PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY

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1 PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY Board of Commissioners Meeting December 11, 2018

2 Public Utility District No. 1 of Lewis County Date Time 12/11/ :00 AM Meeting called by Commissioner Dahlin Location 345 NW Pacific Avenue, Chehalis, WA Item # Item Owner 1 Call to Order President 2 Changes/Additions to Agenda President 3 Public Comments (Limit to 3 minutes per person) Public 4 Approval of Consent Agenda (All matters listed within the Consent Agenda have been distributed to each member of the Commission for reading and study, are considered to be routine, and will be enacted by one motion of the Commission with no separate discussion. If separate discussion is desired by any member of the Commission, that item will be removed from the Consent Agenda and placed on the Business Agenda by request.) a) Minutes of December 4, 2018 commission meeting; and b) Cowlitz Falls Project and Electric System vouchers c) Travel Authorization-CEATI Hydropower Conference 5 Business Agenda a) Resolution 2826-ES 2019 Budget b) Resolution 2827-Rates (1 st Reading) c) Resolution 2828-Treasurer d) Cowlitz Falls Project Budget e) Risk Management Policy f) Election of Officers 6 Other Business Davis a) Davis b) Davis c) Davis d) Roden e) Samuelson f) Roden Break (5 Minutes) 7 Management Report a) Status of the Budget a) Bauer 8 Meeting Reports 9 Adjournment ***9:00 a.m. Workshop Agenda

3 The Board may meet in Executive Session for the purpose of discussing matters as authorized by RCW (1) such as, but not limited to: the sale or acquisition of real estate, reviewing negotiations on the performance of a publicly bid contract, receiving and evaluating complaints or charges against an officer or employee, evaluating the qualifications of an applicant or performance of an employee, and/or consulting with legal counsel on litigation or potential litigation. Announcement of Executive Session The regular meeting will recess so that the Commissioners, and enter into an Executive Session for ( ) minutes until a.m. as authorized by RCW (1) section : (a) To consider matters affecting national security; (b) To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price; (c) To consider the minimum price at which real estate will be offered for sale or lease when public knowledge regarding such consideration would cause a likelihood of decreased price. However, final action selling or leasing public property shall be taken in a meeting open to the public; (d) To review negotiations on the performance of publicly bid contracts when public knowledge regarding such consideration would cause a likelihood of increased costs; (e) To consider, in the case of an export trading company, financial and commercial information supplied by private persons to the export trading company; (f) To receive and evaluate complaints or charges brought against a public officer or employee. However, upon the request of such officer or employee, a public hearing or a meeting open to the public shall be conducted upon such complaint or charge; (g) To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW (4), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public; (h) To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public; (i) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. This subsection (1)(i) does not permit a governing body to hold an executive session solely because an attorney representing the agency is present. For purposes of this subsection (1)(i), "potential litigation" means matters protected by RPC 1.6 or RCW (2)(a) concerning: (i) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party; (ii) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or (iii) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency. Page 2

4 Commissioner s Calendar Upcoming Meetings, Events, Etc. 12/10/2018 to 4/25/2019

5 December 10, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia December 11, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. December 12, 2018 Wednesday 6:00 PM - 9:00 PM Commissioner Lloyd Berg Retirement Celebration -- Kitsap Golf & Country Club Ballroom NW Golf Club Hill Road, Bremerton, WA RSVP with payment by November 30 th to Corine Vichi at (360) Buffet Dinner $36.25/person make check payable to KPUD. December 13, 2018 Thursday 8:00 AM - 12:00 PM PPC Members Forum - Annual Meeting -- Sheraton Inn - Portland Airport December 18, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. December 25, 2018 Tuesday All Day Office Closed-Christmas Stacy Davis 1 12/7/ :41 AM

6 December 31, 2018 Monday All Day New Year's Eve -- United States January 1, 2019 Tuesday All Day New Year's Day -- United States All Day Office Closed January 14, 2019 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia January 18, 2019 Friday 6:00 PM - 8:00 PM Chamber of Commerce Annual Banquet -- TransAlta Commons at Centralia College January 23, 2019 Wednesday 12:00 AM - 12:00 AM ENW Executive Board Meetings -- Olympia All Day ENW Board of Directors Meetings -- Olympia January 24, 2019 Thursday 12:00 AM - 12:00 AM ENW Executive Board Meetings -- Olympia Please See Above February 11, 2019 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia February 24, 2019 Sunday 12:00 AM - 12:00 AM APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. February 25, 2019 Monday All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above Stacy Davis 2 12/7/ :41 AM

7 February 26, 2019 Tuesday All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above February 27, 2019 Wednesday All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above February 28, 2019 Thursday All Day All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above ENW Executive Board Meetings -- TBD If needed March 1, 2019 Friday 12:00 AM - 12:00 AM APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above March 6, 2019 Wednesday 12:00 AM - 12:00 AM TEA's 2019 Energy Symposium -- Florida Please save the date for TEA s 2019 Energy Symposium! When: Wednesday, March 6 Friday, March 8, 2019 Where: One Ocean Resort in Atlantic Beach, FL Registration and hotel reservation information will be sent by December 7, Stacy Davis 3 12/7/ :41 AM

8 March 6, 2019 Continued Wednesday March 7, 2019 Thursday All Day TEA's 2019 Energy Symposium -- Florida Please See Above March 8, 2019 Friday 12:00 AM - 12:00 AM TEA's 2019 Energy Symposium -- Florida Please See Above March 11, 2019 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia March 26, 2019 Tuesday 12:00 AM - 12:00 AM ENW Executive Board Meetings -- Tri Cities Including budget workshop All Day ENW Participants Review Board Meetings -- Tri Cities In conjunction with budget review meeting March 27, 2019 Wednesday All Day ENW Executive Board Meetings -- Tri Cities Please See Above March 28, 2019 Thursday 12:00 AM - 12:00 AM ENW Executive Board Meetings -- Tri Cities Please See Above April 8, 2019 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia April 24, 2019 Wednesday 12:00 AM - 12:00 AM ENW Executive Board Meeting -- Tri Cities All Day ENW Board of Directors Meeting -- Tri Cities Stacy Davis 4 12/7/ :41 AM

9 April 25, 2019 Thursday 12:00 AM - 12:00 AM ENW Executive Board Meeting -- Tri Cities Please See Above Stacy Davis 5 12/7/ :41 AM

10 Changes/Additions to the Agenda

11 Public Comment Members of the public will have an opportunity to speak during the open public meeting. Please limit individual to a maximum of three (3) minutes.

12 Consent Agenda a) Minutes of December 4, 2018 Commission Meeting; b) Cowlitz Falls Project and Electric System vouchers; and c) Travel Authorization

13 MINUTES OF THE MEETING OF COMMISSIONERS December 4, 2018 The regular meeting of the Commissioners of Public Utility District No. 1 of Lewis County was held in the Morton Office of the District on the above date at 10:00 a.m. Those present were Dean Dahlin, President; Ben Kostick, Vice President and Tim Cournyer, Secretary. Also present were Chris Roden, General Manager; Rich Bauer, Treasurer; Brad Ford, Auditor; and Stacy Davis, Executive Assistant. Additional attendees included: Lora Provolt, HR Manager; Bryan Watt, Operations Manager; Joe First, Cowlitz Falls Project Superintendent; Jeff Baine, IS Manager; Matt Samuelson, Power Supply Manager; Jeff Shupe, Engineering Manager. Ronn Schuttie, member of the public was also present. Mr. Bauer led the flag salute. Ms. Davis requested that the renewal of the Burton Creek Hydroelectric Contract be added to the Agenda. Commissioner Cournyer moved to approve the Consent Agenda as presented. The motion was seconded by Commissioner Kostick. The Consent Agenda consisted of: a) Minutes of the November 27, 2018 Commission meeting; b) Electric Service vouchers numbered to and including totaling $687, and Cowlitz Falls Project vouchers numbered to and including totaling $44,971.58; and c) Resolution No. 2825, Charging Off Uncollectible Accounts totaling $10, Commissioner Dahlin supported the motion and it carried unanimously. Mr. First recommended approving an Engineering Consulting Services Agreement between the District and McMillen for Task Order No for Engineering Support for the North Slope Right Abutment Rockwall Mitigation. Mr. First provided details of the engineering

14 services under Task Order No Following discussion, Commissioner Kostick moved to approve the Engineering Consulting Services Agreement between the District and McMillen for engineering support for the North Slope Right Abutment Rockfall Mitigation as presented. The motion was seconded by Commissioner Cournyer. Following additional discussion regarding the interim and long term measures for solutions, Commissioner Dahlin supported the motion and it carried unanimously. At 10:08 a.m. Commissioner Dahlin recessed the regular public meeting to conduct a public hearing on the proposed 2019 Electric System (ES) Budget. Commissioner Cournyer moved to open the public hearing on the proposed 2019 ES Budget. The motion was seconded by Commissioner Kostick. Commissioner Dahlin supported the motion and it carried unanimously. Mr. Roden noted that this is the third public budget hearing and noted that all the departments evaluated the comments submitted by the public and took them under advisement. Mr. Bauer reported that the proposed 2019 ES budget includes a proposed 5% rate increase on kwh consumption resulting in approximately $79.3 million in revenue and approximately $79.5 million in expenditures. Mr. Bauer noted that approximately $209,000 in cash reserves will be used to cover the proposed 2019 ES budget deficit. Mr. Bauer provided details of the revenues and expenses including budgeted labor costs. Mr. Schuttie provided comments pertaining to the need to look to the future for new technologies and resources including: investing into solar projects, and new carbon plates and capacitors that are taking the place of batteries. Mr. Schuttie noted that he subsidizes other users and noted that he is paying more per kwh than many other customers. Mr. Schuttie noted that the big issues in the future need to be reviewed. Mr. Schuttie noted that he has an ideal site for a solar project and noted that there are green energy opportunities within Lewis County that the District should consider. Mr. Samuelson noted that the District purchases the attributes from

15 qualifying renewable energy projects as the District does not currently need the energy or the capacity of new resources to meet its needs. Mr. Shupe and Mr. Roden outlined the future capital planning that is being investigated and reveiwed. Mr. Roden thanked Mr. Schuttie for his comments. Commissioner Kostick encouraged Mr. Schuttie to attend more public meetings. Following discussion, Commissioner Kostick moved to close the Public Hearing on the proposed 2019 ES budget and directed staff to prepare a resolution for the adoption of the 2019 ES Budget. The motion was seconded by Commissioner Cournyer. There was no further discussion. Commissioner Dahlin supported the motion and it carried unanimously. At 10:30 a.m. the regular meeting reconvened. At 10:30 a.m. Commission Dahlin recessed the regular public meeting to conduct a public hearing on the proposed 2019 electric rates. Commissioner Kostick moved to open the public hearing on the proposed 2019 Rates. The motion was seconded by Commissioner Cournyer. Commissioner Dahlin supported the motion and it carried unanimously. Mr. Roden noted that the 2019 ES Budget includes a reduction in proposed expenditures, utilization of cash in the amount of $209,000, and a 5% rate increase effective January 1, Mr. Ford outlined the reasons behind the proposed rate increase as: 1) Bonneville Power Administration (BPA) rate increases, 2) reduced revenues from surplus power sales, 3) requirements of Initiative 937, 4) conservation, 5) necessary capital investments, 6) increasing costs for operations, and 7) need to build cash reserves. Mr. Ford noted that the renewable requirement is set to increase in 2020 to 15% qualifying renewables. Mr. Ford further noted future concerns regarding the loss of the Residential Exchange Credit, TransAlta shutdown in near future, and potential carbon pricing that will have effects on the budget and ultimately the rates. District staff presented their proposal to increase kwh rates 5% for all customer classes effective January 1, Mr. Ford noted that the 5% increase for a

16 residential customer using 1,400kWh per month would see an increase of approximately $4.43 per month, not including city taxes or other fees. Mr. Ford provided details and services the District provides to assist customers. Mr. Schuttie provided additional comments regarding increased charges for those customers that choose to live remotely compared to those that live closer to the substations. Mr. Shupe and Mr. Ford noted that currently the rates are the same for all those customers in a particular rate class and are not dependent on the location of where they obtain services. Commissioner Dahlin noted that Mr. Bob McCormick provided written comments and requested that his comments submitted on December 3, 2018 at 2:20 p.m. be submitted into the minutes verbatim. Mr. McCormick comments, 1) I recommend a hiring freeze (now-todayimmediately) except for replacement of retirees. 2) Wage freeze for all staff employees until Manager and Commissioners figure out how to run the PUD without deficit spending. 3) Future staff raises to be no more than the negotiated union raise. 4) No more market analysis mid-year raises for staff. 5) transportation equipment I agree about replacing equipment already in use Digger/Derrick #126, Chipper 187, Meter #180, Meter Reader # 200 but no more new equipment until the PUD is not operating in a deficit. 6) No more summer help who do not reside in Lewis Co. those jobs should be for Lewis Co. PUD rate payer s kids. 7) No more working from home. Mr. Ford noted that public comment will be accepted until Friday, December 7, Following discussion, Commissioner Kostick moved to close the public hearing of the rate proceedings and directed staff to prepare a resolution for adoption of a 5% rate increase. The motion was seconded by Commissioner Cournyer. Commissioner Dahlin supported the motion and it carried unanimously. At 10:46 a.m. the meeting recessed for a five minute break. At 10:52 a.m. the meeting reconvened.

17 Mr. Samuelson provided a recommendation to authorize the Manager to sign the renewal of the Burton Creek Hydroelectric Power Purchase Agreement. Mr. Samuelson noted that the current contract term is set to expire at the end of Mr. Samuelson outlined that the pricing structure of the resource reflects the District s avoided costs and noted that the renewal term is five years. Following discussion, Commissioner Cournyer moved to authorize the Manager to sign the renewal for the Burton Creek Hydroelectric Power Purchase Agreement as presented. The motion was seconded by Commissioner Kostick. There was no further discussion. Commissioner Dahlin supported the motion and it carried unanimously. Mr. Roden recapped a conversation with Thurston County PUD about their potential purchase of a water system within Lewis County and noted the District is not currently in the water business and does not wish to be at this time. Mr. Roden noted that the Cowlitz Falls Project 2019 budget will be presented to the Commissioners at the next regularly scheduled Commission meeting. Mr. Roden noted that the Cowlitz Falls Project is a department within Lewis County PUD and are not a separate entity. Mr. Roden outlined the current budget process for the Cowlitz Falls Project budget and noted that the processes are being re-evaluated and will likely be changed in the future. Mr. Samuelson noted that BPA has been invited to attend the next regularly scheduled meeting to provide comments on the Cowlitz Falls Project Budget. Mr. First and Mr. Roden noted that the regular staffing level for hydroelectric projects near our size is higher than our current eight employees and noted that staffing levels are being evaluated. Ms. Provolt noted additional positons are included in the upcoming budget for the Cowlitz Falls Project including: resource worker and assistant superintendent. Ms. Provolt further noted that two journeyman operators positions are also included to replace a vacant position and upcoming retirement. Ms. Provolt discussed the potential of beginning a Journeyman Apprenticeship Program for the Cowlitz Falls Project as

18 well. Mr. Roden outlined the importance of allocating time spent working on the Cowlitz Falls Project for all District employees and Commissioners. Mr. Roden noted that the District currently has more work than we can be accomplish at this time and staff are working through our process flow. Mr. Roden and staff are working together to have some clearly defined goals for all Department Heads. Mr. Roden further noted that workshops topics will be reviewed and scheduled for Mr. First reported on the Cowlitz Falls Project for the month of October 2018 including: plant operations, line availability, river flow, output, and maintenance activities. Mr. Shupe followed-up on solar projects that were awarded by the TransAlta Transitional Grant and noted that the contractor has requested a letter of support from the District on the proposed projects. Mr. Shupe further reported that the delinquent fiber customer has paid the delinquent bill. Mr. Shupe noted that repairs are being conducted at the Morton Substation and at the Main Street Substation. Mr. Watt thanked the Commissioners on the upcoming proposed approval of the 2019 budget. Mr. Watt noted that the tree crew completed work on Highway 508. Mr. Watt further noted his appreciation of Mr. Roden in support of the Christmas Party and the Santa Parade. Mr. Watt announced that the District was awarded first in its division at the Santa Parade. Mr. Samuelson noted that contributions for the Christmas Holiday Dinners are currently being collected and any donations are needed by next Thursday. Mr. Samuelson reported that, as anticipated, two customers did not sign the BPA TC-20 transmission settlement and the BP-20 partial settlement. BPA provided notice that critical mass was achieved and the settlement agreements are moving forward. Ms. Samuelson reported that he and Mr. Roden will be meeting with Energy Northwest regarding electric vehicle charging stations. Mr. Samuelson further reported on the energy market and noted that currently the District is good for December 2018.

19 Mr. Baine reported that he has been working with public records and provided a reminder to submit records pertaining to public records in a timely manner. Ms. Provolt reported on current and future recruitments including: CFO, backfilling of a CSR, electrical engineer and lineman, mechanic, HR generalist, and Cowlitz Fall Project positions as discussed earlier. Ms. Provolt noted that a Billing Clerk recently provided their intent to retire in May Ms. Provolt and Mr. Roden discussed the Apprenticeship Program and the benefits of that program. Commissioner Dahlin noted that Washington Public Utility Districts Association (WPUDA) Annual Conference is this week. Commissioner Dahlin provided a weather prediction for the near future. There being no further business, Commission Kostick moved to adjourn. The motion was seconded by Commissioner Cournyer. Commissioner Dahlin supported the motion and it carried unanimously. ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary

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25 Public Utility District No. 1 of Lewis County Memorandum Date: 12/11/2018 To: Commissioners Dahlin, Kostick, and Cournyer From: Joe First CC: Chris Roden Requesting travel authorization for Joe First and Dale Bozarth to attend the CEATI Hydropower Conference, March 18-22, 2019 in Tucson, AZ PO BOX 330, CHEHALIS, WA T (360) U

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29 Business Agenda a) Resolution No. 2826, ES 2019 Budget b) Resolution No. 2827, Rates (1 st Reading) c) Resolution No. 2828, Treasurer d) Cowlitz Falls Project Budget e) Risk Management Policy f) Election of Officers

30 RESOLUTION NO A RESOLUTION ADOPTING FINAL BUDGET FOR PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY FOR THE YEAR 2019 WHEREAS, in conformity with Revised Code of Washington, Section , the Commission prepared a proposed budget of the contemplated financial transactions of the District for the ensuing year 2019, and filed the same in the records of the Commission on October 16, 2018; and WHEREAS, on September 9, 2013 the Commissioners of Public Utility District No. 1 of Lewis County (District) adopted procedures and a timeline for preparing and submitting the District s proposed budget for the ensuing year; and WHEREAS, proof was made that notice of hearing on said proposed budget was given by publication in THE CHRONICLE and the EAST COUNTY JOURNAL once a week for two consecutive weeks and a copy of the affidavit of publication is attached hereto and made a part of this Resolution; and WHEREAS, the Commission in conformity with the publication held a public hearing during the regularly scheduled Board of Commissioners meeting on November 20, 2018, November 27, 2018 and on December 4, 2018, when the 2019 Proposed Budget was presented for public comment; and WHEREAS, on October 16, 2018 and on November 20, 2018 the District presented budgets to the Commissioners; and WHEREAS, the Commission has reviewed the budget and considered public comment and now directs adoption of the budget for the year 2019 as finally determined and set out below.

31 NOW, THEREFORE, BE IT RESOLVED that the Commissioners of Public Utility District No. 1 of Lewis County do hereby adopt the 2019 budget as finally determined, and the final amount of expenditures for the ensuing year in words and figures as set forth in the copy of said budget attached to this resolution, and by this reference made a part of this resolution as fully as though set out in length herein. APPROVED AND ADOPTED by the Commissioners of Public Utility District No. 1 of Lewis County this 11 th day of December, ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary

32 2019 Budget Final Passed by Resolution No December 11, 2018

33 Blank Page Inserted Intentionally

34 Public Utility District #1 of Lewis County Electric System 2019 Budget Final Budget Overview Electric System Budget Overview Reporting: The District s Annual Budget is prepared under the Modified Accrual Basis. Enhancements continue to the construct of the budget and for this reason the comparison of various accounts to previous years may not be as comparable. The accounts now reflect cost centers (departments) to better track and control costs that are reported in the monthly Status of the Budget. The Budget for 2019 forecasts total revenues of $79.4m compared to $73.8m in 2018 for the Electric System, a net increase of 7.5%. The retail sales are forecasted to increase 6.0% compared to 2018 resulting from an anticipated 5% increase in rates beginning January 1, The District s loads are forecasted to remain approximately the same for Estimated expenditures excluding debt service and capital improvements for 2019 are estimated at $69.9m compared to budgeted expenditures for 2018 of $65.6m, a 6.5% increase. Total expenditures including debt service, capital improves and Rate Stabilization are estimated at $79.6m. The general rate increase mentioned above combined with the use of operating cash reserves of $209k is estimated to result in $0 net margins for Budget Summary (in thousands) Revised Change % Revenues $ 79,361 $ 73,837 $ 5, % Expenditures 69,896 65,659 4, % Debt Service 2, , % Capital Additions 1 7,208 5,570 1, % Total Expenses 79,570 73,800 5, % Net Margins $ (209) $ 37 $ (246) % Cash Reserve $ 209 $ - Rate Stabilization $ - $1,600 Net Margins Adusted $ - $ 37 1 Capital Additions is netted with the Equipment Depreciation Adjustment

35 Public Utility District #1 of Lewis County Electric System 2019 Budget Final Budget Overview Wholesale Revenues The District signed a Bonneville Power Administration (BPA) Slice - Block Power Sales contract in November of 2008, which took effect in October of This product requires the District to make assumptions as to climate conditions (water year) to forecast its share of the electricity generated by BPA. Excess generation beyond the District s load equates to Wholesale Sales to the market. The market prices have not been as favorable resulting in less revenues. The District conservatively forecasts the water year at a 75% (P25) probability of obtaining its estimated share of BPA s generation. An El Nino ocean climate is predicted that may change the winter and spring conditions affecting the resulting operations. Total Revenues (in thousands) 2019 Budget 2018 Revised Change % Operating Sales of Electricity $ 69,162 $ 65,257 $ 3, % Sales - Wholesale 4,697 4, % Other Revenues 2,296 2, % Total Operating $ 76,155 $ 71,579 $ 4, % Other Revenue Fiber Revenue $ 416 $ 395 $ % Interest Income % Contributed Capital 1,600 1, % Grant Revenue 1, % Total Other Revenue $ 3,206 $ 2,258 $ % Total Revenues $ 79,361 $ 73,837 $ 5, % Expenditures Purchased Power: Purchased power is a dominant portion of the expenditures for 2019 and as mentioned previously, includes purchased power from BPA. The purchased power is net of a Residential Exchange Credit and a Low Density Discount. It is estimated at $35.6m, a 3.34% increase compared to Transmission of the purchased power is provided by BPA and estimated at $5m. Additional power costs include The Energy Authority (TEA) scheduling costs of $1.1m and unspecified market purchases of $147k. Regional purchases are from the Packwood Hydro Project, Burton Creek Hydro Inc. and Nine Canyon Wind for a total delivered cost of purchased power of $46m. To fulfill the requirements of the Washington State Initiative 937, the District purchased 10% of the White Creek Wind Project s generation and purchase Renewable Energy Credits (RECs). Including White Creek Wind, total purchased power and related expenses is estimated at $46.4m, a 3.28% increase which is approximately 58% of the budget. 2

36 Public Utility District #1 of Lewis County Electric System 2019 Budget Final Budget Overview Hedging Activity: The District s risk management strategy uses hedging (options) in limiting or offsetting probability of loss from fluctuations in the prices of purchasing power or selling excess power on the open market. In effect, hedging is a transfer of risk without buying insurance policies. Option premiums are estimated at $250k for Purchased Power (in thousands) Change % Power - BPA $ 35,649 $ 34,498 $ 1, % Transmission 5,025 4, % Market Purchases (41) % White Creek Wind 2,224 1, % Other Power Costs 3,082 3, % Intertie % Hedging Activity % Total Power Costs $ 46,448 $ 44,972 $ 1, % Purchased Power Portfolio Hedging Acti vity 0.5% Intertie 0.2% Other Power Cos ts 6.6% Power - BPA 76.8% White Creek Wind 4.8% Ma rket Purchases 0.3% Transmission 10.8% 3

