Chart A. Purchased power costs of $337.3 million are $6.4 million lower than the 2017 Budget. This decrease is primarily the result of lower BPA power purchases needed to meet load expectations. Transmission and Ancillary costs of $56.1 million are $1.8 million higher than 2017 budget levels. This increase is due to the purchase of additional firm transmission, higher transmission rates and Hancock and Calligan Creek project wheeling costs /252 Snohomish County PUD 2018 PROPOSED BUDGET

207 Operating and maintenance (O&M) expenditures in the 2018 Proposed Budget are $5.9 million higher than the level included in the 2017 Budget, primarily due to increasing medical insurance and claim costs, an increase in the rates charged by the Washington state Department of Retirement systems, and an increase in Facilities and Information Technology maintenance costs. Operating and maintenance expenditures also include spending on energy-efficiency programs, and the 2018 Proposed Budget is slightly lower than 2017 Budget levels. The PUD s energyefficiency programs include energy-efficiency incentives, low-income weatherization and other programs that provide opportunities for customers to reduce their energy bills. Budgeted taxes of $35.5 million are $1.6 million lower than 2017 reflecting lower retail sales. Taxes include a 3.873% state excise tax and a 2.14% percent county privilege tax. Estimated Deprecation expenditures of $52.3 million are $1 million higher than Depreciation is an estimate of the reduced value of the PUD s fixed assets. Cash Adjustments to Net Income The 2018 Proposed Budget reflects a $32.9 million decrease in capital expenditures from The decrease from 2017 is primarily attributable to a lower amount of reliability expansion and upgrade projects, and a one-time purchase of the 75th Street Business Center building in Budgeted capital expenditures for 2018 includes other expansion, upgrades and maintenance of the electric distribution system infrastructure, including funding for line extension and plat work, distribution system line improvements and state requested relocation work. Debt service principal expenditures in the 2018 Proposed Budget are $10.6 million, reflective of scheduled debt payments. ENERGY SALES Retail Retail energy sales included in the 2018 Proposed Budget are sales within the PUD s service territory to residential, commercial and industrial customers. Retail sales to customers represent 95% of the Electric System s total energy sales revenue. Projected average rates for these categories are as follows: Average Rates Residential 10.2 per kwh Commercial 8.9 Industrial 6.9 Wholesale The PUD also sells energy into the wholesale power market during periods when the PUD s owned and contracted resources don t precisely match the PUD s load. Wholesale energy sales for the 2018 Proposed Budget related to load and resource balancing is estimated at $37 million, which includes $9 million in forward sales already committed through August Chart B provides a breakdown of the Electric System s energy sales components. Snohomish County PUD 2018 PROPOSED BUDGET 207/252 9.

208 PURCHASED POWER The purchased power budget reflects a strategy for the power supply that focuses on securing stable, reliable power at predictable prices while keeping risk within acceptable levels. The PUD continues to rely on its traditional sources of power, purchases from the Bonneville Power Administration and the PUD s owned hydroelectric projects: Jackson, Youngs Creek, Woods Creek, Calligan Creek, and Hancock Creek. The PUD expects to receive 84% of its 2018 Proposed Budgeted power purchases from BPA consistent with the terms of the BPA power supply agreement. It also has long-term contracts that purchase renewable energy from White Creek Wind, Hay Canyon Wind, Wheat Field Wind, and Hampton Lumber. The PUD also purchases short-term balancing market purchases necessary to balance seasonal variations in loads and resources. Chart C illustrates the PUD s purchased power included in the 2018 Proposed Budget in terms of MWh purchased, while Chart D indicates the relative cost of the different power resources. Market purchases made for load/resource balancing are included. Note that while BPA provides 84% of the power purchases of the PUD, it makes up 71% of the total cost of purchased power. OPERATING AND MAINTENANCE (O&M) EXPENDITURES Operating and maintenance (O&M) expenditures are designed to meet increasing customer service, system reliability and power quality expectations; maintain existing assets at appropriate operating levels in accordance with the industry standards and practices; operate the electric system in a safe and effective manner; and maintain a trained and skilled workforce. The PUD continues to provide excellent customer service at the lowest cost possible while managing the electric system growth and the increased maintenance requirements. Operating and maintenance expenses in the 2018 Proposed Budget are $181.6 million, which includes energy-efficiency programs. O&M expenditures account for 27% of total PUD operating expenditures. O&M expenditures included in the budget are sufficient to maintain our customer responsiveness and system reliability. Exhibit 3 (starting on page 16) provides detail for O&M expenditures by department and Exhibit 4 provides detail for O&M expenditures by cost element. In addition, the division summaries provide detail for O&M expenditures by cost category. O&M expenditures include those costs incurred in: operating and maintaining the electric distribution system to provide reliable service to our customers. This effort includes the regular maintenance of lines and stations, response to customer outages, and tree trimming efforts; providing effective customer service through the call center, local offices, account control and front line operations, as well as executive account attention and effective communications; maintaining an effective program that ensures the safety of employees in the performance of their duties; providing the internal support needed to serve our customers effectively in areas such as employee resources and safety, finance and accounting, material procurement and management, and information technology; providing maintenance and upkeep of our facilities, vehicles, and equipment; ensuring compliance with environmental and other government regulations; and supporting the policy-making, regulatory and management oversight functions; and maintaining an effective energy-efficiency program /252 Snohomish County PUD 2018 PROPOSED BUDGET

209 ENERGY-EFFICIENCY & CUSTOMER RENEWABLES PROGRAMS The PUD continues to acquire all cost-effective and achievable energy-efficiency resources and has allocated a 2018 conservation budget of $22.0 million. Energyefficiency revenue sources for 2018 include recapture of $7.9 million of BPA Energy Efficiency Incentives (EEI); and $1.4 million of conservation loan repayments. The 2018 Proposed Budget includes continued enhancements to our energy-efficiency program portfolio and meets our regulatory requirements. Energy conservation targets for the biennium will be in keeping with state-mandated I-937 requirements. PUD conservation programs are designed so that all customers residential, commercial and industrial have an opportunity to become more energy efficient. Energy-efficiency programs for 2018 include: Incentives for residential insulation, high-efficiency windows, efficient heat pumps (air source, ground source, and ductless), and smart thermostats; Weatherization for low-income residential customers, provided in partnership with local agencies; Retail discounts on LEDs, fixtures, and other high-efficiency appliances and electronics; Builder incentives for efficiency upgrades that exceed the levels set by building code in residential new construction, single family, multi-family, and manufactured homes; Custom incentives to businesses for installing a wide variety of energy-efficient technologies at commercial and industrial customer sites; Incentives for commercial building new construction projects; Rebates for energy-efficient commercial lighting, kitchen equipment and other end-uses; and Energy information services to promote savings from operational and behavioral practices, including a Resource Conservation Management Program (RCM) for school districts and other public entities across the County; Strategic Energy Management (SEM) for industrial facilities; and Wastewater Energy Coaching (WEC) for wastewater facilities The 2018 Proposed Budget also includes resources for: Advancing innovative program development and design; Supporting a shift toward capacity benefits as a program outcome; Infrastructure development, including the integration of a comprehensive tracking and reporting system; Serving as our customers trusted energy advisor by providing information and promotion of programs; Trade ally network training and development, supporting new jobs in the community; Measurement, evaluation and continual improvement of program performance; Leveraging data to inform more sophisticated strategic planning and target market segments for energy-efficiency resource acquisition; Market research at the local level as well as leveraging regional research efforts; and Technology demonstration and evaluation projects conducted in Snohomish County with support from EPRI, BPA, and NEEA. Snohomish County PUD 2018 PROPOSED BUDGET 209/

