License Application

LICENSE APPLICATION

Final

FOR THE RELICENSING OF THE ROCKY REACH HYDROELECTRIC PROJECT FERC Project No. 2145

June 30, 2004

Public Utility District No. 1 of Chelan County Wenatchee, Washington

TABLE OF CONTENTS

TABLE OF CONTENTS...... I

ACRONYMS, ABBREVIATIONS & DEFINITIONS ...... VII

INITIAL STATEMENT...... 1-1

EXECUTIVE SUMMARY ...... 2-1

2.0 Executive Summary...... 2-1 2.1 Introduction ...... 2-1 2.2 Chelan PUD...... 2-1 2.3 The Rocky Reach Hydroelectric Project...... 2-2 2.4 Reservoir Operations ...... 2-2 2.5 Rocky Reach Hydroelectric Reservoir...... 2-4 2.6 Rocky Reach Hydroelectric Project History...... 2-4 2.7 Chelan PUD’s Relicensing Process ...... 2-5 2.8 Chelan PUD’s Anadromous Fish Agreement and Habitat Conservation Plan for the Rocky Reach Hydroelectric Project ...... 2-5 2.9 The Rocky Reach Hydroelectric Project License Application—Its Content and Purpose...... 2-6

INTRODUCTION...... 3-1

3.0 Introduction ...... 3-1 3.1 Background...... 3-1 3.2 Rocky Reach Hydroelectric Project Overview ...... 3-1 3.3 Rocky Reach Hydroelectric Project Operations ...... 3-2 3.4 The Existing Federal License ...... 3-2 3.5 Current FERC Regulations ...... 3-2 3.6 Alternative Relicensing Process ...... 3-3 3.7 Participants in the Relicensing Process...... 3-4 3.8 The Relicensing Timeline...... 3-4 3.9 Organization of the License Application ...... 3-5

EXHIBIT A: DESCRIPTION OF THE ROCKY REACH HYDROELECTRIC PROJECT ...... A-1

A1.0 Overview of the Rocky Reach Hydroelectric Project ...... A-1 A1.1 Relationship of the Rocky Reach Hydroelectric Project to Chelan PUD’s System...... A-1 A1.2 Major Components ...... A-2 A1.3 Rocky Reach Hydroelectric Project Lands ...... A-2

A2.0 Detailed Description ...... A-4 A2.1 Structures...... A-4

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page i SS/3959 Table of Contents

A2.2 Reservoir...... A-10 A2.3 Turbines/Generators ...... A-11 A2.4 Transmission Lines...... A-14 A2.5 Switchgear ...... A-14 A2.6 Additional Mechanical, Electrical, and Transmission Equipment Appurtenant to the Rocky Reach Hydroelectric Project ...... A-15 A2.7 Lands of the United States...... A-15

EXHIBIT B: ROCKY REACH HYDROELECTRIC PROJECT OPERATION...... B-1

B1.0 Overview of Hydroelectric Project Operations ...... B-1 B1.1 General Description of Overall Project Operations ...... B-1 B1.2 Description of How Rocky Reach Hydroelectric Project is Operated in Adverse, Mean, and High Water Years ...... B-3 B1.3 Minimum, Mean and Maximum Recorded Flows ...... B-4 B1.4 Flow Duration Curves...... B-5

B2.0 Resource Utilization...... B-12 B2.1 Description of Plant Control...... B-12 B2.2 Estimate of Annual Plant Factor...... B-12 B2.3 Estimate of Dependable Capacity...... B-12 B2.4 Estimate of Annual Energy Production ...... B-12 B2.5 Estimated Hydraulic Capacity of the Powerhouse...... B-12 B2.6 Tailwater Rating Curve...... B-13 B2.7 Powerplant Capability Curve...... B-14

B3.0 Power Utilization...... B-15

B4.0 Proposed Development ...... B-16

EXHIBIT C: CONSTRUCTION HISTORY...... C-1

C1.0 Construction History ...... C-1

EXHIBIT D: STATEMENT OF COSTS AND FINANCING...... D-1

D1.0 Original Cost of the Rocky Reach Hydroelectric Project ...... D-1

D2.0 Rocky Reach Hydroelectric Project Takeover Costs...... D-1

D3.0 Estimated Costs of Proposed Rocky Reach Hydroelectric Project Modifications ...... D-1

D4.0 Estimated Average Annual Costs of the Rocky Reach Hydroelectric Project ...... D-1

D5.0 Average Annual Value of the Rocky Reach Hydroelectric Project Power ...... D-2

D6.0 Sources of Financing and Revenues ...... D-3

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page ii June 30, 2004 Table of Contents

EXHIBIT E: ENVIRONMENTAL REPORT ...... E-1

(Refer to the Preliminary Draft Environmental Assessment)

EXHIBIT F: GENERAL PROJECT DRAWINGS...... F-1

F1.0 Exhibit Overview and Information about Critical Energy Infrastructure Information Designation of this Material ...... F-1

EXHIBIT G: PROJECT MAPS ...... G-1

G1.0 Exhibit Overview and Information about Non-Internet Public Designation of this Material...... G-1

EXHIBIT H: SUPPLEMENTAL INFORMATION...... H-1

H1.0 Efficiency and Reliability...... H-1 H1.1 Plans for Increased Capacity or Generation...... H-1 H1.2 Coordination with Other Water Resource Projects...... H-2 H1.3 Coordination with Other Electric Systems...... H-2

H2.0 Chelan PUD’s Need for Power Generated by the Rocky Reach Hydroelectric Project...... H-7 H2.1 General Description of Power Needs...... H-7

H3.0 Alternative Sources of Power ...... H-10 H3.1 Power Replacement Costs ...... H-10

H4.0 Effect on Chelan PUD Industrial Facilities ...... H-12

H5.0 Indian Tribal Need for Electricity...... H-12

H6.0 Transmission System Impacts ...... H-13 H6.1 Effect of Redistribution of Power Flows if License is not Renewed ...... H-13 H6.2 Advantages of Chelan PUD’s Transmission System...... H-13 H6.3 Single-Line Diagrams...... H-13

H7.0 Plans to Modify Rocky Reach Hydroelectric Project Operations and Conformance with Comprehensive Plans ...... H-14

H8.0 Conformance of the Existing Rocky Reach Hydroelectric Project with Comprehensive Plans ...... H-15

H9.0 Financial and Personnel Resources...... H-21 H9.1 Financial Resources ...... H-21 H9.2 Personnel Resources ...... H-22

H10.0 Property Boundary Expansion...... H-23

H11.0 Electricity Consumption Efficiency Improvement Program...... H-25 H11.1 Customer Programs ...... H-25 H11.2 Regulatory Compliance ...... H-28

H12.0 Indian Tribe Mailing List ...... H-29

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page iii SS/3959 Table of Contents

H13.0 Management, Operation and Maintenance Measures...... H-30 H13.1 Operation During Floods ...... H-30 H13.2 Warning Devices ...... H-30 H13.3 Security Enhancements...... H-30 H13.4 Changes That Might Affect Emergency Action Plan ...... H-31 H13.5 Monitoring Devices to Detect Structural Movement...... H-32 H13.6 Safety Record...... H-32

H14.0 Description of Current Operations ...... H-32

H15.0 History of the Project and Operation and Maintenance Upgrades...... H-33

H16.0 Generation Lost Due to Unscheduled Outages ...... H-34

H17.0 Compliance Record ...... H-34

H18.0 Actions Taken Affecting the Public...... H-35

H19.0 Impact on Expenses if License is Transferred ...... H-36

H20.0 Annual Fees...... H-37

APPENDIX A: EXHIBIT F GENERAL PROJECT DRAWINGS (CEII DESIGNATED)

APPENDIX B: EXHIBIT G PROJECT MAPS (NON-INTERNET PUBLIC DESIGNATED)

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page iv June 30, 2004 Table of Contents

LIST OF TABLES

Table A-1: Dam Features...... A-4 Table A-2: Spillway Features ...... A-5 Table A-3: Powerhouse Features...... A-6 Table A-4: Non-Overflow Section Features...... A-7 Table A-5: Fish Passage Facilities Features ...... A-8 Table A-6: Recreation Facilities...... A-9 Table A-7: Public Safety Features...... A-9 Table A-8: Reservoir Features...... A-11 Table A-9: Turbine/Generator Features...... A-13 Table A-10: Switchgear Features ...... A-15

Table B-1: Minimum, Average and Maximum Flows (cfs) ...... B-4 Table B-2 : Power Purchasers and Percent Share...... B-15

Table C-1: Chronological History of the Rocky Reach Hydroelectric Project...... C-3

Table D4-1: Estimated Annual Cost of the Rocky Reach Hydroelectric Project (in 2003 Dollars) ...... D-2 Table D6-1: Allocation of Rocky Reach Hydroelectric Project Generation...... D-3

Table F-1: Exhibit F General Project Drawing List for the Rocky Reach Hydroelectric Project...... F-2

Table G-1: Exhibit G Project Map List for the Rocky Reach Hydroelectric Project ...... G-1

Table H-1: FERC List of Comprehensive Plans Affecting the Rocky Reach Hydroelectric Project ...... H-15 Table H-2: Amended Rocky Reach Hydroelectric Project Boundary Survey (Chelan and Douglas counties) ...... H-23 Table H-3: Annual Charges for Use of Federal Lands, 1981-Present ...... H-37

LIST OF FIGURES

Figure A-1: Rocky Reach Hydroelectric Project Reservoir Area-Capacity Curve...... A-11

Figure B1-1: Annual Flow Discharge Duration Curve...... B-5 Figure B1-2: Monthly Flow Discharge Duration Curve for January...... B-6 Figure B1-3: Monthly Flow Discharge Duration Curve for February...... B-6 Figure B1-4: Monthly Flow Discharge Duration Curve for March...... B-7 Figure B1-5: Monthly Flow Discharge Duration Curve for April...... B-7 Figure B1-6: Monthly Flow Discharge Duration Curve for May...... B-8 Figure B1-7: Monthly Flow Discharge Duration Curve for June ...... B-8 Figure B1-8: Monthly Flow Discharge Duration Curve for July...... B-9 Figure B1-9: Monthly Flow Discharge Duration Curve for August...... B-9 Figure B1-10: Monthly Flow Discharge Duration Curve for September ...... B-10 Figure B1-11: Monthly Flow Discharge Duration Curve for October...... B-10 Figure B1-12: Monthly Flow Discharge Duration Curve for November...... B-11 Figure B1-13: Monthly Flow Discharge Duration Curve for December...... B-11 Figure B2-1: Rocky Reach Hydroelectric Project Tailwater Rating Curve...... B-13 Figure B2-2: Rocky Reach Hydroelectric Project Powerplant Capability Curve...... B-14

Figure H-1: Usable Storage in the Mid-Columbia Hydroelectric Projects...... H-5 Figure H-2: Rocky Reach Hydroelectric Project Headwater Duration Curve ...... H-6

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page v SS/3959

ACRONYMS, ABBREVIATIONS & DESCRIPTIONS D A DES Duke Engineering & Services A amperes DFOP Detailed Fishway Operating Procedure ac-ft acre-feet DGT Dissolved Gas Team ACHP Advisory Council on Historic DO dissolved oxygen Preservation DOA Department of Agriculture ADA American Disabilities Act DOC Department of Commerce ADC Animal Damage Control DOI Department of the Interior AIR Additional Information Request DOJ Department of Justice As arsenic Douglas PUD Public Utility District No. 1 of Douglas County B DTU Daily Temperature Units

BA Biological Assessment BIA Bureau of Indian Affairs E BLM Bureau of Land Management EA Environmental Assessment BPA Bonneville Power Administration EAP Emergency Action Plan BR Bureau of Reclamation ECPA Electric Consumers Protection Act EIA Energy Information Administration C EIS Environmental Impact Statement ENR Environmental & Natural Resources C Celsius ENT enterocci c centi EPA Environmental Protection Agency CDCAC Chelan/Douglas Community Action ESA Endangered Species Act Council EWM Eurasian Water-milfoil CBFWA Columbia Basin Fish and Wildlife ESU Evolutionary Significant Unit Central Mid-Columbia Hourly Coordination computer CEII Critical Energy Infrastructure F Information F Fahrenheit cm centimeter FC fecal coliform CFR Code of Federal Regulations Fe iron cfs cubic feet per second FELCC Firm Energy Load Carrying Capability Chelan PUD Public Utility District No. 1 of Chelan FEMA Federal Emergency Management County Agency CIPS Commission Issuance Posting System FERC Federal Energy Regulatory COE U.S. Army Corps of Engineers Commission Colville Confederated Tribes of the Colville FGE Fish Guidance Efficiencies Confederated Reservation FH Fish Hatchery Tribes CRITFC Columbia River Inter-tribal Fish FLPMA Federal Land Policy & Management Commission Act CROHMS Columbia River Operational Hydro FPA Federal Power Act Management System FPC Fish Passage Center CRSMA Columbia River Salmon Mitigation FPE Fish Passage Efficiency Analysis fps feet per second cu yd cubic yard FR Federal Register CWA Clean Water Act FS fecal streptococcus ft feet/foot FTU Formazine Turbidity Units FWCA Fish & Wildlife Coordination Act FWS Fish & Wildlife Service

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page vii SS/3959 Acronyms, Abbreviations & Definitions

G kV kilovolt(s) kVA kilovolt ampere(s) G giga kW kilowatt(s) g gram kWh kilowatt-hour(s) GBT Gas Bubble Trauma Grant Public Utility District No. 2 of Grant PUD County L GIS Geographic Information Systems l liter(s) GMA Growth Management Act Project reservoir GMP General Management Plan La Gorge Bypass Reach ke gpd gallons per day En GPS Global Positioning Systems tia gpm gallons per minute t lb pound H µ micro µg microgram HCA Mid-Columbia Hourly Coordination

Agreement HCP Habitat Conservation Plan M HEP Habitat Evaluation Procedure M mega HLCTS Hydropower License Compliance m meter Tracking System m milli HMA Habitat Management Area Mcf one thousand cubic feet HPCRMP Historic Properties and Cultural mg milligram Resources Management Plan mi mile hp horsepower MIS Management Indicator Species hr hour MOU Memorandum of Understanding HVAC Heating, ventilation and air mm millimeter(s) conditioning MPR Master Planned Resorts mps meters per second I mcf million cubic feet MSL mean sea level IAC Interagency Committee for Outdoor MVA megavolt-ampere(s) Recreation MW megawatt(s) ICD Initial Consultation Document MWh megawatt-hour(s) ICP-MS Inductively Coupled Plasma Mass

Spectometry IFIM Instream Flow Incremental N Methodology n nano IGBC Interagency Grizzly Bear Committee NBS National Biological Survey in inch NEPA National Environmental Policy Act IPP Interim Protection Plans NEPAct National Energy Policy Act IRS Indian Resources Section NERC North American Electric Reliability IWW Irrigation water management Council NFMA National Forest Management Act J NGO Non-Governmental Organization NGVD National Geodetic Vertical Datum Joint Aquatic Resource Permit JARPA (1929 datum) (USC&GS) Application NHPA National Historic Preservation Act JFBS juvenile fish bypass system NMFS National Marine Fisheries Service

NOI Notice of Intent K NPDES National Pollutant Discharge k kilo Elimination System kcfs thousand cubic feet per second NPPC Northwest Power Planning Council km kilometer NPS National Park Service NRA National Recreation Area

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page viii June 30, 2004 Acronyms, Abbreviations & Definitions

NRCS Natural Resource Conservation S Service NRHP National Register of Historic Places SCORP State Comprehensive Outdoor NTSA Non-Treaty Storage Agreement Recreation Plan NTU Nephlometric Turbidity Units SD1 Scoping Document No. 1 (NEPA) NWI National Wetlands Inventory SD2 Scoping Document No. 2 (NEPA) NWM Washington Noxious Weed SEPA State Environmental Policy Act Management SHPO State Historical Preservation Office(r) NWPP Northwest Power Pool SNAP Sustainable Natural Alternative Power NWPPC Northwest Power Planning Council sq mi square mile

O T OEPR Office of Environmental Project TC total coliform Review TDG Total Dissolved Gas OHL Office of Hydropower Licensing TMDL total maximum daily load OS Office of the Solicitor TN total nitrogen oz ounce TP total phosphorus TPN total persulfate nitrogen TSP total soluble phosphorus P P phosphorus U PA Programmatic Agreement PDEA Preliminary Draft Environmental UMHO micro-ohms Assessment USFS U.S. Forest Service PETS Proposed, Endangered, Threatened USFWS U.S. Fish and Wildlife Service and Sensitive USGS U.S. Geological Service (1912 datum) pf power factor PIT Passive Integrated Transponder V PME protection, mitigation and V volts enhancement

PMF Probable Maximum Flood PMP Probable Maximum Precipitation W PNCA Pacific Northwest Coordination W watt Agreement WAC Washington Administrative Code ppb parts per billion WDA Washington Department of ppm parts per million Agriculture Project Rocky Reach Hydroelectric Project WDCTED Washington Department of psi pounds per square inch Community, Trade & Economic Development R WDOE Washington Department of Ecology WDF Washington Department of Fisheries RCW Revised Code of Washington WDFW Washington Department of Fish & Records & Information Management RIMS Wildlife System WDG Washington Department of Game RM River mile WDNR Washington Department of Natural Recreation Opportunity Spectrum ROS Resources RPA Forest and Rangeland Renewable WDOT Washington Department of Resources Planning Act Transportation RTE Rare, Threatened and Endangered WSPRC Washington State Parks & Recreation

Commission

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page ix SS/3959 Acronyms, Abbreviations & Definitions

WECC Western Electric Coordinating Council Y WSCC Western Systems Coordinating Council yd yard WNF Wenatchee National Forest WNHP Washington Natural Heritage Program Z WSRA Wild & Scenic Rivers Act Zn zinc

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page x June 30, 2004

INITIAL STATEMENT

Initial Statement

INITIAL STATEMENT

BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION

APPLICATION FOR NEW LICENSE FOR MAJOR PROJECT-EXISTING DAM

1.0 INITIAL STATEMENT 1. The Public Utility District No. 1 of Chelan County, Washington, (Chelan PUD) applies to the Federal Energy Regulatory Commission (FERC) for a new license for the Rocky Reach Hydroelectric Project (Project), FERC Project No. 2145.

2. The location of the Project is:

State: Washington County: Chelan, Douglas Township or Nearby Town: East Wenatchee, Washington Entiat, Washington Wenatchee, Washington Stream or other body of water: Columbia River

3. The exact name, business address and telephone number of the applicant are:

Public Utility District No. 1 of Chelan County 327 North Wenatchee Avenue Wenatchee, WA 98801 (509)663-8121

The exact name, business address and telephone number of each person authorized to act as agent for the applicant in this application:

Mr. Charles J. Hosken General Manager Public Utility District No. 1 of Chelan County 327 North Wenatchee Avenue Wenatchee, WA 98801 Phone: (509)663-8121 Fax: (509)664-2879

4. The applicant is a municipal corporation organized under the laws of the State of Washington, and is claiming preference under section 7(a) of the Federal Power Act (16 USC 796).

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-1 SS/3959 Initial Statement

5. (i) The statutory or regulatory requirements of the states in which the Project is located that affect the Project as proposed, with respect to bed and banks and to the appropriation, diversion and use of water for power purposes and with respect to the right to engage in the business of developing, transmitting and distributing power and in any other business necessary to accomplish the purposes of the license under the Federal Power Act, are presented in Table 1.

Table 1: Applicable Permits and Approvals Required by the State of Washington Statute or Permit or Agency Regulation Approval Status Washington Department Section 401 of Water Quality Request is being submitted concurrent of Ecology Federal Water Certification with filing the Final License Application Pollution Control Act with FERC Washington Office of Section 106 of the Approval of Request is being submitted concurrent Archaeology and National Historic Historic Properties with filing the Final License Application Historic Preservation Preservation Act and Cultural with FERC Resources Management Plan

(ii) The steps which the applicant has taken or plans to take to comply with each of the laws cited above are described below.

Water Quality Certification – Required under Section 401 of the Federal Water Pollution Control Act, commonly referred to as the Clean Water Act, to conduct any activity that may result in any discharge into surface waters. The applicant is applying for Section 401 Water Quality Certification concurrent with filing the Final License Application with FERC.

Cultural Resources Evaluation – An evaluation of potential project effects on historical, archaeological and cultural resources has been prepared for this Project pursuant to the requirements of 36 CFR Part 800. A Historic Properties and Cultural Resources Management Plan will be submitted to the Washington Office of Archaeology and Historic Preservation, National Advisory Council on Historic Preservation, Confederated Tribes of the Colville Reservation and the Yakama Nation.

6. The name and address of the owner of the existing Project facilities is:

Public Utility District No. 1 of Chelan County 327 North Wenatchee Avenue Wenatchee, WA 98801 (509)663-8121

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page 1-2 June 30, 2004 Initial Statement

STATEMENT OF APPLICANT IDENTITY AND POLITICAL SUBDIVISION INVOLVEMENT (§4.32(a))

1) Public Utility District No. 1 of Chelan County intends to maintain any proprietary rights necessary to operate and maintain the Rocky Reach Hydroelectric Project.

2) Names and mailing addresses:

(i) Every county in which any part of the Project is located and in which any federal facility that is used by the Project is located: Chelan County Board of Douglas County Board of Commissioners Commissioners Chelan County Courthouse P. O. Box 747 401 Washington Waterville, WA 98858 Wenatchee, WA 98801 (ii) Every city, town or similar local political subdivision: (A) In which any part of the Project is located and any federal facility that is used by the Project is located: Wendell Black, Mayor City of Entiat P. O. Box 228 Entiat, WA 98822 (B) That has a population of 5,000 or more people and is located within 15 miles of the Project dam: Dennis Johnson, Mayor Steve Lacy, Mayor City of Wenatchee City of East Wenatchee P. O. Box 519 271 Ninth Street NE Wenatchee, WA 98807 East Wenatchee, WA 98802 (iii) Every irrigation district, drainage district, or similar special purpose political subdivision: (A) In which any part of the Project is located and any federal facility that is used by the Project is located: William Gray, Manager Greg Brizendine, Manager U.S. Department of the Interior East Wenatchee Water District Bureau of Reclamation P. O. Box 7190 P. O. Box 815 East Wenatchee, WA 98802 Ephrata, WA 98823

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-3 SS/3959 Initial Statement

Gary Fischer, Manager Phyllis Griffith Greater Wenatchee Irrigation Entiat Irrigation District District 2800 Entiat Way 3300 SE Eighth Entiat, WA 98822 E Wenatchee, WA 98802 Ken Sweeney Sun Cove Water District P. O. Box 426 Manson, WA 98831 (B) That owns, operates, maintains, or uses any Project facility or any federal facility that is used by the Project: Bonnie Newman, Secretary Chelan Falls Irrigation District P. O. Box S Chelan, WA 98816 (iv) Every other political subdivision in the general area of the Project that there is reason to believe would be likely to be interested in, or affected by, the application: Michael J. Egge, Hydraulic Engineer Chuck Mellinger, Commander (OAN) U.S. Army Corps of Engineers U.S. Coast Guard, 13th Coast Guard P. O. Box 2870 District Portland, OR 97208-2870 915 Second Avenue, Room 3510 Seattle, WA 98174-1067 Alex Martinez, FERC Coordinator Dan Moses, Management Assistant U.S. Department of Agriculture U.S. Department of the Interior Forest Service National Park Service Wenatchee National Forest North Cascades National Park Service 215 Melody Lane Complex Wenatchee, WA 98801 428 West Woodin Chelan, WA 98816 Chuck James, Area Archaeologist Jim Fisher, Area Manager U.S. Department of Interior U.S. Department of the Interior Bureau of Indian Affairs Bureau of Land Management 911 NE Eleventh Avenue 915 Walla Walla Avenue Portland, OR 97232-4169 Wenatchee, WA 98801

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page 1-4 June 30, 2004 Initial Statement

Terence N. Martin, Team Leader Patricia S. Irle U.S. Department of the Interior Wenatchee Watershed Lead Office of Environmental Policy & Washington Department of Ecology Compliance Central Regional Office Natural Resources Management Water Quality Program Main Interior Building, MS 2340 15 W Yakima Avenue, Suite 200 1849 C Street, NW Yakima, WA 98902-3401 Washington, DC 20240 Bill Fraser, Parks Planner Fredrick M. Suter, Transportation Washington Department of Parks & Planner Recreation Commission Washington Department of Eastern Region Transportation 2201 N Duncan Drive North Central Region Wenatchee, WA 98801-1007 P. O. Box 98 Wenatchee, WA 98807 Jim Eychaner, Planner Bill Dobbins, Manager Washington State Interagency Public Utility District No. 1 of Committee for Outdoor Recreation Douglas County P. O. Box 40917 1151 Valley Mall Parkway Olympia, WA 98504-0917 E Wenatchee, WA 98802 Port District of Chelan County Port District of Douglas County P. O. Box 849 3306A Fifth Street SE Wenatchee, WA 98807 East Wenatchee, WA 98802 Jay Witherbee George Valison Mayor, City of Chelan Mayor, City of Cashmere 135 East Johnson Avenue 101 Woodring P. O. Box 1669 Cashmere, WA 98815 Chelan, WA 98816 Mel Myles Royal J. DeVaney Mayor, City of Leavenworth Mayor, City of Waterville P. O. Box 287 P. O. Box 580 Leavenworth, WA 98848 Waterville, WA 98858 Chuck Wolf, Chairman of Librarian Commissioners North Central Regional Library Chelan County Fire District No. 8 Entiat Branch 4491 Entiat River Road c/o City Hall Entiat, WA 98822 P. O. Box 228 Entiat, WA 98822

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-5 SS/3959 Initial Statement

Bernie and Ellie Peter Chelan County Cemetery District No. 1 (Entiat) 4852 Entiat River Road Entiat, WA 98822

(v) All Indian Tribes that may be interested or affected by the Project: Camille Pleasants Johnson Meninick Tribal Historic Preservation Officer Confederated Tribes and Bands of the Confederated Tribes of the Colville Yakama Nation Reservation P. O. Box 151 P. O. Box 150 Toppenish, WA 98948 Nespelem, WA 99155 Tribal Business Council Robert Heinith, Hydro Coordinator Confederated Tribes of the Umatilla Columbia River Inter-Tribal Fish Indian Reservation Commission P. O. 638 729 NE Oregon, Suite 200 Pendleton, OR 97801 Portland, OR 97232 Rex Buck Wanapum Band of Indians P. O. Box 164 Beverly, WA 99321-0164

3) N/A

4) Names and mailing addresses:

(ii) This application is executed in the State of Washington, County of Chelan by: Public Utility District No. 1 of Chelan County 327 North Wenatchee Avenue Wenatchee, WA 98801 (509)663-8121

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page 1-6 June 30, 2004 Initial Statement

The following exhibits are filed herewith under the FERC Regulations pursuant to Title 18 of the Code of Federal Regulations, Sections 4.51 and 16.10 (18 CFR 4.51 and 16.10) are hereby made a part of this application:

Exhibit A: Description of the Project Exhibit F: Project Drawings This section provides a general Design drawings have been designated description of the Project and the major Critical Energy Infrastructure Project components and equipment. Information and have been filed as such Exhibit B: Project Operations as a separate appendix to this license This section describes the current Project application. operation, including headwater and Exhibit G: Project Location Map and Project tailwater operational levels, and instream Boundary flow releases. Project maps have been filed as such as a Exhibit C: Construction History separate, “non-internet public” appendix This section provides a chronology for to this license application. the existing Project structures and Exhibit H: Supplemental Information features. This section provides additional Exhibit D: Statement of Costs and Financing information required by 18 CFR 16.10. This section describes existing Project Appendix A: Project Drawings costs and future costs. Project drawings filed as Critical Energy Exhibit E: Environmental Report Infrastructure Information. Replaced by Preliminary Draft Appendix B: Project Maps Environmental Assessment. Project maps filed as non-internet public.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-7 SS/3959

Initial Statement

CERTIFICATE OF SERVICES

I hereby certify that I have this day served the foregoing document upon all parties of record in this proceeding in accordance with the requirements of Section 385.2010(h) of the Rules of Practice and Procedure.