37 Public Utility District #1 of Lewis County Electric System 2019 Budget Final Budget Overview Operations: The category of operations does not include labor which is budgeted separately. These amounts are for the general maintenance of plant and other expenditures related to the delivery, billing and conservation of electricity used by the District s customers. These expenditures are reported as non-capital items and expensed when incurred. The estimated budget for operations is $4.7m for 2019 compared to $3.3m for 2018, a 46.0% increase. The increase is part due to aggressive maintenance on the distribution system to include contract tree trimming, pole testing, enhanced safety program and conservation measures funded by BPA and a separate grant from Transalta. Labor: Total labor excluding benefits and related costs associated with the Electric System in 2019 is estimated at $10.7m compared to $10.3m for 2018, an increase of 5.4%. Over the past few years the District has restructured its operations to include the addition of various positions due to customer growth and retirements. The Collective Bargaining Agreement was negotiated in A General Wage Increase (GWI) of 3% is included in this budget for employees covered under the agreement, effective April 1, A GWI of 3% is included for the Staff effective June 1, Labor without benefits is presented in the table below for the years Budget Labor History (excludes benefits and taxes) (thousands) Reg 7,496 7,613 8,485 8,749 9,262 9,564 10,078 OT Total 7,847 8,197 9,100 9,400 9,884 10,330 10,738 Increase 13.1% 1.6% 11.5% 3.1% 5.9% 3.3% 5.4% Budgets Budget 2013 Budget 2014 Budget Budget Budget R OT 2017 At l Budget 2018 Budget

38 Public Utility District #1 of Lewis County Electric System 2019 Budget Final Budget Overview Taxes: Excise taxes are imposed upon the District by state law. The tax is % on current year sales of electricity. In 2019, the excise taxes will amount to approximately $2.7m. Privilege Taxes are state imposed taxes in lieu of property taxes and are based on the prior year s sales of electricity. The majority of these taxes are passed back to the county through the state. The tax rate is 2.14% and will be approximately $1.5m in Operating Taxes On Sales (in thousands) Change % Utility $ 2,747 $ 2,473 $ % Leasehold % Privilege 1,494 1, % Business & Sales % Total Taxes $ 4,287 $ 3,885 $ % General and Administrative: G&A captures the financial/business expenditures of the District that are not directly related to general maintenance of plant and other expenditures related to the delivery, billing and conservation of electricity used by the District s customers. These expenditures include Association Dues, Professional Services from external sources as well as non-capitalized office items in performing all other business aspects of the District. The estimated budget for 2019 is $1.51m compared to $ 1.46m for 2018, a 3.4% increase. This increase is mainly due to liability claims incurred and higher retentions of the insurance pool the District belongs to along with a projected network security audit and software maintenance. Fiber Expenditures: The District does not light fiber for anyone other than their own use. Dark fiber (excess fiber not used by the District) is leased to outside vendors who pay for the use of those fibers. The maintenance is born by the District and is estimated at $16k for Debt Service: The District s debt was incurred as the result of efforts to conform to the citizens of Washington State passed Initiative-937. Bonds were issued and a portion was used to purchase a 10% share of the output of the 205 megawatt White Creek Wind Project. The rest of the bond proceeds replaced cash paid out of bank for the remainder of the purchase price of $36.8m. The entire issue is paid back as debt service over 20 years. The Bond Series 2008B Taxable matured on December 1, A private bond issue was implemented at the end of 2016 to advance refund the Bond Series 2008A Tax Exempt resulting in a savings of $2.9m over 11 years. The debt service for 2019 is approximately $2.5m. 5

39 Public Utility District #1 of Lewis County Electric System 2019 Budget Final Budget Overview Capital Additions: Capital expenditures (includes capitalized labor) consists of the categories of Transmission, Distribution, General and Allocated. Transmission and Distribution make up the system for the delivery of electricity to the District s customers. General consists of all assets not a part of the system to deliver electricity (i.e. buildings, vehicles, office furniture and equipment). Allocated are the overhead costs that are either expended or capitalized according to their related activity. Labor & Benefits Capitalized: Capitalized Labor is included in the Capital Additions graph below. The total labor budget may be reviewed in the Supplemental Information at the end of this Budget. Capital Additions Labor, 2,753,960 Allocated, 47,047 Transmission, 248,510 General, 1,357,200 Distribution, 2,800,866 Transmission Distribution General Allocated Labor 6

40 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final 5% Revised 4% Increase/ % Budget Budget (Decrease) Change Operating Revenues Sales of Electricity 69,162,409 65,256,696 3,905, % Sales - Wholesale 4,696,511 4,047, , % Other Revenues 2,295,510 2,275,110 20, % Total Operating Revenues 76,154,430 71,578,856 4,575, % Other Income Total Fiber Revenue 416, ,120 21, % Total Interest Income 110,500 20,500 90, % Total Contributed Capital 1,600,000 1,000, , % Total Grant Revenue 1,080, , , % Total Other Income 3,206,642 2,257, , % Expenses Purchased Power 46,448,193 44,971,764 1,476, % Operations Expenses 4,771,354 3,268,832 1,502, % Total Operating Labor & Benefits 12,445,591 11,630, , % Total Payroll Related Expenses 155, ,700 (23,400) -13.1% Total Taxes 4,287,060 3,885, , % Total Travel and Training 226, ,888 20, % Total General and Administrative 1,509,740 1,460,109 49, % Total Misc. Expenses 36,700 36, % Total Fiber Expenses 16,050 21,200 (5,150) -24.3% Total Operating Expenses 69,895,998 65,658,799 4,237, % Net Margin Before Debt Service 9,465,074 8,177,926 1,287, % Debt Service 2,466, ,750 1,495, % Debt Service Ratio (4.59) Margin Available for Capital Additions 6,998,751 7,207,176 (208,425) -2.9% Capital Additions Transmission 248, , , % Distribution 2,800,866 1,536,419 1,264, % General 1,357, , , % Allocated 47,047 66,200 (19,153) -28.9% Labor 2,753,960 3,179,100 (425,140) -13.4% Total Capital Additions 7,207,583 5,570,979 1,636, % Net Margins Before Cash Transfers (208,832) 1,636,197 (1,845,029) % Cash Reserves 208,832 (36,197) Transfer From (To) Rate Stabilization - (1,600,000) Net Margins $ - $ - 7

41 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County Increase/ % Revenues Budget Budget (Decrease) Change Sales - Retail RESIDENTIAL SALES 38,420,523 36,597,028 1,823, % IRRIGATION SALES 69,637 66,100 3, % COMMERCIAL SALES 10,882,276 10,314, , % INDUSTRIAL SALES 11,940,787 11,059, , % TRANSALTA CENTRALIA GENERATION 3,265,333 2,891, , % PUBLIC STREET AND HIGHWAY LIGHTING 132, ,939 (4,418) -3.3% OTHER SALES TO PUBLIC AUTHORITIES 4,201,010 3,954, , % EXEMPT SALES TO PUBLIC AUTHORITIES 60,000 60, % GREEN POWER 6,000 3,000 3, % SECURITY LIGHTING 184, ,749 10, % Total Sales - Retail 69,162,409 65,256,696 3,905, % Sales - Wholesale RESALE 3,211,860 3,049, , % WHITE CREEK WIND I - WHOLESALE 1,208, , , % OTHER ELECTRIC REVENUES - GREEN TAGS 276, ,128 (20,961) -7.6% Total Sales - Wholesale 4,696,511 4,047, , % Other Revenues REVENUES FROM MERCHANDISING, ETC. 120, , % MISC - REVENUES SUBJECT TO P.U. TAX 40,000 40, % MISC - REVENUES SUBJECT TO B&O TAX 200 1,000 (800) % REVENUES FROM MERCHANDISING-POLE SALES 16,000 16, % CONSERVATION LOAN ORIGINATION FEE 5,000 1,000 4, % MISC SERVICE REVENUES 140, , % LATE PAYMENT CHARGES 225, , % RENEWABLES NET-METERING 3,000 3, % POLE CONTACT REVENUE 310, ,000 10, % RENT FROM ELECTRIC PROPERTY 48,000 46,800 1, % RENT FROM ELECTRIC PROPERTY (NON-TAX) 6,000 6, % WHEELING REVENUES 1,326,310 1,326, % OTHER ELECTRIC REVENUES - POLE ATTACHMENTS 16,000 10,000 6, % ENGINEERING APPLICATION FEE 40,000 40, % Total Other - Revenues 2,295,510 2,275,110 20, % Revenues before Rate Stabilization Transfers 76,154,430 71,578,856 4,575, % Transfer From (To) Rate Stabilization - (1,600,000) 1,600,000 - Total Operating Revenues 76,154,430 69,978,856 6,175, % Final $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Retail Sales - Detail 2018 Budget $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 Wholesale - Resale /WC 2018 Budget 2019 Budget $500,000 $- Resale White Creek RECs 8

42 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Purchased Power Budget Budget (Decrease) Change Power PURCHASED POWER - BPA 36,652,931 35,838, , % BPA REC - LOOKBACK CREDIT (1,003,775) (1,339,990) 336, % Transmission BPA TRANSMISSION 5,024,753 4,962,226 62, % Total - BPA Power and Transmission 40,673,909 39,460,479 1,213, % Intertie Activity 70,825 70, % Market Purchases Total - Market Purchases 147, ,981 (40,882) -21.7% Option Premiums 250, , % White Creek Wind OPERATING & MAINTENANCE - WHITE CREEK WIND I 1,835,419 1,795,442 39, % REC PURCHASES 225, , % KLICKITAT TRANSMISSION - WHITE CREEK WIND I 164, , % Total - White Creek Wind 2,224,519 1,959, , % Other Power Expenses OPERATION, SUPERVSN, ENGINEERING-HYDR NON LABOR % HYDRAULIC EXPENSES NON LABOR 10,000 3,500 6, % MAINT OF RESERVOIRS, DAMS, WATERWAYS NON LABOR % MAINT OF ELECTRIC PLANT - HYDR. NON LABOR 1,000 1, % MAINT OF MISC HYDRAULIC PLANT NON LABOR 1,000 1, % ENERGY NORTHWEST PACKWOOD 382, ,306 (4,331) -1.1% PURCHASED POWER - BURTON CREEK HYDRO INC. 60,000 60, % NINE CANYON WIND PROJECT 1,426,206 1,426, % SCHEDULING THE ENERGY AUTHORITY 1,110,740 1,094,405 16, % NEXTEL COMMUNICATIONS SLICE METERING 8,000 8, % POW-PROFESSIONAL SERVICES 32,000-32, % POW-DUES/MEMBERSHIPS 45,000 60,000 (15,000) -25.0% POW-CELL PHONES 1,400-1, % POW-MISCELLANEOUS EXPENSES 2, , % Total Other Power Expenses 3,081,841 3,042,937 38, % Total Purchased Power/Transmission 46,448,193 44,971,764 1,476, % $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Purchased Power 2018 Budget 2019 Budget BPA Trans Market White Creek 9

43 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Operations Expenses Budget Budget (Decrease) Change OPERATION, SUPERVSN, ENGINEERING-TRANS. NON LABOR 4,000 3, % SUBSTATION EXPENSES - TRANS. NON LABOR - 3,080 (3,080) % OVERHEAD LINE EXPENSE - TRANS. - NON LABOR 250 1,600 (1,350) -84.4% TRANSMISSION OF ELECTRICITY - TCL 198, ,000 38, % MAINT SUPERVISION AND ENG. - TRANS. NON LABOR 12,000 1,600 10, % MAINT OF SUBSTATION EQUIPMENT - TRANS. NON LABOR - 1,000 (1,000) % MAINT OF OVERHEAD LINES - TRANS. NON LABOR 12,200 4,500 7, % OPERATION, SUPERVSN, ENGINEERING - DIST. NON LABOR 13,000 22,500 (9,500) -42.2% LOAD DISPATCHING - DIST. NON LABOR 9,000 8,000 1, % STATION EXPENSE - DIST. NON LABOR 3,500 3, % OVERHEAD LINE EXPENSE - DIST. NON LABOR 38,000 33,500 4, % UNDERGROUND LINE EXPENSE - DIST. NON LABOR (500) % METER EXPENSE - DIST. NON LABOR 55,000 65,000 (10,000) -15.4% CUSTOMER INSTALLATION EXPENSE NON LABOR 2,000 2, % MISC DISTRIBUTION EXPENSE NON LABOR 4,800 4, % POLE CONTACT APPLICATION REVIEW NON LABOR 1, % MAINT SUPERVSN AND ENGINEERING - DIST. NON LABOR 5,000 10,000 (5,000) -50.0% MAINT OF STATION EQUIPMENT - DIST. NON LABOR 2,500 2, % MAINT OF OVERHEAD LINES - DIST. NON LABOR 1,000, , , % MAINT OF UNDERGROUND LINES - DIST. NON LABOR 28,000 28, % MAINT OF LINE TRANSFORMERS - DIST. NON LABOR 3,500 3, % MAINT OF STREET LIGHTING - DIST. NON LABOR 10,000 10, % MAINT OF METERS - DIST. NON LABOR 2, , % MISC MAINTENANCE OF DIST. PLANT NON LABOR - 5,000 (5,000) % SUPERVISION OF CUSTOMER ACCOUNTING - NON LABOR 15,000 13,000 2, % METER READING EXPENSE - NON LABOR 64,000 63,000 1, % CUSTOMER RECORDS AND COLLECTION EXPENSE-NON LABO 7,200 3,800 3, % ECA/EEI EXPENSES NON LABOR 992, , % ECA/EEI REVENUES (1,103,265) (1,103,265) - 0.0% CONSERVATION INTEREST ACCOUNT (2,000) (2,000) - 0.0% REGULATORY COMMISSION EXPENSE ,000 (149,800) -99.9% I-937 EXPENSES AUDIT 23,000 23, % COMPLIANCE - WECC/NERC - NON LABOR 30,000 30, % CONS-SAFETY EQUIPMENT 1,000 1, % CONS-PROFESSIONAL SERVICES 6,400 2,500 3, % CONS-DUES/MEMBERSHIPS % CONS-ADVERTISING 20,000 20, % CONS-SMALL TOOLS & MATERIALS 5,000 5, % CONS-FURNITURE & EQUIPMENT % CONS-OFFICE SUPPLIES - 1,000 (1,000) % CONS-CELL PHONES 1,400 1, % CONS-MISCELLANEOUS EXPENSES 3,000 4,000 (1,000) -25.0% CONS-POTENTIAL ASSESSMENT 32,000-32, % MOR-FURNITURE & EQUIPMENT 10,000-10, % MOR-OFFICE SUPPLIES 1,200 1, % 10

44 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Operations Expenses Budget Budget (Decrease) Change MOR-MAINTENANCE - EQUIPMENT 1,300 1, % MOR-UTILITIES - 19,000 (19,000) % MOR-MISCELLANEOUS EXPENSES 3,500 3, % MOR-BUILDING MAINT/JANITORIAL - 12,500 (12,500) % CS-CREDIT CARD FEES 380, ,000 70, % CS-POSTAGE 100, ,000 (10,000) -9.1% CS-STATIONARY 25,000 30,000 (5,000) -16.7% CS-PROFESSIONAL SERVICES 15,000 8,000 7, % CS-FURNITURE & EQUIPMENT 10,000 10, % CS-OFFICE SUPPLIES - 20,000 (20,000) % CS-MAINTENANCE - SOFTWARE 21,800 10,000 11, % CS-MAINTENANCE - EQUIPMENT 30,000 25,000 5, % CS-UTILITIES - 10,000 (10,000) % CS-CELL PHONES % CS-MISCELLANEOUS EXPENSES 2,000 1, % CS-ADVERTISING - 1,000 (1,000) % MTR-R SAFETY EQUIPMENT % MTR-R SMALL TOOLS & MATERIALS % MTR-R OFFICE SUPPLIES (500) % MTR-R MAINTENANCE - SOFTWARE 1,000 1, % MTR-R MAINTENANCE - EQUIPMENT 12,500 10,100 2, % MTR-R CELL PHONES 3,600 3, % MTR-R MISCELLANEOUS EXPENSES % ENG-MAINT OF SUBSTN EQUIP-TRANS NON LABOR 10,000 5,000 5, % ENG-MAINT OF O/H LINES-TRANS NON LABOR 125,000 2, , % ENG-AUTOMATED MAPPING FACILITIES NON LABOR 7,100 4,000 3, % ENG-LOCATING SERVICES 65,000 60,000 5, % ENG-PROFESSIONAL SERVICES 30,000 30, % ENG-DUES/MEMBERSHIPS ,000 (9,500) -95.0% ENG-SMALL TOOLS & MATERIALS 5,000 5, % ENG-FURNITURE & EQUIPMENT 5,000 2,000 3, % ENG-OFFICE SUPPLIES (500) % ENG-MAINTENANCE - SOFTWARE 97,000 68,000 29, % ENG-MAINTENANCE - EQUIPMENT 2,000 2, % ENG-CELL PHONES 5,797 3,000 2, % ENG-MISCELLANEOUS EXPENSES 5,000 5, % ENG-MISC DISTRIBUTION EXPENSE NON LABOR 2,000-2, % ENG-MAINT OF STATION EQUIP-DIST-NON LABOR 135, ,500 22, % ENG-MAINT OF OVERHEAD LINES-DIST NON LABOR 305,000 5, , % ENG-MAINT OF U/G LINES-DIST- NON LABOR 10,000 5,000 5, % ENG-MAINT OF TRANSFORMERS -NON LABOR 1,000 1, % ENG-MAINT OF METERS - DIST- NON LABOR 1,000 1, % IS-ENGINEERING & OPERATIONS EXPENSES 2,500 11,072 (8,572) -77.4% IS-STATION EXPENSE-DIST - NON LABOR 10,000 30,000 (20,000) -66.7% IS-METER SHOP EXPENSES 3,500 1,000 2, % 11

45 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Operations Expenses Budget Budget (Decrease) Change IS-CUSTOMER SERVICE EXPENSES 10,000 10, % IS-CONSERVATION DEPT EXPENSES 1,100-1, % IS-UTILITIES - 10,000 (10,000) % IS-WECC/NERC NON LABOR 1,100 1, % OPS-MAINT OF O/H LINES-TRANS-NON LABOR 41,000 41, % OPS-PROFESSIONAL SERVICES 32,000-32, % OPS-FURNITURE & EQUIPMENT 2,000-2, % OPS-OFFICE SUPPLIES 7,000-7, % OPS-MAINTENANCE - SOFTWARE 16,100 16, % OPS-MAINTENANCE - EQUIPMENT 1,000 1, % OPS-CELL PHONES 3,000 3, % OPS-MISC EXPENSES 5,000 3,000 2, % OPS-FURNITURE & EQUIPMENT 2,000-2, % OPS-IT HARDWARE/SOFTWARE 1,500-1, % OPS-MAINTENANCE - SOFTWARE 2,540-2, % OPS-DISPATCH MAINTENANCE - EQUIPMENT % OPS-DISPATCH-UTILITIES - 5,050 (5,050) % OPS-DISPATCH - MISCELLANEOUS EXPENSES 10,800 13,700 (2,900) -21.2% OPS-STATION EXPENSE-DIST NON LABOR % OPS-O/H LINE EXPENSE - DIST. NON LABOR 4,000 4, % OPS-SMALL TOOLS & MATERIALS 30,000 30, % OPS-HOT TOOLS 5,000 5, % OPS-FURNITURE & EQUIPMENT 12,000 5,000 7, % OPS-MAINTENANCE - EQUIPMENT 7,000 5,000 2, % OPS-UTILITIES - 30,000 (30,000) % OPS-CELL PHONES 6,000 6, % OPS-MISCELLANEOUS EXPENSES 20,000 20, % OPS-U/G LINE EXPENSE-DIST NON LABOR 4,000 4, % OPS-MAINT OF STATION EQUIP-DIST-NON LABOR 15,000 12,000 3, % OPS-MAINT OF OVERHEAD LINES-DIST NON LABOR 5,000-5, % OPS-MAINT OF U/G LINES-DIST-NON LABOR 5,000-5, % OPS-MAINT OF TRANSFORMERS-DIST-NON LABOR 2,500-2, % OPS-MAINT OF STREET LIGHTING-DIST-NON LAB 2,500 2,600 (100) -3.8% OPS-MISC MAINT OF DIST PLANT - NON LABOR 2,500-2, % OPS-COAL CREEK - PCB CLEANUP - 2,000 (2,000) % OPS-BUILDING MAINTENANCE/JANITORIAL - 38,740 (38,740) % OPS-CELL PHONES - 1,000 (1,000) % SFTY-FR -ENGINEERS 4,000 4, % SFTY-OPERATIONS MAT'L 35,000 35, % SFTY-FR -OPERATIONS 30,000 30, % SFTY-PPE -OPERATIONS 35,000 35, % SFTY- FR -METER SHOP 2,700 2, % SFTY-PPE -METER SHOP 1,000 1, % SFTY-PPE -MAINT STATION 6,000 6, % SFTY-FR -TREE CREW 7,000 7, % 12

46 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Operations Expenses Budget Budget (Decrease) Change SFTY-PPE -TREE CREW 2,000 2, % SFTY-MAINT OF TOOLS 10,000 10, % SFTY-FR -METER READERS 4,000 4, % SFTY-FR -INFORMATION SYSTEMS 1,350 1, % SFTY-PROFESSIONAL SERVICES 25,100 25, % SFTY-TRAINING MAT'L & SUPPLIES 1,000 1, % SFTY-OFFICE FURNITURE % SFTY-OFFICE SUPPLIES % SFTY-CELL PHONES % SFTY-MISC. 2, , % SFTY-PPE % CHEHALIS OPS - UTILITIES 32,530-32, % MORTON-UTILITIES 28,840-28, % MAIN OFFICE - JANITORIAL 25,000-25, % COAL CREEK SITE 12,000-12, % MAIN OFFICE - BUILDING MAINTENANCE 12,000-12, % CHEHALIS OPS - BUILDING MAINTENANCE 12,000-12, % MORTON BUILDING MAINTENANCE 6,000-6, % MAIN OFFICE - JANITORIAL 38,000-38, % CHEHALIS OPS - JANITORIAL 13,000-13, % MORTON - JANITORIAL 15,000-15, % MAINTENANCE - TOOLS & MATERIALS 2,000-2, % MAINTENANCE - CELL PHONES 1,200-1, % TREE-SMALL TOOLS & MATERIALS 13,000 15,000 (2,000) -13.3% TREE-MAINTENANCE - EQUIPMENT 5,000 3,000 2, % TREE-MISCELLANEOUS EXPENSES 2,000 1,000 1, % MTR-S-SAFETY EQUIPMENT - 1,250 (1,250) % MTR-S-SMALL TOOLS & MATERIALS 10,000 10, % MTR-S-FURNITURE & EQUIPMENT 2,500 2, % MTR-S-OFFICE SUPPLIES % MTR-S-MAINTENANCE - SOFTWARE 5,000 1,400 3, % MTR-S-MAINTENANCE - EQUIPMENT 9,000 9, % MTR-S-CELL PHONES 2,500 2, % MTR-S-MISCELLANEOUS EXPENSES 5,500 10,800 (5,300) -49.1% MTR-S-MAINT OF RECLOSERS/REGULATORS 7,000 7, % MTR-S-MAINT OF METERS-DIST-NON LABOR 40,000 40,707 (707) -1.7% Operations Total 3,673,661 2,424,903 1,248, % Transalta Grant Revenue TRANSALTA GRANT ADMIN-LABOR 97,693 97, % TRANSALTA GRANT ADMIN-NON LABOR - 110,798 (110,798) % TRANSALTA GRANT REBATES 1,000, , , % Total Transalta Grant Expenditures 1,097, , , % Operations Expenses 4,771,354 3,268,833 1,502, % 13

47 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Operating Labor and Benefits Increase/ % Expenses Budget Budget (Decrease) Change MISC LIABILITY - EMPLOYEE 100, , % COST AND EXPENSE OF MERCHANDISING, ETC. LABOR 84, ,600 (138,960) -62.1% HYDRAULIC EXPENSES LABOR 20,000 20, % POWER MANANGEMENT LABOR 378, ,350 35, % OPERATION, SUPERVISION, ENGINEERING - TRANS. LABOR 196, ,700 68, % LOAD DISPATCHING - TRANS. LABOR - 3,600 (3,600) % SUBSTATION EXPENSES - TRANS. LABOR (300) % OVERHEAD LINE EXPENSE - TRANS. - LABOR 960 9,800 (8,840) -90.2% MAINT SUPERVISION AND ENG. - TRANS. LABOR 106,720 85,100 21, % MAINT OF SUBSTATION EQUIPMENT - TRANS. LABOR % MAINT OF OVERHEAD LINES - TRANS. LABOR 88,320 1,900 86, % OPERATION, SUPERVISION, ENGINEERING - DIST. LABOR 1,159, , , % AUTOMATED MAPPING FACILITIES MANAGEMENT LABOR 136, ,900 28, % LOAD DISPATCHING - DIST. LABOR 668, ,300 33, % STATION EXPENSE - DIST. LABOR 51,520 16,100 35, % OVERHEAD LINE EXPENSE - DIST. LABOR 370, ,200 58, % UNDERGROUND LINE EXPENSE - DIST. LABOR (900) % METER EXPENSE - DIST. LABOR 744, , , % CUSTOMER INSTALLATION EXPENSE LABOR 13,600 14,100 (500) -3.5% MISC DISTRIBUTION EXPENSE LABOR 64,480 52,500 11, % POLE CONTACT APPLICATION REVIEW LABOR 31,360 16,600 14, % MAINT SUPERVISION AND ENGINEERING - DIST. LABOR 71,840 24,700 47, % MAINT OF STATION EQUIPMENT - DIST. LABOR 57,120 54,000 3, % MAINT OF OVERHEAD LINES - DIST. LABOR 2,528,092 2,577,400 (49,308) -1.9% MAINT OF UNDERGROUND LINES - DIST. LABOR 119, ,500 (98,820) -45.2% MAINT OF LINE TRANSFORMERS - DIST. LABOR 55,200 46,800 8, % MAINT OF STREET LIGHTING - DIST. LABOR 71,840 44,900 26, % MAINT OF METERS - DIST. LABOR 106, , % MISC MAINTENANCE OF DIST. PLANT LABOR 960 1,300 (340) -26.2% SUPERVISION OF CUSTOMER ACCOUNTING - LABOR 157, , % METER READING EXPENSE - LABOR 490, ,900 20, % CUSTOMER RECORDS AND COLLECTION EXPENSE - LABOR 1,378,589 1,308,550 70, % SUPERVISION AND OPERATIONS-LABOR 105, ,930 (64,584) -38.0% ECA/EEI EXPENSES LABOR 114, ,580 (17,126) -13.0% ADMINISTRATION AND GENERAL SALARIES - LABOR 2,416,181 2,186, , % COMMISSIONER PAYROLL - 208,470 (208,470) % HEALTH, WELFARE, SAFETY, 1ST AID LABOR 51,520 32,200 19, % SAFETY COORDINATOR SALARY 143, ,350 (10,099) -6.6% EMPLOYEE PENSION AND BENEFITS 123,760 60,000 63, % VEBA CASHOUT 50,000 50, % SHORT TERM DISABILITY(EMPLOYER) 25,000 60,100 (35,100) -58.4% COMPLIANCE - WECC/NERC - LABOR 52,649 39,580 13, % MAINT OF GENERAL PLANT - LABOR 109, , % Total Operating Labor & Benefits 12,445,591 11,630, , % 14