210 CAPITAL EXPENDITURES The 2018 Proposed Budget expenditure plan includes costs related to expansion, upgrades and maintenance of the electric distribution system infrastructure, including funding for depreciated cable replacement, distribution system line improvements, and state requested relocation work. In addition, capital expenditures include the costs of the Smart Grid Project including energy storage capabilities, telecommunications infrastructure, information systems applications and hardware, capital work on PUD facilities and purchases of vehicles and equipment. Capital expenditures are categorized in three types: system infrastructure construction, new connection construction, and other capital expenditures. The major capital projects included in the 2018 expenditure plan are presented in the table below. Additional detail on the capital program may be found in Exhibit 5. Significant 2018 Electric System Capital Projects/Programs ($000 s) 75th Street Business Center Upgrades 6,795 Wood Pole Program 6,509 Cable Replacement Program 5,475 Oso Substation Upgrade 5,000 Port Gardner Substation 3,802 Local Office Design and Development 3,662 Beverly Park Substation 3,390 Casino Substation Transformer Replacement 3,253 Cedar Valley Substation 3,200 Delta Substation - 5th Feeder 2,850 System Infrastructure Construction The electric system is planned, designed and constructed to provide dependable capacity and maintain continuity and quality of service to PUD customers. The system infrastructure construction program focuses on continuous improvements to the PUD s electric system. The program involves reliability improvements, upgrades, expansion of existing facilities and construction of new electric system infrastructure to meet both changing load patterns and new load growth. The electric system program also focuses on providing customer voltage with proper power quality and system operational efficiency. The 2018 System Infrastructure Construction expenditure plan is $50.2 million. This electric system construction figure reflects a realistic estimate of the project costs expected to be incurred in The System Infrastructure Construction Plan consists of four categories as follows: Major Capital Expansion Projects The steady growth and changing load patterns of residential, industrial and commercial customers continues to require new facilities and property as well as increase peak load demands. The purpose of this program is to provide increased electric system capacity by constructing new facilities. This category consists of large specific system expansions, such as new substations and new lines. These projects generally extend over a number of years. The 2018 expenditure plan for this program is $14.6 million. Major Capital Upgrade Projects A reliable, cost-effective and safe electric system network requires that facilities be upgraded to provide anticipated levels of service. The upgrades to the existing facilities are prompted by localized load growth, land-use changes and infrastructure expansions. This category consists of large specific system upgrades, such as substation upgrades or line reconductoring. The expenditure plan for this program in 2018 is $12.4 million. Capital Asset Management Programs The existing electric system facilities must be routinely refurbished and/or replaced to provide a reliable, cost-effective and safe system. This program provides for facility relocations, replacement of malfunctioning or deteriorated plant and improving operational efficiency. Each of the programs included in this category consists of specific improvement projects that are continuous and on-going over a number of years. The 2018 expenditure plan is $21.6 million for this program. Other Capital Outlay This program funds anticipated but as yet unidentified work, such as emergency line expansions and replacements and substation improvements. This category consists of small system improvements that experience indicates are necessary each year. This program s expenditure plan for 2018 is $1.9 million /252 Snohomish County PUD 2018 PROPOSED BUDGET

211 New Connection Construction The new connection construction portion of the capital expenditure plan funds the PUD s response to customer requests for new electrical service, upgrades to existing services and other services including street and area lighting, as well as new equipment such as transformers and meters. This construction work is classified in three different categories. Type 1 work includes overhead and underground secondary and primary services, convenience poles, underground primary systems for plats, and reimbursable overhead and underground line construction. Type 2 work includes the purchase costs and the installation costs for transformers and meters. Type 3 work includes service poles, overhead and underground line construction, overhead street lights, area lights, and street lights for underground plats. Funding for customer service construction is based on approximately 3,400 new service connections derived from the PUD s load forecast. The cost for 2018 is estimated at $23 million to serve the PUD s projected 2018 new connections plus other customer service requirements. Other Capital Expenditures In addition to system infrastructure and new connection construction, the PUD annually plans for capital expenditures related to PUD facilities design, construction and upgrades, development and implementation of smart grid infrastructure, purchase and implementation of software applications, purchases of transportation equipment, purchases of replacement information technology equipment, communications equipment, and storm restoration funding. Funding for these other capital expenditures totals $29 million in the 2018 expenditure plan. Replacement criteria are based on a combination of factors including age, utilization, specific maintenance issues, changes in technology and changes in stakeholders business needs. New technology is continually being investigated to reduce environmental impact and improve workforce efficiency. The 2018 expenditure plan includes $3.5 million for new and replacement vehicles and equipment. The Information Technology Services capital expenditure plan supports the technology infrastructure (such as servers, network, applications, and telecommunications) that provides the basic framework for the PUD s computer and communications systems. The 2018 expenditure plan includes $2.6 million in funding for hardware, network, application improvements and telecommunications. The Facilities department expenditure plan for capital expenditures related to design, construction, upgrade and replacement of the PUD facilities. The 2018 expenditure plan includes $13.3 million related to construction work for the new Arlington local office, 75th Street Business Center renovations, and roofing projects. Other capital expenditures also includes $4 million for the telecommunication projects related to wireless attachments, microwave replacement, and wireless infrastructure, $2.8 million for development and implementation of Smart Grid infrastructure, including additional substation automation, and $2.7 million for energy storage projects funded by grant proceeds and the Resource Reinvestment Reserve. The replacement of aged vehicles and equipment reaching the end of their useful lives is necessary to ensure safe operation, reliable service and optimal efficiency. Vehicle and equipment replacements are planned by Transportation Services with the intent to remove them from service before extensive maintenance costs and downtime are realized. Snohomish County PUD 2018 PROPOSED BUDGET 211/

212 2018 Proposed Budget Electric System Operating Revenues Exhibit 1 Operating Revenues Budget Energy Sales Results Budget MWh Mills/Kwh Amount Residential $ 324,674,665 $ 359,178,499 3,363, $ 341,947,099 Commercial 199,982, ,399,234 2,384, ,081,733 Industrial 37,520,597 47,674, , ,202,795 Street Lights 3,557,047 3,624,046 26, ,664,240 Total Retail Energy Sales 565,734, ,876,449 6,325, ,895,867 Forward Wholesale Market Sales $ 18,523,952 $ 14,439, , $ 9,066,215 Balancing Market Sales 19,947,314 19,969,807 1,316, ,940,183 Total Wholesale Energy Sales $ 38,471,266 $ 34,409,213 1,980, $ 37,006,399 Total Energy Sales $ 604,205, $ 654,285,662 8,305,433 $ 631,902,266 Other Operating Revenues Transmission Sales $ 4,257,251 $ 2,200,000 $ 3,250,000 Damage Claim Reimbursements 1,843,745 1,000,000 1,000,000 Miscellaneous Operating Expense Reimbursements 0 500, ,000 Surplus REC and Emission Sales 261,428 1,475,810 95,000 BPA ECA Reimbursement 10,655,629 4,500,000 7,890,052 Residential Exchange Credit 2,089, ,000,000 3,259,000 Miscellaneous Service Charge Revenue 5,878,834 5,400,000 5,500,000 Rents from Electric Property 3,114,406 3,198,153 3,262,116 Total Other Operating Revenues $ 28,100,503 $ 20,273,962 $ 24,756,168 Total Operating Revenues $ 632,306,110 $ 674,559,625 $ 656,658, /252 Snohomish County PUD 2018 PROPOSED BUDGET