FEDERAL GOVERNMENT

Magalie Roman Salas, Secretary Patricia Leppert Federal Energy Regulatory Commission Federal Energy Regulatory Commission 888 First Street NE 888 First Street NE Washington DC 20426 Washington DC 20426

Paul Friedman Kim Nguyen, Project Manager Federal Energy Regulatory Commission Federal Energy Regulatory Commission 888 First Street NE 888 First Street NE Washington DC 20426 Washington DC 20426

Frank Winchell David Turner Federal Energy Regulatory Commission Federal Energy Regulatory Commission 888 First Street NE 888 First Street NE Route 2, Box 680 Washington DC 20426 Washington DC 20426 Carol Gleichman John Clements, Attorney Historic Preservation Specialist Federal Energy Regulatory Commission US Advisory Council on Historic 888 First Street NE Preservation Washington DC 20426 12136 W Bayaud Ave, Suite 330 Lakewood CO 80228 Robert Easton, Fisheries Biologist Federal Energy Regulatory Commission Alan Stanfill 888 First Street NE Historic Preservation Specialist Washington DC 20426 US Advisory Council on Historic Preservation Harry Hall, Regional Director 12136 W. Bayaud #330 Federal Energy Regulatory Commission Lakewood CO 80228 Portland Regional Office 101 SW Main Street, Suite 905 Michael J. Egge, Hydraulic Engineer Portland OR 97204 US Army Corps of Engineers P O Box 2870 Portland OR 97208-2870

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-9 SS/3959 Initial Statement

Olivia Romano Barbara Jackson Environmental Protection Specialist US Department of Agriculture US Army Corps of Engineers Forest Service, Wenatchee National Forest Regulatory Branch 215 Melody Lane PO Box 3755 Wenatchee WA 98801 4735 E Marginal Way South Seattle WA 98124-3755 Steve Johnson, FERC Coordinator US Department of Agriculture Walt Dortch Forest Service, Wenatchee National Forest US Department of Agriculture 215 Melody Lane Forest Service, Darrington Ranger District Wenatchee WA 98801 1405 Emmens Street Darrington WA 98241 Matt Karrer, Hydrologist US Department of Agriculture Carl Corey, Wildlife Biologist Forest Service, Wenatchee National Forest US Department of Agriculture 600 Sherbourne Forest Service, Mt. Hood National Forest Leavenworth WA 98826 16400 Champion Way Sandy OR 97055 Joe Kastenholz, District FERC Coordinator US Department of Agriculture Dean Grover, Fisheries Biologist Forest Service, Wenatchee National Forest US Department of Agriculture 428 W Woodin Ave Forest Service, Ochoco National Forest Chelan WA 98816-9724 3050 NE Third Street Prineville OR 97754 R. Alex Martinez, FERC Coordinator US Department of Agriculture Ardis Bynum Forest Service, Wenatchee National Forest US Department of Agriculture 215 Melody Lane Forest Service, RHAT Recreation Wenatchee WA 98801 24 W Chewuch Winthrop WA 98862 Karin Whitehall, Entiat District Ranger US Department of Agriculture Phil Archibald Forest Service, Wenatchee National Forest US Department of Agriculture P O Box 476 Forest Service, Wenatchee National Forest Entiat WA 98822 P O Box 476 Entiat WA 98822 Andrea L. Mann, Coordinator US Department of Agriculture Powys Gadd, Forest Archaeologist Natural Resource Conservation Service US Department of Agriculture Big Bend Resource Conservation Forest Service, Wenatchee National Forest Development 215 Melody Lane 2145 Basin St. SW, Suite B Wenatchee WA 98807-0811 Ephrata WA 98823-9451

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page 1-10 June 30, 2004 Initial Statement

Jocelyn Somers Bernard Burnham US Department of Agriculture US Department of the Interior Office of the General Counsel Bureau of Indian Affairs 1220 SW Third Avenue, Room 1734 911 NE Eleventh Avenue Portland OR 97204-2825 Portland OR 97232

Brian Brown Chuck James, Area Archaeologist Assistant Regional Administrator US Department of the Interior US Department of Commerce Bureau of Indian Affairs Natl Oceanic & Atmospheric Admin 911 NE Eleventh Avenue National Marine Fisheries Service Portland OR 97232-4169 525 NE Oregon St, Suite 500 Portland OR 97232-2778 Stan Speaks, Regional Director US Department of the Interior Richard Domingue Bureau of Indian Affairs US Department of Commerce Portland Area Office Natl Oceanic & Atmospheric Admin 911 NE Eleventh Avenue National Marine Fisheries Service Portland OR 97232-4128 525 NE Oregon St, Suite 410 Portland OR 97232-2778 Sharon Yepa, Superintendent US Department of the Interior Mark A. Eames Bureau of Indian Affairs US Department of Commerce Spokane Agency Natl Oceanic & Atmospheric Admin P O Box 389 National Marine Fisheries Service Wellpinit WA 99040 7600 Sand Point Way, NE, BIN C15700 Seattle WA 98115-6349 Jim Fisher, Area Manager US Department of the Interior Ritchie Graves Bureau of Land Management US Department of Commerce 915 Walla Walla Avenue Natl Oceanic & Atmospheric Admin Wenatchee WA 98801 National Marine Fisheries Service 525 NE Oregon St, Suite 500 Joe Kelly, Fish Biologist Portland OR 97232-2737 US Department of the Interior Bureau of Land Management Bryan Nordlund 915 Walla Walla Avenue Hydraulic Engineer, Hydro Program Wenatchee WA 98801 US Department of Commerce Natl Oceanic & Atmospheric Admin James B. Blanchard, Special Projects Officer National Marine Fisheries Service US Department of the Interior 525 NE Oregon St, Suite 500 Bureau of Reclamation Portland OR 97232-2737 P O Box 815 32 C Street NW Ephrata WA 98823

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-11 SS/3959 Initial Statement

Al Bolin, Electrical Engineer Dan Moses, Management Assistant US Department of the Interior US Department of the Interior Bureau of Reclamation National Park Service 1150 N Curtis, Suite 100 North Cascades National Park Service Boise ID 83706 Complex 428 W Woodin William Gray, Manager Chelan WA 98816-9724 US Department of the Interior Bureau of Reclamation William F. Paleck, Superintendent P O Box 815 US Department of the Interior Ephrata WA 98823 National Park Service North Cascades National Park Service Brian Cates, Fish & Wildlife Biologist Complex US Department of the Interior 810 Hwy 20 Fish & Wildlife Service Sedro-Woolley WA 98284-1799 12790 Fish Hatchery Rd Leavenworth WA 98826 Dan Haas US Department of the Interior Stephen Lewis National Park Service US Department of the Interior Pacific Northwest Region Fish & Wildlife Service 909 First Avenue 215 Melody Lane, Suite 119 Seattle WA 98104 Wenatchee WA 98801 Susan Rosebrough Mark Miller, Project Leader US Department of the Interior US Department of the Interior National Park Service Fish & Wildlife Service Pacific Northwest Region 215 Melody Lane, Suite 119 909 First Avenue Wenatchee WA 98801 Seattle WA 98104

Estyn Mead Terence N. Martin, Team Leader Energy & Power Coordinator US Department of the Interior US Department of the Interior Office of Environmental Policy & Fish & Wildlife Service Compliance Division of Habitat Conservation Natural Resources Management 911 NE Eleventh Avenue Main Interior Bldg, MS 2340 Portland OR 97232-4181 1849 C Street, NW Washington DC 20240 Ray Smith, Field Office Chief US Department of the Interior Preston Sleeger Geological Service Regional Environmental Officer Water Resources Division US Department of the Interior W 920 Riverside, Room 694 Office of the Environmental Project Review Spokane WA 99201 500 NE Multnomah St, Suite 356 Portland OR 97232-2036

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Peter Paquet Nolan Shishido Wildlife & Resident Fish Manager US Department of the Interior US Northwest Power Planning Council Office of the Solicitor 851 SW Sixth Ave, Suite 1100 500 NE Multnomah St, Suite 607 Portland OR 97204-1348 Portland OR 97232-2036 Alan Quan, Deputy Forest Supervisor State Director US Department of Agriculture US Department of the Interior Forest Service, Wenatchee National Forest Oregon State Bureau of Land Management 215 Melody Lane Lands & Minerals Adjudication, Section Wenatchee WA 98801 (OR-943.3) Attn: FERC Withdrawal Recordation Bob Sheehan P O Box 2965 US Department of Agriculture Portland OR 97208-2965 Forest Service, Wenatchee National Forest 428 W Woodin Ave Route 2, Box 680 Chelan WA 98816-9724

STATE of WASHINGTON

Sonia Wolfman, Assistant Attorney General Robert Whitlam, State Archaeologist Washington State Attorney General’s Office Washington State Department of P O Box 40100 Community, Trade & Economic 600 Capitol Way North Development Olympia WA 98504-0100 Archaeology & Historic Preservation Office 1063 S. Capitol Way Ste 106 Linda Crerar P O Box 48343, Olympia, WA 98504-8343 Policy Assistant, Natural Resources Olympia WA 98501 Washington State Department of Agriculture P O Box 42560 Howard Schwartz 1111 Washington St, 2nd Floor Senior Energy Policy Specialist Olympia WA 98504-2560 Washington State Department of Community, Trade & Economic Lee Faulconer Development Policy Assistant to the Director Energy Division Washington State Department of Agriculture 925 Plum Street SE, Bldg 4 P O Box 42560 P O Box 43173 1111 Washington St, 2nd Floor Olympia WA 98504-3173 Olympia WA 98504-2560 Derek Sandison, Regional Director Washington State Department of Ecology Central Regional Office 15 W Yakima Avenue, Suite 200 Yakima WA 98902

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John Vollmer, Hazard Mitigation Strategist Tom Tebb, Water Quality Regional Manager Washington State Department of Emergency Washington State Department of Ecology Management Division Central Regional Office Washington Military Department 15 W Yakima Avenue, Suite 200 Emergency Management Division Yakima WA 98902 Camp Murray WA 98430-5122

Patricia S. Irle, Wenatchee Watershed Lead Dennis Beich, Regional Director Washington State Department of Ecology Washington State Department of Fish & Central Regional Office Wildlife Water Quality Program 1550 Alder Street NW 15 W Yakima Ave, Suite 200 Ephrata WA 98823-9699 Yakima WA 98902-3401 Tony Eldred, Fish & Wildlife Biologist Brian Faller, Assistant Attorney General Washington State Department of Fish & Washington State Department of Ecology Wildlife Office of the Attorney General 608 S Elliott Avenue Ecology Division Wenatchee WA 98801 P O Box 40117 300 Desmond Drive SE Joe Foster, Regional Fish Program Manager Olympia WA 98504-0017 Washington State Department of Fish & Wildlife Chris Maynard 1550 Alder St NW Washington State Department of Ecology Ephrata WA 98823 Water Quality Program 300 Desmond Drive Ron Fox P O Box 47600 Washington State Department of Fish & Olympia WA 98504-7600 Wildlife 3860 Chelan Highway Brad Caldwell Wenatchee WA 98801 Washington State Department of Ecology Water Resources Program Policy Coordinator 300 Desmond Drive Washington State Department of Fish & P O Box 47600 Wildlife Olympia WA 98504-7600 1550 Alder Street NW Ephrata WA 98823-9699 Jeff Marti, Hydropower Coordinator Washington State Department of Ecology Mark Hallet, Wells Wildlife Area Manager Water Resources Program Washington State Department of Fish & 300 Desmond Drive Wildlife P O Box 47600 54 Moe Rd Olympia WA 98504-7600 Brewster WA 98812

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Brad James Rodney M. Woodin Washington State Department of Fish & Columbia River Policy Coordinator Wildlife Washington State Department of Fish & 600 Capitol Way North Wildlife Olympia WA 98504-0001 Intergovernmental Fisheries 600 Capitol Way North Chuck Johnson Olympia WA 98501-1091 Regional Fish Operations Manager Washington State Department of Fish & Tracy Lloyd Wildlife Regional Habitat Program Manager 1111 Washington St SE Washington State Department of Fish & 600 Capitol Way North, MS 43200 NRB Wildlife Olympia WA 98501-1091 Region No. 2 1550 Alder Street NW John Kerwin, Hatchery Division Manager Ephrata WA 98823-7669 Washington State Department of Fish & Wildlife Matt Monda 1111 Washington St SE Regional Wildlife Program Manager 600 Capitol Way North, MS 43200 NRB Washington State Department of Fish & Olympia WA 98501-1091 Wildlife Region No. 2 Beau Patterson 1550 Alder Street NW Washington State Department of Fish & Ephrata WA 98823-7669 Wildlife 3860 Chelan Highway Bill Koss Wenatchee WA 98801 Manager of Planning & Research Washington State Department of Parks & Rick Stilwater, Hatchery Complex Manager Recreation Commission Washington State Department of Fish & 7150 Cleanwater Lane Wildlife P O Box 42668 13246 Lincoln Rock Rd E Olympia WA 98504-2668 E Wenatchee WA 98802 Bill Fraser, Parks Planner William Tweit Washington State Department of Parks & Washington State Department of Fish & Recreation Commission Wildlife Eastern Region Intergovernmental Fisheries 2201 N Duncan Drive 600 Capitol Way North - NRB Wenatchee WA 98801-1007 Olympia WA 98501-1091

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Joe Sobinovsky Fredrick M. Suter, Transportation Planner Statewide Trails Coordinator Washington State Department of Washington State Parks and Recreation Transportation Commission North Central Region 7150 Cleanwater Lane P O Box 98 P O Box 42668 1551 North Wenatchee Avenue Olympia WA 98504-2668 Wenatchee WA 98807

Jim Harris, Region Manager Jim Eychaner, Planner Washington State Department of Parks & Washington State Interagency Committee Recreation Commission for Outdoor Recreation Eastern Region 1111 Washington St SE 2201 N Duncan Drive P O Box 40917 Wenatchee WA 98801-1007 Olympia WA 98504-0917

COUNTY, CITY and LOCAL

Chuck Wolf, Chairman Patrick Haley, Executive Director Chelan County Fire District No. 8 Port District of Douglas County 4491 Entiat River Road 3306A Fifth Street SE Entiat WA 98822 E Wenatchee WA 98802

Sarah Walker Susan Young, Secretary Entiat Watershed Co-Coordinator Chelan Falls, Community Council of Chelan, County of 851 First Street Conservation District P O Box 78 301 Yakima Street, Room 307 Chelan Falls WA 98817 Wenatchee WA 98801 Superintendent Mark Kulaas, Land Services Director Entiat School District Douglas County 2650 Entiat Way Department of Transportation & Land Entiat WA 98822 Services 470 Ninth St NE David Stalheim, Director E Wenatchee WA 98802 Community Development City of Wenatchee Mark Urdahl, Executive Director P O Box 519 Port District of Chelan County Wenatchee WA 98807 P O Box 849 Wenatchee WA 98807 Don McGahuey City of Wenatchee Public Works Department P O Box 519 Wenatchee WA 98807

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Phyllis Griffith, Secretary Bob Whitehall Entiat Irrigation District City of Entiat 2800 Entiat Way P O Box 228 Entiat WA 98822 Entiat WA 98822

Diane Grover, Secretary Dan Hodge, Executive Director Entiat School District Lake Chelan Chamber of Commerce 2650 Entiat Way PO Box 216 Entiat WA 98822 Chelan WA 98816

Susan Knipfer, Business Manager Richard Uhlhorn, Secretary Entiat School District Lake Chelan Recreation Association 2650 Entiat Way 315 E Woodin Avenue Entiat WA 98822 P O Box 402 Chelan WA 98816 Christine Mallon, Board Member Entiat School District Craig Larsen, Executive Director P O Box 261 Wenatchee Valley Chamber of Commerce Ardenvoir WA 98811 P O Box 850 Wenatchee WA 98807 Robert M. Todd Entiat Valley Chamber of Commerce Jim Busey, Superintendent Box 217 Lake Chelan School District Entiat WA 98822 P O Box 369 Chelan WA 98816 Wendell Black, Mayor City of Entiat P O Box 228 Entiat WA 98822

LOCAL ORGANIZATIONS AND INDIVIDUALS

Mike Chambers Frank Rains, Representative Entiat Focus Group Boating Club of Wenatchee P O Box 57 7405 Highway 97A Entiat WA 98822 Wenatchee WA 98801

John Huselton Loni Rahm Entiat Focus Group Cascade Loop PO Box 536 P O Box 3245 Entiat WA 98822 Wenatchee WA 98807

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Russ Griffith Entiat Landowners’ Association Bob Parlette P O Box 519 661-15 Wheeler Hill Rd Wenatchee WA 98807-0519 Wenatchee WA 98801

Keith Vradenburg Brian Ropp Entiat Landowners’ Association 864 N. Garden Plaza 13600 Davis Avenue E Wenatchee WA 98802 Entiat WA 98822 Randy Whitehall Jack Asher 6712 Entiat River Road 3841 River Road Entiat WA 98822 Entiat WA 98822 Ron Bruno Richard Logan Wenatchee Sportsman’s Association 1509 Woodhaven Pl 1725 N Aurora Wenatchee WA 98801 E Wenatchee WA 98802

TRIBES

Jennifer Frozena Columbia River Inter-Tribal Fish Steve Parker Commission Confederated Tribes and Bands of the 729 NE Oregon, Suite 200 Yakama Nation Portland OR 97232 P O Box 151 Toppenish WA 98948 Robert Heinith, Hydro Coordinator Columbia River Inter-Tribal Fish Johnson Meninick Commission Manager of Cultural Resources Program 729 NE Oregon, Suite 200 Confederated Tribes and Bands of the Portland OR 97232 Yakama Nation Cultural Resources Program Blaine Parker P O Box 151 Columbia River Inter-Tribal Fish 401 Fort Rd. Commission Toppenish WA 98948 729 NE Oregon, Suite 200 Portland OR 97232 Clifford Washines, Cultural Specialist Confederated Tribes and Bands of the Tim Weaver, Attorney Yakama Nation Confederated Tribes and Bands of the Cultural Resources Program Yakama Nation P O Box 151 Office of Legal Counsel Toppenish WA 98948 402 E Yakima Ave. Ste. 190 The Tower Yakima WA 98901

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Bob Rose Steve Judd Assistant Environmental Manager Confederated Tribes of the Colville Confederated Tribes and Bands of the Reservation Yakama Nation Fish & Wildlife Program Fisheries Resource Management P O Box 150 P O Box 151 Nespelem WA 99155 Toppenish WA 98948 Jerry Marco, Director Tom Scribner, Fisheries Biologist Confederated Tribes of the Colville Confederated Tribes and Bands of the Reservation Yakama Nation Fish & Wildlife Program Fisheries Resource Management P O Box 150 4067 NE 23rd Avenue Nespelem WA 99155 Portland OR 97212-1508 Guy Moura Paul Ward, Environmental Manager Confederated Tribes of the Colville Confederated Tribes and Bands of the Reservation Yakama Nation Historical & Archaeological Department Fisheries Resource Management P O Box 150 P O Box 151 Nespelem WA 99155 Toppenish WA 98948 Camille Pleasants Tracy Hames Interim Tribal Historic Preservation Officer Confederated Tribes and Bands of the Confederated Tribes of the Colville Yakama Nation Reservation Wildlife Resource Management Historical & Archaeological Department P O Box 151 PO Box 150 Toppenish WA 98948 Nespelem WA 99155

Tim Brewer, Attorney Monte D. Miller, Fisheries Biologist II Confederated Tribes of the Colville Confederated Tribes of the Colville Reservation Reservation P O Box 150 Lake Roosevelt Fisheries Evaluation Nespelem WA 99155 Program Fish & Wildlife Program Joseph A. Pakootas, Chairman P O Box 150 Confederated Tribes of the Colville Rural Route 1, Box 150 Reservation Nespelem WA 99155 Colville Business Council P O Box 150 Joe Peone, Director Nespelem WA 99155 Confederated Tribes of the Colville Reservation Natural Resources Department P O Box 150 Nespelem WA 99155

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Maureen Murphy, Wildlife Biologist Carl Merkle Confederated Tribes of the Colville Salmon Policy Analyst Reservation Confederated Tribes of the Umatilla Indian Tribal Fish & Wildlife Reservation P O Box 150 P O Box 638 Nespelem WA 99155 Pendleton OR 97801-0638

UTILITY REPRESENTATIVES

Greg Jones Colin Persichetti, Manager Parks & Recreation Coordinator Contract Administration Chelan County Public Utility District Pacificorp 327 N Wenatchee Avenue 825 NE Multnomah, Suite 600 P O Box 1231 Portland OR 97232 Wenatchee WA 98807 Angeline Chong Bob Clubb Project Manager, Power & Transmission Chief of Environmental & Regulatory Contracts Services Portland General Electric Douglas County Public Utility District 121 SW Salmon Street 1151 Valley Mall Parkway Portland OR 97204 E Wenatchee WA 98802 Julie Keil, Director of Hydro Relicensing Bill Dobbins, Manager Portland General Electric Douglas County Public Utility District 121 SW Salmon Street 1151 Valley Mall Parkway Portland OR 97204 E Wenatchee WA 98802 Stephen Muchlinski Ken Pflueger Power Resource Engineer Chief Engineer, Wells Project Puget Sound Energy Douglas County Public Utility District P O Box 97034, OBC-14E 1151 Valley Mall Parkway Bellevue WA 98009-9734 E Wenatchee WA 98802 Cary Feldman, Asset Manager Linda Jones, Manager Puget Sound Energy, Inc. Natural Resources & Regulatory Affairs P O Box 97034, OBC-14N Grant County Public Utility District Bellevue WA 98009-9734 P O Box 878 Ephrata WA 98823 Gerald Cormick and Brian Cormick CSE Group 15629 Cascadian Way Mill Creek WA 98012

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Craig Gannett Curt Smitch Davis Wright Tremaine LLP Thompson Consulting 2600 Century Square 4041 Ruston Way, Suite 1-C 1501 Fourth Avenue Tacoma WA 98402 Seattle WA 98101

DIRECT SERVICE INDUSTRIES

Robert D. Huber Jack Speer, Energy Manager Alcoa Inc. Alcoa Inc. 6200 Malaga Alcoa Highway 6200 Malaga Alcoa Highway Malaga WA 98828-9728 Malaga WA 98828-9728

NON-GOVERNMENTAL ORGANIZATIONS (NGOs)

Brett Swift Sierra Club American Rivers Northwest Field Office 320 SW Stark, Suite 418 180 Nickerson St, Suite 103 Portland OR 97204-2634 Seattle WA 98109

John Gangemi Joe Maroney American Whitewater Affiliation Eastern Wa Vice President 482 Electric Avenue Trout Unlimited Bigfork MT 59911-3641 PO Box 39 Usk WA 99180 Tracy Manning Mule Deer Foundation Scott Yates 1250 6th Pl. NE Trout Unlimited East Wenatchee WA 98802 213 SW Ashe, Suite 211 Portland OR 97204 Alison Mielke Sierra Club Jan Carpenter, President Cascade Chapter Trout Unlimited 180 Nickerson St., Suite 202 Icicle Valley Chapter Seattle WA 98109 8158 E Leavenworth Road Leavenworth WA 98826 Chase Davis NW Field Representative Bill Robinson, Executive Director Sierra Club Trout Unlimited Inland NW Office NW Steelhead & Salmon Council 10 N Post Street Suite 447 2401 Bristol Ct SW, Suite A-18 Spokane WA 99201 Olympia WA 98502

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 1-21 SS/3959 Initial Statement

Dated this ______day of June, 2004.

______Gregg Carrington, Director of Licensing Public Utility District No. 1 of Chelan County

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Table of Contents

TABLE OF CONTENTS

EXECUTIVE SUMMARY...... 2-1

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Executive Summary

2.0 EXECUTIVE SUMMARY

2.1 INTRODUCTION The Federal Energy Regulatory Commission (FERC), under the authority of the Federal Power Act (FPA), may issue licenses for up to 50 years for the construction, operation, and maintenance of non-federal hydroelectric developments. Public Utility District No. 1 of Chelan County (Chelan PUD) is hereby applying for a new 50-year license for the Rocky Reach Hydroelectric Project, FERC No. 2145 (Project). The Rocky Reach Hydroelectric Project is a major power project with an installed capacity of 1,237.4 megawatts (MW) and is currently operating under a license issued by the Federal Power Commission (FERC’s predecessor) on July 11, 1957, that was made effective as of July 1, 1956. That license expires on June 30, 2006. Chelan PUD intends to continue to operate and maintain the Rocky Reach Hydroelectric Project, which is located approximately seven miles north of Wenatchee, Chelan County, Washington.

Chelan PUD received approval from FERC on October 25, 1999, to use the alternative licensing process for the Project, as allowed under the Code of Federal Regulations 18 CFR 4.34(i). The alternative licensing process used by Chelan PUD has expedited the licensing process by combining the pre-filing consultation and environmental review processes into a single process, and by improving and facilitating communications among the participants in the licensing process.

As part of the consultation process (18 CFR 4.34(i)), Chelan PUD prepared an Initial Consultation Document (ICD) dated July 7, 1999. The ICD contains a detailed description of Rocky Reach Hydroelectric Project features and operating measures and describes the surrounding environment and resources affected by Project operations.

2.2 CHELAN PUD Chelan PUD is a municipal corporation under Washington law. This means that all the citizens of the community have a stake in the electric utility. It also means that citizens have an opportunity to participate in making decisions about Chelan PUD’s energy future, thereby reflecting local needs and values.

Established in 1936, Chelan PUD has been a strong advocate of local ownership and operation of the County’s resources. As a result, Chelan PUD has acquired, through purchase and development, the second largest non-federal publicly-owned hydroelectric generating system in the country. Chelan PUD’s three hydroelectric generating projects, Lake Chelan Hydroelectric Project (FERC Project No. 637), Rocky Reach Hydroelectric Project (FERC Project No. 2145) and Rock Island Hydroelectric Project (FERC Project No. 943), generate a combined total of about 11 billion kilowatt hours of power every year. The hydroelectric projects provide clean, renewable and affordable power that benefits the economy of Chelan County and the Pacific Northwest. Chelan PUD uses 36 percent of its total generating capacity to meet the electricity needs of its Chelan County customers, including a portion of the Alcoa Inc., Wenatchee smelter.

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Approximately 64 percent of the power generated by Chelan PUD is conducted to other areas of the Pacific Northwest over a 16,000 mile grid of high voltage transmission lines to five power purchasers: Puget Sound Energy, Avista Corp., PacifiCorp, Douglas PUD and Portland General Electric Company. The transmission lines are not owned by Chelan PUD and are not part of the FERC-licensed Project.

2.3 THE ROCKY REACH HYDROELECTRIC PROJECT The Rocky Reach Hydroelectric Project is the largest of Chelan PUD’s three FERC-licensed hydroelectric projects. The Project is located on the Columbia River in Chelan County, Washington, approximately seven miles upstream of the city of Wenatchee, Washington. The Project utilizes the waters of the Columbia River, whose drainage basin extends over substantial portions of northern Washington, Idaho, Montana and into Canada.

The Rocky Reach Hydroelectric Project impounds 43 river miles and has a surface area of 8,235 acres at the normal maximum pool elevation of 707 feet above mean sea level (MSL).1 The Project consists of a dam, which incorporates a spillway, powerhouse and non-overflow structures, as well as power transmission, fish passage and visitor facilities. The spillway consists of 12 spillway gates with a combined hydraulic capacity of 980 kcfs. The powerhouse contains eleven generating units. With completion of a micro-turbine, authorized in 2002, the Project’s total installed capacity will be 1,237.4 MW.