48 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Expenses Budget Budget (Decrease) Change Payroll Related Expenses DEFERRED COMP - EMPLOYER 18,500-18, % PCORI FEES % FLU SHOT CLINICS 1,000 3,000 (2,000.00) -66.7% RETIREE/COBRA MED INS - PREMIUMS & CLAIMS 135, ,000 (40,000.00) -22.9% Total Payroll Related Expenses 155, ,700 (23,400) -13.1% Taxes TAXES - UTILITY 2,747,300 2,472, , % TAXES - LEASEHOLD 1,000 1, % TAXES - PRIVILEGE 1,493,760 1,366, , % TAXES - BUSINESS & SALES 45,000 45, % Total Taxes 4,287,060 3,885, , % Travel & Training COM-TRAVEL EXPENSES 20,000 18,772 1, % ADM-TRAVEL EXPENSES 11,000 12,000 (1,000) -8.3% HR-TRAVEL EXPENSES 3,000 3, % ACCT-TRAVEL EXPENSES 10,000 10, % CONS-TRAVEL EXPENSES 3,000 6,000 (3,000) -50.0% MOR-TRAVEL EXPENSES % CS-TRAVEL EXPENSES 7,000 7, % MTR-R TRAVEL EXPENSES % POW-TRAVEL EXPENSES 12,000 15,000 (3,000) -20.0% ENG-TRAVEL EXPENSES 10,386 8,306 2, % IS-TRAVEL EXPENSES 12,000 12, % OPS-TRAVEL EXPENSES 10,000 8,000 2, % OPS-DISPATCH TRAVEL 2, , % OPS-TRAVEL EXPENSES 8,000 6,000 2, % TREE-TRAVEL EXPENSES 2,000 1,000 1, % SFTY-TRAVEL 2,000 2, % MTR-S-TRAVEL EXPENSES 3,500 3, % COM-TRAINING EXPENSES 3,924 3, % ADM-TRAINING EXPENSES 5,500 7,000 (1,500) -21.4% HR-TRAINING EXPENSES 4,000 3,000 1, % ACCT-TRAINING EXPENSES 8,000 8, % CONS-TRAINING EXPENSES 2,500 4,000 (1,500) -37.5% CS-TRAINING EXPENSES 8,000 8, % MTR-R TRAINING EXPENSES % POW-TRAINING EXPENSES 3,000 2,000 1, % ENG-TRAINING EXPENSES 10,000 10,386 (386) -3.7% IS-TRAINING EXPENSES 25,000 30,000 (5,000) -16.7% OPS-TRAINING EXPENSES 10,000 3,500 6, % OPS-TRAINING EXPENSES 5,000 2,000 3, % OPS-TRAINING EXPENSES 12,000 3,500 8, % SFTY-TRAINING 2,000 2, % 15

49 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Expenses Budget Budget (Decrease) Change TREE-TRAINING EXPENSES 4,000 1,000 3, % MTR-S-TRAINING EXPENSES 5,000 3,462 1, % Total Travel and Training 226, ,888 20, % General and Administrative ADMINISTRATION AND GENERAL SALARIES - NON LABOR 2,500 2, % PROPERTY INSURANCE 290, ,000 15, % COAL CREEK EXPENSES - PCB CLEANUP 5,000 2,500 2, % HEALTH, WELFARE, SAFETY, 1ST AID - NON LABOR % SAFETY COORDINATOR NON LABOR % COM-OFFICE SUPPLIES (300) % COM-MISCELLANEOUS EXPENSES % COM-PROFESSIONAL SERVICES 2,500 2, % ADM-ADVERTISING-MISC % ADM-ADVERTISING-LEGAL 3,000 6,000 (3,000) -50.0% ADM-ADVERTISING-PROMO 7,000 7, % ADM-POSTAGE % ADM-FURNITURE & EQUIPMENT 2,000 3,000 (1,000) -33.3% ADM-OFFICE SUPPLIES 24,100 6,000 18, % ADM-UTILITIES (500) % ADM-CELL PHONES 1,800 2,500 (700) -28.0% ADM-MISCELLANEOUS EXPENSES 8,500 7,500 1, % ADM-MISCELLANEOUS EMPLOYEES 4,000 16,500 (12,500) -75.8% ADM-PROFESSIONAL SERVICES 216, ,000 7, % ADM-DUES/MEMBERSHIPS 218, ,650 9, % ADM-BUILDING MAINTENANCE/JANITORIAL - 45,000 (45,000) % ADM-MAINTENANCE - SOFTWARE 6,160-6, % HR-ADVERTISING 5,000 5, % HR-FURNITURE & EQUIPMENT % HR-OFFICE SUPPLIES (500) % HR-CELL PHONES (320) -40.0% HR-MISCELLANEOUS EXPENSES 3,000 3, % HR-PROFESSIONAL SERVICES 135, , % HR-DUES/MEMBERSHIPS 15,000 15, % HR-MAINTENANCE - SOFTWARE 1,500 2,500 (1,000) -40.0% ACCT-BANK FEES - LINE OF CREDIT 7,500 7, % ACCT-POSTAGE 22,500 19,800 2, % ACCT-FURNITURE & EQUIPMENT 4,000 4, % ACCT-OFFICE SUPPLIES 6,500 6, % ACCT-CELL PHONES (480) % ACCT-MISCELLANEOUS EXPENSES 72,500 50,000 22, % ACCT-PROFESSIONAL SERVICES 37,500 37, % ACCT-DUES/MEMBERSHIPS 1,800 1, % ACCT-MAINTENANCE - SOFTWARE 500 2,500 (2,000) -80.0% ACCT-MAINTENANCE - EQUIPMENT 2,750 2, % IS-PROFESSIONAL SERVICES 105,000 86,429 18, % 16

50 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Expenses Budget Budget (Decrease) Change IS-FURNITURE & EQUIPMENT 3,700 2,500 1, % IS-COMMISSION, ADMIN, ACCOUNTING AND HR EXPENSES 23,000 35,000 (12,000) -34.3% IS-OFFICE SUPPLIES 2,500 2, % IS-MAINTENANCE - SOFTWARE 174, ,700 18, % IS-MAINTENANCE - EQUIPMENT 83,500 81,500 2, % IS-MISCELLANEOUS EXPENSES 1,500 1, % IS-CELL PHONES 7,600 3,600 4, % Total General and Administrative 1,509,740 1,460,109 49, % Misc. Expenses COST AND EXPENSE OF MERCHANDISING, ETC. NON LABOR 11,700 11, % PROJECT SHARE - PUD 25,000 25, % Total Misc. Expenses 36,700 36, % Fiber Expenses MISC MAINTENANCE OF FIBER PLANT - LABOR 3,200 3,700 (500) -13.5% MISC MAINTENANCE OF FIBER PLANT - NON LABOR 350 2,500 (2,150) -86.0% ENG-MISC MAINT OF FIBER PLANT-NON LABOR 10,000 10, % OPS-MISC MAINT OF FIBER PLANT-NON LABOR 2,500 5,000 (2,500) -50.0% Total Fiber Expenses 16,050 21,200 (5,150) -24.3% Total Non Capital Expenses - (Purchased Power & Operations Excluded) $ 18,676,451 $ 17,418,204 $ 1,258, % 17

51 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Increase/ % Capitalized Costs - Summary Budget Budget (Decrease) Change Transmission Capital Total Substations 85,500 45,000 40, % Total Towers & Fixtures 70,000-70, % Total Poles & Fixtures 37,288 22,288 15, % Total Overhead Conductor & Devices 25,722 10,772 14, % Total Computer Hardware 30,000 30, % Total Transmission Capital 248, , , % Distribution Capital Total Land & Land Rights 3,000 3, % Total Station Equipment 144,000 40, , % Total Poles, Towers & Fixtures 300, ,980 41, % Total Overhead Conductor & Devices 174, ,415 16, % Total Conduit 737,300 83, , % Total Underground Conductor & Devices 574, , , % Total Line Transformers 150, ,500 (25,500) -14.5% Total Pad Mount Transformers 425, , , % Total Voltage Regulators 95,000 95, % Total Services 61,316 61, % Total Meters 135, ,908 (908) -0.7% Total Street Light & Sig. Systems 2,000 1,000 1, % Total Distribution Capital 2,800,866 1,536,419 1,264, % General Capital Total Office Furniture & Equipment 265, ,000 (150,000) -36.1% Total Transportation Equipment 1,009, , , % Total Tools, Shop & Garage Equipment 18,000-18, % Total Laboratory Equipment 10,000 21,000 (11,000) -52.4% Total Communication Equipment 15,200 15, % Total General Capital 1,357, , , % Allocated Costs Total Allocated Costs 47,047 66,200 (19,153) -28.9% Total Capitalized Labor 2,753,960 3,179,100 (425,140) -13.4% Total Capitalized Costs 7,207,583 5,570,979 1,636, % 18

52 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Transmission Capital Capitalized Costs - Detail Increase/ % Budget Budget (Decrease) Change SUBSTATION EQUIPMENT - TRANS, CWIP NONLABOR 85,500 45,000 40, % TOWERS & FIXTURES - TRANSMISSION, CWIP NON LABOR 70,000-70, % POLES & FIXTURES - TRANSMISSION, CWIP NON LABOR 37,288 22,288 15, % OVERHEAD CONDUCTOR & DEVICES-TRANS, CWIP NON LABOR 25,722 10,772 14, % COMPUTER HARDWARE-TRANS/MARKET OPER-CWIP NON LABOR 30,000 30, % Distribution Capital LAND & LAND RIGHTS - DISTRIBUTION, CWIP NON LABOR 3,000 3, % STATION EQUIPMENT - DISTRIBUTION, CWIP NON LABOR 144,000 40, , % Detail Surface and Grnd Improves 50,000 Fords Prarie Design 20,000 Napavine relay replacement 45,000 Other 29, POLES, TOWERS & FIXTURES - DIST, CWIP NON LABOR 300, ,980 41, % RECLOSERS, SECTIONALIZERS, & BREAKERS, CWIP 54,000 54, % OVERHEAD CONDUCTOR & DEVICES - DIST, CWIP NON LABOR 120, ,415 16, % CONDUIT - DISTRIBUTION, CWIP NON LABOR 737,300 83, , % Customer Based (Paid) 361,000 PUD Based 376,300 *7000' Uninjectable Cable 140, UNDERGROUND CONDUCTOR & DEVICES-DIST CWIP NON LABOR 574, , , % Customer Based (Paid) 282,000 PUD Based 292,250 *7000' Uninjectable Cable 40, PAD MOUNT TRANSFORMERS, CWIP 425, , , % CAPACITORS, CWIP 5,000 5, % REGULATORS, CWIP 90,000 90, % POLE MT TRANSFORMERS - DISTRIBUTION, CWIP NON LABOR 150, ,500 (25,500) -14.5% SERVICES - DISTRIBUTION, CWIP NON LABOR 61,316 61, % METERS - DISTRIBUTION, CWIP NON LABOR 125, ,000 20, % INSTALLS ON CUST. PREMISES - DIST. CWIP NON LABOR 10,000 30,908 (20,908) -67.6% STREET LIGHT & SIG. SYSTEMS - DIST, CWIP NON LABOR 2,000 1,000 1, % General Capital STRUCTURES & IMPROVEMENTS, CWIP - NON LABOR 40,000-40, % Detail Pacific Ave - Building/Parking OFFICE FURNITURE & EQUIPMENT - CWIP 265, ,000 (150,000) -36.1% Detail Storage Addition 100,000 Document Management 45,000 Rubrik #2 30,000 Computer Replacements 50,000 19

53 COMPARATIVE OPERATING BUDGET Public Utility District No.1 of Lewis County 2019 Final Capitalized Costs - Detail Phone upgrades 20,000 Other 20, Increase/ % Budget Budget (Decrease) Change TRANSPORTATION EQUIPMENT - CWIP 1,009, , , % Detail Digger/Derrick # ,000 Chipper # ,000 Meter Reader #180 30,000 Meter Reader #200 30,000 Dump Trailers (2) 22,000 Mower for Excavator 12,000 Skid Steers (2) 100,000 Squirt Booms (2) 270,000 Dump Truck 80, TOOLS, SHOP & GARAGE EQUIPMENT - CWIP 18,000-18, % LABORATORY EQUIPMENT - CWIP 10,000 21,000 (11,000) -52.4% COMMUNICATION EQUIP - FIBER OPTIC, CWIP NON LABOR 15,200 15, % Allocated Costs MATERIALS AND SUPPLIES - NONEXEMPT 235, , % MATERIALS AND SUPPLIES - EXEMPT 25,000 25, % FIBER MATERIALS & SUPPLIES - NONEXEMPT 10,000 10, % FIBER MATERIALS & SUPPLIES - EXEMPT % STORES EXPENSE - UNDISTRIBUTED- LABOR 120, ,000 (19,153) -13.7% STORES EXPENSE - UNDISTRIBUTED- NON LABOR 1,000 1, % FIBER STORES EXPENSE - UNDISTRIBUTED LABOR 5,000 5, % Less Equipment Depreciation (350,000) (350,000) - 0.0% Capitalized Labor Costs CONSTRUCTION WORK IN PROGRESS CLEARING-LABOR 1,840,320 2,147,800 (307,480) -14.3% CONSTRUCTION WORK IN PROGRESS CLEARING 204, , % ACCUMULATED PROVISION FOR TRANS - LABOR 303, ,600 (50,760) -14.3% ACCUMULATED PROVISION FOR DEPR TRANS - LABOR 33,120 38,700 (5,580) -14.4% POLE MT TRANSFORMERS - DISTRIBUTION, CWIP LABOR 261, ,000 (43,720) -14.3% METERS - DISTRIBUTION, CWIP LABOR 52,800 61,600 (8,800) -14.3% COMPUTER HARDWARE-TRANS./MARKET OPER-CWIP LABOR 52,800 61,600 (8,800) -14.3% COMMUNICATION EQUIPMENT - FIBER OPTIC, CWIP LABOR 5,300 5, % Total Capital 7,207,583 5,570,979 1,636, % 20

54

55

56 RESOLUTION NO A RESOLUTION REVISING AND RESTATING THE PRESENT RATE SCHEDULES OF THE DISTRICT AND RESCINDING RESOLUTION NO WHEREAS, the Bonneville Power Administration (BPA) will increase its wholesale power rates effective October 1, 2019; and WHEREAS, the voters of the State of Washington approved Initiative 937, November 2006 which requires that the District acquire all cost effective conservation and serve a portion of its energy needs with qualifying renewable resources; and WHEREAS, conservation requirements under Initiative 937 have resulted in lower than expected retail sales; and sales; and WHEREAS, lower wholesale power prices have reduced revenue from surplus power WHEREAS, operating costs have increased and the District needs to replace aging infrastructure and increase capital investments; and WHEREAS, cash reserves levels are less than policy limits; and WHEREAS, the 2019 Electric System Budget was adopted with a deficit balance; and WHEREAS, the Commissioners have determined that it is in the best interests of the District to increase Rate Schedules 5, 7, 10, 20, 20-A, 31, and 50 on January 1, 2019; and WHEREAS, the Commissioners have determined that Rate Schedules 4, 35F, 55F, 82, X- 1 and X-2 should not be changed at this time; and WHEREAS, adoption of utility rates is categorically exempt from environmental consideration under the State Environmental Policy Act (SEPA) Guidelines, WAC (15) (I).

57 NOW, THEREFORE, BE IT RESOLVED that the attached Rates Schedules 4, 5, 7, 10, 20, 20-A, 31, 35F, 50, 55F, 82, X-1 and X-2 effective January 1, 2019 be approved and adopted by the Commissioners of Public Utility District No. 1 of Lewis County and that consumption shall be prorated for billing purposes based on the number of days before January 1, 2019 and on and after January 1, 2019 and that these rates shall remain in effect until changed by the Commission. BE IT FURTHER RESOLVED that the District reserves the right to evaluate service feasibility to new or increased service based upon limitations in its Bonneville Power Administration and/or other contracts for purchased power and in the event alternate power is not reasonably available. BE IT FURTHER RESOLVED that this resolution supersedes and cancels all other resolutions of the District previously adopted and in conflict with this resolution, including but not limited to Resolution No BE IT FURTHER RESOLVED that if any provision of this resolution or its application to any person or circumstance is held invalid, the remainder of the resolution, or the application of the provisions to other persons or circumstances is not affected. APPROVED AND ADOPTED by the Commissioners of Public Utility District No. 1 of Lewis County this 18 th day of December ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary

58 SCHEDULE 4-GREEN POWER RATE Resolution No. 2353, Effective May 1, 2004 AVAILABILITY: This schedule is available in all territory served by the District to customers currently served under the District s Residence and Farm Service (Schedule 7) and/or Lighting and Power Service (Schedule 20) who agree to purchase a portion of their energy usage under this rider. This rider is not available to customers served under any other rate schedule(s). MONTHLY CHARGE: The applicable monthly charge and quantity of 100 kilowatt-hour blocks shall be based on the customer s rate schedule to which this schedule is a rider. The energy requirement of each block will be met with qualifying renewable resources. The customer shall designate the level of participation in accordance with the following option: For Schedules 7 and 20: $2.00 per Block Each block is equivalent to purchase of 100 kilowatt-hours. The monthly charge is in addition to all other charges contained in the rate schedule to which this rider is associated. This rider s monthly charge shall be applied to the customer s billing regardless of actual energy consumption. ENROLLMENT: The customer shall be required to complete the District s enrollment form to participate in this program. Initiation of service under this rider shall occur on the next regularly scheduled meterreading date following the acceptance of enrollment, but with not less than ten (10) working days before the next scheduled meter-reading date. The District will not accept enrollments for accounts that have a time-payment agreement in effect or have received one or more disconnect notices, or have been disconnected within the last 12 months. PROGRAM COMPONENTS: The District shall maintain a record of the monthly payments. The District shall attempt on an annual basis to generate, purchase or otherwise acquire sufficient energy from applicable resources to meet 100 percent of the expected block purchases by customers during the year. GENERAL PROVISIONS: 1. The District may limit customer participation in this rider to balance available renewable resource generation supply amounts acquired by the District with blocks purchased by customers under this rider. 2. The District shall forecast and plan energy purchases from wind and renewable resources to meet projected quantities of blocks purchased on an annual basis.

59 3. The District makes no guarantee of any kind that this program will result in the development of any amount of wind/renewable resources. 4. For the purpose of this tariff, renewable resources includes wind generation, solar, biomass, landfill gas, low impact hydro and geothermal energy sources used to produce electric power. 5. Service under this schedule is subject to applicable adjustments approved by the District for the schedule to which the schedule is a rider. Service is also subject to local jurisdictional taxes, franchise and/or privilege taxes. TERM OF AGREEMENT: Service may be terminated at the next regularly scheduled meter reading on thirty days notice by customer. TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt-hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

60 SCHEDULE 5-SECURITY LIGHTING SERVICE Resolution No. 2827, Effective January 1, 2019 AVAILABILITY: This schedule is available in all territory served by the District, upon receipt of an authorized application and contract for security lighting service where the District has, or is willing to establish, area lighting service. The District will provide security lighting service in outside public-accessible areas and/or private areas where lights can be installed on existing utility poles. Service under this schedule may be discontinued if poles being utilized for this service are removed due to an undergrounding program. Mercury vapor lighting is available only to present customers at their present locations and may be replaced with a sodium vapor lamp or removed at the District s discretion. APPLICABLE: To overhead security lighting from dusk to dawn in accordance with the District s specifications. MONTHLY RATE: 1. Security lighting service, District owned watt mercury vapor lamp $ KWH 400 watt mercury vapor lamp KWH 175 watt mercury vapor lamp KWH 400 watt sodium vapor lamp KWH 250 watt sodium vapor lamp KWH 200 watt sodium vapor lamp KWH 100 watt sodium vapor lamp KWH PROVISIONS: 1. General: a. All fixtures and reflectors shall be approved, supplied and owned by the District. b. The customer shall notify the District when the security light needs attention. Maintenance by the District shall be on regular service runs to the area. c. The customer shall be liable for all malicious damage to security lights contracted under this schedule. d. The District will not install ornamental lighting poles and fixtures under this schedule, only wood poles. 2. Overhead: a. The District can install a lighting fixture on any pole in its distribution system provided 120 volt service is available within 150 feet of said pole. Transformers will

61 not be installed to serve a lighting fixture. The customer will pay a $100 installation fee for each light. b. If a pole is required, existing District facilities will be extended up to 150 feet provided the pole can be located in an outside public accessible area. The cost for installation of the pole will be billed based on the engineers estimated time and materials cost consistent with the District s Line Extension Policy. 3. Underground: a. The customer shall furnish the ditching and conduit, not to exceed 150 feet in length. The customer will pay a $100 installation fee for each light. b. If a pole is required, existing District facilities will be extended up to 150 feet provided the pole can be located in an outside public accessible area. The cost for installation of the pole will be billed based on the engineers estimated time and materials cost consistent with the District s Line Extension Policy. c. The customer shall pay a customer service charge of $ per pole riser and $1.00 per foot, including riser length, for the underground service. TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

62 SCHEDULE 7-RESIDENCE AND FARM SERVICE (non-commercial) Resolution No. 2827, Effective January 1, 2019 AVAILABILITY: This schedule is available in all territory served by the District to customers in single family residences. The service is to be constructed according to the District s Line Extension Policy. Single phase motor installations of 7-1/2 H.P. or less may be connected and served by this schedule. Larger motors may be connected upon special permission of the District. CHARACTER OF SERVICE: Energy delivered under this schedule shall be single phase, 60 cycle, alternating current at nominal 120/240 volts. Three phase service is not available under this rate schedule except to present customers at present locations. RATE: $0.95 per day basic charge, plus $ per kilowatt hour TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

63 SCHEDULE 10-IRRIGATION SERVICE Resolution No. 2827, effective January 1, 2019 AVAILABILITY: Service is available for irrigation purposes only. The service is to be constructed according to the District s Line Extension Policy. CHARACTER OF SERVICE: Service to be furnished under this schedule shall be single or three phase, 60 cycle alternating current at nominal 240 volts, except motor loads 60 horsepower and greater and fixed pump installations may be served at 480 volts at the option of the District. Metering shall be at a point on the service which is convenient to the District. RATE: Energy Charge: Demand Charge: $ per kilowatt hour, plus $13.21 per connected horsepower per season MINIMUM CHARGE: Minimum charge shall not be less than the demand charge. TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

64 SCHEDULE 20-LIGHTING AND POWER SERVICE Resolution No effective January 1, 2019 AVAILABILITY: This schedule is available throughout the entire territory served by the District. The service is to be constructed according to the District s Line Extension Policy. This schedule applies to energy used for lighting and power purposes. CHARACTER OF SERVICE: Service to be furnished under this schedule shall be single phase or three phase, 60 cycle, alternating current at such voltages as the District has available. Single and three phase service may be combined through one meter. RATE: Basic Charge: $0.95 per day for single phase and $1.57 per day for three phase, plus Energy Charge: $ for the first 15,000 kilowatt hours per month, plus $ for all over 15,000 kilowatt hours per month, plus Demand Charge: First 50 kilowatts of measured demand - no demand charge Excess over 50 kilowatts at $5.81 per kilowatt per month of measured demand Power Factor Adjustment at $5.81 per adjusted billing demand kilowatt MINIMUM CHARGE: The minimum charge shall be the basic charge. DETERMINATION OF DEMAND: The demand shall be determined by the installation of a demand meter. The demand for the month shall be the average kilowatt delivery of the fifteen-minute interval in which the utilization of electrical energy is greater than in any other fifteen-minute interval in that month. Where the load is subject to excessive fluctuations, the demand measuring interval may be five minutes at the option of the District. The demand is to be expressed in kilowatts to the nearest kilowatt. POWER FACTOR: The District shall not be obligated under the terms of this schedule to deliver energy to the customer at any time the power factor of the customer s load is below 80% lagging. When the power factor of the customer s load shall fall below 95% lagging, as indicated by a test meter installed to measure power factor, the billing demand shall be determined by multiplying the measured demand by 95% and dividing this amount by the actual power factor, expressed in percent, as determined by test or measurement.