213 2018 Proposed Budget Electric System Purchased Power and Transmisison Services Exhibit 2 Total Total Total MWh's Results MWh's Budget MWh's Budget BPA Block 3,366, ,656,034 3,498, ,185,143 2,989, ,325,095 BPA Slice Base 4,144, ,810,207 3,716, ,055,690 4,285, ,578,408 Supplemental spill charge ,000,000 Slice True-up - (528,485) BPA Slice Subtotal 4,144, ,281,722 3,716, ,055,690 4,285, ,578,408 BPA Lookback Credit/REP Customer Refund - (8,684,268) - (8,700,000) - (7,972,425) Total BPA Power Costs 7,510, ,253,488 7,214, ,540,832 7,275, ,931,077 Generation System: Jackson Hydro 483,805 22,877, ,136 19,088, ,046 24,185,176 Generation System - Other - 28,506,237-18,802,948-17,895,100 Youngs Creek 18,552 1,768,538 18,159 1,795,067 18,159 1,942,477 Woods Creek 1, ,682 1, ,765 1, ,477 Renewable Generation - 216, Hancock ,756 1,360,792 Calligan - - 8,095 1,228,024 21, ,509 Total Generation System 504,119 53,874, ,936 41,698, ,487 45,657,530 Other Renewable Power Sources: Packwood 18, ,000 16, ,000 16, ,634 Qualco 1, ,111 2, ,872 2, ,134 Hampton Lumber Mills 19,086 1,335,345 16,056 1,136,613 18, ,504 Wind Power Contracts 458,656 34,763, ,628 36,594, ,710 36,543,210 Total Other Renewable Power Sources 498,225 36,713, ,867 38,446, ,868 38,164,481 Market Power Purchases Forward Purchases ,200 8,999, ,400 5,037,398 Market/Short Term Purchases 292,940 7,809,982 96,329 2,555, ,129 5,449,824 Total Market and Short-Term Purchases 292,940 7,809, ,529 11,555, ,529 10,487,222 Other Power Purchases Small Power Producer , , ,091 Other Non-Power Services 1,789 3,450,889-3,687,125-3,088,041 Total Purchased Power 8,808,087 $ 343,114,948 8,604,543 $ 343,939,967 8,676,737 $ 337,340,442 Transmission and Ancillary Services Transmission Services - 40,795,689-37,145,048-38,777,791 Ancillary Services - 11,932,134-17,071,593-17,283,417 Total Transmission and Ancillary Services $ 52,727,823 $ 54,216,640 $ 56,061,209 Snohomish County PUD 2018 PROPOSED BUDGET 213/

214 2018 Proposed Budget Electric System Operating and Maintenance Expenses - By Cost Center Exhibit Uses of Funds - by Cost Center CC FTE (1) Results FTE Budget FTE Proposed Budget General Manager F , , ,863 Commission F , , ,789 Government Relations F , , ,965 Safety F , , ,497 Total Administration $ 2,931, $ 3,193, $ 3,296,115 Employee Resources Department F ,707, ,969, ,508,436 Employee Benefits F ,628, ,082, ,520,441 Total Employee Resources and Benefits $ 59,335, $ 60,051, $ 68,028,877 Corporate Communications F ,190, ,237, ,101,682 Print Shop F , ,292, ,232,837 Mailroom F ,148, , ,212 Business Readiness & Training F ,830 Total Corporate Communications $ 5,222, $ 5,479, $ 5,751,561 General Counsel F ,159, ,515, ,534,977 District Information Governance F , , ,463 SAP Support Compliance F , , Total Legal Services $ 3,426, $ 4,023, $ 4,263,440 AGM Finance and Treasury F , , ,108 Budget and Financial Planning F , , ,287 SAP Support Finance F , , ,899 Contracts and Purchasing F ,276, ,489, ,456,928 Warehouse F ,910, ,795, ,999,909 Meter Reading F ,787, ,074, ,919,344 Customer Accounting F ,905, ,134, ,199,884 Treasury & Risk Management F ,522, ,191, ,149,574 General Accounting F ,692, ,945, ,941,549 Total Finance $ 17,095, $ 21,798, $ 21,841,483 Grounds and Enginnering F ,275, ,202, ,216,170 Custodial Services F ,590, ,642, ,853,938 Facilities Maintenance F ,488, ,788, ,843,714 Facilities Planning F , ,490, ,665,343 Security and Business Continuity F ,766, ,153, ,138,919 Facilities Administration F , , ,642 Total Facilities and Security $ 9,358, $ 12,007, $ 13,244,725 Customer Service Support F ,156, ,398, ,812,037 Customer Service Experience F ,804, ,727, ,421,953 Total Customer Service $ 10,960, $ 13,125, $ 13,233, /252 Snohomish County PUD 2018 PROPOSED BUDGET

215 2018 Proposed Budget Electric System Operating and Maintenance Expenses - By Cost Center Exhibit Uses of Funds - by Cost Center CC FTE (1) Results FTE Budget FTE Proposed Budget AGM Customer and Energy Services F ,305, ,588, ,042,266 Business Operations F , , ,507 Customer Analytics F , ,272, ,111,007 Customer Strategy, Analytics and Planning F ,050, ,841, ,561,271 Residential F ,783, ,497, ,800,465 Market Segments F ,231, ,592, ,540,778 Strategic Accounts F , , ,608 Sr. Manager Energy Services F ,035, ,665, ,773,730 Advanced Metering Infrastructure F ,241 Total Energy Services Division $ 22,478, $ 24,982, $ 24,110,873 AGM Power and Transmission F , , ,457 Rates & Economics F , , ,341 Power Scheduling F ,381, ,475, ,522,616 Power Supply F , , ,834 Regional Transmission and Compliance F ,389, ,556, ,658,838 Total Power, Rates & Transmission Mgmt $ 5,528, $ 6,100, $ 6,434,086 AGM Information Technology Systems F , , ,383 ITS Administration Management F ,909, ,520, ,161,449 One Project F1503-5,925, ITS Automation Projects F , ,493,000 ITS Project Release Management F , , ,041 IT Quality Assurance F , , ,162 IT Project Release Delivery F , , ,847 ITS Operations Management F , , ITS Operations Architecture F , , ,074 ITS Operations Support F ,883, ,739, ,406,808 ITS End User Support F ,156, ,087, ,232,004 ITS Database Admin F , , ,220 Enterprise Architecture F , , ,094 ITS Security Architecture F , , ,843 ITS Application Management F , ITS Application Architecture F , ,049, ,677,059 M2C/APP Security F ,270, ,264, ,790,809 EAM/CMP/ALM F ,680, ,636, ,887,559 B2R/P2P/H2R/R2D F ,676, ,855, ,807,592 Total Information Technology Services $ 25,946, $ 23,310, $ 26,405,943 Distribution and Engineering General F , ,280 AGM Distribution and Engineering F , , ,050 Distribution and Engineering Business Operations F , , ,944 SmartGrid F , Snohomish County PUD 2018 PROPOSED BUDGET 215/

