1. Regional Cooperation Debt: A case study on debt management Javier Fernandez Treasury Manager, Bonneville Power Administration

2. BPA’s Debt Portfolio 9/30/13 GenerationTransmissionTotal $ millions Liabilities Outstanding WAI RateWAM* Liabilities Outstanding WAI RateWAM* Liabilities Outstanding WAI WAM* Rate Total Appropriations3,666627.42017.26.73,8676.127.4 Total Bonds Issued to Treasury1,6323.79.52,2533.9133,8853.811.5 Total Federal Liabilities$5,2985.321.9$2,4544.212.5$7,752519.4 BPA Liabilities to Energy Northwest4,4394.56.31,0144.95.75,4534.65.8 BPA Liabilities to Other Nonfederal Parties1134.69.37133.48263.69.3 BPA Liabilities for Capital Leases 3/1882.96.91882.96.9 BPA Liabilities for Prepay 4/3354.57.93354.57.9 Total Nonfederal Liabilities$4,8874.56.5$1,9164.26.5$6,8034.46.5 Total FCRPS Liabilities$10,1854.914.5$4,3704.29.9$14,5554.713.4 *WAM as of 9/30/2014

3. Power’s Projected Outstanding Debt From 2014 IPR, millions

4. 1997 Appropriations Refinance $ in millions Pre-1996Post-1996 $ Principal Outstanding$6,690$4,101 % Average Interest Rate3.41%7.13% Additional Principal$100 Callable at par, anytime

5. Regional Cooperation Debt $3.8 billion Energy Northwest debt available to refinance from 2014-2024 New maturities are primarily tax exempt with an estimated average interest rate of 4.92% and placed between 2020 and 2044 $3.8 billion of Federal Appropriated debt and Federal bonds paid in advance using cash freed up from the refinancing. Being paid from 2014-2024 Average interest rate on the appropriations and bonds paid in advance is 6.07% Previously, the majority of this debt was modeled as being paid between 2020 and 2033

6. Projected Savings Base Case Scenario Two regional cooperation debt (millions) Total Principal Total Interest Total Debt Service Total Principal Total Interest Total Debt Service 2014 500440940500438938 2015 412462874412447859 2016 5544721,0265544491,003 2017 5994551,0545994171,016 2018 6294651,0946294141,043 2019 5314539846273921,019 2020 5294639926233941,017 2021 4994729716133981,011 2022 5324781,0106124031,015 2023 5534781,0316114091,020 2024 5194851,0046004151,015 2025 4264889145914241,015 2026 4444879315874291,016 2027 4504969465804371,017 2028 4585049625754421,017 2014-2028 7,6357,09814,7338,7136,30815,021 2029 4715059765894411,030 2030 4855099945694421,011 2031 4995091,0085644411,005 2032 5165091,025521439960 2033 5365061,042535440975 2034 5525051,057548443991 2035 5725071,0795584471,005 2036 5885091,0975954501,045 2037 6115081,1196094491,058 2038 6395021,1416224441,066 2039 6674951,1626394391,078 2040 6974861,1836644311,095 2041 7214751,1967054221,127 2042 7424641,2067264101,136 2043 7654521,2177554001,155 2044 7884391,2277833821,165 2014-2044 17,48414,97832,46218,69513,22831,923 Energy Northwest regional cooperation debt extended: $3.2 billion. Additional Federal Debt retired with freed funds: $3.2 billion. Total Interest Savings: $1,750 million Additional Federal Debt retired with interest savings: $1,211 million. Rate benefit given with interest savings: $539 million.

7. Power Outstanding Debt 2016$10.4B1.1X244.8% 2028$10.6B0.9X244.9% 2044$9.3B1.7X265.0% 2016$10.3B1.2X244.5% 2028$9.8B1.3X224.7% 2044$8.1B1.8X265.0% 2016$10.7B1.9X224.4% 2028$9.0B1.4X224.5% 2044$5.9B2.6X254.9% DebtP/IWAIWAM