65 TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

66 SCHEDULE 20A-LIGHTING AND POWER SERVICE Resolution No effective January 1, 2019 AVAILABILITY: This schedule is available throughout the entire territory served by the District. This schedule applies to energy used for lighting and power purposes. This rate schedule applies where a single customer is served by dedicated District facilities for which the District provides only routine maintenance as reasonably determined by the District. The District assumes no responsibility for continued service to the customer in the event of the need for non-routine maintenance, additions, betterment or replacements of the facilities serving the customer. In the event of such need, the District shall be under no further obligation to provide service to the customer until the customer completes the needed non-routine maintenance, additions, betterments or replacement of District facilities at customer s sole expense. By accepting service under Schedule 20-A, the customer agrees to be served subject to these limitations. CHARACTER OF SERVICE: Service to be furnished under this schedule shall be single phase or three phase, 60 cycle, alternating current at such voltages as the District has available. Single and three phase service may be combined through one meter. RATE: Basic Charge: $0.95 per day for single phase and $1.57 per day for three phase, plus Energy Charge: $ for the first 15,000 kilowatt hours per month, plus $ for all over 15,000 kilowatt hours per month, plus Demand Charge: First 50 kilowatts of measured demand - no demand charge Excess over 50 kilowatts at $5.81 per kilowatt per month of measured demand Power Factor Adjustment at $5.81 per adjusted billing demand kilowatt MINIMUM CHARGE: The minimum charge shall be the basic charge. DETERMINATION OF DEMAND: The demand shall be determined by the installation of a demand meter. The demand for the month shall be the average kilowatt delivery of the fifteen-minute interval in which the utilization of electrical energy is greater than in any other fifteen-minute interval in that month.

67 Where the load is subject to excessive fluctuations, the demand measuring interval may be five minutes at the option of the District. The demand is to be expressed in kilowatts to the nearest kilowatt. POWER FACTOR: The District shall not be obligated under the terms of this schedule to deliver energy to the customer at any time the power factor of the customer s load is below 80% lagging. When the power factor of the customer s load shall fall below 95% lagging, as indicated by a test meter installed to measure power factor, the billing demand shall be determined by multiplying the measured demand by 95% and dividing this amount by the actual power factor, expressed in percent, as determined by test or measurement. TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

68 SCHEDULE 31-PRIMARY POWER SERVICE Resolution No effective January 1, 2019 AVAILABILITY: Service is available at unregulated primary voltages of 7.2 KV and above at one or more points of delivery for industrial and large commercial use where the connected load is in excess of 1,000 kilowatts, and the user owns, or has the use of, primary distribution or high voltage transmission facilities, including transformers, and assumes other responsibilities under Schedule 31 as referenced in Resolution No. 1366, and provided further that, in the judgment of the Manager, the District has adequate transmission, distribution and power supply resources to serve the proposed customer. This schedule is available only to customers that execute a power supply contract with the District for a period of not less than five years. Loads that are determined to be New Large Single Loads by the Bonneville Power Administration (BPA) are not eligible for service under this Schedule 31. CHARACTER OF SERVICE: Service delivered under this Schedule 31 shall be three phase, 60 cycle, alternating current at the primary voltage to be specified by the District. Energy and demand amounts (kilowatt-hours and kilowatts) will be measured by meters located at or near the point(s) of delivery. RATE: Energy Charge: $ per kilowatt hour, plus Demand Charge: $5.22 per kilowatt per month of heavy load hour (HLH) billing demand $3.07 per kilowatt per month for each kilowatt the light load hour (LLH) billing demand exceeds the HLH billing demand For service delivered under this Schedule 31 where the District does not own, operate, or maintain high voltage electric transmission and/or distribution facilities for delivery of the demand and energy, the following Demand Charge will apply: Demand Charge: $2.95 per kilowatt per month of heavy load hour (HLH) billing demand $0.99 per kilowatt per month for each kilowatt the light load hour (LLH) billing demand exceeds the HLH billing demand HLH and LLH shall have the meaning given such terms is the then applicable BPA General Rate Schedule Provisions. MINIMUM CHARGE: The minimum charge shall be $ per month.

69 DETERMINATION OF DEMAND: The HLH billing demand for the month shall be the average kilowatt delivery of the thirtyminute interval in which the utilization of electrical energy is greater than in any other thirtyminute interval in that month during the HLH period. The LLH billing demand for the month shall be the amount by which the average kilowatt delivery of the thirty-minute interval in which the utilization of electrical energy is greater than in any other thirty-minute interval in that month during the LLH period exceeds the HLH billing demand for such month. For customers with more than one metered points of delivery, the HLH and LLH billing demand for the month may, at the election of the district, be the sum of the demand amounts for all such meters measured coincidentally during the thirty minute interval when the monthly peak demand occurs on any one of the meters during the HLH and LLH periods respectively. Where the load is subject to excessive fluctuation, the demand measuring interval may be five minutes at the option of the District. The demand is to be expressed in kilowatts to the nearest kilowatt. The District s Manager may waive all or a portion of the purchaser s Demand Charge for a month if the purchaser s HLH billing demand was not coincident with the hour used by the BPA to calculate the District s demand charge for such month. The District may assess purchaser an additional Demand Charge using the BPA Demand Rate then in effect for any month that BPA charges the District its Demand Rate for exceeding it Contract Demand Quantity. Such additional Demand Charge will based on the purchaser s contribution to the District s system peak load in the hour used by BPA to calculate the charge to the District. Demand Rate and Contract Demand Quantity shall have the meaning given such terms is the then applicable BPA General Rate Schedule Provisions. POWER FACTOR: Purchaser s billing demand shall be subject adjustment pursuant to Schedule 82. TAX ADDITIONS: The above rate, including both the Energy Charge and the Demand Charge, is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax imposed by any municipal, state or federal taxing body after the date of adoption of Resolution No. 2481, in accordance with provisions of Schedule X-2. OTHER COST ADDITIONS: Purchaser shall be subject in each month to any costs, charges, penalties and surcharges imposed pursuant to the provision of the written power supply contract between Purchaser and the District.

70 SCHEDULE 35F-LOCAL AREA BROADBAND FIBER SERVICE Resolution No effective May 1, 2004 AVAILABILITY: This schedule is available in all territory served by the District s Fiber Optic System, upon receipt of an authorized application and contract for broadband service. This schedule is available only under the terms of a written contract for a period of not less than five years. The District will make the determination as to whether the Fiber Optic System is capable of or can be expanded to serve new customers or increased service. CHARACTER OF SERVICE: Service under this schedule shall be for lease of broadband service. RATE: $ per 100 megabit per second per month

71 SCHEDULE 50-STREET LIGHTING SERVICE Resolution No effective January 1, 2019 AVAILABILITY: This schedule is available in all territory served by the District, upon receipt of an authorized application and contract for total street lighting service to ten or more lights from the same account where service can be provided from the District s existing distribution system. APPLICABLE: To overhead lighting from dusk to dawn for public streets, alleys, thoroughfares and grounds, installed in accordance with the District s specifications, where District s facilities are already available, and where the District has, or is willing to establish, street lighting service. MONTHLY RATE: 1. Street lighting service, District owned facilities. 400 watt sodium vapor lamp $ KWH 250 watt sodium vapor lamp KWH 200 watt sodium vapor lamp KWH 100 watt sodium vapor lamp KWH 2. Street lighting service, energy only, customer owned facilities. 400 watt sodium vapor lamp $ watt sodium vapor lamp watt sodium vapor lamp watt sodium vapor lamp 3.85 PROVISIONS: 1. General: a. Fixtures and reflectors of all District owned street lighting shall be approved and supplied by the District. b. Maintenance by the District of District owned facilities shall be on regular service runs to the area. c. The rates as provided above for District owned facilities shall be applicable to all District owned street light fixtures, and the District shall commence billing at said rates at the regular billing date nearest the date of installation. d. The rates as provided above for customer owned facilities are applicable only to existing facilities at their present locations. All new facilities shall be metered and all existing facilities shall be converted to metered service at time of alteration and upgrade.

72 e. All customer owned lighting systems or fixtures shall be metered and have an electrical disconnect. These accounts will be billed under the District s Rate Schedule Overhead: a. No overhead services are permitted for ornamental standards. b. The District can install a lighting fixture on any pole in its distribution system provided 120 volt service is available within 150 feet of said pole. Transformers will not be installed to serve a lighting fixture. The customer will pay a $100 installation fee for each light. c. Where the District does not have overhead facilities, existing District-owned overhead service will be extended to customer furnished and maintained poles provided: 1) Such extensions do not exceed 150 feet per fixture served. 2) If a pole is required, existing District facilities will be extended up to 150 feet provided the pole can be located in an outside public accessible area. The cost for installation of the pole will be billed based on the engineers estimated time and materials cost consistent with the District s Line Extension Policy. 3) The District will then install its lighting fixture on said pole for the above provided rate. 3. Underground: a. Generally, all underground served lighting fixtures will be customer owned. b. For isolated single pole installations not feasible (in the opinion of the District) to connect to a lighting system, existing District owned underground service will be extended to an individual customer furnished and maintained pole provided: 1) Such extensions do not exceed 150 feet in length. 2) If a pole is required, existing District facilities will be extended up to 150 feet provided the pole can be located in an outside public accessible area. The cost for installation of the pole will be billed based on the engineers estimated time and materials cost consistent with the District s Line Extension Policy. 3) The District will not furnish unmetered service to ornamental metal standards, only wood poles. 4) The customer furnishes the ditch and conduit. 5) The customer pays a customer service charge of $ per pole riser and $1.00 per foot, including riser length, for the underground service. 6) The District will then install its lighting fixture on said pole for the above provided rate.

73 TAX ADDITIONS: The above rate is subject to proportional increases to compensate for any gross revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, state or federal taxing body, in accordance with provisions of Schedule X-2.

74 SCHEDULE 55F-LOCAL AREA FIBER OPTIC EXTENSION FEES Resolution No effective May 1, 2004 AVAILABILITY: This schedule is available in all territory served by the District s Fiber Optic System, upon receipt of an authorized application and contract for fiber service. This schedule is available only under the terms of a written contract. The District will make the determination as to whether the Fiber Optic System is capable of or can be expanded to serve new customers or increased service. CHARGES: The cost to provide fiber optic service shall be subject to engineering and economic feasibility as determined by the District, and charges to customers for fiber optic service may be based upon actual estimated cost at the District s option. The customer shall be responsible for the cost of the extension of fiber optic facilities to be used solely by that customer and for the cost of the extension to the customer s premises. The District will prepare a cost estimate for such extensions and the customer will make payment in advance for the extension. The District will own, operate and maintain the facilities located on public right-of-way, while the facilities located on private property shall be the responsibility of the customer.

75 SCHEDULE 82-POWER FACTOR PROVISING FOR POWER LOADS Resolution No effective January 1, 2010 APPLICABILITY: All loads equivalent to 100 horsepower and over shall be subject to these provisions. PROVISIONS: Power factor shall be calculated using values from meters measuring kilowatt-hours and kilovoltampere-hours located at or near the point(s) of delivery. If the average power factor of power delivered to the purchaser during the month is 0.95 or more, no adjustment will be made in the purchaser s billing demand. If such average power factor is less than 0.95, then the billing demand shall be adjusted by multiplying by 0.95 and dividing the result by the average power factor. The District s Manager is authorized in his sole discretion to waive, by power contract amendment or letter agreement, the foregoing billing demand adjustment for power factor in whole or in part in any month that the District is not assessed a power factor charge by the Bonneville Power Administration (BPA). If the BPA monthly power billings to the District include a charge calculated using a power factor ratchet, a proportionate share of this charge shall be passed on to the purchaser. Unless specifically otherwise agreed, the District shall not be obligated to deliver power to the purchaser at any time at a power factor below The formula for determining average power factor is as follows: Average Power Factor Equals: Kilowatt Hours [(Kilowatt Hours) 2 + (Reactive Kilovoltamperehours) 2 ] In applying the above formula, the meter for measurement of reactive kilovoltamperehours will be ratcheted to prevent reverse registration.

76 SCHEDULE X-1-SPECIAL CONTRACTS Resolution No effective May 1, 2004 RATE: The rate for any special contract covering any class and character of service under any availability, when specially set forth in a special contract recommended by the Manager and adopted by special resolution of the Commission, shall have such rate as may be set forth in such resolution and contract. TAX ADDITIONS: Any special contract entered into shall be subject to proportional increases to compensate for any gross revenue, kilowatt hour or other form of tax hereafter imposed by any municipal, federal or state taxing body, in accordance with provisions of Schedule X-2. SCHEDULE X-2-TAX ADDITIONS Resolution No effective May 1, 2004 The amount of the total of any or all revenue, kilowatt hour, or other form of tax hereafter imposed by any municipal, federal or state taxing body upon the District shall be apportioned by the Commission of the District according to the territory in which such tax or taxes may be effective and among the various different classes of service furnished therein and shall constitute an additional charge to any amounts which may be billed to any customer under any rate schedule or special contract covered by this resolution.

77 RESOLUTION NO A RESOLUTION APPOINTING WENDY A. WOODY AS TREASURER OF PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY AND RESCINDING RESOLUTION NOS AND 2633 WHEREAS, Richard L. Bauer is retiring from employment at Public Utility District No. 1 of Lewis County (District) as the Treasurer effective March 18, 2019 ; and WHEREAS, Wendy A. Woody was appointed as the Deputy Treasure by Resolution No on October 22, 2013 with the authority to act as the District s Treasurer in the absence of the Treasurer; and WHEREAS, Mr. Bauer will not be performing the duties as the Treasurer, effective December 14, NOW, THEREFORE, BE IT RESOLVED by the Commissioners of Public Utility District No. 1 of Lewis County appoints Wendy A. Woody as the Treasurer of Public Utility District No. 1 of Lewis County effective December 15, BE IT FURTHER RESOLVED that Resolutions Nos and 2633 be rescinded. APPROVED AND ADOPTED by the Commissioners of Public Utility District No. 1 of Lewis County this 11 h day of December 2018 ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary

78 Cowlitz Falls Hydroelectric Project FY 2019 Budget Information 1. Proposed Project Ranking and Prioritization Project Priority FY 2019 Budget Justification Risk of Non-Performance SCADA Replacement 1 $365,000 This is an ongoing, multi-year project with Systems Interface to replace our SCADA system. Existing SCADA system does not operate reliably. Vendor does not support hardware or software. Spare parts on hand are limited. Software programming is proprietary and unavailable. Delaying the project would place Cowlitz Falls at a risk to a SCADA failure that would result in staffing Cowlitz Falls 24 hours per day for about 18 months until a new system is installed (Approximately $150,000 in additional wages and overtime). Maintenance and repairs would need to be contracted out during this time (Approximately $350,000- $500,000). Spillway Gate Inspection 2 $95,000 FERC Order to complete in 2018 Issuance of FERC license noncompliance. Civil penalty. Spillway Gate Seismic Study 3 $25,000 FERC Order to complete in 2018 Issuance of FERC license noncompliance. Civil penalty. Pier 9 Concrete 4 $65,000 FERC Order to complete in 2019 Issuance of FERC license non- Repair Part 12 Consultant & ODSP Audit 2019 BiOp Studies Battery Capacity Testing compliance. Civil penalty. 5 $93,500 FERC Order to complete in 2019 Issuance of FERC license noncompliance. Civil penalty. 6 $100,000 FERC requirement (NOAA issued Biological Opinion) 7 $9,000 FERC and NERC/WECC requirement to complete in 2018 Issuance of FERC license noncompliance. Civil penalty. Issuance of FERC license noncompliance. Civil penalty. Finding of NERC/WECC non-compliance. Fines.

79 Cowlitz Falls Hydroelectric Project FY 2019 Budget Information Turbine Shaft Seal Filter Replacement Copper Canyon Creek Take-Out Site Parking Security Improvements Convert Drawings to AutoCAD 8 $20,000 This is an ongoing project. Piping and new flow sensors are being installed. The turbine shaft seals need a reliable source of supply water in order to run the units. The existing filters plug frequently and are expensive to replace. New filter will not get plugged up and will not need replacing. $50,000 FERC Order to develop parking. New FERC Order will likely be issued this fall. 9 $20,000 Physical security is a FERC and NERC/WECC requirement. Cowlitz Falls is implementing measures each year to meet longterm security goals. 10 $20,000 Original drawings were not asbuilted after construction. Original drawings have been found to inaccurate in some cases. Drawings are not in electronic format. Converting drawings into AutoCAD solves these problems. Equipment and system upgrades and replacements will require up-to-date drawings. General maintenance and troubleshooting will benefit from accurate, easy to read drawings. Additional costs of filters (Cost of $4,000 per year). Additional labor cost with overtime for call outs when filters plug and units shut down. Lost generation when filters plug. Issuance of FERC license noncompliance. Civil penalty. Harm relationship with the whitewater community and agencies involved with this site. FERC Order could be issued stating physical security is inadequate and timeline provided to complete work. Finding of NERC/WECC non-compliance with physical security. Fines. Actual breach of security at Cowlitz Falls. Delay in implementing equipment and system upgrades recommended by condition assessments and long-term plan until drawings are updated. 2

80 Cowlitz Falls Hydroelectric Project FY 2019 Budget Information 2. Proposed Safety Projects There are no proposed safety projects for FY These projects have been deferred to FY Review of FY 2019 Budget The FY 2019 budget was developed with the purpose of minimizing increases over the FY 2018 budget. Several actions were performed: a. The major projects were reduced in number and total budget. Major projects that could be reasonably deferred were deferred to FY 2020 or later. The major projects included in the FY 2019 budget were reduced to projects that were required or could not be reasonably deferred. b. Almost all non-major project items in the A/P portion of the budget were reduced or held at FY 2018 levels. Any nonproject item that was increased was a required compliance item. Further reductions will impair the ability of staff to maintain and operate the facility or reduce the ability to comply with state and Federal compliance requirements. c. In the labor portion of the budget, hiring dates for the two journeyman operators were delayed until April 1, 2019 to have no impact to the FY 2019 budget. The hiring date for the resource worker was delayed until March 1, The assistant superintendent will be implemented as soon as practicable. d. NERC/WECC required protective relay testing was deferred until FY Must be completed by December We will take all necessary steps to ensure that we are prepared to implement this in Q1 of the FY2020 budget year. 4. Drivers for the FY 2019 Increase over FY 2018 a. Wage increases and additional staffing. This is the primary source of additional costs. b. Meeting compliance requirements i. Addition of consulting services for recreation water and septic systems. This will meet Washington State requirements for certified manager and operator of our Class A water system. Cost is $30,000. ii. Purchase of records software. This will allow Cowlitz Falls to meet Washington State requirements to comply with records retention schedules and public records requests. Cost is $30,000. iii. Performing additional dam monument surveying. Increase from once each year, to twice each year to monitor potential dam movement. Potential FERC dam safety issue. Recommendation from Chief Dam Safety Engineer. Additional cost is $1,900. 3

81 Cowlitz Falls Hydroelectric Project FY 2019 Budget Information iv. Purchase of SharePoint software. This is necessary to manage NERC/WECC compliance. Also allows interface with the District s WECC compliance consultant. Cost is $12,000. v. Fertilizing meadows. FERC wildlife requirement (From 1986 Fish & Wildlife Agreement with WDFW). Additional cost is $2,500. vi. CEATI Dam Safety Interest Group membership. Interfacing with other utilities and access to CEATI dam safety guides and recommendations will help Cowlitz Falls to comply with FERC dam safety requirements. Cost is $15,000. c. Additional resources i. ½ Records Specialist. This will allow Cowlitz Falls to meet Washington State requirements to comply with records retention schedules and public records requests. Cost is approximately $55,000. ii. Resource Worker. This position is necessary in order for Cowlitz Falls to meet FERC license recreation, wildlife, and archeological compliance requirements. Cost is approximately $76,000. iii. Assistant Superintendent. This position is necessary to prepare for upcoming necessary capital projects beginning in FY 2020 validated by both the McMillan Jacobs and HDR condition assessments, and the long term plan to be developed by Lewis. Cost is approximately $180, 000. iv. Both condition assessments also support additional staffing beyond the positions listed above. The District is choosing to defer those additions into future budget years. v. 5. Increase over 2018 The 2019 budget reflects a $293,798 increase in BPA reimbursements over the 2018 budget. A final accounting is being performed, but it is estimated that there will be an approximate $196, 000 underrun in 2018 budgeted expenses. These under-expenditures are a direct result of the inability to perform all budgeted capital projects due to lack of staffing during the 2018 budget year. The District proposes that this underspending be applied to the 2019 budget to offset the increase. 4

82 Cowlitz Falls Hydroelectric Project FY 2019 Budget Information 5

83 FY 2019 Budget Cowlitz Falls Hydroelectric Project Budget for FY /1/2018 Final 1 Project Reimbursements FY 2019 Budget Project Reimbursements from BPA $ 4,742, Interest Income $ 3, Campground Revenue $ 5, Misc. Revenues $ 10, Tacoma Fish Program Reimbursement $ 10,000 Carry Over from Prior Budget Total Reimbursements $ 4,771,454 Account Description A/P Labor Total Privilege Taxes $ 65,000 $ - $ 65, Business and Sales $ 424 $ - $ Water/Use Taxes $ 1,000 $ - $ 1, Supervision & Enginering - Non Labor $ 18,800 $ - $ 18, CFP-Fish & Wildlife $ 67,400 $ - $ 67, Recreation $ 27,600 $ - $ 27, Endangered Species Act Requirements $ 105,000 $ - $ 105, Misc Expenses $ 105,500 $ - $ 105, Resv., Dams & Waterways $ 734,800 $ - $ 734, Electric Plant $ 44,800 $ - $ 44, Misc Hydraulic Plant $ 102,300 $ - $ 102, Recreation - Maintenance of Campground $ 107,700 $ - $ 107, Transmission Line $ 27,600 $ - $ 27, A&G $ 27,400 $ - $ 27, Office Supplies and Expenses $ 31,000 $ - $ 31, Outside Services $ 290,900 $ - $ 290, Insurance $ 310,300 $ - $ 310, License Compliance - Non Labor $ 268,800 $ - $ 268,800 Total O&M $ 2,336,324 $ - $ 2,336, Vacation & Holidays $ - $ 176,200 $ 176, FICA & Medicare Taxes (Employer Portion) $ 102,000 $ - $ 102, Cost and Expense of Merchandising $ - $ 3,600 $ 3, Health, Welfare. Safety - Labor $ - $ 12,300 $ 12, Health, Welfare. Safety - Non Labor $ 8,760 $ - $ 8, CF Safety Coordinator - Allocated $ - $ 38,400 $ 38, CF Safety Coordinator - Non Labor $ 2,000 $ - $ 2, Employee Pension and Benefits - SLB $ - $ 10,800 $ 10, Sick Leave,Pension, Health & Life Insurance,L&I $ 545,500 $ - $ 545, CF VEBA Cashout $ 3,000 $ 3, CF VEBA - Employer Contributions $ 12,800 $ - $ 12, SPCF - Enginering & Supervision $ - $ 161,900 $ 161, SPCF - Oper Sup, Eng-Hyd-Non Labor $ 5,400 $ - $ 5, SPCF - Hydraulic Expenses $ - $ 19,000 $ 19, SPCF - CFP Fish & Wildlife $ 3,000 $ 65,500 $ 68, SPCF - CFP Fish & Wildlife - Non Labor $ 4,500 $ - $ 4, SPCF - Tacoma Support Services - Supervisory Labor $ - $ 1,400 $ 1, SPCF - Tacoma Maintenance Support - Labor $ - $ 1,400 $ 1, SPFC - Tacoma Maintenance Support - Non Billable $ - $ 7,400 $ 7, SPFC - Endangered Species Act Requirements $ - $ 42,900 $ 42, SPCF - ESA Requirements - Non Labor $ 1,200 $ - $ 1, SPCF - Electric Expenses $ - $ 133,200 $ 133, SPCF - Remote Operations $ - $ 53,800 $ 53, SPCF - Misc - Labor $ - $ 61,600 $ 61, SPCF - Misc - Non Labor $ 18,700 $ - $ 18, SPCF - Eng. & Supervision $ - $ 161,900 $ 161, SPCF - Supervision & Eng - Non Labor $ 5,000 $ - $ 5, SPCF - Structures - Labor $ - $ 23,100 $ 23, SPCF - Structures - Non Labor $ 3,200 $ - $ 3, SPCF - Resv, Dams & Waterways - Labor $ - $ 50,000 $ 50, SPCF - Electric Plant - Labor $ 1,200 $ - $ 1, SPCF - Misc $ - $ 56,400 $ 56,400 Page 1