216 2018 Proposed Budget Electric System Operating and Maintenance Expenses - By Cost Center Exhibit Uses of Funds - by Cost Center CC FTE (1) Results FTE Budget FTE Proposed Budget Asset Mangement F , , ,263 Sr. Manager Design and Construction F , , ,845 Monroe Local Office F ,495, ,863, ,606,761 Snohomish Local Office F ,818, ,965, ,743,754 Stanwood Local Office F ,672, ,089, ,826,792 Arlington Local Office F ,707, ,776, ,728,740 South County Local Office F , ,029, ,125 Halls Lake F ,701, ,233, ,755,769 Everett Region Support F ,499, Everett Region F ,222, ,612, ,117,444 Sr. Manager Shared Services F , , ,691 Environmental Affairs F , , ,127 Real Estate F , , ,899 Transportation F ,606, ,675, ,585,717 Sr. Manager Construction Services F , , ,524 Vegetation Management F ,323, ,229, ,436,302 Energy Control Center F ,982, ,647, ,750,173 Inspection and Scheduling F , ,427, ,293 Apprenticeship Program F , , ,804 Sr. Manager Planning F , , ,522 Distribution and Engineering Services F , ,277, ,704,337 Transmission Engineering Services F ,533, ,934, ,182,704 GIS Maps, Records and Drafting F ,312, ,803, ,659,068 Operational Technical Engineering F ,438, ,448, ,724,377 Planning and Protection F ,779, ,382, ,817,087 Everett Engineering F , , ,562 Plat Development F , , ,636 Sr. Manager Substation, Metering & Telecom F , , ,591 Telecommunications F ,551, ,563, ,364,624 Substation Engineeing and Design F ,118, ,112, ,138,267 Substation Construction F ,152, ,987, ,092,979 Metering F ,592, ,581, ,721,389 Distribution and Engineering Capital Operating F1790-7,418,056-5,628,265-9,291,850 Total Distribution & Engineering Services $ 68,274, $ 75,612, $ 75,177,288 Total Other Costs/Capital Overheads Total Operating and Maintenance Expenses 0.00 $ (70,211,925) 0.00 $ (74,010,438) 0.00 $ (80,187,949) 1, $ 160,346,724 1, $ 175,675,280 1, $ 181,600,431 (1) Total FTE include all approved staffing for the department, some of the FTE may be allocated to Capital projects /252 Snohomish County PUD 2018 PROPOSED BUDGET

217 2018 Proposed Budget Electric System Operating and Maintenance Uses of Funds by Cost Element Exhibit Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time $ 75,697,372 $ 85,737,470 $ 83,310,235 Labor - Overtime ,309,801 6,243,366 4,299,826 Travel and Education ,019,248 1,434,951 1,526,769 Employee Benefits ,303,781 40,127,078 44,347,285 Property and Liability Insurance ,697,085 3,315,276 1,625,155 Materials, Equipment & Supplies ,694,043 5,953,047 9,523,711 Coded Stock Material ,852,574 3,000,758 2,339,553 Public and Small Works Contracts ,653,700 7,843,802 8,332,569 Professional Services Contracts ,237,918 11,147,166 9,052,880 Other Contracted Services ,338,335 29,717,251 34,210,836 Rents and Utilities ,727,727 2,127,920 1,968,831 Uncollectible Expense ,910,645 2,748,808 2,699,533 Land, Property and Easements ,494 68, ,900 Postage ,569,954 1,675,000 1,621,515 Dues, Memberships & Subscriptions ,154,589 1,743,543 1,848,113 Refunds (82,066) 100,000 (6,100) Capital Operation Expense ,269,179 5,628,265 9,291,850 Overheads/Other (27,209,654) (32,937,325) (34,600,030) Total Operating & Maintenance by Cost Element $ 160,346,724 $ 175,675,280 $ 181,600,431 Snohomish County PUD 2018 PROPOSED BUDGET 217/

