Big Utilities Little Hydro NWHA Annual Meeting 2011

Resource Drivers Cost RES compliance Boardman closure Build vs. Buy

Hydro’s Role Likely to be minor High cost (especially for greenfield sites) Small projects Typically not near our territory Long regulatory lead times

Hydro’s Advantages It isn’t wind Known technology Small enough so that RFP requirements don’t apply

What projects is PGE likely to pursue Inside our existing hydro system Aggressive efficiency and capacity upgrades New projects Strategic partnership opportunities “Too good to pass up”

Capacity and Efficiency Upgrades Runner Replacements Project removal

Projects inside the PGE system Timothy Lake Harriet Lake Faraday Diversion Dam

Strategic partnerships Irrigation Districts

Too good to pass up Bowman Dam Approx 6 mw Infrastructure largely in place Could be operated remotely from existing project

Conclusion Regulatory efficiencies would help Not all hydro is created equal not all projects need the same level of scrutiny Real drivers are size and location