84 FY 2019 Budget Cowlitz Falls Hydroelectric Project Budget for FY /1/2018 Final 1 Account Description A/P Labor Total SPCF - Maint. of CFP Fish & Wildlife - Hyd - Non Labor $ - $ 135,400 $ 135, SPCF - Maint of Campground - Recreation $ 2,000 $ - $ 2, SPCF - Maint. Campgrounds - Hydraulic - Non Labor $ - $ 43,770 $ 43, SPCF - Engineering - Transmission $ 15,500 $ - $ 15, SPCF - Admin & Gen. - Labor $ - $ 37,600 $ 37, SPCF - A&G Training and Travel $ - $ 331,700 $ 331, WECC Compliance - Labor $ 25,000 $ 900 $ 25, Licennse Compliance $ - $ 41,200 $ 41,200 Total Special O&M $ 755,760 $ 1,674,370 $ 2,430,130 Total O&M and Special O&M $ 3,092,084 $ 1,674,370 $ 4,766,454 NET Working Capital $ 4,766,454 Less Reserve $ - Net Change in Working Capital $ 4,766,454 Supplemental Information 1 (Included in accounts above) Major Projects Description Budget Labor FY 2019 Budget Major Maintenance Projects CF Replacement of Project SCADA $ 365,000 $ - $ 365, CF Convert Engineering Drawings to AutoCAD Format $ 20,000 $ - $ 20, CF Biop Studies $ 100,000 $ - $ 100, CF19-XXX Copper Canyon Creek Take-Out Site Parking $ 50,000 $ - $ 50, CF19-XXX Pier 9 Concrete Repair $ 65,000 $ - $ 65, CF19-XXX Spillway Gate Inspection $ 95,000 $ - $ 95, CF19-XXX Spillway Gate Sesmic Study $ 25,000 $ - $ 25, CF19-XXX Security Improvements $ 20,000 $ - $ 20,000 Total Capital Projects $ 740,000 $ - $ 740,000 separate list of projects for analysis and tracking. Page 2

85 Accounts Payable Cowlitz Falls Hydroelectric Project FY /1/2018 Final 1 FY 2018 FY 2019 FY 2019 A/P Budget Account Description Detail Detail Total Retainages $ - $ - $ - Required Supervision & Enginering - Non Labor $ 18,800 FERC Dam Movement Survey $ 6,500 $ 8,400 x Sediment Survey $ 5,000 $ 5,200 Surveying $ - $ 5, CFP-Fish & Wildlife $ 67,400 Mitigation Trout Derby $ 40,500 $ 40,500 x Habitat Management; Fertilizer, Spraying, Plants $ 8,400 $ 6,400 Noxious Weed Control $ 5,400 $ 6,000 x Creel $ - $ - Fertilizing Meadows $ - $ 4,500 Fish & Wildlife Contract Services (RTL Consulting) $ - $ 10, Recreation $ 27,600 Electric Utilities $ 6,000 $ 6,000 x Operation Supplies $ 2,200 $ 2,300 Potable Water and Septic System Testing $ 2,000 $ 2,000 Repairs & Supplies $ 4,200 $ 4,200 Garbage $ 6,000 $ 6,000 Portable Restrooms $ 2,100 $ 2,100 Campground Reservation Software $ - $ 5, Tacoma Fish $ - Materials $ - $ - Third Party Services $ - $ Tacoma Fish Program Reimbursement $ - $ - $ Endangered Species Act Requirements $ 105,000 Habitat Enhancements & Fish Recovery Contract Services (WDFW) $ 5,000 $ 5, BiOp Studies (Majar Project CF 19-XXX) $ 185,000 $ 100, Misc Expenses $ 105,500 Communications (Phones, Radios, etc.) $ 5,900 $ 4,900 x Electric Utilities - Seconadary Power Feed $ 10,600 $ 10,900 x Garbage $ 2,200 $ 2,300 Server/Cameras/Office Machines/Computers $ 5,400 $ 4,600 Shelving & Furniture $ 2,000 $ 2,000 Subscriptions, Prints, Copies and Maps $ 2,200 $ 2,300 Security - Locks, Signs, etc. $ 3,000 $ 3,000 Ecology Water Tax $ 7,500 $ 7,500 Security Improvements (Major Project CF17-103) $ 15,000 $ - CEATI Membership $ 21,000 $ 36,000 Security Improvements (Major Project CF19-XXX) $ - $ 20,000 Share Point Software $ - $ 12, Resv., Dams & Waterways $ 734,800 Page 3

86 Accounts Payable Cowlitz Falls Hydroelectric Project FY /1/2018 Final 1 FY 2018 FY 2019 FY 2019 A/P Budget Account Description Detail Detail Total Contract Maintenance Elevator $ 14,800 $ 14,800 x Miscellaneous Metals $ 10,000 $ 6,000 Govenor - Compressor $ 1,000 $ 1,000 Welding/Machinery Services $ 5,400 $ 1,600 Debris Barrier $ 1,000 $ 1,000 Dam Instrumentation $ 2,200 $ 2,200 Mechanical & Piping $ 10,600 $ 10,900 Painting & Special Coatings $ 3,200 $ 3,300 Debris Removal $ 6,400 $ 4,600 Equipment Rental $ 10,600 $ 10,900 Spillway Gates $ 10,000 $ 8,000 Diesel Generator $ 10,000 $ 10,000 x Sluice Gate Evaluation (Major Project CF17-133) $ 75,000 $ - Sedimentation Study (Major Project CF-101) $ 130,000 $ - Plant Annunciator (Major Project CF17-105) $ 40,000 $ - Replacement of Project SCADA (Major Project CF ) $ 350,000 $ 365,000 Pier 9 Concrete Repair (Major Project CF19-XXX) $ - $ 65,000 Spillway Gate Inspection (Major Project CF19-XXX) $ - $ 95,000 Spillway Gate Sesmic Study (Major Project CF19-XXX) $ - $ 25,000 Part 12 Independent Consultant $ - $ 93,500 Diving Services $ 12,000 $ 12,000 Log Bronc Maintenance $ 5,000 $ 5, Electric Plant - Generation Only $ 44,800 Governor/Turbine/Generator Service $ 10,600 $ 10,600 Protective Relay Testing $ 20,000 $ - x Mechanical Contractors $ 60,000 $ - Electrical Parts $ 5,400 $ 5,400 Mechanical Parts $ 10,600 $ 8,000 Instrumentation Parts $ 5,400 $ 5,400 Transformer Oil Processing & Testing $ 1,000 $ 1,000 Maintenance Supplies for Electric Plant $ 5,400 $ 5,400 GSU Transformer Annunciator (Major Project CF17-106) $ 52,000 $ - Mobile Diesel Generator Connection $ 20,000 $ - Battery Capacity Testing $ - $ 9,000 Required Misc Hydraulic Plant $ 102,300 Contract Maint.Gantry Crane $ 10,600 $ 10,600 x Manuals, Major Tools, Safety Improvements $ 21,200 $ 14,000 Rentals $ 10,600 $ 10,600 Inspections $ 2,200 $ 2,200 Plant Water Wells & Testing, Gates, Road Fees $ 5,400 $ 4,400 Structure Maintenance; Concrete, Fencing $ 20,000 $ 10,000 Buffer Zone Management $ 3,200 $ 2,000 HVAC $ 3,200 $ 2,200 Plant Lighting $ 2,200 $ 1,300 Smoke Detectors & Fire Water Systems $ 2,600 $ 2,600 x Drainange System $ 5,400 $ 2,400 Turbine Shaft Seal Filter $ - $ 20,000 Convert Engineering Drawings to AutoCAD Format (Major Project CF16-098) $ 40,000 $ 20,000 Page 4

87 Accounts Payable Cowlitz Falls Hydroelectric Project FY /1/2018 Final 1 A/P FY 2018 FY 2019 FY 2019 Budget Account Description Detail Detail Total Day Use Park Riverbank Stabilization Study (Major Project CF17-102) $ 80,000 $ - Cowlitz Falls Condition Assessment (Major Project CF17-112) $ 20,000 $ - Milling Machine $ 19, Recreation (Campgrnd, Day Use, Packwood) $ 107,700 Ground Maintenance $ 3,200 $ 3,200 Sign Repair $ 2,200 $ 2,200 Park Equipment Repairs $ 3,200 $ 3,200 Building Maintenance $ 3,200 $ 3,200 Sewer &Water System Maintenance $ 6,400 $ 6,600 Contract Services (Backhoe, Gravel, Sweeping) $ 7,000 $ 7,000 Advertising $ 2,200 $ 2,300 Noxous Weed Control $ 5,000 $ 5,000 Contract Septic and Water Services $ - $ 25,000 Copper Canyon Creek Take-Out Site Parking (Major Project CF19-XXX) $ - $ 50, Transmission Line $ 27,600 Line Maintenance $ 2,200 $ 2,200 ROW Maintenance $ 5,400 $ 25, A&G $ 27,400 Bank Fees $ 1,000 $ 1,000 Misc Licenses & Permits $ 6,400 $ 6,400 County Taxes $ 1,000 $ 1,000 Office Supplies $ 7,400 $ 7,400 Misc. Expenses $ 5,400 $ 5,400 Communications Fiber - User Fee $ 6,200 $ 6, Office Supplies and Expenses $ 31,000 Equipment Logs $ 1,000 $ 1,000 Records Software $ - $ 30, Outside Services $ 290,900 Auditing $ 16,000 $ 16,500 x Legal Services (BiOp & FERC Issues) $ 21,200 $ 38,000 Computer Services Provided by E.S. $ 5,400 $ 5,600 Telephone Provided by E.S. $ 3,200 $ 3,300 Engineering Consultants $ 55,000 $ 30,000 Labor Consultant $ 8,000 $ 4,000 Fire Districts $ 12,800 $ 13,200 x WECC & NERC Consultants $ 72,100 $ 74,300 Dam Safety Consultant $ 65,000 $ 68,000 Records Management $ 28,000 $ 38, Insurance $ 310,300 Property $ 225,000 $ 270,000 x Auto $ 6,000 $ 400 x Liability $ 22,500 $ 25,000 x Excess Liability $ 13,000 $ 13,400 x Public Officials $ - $ 1, License Compliance $ 268,800 Required Page 5

88 Accounts Payable Cowlitz Falls Hydroelectric Project FY /1/2018 Final 1 A/P FY 2018 FY 2019 FY 2019 Budget Account Description Detail Detail Total USGS Gauging Station Fees $ 43,300 $ 44,600 x FERC Fixed Fees $ 123,600 $ 107,000 x WECC Fees $ 36,100 $ 37,200 x Cooper Compliance Audit $ 54,000 $ 50,000 Port Blakely Easement $ 96,000 $ 30,000 x Transportation (Vehicles & Equipment) $ - #185 - '08 Ford F250 / Gary $ 3,400 $ - New Vehicle / Laura $ - $ - #252 - '17 Ford Explorer / Joe $ 3,400 $ - #253 - '17 Ford Expedition / Project $ 3,400 $ - #225 - '15 Ford Explorer / Dale $ 3,400 $ - #244 - '16 Ford F250 / Project $ 3,400 $ - #155 - '06 Ford 11/2 ton Flatbed / Park $ 3,400 $ - #28 / #131 / #77 / Boats $ 2,200 $ - Trailers (6) - '95,'97,'98,'02,'07,'08 $ 1,000 $ - #154 Shuttle Lift Crane $ 2,000 $ ( Fixed Asset Clearing) $ - Vehicle Replacement $ 25,000 $ Privilege Taxes $ 57,000 $ 65,000 x $ 65, Business and Sales $ - $ 424 x $ Water/Use Taxes $ 6,500 $ 1,000 $ 1, Leasehold Tax $ 500 $ - $ FICA & Medicare Taxes (Employer Portion) $ 66,856 $ 102,000 x $ 102, Health, Welfare. Safety - Non Labor $ 8,760 Safety Training $ 5,400 $ 5,600 LTD $ 3, CF Safety Coordinator - Non Labor $ 2,000 $ 2,000 $ 2, Sick Leave,Pension, Health, Life Ins., L&I $ 545,500 Life Insurance $ 2,900 $ 1,400 x Medical Insurance $ 238,500 $ 357,100 x Pension $ 105,525 $ 162,500 x L&I Premium $ 17,800 $ 24,500 x CF VEBA - Employer Contributions $ 8,310 $ 12,800 $ 12, SPCF - Enginering & Supervision $ - $ - $ SPCF - Oper Sup, Eng-Hyd-Non Labor $ 5,400 Equipment Logs $ 5,400 $ 5, SPCF - Hydraulic Expenses $ - Required Page 6

89 Accounts Payable Cowlitz Falls Hydroelectric Project FY /1/2018 Final 1 A/P FY 2018 FY 2019 FY 2019 Budget Account Description Detail Detail Total SPCF - CFP Fish & Wildlife $ 3, SPCF - CFP Fish & Wildlife - Non Labor $ 1,700 $ 4,500 $ 4, SPCF - Recreation $ SPCF - Chargeable Fish Support $ SPCF - Northshore Collector Support (Staff Only) $ SPCF - Endangered Species Act Requirements $ - Habitat & Recovery Work $ - $ SPCF - ESA Requirements - Non Labor $ 1,200 $ 1,200 $ 1, SPCF - Electric Expenses $ - Consumables $ - $ SPCF - Electric Expenses $ - $ - $ SPCF - Supplies & Expenses - Non Labor $ 18,700 Small Tools $ 2,200 $ 2,300 Consumable Safety Supplies & PPE $ 5,400 $ 5,600 Consumable First Aid Supplies $ 3,200 $ 3,300 FR Clothing $ 5,400 $ 6,400 Equipment Logs $ 1,100 $ 1, SPCF - Supervision & Eng - Non Labor $ 5,000 $ 5,000 $ 5, SPCF - Structures - Non Labor $ 3,200 Consumable Janitorial Supplies $ 1,300 $ 1,600 General Cleaning Supplies $ 1,300 $ 1, SPCF - Resv, Dams & Waterways - Non Labor $ 1,200 $ 1,200 $ 1, SPCF - Maint. of CFP Fish & Wildlife - Hyd - Non Labor $ 800 $ 2,000 $ 2, SPCF - Maint. Campgrounds - Hydraulic - Non Labor $ 15,500 $ 15,500 $ 15, SPCF - A&G Supplies Non Labor $ 25,000 Training and Travel $ 25,000 $ 25,000 Required Total A/P Total A/P $ 3,092,084 Page 7

90 Labor Cowlitz Falls Hydroelectric System FY 2019 Position Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 CF Superintendent $ $ $ $ $ $ $ $ $ $ $ $ CF Asst. Superintendent $ - $ - $ - $ $ $ $ $ $ $ $ $ Project Engineer $ $ $ $ $ $ $ $ $ $ $ $ Project Biologist $ $ $ $ $ $ $ $ $ $ $ $ Admin. Assistant $ $ $ $ $ $ $ $ $ $ $ $ Records Mgt Coordinator $ - $ - $ - $ $ $ $ $ $ $ $ $ Senior Operator $ $ $ $ $ $ $ $ $ $ $ $ Journeyman Operator $ $ $ $ $ $ $ $ $ $ $ $ Journeyman Operator $ $ $ $ $ $ $ $ $ $ $ $ Journeyman Op - Vacant $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ Journeyman Op - Vacant $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ Lead Resource Worker $ $ $ $ $ $ $ $ $ $ $ $ Resource Worker - Vacant $ - $ - $ - $ - $ - $ $ $ $ $ $ $ Part-Time Summer $ $ $ $ $ $ $ $ $ $ $ $ Part-Time Summer $ $ $ $ $ $ $ $ $ $ $ $ Part-Time Summer $ $ $ $ $ $ $ $ $ $ $ $ Part-Time Summer $ $ $ $ $ $ $ $ $ $ $ $ Part-Time Summer $ $ $ $ $ $ $ $ $ $ $ $ Part-Time Summer $ $ $ $ $ $ $ $ $ $ $ $ Overtime Time Sr. Op. $ $ $ $ $ $ $ $ $ $ $ $ Overtime Time $ $ $ $ $ $ $ $ $ $ $ $ Standby (Daily) Sr. Op. $ $ $ $ $ $ $ $ $ $ $ $ Standby (Daily) $ $ $ $ $ $ $ $ $ $ $ $ Standby (Holiday) Sr. Op. $ $ $ $ $ $ $ $ $ $ $ $ Standby (Holiday) $ $ $ $ $ $ $ $ $ $ $ $ Holiday Worked $ $ Monthly Rate Position Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 CF Superintendent $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 11, $ 139, CF Asst. Superintendent $ - $ - $ - $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 10, $ 10, $ 10, $ 89, Project Engineer $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 8, $ 8, $ 8, $ 8, $ 95, Project Biologist $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 85, Admin. Assistant $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 5, $ 63, Records Mgt Coordinator $ - $ - $ - $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 18, Senior Operator $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 9, $ 110, Journeyman Operator $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 98, Journeyman Operator $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 98, Journeyman Op - Vacant $ - $ - $ - $ - $ - $ - $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 49, Journeyman Op - Vacant $ - $ - $ - $ - $ - $ - $ 8, $ 8, $ 8, $ 8, $ 8, $ 8, $ 49, Lead Resource Worker $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 7, $ 66, Resource Worker - Vacant $ - $ - $ - $ - $ - $ 6, $ 6, $ 6, $ 6, $ 6, $ 6, $ 6, $ 46, Part-Time Summer $ 1, $ 3, $ 3, $ 3, $ 11, Part-Time Summer $ 1, $ 3, $ 3, $ 3, $ 11, Part-Time Summer $ 1, $ 3, $ 3, $ 3, $ 11, Part-Time Summer $ 1, $ 3, $ 3, $ 3, $ 11, Part-Time Summer $ 1, $ 3, $ 3, $ 3, $ 11, Part-Time Summer $ 1, $ 3, $ 3, $ 3, $ 11, Overtime Time Sr. Op. $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 12, Overtime Time $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 34, Standby (Daily) Sr. Op. $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 1, $ 12, /1/2018 Final 1 Cowlitz Falls Project FY 2019 Budget Final 1Labor Page 6

91 Labor Cowlitz Falls Hydroelectric System FY 2019 Standby (Daily) $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 2, $ 33, Standby (Holiday) $ 7, $ 3, $ 11, Holiday Worked $ 5, $ 2, $ 7, $ 1,194, /1/2018 Final 1 Cowlitz Falls Project FY 2019 Budget Final 1Labor Page 7

92 Labor Cowlitz Falls Hydroelectric System FY /1/2018 Final 1 Position Annual $ 139, CF Superintendent $ 89, Project Engineer $ - $ 95, Project Biologist $ - $ 85, Admin. Assistant $ 63, Records Mgt Coordinator $ 18, Senior Operator $ 110, Journeyman Operator $ 98, Journeyman Operator $ 98, Journeyman Op - Vacant $ 49, Journeyman Op - Vacant $ 49, Lead Resource Worker $ 66, Resource Worker - Vacant $ 46, Part-Time Summer $ 11, Part-Time Summer $ 11, Part-Time Summer $ 11, Part-Time Summer $ 11, Part-Time Summer $ 11, Part-Time Summer $ 11, Overtime Time Sr. Op. $ 12, Overtime Time $ 34, Standby (Daily) Sr. Op. $ 12, Standby (Daily) $ 33, Standby (Holiday) Sr. Op. $ - Standby (Holiday) $ 11, Holiday Worked $ 7, Total Annual Labor ########### WOs $ - ########### $ 1,194, $ 900, O/H 1 $ 762, Account As of May 2018 Services to ES % of Total Budget $ - $ $ 66, % $ 176, $ 1, % $ 3, $ 5, % $ 12, $ % $ 38,400 Safety Coordinator $ 4, % $ 10,800 SLB Powel % $ 3, $ % $ 161,900 First & Bozarth $ 8, % $ 19, $ % $ 65,500 Bouchard & Wedem $ % $ $ % $ 1, $ % $ 1, $ 3, % $ 7, $ % $ 42,900 Bouchard $ 59, % $ 133,200 `` $ 24, % $ 53,800 Cowlitz Falls Project FY 2019 Budget Final 1Labor Page 8

93 Labor Cowlitz Falls Hydroelectric System FY $ 27, % $ 61, $ % $ 161,900 First & Bozarth $ 10, % $ 23, $ 22, % $ 50, $ 25, % $ 56, $ 60, % $ 135, $ 19, % $ 43,770 Wedam % $ % $ 37,600 Superintendents, etc $ % $ 331,700 Admin $ % $ % $ 41,200 Power Analyst $ 342,377 $ 1,674,400 $ 1,603, % $ 1,194,400 $ 563,106 $ 1,194,400 $ (220,729) $ 1,643,400 11/1/2018 Final Jeff Schuppe Tacoma Chargebles 0 Administration 207,000 WECC Labor 41,200 Misc Trans 37,600 Safety Coordinator 38,400 IT Support 124,700 W/O Labor 0 VEBA Cashouts 3,000 VAC Cashouts 28,000 $ 479,900 $ 1,674,300 Diff $ (30,900) $ 480, Adjusted 0 Cashouts (30,900) Cowlitz Falls Project FY 2019 Budget Final 1Labor Page 9

94 Payment Schedule Cowlitz Falls Project FY 2019 Budget 11/1/2018 Final 1 October 2018-September 2019 Due Date Amount 10/4/2018 $ 395,244 11/4/2018 $ 395,244 12/4/2018 $ 395,244 1/4/2019 $ 395,244 2/4/2019 $ 395,244 3/7/2019 $ 395,244 4/7/2019 $ 395,244 5/8/2019 $ 395,244 6/8/2019 $ 395,244 7/9/2019 $ 395,244 8/9/2019 $ 395,244 9/9/2019 $ 395,244 Total $ 4,742,924 Page 8

95 COMMISSIONER APPOINTMENTS FOR 2019 THROUGH 2019 (Proposed ) Lewis PUD Board President Vice President Secretary Washington PUD Association (WPUDA) Representative Alternate Appointment Dean L. Dahlin Ben M. Kostick Tim Cournyer Ben M. Kostick Dean L. Dahlin Public Utilities Risk Management System (PURMS) Representative Dean L. Dahlin Alternate Ben M. Kostick Second Alternate Tim Cournyer Employee Delegate Public Power Council (PPC) Representative Alternate Second Alternate Northwest Public Power Association (NWPPA) Voting Delegate Alternate Delegate American Public Power Association (APPA) Voting Delegate Alternate Delegate Dean L. Dahlin Ben M. Kostick Tim Cournyer Dean L. Dahlin Tim Cournyer Ben M. Kostick Tim Cournyer American Public Power Association (APPA) Legislative and Resolutions Committee Voting Delegate Ben M. Kostick Alternate Delegate Tim Cournyer Energy Northwest (ENW) Voting Delegate Alternate Delegate Dean L. Dahlin Ben M. Kostick

96 PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY'S 2019 WPUDA COMMITTEE REPRESENTATION Committee Criteria for Members Lewis PUD Designee 1 Board of Directors One Representative from each PUD 2 Executive Committee 3 Commissioner Education and Roundtable 4 Strategic Planning Com. Five Commissioners, President, Vice President, Secretary, Treasurer, Past President Three Managers, Vice Chair, Vice Chair Elect, Past Vice Chair Elect of Managers Committee Open to all Commissioners Executive Committee, and Chairs of Energy, Water, Telecom, Government Relations, Communications Delegate, Ben Kostick Alternate, Dean Dahlin Dean Dahlin Ben Kostick Dean Dahlin Ben Kostick Tim Cournyer Ben Kostick Dean Dahlin 5 Budget Committee Executive Committee, and Six Members appointed by President and Two Alternates appointed by President Ben Kostick Dean Dahlin 6 Managers Committee Manager from each PUD 7 Energy Committee One Representative from each Electric PUD Delegate, Chris Roden Alternate, Rich Bauer Delegate, Matt Samuelson Alternate, Dean Dahlin 8 Water Committee One Representative from each Water PUD Lewis is not in Water 9 Telecom Committee One Representative from each Telecom PUD 10 Government Relations One Representative from each PUD 11 Communications Com One Representative from each PUD Delegate, Dean Dahlin Alternate, Chris Roden Delegate, Dean Dahlin Alternate, Ben Kostick Delegate, Corenne Moses Alternate, Dean Dahlin 12 Nominating Committee Three Commissioners appointed by President None Currently 13 Finance and Audit Com Treasurer Two Commissioners appoint. By President Four Finance Officers appoint. in PUD alphabetical order (one new each yr.) Ben Kostick 14 Awards Committee Three Past Presidents appointed by President None Currently 15 Utility Staff Committees Utility Staff and contract employees of each PUD System Design / Evaluation Finance Officers Superintendents Attorneys Jeff Shupe Rich Bauer Bryan Watt Allen Unzelman Proposed Page 1