218 2018 Proposed Budget Electric System Capital Expenditures Exhibit ELEC SYSTEM INFRASTRUCTURE CON. BUDGET BUDGET NEW CONNECTION CONSTRUCTION Budget Budget Swamp Creek 115kV Switching Station $ 1,254,684 $ 466,085 Meters & Installation $ 865,873 $ 905,719 High Rock Substation 62,286 - Transformers & Installation 6,086,793 4,870,901 Echo Lake Substation 60,445 - Area Light Installation 622, ,851 Beverly Park Substation 11,308,459 3,390,459 Estimated Reimbursable 3,359,035 3,155,109 Everett Riverfront 252, ,560 Line Extension 3,385,874 4,287,395 Cedar Valley Substation 96,047 3,200,430 Line Extension Non-Fee 585, ,570 Stanwood to Camano 115kV Line 200,000 50,000 Other 545, ,437 Camano Substation - Add 115kV Breakers and Xfrmr 214,723 - Plat Work 4,059,562 5,430,983 East Stanwood Substation 1,236, ,000 Street Light Install 2,479,724 2,510,766 Port Gardner Substation 2,794,441 3,801,550 Subtotal New Connection Construction $ 21,990,870 $ 22,840,732 Stimson to Sills Corner Transmission Line - 50, kV Ring Bus Station near Turners 178,910 - INFORMATION TECHNOLOGY CAPITAL 115kV Ring Bus Station near Woods Creek 308,020 1,429,190 ITS Automation/Improvement Projects $ 2,000,000 $ 2,019,396 N County 230kV Bank Addition 1,125,948 1,274,739 ITS Operations Hardware and Software 663, ,253 Subtotal Capital Expansion $ 19,093,012 $ 14,631,013 Subtotal Information Technology Capital $ 2,663,000 $ 2,632,649 Hartford Substation - 115Kv Loop $ 279,171 - Polaris Substation Upgrade 620,093 - SMART GRID Station Reliability Improvement Program 1,112, ,606 Smart Grid Test lab $ 86,789 $ 89,554 Oso Substation Upgrade 8,408,099 5,000,374 Distribution Automation 2,290,400 2,740,099 System Metering Enhancements 193,024 - Digital Communication 218,759 - Stimson-Stanwood 115kV Line Rebuild 200,152 - Advanced Metering 2,240,965 - Casino Substation - Replace Transformer 317,580 3,252,766 Outage Management System 318,864 - Stimson Crossing Substation - Double Bank 189,161 50,000 Energy Storage Demonstration Project (MESA 2) 3,700,000 2,669,025 Smokey Point Substation - Double Bank 9,171, ,914 Microgrid Energy Storage (MESA 3) 1,000,000 - Stanwood to Camano 115kV Line - Rebuild 99,982 50,000 Subtotal Smart Grid Capital $ 9,855,777 $ 5,498,677 Delta Substation - 5th Feeder 618,722 2,849,734 Twentieth Ave -Replace BK1 Swtichgear 2,835,268 44,854 TELECOMMUNICATIONS / WIRELESS ATTACHMENTS Subtotal Capital Upgrade $ 24,045,456 $ 12,370,248 Service to Telecommunication Companies $ 1,494,575 $ 1,520,333 Wood Pole Program $ 6,864,666 $ 6,508,501 Microwave Radio System 577,849 - Cable Replacement Program 5,799,989 5,475,279 Fiber Optic System 2,168,759 1,293,884 Distribution System Operational Improvements 588, ,464 Telecom Modernization - 432,242 Transmission System Operational Improvements 134,971 - Wireless Infrastructure/Voice Radio System 1,768, ,739 Facilities Relocations and Control Zone 4,131,813 3,794,538 Subtotal Telecommunications/Wireless Attachments $ 6,009,602 $ 4,026,197 Substation Equipment Replacement 571,684 - Substation Emergency Equipment 1,187,168 - FACILITIES CAPITAL Cascade Feeder Rebuild 765,356 2,076,107 Local Office Design and Construction $ 2,877,000 $ 3,662,074 Halls Lake - SCADA Control 317,912 - Operations Center Updates 2,412, ,186 Ballinger 5th Feeder 46,121 49,884 OPS Master Plan 5,207, ,618 Port of Everett North Marina 630, ,697 Other Facilities Capital 244,250 1,727,253 New Feeder Tie Between 4503 and ,217 3,551 75th Street Business Center Upgrades - 6,795,360 Martha Lake Reconductoring 506, ,347 Building/Land Purchases 5,500,000 - Underground Lynnwood and Aldewood Circuits 836,365 99,844 Subtotal Facilities Capital $ 16,240,250 $ 13,331,491 Woods Creek to Lake Chaplain Circuit Tie 102, ,984 Joint Pole Removal 529, ,021 OTHER CAPITAL Scada Upgrade 579, ,940 New and Replacement Vehicles $ 4,434,635 $ 3,533,425 Hat Island Cable 690,761 - Tools, Testing, and Office Equipment 657, ,564 Substation Circuit Switcher Replacement - 173,938 Transportation/Replacement Vehicles $ 5,091,935 $ 3,917,990 New Feeder Tie Between 133 and ,923 Subtotal Capital Asset $ 24,572,337 $ 21,581,018 Transmission Construction Unspecified $ 198,096 $ 49,895 LESS: O&M COSTS RELATED TO CAPITAL CONSTRUCTION (5,628,265) (9,291,850) Substation Improvements 287, ,000 Substation Security Project 503, ,265 Total Capital Expenditures $ 126,181,522 $ 93,246,466 Distribution Line Improvements Unspecified 1,258,340 1,200,140 Subtotal Capital Outlay $ 2,247,548 $ 1,958, /252 Snohomish County PUD 2018 PROPOSED BUDGET

219 2018 Proposed Budget Administration Division Operating and Maintenance by Cost Element Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time ,593, ,610, ,615,381 Labor - Overtime (428) 4,898 4,898 Employee and Retiree Benefits , Travel and Education , , ,717 Property and Liability Insurance Materials, Equipment & Supplies ,451 54,192 55,050 Coded Stock Material ,609 3,940 6,800 Public and Small Works Contracts Professional Services Contracts , , ,000 Other Contracted Services ,579 56,835 11,000 Rents and Utilities Land, Property and Easements Postage Dues, Memberships & Subscriptions ,175 60,635 61,553 Overheads/Other , ,000 1,035,716 Total Administration Division 13.8 $ 2,931, $ 3,193, $ 3,296,115 Snohomish County PUD 2018 PROPOSED BUDGET 219/

220 /252 Snohomish County PUD 2018 PROPOSED BUDGET

221 Snohomish County PUD 2018 PROPOSED BUDGET 221/

222 2018 Proposed Budget Finance Division Operating and Maintenance by Cost Element Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time ,034, ,363, ,107,085 Labor - Overtime , , ,000 Employee and Retiree Benefits , Travel and Education ,909 96,650 96,650 Property and Liability Insurance ,252,593 1,515,276 1,425,155 Materials, Equipment & Supplies , , ,880 Coded Stock Material ,589 42, ,500 Public and Small Works Contracts Professional Services Contracts ,220 3,707, ,208 Other Contracted Services ,335,237 2,453,941 5,731,581 Rents and Utilities ,180 1,180 Dues, Memberships & Subscriptions ,663 15,585 12,070 Overheads/Other ,693,858 5,219,585 5,267,174 Total Finance Division $ 17,095, $ 21,798, $ 21,841, /252 Snohomish County PUD 2018 PROPOSED BUDGET

223 Snohomish County PUD 2018 PROPOSED BUDGET 223/

224 /252 Snohomish County PUD 2018 PROPOSED BUDGET

225 2018 Proposed Budget Facilities and Security Division Operating and Maintenance by Cost Element Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time ,970, ,705, ,297,175 Labor - Overtime , , ,000 Employee and Retiree Benefits , Travel and Education ,020 30,300 30,275 Property and Liability Insurance Materials, Equipment & Supplies , ,200 1,001,800 Coded Stock Material , , ,000 Public and Small Works Contracts ,106 1,179,000 2,026,500 Professional Services Contracts ,111,799 1,891,000 1,933,600 Other Contracted Services ,907,986 1,587,845 1,977,700 Rents and Utilities , , ,360 Land, Property and Easements ,497-12,500 Postage Refunds (7,033) - - Dues, Memberships & Subscriptions ,461 5,485 2,890 Overheads/Other ,895,023 2,314,627 2,116,925 Total Facilities and Security Division $ 9,358, $ 12,007, $ 13,244,725 Snohomish County PUD 2018 PROPOSED BUDGET 225/

226 /252 Snohomish County PUD 2018 PROPOSED BUDGET

227 2018 Proposed Budget Information Technology Services Division Operating and Maintenance by Cost Element Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time ,577, ,952, ,875,948 Labor - Overtime , , ,000 Employee and Retiree Benefits , Travel and Education , , ,900 Property and Liability Insurance Materials, Equipment & Supplies ,237, ,100 1,809,243 Coded Stock Material ,500-10,000 Public and Small Works Contracts Professional Services Contracts ,793,741 1,425,200 2,043,000 Other Contracted Services ,390,821 7,130,568 8,795,906 Rents and Utilities , ,102 1,047,180 Land, Property and Easements Postage Dues, Memberships & Subscriptions ,078 15,000 11,920 Overheads/Other ,771,928 4,947,029 5,546,847 Total Information Technology Services $ 25,946, $ 23,310, $ 26,405,943 Snohomish County PUD 2018 PROPOSED BUDGET 227/