Construction of the dam and original powerhouse began on October 2, 1956. The original powerhouse had seven generating units. Beginning in 1969, four more units were added to make use of stored water released from reservoirs in Canada and the Libby Dam reservoir in Montana.

In April 2003, Chelan PUD began operating of a juvenile fish bypass system that guides migrating fish before they enter the powerhouse and diverts them downstream past the dam. The bypass system is a key component of Habitat Conservation Plans (HCPs) signed by Chelan PUD, the National Marine Fisheries Service (now NOAA Fisheries), U.S. Fish and Wildlife Service (USFWS), Washington Department of Fish and Wildlife (WDFW), and the Confederated Tribes of the Colville Reservation.

A detailed description of Project facilities is provided in Exhibit A.

2.4 RESERVOIR OPERATIONS Chelan PUD operates the Rocky Reach Hydroelectric Project to optimize use of the water resources of the Columbia River to produce electric energy while meeting flood control, environmental and other needs. The Project is a run-of-river facility. The reservoir formed by the Project extends upstream 43 miles to the Public Utility District No. 1 of Douglas County’s (Douglas PUD) Wells Hydroelectric Project dam (FERC No. 2149).

1 All elevations in this document are referenced to the National Geodetic Vertical Datum of 1929.

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Inflow to the Project comes primarily from upstream storage releases from the Grand Coulee Hydroelectric Project which, in turn, passes through Chief Joseph and Wells hydroelectric projects before reaching Rocky Reach Hydroelectric Project. Releases from the Grand Coulee Hydroelectric Project are governed by the Pacific Northwest Coordination Agreement (PNCA). All generating utilities in the Northwest, with the exception of Idaho Power Company, are parties to the PNCA. The PNCA, in conjunction with the Canadian Treaty of 1964, provides a plan for optimizing water releases to meet power and non-power requirements on a seasonal basis. During flood conditions, the U.S. Army Corps of Engineers sets discharge requirements from upstream storage projects to minimize flood effects on all parts of the Columbia River system. With the available upstream storage, flooding can typically be held well below the level of natural, unregulated flow for similar flood events.

Chelan PUD is also a signatory to the Mid-Columbia Hourly Coordination Agreement, along with Douglas PUD, Public Utility District No. 2 of Grant County (Grant PUD) and the Bonneville Power Administration (BPA). Under the terms of this agreement, the five non- federal projects on the Columbia River (Rock Island, Rocky Reach, Priest Rapids, Wanapum and Wells), as well as the Grand Coulee and Chief Joseph federal projects, are operated in a coordinated manner to optimize water use through this stretch of the Columbia River.

In accordance with the existing FERC license, the Rocky Reach Hydroelectric Project reservoir is operated with a normal maximum headwater elevation of 707 feet. The minimum headwater level is 703 feet and the maximum headwater level, used for passage of flood flows, is elevation 710 feet.

Although the Rocky Reach Hydroelectric Project has existing reservoir capacity (usable storage of 36,400 acre-feet between headwater elevations 707 feet and 703 feet), actual reservoir drawdowns are avoided if possible because of the lower operating head and reduced overall efficiency. The Mid-Columbia Hourly Coordination Agreement facilitates maintaining the reservoirs at or near their full levels. Water levels in the upper reaches of the reservoir are controlled by releases from the Wells Hydroelectric Project.

Operation of the Rocky Reach Hydroelectric Project is automated, including decisions to start, stop and adjust the output of the 11 generating units to achieve maximum efficiency. The Project’s automated functions are backed up with around-the-clock, on-duty plant operators who monitor operations and can over-ride computer control if needed.

Spillway releases to pass water in excess of turbine capability for load requirements, or for fish passage, are also controlled by computer. When the headwater level exceeds operator-set maximum points, gates are automatically opened to pass the excess flow. During fish passage operations, the sequence and amounts of gate opening can also be adjusted to maximize the effectiveness of the water being spilled.

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2.5 ROCKY REACH HYDROELECTRIC RESERVOIR The Rocky Reach Hydroelectric Project reservoir extends 43 miles upriver to the Wells Hydroelectric Project dam. The water level is not constant throughout the reservoir, but increases measurably from Rocky Reach dam to Wells dam. As an example, with a headwater elevation at Rocky Reach Hydroelectric Project of elevation 707 feet and a flow of 100,000 cfs, the water surface elevation at Wells Hydroelectric Project dam is approximately 4 feet higher, or elevation 711 feet.

2.6 ROCKY REACH HYDROELECTRIC PROJECT HISTORY The Project site was recognized for its hydroelectric potential long before the Project was built. The U.S. Army Corps of Engineers provided the first consideration for development of the site in 1934. During the 1950s, the site became the focus of extensive studies by Chelan PUD, including site investigations and mapping, assessment of impacts to the surrounding area, preliminary design, and cost estimates.

Chelan PUD received a preliminary permit for the Project from the Federal Power Commission (now the FERC) on August 10, 1954. An application to construct and operate the dam was filed with the same agency on January 13, 1956. The Federal Power Commission issued a license to build the Project six months later. This 50-year license expires on June 30, 2006.

Development of the Project occurred over a period of about 15 years. Construction of the dam and original powerhouse, with seven generating units, commenced in October 1956. The addition of four more units began in 1969 after ratification of the Columbia River Treaty between the United States and Canada. The additional units were installed primarily to make use of stored water released from reservoirs in Canada and the Libby Dam reservoir in Montana.

The first construction task was installation of cofferdams during low water to seal off the area selected for the spillway from the river flow. Following spillway construction, the powerhouse was built. A total of 3.3 million cubic yards of soil and rock were moved during the five-year initial construction period. Peak employment of 2,184 occurred during the month of July 1959. The initial seven generating units were placed in commercial operation on November 1, 1961, six months ahead of schedule.

On September 1, 1966, Chelan PUD filed an application with the Federal Power Commission to amend the Project license for the addition of four generating units. The Federal Power Commission issued the license amendment on May 23, 1968. The second phase of construction began on April 22, 1969, and was completed on December 1, 1971. The expansion work increased the Project’s generating capacity by about 60 percent.

In April 2002, the FERC amended the Project license to authorize Chelan PUD to construct a juvenile fish bypass system. The bypass system consists of four major components: a surface collection system, generating unit intake screens at units 1 and 2, a bypass channel, and a juvenile sampling facility. The permanent system, which replaced a prototype, became operational in April 2003, prior to the juvenile migration period. The system is a major step in Chelan PUD’s

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long-term effort to improve survival of juvenile anadromous fish as part of the HCP developed for the Rocky Reach Hydroelectric Project.

2.7 CHELAN PUD’S RELICENSING PROCESS The consultation process being used by Chelan PUD has followed the requirements specified in 18 CFR 4.38 and 18 CFR 16.8. The contents of the license application follow the requirements specified in 18 CFR 4.51. Chelan PUD applied to use the alternative licensing process (ALP) on July 19, 1999, and received approval from FERC on October 25, 1999. The ALP has expedited the licensing process by combining the pre-filing consultation and environmental review processes into a single process, and by improving and facilitating communications among the participants in the licensing process.

Chelan PUD began the relicensing process for the Rocky Reach Hydroelectric Project in early 1999 by conducting surveys of interested parties to identify contacts and information needs. Working with interested parties, Chelan PUD also formed a communications plan and protocol. In general, interested parties (or stakeholders) included federal, state and local resource agencies, tribes, non-governmental organizations, local businesses, the general public, and the FERC. The communications plan and communications protocol were developed to assure that effective and coordinated two-way information sharing mechanisms were in place for all interested parties during the relicensing process.

The ALP provided an opportunity for all interested parties to become involved early in the process of identifying required studies and ongoing Project-related impacts. The process also allowed for the discussion and development of protection, mitigation and enhancement (PME) proposals among interested parties and Chelan PUD. A detailed description of the consultation process and proposed PME measures are provided in the final Preliminary Draft Environmental Assessment (PDEA) submitted with this application.

2.8 CHELAN PUD’S ANADROMOUS FISH AGREEMENT AND HABITAT CONSERVATION PLAN FOR THE ROCKY REACH HYDROELECTRIC PROJECT In 2002, Chelan PUD signed an HCP for the Rocky Reach Hydroelectric Project. The HCP is a 50-year agreement to protect five species of Columbia River steelhead and salmon by implementing a combination of fish bypass systems, spill, off-site hatchery programs and evaluations, and habitat restoration work conducted in mid-Columbia tributary streams. Signatories include Chelan PUD, USFWS, NOAA Fisheries, the WDFW and the Confederated Tribes of the Colville Indian Reservation.

On November 24, 2003, Chelan PUD filed the HCP with FERC as an amendment to be incorporated in the current Project license as a settlement of the Rocky Reach portion for the Mid-Columbia Proceeding.2 The HCP amendment is currently undergoing regulatory review in

2 See Public Utility District of Grant County, Washington, et al., Docket Nos. P-2114-003, et al.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 2-5 SS/3959 Executive Summary this amendment proceeding.3 Chelan PUD is also requesting that FERC incorporate the HCP amendment into the new license for the Project. A copy of the HCP is attached as an appendix to the PDEA being filed concurrently with this license application.

2.9 THE ROCKY REACH HYDROELECTRIC PROJECT LICENSE APPLICATION—ITS CONTENT AND PURPOSE This license application contains a detailed description of the Rocky Reach Hydroelectric Project and how it is operated. It is divided into eight major sections, referred to as Exhibits.

Exhibit A describes the Project’s features. Exhibit B describes the Project’s operations. Exhibit C contains the Project’s construction history. Exhibit D contains the Project’s economic information. Exhibit E not required (See PDEA). Exhibit F contains project drawings. (Design drawings have been designated Critical Energy Infrastructure Information and have been filed as such as a separate appendix to this license application.) Exhibit G contains the location map and boundary information. (Project maps have been filed as such as a separate, “non-internet public” appendix to this license application.) Exhibit H contains supplemental information about Chelan PUD and the Project. Appendix A contains Project drawings filed as Critical Energy Infrastructure Information. Appendix B contains Project maps filed as non-internet public.

The purpose of this license application is to provide a description of the Project and its operation.

3 Application for Approval of the Rocky Reach Anadromous Fish Agreement and Habitat Conservation Plan as an Offer of Settlement and Adoption as an Amendment of License (FERC No. 2145). See P-2145-057.

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Table of Contents

TABLE OF CONTENTS

INTRODUCTION...... 3-1

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 3-i SS/3959

Introduction

3.0 INTRODUCTION

3.1 BACKGROUND The Public Utility District No. 1 of Chelan County, Washington, (Chelan PUD) is seeking a new license for the existing Rocky Reach Hydroelectric Project (Project) with the Federal Energy Regulatory Commission (FERC). The Rocky Reach Hydroelectric Project is operated under the authority of the FERC in accordance with the existing FERC license that expires June 30, 2006. The Project is licensed as FERC Project No. 2145.

Chelan PUD has received approval from the FERC to employ the alternative licensing process for the Rocky Reach Hydroelectric Project, as allowed under the Code of Federal Regulations 18 CFR 4.34(i). The alternative licensing process followed by Chelan PUD combines the pre- filing consultation and environmental review processes into a single process. Chelan PUD is issuing the Preliminary Draft Environmental Assessment (PDEA) simultaneously with this license application. The PDEA is designed to satisfy requirements of the National Environmental Policy Act (NEPA) as allowed under the provisions of the National Energy Policy Act of 1992 (NEPAct).

The PDEA describes the existing environment, the consultation process, ongoing Project-related impacts and proposed measures to address those impacts. The license application contains detailed and in-depth information on the existing Project facilities and current mode of operation. For the Rocky Reach Hydroelectric Project relicensing, the license application is primarily a reference document designed to support the PDEA.

After FERC has determined that this license application is ready for environmental analysis, it will solicit comment. Written comments on the license application should be submitted to:

Ms. Magalie Roman Salas Office of the Secretary Federal Energy Regulatory Commission 888 First Street NE Washington DC 20426

3.2 ROCKY REACH HYDROELECTRIC PROJECT OVERVIEW Chelan PUD owns and operates the Rocky Reach Hydroelectric Project located on the Columbia River in Chelan County, Washington, approximately seven miles upstream of the city of Wenatchee, Washington. The Project utilizes the waters of the Columbia River, whose drainage basin extends over substantial portions of northern Washington, Idaho, Montana and into Canada.

The Project consists of a dam, which incorporates a spillway, powerhouse, and non-overflow structures, as well as power transmission, fish passage and visitor facilities. The Project

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 3-1 SS/3959 Introduction powerhouse contains 11 generators, of which seven are rated at 111,150 kW each (though these are turbine limited to 105,000 kW each) and four are rated at 125,400 kW each, all at a 0.95 power factor (pf). Completion of a micro-turbine, authorized in 2002, will bring the total installed capacity of the Project to 1,237.4 MW.

The reservoir formed by the Project dam extends upstream 43 miles, past Chelan Falls to Public Utility District No. 1 of Douglas County’s (Douglas PUD) Wells Hydroelectric Project dam (FERC No. 2149). Elevations of the Rocky Reach Hydroelectric Project reservoir establish the tailwater levels for the Lake Chelan and Wells Hydroelectric projects.

A detailed description of the Project facilities is provided in Exhibit A.

3.3 ROCKY REACH HYDROELECTRIC PROJECT OPERATIONS Chelan PUD operates the Rocky Reach Hydroelectric Project to optimize use of the water resources of the Columbia River to produce electric energy while meeting flood control, environmental and other needs. Chelan PUD proposes to continue its historical operating policy for the Project, with changes that result from consultation with interested parties during the development of the Project Habitat Conservation Plan (HCP) and relicensing process.

Chelan PUD is a signatory to the Mid-Columbia Hourly Coordination Agreement, and operation of the Project is governed by this coordinated operational plan. Due to the relatively small storage volume, the Rocky Reach Hydroelectric Project is operated as a run-of-river project. The available flow is used for power generation, with full consideration for flood control, irrigation, recreation, municipal and domestic water supplies, fish and wildlife conservation, and other beneficial uses. In accordance with the existing FERC license, the Project reservoir is operated with a normal maximum headwater elevation of 707 feet. The minimum headwater level is elevation 703 feet and the maximum headwater level, used for passage of flood flows, is elevation 710 feet. The Project is and will continue to be operated in accordance with all applicable FERC license requirements and the applicable laws of the State of Washington.

A detailed description of Project operations is provided in Exhibit B.

3.4 THE EXISTING FEDERAL LICENSE The existing 50-year Rocky Reach Hydroelectric Project license was issued by the Federal Power Commission, FERC’s predecessor, on July 11, 1957, made retroactive to July 1, 1956, and will remain in effect until June 30, 2006.

3.5 CURRENT FERC REGULATIONS Under the authority of the Federal Power Act (FPA), FERC has the responsibility of issuing licenses for non-federal hydroelectric projects. Other federal laws that affect the relicensing process include the National Environmental Policy Act (NEPA), the Fish and Wildlife Coordination Act, the National Historic Preservation Act, the Endangered Species Act (ESA),

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the Clean Water Act (CWA), the Federal Land Policy Management Act (FLPMA) and the Wild & Scenic Rivers Act (WSRA).

The Electric Consumer’s Protection Act (ECPA) brought significant new requirements to the process of relicensing hydroelectric projects. The FERC was mandated to give equal consideration to the enhancement of existing environmental, recreation, fish, and wildlife resources affected by the project, to that of power and development resources, and to balance what are often competing uses of the water resources. ECPA also empowers the FERC to consider if a project is consistent with federal and state comprehensive plans.

The FERC regulations governing the relicensing of hydroelectric projects are contained in 18 CFR 16.

3.6 ALTERNATIVE RELICENSING PROCESS As noted earlier, the FERC issued a rulemaking in October 1997 allowing licensees to pursue alternative relicensing processes. The goals of these alternative processes are to:

• combine into a single process the pre-filing consultation process, the environmental review process under NEPA and administrative processes associated with the CWA and other statutes; • facilitate greater participation, by and improve communication among, the applicant, resource agencies, Indian tribes, the public, and FERC staff in a flexible pre-filing consultation process tailored to the circumstances of each case; • provide guidance to applicants wishing to employ the provisions of the NEPAct that allow for the preparation of a Preliminary Draft Environmental Assessment (PDEA) by an applicant or its contractor or consultant, or of an Environmental Impact Statement (EIS) by a contractor or consultant chosen by the FERC and funded by the applicant; • promote cooperative efforts by the applicant and interested entities and encourage them to share information about resource impacts and mitigation and enhancement proposals; • to narrow any areas of disagreement and reach settlement of the issues raised by the interested parties; and • facilitate an orderly and expeditious review by the FERC of an agreement or offer of settlement of an application for a hydropower license, exemption or amendment to a license.

Alternative relicensing processes typically expand the minimum requirements of the traditional three-stage consultation process and often include the preparation of an applicant-prepared environmental assessment or third-party environmental impact statement (EIS) document as part of the consultation process. Some alternative processes currently underway are also seeking settlement of issues while not electing to prepare NEPA documents during consultation and deferring this aspect of relicensing to FERC.

Chelan PUD has elected to follow the alternative approach in relicensing the Rocky Reach Hydroelectric Project and has proposed preparing a PDEA in close consultation with all interested parties. In addition, a communications protocol was issued and supported by interested

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page 3-3 SS/3959 Introduction parties and submitted to FERC in June/July 1999. The communications protocol describes how Chelan PUD continues to communicate, document and distribute information related to the relicensing process among interested parties and other participants in the pre-filing consultation process, including the FERC staff.

Chelan PUD has conducted the work required to relicense the Project based on the following objectives:

• Chelan PUD adhered to the FERC regulations and timelines. • Chelan PUD prepared a license application and PDEA that are technically sound and provide a reasonable balance between power and non-power values. • Chelan PUD considered the impacts of relicensing on the Project’s ability to provide low-cost power in light of electric industry deregulation and competitive pressures. • Chelan PUD investigated ways to further develop and maximize the efficient and economic use of the available hydrologic resources for power generation purposes pursuant to FERC requirements. • Chelan PUD emphasized compatibility with federal and state resource goals and plans. • Chelan PUD considered opinions and comments from interested parties and included these in the decision-making process for the Rocky Reach Hydroelectric Project relicensing. • Chelan PUD is seeking a settlement agreement with interested parties.

3.7 PARTICIPANTS IN THE RELICENSING PROCESS Various state and federal resource agencies, Indian tribes, local government agencies and non- government organizations have participated in the relicensing of the Project. A current listing of stakeholders or interested parties is available on the Rocky Reach Hydroelectric Project Relicensing Web site at http://www.chelanpud.org or by contacting the Licensing Department, Chelan PUD, Post Office Box 1231, Wenatchee, Washington 98807-1231, (509)663-8121.

3.8 THE RELICENSING TIMELINE Milestone dates for the relicensing of the Project include:

Summer 1999...... Conducted baseline studies July 7, 1999...... Chelan PUD issueed the Initial Consultation Document (ICD) August 26, 1999...... Informational meeting to discuss ICD October 26, 1999.....Comments on ICD due from interested parties November 4, 1999...Chelan PUD issued review copy of Scoping Document 1 (SD1) December 16, 1999 .Informal National Environmental Policy Act (NEPA) scoping meeting February 1, 2000 .....Chelan PUD issued SD1 March 23, 2000 ...... Formal NEPA scoping meeting April 1, 2000 ...... Comments on SD1 due from interested parties July 7, 2000...... Chelan PUD issued SD2 August 7, 2000...... Comments on SD2 due from interested parties

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Summer 2000...... Conducted studies Summer 2001...... Conducted studies Summer 2002...... Conducted studies Fall 2002 ...... Completed studies and developed preliminary protection, mitigation and enhancement proposals January 26, 2003 .....First Draft License Application and Preliminary Draft Environmental Assessment issued March 27, 2003 ...... Comments on first drafts of PDEA/License Application due from interested parties October 21, 2003.....Second Draft Preliminary Draft Environmental Assessment issued December 22, 2003 .Comments on second draft of PDEA due from interested parties June 30, 2004 ...... Final License Application and Final Preliminary Draft Environmental Assessment filed Via FERC...... Comments due 60-days after FERC’s submits its order that the application is accepted for filing June 2006 ...... FERC issues new license or annual license

3.9 ORGANIZATION OF THE LICENSE APPLICATION The license application is organized into the following sections:

Exhibit A: Description of the Project Exhibit F: Project Drawings This section provides a general Design drawings have been designated description of the Project and the major Critical Energy Infrastructure Project components and equipment. Information and have been filed as such Exhibit B: Project Operations as a separate appendix to this license This section describes the current Project application. operation, including headwater and Exhibit G: Project Location Map and Project tailwater operational levels, and instream Boundary flow releases. Project maps have been filed as such as a Exhibit C: Construction History separate, “non-internet public” appendix This section provides a chronology for to this license application. the existing Project structures and Exhibit H: Supplemental Information features. This section provides additional Exhibit D: Statement of Costs and Financing information required by 18 CFR 16.10. This section describes existing Project Appendix A: Project Drawings costs and future costs. Project drawings filed as Critical Energy Exhibit E: Environmental Report Infrastructure Information. Replaced by PDEA. Appendix B: Project Maps Project maps filed as non-internet public.

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EXHIBIT A: DESCRIPTION OF THE ROCKY REACH HYDROELECTRIC PROJECT

Table of Contents

TABLE OF CONTENTS

EXHIBIT A: DESCRIPTION OF THE ROCKY REACH HYDROELECTRIC PROJECT ...... A-1

A1.0 Overview of the Rocky Reach Hydroelectric Project...... A-1 A1.1 Relationship of the Rocky Reach Hydroelectric Project to Chelan PUD’s System...... A-1 A1.2 Major Components...... A-2 A1.3 Rocky Reach Hydroelectric Project Lands ...... A-2

A2.0 Detailed Description ...... A-4 A2.1 Structures ...... A-4 A2.2 Reservoir...... A-10 A2.3 Turbines/Generators...... A-11 A2.4 Transmission Lines ...... A-14 A2.5 Switchgear...... A-14 A2.6 Additional Mechanical, Electrical, and Transmission Equipment Appurtenant to the Rocky Reach Hydroelectric Project ...... A-15 A2.7 Lands of the United States ...... A-15

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LIST OF TABLES

Table A-1: Dam Features...... A-4 Table A-2: Spillway Features ...... A-5 Table A-3: Powerhouse Features...... A-6 Table A-4: Non-Overflow Section Features ...... A-7 Table A-5: Fish Passage Facilities Features...... A-8 Table A-6: Recreation Facilities...... A-9 Table A-7: Public Safety Features ...... A-9 Table A-8: Reservoir Features...... A-11 Table A-9: Turbine/Generator Features...... A-13 Table A-10: Switchgear Features...... A-15

LIST OF FIGURES

Figure A-1: Rocky Reach Hydroelectric Project Reservoir Area-Capacity Curve ...... A-11

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A1.0 OVERVIEW OF THE ROCKY REACH HYDROELECTRIC PROJECT

The Public Utility District No. 1 of Chelan County, Washington, (Chelan PUD) owns and operates the Rocky Reach Hydroelectric Project (Project), located on the Columbia River in Chelan County, Washington, approximately seven miles upstream of the city of Wenatchee, Washington. The dam is 215 river miles below the Canadian border and 474 river miles above the mouth of the Columbia River at Astoria, Oregon.

The Project consists of a dam, which incorporates a spillway, powerhouse and non-overflow structures, as well as power transmission, fish passage and visitor facilities. The powerhouse contains 11 generating units. The first seven generating units began producing power in 1961. In 1968, the Federal Power Commission, later the Federal Energy Regulatory Commission (FERC), issued a license amendment for the addition of four generating units, which increased the power plant’s generating capacity to 1,213.2 megawatts (MW). In 1995, FERC revised the installed capacity to 1,236.6 MW after Units C-1 through C-7 were rewound. In 2002, FERC again revised the installed capacity to 1,237.4 MW by authorizing installation of a micro-turbine.

The reservoir formed by Rocky Reach Hydroelectric Project dam extends upstream 43 miles, past Chelan Falls to Douglas PUD’s Wells Hydroelectric Project dam (FERC No. 2149). Elevations of the Rocky Reach Hydroelectric Project reservoir establish the tailwater levels for the Lake Chelan and Wells Hydroelectric projects.

A1.1 RELATIONSHIP OF THE ROCKY REACH HYDROELECTRIC PROJECT TO CHELAN PUD’S SYSTEM The Project has the greatest installed capacity (1,237.4 MW) of the three hydroelectric projects owned and operated by Chelan PUD. The other two projects are 1) the Rock Island Hydroelectric Project, located about 22 miles downstream of the Rocky Reach Hydroelectric Project; and, 2) the Lake Chelan Hydroelectric Project, located at the lower end of Lake Chelan, about 30 miles north of Wenatchee, Washington.

The Rock Island Hydroelectric Project (FERC No. 943) consists of two powerhouses and 19 generating units, with a combined installed capacity of 623.2 MW. Development of the dam, first powerhouse and four operating units began in 1930 and was completed in 1933, making it the first dam on the Columbia River. The addition of six units was completed in 1953. Located on the west bank of the river, a second powerhouse with eight bulb turbine generators was placed into operation during 1979. The original license to operate the Rock Island Hydroelectric Project was issued by the Federal Power Commission in 1929. Chelan PUD was issued a new 40-year license for the Rock Island Hydroelectric Project on January 18, 1989.

The Lake Chelan Hydroelectric Project (FERC No. 637) is the smallest of Chelan PUD’s three hydroelectric projects. The 48 MW project includes a dam and spillway, a 2.2-mile-long tunnel and penstock, and a powerhouse with two turbine-generators. Lake Chelan serves as the Lake Chelan Hydroelectric Project’s reservoir and is over 50 miles in length, with a drainage of about

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924 square miles. The 4.1-mile-long Chelan River flows from the lower end of Lake Chelan to the Columbia River. The Lake Chelan Hydroelectric Project’s dam is located near the head of the Chelan River, while the powerhouse is situated near the confluence of the Chelan and Columbia Rivers. The original 50-year license to operate the Lake Chelan Hydroelectric Project was granted by the Federal Power Commission in 1926. A subsequent 30-year license was issued in 1981 and made retroactive to 1974. The FERC license for the Lake Chelan Hydroelectric Project expired on March 31, 2004. Chelan PUD submitted a Comprehensive Settlement Agreement for a new Project license to FERC on October 17, 2003, though the FERC has been precluded from issuing a new license due to an appeal of the state Section 401 water quality certification. On April 7, 2004, FERC issued a notice of authorization for continued operation of the Project or annual license based on the terms and conditions of the expired license. The appeal process concluded on May 21, 2004, and FERC is currently finalizing the Project license order.

A1.2 MAJOR COMPONENTS The Rocky Reach Hydroelectric Project consists of a 130-foot-high concrete gravity dam at river mile 473.7 of the Columbia River. The powerhouse is 1,088 feet long, 206 feet wide and 218 feet high, containing 11 generating units. Power from the Project flows to a single distribution point: the Rocky Reach Hydroelectric Project switchyard, which is located on the east bank of the Columbia River, opposite the powerhouse. The spillway includes 12 gates, each 50 feet wide, which regulate the surface elevation of the reservoir. The forebay wall overlooks the visitors’ grounds and connects the powerhouse to the west bank. The center dam connects the spillway and powerhouse. Visitors’ facilities are located on the west bank and include a historical museum, visitors’ center, and 38 acres of award-winning lawns and landscaping. The Project also includes fish passage facilities, including a fish ladder that is adjacent to the west bank and a juvenile salmon surface collection system near the forebay wall. A plan view of Project facilities is included in Exhibit F, Sheet 1. (Design drawings have been designated Critical Energy Infrastructure Information and have been filed as such as a separate appendix to this license application.)