97 Other Business

98 Management Report a) Status of the Budget

99 October 2018 Budget - Financial Dashboard Highlights for the month of October: 1. Total retail revenue for October was up 9.06% from budget. 2. Purchased power costs were $3.8m netted with sales for resale of $185 thousand resulting in net power costs of $3.6m. 3. Remaining Operating Expenses of $1.7m before depreciation, amortization, debt and capital additions were 6% below budget. 4. Capitalized expenditures were approximately $294 thousand. October - Key Ratios YTD Plcy/Cvn't DCOH (see below) Debt Service Ratio /1.25 Gross Margin 40.0% 40% Net Margin 7.1% 14% 2018 Margins By Month Column1 January February March April May June July August September October November December Retail Revenue 6,560,292 6,513,710 6,456,337 6,519,408 5,890,173 5,185,260 5,050,160 5,075,768 5,015,963 5,052, Sales For Resale 653, , , , , , , , , , Other Revenues 753, , , , , , , , , , Power Supply 4,018,378 4,140,587 4,105,368 3,847,176 3,355,558 3,678,814 3,533,241 3,103,463 3,654,038 3,828, Other Expenses 2,171,204 1,803,468 1,808,585 1,609,617 1,832,083 1,971,448 1,606,869 1,605,982 1,043,767 1,600, Debt Service & Capital Adds 689, , , , , , , , , , Net Margins 1,088, , ,925 1,196,615 1,313,982 (304,391) 395, , ,806 (142,529) Rate Stabilization Transfer (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) Adjusted Net Margins 955, , ,592 1,063,282 1,180,650 (437,724) 262, , ,473 (275,862) 2018 YTD Net Margins 955,502 1,607,180 2,206,773 3,270,054 4,450,704 4,012,981 4,275,269 4,579,442 4,858,915 4,583, YTD Net Margins 777,158 2,390,376 3,165,954 3,866,023 5,339,555 5,145,753 5,482,554 5,181,430 4,632,924 4,374,441 Millions Op Labor 8,993,690 15% Taxes 3,592,160 6% Purch Power 37,264,737 62% Debt Service 882,500 2% Ops Exp 3,015,492 5% Cap A/P 2,246,733 4% Cap Labor 2,450,033 4% Budget '18 Actual '18 G & A 1,452,212 2% Millions Actual '15 Actual ' Supplemental Information Funds Balance Policy Srpls/(Dfct) Unrestricted (Undesignated) 1 10,658,876-10,658,876 Rate Stabilization (Designated) 1 5,863,700 4,530,369 1,333,331 Major Catastrophe (Designated) 1 1,000,000 1,000,000 - Debt Service (Covenant) 676, ,750 (294,379) Customer Deposits 2,245,000 1,600,000 - Health & Welfare (State Restricted) 781, ,776 - Conservation Grant (Restricted) 30, ,250 (811,276) Conservation Loans Receivable 10/31/ ,916 < 400,000 Days Cash On Hand (DCOH) Analysis Revenue Funds 12mo Average Balance 15,352,934 16,400,000 (1,047,066) DCOH 12mo Average (5) 1 Included in DCOH 1

100 YTD SALES ACTIVITY YTD Retail Sales - Detail Market - Resale /WC MILLIONS Budget Actual THOUSANDS $3,000 $2,500 $2,000 Budget Actual 15 $1, $1,000 5 $500 - Residential Commercial Industrial Transalta Public Authorities $- Resale White Creek RECs THOUSANDS $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 Market Purchases / WC Budget Actual MILLIONS Budget Total Rev Total Exp $800 $600 $400 $200 $- Market Purchases White Creek RECs Options % Rate Adjust Projected YE 2

101 PUD No. 1 of Lewis County Status of the Budget - October 2018 October YTD Annual 4% Budget Actual Variance Budget Actual Variance Budget Rate Adjust Remaining Budget Projected Operating Revenues Sales of Electricity 4,632,723 5,052, ,754 54,340,464 57,319,548 2,979,084 63,841,391 65,256,696 7,937,148 68,235,780 Sales - Wholesale 292, ,489 (106,855) 3,776,936 3,865,772 88,836 4,047,050 4,047, ,278 4,135,886 Other Revenues 164, ,075 5,560 1,947,408 2,276, ,818 2,275,110 2,275,110 (1,117) 2,603,928 Total Operating Revenues 5,089,582 5,408, ,458 60,064,808 63,461,547 3,396,738 70,163,551 71,578,856 8,117,309 74,975,594 Other Income Total Fiber Revenue 31,978 33,294 1, , ,338 12, , ,120 51, ,294 Total Interest Income 1,708 11,162 9,454 17,083 47,025 29,942 20,500 20,500 (26,525) 50,442 Total Contributed Capital 83, , , ,333 1,232, ,748 1,000,000 1,000,000 (232,082) 1,398,748 Total Grant Revenue 18,577 18, , , , , , ,827 Total Other Income 135, , ,230 1,911,528 2,352, ,864 2,257,870 2,257,870 (94,522) 2,717,311 Expenses Purchased Power 3,882,431 3,828,115 54,316 37,308,723 37,264,737 43,987 44,971,764 44,971,764 7,707,027 44,927,777 Operations Expenses 333, ,631 96,237 2,909,945 3,015,492 (105,547) 3,275,261 3,268, ,341 3,374,379 Total Operating Labor & Benefits 969, ,152 28,032 9,691,833 8,993, ,143 11,630,200 11,630,200 2,636,510 10,932,056 Total Payroll Related Expenses 14,892 3,997 10, ,917 65,704 83, , , ,996 95,487 Total Taxes 269, ,715 (46,274) 3,252,855 3,592,160 (339,305) 3,884,666 3,885, ,247 4,224,712 Total Fiber Expenses 1,770 2,943 (1,173) 17,664 13,768 3,896 6,200 21,200 7,432 17,304 Total Travel and Training 17,157 17,301 (143) 171, ,470 51, , ,888 85, ,784 Total General and Administrative 95,068 81,122 13,946 1,248,511 1,235,044 13,467 1,468,680 1,460, ,065 1,446,641 Total Misc. Expenses ,750 17,227 17,523 36,700 36,700 19,473 19,177 Total Operating Expenses 5,584,785 5,428, ,141 54,784,772 54,318, ,482 65,658,059 65,658,800 11,340,510 65,192,318 Net Margins Before Dbt Srvc & Cap Adds (359,606) 240, ,829 7,191,564 11,495,649 4,304,085 6,763,362 8,177,926 (3,317,723) 12,500,588 Debt Service 88,250 88, , , , ,750 88, ,750 Capital Additions 464, , ,746 4,642,483 4,696,766 (54,283) 5,570,979 5,570, ,213 5,625,266 Margins Before Rate Stabilization Trnsfrs (912,105) (142,529) 769,576 1,666,582 5,916,383 4,249, ,633 1,636,197 5,904,572 Transfer From (To) Rate Stabilization (133,333) (133,333) - (1,333,330) (1,333,330) - (1,600,000) (1,600,000) (1,600,000) Net Margin (1,045,438) (275,862) 769, ,252 4,583,053 4,249,801 (1,378,367) 36,197 4,304,572 3

102 2018 PROJECTED YEAR END RESULTS Actual Budget P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 Full Year Period ActivityPeriod ActivityPeriod Activity Period Activity Period Activity Period Activity Period Activity Period Activity Period Activity Period Activity Period Activity Period Activity Period Activity Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Plan Basis Plan Basis Plan Basis Operating Revenues Sales of Electricity 6,560,292 6,513,710 6,456,337 6,519,408 5,890,173 5,185,260 5,050,160 5,075,768 5,015,963 5,052,477 4,967,199 5,949,033 68,235,780 Sales - Wholesale 653, , , , , , , , , , , ,879 4,135,886 Other Revenues 390, , , , , , , , , , , ,753 2,603,928 Total Operating Revenues 7,604,856 7,066,721 6,916,910 7,223,705 6,711,053 5,945,888 5,709,587 5,460,377 5,414,410 5,408,040 5,247,382 6,266,665 74,975,594 Other Income Total Fiber Revenue 33,130 33,130 33,130 39,130 33,130 33,130 33,294 33,294 38,678 33,294 31,978 31, ,294 Total Interest Income 1,968 1,796 2,052 2,318 2,859 2,739 3,165 9,415 9,552 11,162 1,708 1,708 50,442 Total Contributed Capital 98,967 57, ,981 91, , , , , , ,795 83,333 83,333 1,398,748 Total Grant Revenue 228, ,290 79, ,779 83,044 34,463 18,558 13,073 33,049 18, , ,827 Total Other Income 362, , , , , , , , , , , ,899 2,717,311 Expenses Purchased Power 4,018,378 4,140,587 4,105,368 3,847,176 3,355,558 3,678,814 3,533,241 3,103,463 3,654,038 3,828,115 3,675,395 3,987,645 44,927,777 Operations Expenses 776, , , , , , , ,974 (336,567) 237, , ,270 3,374,379 Total Operating Labor & Ben 817, , , , ,367 1,336, , , , , , ,183 10,932,056 Total Payroll Related Expens (919) 2,258 2,086 4,927 24,362 2, ,389 15,186 3,997 14,892 14,892 95,487 Total Taxes 413, , , , , , , , , , , ,129 4,224,712 Total Fiber Expenses 468 1,059 2, , ,943 1,766 1,770 17,304 Total Travel and Training 3,687 6,184 23,300 9,906 14,729 8,089 9,531 13,643 14,100 17,301 17,157 17, ,784 Total General and Administr 159,814 69, ,928 58, , , , , ,705 81,122 94, ,713 1,446,641 Total Misc. Expenses 681 2, ,932 1,290 2,193 1,193 2,029 1, ,177 Total Operating Expenses 6,189,582 5,944,055 5,913,953 5,456,793 5,187,641 5,650,262 5,140,110 4,709,445 4,697,805 5,428,645 5,246,292 5,627,736 65,192,318 Net Margins Before Debt Service 1,778,231 1,335,297 1,232,343 2,001,135 1,764, , , , , , , ,828 12,500,588 Less Debt Service 88,250 88,250 88,250 88,250 88,250 88,250 88,250 88,250 88,250 88,250 88, ,750 Margins Available For Capital Adds 1,689,981 1,247,047 1,144,093 1,912,885 1,676, , , , , ,973 29, ,828 11,529,838 Less Capital Additions 601, , , , , , , , , , , ,248 5,625,266 Net Margins After Capital Additions 1,088, , ,925 1,196,615 1,313,983 (304,391) 395, , ,806 (142,529) (434,388) 422,580 5,904,572 Transfer From (To) Rate Stabilizat (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,333) (133,337) (1,600,000) Adjusted Net Margin 955, , ,592 1,063,282 1,180,650 (437,724) 262, , ,473 (275,862) (567,721) 289,243 4,304,573 Gross Margin % 46.22% 40.28% 39.48% 45.74% 48.99% 36.71% 36.64% 41.74% 30.81% 27.43% 28.13% 34.98% 38.77% Debt Service Coverage Ratio (DSR) YTD Debt Service Coverage Ratio DSR Per Policy 1.75 DSR Per Bond Covenants

103 Operating Revenues Revenue Detail - October 2018 October YTD Revised (4%) Budget Actual Variance Budget Actual Variance Budget Remaining Budget Sales - Retail RESIDENTIAL SALES 2,342,790 2,373,877 31,087 30,529,930 31,215, ,653 36,597,028 5,381, COMMERCIAL SALES 781, ,770 54,335 8,525,591 9,294, ,374 10,314,357 1,019, INDUSTRIAL SALES 1,027,960 1,141, ,834 9,327,289 10,006, ,105 11,059,570 1,053, TRANSALTA CENTRALIA GENERATION 140, , ,593 2,426,717 2,812, ,454 2,891,016 78, PUBLIC STREET AND HIGHWAY LIGHTING 11,485 13,278 1, , ,052 14, ,939 8, OTHER SALES TO PUBLIC AUTHORITIES 308, ,573 48,035 3,219,260 3,673, ,160 3,954, , EXEMPT SALES TO PUBLIC AUTHORITIES 5,000 1,409 (3,591) 50,000 26,110 (23,890) 60,000 33, GREEN POWER (13) 2,500 4,673 2,173 3,000 (1,673) SECURITY LIGHTING 14,952 15, , ,574 13, ,749 15, IRRIGATION SALES (395) (545) 66,100 66,495 Total Sales - Retail 4,632,723 5,052, ,754 54,340,464 57,319,548 2,979,084 65,256,696 7,937,148 Sales - Wholesale RESALE 213,776 60,183 (153,593) 2,779,276 2,827,768 48,492 3,049, , WHITE CREEK WIND I - WHOLESALE 57,729 90,403 32, , ,522 (10) 700, OTHER ELECTRIC REVENUES - GREEN TAGS 20,839 34,902 14, , ,483 40, ,128 (40,355) Total Sales - Wholesale 292, ,489 (106,855) 3,776,936 3,865,772 88,836 4,047, ,278 Other Revenues REVENUES FROM MERCHANDISING, ETC. 10,000 3,410 (6,590) 100, ,507 11, ,000 8, MISC - REVENUES SUBJECT TO P.U. TAX 3,333 2,399 (935) 33,333 25,603 (7,730) 40,000 14, MISC - REVENUES SUBJECT TO B&O TAX 83 - (83) (833) 1,000 1, REVENUES FROM MERCHANDISING-POLE SALES 1, (183) 14,857 8,698 (6,160) 16,000 7, CONSERVATION LOAN ORIGINATION FEE 83 - (83) 833 5,000 4,167 1,000 (4,000) MISC SERVICE REVENUES 11,667 14,150 2, , ,690 23, , LATE PAYMENT CHARGES 18,750 18,340 (410) 187, ,400 (8,100) 225,000 45, RENEWABLES NET-METERING ,500 2, , POLE CONTACT REVENUE , ,828 8, ,000 (8,828) RENT FROM ELECTRIC PROPERTY 3,900 3,900-39,000 42,405 3,405 46,800 4, WHEELING REVENUES 110, ,302 8,663 1,105,218 1,386, ,207 1,326,310 (60,115) OTHER ELECTRIC REVENUES - POLE ATTACHMENT 833 2,015 1,181 8,333 18,271 9,938 10,000 (8,271) ENGINEERING APPLICATION FEE 3,333 4,700 1,367 33,333 42,700 9,367 40,000 (2,700) Total Other - Revenues 164, ,075 5,560 1,947,408 2,276, ,818 2,275,110 (1,117) Total Operating Revenues 5,089,582 5,408, ,458 60,064,808 63,461,547 3,396,738 71,578,856 8,117, TRANSFER TO/FROM RATE STABILIZATION (133,333) (133,333) - (1,333,330) (1,333,330) - (1,600,000) (266,670) Total Revenues 4,956,249 5,274, ,458 58,731,478 62,128,217 3,396,738 69,978,856 7,850,639 5

104 Purchased Power - October 2018 October YTD Annual Budget Actual Variance Budget Actual Variance Budget Remaining Budget Purchased Power BPA Power PURCHASED POWER - BPA 3,010,220 3,022,947 (12,727) 29,645,647 29,717,036 (71,389) 35,838,243 6,121, BPA REC - LOOKBACK CREDIT (111,531) (111,531) - (1,116,930) (1,118,077) 1,147 (1,339,990) (221,913) Transmission BPA TRANSMISSION 364, ,435 35,821 4,025,976 3,777, ,624 4,962,226 1,184,874 Total - BPA Power and Transmission 3,262,945 3,239,851 23,094 32,554,693 32,376, ,382 39,460,479 7,084,168 Intertie Activity 5,833 5,958 (125) 59,158 55,738 3,420 70,825 15,087 Market Purchases Total - Market Purchases - 282,378 (282,378) 142, ,303 (630,817) 187,981 (585,322) Option Premiums 20,833-20, ,333 30, , , ,000 White Creek Wind OPERATING & MAINTENANCE - WHITE CREEK WIND I 330,092 44, ,906 1,662,471 1,273, ,114 1,795, , REC PURCHASES ,342 (157,342) - (157,342) KLICKITAT TRANSMISSION - WHITE CREEK WIND I 13,675 13, , ,238 14, ,100 41,862 Total - White Creek Wind 343,767 57, ,022 1,799,221 1,552, ,284 1,959, ,605 Other Power Sources/Expenses OPERATION, SUPERVSN, ENGINEERING-HYDR NON LABO HYDRAULIC EXPENSES NON LABOR ,917 2, , MAINT OF RESERVOIRS, DAMS, WATERWAYS NON LABO MAINT OF ELECTRIC PLANT - HYDR. NON LABOR ,000 1, MAINT OF MISC HYDRAULIC PLANT NON LABOR ,000 1, ENERGY NORTHWEST PACKWOOD 32,750 32,755 (5) 321, ,826 (20) 387,306 65, PURCHASED POWER - BURTON CREEK HYDRO INC. 5, ,554 50,000 18,152 31,848 60,000 41, NINE CANYON WIND PROJECT 118, ,319 5,531 1,188,505 1,146,784 41,721 1,426, , SCHEDULING THE ENERGY AUTHORITY 91,200 94,942 (3,741) 912, ,141 (16,137) 1,094, , SLICE RISK MANAGEMENT ,759 (1,759) - (1,759) PURCHASD POWER - CLAY HARTZELL (62) - (62) NEXTEL COMMUNICATIONS SLICE METERING ,667 3,010 3,656 8,000 4, POW-PROFESSIONAL SERVICES ,200 (2,200) - (2,200) POW-DUES/MEMBERSHIPS ,000 45,200 14,800 60,000 14, POW-FURNITURE & EQUIPMENT (67) - (67) POW-OFFICE SUPPLIES (76) - (76) POW-CELL PHONES (360) - (360) POW-MISCELLANEOUS EXPENSES (364) 417 1,231 (815) 500 (731) IS-POWER SUPPLY DEPT EXPENSES ,910 (4,910) - (4,910) Total Other Power Expenses 249, ,183 6,870 2,544,832 2,476,448 68,384 3,042, ,489 Total Purchased Power/Transmission 3,882,431 3,828,115 54,316 37,308,723 37,264,737 43,987 44,971,764 7,707,027 6

105 Operation Expense - October 2018 October YTD Annual Budget Operations Expenses Budget Actual Variance Budget Actual Variance Remaining Budget OPERATION, SUPERVSN, ENGINEERING-TRANS. NON LABOR ,250 3,480 (230) 3, SUBSTATION EXPENSES - TRANS. NON LABOR , ,427 3,080 2, OVERHEAD LINE EXPENSE - TRANS. - NON LABOR , ,083 1,600 1, TRANSMISSION OF ELECTRICITY - TCL 13,333 16,567 (3,234) 133, ,105 (26,772) 160,000 (105) MAINT SUPERVISION AND ENG. - TRANS. NON LABOR ,600 8,350 (6,750) 1,600 (6,750) MAINT OF SUBSTATION EQUIPMENT - TRANS. NON LABOR ,000 1, MAINT OF OVERHEAD LINES - TRANS. NON LABOR ,750 9,105 (5,355) 4,500 (4,605) OPERATION, SUPERVSN, ENGINEERING - DIST. NON LABOR 1, ,609 18,750 9,422 9,328 22,500 13, LOAD DISPATCHING - DIST. NON LABOR (157) 6,667 8,280 (1,613) 8,000 (280) STATION EXPENSE - DIST. NON LABOR ,917 2, ,500 1, OVERHEAD LINE EXPENSE - DIST. NON LABOR 2,792-2,792 27,917 27, ,500 5, UNDERGROUND LINE EXPENSE - DIST. NON LABOR METER EXPENSE - DIST. NON LABOR 5,417-5,417 54,167 40,398 13,769 65,000 24, CUSTOMER INSTALLATION EXPENSE NON LABOR ,181 (10,014) 1,667 11,388 (9,722) 2,000 (9,388) MISC DISTRIBUTION EXPENSE NON LABOR ,000 3, , POLE CONTACT APPLICATION REVIEW NON LABOR ,065 (398) 800 (265) MAINT SUPERVSN AND ENGINEERING - DIST. NON LABOR ,333 3,770 4,563 10,000 6, MAINT OF STATION EQUIPMENT - DIST. NON LABOR ,083 1, ,500 1, MAINT OF OVERHEAD LINES - DIST. NON LABOR 29,167-29, , ,806 82, , , MAINT OF UNDERGROUND LINES - DIST. NON LABOR 2,333-2,333 23,333 12,652 10,682 28,000 15, MAINT OF LINE TRANSFORMERS - DIST. NON LABOR ,917 1,805 1,112 3,500 1, MAINT OF STREET LIGHTING - DIST. NON LABOR ,333 7, ,000 2, MAINT OF METERS - DIST. NON LABOR ,468 (968) 600 (868) MISC MAINTENANCE OF DIST. PLANT NON LABOR ,167-4,167 5,000 5, SUPERVISION OF CUSTOMER ACCOUNTING - NON LABOR 1,083-1,083 11,250 15,540 (4,290) 13,000 (2,540) METER READING EXPENSE - NON LABOR 5,250-5,250 52,500 46,743 5,758 63,000 16, CUSTOMER RECORDS AND COLLECTION EXPENSE-NON LABOR ,167 6,427 (3,260) 3,800 (2,627) ECA/EEI EXPENSES NON LABOR 82,745 44,937 37, ,194 1,182,022 (271,828) 992,939 (189,083) ECA/EEI REVENUES (91,939) - (91,939) (919,388) (787,427) (131,960) (1,103,265) (315,838) CONSERVATION INTEREST ACCOUNT (167) (827) 660 (1,667) (6,840) 5,173 (2,000) 4, REGULATORY COMMISSION EXPENSE 150, , , , , , I-937 EXPENSES AUDIT 1, ,165 19,167 10,858 8,309 23,000 12, COMPLIANCE - WECC/NERC - NON LABOR 2,500 2, ,000 22,223 2,777 30,000 7, MAINT OF GENERAL PLANT - NON LABOR (856) - (856) CONS-SAFETY EQUIPMENT , CONS-PROFESSIONAL SERVICES ,083-2,083 2,500 2, CONS-DUES/MEMBERSHIPS CONS-ADVERTISING 1, ,315 16, ,100 20,000 19, CONS-SMALL TOOLS & MATERIALS ,167 1,007 3,159 5,000 3, CONS-FURNITURE & EQUIPMENT 42 2,802 (2,761) 417 3,448 (3,032) 500 (2,948) 7

106 Operation Expense - October 2018 October YTD Annual Budget Operations Expenses Budget Actual Variance Budget Actual Variance Remaining Budget CONS-OFFICE SUPPLIES (36) 833 2,291 (1,458) 1,000 (1,291) CONS-CELL PHONES ,230 (397) 1,000 (230) CONS-MISCELLANEOUS EXPENSES (105) 3,333 3,695 (362) 4, CONS-RENEWABLE ENGY COST RECOV INCENT - 38,974 (38,974) - 38,974 (38,974) - (38,974) MOR-OFFICE SUPPLIES ,000 1,499 (499) 1,200 (299) MOR-MAINTENANCE - EQUIPMENT ,083-1,083 1,300 1, MOR-UTILITIES 1,583 1, ,833 15, ,000 3, MOR-MISCELLANEOUS EXPENSES ,917 1,458 1,459 3,500 2, MOR-BUILDING MAINT/JANITORIAL 1, ,417 6,691 3,726 12,500 5, CS-CREDIT CARD FEES 25,833 26,435 (601) 258, ,113 (38,780) 310,000 12, CS-POSTAGE 9,167 7,877 1,290 91,667 75,470 16, ,000 34, CS-STATIONARY 2,500-2,500 25,000 14,298 10,702 30,000 15, CS-PROFESSIONAL SERVICES (221) 6,667 10,229 (3,562) 8,000 (2,229) CS-FURNITURE & EQUIPMENT ,333 1,809 6,524 10,000 8, CS-OFFICE SUPPLIES 1, ,667 4,607 12,060 20,000 15, CS-MAINTENANCE - SOFTWARE ,333-8,333 10,000 10, CS-MAINTENANCE - EQUIPMENT 2,083 2,518 (435) 20,833 23,714 (2,880) 25,000 1, CS-UTILITIES ,333 5,663 2,670 10,000 4, CS-CELL PHONES CS-MISCELLANEOUS EXPENSES ,355 (438) 1,100 (255) CS-ADVERTISING , MTR-R SAFETY EQUIPMENT (91) - (91) MTR-R SMALL TOOLS & MATERIALS MTR-R OFFICE SUPPLIES MTR-R MAINTENANCE - SOFTWARE ,000 1, MTR-R MAINTENANCE - EQUIPMENT ,417 7, ,100 2, MTR-R CELL PHONES ,000 2, ,600 1, MTR-R MISCELLANEOUS EXPENSES - 38 (38) (623) - (623) ENG-SUBSTATION EXPENSES-TRANS-NON LABOR (269) - (269) ENG-MAINT OF SUBSTN EQUIP-TRANS NON LABOR , ,037 5,000 4, ENG-MAINT OF O/H LINES-TRANS NON LABOR ,316 (1,316) - (1,316) ENG-MAINT OF O/H LINES-TRANS NON LABOR ,667-1,667 2,000 2, ENG-AUTOMATED MAPPING FACILITIES NON LABOR ,333-3,333 4,000 4, ENG-LOCATING SERVICES 5,000 6,960 (1,960) 50,000 54,251 (4,251) 60,000 5, ENG-PROFESSIONAL SERVICES 2,500-2,500 25,000-25,000 30,000 30, ENG-DUES/MEMBERSHIPS , ,253 10,000 9, ENG-SMALL TOOLS & MATERIALS 417 1,046 (629) 4,167 10,863 (6,696) 5,000 (5,863) ENG-FURNITURE & EQUIPMENT ,667 4,568 (2,901) 2,000 (2,568) ENG-OFFICE SUPPLIES (174) 417 1,980 (1,563) 500 (1,480) ENG-MAINTENANCE - SOFTWARE - 2,802 (2,802) 68,000 70,110 (2,110) 68,000 (2,110) 8