228 /252 Snohomish County PUD 2018 PROPOSED BUDGET

229 2018 Proposed Budget Distribution and Engineering Division Operating and Maintenance by Cost Element Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time ,686, ,908, ,567,855 Labor - Overtime ,210,240 5,228,168 3,177,528 Employee and Retiree Benefits , Travel and Education , , ,759 Property and Liability Insurance Materials, Equipment & Supplies ,873,160 3,530,251 4,225,839 Coded Stock Material ,369,211 2,547,343 1,612,353 Public and Small Works Contracts ,619,594 6,664,802 6,306,069 Professional Services Contracts , , ,672 Other Contracted Services ,630,173 2,087,447 2,829,774 Rents and Utilities , , ,516 Land, Property and Easements ,098 68, ,400 Postage Dues, Memberships & Subscriptions , , ,849 Refunds (45,512) - - Capital Operating Expense ,418,056 5,628,265 9,291,850 Overheads/Other ,626,034 18,603,153 17,149,808 Total Distribution and Engineering Division $ 68,274, $ 75,612, $ 75,177,288 Snohomish County PUD 2018 PROPOSED BUDGET 229/

230 2018 Proposed Budget Other Costs Operating and Maintenance by Cost Element Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time (480,905) (5,239,045) Labor - Overtime (112,657) - (145,000) Employee and Retiree Benefits (367,684) - (165,312) Travel and Education (30,020) Property and Liability Insurance Materials, Equipment & Supplies (5,937,703) - 833,500 Coded Stock Material , Public and Small Works Contracts Professional Services Contracts Other Contracted Services , , ,364 Rents and Utilities (41,180) Land, Property and Easements , Postage Dues, Memberships & Subscriptions , , ,693 Refunds (165) 100,000 (6,100) Uncollectible Expense ,910,645 2,748,808 2,699,533 Overheads/Other (66,706,738) (77,629,528) (78,840,382) Capital Operation Expense (1,148,877) - - Total Other Costs $ (71,049,143) $ (74,010,438) $ (80,187,949) /252 Snohomish County PUD 2018 PROPOSED BUDGET

231 2018 PROPOSED BUDGET The Generation System is financed and accounted for as a system separate from the Electric System. The Generation System consists of the Jackson Hydroelectric Project (an operating generating facility with a nameplate capacity of MW located on the Sultan River), the Youngs Creek Hydroelectric Project (a 7.5 MW project located near Sultan) the Woods Creek Hydroelectric Project (a 650 KW project also located near Sultan), and the Hancock and Calligan Creek projects (both 6 MW projects located in King County.) The PUD s continuing research and development of low-impact hydroelectric projects and renewable resources are part of Generation System expenditures. The Electric System has covenanted to purchase all power and energy available from the Generation System. The Generation System is charged for administrative functions provided by the Electric System that support its operations. Snohomish County PUD 2018 PROPOSED BUDGET 231/

232 COMPARATIVE ANALYSIS Schedule 2 is a summary comparing the 2018 Proposed Budget for the Generation System with the 2017 Budget. Schedule 2 GENERATION SYSTEM COMPARATIVE FINANCIAL DATA ($000 s) Proposed Budget Budget Operating Revenues Energy Sales $ 41,482 $ 45,658 Other Operating Revenues Total Operating Revenues $ 41,482 $ 45,658 Operating Expenses Operating & Maintenance Expenses $ 6,513 $ 7,787 Taxes Depreciation 7,738 3,911 Total Operating Expenses $ 14,346 $ 11,796 Net Operating Income $ 27,136 $ 33,862 Other Income & Expense 1, Interest Charges 7,267 6,933 Contributions 50 Net Income $ 21,312 $ 27,932 Cash Adjustments to Net Income Capital Expenditures $ (34,098) $ (14,196) Debt Service Principal (28,612) (28,684) Depreciation 7,738 3,911 Loan Repayments and Others 197 Estimated Changes in Reserves $ (33,463) $ (11,036) Operating Revenues The majority of the Generation System s costs, and the MWh generated, are passed on to the Electric System through energy sales. Energy sales are $4 million higher in the 2018 Proposed Budget largely due to the completion of the Hancock and Calligan Creek projects in 2018, resulting in project completion expenditures and increasing operating and maintenance expenditures. Other major impacts include expenditures for the Water Temperature Conditioning project and transmission line replacement for the Jackson project. Operating Expenditures Operating and maintenance expenditures in the 2018 Proposed Budget are $1.3 million higher than 2017 primarily due to Hancock and Calligan Creek project completion and operation in Estimated Deprecation expenditures of $3.9 million are lower than the 2017 Budget due to asset retirements. Depreciation is an estimate of the reduced value of the PUD s fixed assets. Interest charges are down, no new debt in Cash Adjustments to Net Income Capital expenditures are budgeted at $14.2 million, $19.9 million lower in 2018 than Capital expenditures in 2018 include $5.8 million in construction costs related to completing the Calligan and Hancock Creek hydroelectric projects and $7.8 million in other capital projects, primarily related to water temperature conditioning phase 2 for the Jackson hydroelectric project. Debt service principal is roughly equivalent in 2018 to Chart F illustrates the relative percentages of Generation System costs transferred to the Electric system as a component of purchased power /252 Snohomish County PUD 2018 PROPOSED BUDGET

233 2018 Proposed Budget Exhibit 6 Generation System - Combined Operating Revenues FTE Results FTE Budget FTE Budget Net Energy Sales Jackson Hydro ,877, ,088, ,185,176 Generation System - Other 28,506,237 18,802,948 17,895,100 Youngs Creek 1,768,538 1,795,067 1,942,477 Woods Creek 505, , ,477 Renewable Generation 216, Calligan Hydro - 1,228, ,509 Hancock Creek - - 1,360,792 Total Net Energy Sales $ 53,874,176 $ 41,482,158 $ 45,657,531 Non Operating Revenues KC Termination Reserve 6,032, Total Other Operating Revenues $ 6,032,000 $ - $ - Total Operating Revenues $ 59,906,176 $ 41,482,158 $ 45,657,531 Operating Expenses Operating & Maintenance Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time ,099, ,484, ,813,272 Labor - Overtime ,932 80,000 83,000 Travel and Education ,135 55,525 61,134 Insurance and Claims , , ,857 Materials, Equipment & Supplies , , ,505 Public and Small Works Contracts , , ,000 Professional Services Contracts , , ,316 Other Contracted Services , ,452 1,064,487 Rents and Utilities , , ,500 Uncollectible Expense , Land, Property and Easements ,457 5,835 8,750 Dues, Memberships & Subscriptions ,959 25,030 51,525 Overheads ,224,978 1,551,057 1,819,354 Total Operating & Maintenance Expenses $ 6,543,445 $ 6,557,283 $ 7,786,700 Total Taxes 107,753-95,430-97,640 - Total Depreciation 3,718,185 7,738,329 3,911,347 Total Generation Operating Expenses - $ 10,369,382 $ 14,391,042 $ 11,795,687 Snohomish County PUD 2018 PROPOSED BUDGET 233/