A1.3 ROCKY REACH HYDROELECTRIC PROJECT LANDS

A1.3.1 Regional Geography and Geology The Project lies at the foot of the Cascade Range’s eastern slope in north central Washington. The watershed, which supplies water to the Project, has a drainage area of about 87,800 square miles, including parts of Washington, Idaho, Montana, and British Columbia east of the Rocky Mountains and west of the Cascades.

At the location of the Project, the Columbia River forms a dividing line between the Columbia Plateau to the east and the Entiat Mountains to the west. The Columbia Plateau consists of great thicknesses of basalt. The Entiat Mountains consist of gneisses and granodiorites and rise to elevations of about 7,000 feet above sea level.

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A1.3.2 Local Geology The path of the Columbia River at the Project site was influenced by lava flows from the Columbia plateau. Most of the Project structures are located on bedrock, consisting mainly of Swakane Gneiss, which is generally described as a biotite gneiss. The gneissic banding and foliation dips to the south and southwest at angles between 8 and 15 degrees. The major joint system is parallel to the banding and the major secondary joint system is near vertical. The dip to the south or southwest is related to a major structural feature which is an anticlinal arch with an axis trending northwesterly, parallel to the crest of the Entiat Mountains. A basalt porphyry is located near the middle of the spillway. Near the east abutment, an extensive porphyritic basalt dike some 25 feet in width parallels the river. No significant faults have been noted in Project geological reports.

The east bank seepage cutoff is a buried structure founded on a varved clay layer 50 to 100 feet thick, which lies below a layer of terrace sands and gravels. Beneath the varved clay layer another layer of sands and gravels exists above bedrock.

The reservoir is primarily located in glacial and glaciofluvial deposits at the lower elevations along the Columbia River Gorge.

A1.3.3 Rocky Reach Hydroelectric Project Lands The Rocky Reach Hydroelectric Project boundary is defined by contour lines on each side of the reservoir beginning at elevation 707 feet mean sea level at the Project dam upstream to the Wells Hydroelectric Project tailrace. The elevation of the boundary lines increases with distance upstream of the Project dam to take into account the anticipated water level at high flows.

The Project contains approximately 1,500 acres of land, of which Chelan PUD owns about 600 acres. Chelan PUD has flowage easements for the remainder of the lands within the Project boundary.1

Approximately 150 acres of federally-owned land exist within the Project boundary. These lands are identified in the current Exhibit G drawings. There are no tribal lands within the Project boundary. Several parks have been built on Project lands, a detailed description of which is in Section 5.3.7 of the PDEA.

1 Refer to Table H-2 in Exhibit H that lists parcels of land being secured by Chelan PUD to amend flowage easements.

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A2.0 DETAILED DESCRIPTION

A2.1 STRUCTURES

A2.1.1 Dam The dam, located at Columbia River mile 473.7, is a concrete-gravity structure approximately 130 feet high and about 2,847 feet long. The dam comprises, from left (east) abutment to right (west) abutment, the east abutment blocks, spillway, center dam, powerhouse, and forebay wall. Fish passage facilities are included in the dam, passing through several of the other structures. Though it is not included in the length of the dam described above, the Project also includes a subsurface seepage cutoff extending east from the east abutment blocks. Each of these portions of the dam is described in more detail below.

Table A-1: Dam Features Feature Description Location Located at Columbia River mile 473.7, about 7 miles upstream from Wenatchee, Washington Primary Purpose Power Generation Hazard Classification High Type Concrete Gravity Height 130 ft Crest Length About 2,847 ft Crest Elevation 717 ft (deck elevation) 720 ft (parapet wall) Crest Width Varies, approx. 24 ft minimum

A2.1.2 Spillway The dam includes a gated spillway that allows regulation of flows and headwater levels in the Rocky Reach Hydroelectric Project reservoir. The spillway structure is oriented roughly perpendicular to the flow of the river. The spillway section consists of twelve 50-foot-wide bays separated by 10-foot-wide piers. The crest of the ogee spillway section is at elevation 650 feet. Flow through each bay is controlled by a 58-foot-high radial gate. Each gate is operated by a stationary hoist and is equipped for remote operation from the control room in the Project powerhouse.

The radial gate in spillway bay 1 is equipped with a trash flap approximately 22.7 feet wide by 4.4 feet high, centered at the gate’s top. This flap can be opened to pass floating debris caught upstream of the spillway.

The spillway capacity is periodically reviewed pursuant to FERC regulations (18 CFR 12.35). The Periodic Safety Inspection Report submitted to the FERC in 1997 found the spillway to have adequate capacity to pass the probable maximum flood (PMF) with a peak flow of 1,260,000 cfs

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and headwater elevation of 718.3 feet. This elevation would be above the deck level, but below the top of the parapet wall.

Table A-2: Spillway Features Feature Description Type Controlled, Ogee Crest Elevation 650 ft Length 740 ft total; 600 ft hydraulic length Control Twelve 50-ft-wide x 58-ft-high tainter gates Gate Hoist Type Stationary, automated hoists, 20 hp Gate Control Location Local or remote from the Control Room Discharge at Maximum Water Elevation Approx. 980,000 cfs @ 707 ft headwater elevation 1,260,000 cfs @ 718.3 ft headwater elevation (PMF)

A2.1.3 Powerhouse The powerhouse is an indoor-type, approximately 1,088 feet long by 206 feet wide and 218 feet high. It includes eleven generating units and a service bay. Each unit is housed in an independent block of reinforced concrete 86 feet wide by 206 feet long (parallel to the flow). Units 1 through 7 were part of the original Project construction completed in 1961. At the time of original construction, spaces were prepared for Units 8 through 11, which were added in 1971. Units 1 through 7 generators are each rated at 111,150 kW, but these units are turbine limited to 140,000 hp or 105,000 kW. Units 8 through 11 generators are each rated at 125,400 kW for an installed capacity for the 11 units of 1,236.6 MW. Operation of the Project is automated and can be controlled locally by full-time operators in the Project control room or remotely from Chelan PUD’s dispatch center in Wenatchee.

Maintenance and servicing of the equipment in the powerhouse is facilitated by two overhead, traveling-bridge cranes. These cranes have a capacity of 250 tons, with an auxiliary hook capacity of 25 tons. The cranes are powered by electric motors and operated using remote radio controls.

Each generating unit has three intake openings. Intakes for the units are equipped with two sets of slots, the upstream slot is typically used for trashracks and the downstream slot is used for placement of headgates when a unit needs to be de-watered. Trashracks and headgates are handled using the intake deck gantry crane. This crane has a capacity of 150 tons with an auxiliary hook capacity of 10 tons. In addition, a high-speed 45-ton hoist is available which can be suspended from the gantry crane’s main hooks.

Draft tubes for the units are equipped with slots for placement of bulkhead gates used to de-water the units. Draft tube bulkhead gates are handled using the draft tube deck gantry crane. This crane has a capacity of 60 tons, with an auxiliary hook capacity of 6 tons.

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The powerhouse service bay is a concrete structure forming the corner between the forebay wall and Unit 1 of the powerhouse. The service bay is a rectangular structure approximately 170 feet long and 142 feet wide. The short dimension of the structure is parallel with the upstream face of the powerhouse. The service bay is a combination of mass and reinforced concrete construction. The headworks, foundation mat, and soil and water retaining sections of the structure are constructed of mass concrete. The walls, floor slabs, beams, and columns are constructed of heavily reinforced concrete.

Table A-3: Powerhouse Features Feature Description STRUCTURE Type Indoor, above-ground powerhouse Construction Reinforced cast-in-place concrete Approximate Size 1088 ft long x 206 ft wide x 218 ft high Features Eleven vertical-axis generating units Service Bay CONTROL ROOM Location Local control room is within the powerhouse

ANCILLARY EQUIPMENT Overhead Cranes 2 traveling bridge cranes inside powerhouse 250 ton main, 25 ton auxiliary Intake deck gantry crane 150 ton main, 10 ton auxiliary, 45 ton high-speed Draft tube deck gantry crane 60 ton main, 6 ton auxiliary

A2.1.4 Non-Overflow Sections The dam’s non-overflow sections include the east abutment, the center dam, and the forebay wall. Each of these structures has the general shape of a typical gravity dam section. The east abutment comprises two blocks, each 125 feet high and 60 feet wide, for a total distance along the dam axis of 120 feet. In plan, the block adjacent to spillway bay 12 is “L” shaped, with a 115- foot-long downstream leg, which forms the east side pier and training wall for the spillway. The east abutment blocks serve as a wraparound section for the fill and tie-in for the impervious core of the subsurface seepage cutoff.

The center dam consists of five, somewhat pie-shaped, blocks that form the nearly 90 degree corner between the spillway and the powerhouse. The blocks are about 130 feet high and each has a unique geometry. Each block is designed to be stable independently of the others, but to better address foundation conditions found during construction, the center dam as a whole was designed to behave somewhat as a horizontal arch. To accomplish this, during construction the joints between the center dam blocks were pressure grouted near their bases and the base slabs of powerhouse Units 10 and 11 were thickened to accommodate the load expected to be transferred by the center dam.

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The forebay wall extends 460 feet from the west riverbank (right abutment) to the powerhouse service bay. This wall comprises ten concrete gravity blocks of varying lengths, widths, and heights. A roadway along the top of the forebay wall provides access to the powerhouse and dam. One of the blocks near the abutment includes parts of the visitor center and fish ladder.

Table A-4: Non-Overflow Section Features Feature Description East Abutment Blocks East of spillway 2 blocks, each 125 ft high x 60 ft wide, gravity section Center Dam Between spillway and powerhouse 5 blocks, 130 ft high gravity sections Forebay Wall Between powerhouse and right (west) abutment 10 blocks, various heights and widths, gravity section

A2.1.5 Subsurface Seepage Cutoff The east bank seepage cutoff at the Project dam is a buried structure that extends roughly 2,000 feet from the east end of the concrete portions of the dam to the east abutment. The purpose of the cutoff is to limit seepage and the flow gradient in terrace deposits east of the present river channel. This cutoff consists of an impervious earthfill section, similar in design to an earthfill dam, extending vertically through the pervious terrace material to a persistent layer of varved clay, and a grouted zone that provides a cutoff in a second pervious zone between the varved clay and bedrock. The cutoff has a maximum depth of about 200 feet.

A2.1.6 Fish Passage Facilities Facilities for passage of adult anadromous fish moving upstream to spawn are an integral part of the Project. A single fishway with three entrances provides for upstream migration. Entrances to the fishway are between spillway bays 8 and 9, at the center dam, and at the powerhouse service bay. Fish using any of these entrances follow passages to the center dam, and then along the downstream side of the powerhouse to a fish ladder along the forebay wall. Just before reaching the Rocky Reach Hydroelectric Project reservoir, the fish ladder passes through a fish counting station, which is part of the visitor facilities near the right abutment. Attraction water for the fishway passages is provided from the tailrace by three hydraulic turbine-driven pumps with a capacity of 3,500 cfs. The adult fish passage facilities are monitored and controlled from a dedicated control room on the draft tube deck near the middle of the powerhouse.

The juvenile fish bypass system (JFBS) was constructed at Rocky Reach Hydroelectric Project dam in 2002-2003 to provide for safer, more efficient passage of downstream-migrating fish. The JFBS design is based on testing conducted from 1985 through 2002. The system consists of a surface collector, intake screens on two generating units, a large-diameter bypass conduit to convey downstream-migrating fish past the dam, and a sampling facility.

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The surface collector is located adjacent to the forebay wall and generating units 1, 2 and 3. It includes two channels, each 20-feet wide extending to a bottom elevation of 650 feet. In addition to the surface collector, Units 1 and 2 are equipped with intake screens that collect fish from the intake area. Fish from both the surface collector and intake screens are delivered to the bypass conduit. The bypass conduit is a pipe up to 9 feet in diameter, routed along the downstream side of the powerhouse and spillway, through the sampling facility, to an outfall point approximately 1,700 feet downstream of the dam and 450 feet from the east bank.

Juvenile fish are collected and examined, as necessary, at the sampling facility on the east bank downstream of the spillway. Chelan PUD’s fish and wildlife crew collects species composition and fish condition data. Fish are also collected for ongoing survival and behavioral studies at Rocky Reach and Rock Island hydroelectric project dams.

Table A-5: Fish Passage Facilities Features Feature Description Upstream passage Fish ladder with 3 entrances Downstream passage Surface collection system and intake screens in forebay area, bypass conduit and sampling facility

A2.1.7 Recreation Facilities There are several public recreation sites located within or adjacent to the Project boundary. Table A-6 below is a list of these facilities.

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Table A-6: Recreation Facilities Facility Description ROCKY REACH HYDROELECTRIC PROJECT INFORMATION CENTER: Visitor center at west abutment of dam, snack bar, fish viewing room Powerhouse Galleries Museum and exhibits on powerhouse fourth floor PARKS: Daroga State Park 140 acres, 8 miles upstream of Orondo, camping, picnic areas, sports field, boat ramp and docks, shoreline trail Lincoln Rock State Park 65 acres, upstream of dam’s left abutment, camping, picnic areas, swimming, boat ramp and docks Orondo Park 5 acres, 4 miles upstream of Orondo Entiat Park 40 acres, near Entiat, camping, picnic areas, boat ramp and docks, swimming Chelan Falls Park 53 acres, at confluence of Chelan and Columbia rivers, boat ramp and docks, picnic areas Beebe Bridge Park 56 acres, east bank near Beebe Bridge, camping, picnic areas, swimming Rocky Reach Hydroelectric Project 38 acres at dam west abutment, playground, Grounds picnic area

A2.1.8 Public Safety Measures Chelan PUD has installed various measures to assure public safety at the Project. Table A-7 below provides a list of these safety measures.

Table A-7: Public Safety Features Feature Description Dam Boat barrier Log boom Fencing and gates to restrict access to parts of dam Safety signage Metal detector (at visitor’s center)

Switchyard Fencing and gates to prevent access to switchyard Safety signage

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A2.1.9 Access Roads Access to the dam is by way of paved roads from US Highway 97A on the west abutment, and U.S. Highway 97 near the east abutment.

A2.1.10 Other Structures Other structures located within the licensed Project boundary include fish rearing facilities on Turtle Rock Island and near the dam’s east abutment, both upstream and downstream of the dam. These facilities are funded and maintained by Chelan PUD and operated by WDFW. The fish rearing facilities near and upstream of the dam’s east abutment are actually associated with the Rock Island Hydroelectric Project.

A2.2 RESERVOIR The Rocky Reach Hydroelectric Project dam impounds the Columbia River, which is the reservoir for the Project. The Project dam and Wells Hydroelectric Project dam bound the Rocky Reach Hydroelectric Project reservoir. Rocky Reach Hydroelectric Project is a run-of-river Project with a significant current flowing through the reservoir. As a result, the level is not constant throughout the reservoir, but increases measurably from the Project dam to the upstream Wells Hydroelectric Project dam. As an example, with a headwater elevation at the Project of 707 feet and a flow of 100,000 cfs, the water surface elevation at Wells Hydroelectric Project dam is approximately four feet higher, or 711 feet. Figure A-1 is a graph of usable reservoir storage and surface area versus headwater elevation. Table A-8 below provides a summary of reservoir features.

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80 8.5

The curves shown are for a flow of 100 kcfs. 70 8.4 Higher flows would yield higher curves.

60 8.3

50 8.2 Reservoir surface area

40 8.1

Active storage volume

30 8 Surface Area (1000 acres) Active Storage (1000 acre-feet)

20 7.9

10 7.8

0 7.7 703 704 705 706 707 708 709 710 Headwater Elevation (ft) Figure A-1: Rocky Reach Hydroelectric Project Reservoir Area-Capacity Curve

Table A-8: Reservoir Features Feature Description RESERVOIR Normal Maximum Headwater Level 707 ft Drainage Area 87,800 sq. mi. Length 43 miles, River Mile 473.7 to 516.5 Area @ 707’ HW (headwater) 8,235 acres @ 100,000 cfs Average Width 0.3 mi. Maximum Depth Approx. 130 ft Average Flow, 1973 – 2001 113,200 cfs Minimum Flow, 1973 – 2001 25,100 cfs Maximum Flow, 1973 – 2001 358,000 cfs Useable Storage (707’ HW to 703’ HW) 36,400 acre-ft @ 100,000 cfs Gross Storage Capacity 387,500 acre-ft

A2.3 TURBINES/GENERATORS The powerhouse contains 11 vertical-axis turbines. When installed, Units 1 through 7 were equipped with Kaplan runners (whose blade pitch is adjustable) and Units 8 through 11 were equipped with fixed-blade turbines. In 1995 through 2003, all the turbine runners were replaced with new more fish-friendly, more efficient turbine runners. Turbine rehabilitation concluded in

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2003. The new turbines incorporate many fish-friendly design features, including minimal gaps between each blade’s leading edge and the hub. The weighted average in increased turbine efficiency with the new runners was three percent for Units C1 through C4 and over six percent for Units C8 through C11.

The turbines for Units 1 through 7 each develop 140,000 horsepower to drive generators rated at 111,150 kW. However, Units 1 through 7 are turbine-limited and, therefore, their rated installed capacity is only 105,000 kW. The turbines for Units 8 through 11 each develop 190,000 horsepower to drive generators rated at 125,400 kW. Units 8 through 11 are generator-limited and, therefore, their rated installed capacity is 125,400 kW. Each turbine is directly connected to its generator by a vertical shaft. The vertical thrust load for both the turbine and generator is carried by a thrust bearing located below the generator rotor. The generators are air-cooled. The installed capacity of the eleven units is 1,236.6 MW.

The generating units are, however, capable of producing more than the rated output and are on occasion (less than 2 percent of the time) operated above their rated output. Under ideal conditions, the units are capable of producing a combined 1,278 MW.

Each turbine is controlled, through servomotor-operated wicket gates, by a mechanical-hydraulic governor. The governors operate with oil pressures of 300 to 350 psi for Units 1 through 7 and 770 to 785 psi for Units 8 through 11. The governors receive their speed indication from digital, computer-based speed sensing and control equipment as part of the turbine replacement program. At rated capacity and head, Units 1 through 7 discharge 14,600 cfs each and Units 8 through 11 discharge 17,200 cfs each.

Flow through each unit is effectively controlled by the wicket gates mentioned above. Flow can be completely shut off by inserting headgates in gate slots just downstream of the trashracks, and draft tube bulkhead gates at the downstream end of each draft tube. This is done when it is necessary to de-water a unit for maintenance or repairs. Once the gates are in place, the water in the unit can be drawn down to the extent necessary by means of pumps in a de-watering sump in the service bay.

Local control and gage boards are located adjacent to each turbine, which allows local manual operation of the unit startup, load adjustment switching and condition monitoring. These local control systems have been upgraded as part of Chelan PUD’s comprehensive upgrade program. The work included installation of new local controls, machine condition monitoring equipment, replacement of much of the original electromechanical relay system for each unit with solid-state controls, and incorporation of a fiber-optic communication link between the unit control board and the main powerhouse control room. Generator controls are brought to the control room, where they are interfaced with equipment to provide control from the control room.

In 2002, the FERC authorized installation of an 800 kW, fixed-blade propeller turbine generator in an existing structure that provides supplemental flow to the spillway entrance of the adult fishway. The turbine generator will be fitted into the existing structure to make use of attraction water, which is conveyed from headwater to the fish ladder entrance. The installation will include

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means of routing flow around the turbine to allow for servicing of the unit, and screens to exclude fish from passing through the turbine. Operation of the fish ladder will be unaffected. Installation is expected to be completed and energy production started in April 2007, with an expected annual output of 5,500 MWh.2 With authorization of this micro-turbine, the total installed capacity of the Project was revised to 1,237.4 MW.

Table A-9: Turbine/Generator Features Feature Description TURBINES Number of Units 11 Type Vertical-axis Kaplan Manufacturer Riva Hydroart / Voith Rated Capacity, Units 1 to 7 140,000 hp @ 92.0 ft head Rated Capacity, Units 8 to 11 190,000 hp @ 92.0 ft head Rated Flow, Units 1 to 7 14,600 cfs Rated Flow, Units 8 to 11 17,200 cfs Water Supply Columbia River

GENERATORS Type Synchronous Manufacturer, Units 1 to 7 Westinghouse Manufacturer, Units 8 to 11 ABB Rated Capacity, Units 1 to 7 117,000 kVA Rated Capacity, Units 8 to 11 132,000 kVA Power Factor 0.95 Speed, Units 1 to 7 90 rpm Speed, Units 8 to 11 85 rpm Voltage 15 kV

GOVERNOR Type Electronic-Hydraulic Manufacturer Woodward, Riva Hydroart

PRODUCTION Control Location Local and Chelan PUD Dispatch Center Average Turbine Discharge (1973-1997) 106,500 cfs Average Net Annual Generation (1980-2001) 5,923,000 MWh

2 Chelan PUD submitted an application to FERC on May 14, 2001, to authorize installation and operation of small turbine generator at the Rocky Reach Hydroelectric Project. FERC proceeded with issuance of an order to authorize installation on March 14, 2002, despite absence of a biological opinion. In a February 14, 2003, letter, NOAA Fisheries explained its intent to include the installation of the small turbines as an interrelated action in the biological opinion on proposed issuance of the HCP incidental take permits. The biological opinion for the small turbine units was included as part of the August 12, 2003, NOAA Fisheries’ biological opinion of the proposed issuance of the Rocky Reach Hydroelectric Project HCP incidental take permit. With the biological opinion and order in hand, Chelan PUD plans to complete installation in 2007.

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Table A-9: Turbine/Generator Features Feature Description

ATTRACTION WATER MICRO-TURBINE Turbine type Vertical axial flow adjustable Manufacturer Canadian Hydro Components Rated capacity 1,105 hp @ 85 ft head Rated flow 125 cfs Water supply Columbia River

Generator type Induction Manufacturer Tatung Rated capacity 800 kW Power factor 1.0 Speed 900 rpm Voltage 4160 V

A2.4 TRANSMISSION LINES Five sets of 230-kV transmission lines convey power from the powerhouse to the switchyard, which is located on the east bank. These lines are part of the Project, while the transmission lines beyond the switchyard are not part of the Project.

A2.5 SWITCHGEAR The Project’s main transformers, located on the powerhouse intake deck, step up from 14.8 kV to 230 kV, 3-phase. The transformers for Units 1 through 7 are rated for 64/85/106/119 MVA. Those for Units 8 through 11 are rated for 72/96/120/135 MVA. All are air-cooled. Transformers in the switchyard on the left abutment step from 230 kV to 115 kV and are rated for 150/168 MVA.

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Table A-10: Switchgear Features Feature Description CIRCUIT BREAKERS 15.8 kV gas breakers from ABB Ratings, Units 1 to 7 Type HGI-2 (5,000 A @ 15.5 kV) Ratings, Units 8 to 11 Type HGI-3 (6,000 A @ 15.5 kV)

MAIN TRANSFORMER LOCATION Powerhouse Intake Deck Type 14.8 kV to 230 kV, 3-phase, air cooled, from Hyundai Ratings, Units 1 to 7 64/85/106/119 MVA Ratings, Units 8 to 11 72/96/120/135 MVA

EAST BANK SWITCHYARD Auto-Transformers 230 kV to 115 kV Surfacing Crushed rock Fencing Chain Link with Barbed Wire Access From U.S. Hwy 2 and 97

A2.6 ADDITIONAL MECHANICAL, ELECTRICAL, AND TRANSMISSION EQUIPMENT APPURTENANT TO THE ROCKY REACH HYDROELECTRIC PROJECT Station service power is provided by means of multiple 1.5 MVA station service transformers arranged to serve varying numbers of units. Station service buses are interconnected via normally-open breakers for mutual backup. The 120 VAC source consists of a 30 kVA, single- phase transformer and two hot-standby UPS systems paralleled to supply uninterruptible AC power to two AC panels. DC systems include two banks of lead-antimony batteries with a charger. A computerized plant control system controls unit generation, unit voltage, unit starts and stops, and spillgate control.

A2.7 LANDS OF THE UNITED STATES The Rocky Reach Hydroelectric Project currently occupies 150 acres of federally-owned land.

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EXHIBIT B: ROCKY REACH HYDROELECTRIC PROJECT OPERATION

Table of Contents

TABLE OF CONTENTS

EXHIBIT B: ROCKY REACH HYDROELECTRIC PROJECT OPERATION ...... B-1

B1.0 Overview of Hydroelectric Project Operations...... B-1 B1.1 General Description of Overall Project Operations ...... B-1 B1.2 Description of How Rocky Reach Hydroelectric Project is Operated in Adverse, Mean, and High Water Years ...... B-3 B1.3 Minimum, Mean and Maximum Recorded Flows...... B-4 B1.4 Flow Duration Curves...... B-5

B2.0 Resource Utilization...... B-12 B2.1 Description of Plant Control ...... B-12 B2.2 Estimate of Annual Plant Factor ...... B-12 B2.3 Estimate of Dependable Capacity ...... B-12 B2.4 Estimate of Annual Energy Production...... B-12 B2.5 Estimated Hydraulic Capacity of the Powerhouse ...... B-12 B2.6 Tailwater Rating Curve...... B-13 B2.7 Powerplant Capability Curve ...... B-14

B3.0 Power Utilization...... B-15

B4.0 Proposed Development ...... B-16

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LIST OF TABLES

Table B-1: Minimum, Average and Maximum Flows (cfs) ...... B-4 Table B-2 : Power Purchasers and Percent Share...... B-15

LIST OF FIGURES

Figure B1-1: Annual Flow Discharge Duration Curve ...... B-5 Figure B1-2: Monthly Flow Discharge Duration Curve for January...... B-6 Figure B1-3: Monthly Flow Discharge Duration Curve for February...... B-6 Figure B1-4: Monthly Flow Discharge Duration Curve for March ...... B-7 Figure B1-5: Monthly Flow Discharge Duration Curve for April ...... B-7 Figure B1-6: Monthly Flow Discharge Duration Curve for May...... B-8 Figure B1-7: Monthly Flow Discharge Duration Curve for June...... B-8 Figure B1-8: Monthly Flow Discharge Duration Curve for July ...... B-9 Figure B1-9: Monthly Flow Discharge Duration Curve for August ...... B-9 Figure B1-10: Monthly Flow Discharge Duration Curve for September...... B-10 Figure B1-11: Monthly Flow Discharge Duration Curve for October...... B-10 Figure B1-12: Monthly Flow Discharge Duration Curve for November ...... B-11 Figure B1-13: Monthly Flow Discharge Duration Curve for December...... B-11 Figure B2-1: Rocky Reach Hydroelectric Project Tailwater Rating Curve ...... B-13 Figure B2-2: Rocky Reach Hydroelectric Project Powerplant Capability Curve ...... B-14

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B1.0 OVERVIEW OF HYDROELECTRIC PROJECT OPERATIONS

B1.1 GENERAL DESCRIPTION OF OVERALL PROJECT OPERATIONS

Chelan PUD operates the Rocky Reach Hydroelectric Project to optimize use of the water resources of the Columbia River to produce electric energy while meeting flood control, environmental and other needs. Chelan PUD proposes to continue its current operating policy for the Project.

The Columbia River drainage basin encompasses approximately 87,800 square miles in Washington, Idaho, Montana and British Columbia. Due to the relatively small storage volume available, the Rocky Reach Hydroelectric Project is operated as a run-of-river Project. The available flow is used for power generation, with full consideration for flood control, irrigation, recreation, municipal and domestic water supplies, fish and wildlife conservation, and other beneficial uses. The Project is, and will continue to be, operated in accordance with applicable FERC license requirements.