107 Operation Expense - October 2018 October YTD Annual Budget Operations Expenses Budget Actual Variance Budget Actual Variance Remaining Budget ENG-MAINTENANCE - EQUIPMENT ,667 1, , ENG-CELL PHONES ,500 4,456 (1,956) 3,000 (1,456) ENG-MISCELLANEOUS EXPENSES , ,046 5,000 4, ENG-O/H LINE EXPENSE DIST NON LABOR - 1,541 (1,541) - 1,541 (1,541) - (1,541) ENG-MAINT OF STATION EQUIP-DIST-NON LABOR 9,375 2,373 7,002 93,750 32,777 60, ,500 79, ENG-MAINT OF OVERHEAD LINES-DIST NON LABOR ,000 1,480 3,520 5,000 3, ENG-MAINT OF U/G LINES-DIST- NON LABOR ,167 13,000 (8,833) 5,000 (8,000) ENG-MAINT OF TRANSFORMERS -NON LABOR ,126 (292) 1,000 (126) ENG-MAINT OF METERS - DIST- NON LABOR ,000 1, ENG-MISC MAINT OF DIST PLANT - NON LABOR (243) - (243) IS-ENGINEERING & OPERATIONS EXPENSES 208 1,153 (944) 10,655 19,408 (8,753) 11,072 (8,336) IS-STATION EXPENSE-DIST - NON LABOR ,000 53,511 (23,511) 30,000 (23,511) IS-METER SHOP EXPENSES , IS-CUSTOMER SERVICE EXPENSES , ,840 10,000 9, IS-CONSERVATION DEPT EXPENSES (11) - (11) IS-UTILITIES 833 2,876 (2,042) 8,333 28,878 (20,544) 10,000 (18,878) IS-WECC/NERC NON LABOR ,100 1, OPS-MAINT OF O/H LINES-TRANS-NON LABOR 3, ,008 34,167 16,530 17,637 41,000 24, OPS-FURNITURE & EQUIPMENT (457) - (457) OPS-OFFICE SUPPLIES - 25 (25) - 1,687 (1,687) - (1,687) OPS-MAINTENANCE - SOFTWARE 1,342 1,342-13,417 13,417-16,100 2, OPS-MAINTENANCE - EQUIPMENT , OPS-CELL PHONES ,500 2,769 (269) 3, OPS-MISC EXPENSES ,500 4,670 (2,170) 3,000 (1,670) OPS-FURNITURE & EQUIPMENT (161) - (161) OPS-IT HARDWARE/SOFTWARE ,883 (1,883) - (1,883) OPS-OFFICE SUPPLIES - 6 (6) (674) - (674) OPS-DISPATCH MAINTENANCE - EQUIPMENT - 31 (31) (846) - (846) OPS-DISPATCH-UTILITIES (381) 4,208 7,364 (3,156) 5,050 (2,314) OPS-DISPATCH - MISCELLANEOUS EXPENSES 1,142-1,142 11,417 4,070 7,347 13,700 9, OPS-STATION EXPENSE-DIST NON LABOR (32) - (32) OPS-O/H LINE EXPENSE - DIST. NON LABOR (974) 4,000 3, , OPS-PERSONAL PROTECTION (957) - (957) OPS-SMALL TOOLS & MATERIALS 2,500 5,387 (2,887) 25,000 40,205 (15,205) 30,000 (10,205) OPS-HOT TOOLS ,167 2,937 1,230 5,000 2, OPS-FURNITURE & EQUIPMENT ,167-4,167 5,000 5, OPS-MAINTENANCE - EQUIPMENT ,167 3, ,000 1, OPS-UTILITIES 2,500 2,963 (463) 25,000 29,935 (4,935) 30, OPS-CELL PHONES ,000 6,133 (1,133) 6,000 (133) OPS-MISCELLANEOUS EXPENSES 1, ,667 14,159 2,507 20,000 5,841 9

108 Operation Expense - October 2018 October YTD Annual Budget Operations Expenses Budget Actual Variance Budget Actual Variance Remaining Budget OPS-U/G LINE EXPENSE-DIST NON LABOR ,333 2,310 1,023 4,000 1, OPS-MAINT OF STATION EQUIP-DIST-NON LABOR 1,000-1,000 10,000 12,055 (2,055) 12,000 (55) OPS-MAINT OF OVERHEAD LINES-DIST NON LABOR ,440 (18,440) - (18,440) OPS-MAINT OF TRANSFORMERS-DIST-NON LABOR ,782 (2,782) - (2,782) OPS-MAINT OF STREET LIGHTING-DIST-NON LAB ,167-2,167 2,600 2, OPS-MISC MAINT OF DIST PLANT - NON LABOR (801) - (801) OPS-COAL CREEK - PCB CLEANUP 167 2,800 (2,633) 1,667 4,823 (3,157) 2,000 (2,823) OPS-BUILDING MAINTENANCE/JANITORIAL 3,228 3,834 (606) 32,283 38,914 (6,630) 38,740 (174) OPS-CELL PHONES , SFTY-FR -ENGINEERS ,333 2,228 1,106 4,000 1, SFTY-OPERATIONS MAT'L - 3,667 (3,667) 35,000 35,428 (428) 35,000 (428) SFTY-FR -OPERATIONS 2,500 2,746 (246) 26,500 25, ,000 4, SFTY-PPE -OPERATIONS 2,917 9,461 (6,545) 29,167 22,436 6,731 35,000 12, SFTY- FR -METER SHOP (127) 2,700 2, , SFTY-PPE -METER SHOP , , SFTY-PPE -MAINT STATION ,000 6,701 (701) 6,000 (701) SFTY-FR -TREE CREW (642) 7,000 6, , SFTY-PPE -TREE CREW , ,547 2,000 1, SFTY-MAINT OF TOOLS ,333 13,041 (4,708) 10,000 (3,041) SFTY-FR -METER READERS , ,640 4,000 3, SFTY-FR -INFORMATION SYSTEMS , , SFTY-PROFESSIONAL SERVICES 2,092 1, ,917 18,961 1,956 25,100 6, SFTY-TRAINING MAT'L & SUPPLIES ,853 (1,020) 1,000 (853) SFTY-OFFICE FURNITURE SFTY-OFFICE SUPPLIES (89) 417 1,767 (1,350) 500 (1,267) SFTY-CELL PHONES SFTY-MISC ,449 (1,033) 500 (949) SFTY-PPE TREE-SAFETY EQUIPMENT (82) - (82) TREE-SMALL TOOLS & MATERIALS 1,250 1, ,500 15,845 (3,345) 15,000 (845) TREE-MAINTENANCE - EQUIPMENT ,500 3,517 (1,017) 3,000 (517) TREE-CELL PHONES (79) - (79) TREE-MISCELLANEOUS EXPENSES , MTR-S-SAFETY EQUIPMENT ,042-1,042 1,250 1, MTR-S-SMALL TOOLS & MATERIALS ,333 9,948 (1,614) 10, MTR-S-FURNITURE & EQUIPMENT , ,919 2,500 2, MTR-S-OFFICE SUPPLIES MTR-S-MAINTENANCE - SOFTWARE ,167 7,981 (6,814) 1,400 (6,581) MTR-S-MAINTENANCE - EQUIPMENT , ,494 9,000 8, MTR-S-CELL PHONES ,083 1, ,500 1,263 10

109 Operation Expense - October 2018 October YTD Annual Budget Operations Expenses Budget Actual Variance Budget Actual Variance Remaining Budget MTR-S-MISCELLANEOUS EXPENSES , ,409 10,800 10, MTR-S-MAINT OF RECLOSERS/REGULATORS ,833 1,206 4,627 7,000 5, MTR-S-MAINT OF METERS-DIST-NON LABOR 3, ,631 33,923 26,293 7,630 40,707 14,414 Transalta Grant Expenditures TRANSALTA GRANT ADMIN-LABOR 8,098 6,479 1,619 80,983 68,790 12,193 97,180 28, TRANSALTA GRANT REBATES 12,098 12, , ,157 9, ,309 21, TRANSALTA GRANT ADVERTISING ,441 64,441 Operations Expenses 345, , ,335 2,909,946 3,015,492 (105,546) 3,268, ,341 11

110 Labor & Benefits Admin Expense - October 2018 October YTD Annual Expenses Budget Actual Variance Budget Actual Variance Budget 12 Remaining Budget EMPLOYEE PERSONAL LEAVE TAKEN 8,333-8,333 83, ,115 (96,782) 100,000 (80,115) COST AND EXPENSE OF MERCHANDISING, ETC. LABOR 18,633 6,023 12, ,333 70, , , , HYDRAULIC EXPENSES LABOR 1,667-1,667 16,667 13,423 3,244 20,000 6, OPERATION, SUPERVISION, ENGINEERING - TRANS. LABOR 10,725 11,319 (594) 107, ,830 (33,580) 128,700 (12,130) LOAD DISPATCHING - TRANS. LABOR , ,934 3,600 3, SUBSTATION EXPENSES - TRANS. LABOR ,068 (818) 300 (768) OVERHEAD LINE EXPENSE - TRANS. - LABOR 817 5,546 (4,729) 8,167 7, ,800 1, MAINT SUPERVISION AND ENG. - TRANS. LABOR 7,092 1,257 5,835 70,917 72,868 (1,951) 85,100 12, MAINT OF SUBSTATION EQUIPMENT - TRANS. LABOR (190) 200 (156) MAINT OF OVERHEAD LINES - TRANS. LABOR 158 5,371 (5,213) 1,583 59,592 (58,009) 1,900 (57,692) OPERATION, SUPERVISION, ENGINEERING - DIST. LABOR 65, ,649 (39,791) 658, ,119 (265,536) 790,300 (133,819) AUTOMATED MAPPING FACILITIES MANAGEMENT LABOR 8,992 10,866 (1,875) 89, ,049 (15,133) 107,900 2, LOAD DISPATCHING - DIST. LABOR 52,858 49,869 2, , ,438 15, , , STATION EXPENSE - DIST. LABOR 1,342 4,749 (3,407) 13,417 38,857 (25,440) 16,100 (22,757) OVERHEAD LINE EXPENSE - DIST. LABOR 26,017 49,540 (23,524) 260, ,136 44, ,200 96, UNDERGROUND LINE EXPENSE - DIST. LABOR METER EXPENSE - DIST. LABOR 46,592 37,791 8, , ,729 (50,812) 559,100 42, CUSTOMER INSTALLATION EXPENSE LABOR 1, ,750 10,529 1,221 14,100 3, MISC DISTRIBUTION EXPENSE LABOR 4,375 2,650 1,725 43,750 47,620 (3,870) 52,500 4, POLE CONTACT APPLICATION REVIEW LABOR 1,383 1, ,833 19,935 (6,101) 16,600 (3,335) MAINT SUPERVISION AND ENGINEERING - DIST. LABOR 2,058 11,640 (9,581) 20,583 65,288 (44,705) 24,700 (40,588) MAINT OF STATION EQUIPMENT - DIST. LABOR 4,500 3,267 1,233 45,000 37,692 7,309 54,000 16, MAINT OF OVERHEAD LINES - DIST. LABOR 214, ,566 97,217 2,147,833 1,335, ,971 2,577,400 1,241, MAINT OF UNDERGROUND LINES - DIST. LABOR 18,208 13,517 4, , ,547 76, , , MAINT OF LINE TRANSFORMERS - DIST. LABOR 3,900 4,105 (205) 39,000 38, ,800 8, MAINT OF STREET LIGHTING - DIST. LABOR 3,742 7,310 (3,569) 37,417 56,161 (18,744) 44,900 (11,261) MAINT OF METERS - DIST. LABOR 8,892 11,581 (2,689) 88,917 77,640 11, ,700 29, MISC MAINTENANCE OF DIST. PLANT LABOR , , SUPERVISION OF CUSTOMER ACCOUNTING - LABOR 13,083 14,324 (1,241) 130, ,281 (3,447) 157,000 22, METER READING EXPENSE - LABOR 39,158 40,367 (1,208) 391, ,767 3, ,900 82, CUSTOMER RECORDS AND COLLECTION EXPENSE - LABOR 109,046 87,238 21,808 1,090, , ,518 1,308, , SUPERVISION AND OPERATIONS-LABOR 14,161-14, ,608 94,435 47, ,930 75, ECA/EEI EXPENSES LABOR 10,965 19,781 (8,816) 109, ,702 (35,052) 131,580 (13,122) ADMINISTRATION AND GENERAL SALARIES - LABOR 182, ,627 (18,414) 1,822,125 1,860,513 (38,388) 2,186, , COMMISSIONER PAYROLL 17,373-17, , , , , HEALTH, WELFARE, SAFETY, 1ST AID LABOR 2,683 17,208 (14,525) 26,833 66,165 (39,332) 32,200 (33,965) EMPLOYEE PENSION AND BENEFITS 5, ,734 50,000 71,776 (21,776) 60,000 (11,776) VEBA CASHOUT 4,167 37,149 (32,982) 41,667 81,972 (40,305) 50,000 (31,972) SHORT TERM DISABILITY(EMPLOYER) 5,008 4, ,083 15,879 34,205 60,100 44, COMPLIANCE - WECC/NERC - LABOR 3, ,133 32,983 50,887 (17,903) 39,580 (11,307)

111 Admin Expense - October 2018 October YTD Annual Expenses Budget Actual Variance Budget Actual Variance Budget Remaining Budget MAINT OF GENERAL PLANT - LABOR 9,095 14,982 (5,887) 90, ,115 (46,165) 109,140 (27,975) POWER MANANGEMENT LABOR 28,529 19,742 8, , , , , , SAFETY COORDINATOR SALARY 12,779 23,161 (10,382) 127, ,095 (17,303) 153,350 8,255 Total Operating Labor & Benefits 969, ,152 28,032 9,691,833 8,993, ,143 11,630,200 2,636,510 Payroll Related Expenses TAXES - UNEMPLOYMENT COMPENSATION - 1,498 (1,498) - 4,831 (4,831) - (4,831) PCORI FEES ,768 (1,185) 700 (1,068) FLU SHOT CLINICS (719) 2, ,531 3,000 2, RETIREE/COBRA MED INS - PREMIUMS & CLAIMS 14,583 1,530 13, ,833 58,135 87, , ,865 Total Payroll Related Expenses 14,892 3,997 10, ,917 65,704 83, , ,996 Taxes TAXES - UTILITY 171, ,552 (32,466) 2,070,039 2,332,741 (262,702) 2,472, , TAXES - LEASEHOLD ,000 1, TAXES - PRIVILEGE 94, ,462 (13,940) 1,144,483 1,221,487 (77,004) 1,366, , TAXES - BUSINESS & SALES 3,750 3, ,500 37,933 (433) 45,000 7,067 Total Taxes 269, ,715 (46,274) 3,252,855 3,592,160 (339,305) 3,885, ,247 Fiber Expenses OPERATION, SUPERVISION, ENGINEERING - FIBER LABOR (910) - 8,024 (8,024) - (8,024) MISC MAINTENANCE OF FIBER PLANT - LABOR (589) 3,080 3,361 (281) 3, MISC MAINTENANCE OF FIBER PLANT - NON LABOR , ,664 2,500 2, IS-OPERATION, SUPERVSN ENG-FIBER-NON LABOR (397) - (397) ENG-MISC MAINT OF FIBER PLANT-NON LABOR 833 1,137 (303) 8,333 1,566 6,767 10,000 8, OPS-MISC MAINT OF FIBER PLANT-NON LABOR ,167-4,167 5,000 5,000 Total Fiber Expenses 1,770 2,943 (1,173) 17,664 13,768 3,896 21,200 7,432 General and Administrative ADMINISTRATION AND GENERAL SALARIES - NON LABOR ,083-2,083 2,500 2, PROPERTY INSURANCE 22,917 17,047 5, , ,919 (15,752) 275,000 30, COAL CREEK EXPENSES - PCB CLEANUP ,083 6,525 (4,442) 2,500 (4,025) HEALTH, WELFARE, SAFETY, 1ST AID - NON LABOR (180) 500 (97) SAFETY COORDINATOR NON LABOR COM-OFFICE SUPPLIES COM-MISCELLANEOUS EXPENSES COM-PROFESSIONAL SERVICES ,083-2,083 2,500 2, ADM-ADVERTISING-MISC ADM-ADVERTISING-LEGAL ,000 1,032 3,968 6,000 4, ADM-ADVERTISING-PROMO ,833 6,495 (662) 7,

112 Admin Expense - October 2018 October YTD Annual Expenses Budget Actual Variance Budget Actual Variance Budget Remaining Budget ADM-POSTAGE ADM-FURNITURE & EQUIPMENT , ,472 3,000 2, ADM-OFFICE SUPPLIES ,000 3,377 1,623 6,000 2, ADM-UTILITIES 42 1,141 (1,099) ,225 (13,808) 500 (13,725) ADM-CELL PHONES ,083 1, , ADM-MISCELLANEOUS EXPENSES ,250 4,815 1,435 7,500 2, ADM-MISCELLANEOUS EMPLOYEES 1, ,750 1,438 12,312 16,500 15, ADM-PROFESSIONAL SERVICES 17,417 16, , ,910 (7,743) 209,000 27, ADM-DUES/MEMBERSHIPS 8,500 8, , ,450 (2,575) 208,650 32, ADM-BUILDING MAINT/JANITORIAL - 3,813 (3,813) - 45,124 (45,124) - (45,124) ADM-BUILDING MAINTENANCE/JANITORIAL-100 3,750-3,750 37,500-37,500 45,000 45, HR-ADVERTISING 417 1,326 (910) 4,167 5,594 (1,428) 5,000 (594) HR-FURNITURE & EQUIPMENT HR-OFFICE SUPPLIES (351) 500 (268) HR-CELL PHONES HR-MISCELLANEOUS EXPENSES , ,012 3,000 2, HR-PROFESSIONAL SERVICES 11,250 3,457 7, ,500 88,156 24, ,000 46, HR-DUES/MEMBERSHIPS 1, ,061 12,500 10,377 2,123 15,000 4, HR-MAINTENANCE - SOFTWARE ,083-2,083 2,500 2, ACCT-BANK FEES - LINE OF CREDIT ,250-6,250 7,500 7, ACCT-POSTAGE 1,650 1,969 (319) 16,500 18,625 (2,125) 19,800 1, ACCT-FURNITURE & EQUIPMENT , ,793 4,000 3, ACCT-OFFICE SUPPLIES ,417 4,238 1,179 6,500 2, ACCT-CELL PHONES (15) ACCT-MISCELLANEOUS EXPENSES , ,990 50,000 49, ACCT-PROFESSIONAL SERVICES 3,125-3,125 31,250 83,896 (52,646) 37,500 (46,396) ACCT-DUES/MEMBERSHIPS , ,100 1,800 1, ACCT-MAINTENANCE - SOFTWARE ,500-2,500 2,500 2, ACCT-MAINTENANCE - EQUIPMENT ,292 1, ,750 1, IS-PROFESSIONAL SERVICES 5,000 9,588 (4,588) 85,000 68,718 16,282 86,429 17, IS-SMALL TOOLS & MATERIALS (491) - 2,618 (2,618) - (2,618) IS-FURNITURE & EQUIPMENT - 1,190 (1,190) 2,500 3,411 (911) 2,500 (911) IS-COMMISSION, ADMIN, ACCOUNTING AND HR EXPENSES 2,917-2,917 29,167 28, ,000 6, IS-OFFICE SUPPLIES , ,441 2,500 1, IS-MAINTENANCE - SOFTWARE 7,166 13,646 (6,480) 129, ,273 (54,156) 155,700 (27,573) IS-MAINTENANCE - EQUIPMENT 1,250-1,250 79,000 37,470 41,530 81,500 44, IS-MISCELLANEOUS EXPENSES , ,054 1,500 1, IS-CELL PHONES ,000 4,924 (1,924) 3,600 (1,324) Total General and Administrative 95,068 81,122 13,946 1,248,511 1,235,044 13,467 1,460, ,065 14

113 Admin Expense - October 2018 October YTD Annual Expenses Budget Actual Variance Budget Actual Variance Budget 15 Remaining Budget Travel and Training COM-TRAVEL EXPENSES 1,564 2,002 (438) 15,643 14,402 1,241 18,772 4, ADM-TRAVEL EXPENSES 1, ,000 5,424 4,576 12,000 6, HR-TRAVEL EXPENSES 250 1,166 (916) 2,500 2,581 (81) 3, ACCT-TRAVEL EXPENSES (40) 8,333 2,514 5,819 10,000 7, CONS-TRAVEL EXPENSES ,000 1,684 3,316 6,000 4, MOR-TRAVEL EXPENSES (413) CS-TRAVEL EXPENSES (411) 5,833 1,408 4,425 7,000 5, MTR-R TRAVEL EXPENSES POW-TRAVEL EXPENSES 1, ,500 8,375 4,125 15,000 6, ENG-TRAVEL EXPENSES ,922 4,383 2,539 8,306 3, IS-TRAVEL EXPENSES 1,000 4,208 (3,208) 10,000 13,950 (3,950) 12,000 (1,950) OPS-TRAVEL EXPENSES 667 1,825 (1,158) 6,667 5,185 1,482 8,000 2, OPS-DISPATCH TRAVEL (424) 500 (340) OPS-TRAVEL EXPENSES 500 1,320 (820) 5,000 1,434 3,566 6,000 4, SFTY-TRAVEL (387) 1,667 1, , TREE-TRAVEL EXPENSES ,000 1, MTR-S-TRAVEL EXPENSES ,628 2, , COM-TRAINING EXPENSES ,270 1,006 2,264 3,924 2, ADM-TRAINING EXPENSES ,833 5, ,000 1, HR-TRAINING EXPENSES ,500 1,174 1,326 3,000 1, ACCT-TRAINING EXPENSES ,667 1,350 5,317 8,000 6, CONS-TRAINING EXPENSES (67) 3,333 1,795 1,538 4,000 2, CS-TRAINING EXPENSES ,667 4,152 2,514 8,000 3, MTR-R TRAINING EXPENSES POW-TRAINING EXPENSES (283) 1,667 1, , ENG-TRAINING EXPENSES 866 1,095 (230) 8,655 8, ,386 1, IS-TRAINING EXPENSES 2, ,450 25,000 9,559 15,441 30,000 20, OPS-TRAINING EXPENSES ,917 6,787 (3,871) 3,500 (3,287) OPS-TRAINING EXPENSES ,667 1, , OPS-TRAINING EXPENSES ,917 8,755 (5,838) 3,500 (5,255) SFTY-TRAINING , ,102 2,000 1, TREE-TRAINING EXPENSES ,000 1, MTR-S-TRAINING EXPENSES ,885 2, , Total Travel and Training 17,157 17,301 (143) 171, ,470 51, ,888 85,418 Misc. Expenses COST AND EXPENSE OF MERCHANDISING, ETC. NON LABOR ,750 16,641 (6,891) 11,700 (4,941) PROJECT SHARE - PUD ,000-25,000 25,000 25, MISCELLANEOUS GENERAL EXPENSE NON LABOR (222) (586) - (586) Total Misc. Expenses ,750 17,227 17,523 36,700 19,473