234 2018 Proposed Budget Exhibit 6 Jackson Hydroelectric - Profit Center Operating Expenses Operating & Maintenance Cost Element FTE Results Budget Budget Labor - Straight Time $ 1,869,042 $ 2,484,931 $ 2,783,272 Labor - Overtime ,958 75,000 75,000 Travel and Education ,135 55,525 61,134 Insurance and Claims , , ,563 Materials, Equipment & Supplies , , ,755 Public and Small Works Contracts ,297 99, ,000 Professional Services Contracts , , ,516 Other Contracted Services , , ,722 Rents and Utilities ,724 99,070 75,600 Uncollectible Expense , Land, Property and Easements ,457 5,835 8,750 Dues, Memberships & Subscriptions ,959 23,030 51,525 Overheads ,097,584 1,550,407 1,793,294 Total Operating & Maintenance Expenses $ 5,929,788 $ 6,266,836 $ 7,202,130 Total Taxes $ 103,406 $ 89,481 $ 83,256 Total Depreciation $ 2,987,259 $ 6,928,163 $ 3,076,876 Jackson Total Operating Expenses - $ 9,020,452 $ 13,284,480 $ 10,362,262 Other Generation - Profit Center Operating Expenses Operating & Maintenance Cost Element FTE Results Budget Budget Labor - Straight Time $ 12,902 $ - $ 30,000 Professional Services Contracts ,304 15,000 12,000 Other Contracted Services , Overheads ,619-19,200 Total Operating & Maintenance Expenses $ 23,654 $ 15,000 $ 61,200 Total Taxes $ - $ - $ - Total Depreciation $ - $ - $ - Other Generation Operating Expenses $ 23,654 $ 15,000 $ 61, /252 Snohomish County PUD 2018 PROPOSED BUDGET

235 2018 Proposed Budget Exhibit 6 Renewable Generation - Profit Center Operating Expenses Operating & Maintenance Cost Element FTE Results Budget Budget Labor - Straight Time $ 70,436 $ - $ - Other Contracted Services ,758 Overheads , Total Operating & Maintenance Expenses $ 216,513 $ - $ - Total Taxes $ - $ - $ - Total Depreciation $ - $ - $ - Renewable Generation Total Operating Expenses $ 216,513 $ - $ - Youngs Creek - Profit Center Operating & Maintenance Cost Element FTE Results Budget Budget Labor - Straight Time $ 77,993 $ - $ - Labor - Overtime ,903-5,000 Insurance and Claims ,753 25,497 20,573 Materials, Equipment & Supplies ,858 25,000 32,000 Public and Small Works Contracts ,000 35,000 Professional Services Contracts ,304 7,000 - Other Contracted Services ,153 8,000 29,750 Rents and Utilities ,072 5,000 16,400 Dues, Memberships & Subscriptions ,000 - Overheads ,135-1,880 Total Operating & Maintenance Expenses $ 207,171 $ 82,497 $ 140,603 Total Taxes $ 3,970 $ 3,886 $ 3,886 Total Depreciation $ 692,897 $ 769,897 $ 792,994 Youngs Creek Total Operating Expenses $ 904,039 $ 856,280 $ 937,483 Snohomish County PUD 2018 PROPOSED BUDGET 235/

236 2018 Proposed Budget Exhibit 6 Woods Creek - Profit Center Operating Expenses Operating & Maintenance Cost Element FTE Results Budget Budget Labor - Straight Time $ 69,240 $ - $ - Labor - Overtime ,000 3,000 Insurance and Claims ,133 2,405 2,575 Materials, Equipment & Supplies ,007 66,895 21,000 Public and Small Works Contracts ,872 5,000 10,000 Professional Services Contracts ,200 Other Contracted Services ,065 18,000 29,770 Rents and Utilities ,610 20,000 9,500 Overheads , ,380 Total Operating & Maintenance Expenses $ 166,319 $ 117,950 $ 78,425 Total Taxes $ 377 $ 331 $ 331 Total Depreciation $ 38,029 $ 40,269 $ 41,477 Woods Creek Total Operating Expenses $ 204,725 $ 158,550 $ 120,233 Calligan - Profit Center Operating Expenses Operating & Maintenance Cost Element FTE Results Budget Budget Insurance and Claims $ - $ - $ 20,573 Materials, Equipment & Supplies ,500 29,500 Public and Small Works Contracts ,000 Professional Services Contracts ,800 Other Contracted Services ,252 Rents and Utilities ,500 Overheads ,800 Total Operating & Maintenance Expenses $ - $ 37,500 $ 137,425 Total Taxes $ 1,732 $ 5,084 Total Depreciation $ - $ - $ - Calligan Creek Total Operating Expenses $ - $ 39,232 $ 142, /252 Snohomish County PUD 2018 PROPOSED BUDGET

237 2018 Proposed Budget Exhibit 6 Hancock - Profit Center Operating Expenses Operating & Maintenance Cost Element FTE Results Budget Budget Insurance and Claims $ - $ - $ 20,573 Materials, Equipment & Supplies ,500 29,250 Public and Small Works Contracts ,000 Professional Services Contracts ,800 Other Contracted Services ,993 Rents and Utilities ,500 Overheads ,800 Total Operating & Maintenance Expenses $ - $ 37,500 $ 166,916 Total Taxes $ - $ 1,732 $ 5,084 Total Depreciation $ - $ - $ - Hancock Creek Total Operating Expenses $ - $ 39,232 $ 172,000 Generation System - Capital Expenditures Results Budget Budget Jackson Hydroelectric $ 4,731,827 $ 6,342,000 $ 7,639,209 Renewable Generation 159, , ,368 Youngs Creek - 150, ,704 Woods Creek 129, ,000 - Calligan Creek 14,819,725 11,848,000 2,669,594 Hancock Creek 17,615,114 14,763,000 3,170,644 Total Generation System Capital $ 37,456,083 $ 34,098,000 $ 14,195,519 Snohomish County PUD 2018 PROPOSED BUDGET 237/

238 2018 PROPOSED BUDGET The Water System is financed and accounted for as a system separate from the Electric and Generation Systems. It operates primarily to provide water service to approximately 20,300 customers in central Snohomish County. The Water System purchases the majority of the water it sells to customers from the City of Everett. The assets of the system include transmission mains, pump stations, distribution mains and services, supply wells, treatment plants, reservoirs, meters, maintenance facilities, and equipment. The Water System is charged for administrative functions provided by the Electric System. System Acquisitions The 2018 Proposed Budget includes funding to acquire the Warm Beach Water system assets, which includes about 600 customers. The acquisition will ensure long-term viability of the water system and may be integrated with the Kayak Water system. The 2018 Proposed budget includes funding from loans and grants from the Drinking Water State Revolving Fund (DWSRF) to help offset some of the acquisition and costs. ASSUMPTIONS The 2018 Proposed Budget is based on the following assumptions: Water Purchases The majority of the water sold by the PUD is purchased from the City of Everett. The City of Everett has estimated a 3.5% increase in its wholesale water rates in Water Rates The 2018 Proposed Budget reflects a 3% general rate increase, effective January 1, 2018, subject to Board review and public hearing. Full-time Equivalent Employees (FTE) The 2018 Proposed Budget does not include any additional FTE s (Note: Employee figures do not include services provided by the Electric System including accounting and finance, real estate, employee resources, vehicle and equipment maintenance, telecommunications, legal, contracts, facilities and customer service functions.) /252 Snohomish County PUD 2018 PROPOSED BUDGET

239 COMPARATIVE ANALYSIS Schedule 3 is a summary comparing the 2018 Operating Budget for the Water System with the 2017 Operating Budget. Schedule 3 WATER SYSTEM COMPARATIVE FINANCIAL DATA ($000 s) Proposed Budget Budget Operating Revenues Water Retail Sales $ 11,251 $ 12,005 Water Wholesale Sales Other Operating Revenues Total Operating Revenues $ 11,841 $ 12,683 Operating Expenses Purchased Water $ 2,400 $ 2,377 Operating & Maintenance 5,688 5,613 Taxes Depreciation 3,048 2,907 Total Operating Expenses $ 11,735 $ 11,526 Operating Revenues Water retail sales are estimated at $12 million. Wholesale sales have increased primarily due to higher than expected purchases from the cities of Snohomish and Gold Bar. Operating Expenditures Purchased water costs are budgeted at $2.4 million, similar to 2017 levels. Water purchases from the City of Everett are offset partially by production from the PUD s Lake Stevens wells water treatment facility. Operating and maintenance expenditures for 2018 are estimated to be roughly equivalent to 2017 budgeted levels. Contributions are expected to decrease due to a lower level of developer activity. Cash Adjustments to Net Income The 2018 Proposed Budget provides approximately $6.9 million for capital expenditures and construction projects and features several significant main replacements as well as capital projects to bring the Warm Beach system to alignment with PUD service standards. The table below lists the significant capital expenditures included in the 2018 Proposed Budget. Net Operating Income $ 106 $ 1,157 Other Income & Expense 1, Interest Charges Contributions 2,825 2,729 Net Income $ 3,239 $ 3,973 Cash Adjustments to Net Income Capital Expenditures $ (4,985) $ (6,858) Debt Service Principal (2,025) (2,109) Depreciation 3,048 2,907 Loan Repayments and Others (927) 525 Estimated Changes in Reserves $ (1,650) $ (1,562) Significant 2018 Water System Construction Projects/Programs ($000 s) CIP #43-32nd St SE Main Replacement $2,417 CIP #310 - Warm Beach System Upgrade 1,071 CIP #49-87th Ave NE Main Replacement 938 Snohomish County PUD 2018 PROPOSED BUDGET 239/

240 2018 Proposed Budget Water System Operating and Other Revenue Exhibit 7 Operating Revenues Water Retail Sales Results Budget Budget Sale of Water - Retail SF & MF (includes Surcharge) $ 10,688,898 $ 10,639,800 $ 11,383,296 Low Income / Senior Discounts - (130,000) (110,000) Sale of Water - Commercial 717, , ,495 Total Water Retail Sales 11,406,433 11,251,400 12,004,791 Sale of Water - City of Granite Falls Wholesale 244, , ,418 Sale of Water - City of Arlington Wholesale 88, ,000 91,164 Sale of Water - Other (Snohomish & Goldbar) 10,476 15,000 75,000 Total Wholesale Water Sales 343, , ,582 Total Water Sales 11,750,097 11,586,400 12,422,373 Other Operating Revenues Lake Roesiger Septic Tank Pumping Revenue 10,512 15,000 15,150 Property Rental 203, , ,750 Miscellaneous Receipts & Engineering Fees/Other Other Revenue 110, ,539 50,000 50,650 Total Other Revenues 324, , ,550 Total Operating Revenues $ 12,074,636 $ 11,841,400 $ 12,682,923 Other Revenue Interest Income and Other Investment Income 149, , ,800 Assessments for LUDS Interest 50,594 60,000 44,000 Grant Income ,515 Marysville Amortization - 927,000 - Subtotal - Interest Income and Other 200,021 1,052, ,315 Contributions General Facilities Charges 2,210,153 1,500,000 1,400,078 New Service Connections 431, , ,600 Distribution Service Charges 198, , ,625 Non-Cash Contributions/Donated Plant 679,275 1,000,000 1,000,000 Subtotal - Contributions 3,519,452 2,825,000 2,729, /252 Snohomish County PUD 2018 PROPOSED BUDGET

241 2018 Proposed Budget Water System Operating Expenses Exhibit Operating & Maintenance Cost Element FTE Budget FTE Budget FTE Budget Labor - Straight-time $ 2,159, $ 1,999, $ 1,783,758 Labor - Overtime , , ,000 Travel and Education ,650 27,000 20,779 Property and Liability Insurance , , ,540 Rents and Utilities , , ,000 Postage ,000 25,000 25,000 Dues, Memberships & Subscriptions ,200 7,200 7,500 Public and Small Works Contracts ,000 50,000 55,000 Professional Services Contracts , , ,000 Other Contracted Services , ,000 1,370,200 Materials, Equipment & Supplies , , ,375 Uncollectible Expense ,100 74,990 60,024 Coded Stock Material ,000 75,000 60,000 Land, Property and Easements ,000-20,000 Refunds , Overheads ,048,795 1,265,123 1,361,236 A&G Credit - - (523,807) Total Operating & Maintenance by Cost Element 28.0 $ 5,854, $ 5,687, $ 5,612,605 Purchased Water 2,200,000 2,400,000 2,376,815 Taxes 540, , ,660 Depreciation 2,988,000 2,850,000 2,907,000 Total Operating Expense $ 11,582,996 $ 11,537,966 $ 11,526,081 Snohomish County PUD 2018 PROPOSED BUDGET 241/

242 2018 Proposed Budget Water System Exhibit 9 PROJECT DESCRIPTION PHASE Donated Plant Coded Stock Coded Stock - Overhead Materials /Equip /Supplies Labor Labor Benefits PSC PWC Other Contracted Services Land & Easements A&G Overhead AFUDC TOTAL Design & Crew Inspection for Donated Plant 0 9,000 1,440 7, ,000 99, ,043 1,000 19,102 6, ,000 Donated Plant 1,000, ,000,000 CIP #43-32nd St SE Main Replacement Design / Construction 0 3, , ,000 67,200 20,000 1,910,000 7,720 1, ,535 53,186 2,417,000 CIP #49-87th Ave NE Main Replacement Design / Construction 0 1, ,500 40,000 25,600 5, , ,344 20, ,000 CIP #48 Frontier Circle Main Replacement CIP #98 - Forced Right of Way Relocations / Replacements Construction Carryover ,029 1, , ,973 5, ,000 Design / Construction 0 5, ,000 22,000 14,080 2, , ,217 2, ,000 CIP #300 - Misc. Meter Replacement Program 0 72,000 11,520 9,870 25,000 16, ,811 3, ,000 CIP #301 - Vehicles and Equipment ,400 2,000 1, ,234 3, ,000 CIP #302 Misc Power Operated Equipment ,282 4,000 2, ,121 3, ,000 CIP #305 - New Services 0 136,000 21,760 27,700 75,000 48, , ,814 7, ,000 CIP #310 - Warm Beach Consolidation Design / Construction 0 29,000 4,640 73, , , , ,000 10,000 1,138 90,655 23,567 1,071,000 TOTAL CAPITAL TO PLANT: 1,000, ,305 41, , , , ,202 3,226,600 44,263 4, , ,927 6,859, /252 Snohomish County PUD 2018 PROPOSED BUDGET

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