Chelan PUD is a signatory to the Mid-Columbia Hourly Coordination Agreement, along with Public Utility District No. 1 of Douglas County (Douglas PUD), Public Utility District No. 2 of Grant County (Grant) and the Bonneville Power Administration (BPA). Under the terms of this agreement, the five non-federal projects on the Columbia River (Rock Island, Rocky Reach, Priest Rapids, Wanapum and Wells hydroelectric project dams), as well as the Grand Coulee and Chief Joseph federal projects, are operated in a coordinated manner to optimize water use through this stretch of the Columbia River.

In accordance with the existing FERC license, the Rocky Reach Hydroelectric Project reservoir is operated with a normal maximum headwater elevation of 707 feet. The minimum headwater level is elevation 703 feet and the maximum headwater level, used for passage of flood flows, is elevation 710 feet.

Although the Rocky Reach Hydroelectric Project has existing pondage capacity (useable storage of 36,400 acre-feet between headwater elevations 707 feet and 703 feet at a flow of 100 kcfs), actual pondage drawdowns are avoided if possible because they lower operating head and reduce overall efficiency. The Mid-Columbia Hourly Coordination Agreement facilitates a higher reservoir level than would occur without coordination.

All power requests and non-power requirements are collected and tracked by a computer and power management personnel at Grant PUD’s headquarters (Ephrata, Washington), which serves as “Central” to the operation. Central optimizes movement of water to maximize generation, keeping the reservoirs as full as possible while minimizing spill losses. Based on load (generation) requests, Central assigns each project a desired generation level so that all load requests are satisfied in a manner that optimizes the combined operational efficiency of all of the participating projects.

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Central also keeps accounting records that recognize the varying generation obligations of each participating project (from Grand Coulee to Priest Rapids Hydroelectric Project dams). Central’s accounting programming permits the shifting in time of actual generation from one project to another by means of "coordinated exchange." As a result, each project generates when and at the level that is most efficient, and the contractual obligations of each project are met. The programming for the computers has evolved through many years of refinements and is intended to achieve the highest overall level of efficiency for the participating projects. When a generation request is transmitted from Central to the Rocky Reach Hydroelectric Project on-site computers, the most efficient way to meet the request is determined and implemented. Units 1 through 11 are adjustable blade Kaplan units and are efficient over a wide range of operating conditions.

Installation of plant optimization software (WaterView) at the Rocky Reach Hydroelectric Project was completed in 2001. This software uses individual unit performance characteristics with real time flow conditions to optimize operation of the overall Project. Operation of the Rocky Reach Hydroelectric Project is automated, including decisions to start, stop and adjust the output of the 11 generating units to achieve maximum efficiency. The Rocky Reach Hydroelectric Project’s automated functions are backed up with around-the-clock on-duty plant operators who monitor operations and can over-ride computer control if needed.

Spillway releases to pass water in excess of turbine capability or load requirements, or for fish passage, are also controlled by computer. When the headwater level exceeds operator-set maximum points, gates are automatically opened to pass the excess flow. During fish passage operations, the sequence and amounts of gate opening can also be adjusted to maximize the effectiveness of the water being spilled.

A Habitat Conservation Plan (HCP) was negotiated to increase the survival of salmon and steelhead migrating past the Project. Two components of the HCP to increase the survival of juvenile fish are a juvenile fish bypass system and spill.

A juvenile fish bypass system, constructed in 2002-2003, collects migrating juvenile fish in the forebay and moves them around the Project in a bypass conduit nine feet in diameter, with flows of around 360 cfs. This conduit safely deposits the fish approximately a quarter mile downstream of the spillway in the tailrace of the Project.

Spill is another tool Chelan PUD is using to increase the survival of juvenile salmonids as they pass through the Project. Spill levels for 2004 through 2006 have been set by the results of the 2003 juvenile fish passage efficiency study. Due to the performance of the bypass system in 2003 in passing yearling Chinook and steelhead, spill was eliminated for these species, as specified in the HCP. Although the bypass system did not guide sockeye and subyearling Chinook salmon well enough to eliminate spill for these species, spill levels were reduced and will encompass 95 percent of each species downstream migration. Spill levels will be 24 percent and 9 percent of the estimated daily average flow for sockeye and subyearling Chinook, respectively. Survival studies will be conducted during this time to assess whether Chelan PUD is meeting or exceeding

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its HCP survival standards. Spill may be adjusted in 2007, depending on the results of these studies.

The Project has a fish ladder for the adult fish migrating up the river. The fish ladder flow consists of about 67 cfs. The FERC has authorized installation of a 800 kW, fixed-blade propeller turbine generator in the attraction water drop structure that provides supplemental flow to the spillway entrance of the adult fishway between spillway bays 8 and 9. The turbine generator will be fitted into the existing structure to make use of attraction water that is conveyed from headwater to the fish ladder entrance. The installation will include means of routing flow around the turbine to allow for servicing of the unit, and screens to exclude fish from passing through the turbine. Operation of the fish ladder will be unaffected. Installation is expected to be completed and energy production started in April 2007, with an expected annual output of 5,500 MWh.

Inflow to the Project comes primarily from upstream storage releases from the Grand Coulee Hydroelectric Project, which pass through Chief Joseph and Wells Hydroelectric Project dams before reaching the Rocky Reach Hydroelectric Project. Releases from the Grand Coulee Hydroelectric Project are governed by the Pacific Northwest Coordination Agreement (PNCA). All generating utilities in the Northwest, with the exception of Idaho Power Company, are parties to the PNCA. The PNCA provides a plan for optimizing water releases to meet power and non- power requirements on a seasonal basis. During flood conditions, the U.S. Army Corps of Engineers (COE) sets discharge requirements to draft upstream storage projects to minimize flood effects on all parts of the Columbia River System. With the available upstream storage, these flood control operations can typically reshape flows to be held well below the level of natural, unregulated flow for similar flood events.

The Rocky Reach Hydroelectric Project, like other projects in the mid-Columbia, helps support minimum flows at Vernita Bar, an important salmonid spawning area below the Priest Rapids Hydroelectric Project. The Rocky Reach Hydroelectric Project can be drafted an additional foot for that purpose and to help prevent stranding of salmonids in the Hanford Reach, also below Priest Rapids Hydroelectric Project.

B1.2 DESCRIPTION OF HOW ROCKY REACH HYDROELECTRIC PROJECT IS OPERATED IN ADVERSE, MEAN, AND HIGH WATER YEARS The operation of the Project does not change significantly with changing water conditions, due to its run-of-river nature. The reservoir currently contains about 36,400 acre-feet of active storage at average flows, which is sufficient to run the plant for only about two hours without additional inflows. During high water years, the Project operates at a higher plant factor and more often spills to pass flows in excess of plant turbine capacity. A higher plant factor means that Rocky Reach Hydroelectric Project is able to operate at, or near, full load for longer periods of time without drafting the storage from the reservoir. Under lower water supply conditions, the number of hours that the plant can sustain operations at or near peak load diminishes.

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Plant capacity does not change significantly with flow, however, due to operations under the Mid-Columbia Hourly Coordination Agreement, which keeps the Project reservoir at or near full most of the time. For the past ten years (1992-2001), the Project has operated in the top foot of reservoir storage around 70 percent of the time and within the top two feet of reservoir storage around 98 percent of the time. As flows reach and exceed 150,000 cfs, tailwater effects reduce plant capacity due to higher tailwater levels resulting in lower available gross head.

The Project license provides for drafting the reservoir to the 703-foot elevation in anticipation of advancing floodwaters. Chelan PUD does not initiate this draft for flood control until signaled to do so by the COE. When the floodwaters do arrive, the COE can order the reservoir elevation to be operated at 710-foot elevation. The COE would coordinate this drawdown and/or filling of the reservoir with all of its other flood control operations and obligations.

B1.3 MINIMUM, MEAN AND MAXIMUM RECORDED FLOWS Columbia River flows have changed significantly since approval of an amendment to the license for the Rocky Reach Hydroelectric Project (Amendment No. 5 in 1968), due to completion of the Mica Creek dam in British Columbia in 1973. The ability to capture a larger percentage of the spring runoff has lessened the typical peak flow and also generally increased the minimum flows. To accurately represent current and future operations, flow data in Table B-1 is presented for the period from 1973 to 2003, subsequent to the commencement of operation of the Mica Creek Dam. The minimum and maximum flows in Table B-1 were one-time events.

The average flow includes turbine discharge and spill at the Project. No allowances have been made for leakage (no significant amount is known to exist) or for fishway flows. The daily figures for 1961 to 1972 are from the U.S. Geological Survey record of “Columbia River below Rocky Reach.” The figures for 1973 to 2003 are data from Chelan PUD.

Table B-1: Minimum, Average and Maximum Flows (cfs) 1961 to 1972 1973 to 2003 (Prior to Mica Dam) (After Mica Dam) Minimum Flow 25,100 25,100 Average Flow 123,100 111,600 Maximum Flow 530,000 358,000

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B1.4 FLOW DURATION CURVES Annual and monthly flow duration curves, shown in Figure B1-1 through Figure B1-13, have been calculated based upon hourly flows at the Project for the period 1973 through 2003. This period reflects flow conditions subsequent to the completion of Mica Creek Hydroelectric Project dam.

Rocky Reach Hourly Flows Annually 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-1: Annual Flow Discharge Duration Curve

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Rocky Reach Hourly Flows in January 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-2: Monthly Flow Discharge Duration Curve for January

Rocky Reach Hourly Flows in February 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-3: Monthly Flow Discharge Duration Curve for February

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page B-6 June 30, 2004 Exhibit B: Project Operation and Resource Utilization

Rocky Reach Hourly Flows in March 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-4: Monthly Flow Discharge Duration Curve for March

Rocky Reach Hourly Flows in April 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-5: Monthly Flow Discharge Duration Curve for April

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Rocky Reach Hourly Flows in May 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-6: Monthly Flow Discharge Duration Curve for May

Rocky Reach Hourly Flows in June 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-7: Monthly Flow Discharge Duration Curve for June

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page B-8 June 30, 2004 Exhibit B: Project Operation and Resource Utilization

Rocky Reach Hourly Flows in July 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-8: Monthly Flow Discharge Duration Curve for July

Rocky Reach Hourly Flows in August 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-9: Monthly Flow Discharge Duration Curve for August

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Rocky Reach Hourly Flows in September 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-10: Monthly Flow Discharge Duration Curve for September

Rocky Reach Hourly Flows in October 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-11: Monthly Flow Discharge Duration Curve for October

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page B-10 June 30, 2004 Exhibit B: Project Operation and Resource Utilization

Rocky Reach Hourly Flows in November 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-12: Monthly Flow Discharge Duration Curve for November

Rocky Reach Hourly Flows in December 1973 - 2003

400

350

300

250

200 FLOW (kcfs) FLOW 150

100

0 0 102030405060708090100 PERCENT EXCEEDENCE

Figure B1-13: Monthly Flow Discharge Duration Curve for December

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page B-11 SS/3959 Exhibit B: Project Operation and Resource Utilization

B2.0 RESOURCE UTILIZATION

B2.1 DESCRIPTION OF PLANT CONTROL As described in Exhibit A, Section A2.1.3, the Rocky Reach Hydroelectric Project can be operated by local manual control, Project powerhouse control, or remotely from Chelan PUD’s Wenatchee dispatch center.

B2.2 ESTIMATE OF ANNUAL PLANT FACTOR Based on the Project’s installed capacity of 1,237.4 MW and average annual net production of 5,923,000 MWh (1980 through 2001), the average plant factor is approximately 0.55.

B2.3 ESTIMATE OF DEPENDABLE CAPACITY Because the Project is run-of-river with minimal storage, dependable capacity is based on when the highest load period (January) occurs and the lowest average flows for that month for the past 30 years. Using the lowest average flow of 82 kcfs for January and the 4-foot usable pond (36,400 acre feet), a dependable capacity of 1,225 MW for four hours could be attained.

The Project has an authorized installed capacity of 1,237.4 MW. The Project is currently capable of producing up to 1,278 MW under favorable head conditions with all units running at overload and operating at maximum hydraulic capacity and all encroachment debits and credits (from Lake Chelan and Rock Island hydroelectric projects) included. The plant is loaded under these conditions less than 2 percent of the time.

B2.4 ESTIMATE OF ANNUAL ENERGY PRODUCTION The average annual net energy produced at the Project from 1980 through 2001 was approximately 5,923,000 MWh. This equals an average net hourly generation of 676 MWh.

B2.5 ESTIMATED HYDRAULIC CAPACITY OF THE POWERHOUSE The maximum hydraulic capacity of the powerhouse is 201,000 cfs when all units are running at their peak capacities. The minimum hydraulic capacity is 12,000 cfs, which is the flow needed to maintain station service and reliability.

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page B-12 June 30, 2004 Exhibit B: Project Operation and Resource Utilization

B2.6 TAILWATER RATING CURVE Figure B2-1 is a tailwater rating curve for the Project, based on operation with the downstream Rock Island Hydroelectric Project at a pool elevation of 613.0 feet. The curve is based on hourly data for the period of March 1978 through December 1990, subsequent to a six-foot pool raise at the Rock Island Hydroelectric Project.

640

635

630

625

620 TAILWATER ELEVATION (ft) ELEVATION TAILWATER

615

610 20 60 100 140 180 220 260 300 340 380 420 TOTAL RIVER FLOW (Kcfs)

Figure B2-1: Rocky Reach Hydroelectric Project Tailwater Rating Curve

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page B-13 SS/3959 Exhibit B: Project Operation and Resource Utilization

B2.7 POWERPLANT CAPABILITY CURVE Attached as Figure B2-2 is a curve showing the plant total capability versus gross head. The maximum head realized from 1992 to 2001 was 95.2 feet. The minimum during the same period was 71.4 feet. The average operating gross head has been 88.6 feet. With hourly coordination, the pool is operated to maximize gross head at the plant. With the plant fully loaded, the gross head does not exceed approximately 87 feet, due to the tailwater at the higher flows. Gross heads higher than 87 feet are attainable only if fewer than 11 units are running because the flow from all 11 units produces tailwater levels typically above elevation 620 feet.

Rocky Reach Capability

1,340

1,320

1,300

1,280

1,260

1,240

1,220

1,200

1,180

1,160

1,140 78 80 82 84 86 88 90 92 94 96

Gross Head in Feet

Figure B2-2: Rocky Reach Hydroelectric Project Powerplant Capability Curve

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page B-14 June 30, 2004 Exhibit B: Project Operation and Resource Utilization

B3.0 POWER UTILIZATION

The energy available to Chelan PUD from its ownership and operation of the Rocky Reach Hydroelectric Project is governed by the power sales contracts between Chelan PUD and various power purchasers. The net capacity and energy from the Project, after withdrawal of station use power, transformation and transmission losses to the point of interconnection, is divided pro-rata among the Project’s power purchasers, including Chelan PUD. A major portion (59 percent) of the power output of the Project is sold to four investor-owned utility companies (collectively, the Rocky Reach Power Purchasers) on a take-or-pay and cost-of-service basis. These contracts expire in 2011. The balance is taken by Chelan PUD and Alcoa Inc., as indicated in Table B-2.

Table B-2 : Power Purchasers and Percent Share Purchaser Percent Share Puget Sound Energy 38.9 Alcoa Inc. 23.0 Portland General Electric Company 12.0 PacifiCorp 5.3 Avista Corp 2.9 Chelan PUD 17.9 ¾ Douglas PUD1 1 Chelan PUD has agreed to make available to Douglas PUD, from Chelan PUD’s share of Rocky Reach Hydroelectric Project energy, an amount of energy equal to 2.77 percent of the output.

Under terms of the power sales contracts, the utilities are entitled to utilize their pro-rata share of the capacity at any time there is sufficient inflow or pondage to support that generation. Inflow to the plant is divided by the purchasers pro-rata share and credited to their "pond account." This account, kept in megawatt hours and transmitted hourly to all purchasers, tells each purchaser how much energy can be generated from their pond account in the coming hours. The purchasers then send an automated signal to the Mid-Columbia Hourly Coordination Central every four seconds, and Central then optimally dispatches water and generation to the various projects. Central then integrates these four-second values and debits the purchaser pond accounts at the end of each hour for the amount of energy requested that hour.

It is up to each individual purchaser to monitor their pond accounts and stay within their contractual energy limits. Chelan PUD, as the Project owner and operator, monitors all Project requests on a four-second basis to see that none exceed their hourly capacity entitlement from the Project.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page B-15 SS/3959 Exhibit B: Project Operation and Resource Utilization

B4.0 PROPOSED DEVELOPMENT

The Rocky Reach Hydroelectric Project is fully developed utilizing available flow 95 percent of the time. Therefore, no future Project development is currently proposed at the Project.

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page B-16 June 30, 2004 EXHIBIT C: CONSTRUCTION HISTORY

Table of Contents List of Tables

TABLE OF CONTENTS

EXHIBIT C: CONSTRUCTION HISTORY...... C-1

C1.0 Construction History ...... C-1

LIST OF TABLES

Table C-1: Chronological History of the Rocky Reach Hydroelectric Project ...... C-3

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page C-i SS/3959

Exhibit C: Construction History

C1.0 CONSTRUCTION HISTORY

The Rocky Reach site has long been recognized for its hydroelectric potential. The U.S. Army Corps of Engineers (COE) first evaluated development of the site in the agency’s 1934 “308 Report.” During the 1950s, the site became the focus of extensive studies by Chelan PUD, including site investigations and mapping, preliminary design and cost estimates.

The original site selected for the Rocky Reach Hydroelectric Project by the COE was about one mile upstream from where the dam is now located. The present site was found to have superior foundation conditions. In addition, the river channel in the present location is narrower, cutting the required excavation and concrete quantities roughly in half.

Development of the Rocky Reach Hydroelectric Project occurred over a period of about 15 years. Construction of the dam and original powerhouse, with seven generating units, commenced in 1956. The addition of four more units began in 1969, after ratification of the Columbia River Treaty between the United States and Canada. The additional units were installed primarily to make use of stored water released from reservoirs in Canada and the Libby Dam reservoir in Montana.

Chelan PUD received a preliminary permit for the Project from the Federal Power Commission, Federal Energy Regulatory Commission’s (FERC) predecessor, on August 10, 1954. An application to construct and operate the dam was filed with the same agency on January 13, 1956. The Federal Power Commission issued a license for the Project six months later, on July 12, 1956.

Construction of the dam and original powerhouse began on October 2, 1956. The first task was installation of cofferdams during low water to seal off the spillway area from the river flow. Following spillway construction, the powerhouse was built. A total of 3.3 million cubic yards of soil and rock were moved during the five-year initial construction period. Peak employment of 2,184 workers occurred during the month of July 1959. The initial seven generating units were placed in commercial operation on November 1, 1961, six months ahead of schedule.

On September 1, 1966, the Chelan PUD filed an application with the Federal Power Commission to amend the Project license for the addition of four generating units. The Federal Power Commission issued the license amendment May 23, 1968. The second phase of construction began April 22, 1969, and was completed December 1, 1971. The expansion work increased the powerplant’s generating capacity by about 60 percent.

In April 2002, the FERC amended the Project license to authorize Chelan PUD to construct a juvenile fish bypass system. The bypass system consists of four major components: a surface collection system, generating unit intake screens at units 1 and 2, a bypass channel, and a juvenile sampling facility. The permanent system, which replaced a prototype, was operational in April 2003, prior to the juvenile migration period.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page C-1 SS/3959 Exhibit C: Construction History

The initial license application for the Rocky Reach Hydroelectric Project No. 2145 was filed January 13, 1956. The license was issued by order dated July 11, 1957, and made retroactive to July 1, 1956; it expires on June 30, 2006. Eight applications to amend the initial license have been approved since 1956. A summary of these amendments, including the 1969 turbine additions and 2002 juvenile fish bypass system, is included in Table C-1.

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page C-2 June 30, 2004 Exhibit C: Construction History

Table C-1: Chronological History of the Rocky Reach Hydroelectric Project Amendment No. Requested Amendment Date Filed Date Approved 1 Approves change in nameplate November 29, 1957 December 23, 1957 ratings to 711,550 kW 2 Approves revised exhibits filed July 25, 1958 August 12, 1958 to reflect a change in Federal Power Commission regulations pertaining to annual charge 3 Amends the reservoir clearing June 19, 1959 November 5, 1959 requirements of Article 29 4 Approves Exhibit K maps July 11, 1960 May 6, 1963 showing the Project boundary August 22, 1960 May 22, 1961 December 4, 1962 March 6, 1963 5 Approves installation of Units 8 September 1, 1966 May 23, 1968 through 11, increasing capacity April 19, 1968 by 501,600 kW for a Project May 1, 1968 total of 1,213,150 kW 6 Resolves discrepancy regarding July 15, 1994 May 23, 1995 Project capacity after units 1 April 11, 1995 through 7 were rewound between 1982 and 1987. Installed capacity was changed to 1,236,600 kW. 7 Approves construction of the February 26, 2001 April 12, 2002 juvenile fish bypass system 8 Approves installation of the May 14, 2001 October 27, 2003 attraction water turbine.1 Installed capacity changed to 1,237,400 kW. 1 The 800 kW turbine generator is scheduled to be installed in the water source to the spillway entrance of the adult fishway by April 2007.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page C-3 SS/3959

EXHIBIT D: STATEMENT OF COSTS AND FINANCING

Table of Contents

TABLE OF CONTENTS

EXHIBIT D: STATEMENT OF COSTS AND FINANCING...... D-1

D1.0 Original Cost of the Rocky Reach Hydroelectric Project ...... D-1

D2.0 Rocky Reach Hydroelectric Project Takeover Costs...... D-1

D3.0 Estimated Costs of Proposed Rocky Reach Hydroelectric Project Modifications ...... D-1

D4.0 Estimated Average Annual Costs of the Rocky Reach Hydroelectric Project ...... D-1

D5.0 Average Annual Value of the Rocky Reach Hydroelectric Project Power...... D-2

D6.0 Sources of Financing and Revenues ...... D-3

LIST OF TABLES

Table D4-1: Estimated Annual Cost of the Rocky Reach Hydroelectric Project (in 2003 Dollars) ...... D-2 Table D6-1: Allocation of Rocky Reach Hydroelectric Project Generation...... D-3

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page D-i SS/3959

Exhibit D: Costs and Financing

D1.0 ORIGINAL COST OF THE ROCKY REACH HYDROELECTRIC PROJECT

This application is not for an initial license. It is for a new license for the Rocky Reach Hydroelectric Project, FERC No. 2145, originally licensed June 11, 1957, retroactive to July 1, 1956. Therefore, tabulated statements of the actual or approximate original cost of the facility are not required. However, Chelan PUD describes the cost of original Project construction in Section D6.0, Sources of Financing and Revenues.

D2.0 ROCKY REACH HYDROELECTRIC PROJECT TAKEOVER COSTS

Chelan PUD is a municipal organization established under the laws of the State of Washington. Therefore, it is not subject to Section 14 of the Federal Power Act, 16 USC 807 concerning takeover of the Project upon expiration of the license.

D3.0 ESTIMATED COSTS OF PROPOSED ROCKY REACH HYDROELECTRIC PROJECT MODIFICATIONS

Chelan PUD does not propose any modifications to the Project generation facilities. A statement of estimated costs is not applicable since no new development is proposed.

D4.0 ESTIMATED AVERAGE ANNUAL COSTS OF THE ROCKY REACH HYDROELECTRIC PROJECT

Chelan PUD developed average annual cost data from several sources. Historic data from past years, through 2003, were tabulated and used to predict costs beginning in the year 2004. Chelan PUD also conducted remaining life assessment studies of all Project structures and equipment and developed an interim replacement and renewal schedule for the next 50 years (through 2054). This was the basis for estimating annual costs for renewals and replacements throughout the new license term. Table D4-1 below shows estimated annual costs of the Project.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page D-1 SS/3959 Exhibit D: Costs and Financing

Table D4-1: Estimated Annual Cost of the Rocky Reach Hydroelectric Project (in 2003 Dollars)

1995 to 2043 Item Average Costs2 Cost of Capital (equity and debt)1 $16,270,000 Local, State and Federal Taxes $2,520,000 Depreciation or Amortization $17,527,000 Operation and Maintenance, including interim replacements, insurance, administrative and general $53,698,000 expenses, contingencies and FERC charges TOTAL ANNUAL PROJECT COSTS $90,015,000 1 Assumes 7 percent per annum interest rate. 2 Average Costs utilized 1) 1995 to 2003 actual historical costs incurred by the Rocky Reach Hydroelectric Project valued in 2003 dollars; 2) 2004 to 2043 projected costs were based on an internal Chelan PUD financial model with the most current data available valued in 2003 dollars; and 3) in conjunction with forecasted costs calculated based on methodology used in the Life Assessment Study for Rocky Reach Project created by Duke Engineering & Services, Inc., dated September 1999 and valued in 2003 dollars.

Besides these annual costs, after issuance of the new FERC license for this Project there will be additional costs for license compliance and implementation of protection, mitigation and enhancement (PME) measures that will be included in the new license terms and conditions. PME costs have not been included in Table D4-1. Those PME costs are described in Section 6 of the PDEA.

D5.0 AVERAGE ANNUAL VALUE OF THE ROCKY REACH HYDROELECTRIC PROJECT POWER

To determine the value of Project power benefits, this analysis assumed the value of generation from the Project is similar to the cost of purchasing the equivalent generation from Bonneville Power Administration (BPA) at its new resource rate for firm power.1 Using the average of the monthly high and low load hourly energy rates for BPA customers buying power for all five years of the 5-year rate period, Chelan PUD calculated an average energy value of 34.4 mills per kWh. Using BPA’s new resource capacity demand rate schedule to value the Project’s 1,225,000 kW of dependable capacity at $24 per kW per year (kW-yr) results in a power value of 39.5 mills per kWh. This does not consider any inflation or escalation effects.

Based on the developmental analysis conducted for the PDEA, the estimated annual replacement value of power from the Project is estimated to be $229,337,000 currently and $228,827,000 with

1 Bonneville Power Administration, 2002 Wholesale Power Rate Schedules (Revised December 2001).

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page D-2 June 30, 2004 Exhibit D: Costs and Financing proposed PMEs. The reduction in the annual replacement value from the Project is a result of reduced generation capabilities associated with the flow requirements to operate the juvenile fish bypass system.

For a public utility district, the sale of project power is one component of an overall strategy to obtain the lowest possible rates for its ratepayers. Chelan PUD routinely sells small blocks of power on the open market, as well as larger blocks under longer-term arrangements. Chelan PUD also sells energy to individual ratepayers, commercial users and other utilities. With the development over the past few years of an unregulated market for daily exchange of energy and capacity, the overall picture of what is the lowest cost alternative power source has changed dramatically for the utilities in the Pacific Northwest. The lowest cost alternative source on any particular day may be a one-day block of off-peak power purchased on the open market, but this power may or may not be available the next day at the same price. Longer-term purchase agreements provide more certainty but may command a higher price in the marketplace.

D6.0 SOURCES OF FINANCING AND REVENUES

Construction of the Rocky Reach Hydroelectric Project was financed through the sale of revenue bonds. The original Project, which cost $273,100,000, was financed with a $23,100,000 bond issue completed in November 1956 to allow for an early construction start and was followed by a completion bond issue of $250,000,000 in January 1958. Repayment of the revenue bonds was guaranteed through power sales contracts between the Chelan PUD and the purchasers of Project power: Puget Sound Energy, Inc.; Portland General Electric Company; PacifiCorp; Avista Corp.; Douglas PUD; and Alcoa Inc. Subsequent to the original contracts, the Chelan PUD and Alcoa Inc. entered into a long-term contract that assigned Alcoa Inc. share of the output to Chelan PUD’s distribution system. In return, the distribution system will provide 23 percent of the Project output to Alcoa Inc. The contracts expire on October 31, 2011. Table D6-1 shows the allocation of Rocky Reach Hydroelectric Project generation among its power purchasers.

Table D6-1: Allocation of Rocky Reach Hydroelectric Project Generation Purchaser Percent Share Puget Sound Energy 38.9 Alcoa Inc. 23.0 Portland General Electric Company 12.0 PacifiCorp 5.3 Avista Corp 2.9 Chelan PUD 17.9 ¾ Douglas PUD1 1 Chelan PUD has agreed to make available to Douglas PUD, from Chelan PUD’s share of Rocky Reach Hydroelectric Project energy, an amount of energy equal to 2.77 percent of the output.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page D-3 SS/3959 Exhibit D: Costs and Financing

The Project output is sold to the power purchaser’s on a “cost-of-service” basis. Each purchaser pays its respective share of all costs related to the Project, including debt service, and is then entitled to its respective share of the output of the Project. These agreements guarantee demand for all of the Project’s production and represent an ongoing, stable operating revenue stream. Utilizing the cost of service basis, Project annual average operating revenues will equal the average annual operating costs.

Chelan PUD’s distribution system’s local load requirements exceed its respective share of the Project output. The remaining local load requirement is supplied by the Lake Chelan and Rock Island Hydroelectric projects and other power purchase agreements. To balance the distribution system’s power resources and demand for those power resources, Chelan PUD enters into forward power sales agreements when resources exceed demand, and forward power purchase agreements when demand exceeds the resources estimated to be available. The distribution system provides electric service to roughly 38,000 retail customers in Chelan County, Washington.

Capital financing for the Project is derived from revenue bonds issued by Chelan PUD through its consolidated system and internal loans from the consolidated system to Chelan PUD’s various utility systems. The consolidated system is a division of Chelan PUD, which is accounted for separately from the Rocky Reach system. Pursuant to a 1987 agreement with the power purchasers, Chelan PUD issues bonds through the consolidated system and loans the proceeds to Chelan PUD’s various utility systems, including the Rocky Reach Hydroelectric Project and Chelan PUD’s electric distribution system, and its water and wastewater systems, achieving reduced debt-issuance costs and lower interest rates. Revenue bonds can also be issued by Chelan PUD through the Rocky Reach Hydroelectric Project.

Bond ratings, as of December 31, 2003, for Chelan PUD:

Moody's Standard & Poor's Fitch IBCA Bond Rating Bond Rating Bond Rating

Aa2 AA AA

Moody’s, Standard & Poor’s and Fitch IBCA affirmed these ratings in publications dated March 30, 2004, April 9, 2004, and March 26, 2004, respectively. As of December 31, 2003, the Rocky Reach Hydroelectric Project’s net book value for the utility plant totaled $464,401,000 and current asset book values were $4,048,000.

Revenues are generated by Chelan PUD through retail and commercial sales of electricity to customers within its service territory, which is Chelan County, Washington. This includes sale of electricity generated by the Rocky Reach Hydroelectric Project, as well as energy Chelan PUD obtains from a variety of other sources to meet the energy needs of its ratepayers. Chelan PUD is a municipal corporation organized pursuant to the Washington State Constitution and statutes.2 It

2 Chelan PUD generally sets its rates and charges in a manner to cover its operating expenses, debt service and other costs, and to provide desired operating, capital and other reserves.

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page D-4 June 30, 2004 Exhibit D: Costs and Financing is owned by the ratepayers within Chelan County. Rates for energy sales are set by the Board of Commissioners, an elected body consisting of five members. Rates are set in accordance with a rate structure and public utility policies so that, in general, cost of service is just covered by revenue, with some allowances for contingency and reserves, and no profit. Therefore, revenues should always be available to meet the costs identified in the paragraphs above via the rate- setting authority of Chelan PUD.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page D-5 SS/3959

EXHIBIT E: ENVIRONMENTAL REPORT

(Refer to the Preliminary Draft Environmental Assessment, June 30, 2004)

EXHIBIT F: GENERAL PROJECT DRAWINGS

Table of Contents List of Tables

TABLE OF CONTENTS

EXHIBIT F: GENERAL PROJECT DRAWINGS...... F-1

F1.0 Exhibit Overview and Information about Critical Energy Infrastructure Information Designation of this Material...... F-1

LIST OF TABLES

Table F-1: Exhibit F General Project Drawing List for the Rocky Reach Hydroelectric Project ...... F-2

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page F-i SS/3959

Exhibit F: General Project Drawings

F1.0 EXHIBIT OVERVIEW AND INFORMATION ABOUT CRITICAL ENERGY INFRASTRUCTURE INFORMATION DESIGNATION OF THIS MATERIAL

This exhibit contains drawings of the principal Rocky Reach Hydroelectric Project works. The Exhibit F drawings show all major Project structures in sufficient detail to provide a full understanding of the Project, including plans, elevations and sections. On February 21, 2003, FERC issued a Final Rule (Order 630) amending 18 CFR § 388 and prescribing specific requirements to segregate and identify Critical Energy Infrastructure Information (CEII) filed as part of a hydropower license application. The Final Rule describes CEII in 18 CFR § 388.113(c) as information about proposed or existing critical infrastructure that:

(i) Relates to the production, generation, transportation, transmission, or distribution of energy; (ii) Could be useful to a person in planning an attack on critical infrastructure; (iii) Is exempt from mandatory disclosure under the Freedom of Information Act, 5 U.S.C. 552; and (iv) Does not simply give the location of the critical infrastructure.

Chelan PUD is requesting privileged treatment of Exhibit F General Design Drawings since they meet the criteria summarized above. In accordance with 18 CFR § 388.112 (b), as amended by Order 630, Exhibit F General Design Drawings appear in a separate appendix (Appendix A) to this license application. Table F-1 is a list of the Exhibit F drawings that have been filed with the FERC.

Members of the public interested in requesting CEII classified materials may contact Chelan PUD’s public information officer for more information.

Public Information Officer 327 North Wenatchee Avenue Wenatchee, WA 98801 (509) 663-8121

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page F-1 SS/3959 Exhibit F: General Project Drawings

Table F-1: Exhibit F General Project Drawing List for the Rocky Reach Hydroelectric Project

Sheet Number Description Sheet 1 of 6 ...... General Plan of Development Sheet 2 of 6 ...... Powerhouse Cross Section Units 1-7 Sheet 3 of 6 ...... Powerhouse Cross Section Units 8-11 Sheet 4 of 6 ...... Sections Spillway and Forebay Wall Sheet 5 of 6 ...... Plan and Sections Cutoff at Eastbank Abutment Sheet 6 of 6 ...... General Plan with Juvenile Fish Bypass System

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page F-2 June 30, 2004 EXHIBIT G: PROJECT MAPS

Table of Contents List of Tables

TABLE OF CONTENTS

EXHIBIT G: PROJECT MAPS...... G-1

G1.0 Exhibit Overview and Information about Non-Internet Public Designation of this Material ...... G-1

LIST OF TABLES

Table G-1: Exhibit G Project Map List for the Rocky Reach Hydroelectric Project...... G-1

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page G-i SS/3959

Exhibit G: Project Maps

G1.0 EXHIBIT OVERVIEW AND INFORMATION ABOUT NON-INTERNET PUBLIC DESIGNATION OF THIS MATERIAL

This exhibit1 contains maps of the Rocky Reach Hydroelectric Project vicinity, Project boundary, and federal and non-federal land ownership with the Project boundary. Due to FERC’s recent ruling on categorization and handling of specific types of project information, these maps appear in a separate appendix (Appendix B) to this license application. Table G-1 is a list of the Exhibit G maps that have been filed with FERC.

This material is labeled “Non-Internet Public,” which means that the information will not be available to the public through FERC’s Web site or Chelan PUD’s Web site, including CDs. It will, however, be publicly available upon request through FERC’s Public Reference Room or Chelan PUD’s Public Information Library. The public may also request this information directly from Chelan PUD by contacting the utility’s public information officer.

Public Information Officer 327 North Wenatchee Avenue Wenatchee, WA 98801 (509) 663-8121

Table G-1: Exhibit G Project Map List for the Rocky Reach Hydroelectric Project

1 Refer to Table H-2 in Exhibit H that lists parcels of land being secured by Chelan PUD to amend flowage easements.

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page G-1 SS/3959 Exhibit G: Project Maps

Table G-1: Exhibit G Project Map List for the Rocky Reach Hydroelectric Project

Sheet Number Description

Sheet 11 of 16 (including 10 supporting sheets) ...... T. 26 N. R. 22 E.W.M. Sections 1,2 T. 26 N. R. 23 E.W.M. Section 5, 6 T. 27 N. R. 23 E.W.M. Sections 31,32 Sheet 12 of 16 (including 10 supporting sheets) ...... T. 27 N. R. 23 E.W.M. Sections 20,21,29,30-32 Sheet 13 of 16 (including 12 supporting sheets) ...... T. 27 N. R. 23 E.W.M. Sections 9,10,16,17 Sheet 14 of 16 (including 9 supporting sheets)...... T. 27 N. R. 23 E.W.M. Section 2,3 T. 28 N. R. 23 E.W.M. Sections 25,26 Sheet 15 of 16 (including 11 supporting sheets) ...... T. 28 N. R. 23 E.W.M. Sections 13,18,19,23,24 Sheet 16 of 16...... T. 28 N. R. 23 E.W.M. Section 12 T. 28 N. R. 24 E.W.M. Section 7

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page G-2 June 30, 2004 EXHIBIT H: SUPPLEMENTAL INFORMATION

Table of Contents

TABLE OF CONTENTS

EXHIBIT H: SUPPLEMENTAL INFORMATION ...... H-1

H2.0 Chelan PUD’s Need for Power Generated by the Rocky Reach Hydroelectric Project...... H-7 H2.1 General Description of Power Needs...... H-7

H3.0 Alternative Sources of Power ...... H-10 H3.1 Power Replacement Costs ...... H-10

H4.0 Effect on Chelan PUD Industrial Facilities ...... H-12

H5.0 Indian Tribal Need for Electricity...... H-12

H6.0 Transmission System Impacts...... H-13 H6.1 Effect of Redistribution of Power Flows if License is not Renewed...... H-13 H6.2 Advantages of Chelan PUD’s Transmission System ...... H-13 H6.3 Single-Line Diagrams ...... H-13

H7.0 Plans to Modify Rocky Reach Hydroelectric Project Operations and Conformance with Comprehensive Plans ...... H-14

H8.0 Conformance of the Existing Rocky Reach Hydroelectric Project with Comprehensive Plans ...... H-15

H9.0 Financial and Personnel Resources...... H-21 H9.1 Financial Resources...... H-21 H9.2 Personnel Resources...... H-22

H10.0 Property Boundary Expansion...... H-23

H11.0 Electricity Consumption Efficiency Improvement Program ...... H-25 H11.1 Customer Programs...... H-25 H11.2 Regulatory Compliance...... H-28

H12.0 Indian Tribe Mailing List ...... H-29

H13.0 Management, Operation and Maintenance Measures ...... H-30 H13.1 Operation During Floods ...... H-30 H13.2 Warning Devices...... H-30 H13.3 Security Enhancements ...... H-30 H13.4 Changes That Might Affect Emergency Action Plan ...... H-31 H13.5 Monitoring Devices to Detect Structural Movement ...... H-32 H13.6 Safety Record...... H-32

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page H-i SS/3959 Table of Contents

H14.0 Description of Current Operations ...... H-32

H15.0 History of the Project and Operation and Maintenance Upgrades ...... H-33

H16.0 Generation Lost Due to Unscheduled Outages ...... H-34

H17.0 Compliance Record ...... H-34

H18.0 Actions Taken Affecting the Public...... H-35

H19.0 Impact on Expenses if License is Transferred...... H-36

H20.0 Annual Fees...... H-37

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page H-ii June 30, 2004 List of Tables List of Figures

LIST OF TABLES

Table H-1: FERC List of Comprehensive Plans Affecting the Rocky Reach Hydroelectric Project ...... H-15 Table H-2: Amended Rocky Reach Hydroelectric Project Boundary Survey (Chelan and Douglas counties)...... H-23 Table H-3: Annual Charges for Use of Federal Lands, 1981-Present...... H-37

LIST OF FIGURES

Figure H-1: Usable Storage in the Mid-Columbia Hydroelectric Projects ...... H-5 Figure H-2: Rocky Reach Hydroelectric Project Headwater Duration Curve ...... H-6

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page H-iii SS/3959

Exhibit H: Supplemental Information

H1.0 EFFICIENCY AND RELIABILITY

Public Utility District No. 1 of Chelan County (Chelan PUD) has more than 40 years of experience operating and maintaining the Rocky Reach Hydroelectric Project, efficiently and reliably providing electricity at low cost to customers in the Pacific Northwest and in other western states.

In 2001 and 2002, Chelan PUD installed a computer optimization program at the Rocky Reach Hydroelectric Project. This program is called WaterView. WaterView uses the unit performance curves to optimize the generation at the plant by having the units generate at their most efficient point. Extensive testing was done with Acoustic Accentilation to determine the most accurate unit performance curves.

The unit availability for the last 16 years (1986-2001) has averaged 87 percent. This number also reflects having one unit down (out of 11 units) most of the time for rehabilitation work on all of the turbines since September 1995.

In addition to the 1,237.4 MW Rocky Reach Hydroelectric Project, Chelan PUD also owns and operates the Rock Island Hydroelectric Project (623.2 MW) on the Columbia River and the Lake Chelan Hydroelectric Project (48 MW), both under jurisdiction of FERC. Chelan PUD acquired the Rock Island and Lake Chelan Hydroelectric projects through purchases, but it constructed the Rocky Reach Hydroelectric Project in 1956-1961. Chelan PUD expects to continue operating all three projects safely and reliably into the foreseeable future.

H1.1 PLANS FOR INCREASED CAPACITY OR GENERATION When the Rocky Reach Hydroelectric Project was originally constructed, seven generating units were installed. In 1969, installation of four more units began. The Project currently has 11 generating units. Chelan PUD filed an application with FERC on May 14, 2001, to install a microturbine of 800 kW in the attraction water conduit for adult fishways. FERC issued an order approving the installation on March 14, 2002. FERC issued an order amending the license and authorizing installation on October 27, 2003. Chelan PUD expects installation to be completed by April 2007. There are no plans to add any additional units.

Chelan PUD filed an application with FERC on September 19, 1991, to amend the license and increase the capacity and energy of the Project by raising the normal maximum headwater from elevation 707 feet to elevation 710 feet, a three-foot pool raise. On November 18, 1996, FERC issued an order denying the amendment.

On May 24, 2001, Chelan PUD filed an application with FERC to temporarily raise the pool elevation by one foot, to increase the capacity and energy during the power shortage in 2001. The FERC order authorizing the temporary pool raise was issued September 13, 2001. Chelan

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PUD accepted the order and submitted plans on October 15, 2001, but decided not to implement because the power shortage appeared to be over.

H1.2 COORDINATION WITH OTHER WATER RESOURCE PROJECTS Rocky Reach Hydroelectric Project is a run-of-river Project and has very little storage, compared to the Grand Coulee Hydroelectric Project operated by the U.S. Bureau of Reclamation. The water released out of the Grand Coulee Hydroelectric Project is passed by the Rocky Reach Hydroelectric Project on a daily basis. The seven hydroelectric projects in the mid-Columbia reach (Grand Coulee, Chief Joseph, Wells, Rocky Reach, Rock Island, Wanapum and Priest Rapids) are controlled by the Mid-Columbia Hourly Coordination Agreement. This coordination is described in more detail in the following Section H1.3.

The Rocky Reach Hydroelectric Project, along with other projects in the mid-Columbia, helps support the flows needed for fish survival at Vernita Bar, an important salmonid spawning area below the Priest Rapids Hydroelectric Project. The Rocky Reach Hydroelectric Project helps to support the minimum flows that are needed at Vernita Bar and can be drafted an extra foot to help prevent stranding of salmonids in the Hanford Reach, which is below the Priest Rapids Hydroelectric Project.

H1.3 COORDINATION WITH OTHER ELECTRIC SYSTEMS Several factors affect or control the power and hydraulic operations of the Rocky Reach Hydroelectric Project. These factors include the Pacific Northwest Coordination Agreement (PNCA), flood control operations under the direction of the U.S. Corps of Engineers and the Mid-Columbia Hourly Coordination Agreement.

H1.3.1 Pacific Northwest Coordination Agreement and Columbia River Treaty The PNCA is a product of the Columbia River Treaty with Canada. The Columbia River Treaty outlines the calculation of the downstream benefits from the treaty projects and defines the treaty projects’ operation. The PNCA incorporates the treaty operation into the planning process to determine the Northwest’s firm hydroelectric capability while insuring an overall operation that realizes the treaty’s downstream benefits. The PNCA establishes the means by which all of the generation and storage projects in the Columbia River system can be cooperatively operated to make the most efficient use of the water possible (given certain constraints) to meet the electrical loads of the region’s utilities.

The PNCA encompasses both federal and non-federal projects in the region. The PNCA also provides the means by which the Pacific Northwest determines how much firm (dependable) power can be generated by the hydroelectric system after meeting non-power requirements.

H1.3.2 Non-Power Constraints Thorough inventory and accounting are kept regarding all of the constraints imposed by federal licenses or Congressional authorizations for each project in the system. According to the PNCA,

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these constraints are given priority in establishing the annual operating scheme of the region’s projects.

H1.3.3 Water Forecasting The use of a water accounting system is an important element in deciding how water in the system is used to meet the multiple needs of its users. To determine the amount of water available to do this requires accounting for water left in the storage reservoirs at the end of a water year and an estimate of how much water is expected to be available in the following water year.

Snow surveys form the basis for compiling an estimate of the amount of water expected to enter the system during the spring and summer runoff period. These surveys are conducted each year in the late winter and early spring months.

H1.3.4 Load Forecasts Load forecasts are prepared to estimate the total load within the region and the monthly distribution of that load. These estimates of load then form the basis for how water will be used to generate power to meet the load.

H1.3.5 Allocation of Water Among Months Procedures adopted pursuant to the PNCA provide for the allocation of water among the parties to the PNCA and their respective projects. The procedure also allocates water among the months of the year. The allocation is optimized for meeting load as if there were but a single owner and operator of all of the storage and generating projects of the system. This process is called the annual regulation and, as the reference implies, is conducted every year.

The end product of the PNCA is the computation of how much firm (dependable) power can be expected from the region’s hydroelectric system, assuming there could be a reoccurrence of the worst drought on record. This amount of power is called Firm Energy Load Carrying Capability (FELCC). There are opportunities in this process to shape water among the months of the year to provide for the most economical operation of the system to meet utility needs.

The first priority in allocating water during the current planning period, after non-power constraints are met, is to meet firm load in the region. The second priority is to refill the reservoirs to full at the end of the current water year. The third priority is to develop as much non-firm or secondary power as possible, given all of the other constraints described above.

Twice a month, an actual energy regulation is run to determine the energy rights and obligations of the PNCA parties for the month. The actual energy regulation is run with current information on non-power constraints, reservoir levels and stream flows.

H1.3.6 Flood Control Operations The Project license provides for drawing down the reservoir to the 703-foot elevation in anticipation of advancing floodwaters. Chelan PUD does not initiate this drawdown for flood control until signaled to do so by the U.S. Army Corps of Engineers (COE). When the

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floodwaters do arrive, the COE can order reservoir elevation to be operated at 710-foot elevation. The COE would coordinate this drawdown and/or filling of the reservoir with all of its other flood control operations and obligations.

H1.3.7 Mid-Columbia Hourly Coordination The Mid-Columbia Hourly Coordination Agreement (HCA) renders real-time control of the seven federal and non-federal projects’ operations in the mid-Columbia reach of the Columbia River system (Grand Coulee, Chief Joseph, Wells, Rocky Reach, Rock Island, Wanapum, and Priest Rapids). Where the PNCA provides an allocation of water by month to meet loads, the HCA governs the use of water on an hourly and shorter-term basis among the seven mid- Columbia projects. The object is to make the best use of the water, generating units and physical characteristics of reservoirs at each project to meet loads. This system is built around the idea of meeting load as if there were but a single load and the projects were under the control of a single owner.

H1.3.8 Before Hourly Coordination Before hourly coordination in the mid-Columbia reach of the river, project operators were forced to use all of the available pondage at each project to meet load. Load at each project was dependent on who the power purchasers were at a given project and what its load shape might be at a particular time. There was a pond account (calculated hourly), which was the sum of the water in the reservoir, plus the inflow, minus the requests made at the project to meet load. Purchasers shared in the pond account in proportion (slice of the pie) to their share of project power. Purchasers with rights to several mid-Columbia projects had to send individual requests to each project. The purchaser then had to keep both separate and collective pondage accounts to maximize that share of the projects. Usable storage at each of the projects varies notably (Figure H-1). Figure H-1 shows the relative storage volume of each reservoir.

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GRAND COULEE 5,185,500 Acre Feet

CHIEF JOSEPH 192,400 Acre Feet

WELLS 98,000 Acre Feet

ROCKY REACH 36,400 Acre Feet ROCK ISLAND 10,000 Acre Feet

WANAPUM 160,000 Acre Feet

PRIEST RAPIDS 44,500 Acre Feet

Figure H-1: Usable Storage in the Mid-Columbia Hydroelectric Projects

Project operation prior to hourly coordination involved a large amount of guesswork because one operator did not know what other operators might be doing. Because of these difficulties, there was no time before hourly coordination when all projects in the system peaked simultaneously.

Also, before hourly coordination, reservoirs were physically drawn down to meet requests in excess of inflow. Generally, this occurred from Monday through Friday, with an attempt to refill the reservoirs over the weekend. Bonneville Power Administration (BPA), with Grand Coulee and Chief Joseph hydroelectric projects under its control, would attempt to pass water from its upstream projects to McNary Hydroelectric Project (below Priest Rapids) to meet Monday heavy loads. Increased releases by BPA simply made it easier for non-federal projects to refill their reservoirs, thus frustrating BPA’s attempts to get water downstream until the ponds were full.

Hourly coordination is a modification of the foregoing operation designed to hold reservoirs full through coordination of generation at all projects, combined with an accounting system designed to maintain the rights and obligations of all parties.

H1.3.9 Objective – Keep the Reservoirs Full Run-of-the-river projects operate most efficiently if the reservoirs are kept full because of the ability to maintain the highest head possible, thereby generating the greatest amount of power with the water available. Reservoirs are kept full if inflow and outflow are equalized, a typical characteristic of run-of-the-river projects. This equilibrated system approach is enabled through coordination of flows through the seven projects by ramping flows up and down roughly in unison. Enabling this process begins with the release of initial (priming) flows from the upstream project with a large amount of usable storage. It is worth noting that the Grand Coulee

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Hydroelectric Project has over 5,000,000 acre-feet of usable storage, 80,000 of which is in the top foot. Sustaining flows for daily power operations results in little impact to the headwater elevations at the Grand Coulee Hydroelectric Project.

H1.3.10 Flow versus Pondage Since it is possible and desirable to maintain the reservoirs in a full condition, fluctuations in load at each project are met with changes in flow. If adequate water is released from the upstream storage project to sustain the required flow, there is never a need to use the pondage (storage) which is available at the downstream projects. There remains, however, the need to reserve the usable storage at each of these projects to accommodate non-power constraints and anomalies that can result from extreme weather conditions in the region which strain the power systems’ ability to meet loads.

H1.3.11 Headwater Duration Curve A headwater duration curve has been compiled to illustrate the frequency of time the reservoir is at or above certain points. Considering the degree to which electrical loads vary during the day and from day to day, changes in the headwater elevation at the Rocky Reach Hydroelectric Project are remarkably small as shown by the curve in Figure H-2.

Rocky Reach Headwater 1992 - 2001 (10 years)

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 703 703.5 704 704.5 705 705.5 706 706.5 707 707.5 708

Elevation Above Mean Sea Level

Figure H-2: Rocky Reach Hydroelectric Project Headwater Duration Curve

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H2.0 CHELAN PUD’S NEED FOR POWER GENERATED BY THE ROCKY REACH HYDROELECTRIC PROJECT

H2.1 GENERAL DESCRIPTION OF POWER NEEDS Chelan PUD now serves approximately 38,000 retail customer accounts within Chelan County, including residential, irrigation, frost protection, commercial and industrial accounts. The load represented by these customers amounts to more than 1.3 million MWh annually.

The Rocky Reach Hydroelectric Project has historically produced, on average, 5,923,000 MWh (1980 – 2001) of energy each year. Based on current accounting methods, the average historical annual cost of power produced by the Project has been approximately $63 million, or approximately $12.15 per MWh, for the period 2000 to 2003 (average generation for the period 2000 to 2003 was approximately 5,180,000 MWh, due to lower than average historic water conditions). Based on Chelan PUD’s computer model, the estimated average annual output of the Project under current conditions is 5,806,000 MWh. This figure represents average annual generation projected under current regulations for the river, using the 60 years of hydrologic data (1928 to 1988) chosen by the Pacific Northwest Utilities Conference Committee to produce the Northwest Regional Forecast, dated June 1, 2001.

Approximately two-thirds of the total power generated by the Project is transmitted to other areas in the Pacific Northwest. Repayment of the revenue bonds sold to finance the Project is guaranteed through power sales contracts between the Chelan PUD and the purchasers of Rocky Reach power: PacifiCorp; Portland General Electric Company; Puget Sound Energy; Avista Corp.; Alcoa Inc., which has a plant just south of Wenatchee; Douglas PUD; and Chelan PUD’s electric distribution system. More than seven million Northwest electric customers benefit from the low-cost energy produced by Chelan PUD.

The Rocky Reach Hydroelectric Project is located in the Northwest Power Pool (NWPP) subregion of the Western Electric Coordinating Council (WECC) region of the North American Electric Reliability Council (NERC). The summer peak demand growth rate for the WECC1 region as a whole is projected to average 1.9 percent over the 10-year planning period 2003-2012. A somewhat lower growth rate of 1.6 percent is projected for the winter peaking NWPP area. Energy load growth rates over these same periods are projected at 2.0 percent and 1.7 percent, respectively, for WSCC and NWPP.

H2.1.1 Load Management Chelan PUD is a participant in the Northwest Power Pool Reserve sharing program. Under normal circumstances, Chelan PUD maintains reserve margins through the use of its own hydro generation. Under some conditions, it is necessary for Chelan PUD to purchase reserves from

1 See WSCC (Western Systems Coordinating Council), 10-Year Coordinated Plan Summary 2001-2010, August 2001. Note: WSCC is the predecessor organization to the WECC (Western Electricity Coordinating Council), created on April 18, 2002.

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other suppliers to meet its requirements. Under extreme situations involving the forced outage of the generating units, Chelan PUD will call upon other participants in the Northwest Power Pool Reserve sharing program. Margins are maintained as per the National Electric Reliability Council, Western Systems Coordinating Council and Northwest Power Pool standards to ensure reliable operation of the power system.

Chelan PUD does not operate any automated load management at this time. Chelan PUD has time-of-day metering on most large industrial customers, which assists with demand management during peak load periods. During the energy crisis in 2000-01, Chelan PUD had a program to buy back energy from several large customers to reduce both peak and overall energy consumption. Chelan PUD is currently working to institutionalize this arrangement so it can be used to manage load in the future.

H2.1.2 Projected Energy Needs Chelan PUD has a 99-percent hydro-based resource portfolio. The remaining 1 percent is a wind power project from which Chelan PUD purchases output. Given the nature of the resource, generation output varies considerably from year to year, primarily depending on hydrologic conditions.

Chelan PUD’s estimated average load for 2004 is 210 average MW. Chelan PUD’s expected average resources available under critical water conditions (as defined by the PNCA) is 208 average MW; and in average water conditions, 288 average MW. In dry water conditions, Chelan PUD is deficit with the current resource mix, including the Rocky Reach Hydroelectric Project. In good water conditions, Chelan PUD is deficit for several months in the winter due to the high concentration of electric space-heating load and lack of natural gas or alternative fuel service in the area.