114 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget Commission COM-TRAVEL EXPENSES 1,564 2,002 (438) 15,643 14,402 1,241 18,772 4, COM-TRAINING EXPENSES ,270 1,006 2,264 3,924 2, COM-OFFICE SUPPLIES COM-MISCELLANEOUS EXPENSES COM-PROFESSIONAL SERVICES ,083-2,083 2,500 2,500 Commission Total 2,141 2, ,413 15,576 5,837 25,696 10,120 Administration ADM-ADVERTISING-MISC ADM-ADVERTISING-LEGAL ,000 1,032 3,968 6,000 4, ADM-ADVERTISING-PROMO ,833 6,495 (662) 7, ADM-POSTAGE ADM-TRAVEL EXPENSES 1, ,000 5,424 4,576 12,000 6, ADM-TRAINING EXPENSES ,833 5, ,000 1, ADM-FURNITURE & EQUIPMENT , ,472 3,000 2, ADM-OFFICE SUPPLIES ,000 3,377 1,623 6,000 2, ADM-CELL PHONES ,083 1, , ADM-MISCELLANEOUS EXPENSES ,250 4,815 1,435 7,500 2, ADM-MISCELLANEOUS EMPLOYEES 1, ,750 1,438 12,312 16,500 15, ADM-PROFESSIONAL SERVICES 17,417 16, , ,910 (7,743) 209,000 27, ADM-DUES/MEMBERSHIPS 8,500 8, , ,450 (2,575) 208,650 32,200 Administration Total 31,600 27,356 4, , ,914 16, ,850 97,936 Human Resources HR-ADVERTISING 417 1,326 (910) 4,167 5,594 (1,428) 5,000 (594) HR-TRAVEL EXPENSES 250 1,166 (916) 2,500 2,581 (81) 3, HR-TRAINING EXPENSES ,500 1,174 1,326 3,000 1, HR-FURNITURE & EQUIPMENT HR-OFFICE SUPPLIES (351) 500 (268) HR-CELL PHONES HR-MISCELLANEOUS EXPENSES , ,012 3,000 2, HR-PROFESSIONAL SERVICES 11,250 3,457 7, ,500 88,156 24, ,000 46, HR-DUES/MEMBERSHIPS 1, ,061 12,500 10,377 2,123 15,000 4, HR-MAINTENANCE - SOFTWARE ,083-2,083 2,500 2, EMPLOYEE PENSION AND BENEFITS 5, ,734 50,000 71,776 (21,776) 60,000 (11,776) RETIREE/COBRA MED INS - PREMIUMS & CLAIMS 14,583 1,530 13, ,833 58,135 87, , , ACTIVE EMPLOYEE MED INS - PREMIUMS & CLAIMS 241, ,376 (710) 2,416,667 1,431, ,193 2,900,000 1,468, PCORI FEES ,768 (1,185) 700 (1,068) 16

115 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget FLU SHOT CLINICS (719) 2, ,531 3,000 2, PERS - EMPLOYER 104,167 97,598 6,568 1,041, ,162 72,505 1,250, , TERM INSURANCE - EMPLOYER 917 2,511 (1,594) 9,167 25,055 (15,888) 11,000 (14,055) W-C1 & W-C6 - EMPLOYER (INDUSTRIAL INS 11,667-11, ,667 81,709 34, ,000 58, VEBA CASHOUT 4,167 37,149 (32,983) 41,667 74,210 (32,543) 50,000 (24,210) SHORT TERM DISABILITY(EMPLOYER) 5,008 4, ,083 15,879 34,205 60,100 44, VEBA - EMPLOYER CONTRIBUTIONS 8,083 8,684 (600) 80,833 78,265 2,568 97,000 18,735 Human Resources Total 409, ,036 7,547 4,095,833 2,917,995 1,177,839 4,915,000 1,997,005 Accounting ACCT-BANK FEES - LINE OF CREDIT ,250-6,250 7,500 7, ACCT-POSTAGE 1,650 1,969 (319) 16,500 18,625 (2,125) 19,800 1, ACCT-TRAVEL EXPENSES (40) 8,333 2,514 5,819 10,000 7, ACCT-TRAINING EXPENSES ,667 1,350 5,317 8,000 6, ACCT-FURNITURE & EQUIPMENT , ,793 4,000 3, ACCT-OFFICE SUPPLIES ,417 4,238 1,179 6,500 2, ACCT-CELL PHONES (15) ACCT-MISCELLANEOUS EXPENSES , ,990 50,000 49, ACCT-PROFESSIONAL SERVICES 3,125-3,125 31,250 83,896 (52,646) 37,500 (46,396) ACCT-DUES/MEMBERSHIPS , ,100 1,800 1, ACCT-MAINTENANCE - SOFTWARE ,500-2,500 2,500 2, ACCT-MAINTENANCE - EQUIPMENT ,292 1, ,750 1,300 Accounting Total 8,610 3,158 5, , ,599 20, ,830 37,231 Warehouse W/H-SAFETY EQUIPMENT (12) - (12) W/H-TRAVEL EXPENSES W/H-TRAINING EXPENSES ,320 (903) 500 (820) W/H-SMALL TOOLS & MATERIALS ,167 4,640 (474) 5, W/H-FURNITURE & EQUIPMENT ,515 (2,682) 1,000 (2,515) W/H-OFFICE SUPPLIES (489) 833 2,121 (1,288) 1,000 (1,121) W/H-MAINTENANCE - EQUIPMENT ,083 1, ,500 1, W/H-CELL PHONES ,346 (1,346) - (1,346) W/H-MISCELLANEOUS EXPENSES ,667 1, , Warehouse Total 1, ,417 15,680 (5,264) 12,500 (3,180) Conservation CONS-SAFETY EQUIPMENT , CONS-TRAVEL EXPENSES ,000 1,684 3,316 6,000 4, CONS-TRAINING EXPENSES (67) 3,333 1,795 1,538 4,000 2,205 17

116 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget CONS-PROFESSIONAL SERVICES ,083-2,083 2,500 2, CONS-DUES/MEMBERSHIPS CONS-ADVERTISING 1, ,315 16, ,100 20,000 19, CONS-SMALL TOOLS & MATERIALS ,167 1,007 3,159 5,000 3, CONS-FURNITURE & EQUIPMENT 42 2,802 (2,761) 417 3,448 (3,032) 500 (2,948) CONS-OFFICE SUPPLIES (36) 833 2,291 (1,458) 1,000 (1,291) CONS-CELL PHONES ,230 (397) 1,000 (230) CONS-MISCELLANEOUS EXPENSES (105) 3,333 3,695 (362) 4, CONS-RENEWABLE ENGY COST RECOV INCENT - 38,974 (38,974) - 38,974 (38,974) - (38,974) Conservation Total 3,792 43,955 (40,164) 37,917 55,334 (17,417) 45,500 (9,834) Morton MOR-TRAVEL EXPENSES (413) MOR-OFFICE SUPPLIES ,000 1,499 (499) 1,200 (299) MOR-MAINTENANCE - EQUIPMENT ,083 1,083 1,300 1, MOR-MISCELLANEOUS EXPENSES ,917 1,458 1,459 3,500 2,042 Morton Total (83) 5,577 3,515 2,061 6,692 3,177 Customer Service CS-CREDIT CARD FEES 25,833 26,435 (601) 258, ,113 (38,780) 310,000 12, CS-POSTAGE 9,167 7,877 1,290 91,667 75,470 16, ,000 34, CS-STATIONARY 2,500-2,500 25,000 14,298 10,702 30,000 15, CS-TRAVEL EXPENSES (411) 5,833 1,408 4,425 7,000 5, CS-TRAINING EXPENSES ,667 4,152 2,514 8,000 3, CS-PROFESSIONAL SERVICES (221) 6,667 10,229 (3,562) 8,000 (2,229) CS-FURNITURE & EQUIPMENT ,333 1,809 6,524 10,000 8, CS-OFFICE SUPPLIES 1, ,667 4,607 12,060 20,000 15, CS-MAINTENANCE - SOFTWARE ,333-8,333 10,000 10, CS-MAINTENANCE - EQUIPMENT 2,083 2,518 (435) 20,833 23,714 (2,880) 25,000 1, CS-CELL PHONES CS-MISCELLANEOUS EXPENSES ,355 (438) 1,100 (255) CS-ADVERTISING , Customer Service Total 45,048 39,477 5, , ,931 15, , ,649 Meter Reading MTR-R SAFETY EQUIPMENT (91) - (91) MTR-R TRAVEL EXPENSES MTR-R TRAINING EXPENSES MTR-R SMALL TOOLS & MATERIALS MTR-R OFFICE SUPPLIES

117 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget MTR-R MAINTENANCE - SOFTWARE ,000 1, MTR-R MAINTENANCE - EQUIPMENT ,417 7, ,100 2, MTR-R CELL PHONES ,000 2, ,600 1, MTR-R MISCELLANEOUS EXPENSES 38 (38) 623 (623) - (623) Meter Reading Total 1, ,328 13,660 10,636 3,024 16,392 5,756 Power Supply POW-TRAVEL EXPENSES 1, ,500 8,375 4,125 15,000 6, POW-TRAINING EXPENSES (283) 1,667 1, , POW-PROFESSIONAL SERVICES ,200 (2,200) - (2,200) POW-DUES/MEMBERSHIPS ,000 45,200 14,800 60,000 14, POW-FURNITURE & EQUIPMENT (67) - (67) POW-OFFICE SUPPLIES (76) - (76) POW-CELL PHONES (360) - (360) POW-MISCELLANEOUS EXPENSES (364) 417 1,231 (815) 500 (731) Power Supply Total 1,458 1,656 (197) 74,583 59,033 15,550 77,500 18,467 Engineering ENG-SUBSTATION EXPENSES-TRANS-NON LABOR (269) - (269) ENG-MAINT OF SUBSTN EQUIP-TRANS NON LABOR , ,037 5,000 4, ENG-MAINT OF O/H LINES-TRANS NON LABOR ,316 (1,316) - (1,316) ENG-MAINT OF O/H LINES-TRANS NON LABOR ,667-1,667 2,000 2, ENG-AUTOMATED MAPPING FACILITIES NON LABOR ,333-3,333 4,000 4, ENG-LOCATING SERVICES 5,000 6,960 (1,960) 50,000 54,251 (4,251) 60,000 5, ENG-TRAVEL EXPENSES ,922 4,383 2,539 8,306 3, ENG-TRAINING EXPENSES 866 1,095 (230) 8,655 8, ,386 1, ENG-PROFESSIONAL SERVICES 2,500-2,500 25,000-25,000 30,000 30, ENG-DUES/MEMBERSHIPS , ,253 10,000 9, ENG-SMALL TOOLS & MATERIALS 417 1,046 (629) 4,167 10,863 (6,696) 5,000 (5,863) ENG-FURNITURE & EQUIPMENT ,667 4,568 (2,901) 2,000 (2,568) ENG-OFFICE SUPPLIES (174) 417 1,980 (1,563) 500 (1,480) ENG-MAINTENANCE - SOFTWARE - 2,802 (2,802) 68,000 70,110 (2,110) 68,000 (2,110) ENG-MAINTENANCE - EQUIPMENT ,667 1, , ENG-CELL PHONES ,500 4,456 (1,956) 3,000 (1,456) ENG-MISCELLANEOUS EXPENSES , ,046 5,000 4, ENG-O/H LINE EXPENSE DIST NON LABOR - 1,541 (1,541) - 1,541 (1,541) - (1,541) ENG-MAINT OF STATION EQUIP-DIST-NON LABOR 9,375 2,373 7,002 93,750 32,777 60, ,500 79, ENG-MAINT OF OVERHEAD LINES-DIST NON LABOR ,000 1,480 3,520 5,000 3, ENG-MAINT OF U/G LINES-DIST- NON LABOR ,167 13,000 (8,833) 5,000 (8,000) ENG-MAINT OF TRANSFORMERS -NON LABOR ,126 (292) 1,000 (126) ENG-MAINT OF METERS - DIST- NON LABOR ,000 1,000 19

118 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget ENG-MISC MAINT OF DIST PLANT - NON LABOR (243) - (243) ENG-MISC MAINT OF FIBER PLANT-NON LABOR 833 1,137 (303) 8,333 1,566 6,767 10,000 8,434 Engineering Total 23,324 17,392 5, , ,883 89, , ,809 Information Systems IS-POWER SUPPLY DEPT EXPENSES ,910 (4,910) - (4,910) IS-OPERATION, SUPERVSN ENG-FIBER-NON LABOR (397) - (397) IS-ENGINEERING & OPERATIONS EXPENSES 208 1,153 (944) 10,655 19,408 (8,753) 11,072 (8,336) IS-STATION EXPENSE-DIST - NON LABOR ,000 53,511 (23,511) 30,000 (23,511) IS-METER SHOP EXPENSES , IS-CUSTOMER SERVICE EXPENSES , ,840 10,000 9, IS-CONSERVATION DEPT EXPENSES (11) - (11) IS-TRAVEL EXPENSES 1,000 4,208 (3,208) 10,000 13,950 (3,950) 12,000 (1,950) IS-TRAINING EXPENSES 2, ,450 25,000 9,559 15,441 30,000 20, IS-PROFESSIONAL SERVICES 5,000 9,588 (4,588) 85,000 68,718 16,282 86,429 17, IS-SMALL TOOLS & MATERIALS (491) - 2,618 (2,618) - (2,618) IS-FURNITURE & EQUIPMENT - 1,190 (1,190) 2,500 3,411 (911) 2,500 (911) IS-COMMISSION, ADMIN, ACCOUNTING AND HR EXPENSE 2,917-2,917 29,167 28, ,000 6, IS-OFFICE SUPPLIES , ,441 2,500 1, IS-MAINTENANCE - SOFTWARE 7,166 13,646 (6,480) 129, ,273 (54,156) 155,700 (27,573) IS-MAINTENANCE - EQUIPMENT 1,250-1,250 79,000 37,470 41,530 81,500 44, IS-CELL PHONES ,000 4,924 (1,924) 3,600 (1,324) IS-MISCELLANEOUS EXPENSES , ,054 1,500 1, IS-WECC/NERC NON LABOR ,100 1,100 Information Systems Total 21,683 30,486 (8,803) 416, ,673 (15,818) 463,900 31,227 Operations OPS-MAINT OF O/H LINES-TRANS-NON LABOR 3, ,008 34,167 16,530 17,637 41,000 24, OPS-TRAVEL EXPENSES 667 1,825 (1,158) 6,667 5,185 1,482 8,000 2, OPS-TRAINING EXPENSES ,917 6,787 (3,871) 3,500 (3,287) OPS-FURNITURE & EQUIPMENT (457) - (457) OPS-OFFICE SUPPLIES - 25 (25) - 1,687 (1,687) - (1,687) OPS-MAINTENANCE - SOFTWARE 1,342 1,342 (0) 13,417 13,417 (0) 16,100 2, OPS-MAINTENANCE - EQUIPMENT , OPS-CELL PHONES ,500 2,769 (269) 3, OPS-MISC EXPENSES ,500 4,670 (2,170) 3,000 (1,670) OPS-DISPATCH TRAVEL (424) 500 (340) OPS-TRAINING EXPENSES ,667 1, , OPS-FURNITURE & EQUIPMENT (161) - (161) OPS-IT HARDWARE/SOFTWARE ,883 (1,883) - (1,883) OPS-OFFICE SUPPLIES - 6 (6) (674) - (674) 20

119 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance 21 Remaining Budget OPS-DISPATCH MAINTENANCE - EQUIPMENT - 31 (31) (846) - (846) OPS-DISPATCH - MISCELLANEOUS EXPENSES 1,142-1,142 11,417 4,070 7,347 13,700 9, OPS-STATION EXPENSE-DIST NON LABOR (32) - (32) OPS-O/H LINE EXPENSE - DIST. NON LABOR (974) 4,000 3, , OPS-PERSONAL PROTECTION (957) - (957) OPS-TRAVEL EXPENSES 500 1,320 (820) 5,000 1,434 3,566 6,000 4, OPS-TRAINING EXPENSES ,917 8,755 (5,838) 3,500 (5,255) OPS-SMALL TOOLS & MATERIALS 2,500 5,387 (2,887) 25,000 40,205 (15,205) 30,000 (10,205) OPS-HOT TOOLS ,167 2,937 1,230 5,000 2, OPS-FURNITURE & EQUIPMENT ,167-4,167 5,000 5, OPS-MAINTENANCE - EQUIPMENT ,167 3, ,000 1, OPS-CELL PHONES ,000 6,133 (1,133) 6,000 (133) OPS-MISCELLANEOUS EXPENSES 1, ,667 14,159 2,507 20,000 5, OPS-U/G LINE EXPENSE-DIST NON LABOR ,333 2,310 1,023 4,000 1, OPS-MAINT OF STATION EQUIP-DIST-NON LABOR 1,000-1,000 10,000 12,055 (2,055) 12,000 (55) OPS-MAINT OF OVERHEAD LINES-DIST NON LABOR ,440 (18,440) - (18,440) OPS-MAINT OF TRANSFORMERS-DIST-NON LABOR ,782 (2,782) - (2,782) OPS-MAINT OF STREET LIGHTING-DIST-NON LAB ,167-2,167 2,600 2, OPS-MISC MAINT OF DIST PLANT - NON LABOR (801) - (801) OPS-MISC MAINT OF FIBER PLANT-NON LABOR ,167-4,167 5,000 5, OPS-CELL PHONES , Operations Total 16,408 12,199 4, , ,844 (13,760) 200,900 19,056 Safety SFTY-FR -ENGINEERS ,333 2,228 1,106 4,000 1, SFTY-OPERATIONS MAT'L - 3,667 (3,667) 35,000 35,428 (428) 35,000 (428) SFTY-FR -OPERATIONS 2,500 2,746 (246) 26,500 25, ,000 4, SFTY-PPE -OPERATIONS 2,917 9,461 (6,545) 29,167 22,436 6,731 35,000 12, SFTY- FR -METER SHOP (127) 2,700 2, , SFTY-PPE -METER SHOP , , SFTY-PPE -MAINT STATION ,000 6,701 (701) 6,000 (701) SFTY-FR -TREE CREW (642) 7,000 6, , SFTY-PPE -TREE CREW , ,547 2,000 1, SFTY-MAINT OF TOOLS ,333 13,041 (4,708) 10,000 (3,041) SFTY-FR -METER READERS , ,640 4,000 3, SFTY-FR -INFORMATION SYSTEMS , , SFTY-TRAVEL (387) 1,667 1, , SFTY-TRAINING , ,102 2,000 1, SFTY-PROFESSIONAL SERVICES 2,092 1, ,917 18,961 1,956 25,100 6, SFTY-TRAINING MAT'L & SUPPLIES ,853 (1,020) 1,000 (853) SFTY-OFFICE FURNITURE

120 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget SFTY-OFFICE SUPPLIES (89) 417 1,767 (1,350) 500 (1,267) SFTY-CELL PHONES SFTY-MISC ,449 (1,033) 500 (949) SFTY-PPE Safety Total 9,938 19,300 (9,362) 152, ,604 9, ,950 28,346 Tree Crew TREE-SAFETY EQUIPMENT (82) - (82) TREE-TRAVEL EXPENSES ,000 1, TREE-TRAINING EXPENSES ,000 1, TREE-SMALL TOOLS & MATERIALS 1,250 1, ,500 15,845 (3,345) 15,000 (845) TREE-MAINTENANCE - EQUIPMENT ,500 3,517 (1,017) 3,000 (517) TREE-CELL PHONES (79) - (79) TREE-MISCELLANEOUS EXPENSES , Tree Crew Total 1,750 1, ,500 19,863 (2,363) 21,000 1,137 Mechanics MECH-TRAVEL EXPENSES MECH-TRAINING EXPENSES MECH-PROFESSIONAL SERVICES 2,500 11,256 (8,756) 25,000 80,830 (55,830) 30,000 (50,830) MECH-SMALL TOOLS & MATERIALS 1, ,217 16,667 7,232 9,435 20,000 12, MECH-OFFICE SUPPLIES MECH-MAINTENANCE - SOFTWARE ,667 2,775 (1,108) 2,000 (775) MECH-MAINTENANCE-EQUIPMENT , ,104 5,000 4, MECH-UTILITIES - 32 (32) - 32 (32) - (32) MECH-VEHICLE WASHING 1,667 1,887 (220) 16,667 15,590 1,076 20,000 4, MECH-CELL PHONES , ,251 2,000 1, MECH-MISCELLANEOUS EXPENSES ,167 (310) 4,476 5,000 5, MECH-AERIAL UNITS 1,500 16,422 (14,922) 15,000 25,428 (10,428) 18,000 (7,428) MECH-TIRES 2,500 2,844 (344) 25,000 23,678 1,322 30,000 6, MECH-SHOP SUPPLIES 1, ,000 12,792 2,208 18,000 5, MECH-PETROLEUM PRODUCTS 1,500-1,500 15,000 10,861 4,139 18,000 7, MECH-VEHICLE SERVICES 1,500 1, ,000 14, ,000 3, MECH-SMALL PARS-UNDER $500 2,917 3,256 (339) 29,167 28,020 1,146 35,000 6, MECH-LARGE PARTS 2,917 1,373 1,543 29,167 37,520 (8,354) 35,000 (2,520) MECH-MAINT OF HYDRAULICS (175) 2,083 7,179 (5,096) 2,500 (4,679) Mechanics Total 21,667 40,026 (18,360) 216, ,421 (49,754) 260,000 (6,421) Meter Shop MTR-S-SAFETY EQUIPMENT ,042-1,042 1,250 1,250 22

121 Departments - October 2018 October YTD Annual Budget Expenses By Department Budget Actual Variance Budget Actual Variance Remaining Budget MTR-S-TRAVEL EXPENSES ,628 2, , MTR-S-TRAINING EXPENSES ,885 2, , MTR-S-SMALL TOOLS & MATERIALS ,333 9,948 (1,614) 10, MTR-S-FURNITURE & EQUIPMENT , ,919 2,500 2, MTR-S-OFFICE SUPPLIES MTR-S-MAINTENANCE - SOFTWARE ,167 7,981 (6,814) 1,400 (6,581) MTR-S-MAINTENANCE - EQUIPMENT , ,494 9,000 8, MTR-S-CELL PHONES ,083 1, ,500 1, MTR-S-MISCELLANEOUS EXPENSES , ,409 10,800 10, MTR-S-MAINT OF STATION EQUIP - NON LABOR (13) - (13) MTR-S-MAINT OF RECLOSERS/REGULATORS ,833 1,206 4,627 7,000 5, MTR-S-MAINT OF TRANSFROMERS-DIST-NON LABOR (368) - (368) MTR-S-MAINT OF METERS-DIST-NON LABOR 3, ,631 33,923 26,293 7,630 40,707 14,414 Meter Shop Total 7,714 1,302 6,412 77,336 53,237 24,098 92,573 39,336 Facilities MAINT OF GENERAL PLANT - NON LABOR (856) - (856) ADM-UTILITIES 42 1,141 (1,099) ,225 (13,808) 500 (13,725) ADM-BUILDING MAINTENANCE/JANITORIAL-100 3,750-3,750 37,500 37,500 45,000 45, W/H-UTILITIES 1, ,250 6,006 5,244 13,500 7, MOR-UTILITIES 1,583 1, ,833 15, ,000 3, MOR-BUILDING MAINT/JANITORIAL 1, ,417 6,691 3,726 12,500 5, CS-UTILITIES ,333 5,663 2,670 10,000 4, IS-UTILITIES 833 2,876 (2,042) 8,333 28,878 (20,544) 10,000 (18,878) OPS-DISPATCH-UTILITIES (381) 4,208 7,364 (3,156) 5,050 (2,314) OPS-UTILITIES 2,500 2,963 (463) 25,000 29,935 (4,935) 30, OPS-COAL CREEK - PCB CLEANUP 167 2,800 (2,633) 1,667 4,823 (3,157) 2,000 (2,823) OPS-BUILDING MAINTENANCE/JANITORIAL 3,228 3,834 (606) 32,283 38,914 (6,630) 38,740 (174) Total Facilities 15,524 17,266 (1,742) 155, ,790 (3,549) 186,290 27,500 Total Departments 623, ,143 (36,936) 6,756,196 5,483,530 1,272,665 8,021,845 2,538,315 23

122 Lewis PUD Fiber Optic System 2018

123 Fiber Optic Revenue October 2018 FIBER OPTIC ACTIVITY YTD 2018 YTD 2017 Operating Revenues $ 343,337 $330,702 Operating Expenses 8, Maintenance Expenses 5,347 4,480 Depreciation Expense 81,140 80,767 Total Operating Expenses 94,908 85,278 Net Operating Income 248, ,424 Capital Investment Plant $ 1,952,078 Less: Accumulated Depreciation 697,264 Net Plant 1,254,814 CWIP 15,900 Net Telecommunication Plant 1,270,714

124 Fiber Optic Revenue October 2018 Customer Monthly Annual Total To Date BPA $ 2,302 $ - $ 23,020 Chehalis School District - 5,383 5,383 Centurylink 1,2,3,4 7,505-75,050 Noanet 7,438-74,380 Cascade 1,600-15,995 County Health 723-7,230 Mashell Telecom Inc ,256 Toledo Telecom 2,745-27,455 TDS 1,300-13,000 Morton Hospital 551-5,510 WAVE Broadstripe 888 8,878 WAVE Broadstripe 5,348 53,475 Tiger Mountain 592-5,920 Sawtooth 1,879-18,785 Cowlitz Falls Project - 6,000 6,000 $ 343,337

125 The Cowlitz Falls Project Fiscal Budget 2019 October

126 CFP KWH Generation 2018 vs History 60,000,000 50,000,000 40,000,000 October 2,311,900 30,000,000 20,000,000 10,000, ,000,000 kwh Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

127 CFP KWH Generation 2018 vs Highest / Lowest 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 kwh Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec