1. Combined Utility System Liquidity Replacement Finance Department Kelly Dowe, Director Presented By: Jennifer Olenick, Deputy Assistant Director Public Finance January 31, 2011

2. 2 CUS Liquidity Summary Liquidity TypeSeries Size ($ millions) BankExpiration Commercial Paper B-1 250.00JPMorgan Chase12/16/2013 B-2 75.00Wells Fargo12/14/2012 B-3 75.00Bank of Tokyo-Mitsubishi1/20/2015 B-4 100.00Barclay's7/15/2013 B-5 100.00VacantN/A B-6 100.00Citibank7/15/2013 Total 700.00 Variable Rate Demand Bonds 2004B-1 225.00Bank of America12/16/2013 2004B-2 100.00State Street4/5/2013 2004B-3 75.00Sumitomo4/6/2012 2004B-4 75.00JPMorgan Chase4/6/2013 2004B-5 100.00Lloyd's4/6/2013 2004B-6 78.33Scotia4/6/2012 2008D-1 132.01JPMorgan Chase12/31/2012 Total 785.34 Put Bonds 2010 B-1 200.00RBC3/22/2013 2010 B-2 49.08RBC3/23/2013 Total 249.08

3. The Series B-5 CP program will support the CUSs CIP. Commercial paper has proven to be a cost-effective method of financing the Systems capital improvement program; saving the System millions of dollars in debt service. The Finance Working Group recommends obtaining an aggregate amount of $100 million and entering into an agreement with a highly rated bank to support the Series B-5 CP program. The specific bank(s) selected for this transaction will be presented to Council through an RCA that is forthcoming. RCA is expected to be brought before Council in February. 3 CUS Commercial Paper Series B-5

4. Variable rate bonds are another cost-effective method of financing the Systems capital improvement program. The current facilities will expire April 6, 2012. The Finance Working Group recommends maintaining the aggregate amount of capacity at $153.33 million and entering into new liquidity agreements with highly rated banks to support the Series 2004B Bonds. The specific banks selected for this transaction will be presented to Council through an RCA that is forthcoming. RCA is expected to be brought before Council in February or March. 4 CUS VRDBs Series 2004B-3 & B-6