Chelan PUD will be withdrawing additional shares from the Rock Island Hydroelectric Project to serve load growth in Chelan County. Load is projected to grow to 2,205,000 MWh in the next 10 years. Even with the additional withdrawals at the maximum rate allowed by the contracts, Chelan PUD remains deficit in dry water conditions and deficit in several months during the winter even in good water years. Under any circumstances, the energy and capacity from the Rocky Reach Hydroelectric Project are needed to serve Chelan County load requirements.

H2.1.3 Effect of Loss of Project Generation Based on an analysis conducted by the Northwest Power Pool,2 the region currently has a balance of generation and demand.

In the view of the present overall power conditions, including the forecasted water condition, the area represented by the Power Pool is estimating that it will be able to meet firm loads including the required reserve. Should any resources be lost to the area beyond the required Contingency Reserve margin and/or loads are greater than expected as a

2 Northwest Power Pool Area Assessment of Reliability and Adequacy 2003-2004 Winter Operating Conditions, September 17, 2003, page 3.

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result of extreme weather, the Power Pool area may have to look to alternatives which may include emergency measures to meet obligations.2

The effect if the license is not granted for the Rocky Reach Hydroelectric Project on the regional and local need for power manifests itself through the loss of capacity and energy. The loss of power would significantly impact the need for power in the Northwest.

A loss of energy and capacity would be felt during NWPP transmission system emergencies when the generation is needed to stabilize the region’s transmission system or to recover from an outage. The Project has a significant impact on the reliability of the transmission system. This is due to the significant size of the Project capacity and energy output, its location within the NWPP’s transmission system, and its location relative to the location of the load being served.

The need for Rocky Reach Hydroelectric Project power is based on the fact that the Project is a low-cost, emission-free, renewable generation resource, which contributes to system reliability and a diversified generation mix. If the electricity generating capacity of the Project were replaced with fossil-fueled resources, greenhouse gas emissions could increase by 9,118,000 metric tons of carbon per year.

If the new license for the Rocky Reach Hydroelectric Project is not granted, the options available to Chelan PUD will either be to buy energy from the market or construct new resources to replace the lost generation. For market-based purchases, the probability of acquiring resources is difficult to evaluate. The primary source of new generation has been independent power producers. If the producers do not construct additional generation in the Pacific Northwest, and if load continues to grow, conditions could develop where there would not be enough transfer capability from other areas outside the Northwest and from internal generation to serve load. Replacement power may not be available at any price under some severe-winter scenarios, either due to a shortage of generation or from lack of transfer capability.

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H3.0 ALTERNATIVE SOURCES OF POWER

The reasonable alternatives to replace the generation of the Rocky Reach Hydroelectric Project include gas-fired combustion turbines, coal-fired thermal generation and wind power. Power generation alternatives that have been rejected are: nuclear, due to the uncertain regulatory environment and cost; and geothermal and landfill gas, as there is insufficient supply in the west to expect to reasonably cover the loss of the Rocky Reach Hydroelectric Project.

H3.1 POWER REPLACEMENT COSTS The primary alternative for replacing the Rocky Reach Hydroelectric Project generation would be to purchase contract generation from the market in a quantity sufficient to cover the lost generation. Market estimates for 2004 are $40 per MWh for a flat 24-hour-per-day purchase. Calculations based on this market estimate were made using Chelan PUD’s computer model and hydrologic data for the Project. The resulting estimate predicts that over a year’s time, the total cost of this purchase would be over $230 million in 2004 and would increase over time as the market changes.

If Chelan PUD were to purchase generation over the long term, it is assumed that the value of generation would be similar to the cost of purchasing the equivalent generation from BPA at its new resource rate for firm power.3 For this reason, calculations to determine the value of Project power benefits in Exhibit D of the License Application and Section 6 of the PDEA were based on this BPA rate (as opposed to the method of calculation described above). Using the average of the monthly high and low load hourly energy rates for BPA customers buying power for all five years of the five-year rate period, Chelan PUD calculates an average energy value of 34.4 mills per kWh. Using BPA’s new resource capacity demand rate schedule to value the Project’s 1,225,000 kW of dependable capacity at $24 per kW per year (kW-yr) results in a power value of 39.5 mills per kWh ($39.5 per MWh). Based on this method of calculation, over a year’s time, the total cost of this purchase would be approximately $230 million in 2004. This does not consider any inflation or escalation effects.

The next best power replacement alternative would be as a participant or contract output purchaser of a natural-gas-fired unit. Replacement cost of generation assuming natural gas prices averaging $5.504 per one thousand cubic feet (Mcf) is an annual average power price5 of $60 per MWh. There is substantial price risk regarding the future cost of natural gas. Over a year’s time, the total cost of this replacement is estimated at approximately $350 million in 2004, escalating with the forward price of gas. The forced outage rate of gas-fired plants is higher than hydro- based generation, so this alternative would have a negative impact on reliability and on Chelan PUD’s ability to maintain reserve margins.

3 Bonneville Power Administration, 2002 Wholesale Power Rate Schedules (Revised December 2001). 4 Current estimate of the long-term value of natural gas. 5 Based on building and operating a combined-cycle combustion turbine and a single-cycle combustion turbine for the super peak periods. The power price includes both capacity and energy.

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Prices of power and the commodities that would be used to fuel new generation have been volatile in the last several years. At this point, the consensus least-cost replacement generation would be natural gas. Natural gas prices have been highly variable recently, ranging from less than $2 per one thousand cubic feet (Mcf), to more than $7 per Mcf. Replacement cost of generation assuming natural gas prices averaging $5.50 per Mcf is an annual average power price of $60 per MWh. This is roughly five times over the current cost of production from the Rocky Reach Hydroelectric Project and would increase power costs to the consumer by $280 million per year.

Electricity market conditions have also been highly volatile in the last few years. Over the last three years, Dow Jones Mid-C Index monthly average prices have ranged from $9 to over $400 per MWh. The actual future market price cannot be predicted with any degree of certainty. If however, future power prices ranged from one to fives times the current market price, the cost to replace Rocky Reach Hydroelectric Project power could vary from more than $230 million to more than $1.1 billion per year.

H3.1.1 Effects of Alternative Sources of Capacity and Generation The loss of generation from the Rocky Reach Hydroelectric Project would result in a large rate increase for Chelan PUD’s customers. The exact amount of the increase is dependent on market conditions and other factors that are impossible to predict at this time.

This loss of generation would also have an effect on Chelan PUD’s ability to serve load in Chelan County, as well as its ability to meet power sales contract obligations. Moreover, without the voltage support provided by the Project, critical low-voltage situations could develop that could cause equipment damage and outages throughout the Pacific Northwest.

H3.1.2 Effects of Alternative Sources on Direct Providers Rate increases and a potential decrease in reliability could negatively affect customers if the Rocky Reach Hydroelectric Project were replaced by another source of energy.

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H4.0 EFFECT ON CHELAN PUD INDUSTRIAL FACILITIES

Alcoa Inc., an aluminum manufacturer, began developing its Wenatchee Works site in May 1951 and began producing its first metal a year later. The company originally located the plant in Chelan County to benefit from the low cost power available after construction of a second powerhouse at the Rock Island Hydroelectric Project, which was completed in 1953. In later years, Alcoa Inc. signed a long-term power contract with Chelan PUD for 23 percent of the output from the Rocky Reach Hydroelectric Project.

Alcoa Inc. has the capacity to operate four pot lines, employing hundreds of workers. When the market price of aluminum drops below certain levels, pot lines may be idled or curtailed if the price of electricity is too high or if the electricity supply is restricted. Without the electricity from the Project, the price of power would increase, the available electricity supply would be restricted, and the likelihood of curtailed operations in production at the aluminum smelter would be high. The resulting layoff of hundreds of skilled workers in high-paying jobs would affect the local economy significantly. In 2001, Alcoa Inc. was idled because of low aluminum prices coupled with the opportunity for the plant to sell its portion of Rocky Reach energy at higher market prices. When the plant will be restarted is yet to be determined. Workers are still being paid through a unique revenue sharing agreement with Chelan PUD regarding power sales of Alcoa Inc.’s portion of Rocky Reach output.

In addition, fruit packing and processing industries – long the mainstay of the Chelan County economy – are enduring highly competitive economic conditions as world competition increases from Asia, South America and Australia. Any increase in the price of power to run the fruit processing operations would result in a negative impact on the cost of fruit grown in the Chelan County region, thereby further impacting the local economy negatively.

H5.0 INDIAN TRIBAL NEED FOR ELECTRICITY

Chelan PUD is not an American Indian tribe.

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H6.0 TRANSMISSION SYSTEM IMPACTS

Chelan PUD owns and operates transmission facilities necessary to integrate and optimize the operations of its hydroelectric generation plants. Because Chelan is a non-jurisdictional municipal entity, these generation integration facilities are not subject to the jurisdiction of the Commission under Part II of the Federal Power Act (FPA). Additionally, Chelan PUD has not voluntarily consented to limited Commission jurisdiction over these facilities under Part II of the FPA through the submission of an Open Access Transmission Tariff to the Commission.

H6.1 EFFECT OF REDISTRIBUTION OF POWER FLOWS IF LICENSE IS NOT RENEWED The Rocky Reach Hydroelectric Project powerhouse is close to Chelan PUD’s major loads within Chelan County. The remaining power generated at this plant (62 percent) serves the electrical needs outside the Chelan PUD service area, using five 230 kV transmission lines connected to the Rocky Reach Hydroelectric Project switchyard.

Two of these 230 kV lines are owned by Chelan PUD, one line is owned by Puget Sound Energy, and two lines are owned by the BPA. These five lines are used to deliver power to the current power purchasers, which include Puget Sound Energy, Portland General Electric, Pacific Corp., Avista Corp., Douglas PUD and Alcoa Inc. There are four distribution lines connected to two 230 KV to 115 kV autobank transformers in the Rocky Reach Hydroelectric Project switchyard. These four lines supply power to Chelan PUD’s distribution system.

The Rocky Reach Hydroelectric Project generation not only serves the Chelan County area but also supplies the bulk of the voltage support for this area. Loss of this generation would not only force higher import power flows on the existing transmission lines but would also require voltage support to come from outside the immediate area. This, in turn, would lead to greater and more frequent voltage fluctuations, overall lower system voltages and a significant increase in overall system transmission losses. All of these potential factors represent a significant impact in terms of the economical and reliable operation of the Chelan PUD transmission system, especially if additional investment in corrective equipment is needed to counter these effects.

H6.2 ADVANTAGES OF CHELAN PUD’S TRANSMISSION SYSTEM The advantages of the Chelan PUD transmission system are described in Section H6.1.

H6.3 SINGLE-LINE DIAGRAMS Detailed single-line diagrams of the existing electrical facilities at the Rocky Reach Hydroelectric Project are contained in Exhibit F of this application. (These drawings have been designated Critical Energy Infrastructure Information and have been filed as such as a separate appendix to this license application.) None of Chelan PUD’s transmission and distribution

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page H-13 SS/3959 Exhibit H: Supplemental Information system is considered primary to the Rocky Reach Hydroelectric Project, and therefore none of it is included as part of this license application. Project power is commingled with other power sources once it leaves the switchyard.

H7.0 PLANS TO MODIFY ROCKY REACH HYDROELECTRIC PROJECT OPERATIONS AND CONFORMANCE WITH COMPREHENSIVE PLANS

Chelan PUD’s plan to modify project operations, in accordance with the agreement reached with all relicensing parties, conforms with the comprehensive plans listed in Table H-1 in Section H8.0.

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H8.0 CONFORMANCE OF THE EXISTING ROCKY REACH HYDROELECTRIC PROJECT WITH COMPREHENSIVE PLANS

Following the table is a brief discussion of the major FERC-listed comprehensive plans having the most direct effects on the Project.

Table H-1: FERC List of Comprehensive Plans Affecting the Rocky Reach Hydroelectric Project

COMPREHENSIVE PLAN CONTACT AGENCY Spokane Resource Area Management U.S. Department of Interior Plan and Final Environmental Impact Bureau of Land Management Statement. 1985. Spokane, WA Okanogan National Forest land and U.S. Department of Agriculture resource management plan. 1989. Forest Service Okanogan, WA The Nationwide Rivers Inventory. U.S. Department of the Interior January 1982. National Park Service Washington, DC Wenatchee National Forest Land and U.S. Department of Agriculture Resource Management Plan. 1990. Forest Service Wenatchee, WA An assessment of outdoor recreation in Washington State Interagency Committee for Washington State: A State Outdoor Recreation Comprehensive Outdoor Recreation Olympia, WA Planning (SCORP) Document 2002-2007. October 2002. Voices of Washington: Public Opinion on Washington State Interagency Committee for Outdoor Recreation and Habitat Issues, Outdoor Recreation 1995. Olympia, WA Washington Outdoors: Assessment and Washington State Interagency Committee for Policy Plan, 1990-1995. April 1990. Outdoor Recreation Tumwater, WA State of Washington, Outdoor Recreation Washington State Interagency Committee for and Habitat: Assessment and Policy Plan, Outdoor Recreation 1995-2001. November 1995. Olympia, WA Washington State Trails Plan: Policy and Washington State Interagency Committee for Action Document. June 1991. Outdoor Recreation Tumwater, WA

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Table H-1: FERC List of Comprehensive Plans Affecting the Rocky Reach Hydroelectric Project

COMPREHENSIVE PLAN CONTACT AGENCY Final Environmental Impact Statement U.S. Department of Commerce and Fishery Management Plan for National Oceanic & Atmospheric Administration Commercial and Recreation Salmon National Marine Fisheries Service Fisheries off the Coasts of Washington, Seattle, WA Oregon and California Commencing in 1978. March 1978. Columbia River Basin Fish & Wildlife Northwest Power Planning Council Program. October 1984. Portland, OR Northwest Conservation & Electric Power Northwest Power Planning Council Plan. 1986. Two volumes. Portland, OR Columbia River Basin Fish & Wildlife Northwest Power Planning Council Program. 1987. Portland, OR Amendments to the 1987 Edition Columbia River Basin Fish & Wildlife Northwest Power Planning Council Program. December 1994. Portland, OR 1994 Overview Protected Areas Amendments and Northwest Power Planning Council Response to Comments. 1988. Portland, OR Statute Establishing the State Scenic Washington State Department of Fish & Wildlife River System, Chapter 79.72 RCW. 1977. Olympia, WA Eighth amendment to the fishery Pacific Fishery Management Council management plan for commercial and Portland, OR recreational salmon fisheries off the coasts of Washington, Oregon, and California commencing in 1978. January 1978. Settlement Agreement Pursuant to the Confederated Tribes of the Warm Springs September 1, 1983, Order of the U.S. Reservation of Oregon. Confederated Tribes of the District Court for the District of Oregon Umatilla Indian Reservation. Nez Perce Tribe. in Case No. 68-513. Columbia River fish Confederated Tribes and Bands of the Yakama management plan. November 1987. Indian Nation. Portland, OR A Resource Protection Planning Process Washington State Dept. of Community Development Identification of Prehistoric Office of Archaeology & Historic Preservation Archaeological Resources in the Lower Olympia, WA Columbia Study Unit. 1987. Resource Protection Planning Process-- Washington State Dept. of Community Development Paleoindian Study Unit. 1987. Office of Archaeology & Historic Preservation Olympia, WA

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Table H-1: FERC List of Comprehensive Plans Affecting the Rocky Reach Hydroelectric Project

COMPREHENSIVE PLAN CONTACT AGENCY Resource Protection Planning Process Washington State Dept. of Community Development Mid-Columbia Study Unit. 1987. Office of Archaeology & Historic Preservation Olympia, WA A Resource Protection Planning Process Washington State Dept. of Community Development Identification Component for the Eastern Office of Archaeology & Historic Preservation Washington Protohistoric Study Unit. Olympia, WA 1987. Water Resources Management Program-- Washington State Department of Ecology Methow River Basin. November 1977. Water Resources Division 15 West Yakima Avenue Yakima, WA 98902-3401 Water Resources Management Program-- Washington State Department of Ecology Okanogan River Basin Water Resources Division 15 West Yakima Avenue Yakima, WA 98902-3401 Wenatchee River Basin Instream Washington State Department of Ecology Resources Protection Program. December Water Resources Division 1982. 15 West Yakima Avenue Yakima, WA 98902-3401 Shorelands & Water Resources Program. Washington State Department of Ecology 1994. State Wetlands Integration Strategy. Water Resources Division December 1994. 15 West Yakima Avenue Yakima, WA 98902-3401 Shorelands & Coastal Zone Management Washington State Department of Ecology Program. 1986. Application of Shoreline Water Resources Division Management to Hydroelectric 15 West Yakima Avenue Developments. September 1986. Yakima, WA 98902-3401 Instream Resource Protection Program for Washington State Department of Ecology the Main Stem Columbia River in Water Resources Division Washington State. 1982. 15 West Yakima Avenue Yakima, WA 98902-3401 Hydroelectric Project Assessment Washington State Department of Fisheries Guidelines. 1987. Olympia, WA 1987 Strategies for Washington’s Washington State Department of Game Wildlife. December 1986. Olympia, WA State of Washington Natural Heritage Washington State Department of Natural Resources Plan. 1987. Heritage Olympia, WA

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Table H-1: FERC List of Comprehensive Plans Affecting the Rocky Reach Hydroelectric Project

COMPREHENSIVE PLAN CONTACT AGENCY Washington State Department of Natural Washington State Dept. of Natural Resources Resources Final Habitat Conservation Olympia, WA Plan. September 1997 Washington State Hydropower Washington State Energy Office Development/Resource Protection Plan. Library December 1992. Olympia, WA Washington State Scenic River Washington State Parks & Recreation Commission Assessment. September 1988. Wenatchee Office Olympia, WA Scenic Rivers Program--Report. Washington State Parks & Recreation Commission January 1988. Wenatchee Office Olympia, WA North American Waterfowl Management U.S. Department of the Interior Plan. May 1986. Fish & Wildlife Service Washington, DC Fisheries USA: The Recreational U.S. Department of the Interior Fisheries Policy of the US Fish and Fish & Wildlife Service Wildlife Service. Undated. Washington, DC Standards and Guidelines for U.S. Department of Agriculture Management of Habitat for Late- Bureau of Land Management Successional and Old-Growth Forest- Forest Service Related Species Within the Range of the Washington, DC Northern Spotted Owl. April 1994.

The following plans (from the above list) bear most directly on the Rocky Reach Hydroelectric Project.

U.S. Forest Service, Land and Resource Management Plan Wenatchee National Forest The 1990 forest plan is part of the 50-year framework for long-range resource planning established by the Forest and Rangeland Renewable Resources Planning Act (RPA), as amended by the National Forest Management Act (NFMA). As such, it establishes general direction for a period of time, usually between 10 and 15 years. The forest plan is a general strategy for managing the Wenatchee National Forest System in an environmentally sound manner to produce goods and services in a way that maximizes long-term public benefits. The forest plan establishes multiple use goals, objectives and desired future conditions.

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Spokane Resource Area Management Plan and Final Environmental Impact Statement Bureau of Land Management This Resource Management Plan/Environmental Impact Statement analyzes the impacts associated with the management of 307,603 acres of public land in eastern Washington that is scattered throughout 19 of the 20 counties east of the Cascade Mountains. The plan provides a comprehensive framework for managing and allocating public land and resources in the Spokane District, and serves as a master plan that will provide a framework within which future more site- specific decisions are made regarding conditional or prohibited uses and activities in some sites. It defines the intensity of management of various resources, the development of activity plans, such as grazing allotment management plans and habitat management plans, and the issuance of rights-of-way, leases, or permits. The document was developed under Federal Land Policy Management Act requirements to use an interdisciplinary planning process to apply principles of multiple use and sustained yield.

Interagency Committee for Outdoor Recreation (IAC) Assessment of Outdoor Recreation in Washington State Chapter 79A.25 RCW requires the Interagency Committee for Outdoor Recreation to prepare and update a statewide plan for outdoor recreation and open space that includes “an analysis of strategic options and decisions available to the state.” The 2002 Assessment of Outdoor Recreation in Washington State is intended to inform decision-makers about issues and opportunities associated with outdoor recreation. The Assessment also maintains the state's eligibility for federal Land and Water Conservation Fund support.

To prepare this assessment, the IAC sought guidance from the public and from professional recreation and habitat providers. Forums included a year-long diary-based survey of citizen recreation participation (1999-2000), public focus group meetings (2001), open public meetings (2001), and consideration of numerous comments on the draft (2002). Survey results and public involvement in other IAC planning and policy work are incorporated in the Assessment, which reports on at least 170 different types of outdoor recreation in 15 major categories.

Columbia River Basin Fish and Wildlife Program In 1980, Congress passed the Pacific Northwest Electric Power Planning and Conservation Act, which authorized the states of Idaho, Montana, Oregon and Washington to create the Northwest Power Planning Council. The act directs the council to prepare a program to protect, mitigate and enhance fish and wildlife of the Columbia River basin that have been affected by the construction and operation of hydroelectric dams, while also assuring the Pacific Northwest an adequate, efficient, economical and reliable power supply. The Act also directs the Council to inform the public about fish, wildlife and energy issues, and to involve the public in its decision-making. The Council’s Columbia River Basin Fish and Wildlife Program is the largest regional effort in the nation to recover, rebuild, and mitigate impacts on fish and wildlife. The Council periodically updates the program.

Instream Resource Protection Program for the Main Stem Columbia River in Washington State This chapter of the Washington Administrative Code was adopted to “promote the proper utilization of the water resources of the Columbia River and to protect and insure the viability of

Final License Application Rocky Reach Hydroelectric Project No. 2145 June 30, 2004 Page H-19 SS/3959 Exhibit H: Supplemental Information the instream resource values associated with the main stem of the Columbia River in the future through (1) the establishment of minimum flows on the main stem Columbia River in Washington state, and (2) the establishment of conservation and efficiency fundamentals relating to out-of-stream and instream uses and values.”

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H9.0 FINANCIAL AND PERSONNEL RESOURCES

H9.1 FINANCIAL RESOURCES Since its creation in 1936, Chelan PUD’s performance demonstrates that it has sufficient financial resources to meet the continuing operation and maintenance requirements of the Rocky Reach Hydroelectric Project. Chelan PUD is a municipal corporation organized pursuant to the Washington State Constitution and statutes.

Careful planning, improved operating practices and cost-containment measures combined to produce net revenues of $8.0 million for 2003, $11.5 million in 2002 and $18.0 million in 2001. Chelan PUD’s distribution system posted net revenues of $3.0 million for 2003, $1.8 million in 2002 and $10.7 million in 2001. Power prices returned to historic levels in 2001, compared to the unprecedented levels reached in the secondary market in 2000. While rates for many Northwest customers increased during this period, Chelan PUD rates remained stable and the distribution system accumulated unrestricted cash reserves of more than $49 million. The distribution system has unrestricted cash reserves as of December 31, 2003, of more than $69 million. These reserves are necessary to cover market fluctuations in energy pricing and to fund capital projects. Cost- containment efforts have also helped Chelan PUD reduce production costs and maintain retail rates that are among the lowest in the country.

In April 2004,6 Chelan PUD issued $123,140,000 of Consolidated System Revenue Bonds, Series 2004ABCDE. It also priced $34,020,000 of Consolidated System Revenue Bonds, Series 2005AB as delayed delivery bonds, anticipated to close on or about April 5, 2005. The 2004ABE bonds will be used to refund several higher interest rate debt issues; 1987B-IV, 1988A-III, 1992D, 1993E-I, II and III, and the 1993Gs. The 2004CD bonds in the amount of $15,000,000 and $40,000,000, respectively, and approximately a $6,500,000 segment of the 2004B bonds will be used to finance certain repairs, replacements, renewals, additions, betterments, extensions and improvements to Chelan PUD’s distribution, networks and water systems as well as the Lake Chelan Hydroelectric Project.

The 2005AB bonds, if finalized, will be used to refund the 1993A-I, II, III and IV, and 1995B series debt issues for additional interest rate savings.

In April 2003, Chelan PUD issued $29,440,000 of Consolidated System Revenue Bonds, Series 2003A. The $29,440,000 of Series 2003A bonds will be used to refund several higher interest rate debt issues; Series 1987A Div III, Series 1987B Div III, Series 1991A Div II and Series 1991A Div III. In December 2002, Chelan PUD used $109,905,000 of Consolidated System Revenue Bonds, Series 2002A, Series 2002B and Series 2002C. The $44,905,000 of Series 2002A bonds and the $35,000,000 Series 2002B bonds will be used to finance certain repairs, replacements, renewals, additions, betterments, extensions and improvements to Chelan PUD’s

6 Information available as of May 2004.

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hydroelectric systems. The $30,000,000 Series 2002C bonds will be used to finance certain electric, water and telecommunications’ capital and operating expenses of Chelan PUD.

Three bond-rating agencies, Standard & Poor’s, Fitch Ratings, and Moody’s affirmed the Chelan PUD’s AA, AA and Aa2 bond ratings, respectively. Chelan PUD is among a select group of utilities in the country awarded such high ratings. Factors cited by the rating agencies for maintaining Chelan PUD’s high bond ratings include production costs, which are among the lowest in the country, strong revenues resulting from the ability to market excess energy outside of the Chelan PUD at prevailing market rates, and continued strong historical debt service coverage on all outstanding obligations. The high bond ratings lower the Chelan PUD’s cost of borrowing for the capital-intensive hydroelectric projects.

Revenues from the hydro systems represent sales of power generated by Chelan PUD’s three hydroelectric production facilities (Rocky Reach, Rock Island and Lake Chelan) under firm power sales contracts or sales directly to the distribution system. Revenues under these contracts are determined on a cost-of-service basis, including debt-service costs. These firm power sales contracts extend into the future, with varying expiration dates. The Project system’s contracts expire in 2011, and the Rock Island Hydroelectric Project system’s contract expires in 2012. The Lake Chelan Hydroelectric Project system sells 100 percent of its output to the Chelan PUD distribution system.

To balance Chelan PUD’s anticipated power resources and demand for those power resources, Chelan PUD enters into forward physical power sales agreements when resources exceed demand, and forward physical power purchase agreements when expected demand exceeds the resources estimated to be available. Forward contracts are principally used to mitigate the impact of market price risk Chelan PUD faces from its inherent physical long or short positions over the year, as well as to manage volatility in resource and demand forecasts.

H9.2 PERSONNEL RESOURCES Chelan PUD has operated the Rocky Reach Hydroelectric Project safely and efficiently for more than 45 years. The record demonstrates Chelan PUD’s ability and commitment to continue operating in accordance with new license terms and conditions.

In 2003, Chelan PUD had approximately 651 full-time employees, who earned wages and overtime pay totaling about $38 million.

Chelan PUD periodically renegotiates a collective bargaining agreement with Local 77 International Brotherhood of Electrical Workers, covering approximately 381 employees. The other 270 full-time employees are salaried.

On March 17, 2003, the Commissioners of Chelan PUD approved a three-year collective bargaining agreement with the Local 77, which was ratified by the bargaining unit employees on March 12, 2003. The new agreement will extend through July 31, 2006.

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H10.0 PROPERTY BOUNDARY EXPANSION

In 1999, Chelan PUD hired a professional land surveyor to survey the Exhibit G Project Boundary for the Rocky Reach Hydroelectric Project. As part of this process, a computer-based river flow analysis was performed to verify flood elevations throughout the reservoir. This new analysis, which included current aerial mapping techniques, updated riverbed cross-sections, and computer modeling shows 100-year-flood elevations between Beebe Bridge and Wells Hydroelectric Project dam as several feet greater, in some locations, than those previously identified using earlier hand calculation methods.

The new calculated flood elevations are approximately 6 inches to 4 feet above the previous survey, and the Exhibit G Project Boundary have been amended to accurately reflect these increases. Lands affected by this increase are located in rural areas and have minimal development. Chelan PUD is currently working with property owners to amend the necessary flowage easements (Table H-2).

Table H-2: Amended Rocky Reach Hydroelectric Project Boundary Survey (Chelan and Douglas counties) Chelan County: Parcel Number Property Owner Tract Number 272320120000 Wenatchee Beebe Orchards 147 282323310050 JB Goodfellow 152 282323130000 JB Goodfellow 152 282323110060 Robert Price 154 282324220000 Richard Harris 152 282313330075 Dan Haury 154 282313340100 Beltaine Kozlowski 153 & 154 282313310250 Rio Vista Assoc., LLC. 153 282313420050 Edward Cross 153 282312000050 Wells & Wade Fruit Co. 155 & 158 282312110050 Gordan Pugel 155 282418220050 Darrell Shin 155

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Table H-2: Amended Rocky Reach Hydroelectric Project Boundary Survey (Chelan and Douglas counties) Douglas County: Parcel Number Property Owner Tract Number 27232040001 Wenatchee Beebe Orchards 268 27232110001 Wenatchee Beebe Orchards 268 27231620001 Wenatchee Beebe Orchards 268 27230930001 Wenatchee Beebe Orchards 268 27231030001 Wenatchee Beebe Orchards 268 27231010001 Wood, Hampton, Boyle 269 27231010002 Wood, Hampton, Boyle 269 28232610001 Velmar Thomsen 274

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H11.0 ELECTRICITY CONSUMPTION EFFICIENCY IMPROVEMENT PROGRAM

H11.1 CUSTOMER PROGRAMS For more than 40 years, Chelan PUD has maintained a strong record in promoting conservation and encouraging efficient use of electricity. Beginning in the mid-1950s, Chelan PUD provided three technical representatives to advise residential, commercial/industrial and irrigation pumping customers on how to make most efficient use of their power. Free heat loss and heat gain studies were provided as part of that program.

These efforts progressed in the 1960s, leading to the first residential standards for insulation in the county, known as the Gold Medallion Home Program. That program was active for about 15 years.

In the early 1980s, Chelan PUD formed a Conservation Section within the Customer Service and Engineering Department, instituting a more sophisticated energy analysis and a customer education program. Chelan PUD participated in conservation programs under the auspices of the Bonneville Power Administration (BPA), including hot water efficiency, short-term energy buy- back weatherization, marketing for energy efficient new homes and a weatherization program. In 1985, the BPA Super Good Cents Program for new home energy efficiency was initiated by Chelan PUD. Also in 1985, an agreement was reached to channel some weatherization funds directly to the local Chelan-Douglas Community Action Council (CDCAC) for low-income weatherization assistance. That program evolved in 1994 to a direct grant to CDCAC, which enabled the funds to be directly matched by a Washington State energy program, effectively doubling the money available.

In 1995, the department name was changed to Energy Services, with one division for residential assistance and another for the commercial/industrial sector.

Commercial programs have included complete audits of commercial buildings, monitoring and testing of specific equipment and training and education of building operators. The primary focus of the industrial programs has been on the fruit storage and fruit processing industry, the mainstay of the local economy. Programs include audits, research projects and education. Another program funded by BPA helped replace streetlights with more energy-efficient models.

Residential programs have been varied and extensive. For new construction, Chelan PUD offered services to encourage the purchase of energy-efficient manufactured homes, design assistance and advice on meeting energy codes and information on proper installation of heating, ventilation and air condition (HVAC) systems. For existing construction, Chelan PUD continues to promote energy audits by contractors, to offer weatherization loans and to promote HVAC duct sealing.

Chelan PUD is currently testing the performance of a new air source heat pump that is reported to be the world’s most energy efficient air-source heat pump. In addition to being very energy

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efficient, the new Cold Climate Heat Pump is also reported to operate at very low temperatures, without the need for electrical resistance backup heat. This would increase Chelan PUD’s winter peak capacity. Chelan PUD is the first to install the Cold Climate Heat Pump west of the Mississippi River. If the performance of this new heat pump performs as well as advertised, Chelan PUD will promote its installation in homes and businesses in Chelan County.

In addition, training and education is offered on a wide scale to building professionals, manufactured home dealers, customers, realtors and school officials. Customer assistance for all energy efficiency questions is available.

The Energy Services Department of Chelan PUD continued to evolve and was restructured again in 2000. During that period, staff began planning the introduction of optional alternative energy programs for its customers. These efforts culminated in the introduction of the Sustainable Natural Alternative Power (SNAP) program in 2001. This very successful program facilitates the installation of small-scale, locally-owned solar and wind generators through a voluntary extra payment on customer’s utility bills. The award-winning SNAP program is helping get a solar power system installed at every public school in Chelan County. As a result of the SNAP program, Chelan County is scheduled to have more grid-connected solar power than any other county in Washington.

In the industrial and commercial sectors, high wholesale energy prices enabled Energy Services to expand its Resource$mart program. This program purchased energy through conservation measures in industrial and large commercial facilities by offering cost sharing incentives based on confirmed energy savings.

Services provided by Chelan PUD over the years have included the following:

Residential: Energy analyses of existing residences Home energy loan, retrofit weatherization program HVAC duct sealing services Customer and professional training and education Residential energy code support Promotion of energy-efficient lighting Promotion of energy-efficient manufactured homes Promotion of Super Good Cents construction Chelan PUD staff is a member of the advisory board for the building sciences program at the community college Water heater retrofit insulation program (9,424 tanks wrapped in 1982-83) Energy Star appliance instant rebate promotion Energy Star energy kit including a compact fluorescent lamp (CFL) and coupons for additional CFLs, thermostats, exterior motion sensors, and CFL fixtures Halogen torchiere lamp trade-in for coupon good for the purchase of a CFL torchiere Water conservation loan program to reduce summer irrigation use of domestic water Residential water conservation audits

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Outdoor water conservation kits for audit participants Promotion of water conservation and electrical conservation through workshops, public meetings and informational marketing

Commercial: Expanded energy audits Nonresidential energy code support Design assistance for new construction and remodeling Training and education Demonstration lighting project Research and demonstration projects Street light replacement program (2,375 lights) LED replacement lights in downtown holiday lighting display

Industrial: Expanded energy audits Account executives (specific Chelan PUD staff members assigned to work with specific customers) Seminars Chelan PUD staff member as part of advisory board for refrigeration program at community college ResourceSmart program: rebates for industrial energy conservation projects.

SNAP (Sustainable Natural Alternative Power): An optional program promoting installation of locally owned alternative energy systems. Beginning in 2003, through a collaborative effort with the Alcoa Inc. Foundation and IBEW union, solar photovoltaic arrays were installed on all schools and several non- profit social service agencies in Chelan County as part of the SNAP program.

Through 2003, Chelan PUD’s energy efficiency incentives and programs have resulted in the following:

Residential Customer Services home audits: (residential) 9,365 Super Good Cents construction: (single family) 323 (multifamily) 269 (manufactured) 73 Homes weatherized: (residential) 2,514 Water heaters retrofitted with insulation: (residential) 9,424 Street lights replaced with energy-efficient models: 2,375 Annual Savings (kWh) (residential) 14,230,966 Measures cost (loaned): (residential) $6,358,528 Energy Kit and coupons (residential) $158,610 1.12 MWh Energy Star appliance incentive (residential) $44,577

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267,500 kWh Resource$mart through the end of 2001 (industrial) $857,805 1.4 Average MW SNAP (residential & 30 kW of Solar commercial) Power / Wind

H11.2 REGULATORY COMPLIANCE Chelan PUD’s energy conservation program complies with all relevant regulatory requirements.

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H12.0 INDIAN TRIBE MAILING LIST

The nearest tribal government which has trust land adjacent to the Project is:

Confederated Tribes of the Colville Reservation Colville Business Council P.O. Box 150 Nespelem, WA 99155

The Confederated Tribes of the Colville Reservation are on the stakeholder mailing list for the relicensing process, as are these other American Indian entities or representatives:

Confederated Tribes and Bands of the Yakama Nation P.O. Box 151 Toppenish, WA 98948

Confederated Tribes of the Umatilla Indian Reservation P.O. 638 Pendleton, OR 97801

U.S. Bureau of Indian Affairs Portland Area Office 911 N.E. Eleventh Avenue Portland, OR 97232

Columbia River Inter-Tribal Fish Commission (representing Umatilla, Nez Perce, Yakama and Warm Springs tribes) 729 N.E. Oregon, Suite 200 Portland, OR 97232

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H13.0 MANAGEMENT, OPERATION AND MAINTENANCE MEASURES

Chelan PUD maintains state-of-the-art safety programs for its workers and the public. The programs are run in accordance with the highest standards for risk management and meet FERC requirements.

H13.1 OPERATION DURING FLOODS The Rocky Reach Hydroelectric Project is designed to be operable during all contemplated flood conditions. The dam meets FERC safety and stability criteria for floods up to and including the Probable Maximum Flood (PMF). When river flows exceed the hydraulic capacity of the powerhouse, the spillway is used to pass the remaining flow. When flooding occurs or appears likely along the Columbia River, the U.S. Army Corps of Engineers is authorized to coordinate operation and spilling of water at dams on the river in an effort to minimize the impact of floods.

During flood flows, the Project is authorized to operate with headwater elevations up to 710 feet. During the PMF, the anticipated maximum headwater elevation is 718.3 feet. This is still 1.7 feet below the level of the parapet wall, but is 1.3 feet above the deck level, and some temporary measures would have to be taken to prevent flooding of the powerhouse.

Operation during other emergency conditions is detailed in Chelan PUD’s current Emergency Action Plan (EAP) for the Project, which is on file with the FERC. The purpose of the EAP is to provide a detailed plan of operations and a notification flow chart for use in the event of a hazardous or emergency condition at the Project. This plan is updated annually and tested periodically.

H13.2 WARNING DEVICES Safety devices around the Project include: Fences around the switchyard, powerhouse and dam Life rings along the spillway deck, intake deck and tailrace deck Boat barriers in front of the dam and intake structure Log boom in front of the intake area Motion detector alarms and door position detectors around the switchyard, powerhouse doors and entrance gates Lighting Signs posted at park sites within the Project boundary to warn of swimming dangers and the absence of lifeguards, and explaining boat and water-use regulations.

H13.3 SECURITY ENHANCEMENTS In response to FERC’s Security Program for Hydropower Projects issued in June of 2002, Chelan PUD has significantly enhanced security measures at the Project and is updating its emergency

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action plan to include a security action plan. Upgrades in security at the Rocky Reach Hydroelectric Project, such as fencing, access control, gates, video surveillance and barrier arms, will approximate $1.75 million in capital investment by the end of 2005. A significant portion of this investment was dictated by Chelan PUD’s decision to keep the Rocky Reach Hydro Park, Visitor Center and Museum of the Columbia at the Project dam open to the public.

Guard positions required at the Chelan and Douglas counties’ entrances to the Project and support services contracted through the Chelan County Sheriff's Office and Washington State Patrol for normal operations and for increased Homeland Security Threat levels approximate $155,500 per year.

Increased post-9/11 security measures have impacted local law enforcement to some degree, since Chelan PUD has contracted with local law enforcement authorities to provide additional security services in the event of a heightened threat level. Under normal security procedures, Chelan PUD employs contract guard services certified by the state to provide general security at the facility. An off-duty sheriff’s deputy also helps operate the metal detector at the Visitor’s Center. Chelan PUD has contracted with local law enforcement to provide resources and personnel, on an overtime basis, at critical energy infrastructure facilities should the Homeland Security threat level intensify. For example, some law enforcement services would be provided at a threat level of orange, with officers stationed at key facilities at all times should the level increase to red.

Chelan PUD will pay for these overtime services on a contract basis, and does not expect law enforcement participation under these circumstances to impact the resources normally available to local agencies.

Finally, Chelan PUD has instituted internal review and approval processes related to the treatment of material considered Critical Energy Infrastructure Information (CEII) under 18 §CFR 388, as amended by FERC Order 630. CEII in this license application has been segregated in a separate appendix. In addition, Chelan PUD has taken steps to ensure appropriate security review of bid documents circulated during the procurement and contract processes. Chelan PUD has also removed CEII from its Web site.

H13.4 CHANGES THAT MIGHT AFFECT EMERGENCY ACTION PLAN In response to FERC’s Security Program for Hydropower Projects issued in June of 2002, Chelan PUD has significantly enhanced security measures at the Project and is updating its Emergency Action Plan to include a Security Action Plan. The Security Action Plan, currently under development, will determine how Chelan PUD will address confrontation issues that are a result of hostile intent toward its facilities. The plan will also include the measurable or actionable steps that will be taken at all locations as the Homeland Security threat level is elevated.

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H13.5 MONITORING DEVICES TO DETECT STRUCTURAL MOVEMENT Instrumentation to monitor the Project structures includes survey monuments and piezometers.

Monitoring for horizontal and vertical movement is made possible by a series of reference lines established by ground control monuments consisting of bronze monuments set in concrete in rock formations. Reference lines have been established for the forebay wall, powerhouse intake deck, center dam and spillway. A total of 78 bronze monuments are set in the concrete of these structures along the reference lines. Precise measurements of upstream/downstream offset from the reference line and elevation are made semi-annually for 29 monuments, to check for changes in horizontal and vertical position and to detect changes in position or orientation of monoliths of the dam and spillway. Measurements are evaluated for significant or progressive changes.

A total of 70 piezometers were installed in the Project structures in 1981 and 1983, to monitor uplift pressures. Piezometers were installed in all structures for which the stability analyses assume any uplift reduction due to drains. In 1988 and 1989, 32 piezometers in the powerhouse intake areas and in the spillway fish tunnel were equipped with transducers to permit remote readings to be made when these areas are not dewatered.

H13.6 SAFETY RECORD

H13.6.1 Employees For the period from 1991 through December 2003, there have been 36 lost-time incidents among staff working at the Project for a total of 216 days lost. The most common injuries have included various strains, minor burns, cuts and bruises. There were two instances of carpal tunnel syndrome (9 days), a herniated disc (41 days), and one multiple injury accident (42 days).

H13.6.2 Public For the period 1986 through December 2003, there have been no injuries or deaths of members of the public directly attributable to Project operations. There have been four drownings and 14 incidents resulting in minor injuries related to recreation (unrelated to Project operations) that occurred within the Project boundary.

H14.0 DESCRIPTION OF CURRENT OPERATIONS

Rocky Reach Hydroelectric Project operations are described in Exhibit B.

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H15.0 HISTORY OF THE PROJECT AND OPERATION AND MAINTENANCE UPGRADES

The construction history of the Rocky Reach Hydroelectric Project is detailed in Exhibit C1.0. The following paragraphs outline significant modifications and major maintenance upgrades that have occurred since the Project was constructed.

In 1995, Chelan PUD began a major overhaul and upgrade of the Project’s generating units. All units received new solid-state exciters, generator breakers, transformers, and runners and blades. Units 8 through 11 were changed from fixed-blade runners to Kaplan runners with adjustable- pitch blades. The governors for all units were rehabilitated or replaced, including receiving new control and protective relaying systems. All units also were equipped with machine condition monitoring systems.

In addition to the items above, stator sole plates were replaced and stators were re-rounded and aligned in Units 1 through 7. Unit 8 through 11 transformers were uprated to 152 MVA, and rotor poles and pole bodies were refurbished or replaced as needed. This work was completed in 2003.

Starting in 2002, Chelan PUD began the process of replacing the generators (rotors and stators) in Units 1 through 7. This project is expected to be completed in 2007.

Installation of plant optimization software (WaterView) was completed in 2001. This software uses individual unit performance characteristics with real time flow conditions to optimize operation of the overall Project. Operation of the Rocky Reach Hydroelectric Project is automated, including decisions to start, stop and adjust the output of the 11 generating units to achieve maximum efficiency. The Rocky Reach Hydroelectric Project’s automated functions are backed up with around-the-clock, on-duty plant operators who monitor operations and can override computer control if needed.

The other major change in the Project with potential for affecting Project operations is construction of the juvenile fish bypass facility. Based on the results of several years of site- specific research, Chelan PUD constructed facilities to collect juvenile salmonids migrating downstream and convey them safely past the dam. This work was started in 2002 and completed in 2003.

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H16.0 GENERATION LOST DUE TO UNSCHEDULED OUTAGES

From December 28, 1998, through December 31, 2003, there were a total of 16 unscheduled outages. The shortest ones were less than a day, and the longest one was a 316-day outage. The 316-day outage was caused when a rotor rubbed a stator, which required refurbishing rotor poles and replacement of some of the stator iron and windings. Other reasons for the unscheduled outages included: Kaplan piping failure, rotor pole shim key migration, turbine guide oil level alarm, shear pin failure, stator/rotor investigation, coil failure, accumulator tank safety valve failure, and stator repair. The 16 unscheduled outages comprised of a total of 658 full or partial day outages and a loss of 77,580 MWh that was spilled. There were no lost megawatt hours in 10 of the outages and no lost megawatt hours in 2002 and 2003.

H17.0 COMPLIANCE RECORD

Chelan PUD has maintained an excellent compliance record for the Rocky Reach Hydroelectric Project and has a long successful history of working both with adjoining communities and involved resource agencies. There are no compliance issues to report.

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page H-34 June 30, 2004 Exhibit H: Supplemental Information

H18.0 ACTIONS TAKEN AFFECTING THE PUBLIC

Chelan PUD has a long history of providing the region with electric power in the most cost- effective, efficient manner possible, resulting in some of the lowest rates in the nation. Those low rates may be the single biggest action affecting the public, due to their positive impact on the area’s economy, which traditionally has lagged behind the state average in per capita income.

In addition, the record demonstrates exceptional stewardship for public recreation, for the environment and for cooperation with local, state and federal interests on a wide variety of projects.

A few examples include: • Development of a Habitat Conservation Plan to ensure the Project has “no-net-impact” on mid-Columbia salmon and steelhead runs. The 100 percent no-net-impact standard will be met through a combination of passage survival (including installation of $110 million juvenile bypass system at Rocky Reach Hydroelectric Project), tributary enhancements (including a grant program), and hatchery compensation. • Approximately $2.2 million for land acquisition for park development as part of the Exhibit R Recreation Plan for the Rocky Reach Hydroelectric Project filed with FERC in 1975; • Approximately $22 million for development of a park at the Rocky Reach Hydroelectric Project dam, construction of Lincoln Rock State Park, Daroga Park, and Chelan Falls/Beebe Bridge parks, and expansion of Entiat Park and Orondo Park on Lake Entiat. Rocky Reach Hydroelectric Project recreation facilities include: 6 boat launches with a total of 11 launch lanes 8 swimming beaches 7 parks 5 campgrounds with 319 sites 367 picnic tables for day use A visitors’ center An interpretive display 5 walking or hiking trails 24 playground areas, athletic courts and playing fields. • Approximately $1.4 million annually for operation and maintenance of Rocky Reach Hydroelectric Project dam recreation facilities and visitor center, Beebe Bridge Park, and Chelan Falls Park. • Purchase of 20,400 acres of habitat for $700,000 in 1963 for management by the Washington Department of Fish and Wildlife as big game wintering range. These lands include The Chelan Butte, Swakane, and Entiat Habitat Management Areas, totaling 17,502 acres; Public hunting easements on two privately owned areas, Blue Grade in Douglas County and Boyd in Chelan County; A 160-acre parcel along the reservoir in Chelan County, Gallagher Flats;

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25 public stream bank accesses and fishing areas along the Wenatchee River; Construction of a spawning channel at Twentyfive Mile Creek and spawning habitat improvements for kokanee in Company Creek at Stehekin. • Annual maintenance and filling of eight large upland bird feeders along Rock Island and Rocky Reach Hydroelectric Project reservoirs and maintains 25 kestrel nesting boxes along the reservoirs and monitors these boxes to determine use, success, and production. • Maintenance of 31 goose nesting structures for Canada geese along both Rocky Reach and Rock Island Hydroelectric Project reservoirs and monitors all Canada goose nesting effort, success, and production each spring along both reservoirs. • Funding and hatchery capacity at Rocky Reach Hydroelectric Project, Turtle Rock, and Chelan Falls facilities to rear up to 54,000 pounds of summer/fall Chinook salmon and 30,000 pounds of steelhead annually. • Predator control to reduce mortality of juvenile salmon and steelhead, which includes northern pikeminnow angling and gull hazing during migration periods. • Provision of $50,000 - $100,000 annually through privilege taxes to state and local governments and public schools. • Construction of a public fiber-optic network to upgrade utility communications and share the benefit of the technology investment with our customer/owners. • Sponsorship of job shadow and mentorship programs that bring high school students from the area into the workplace for a look at various jobs related to the electric utility industry.

H19.0 IMPACT ON EXPENSES IF LICENSE IS TRANSFERRED

Chelan PUD estimates that operations and maintenance costs for the Rocky Reach Hydroelectric Project will average $53,698,000 million per year under current operating practices. These costs would be avoided if the license to operate the Project were transferred to another entity.

Rocky Reach Hydroelectric Project No. 2145 Final License Application SS/3959 Page H-36 June 30, 2004 Exhibit H: Supplemental Information

H20.0 ANNUAL FEES

The table below summarizes annual fees paid under Part 1 of the Federal Power Act for use of federal lands included within the Rocky Reach Hydroelectric Project boundary.

Table H-3: Annual Charges for Use of Federal Lands, 1981-Present Year Charges ($) 1978 1,414.71 1979 1,814.62 1980 2,081.92 1981 1,919.43 1982 2,005.23 1983 2,010.84 1984 2,035.26 1985 2,023.07 1986 2,040.05 1987 (switched to fiscal-year billing) 1988 4,463.70 1989 1,934.69 1990 3,222.21 1991 3,304.17 1992 3,470.89 1993 2,952.50 1994 3,665.34 1995 485.97 (municipal exemption partially credited) 1996 2,330.29 1997 2,500.06 1998 2,540.11 1999 2,460.68 2000 2,619.21 2001 2,593.68 2002 2,580.10 2003 1,351.56 2004 2,699.37

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APPENDIX A

EXHIBIT F: GENERAL PROJECT DRAWINGS

CONTAINS CRITICAL ENERGY INFRASTRUCTURE INFORMATION DO NOT RELEASE

Table of Contents List of Drawings

TABLE OF CONTENTS

EXHIBIT F: GENERAL PROJECT DRAWINGS...... A-1

F1.0 Exhibit Overview and Information about Critical Energy Infrastructure Information Designation of this Material...... A-1

LIST OF EXHIBIT F GENERAL PROJECT DRAWINGS

Sheet Number Description F-1 Sheet 1 of 6...... General Plan of Development F-2 Sheet 2 of 6...... Powerhouse Cross Section Units 1-7 F-3 Sheet 3 of 6...... Powerhouse Cross Section Units 8-11 F-4 Sheet 4 of 6...... Sections Spillway and Forebay Wall F-5 Sheet 5 of 6...... Plan and Sections Cutoff at Eastbank Abutment F-5 Sheet 6 of 6...... General Plan with Juvenile Fish Bypass System

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Appendix A Exhibit F: General Project Drawings

F1.0 EXHIBIT OVERVIEW AND INFORMATION ABOUT CRITICAL ENERGY INFRASTRUCTURE INFORMATION DESIGNATION OF THIS MATERIAL

This exhibit contains drawings of the principal Rocky Reach Hydroelectric Project works. The Exhibit F drawings show all major Project structures in sufficient detail to provide a full understanding of the Project, including plans, elevations and sections. On February 21, 2003, FERC issued a Final Rule (Order 630) amending 18 CFR § 388 and prescribing specific requirements to segregate and identify Critical Energy Infrastructure Information (CEII) filed as part of a hydropower license application. The Final Rule describes CEII in 18 CFR 388.113(c) as information about proposed or existing critical infrastructure that:

Chelan PUD is requesting privileged treatment of Exhibit F General Design Drawings since they meet the criteria summarized above. In accordance with 18 CFR § 388.112 (b), as amended by Order 630, Exhibit F General Design Drawings appear in this separate appendix (Appendix A) to this license application.

Members of the public interested in requesting CEII classified materials may contact Chelan PUD’s public information officer for more information.

Public Information Officer 327 North Wenatchee Avenue Wenatchee, WA 98801 (509) 663-8121

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APPENDIX B

EXHIBIT G: PROJECT MAPS

NON-INTERNET PUBLIC

Table of Contents List of Maps

TABLE OF CONTENTS

EXHIBIT G: PROJECT MAPS...... B-1

G1.0 Exhibit Overview and Information about Non-Internet Public Designation of this Material ...... B-1

LIST OF MAPS

Sheet Number Description Cover Sheet...... Project Boundary & Location Map Sheet 1 of 16 (including 3 supporting sheets)...... T. 23 N. R 20 E.W.M. Section 2,3 Sheet 2 of 16 (including 12 supporting sheets) ...... T. 28 N. R. 23 E.W.M Section 26,35 Sheet 3 of 16 (including 13 supporting sheets) ...... T. 24 N. R. 21 E.W.M. Sections 5,6,7,8,17,18 Sheet 4 of 16 (including 10 supporting sheets) ...... T. 24 N. R. 21 E.W.M. Sections 5,6 T. 25 N. R. 21 E.W.M. Sections 28,29,31,32 Sheet 5 of 16 (including 8 supporting sheets)...... T. 25 N. R. 21 E.W.M. Sections 16,17,20,21 Sheet 6 of 16 (including 10 supporting sheets) ...... T. 25 N. R. 21 E.W.M. Sections 3,4,9,10 Sheet 7 of 16 (including 10 supporting sheets) ...... T. 26 N. R. 21 E.W.M. Sections 28,29,32,33 Sheet 8 of 16 (including 8 supporting sheets)...... T. 25 N. R. 21 E.W.M. Sections 3,4,9,10 Sheet 9 of 16 (including 9 supporting sheets)...... T. 26 N. R. 21 E.W.M. Sections 1,10,11,12 T. 26 N. R. 22 E.W.M. Sections 6,7 Sheet 10 of 16 (including 11 supporting sheets) ...... T. 26 N. R. 22 E.W.M. Sections 3,4,5,8,9,10 Sheet 11 of 16 (including 10 supporting sheets) ...... T. 26 N. R. 22 E.W.M. Sections 1,2 T. 26 N. R. 23 E.W.M. Section 5, 6 T. 27 N. R. 23 E.W.M. Sections 31,32 Sheet 12 of 16 (including 10 supporting sheets) ...... T. 27 N. R. 23 E.W.M. Sections 20,21,29,30-32 Sheet 13 of 16 (including 12 supporting sheets) ...... T. 27 N. R. 23 E.W.M. Sections 9,10,16,17 Sheet 14 of 16 (including 9 supporting sheets)...... T. 27 N. R. 23 E.W.M. Section 2,3 T. 28 N. R. 23 E.W.M. Sections 25,26 Sheet 15 of 16 (including 11 supporting sheets) ...... T. 28 N. R. 23 E.W.M. Sections 13,18,19,23,24 Sheet 16 of 16...... T. 28 N. R. 23 E.W.M. Section 12 T. 28 N. R. 24 E.W.M. Section 7

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Appendix B Exhibit G: Project Maps

G1.0 EXHIBIT OVERVIEW AND INFORMATION ABOUT NON-INTERNET PUBLIC DESIGNATION OF THIS MATERIAL

This exhibit1 contains maps of the Rocky Reach Hydroelectric Project vicinity, Project boundary, and federal and non-federal land ownership with the Project boundary. Due to FERC’s recent ruling on categorization and handling of specific types of project information, these maps appear in this separate appendix (Appendix B) to this license application.

Public Information Officer 327 North Wenatchee Avenue Wenatchee, WA 98801 (509) 663-8121

1 Refer to Table H-2 in Exhibit H that lists parcels of land being secured by Chelan PUD to amend flowage easements.

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