On June 10, 2009, the Bonneville Power Administration (BPA) issued a letter indicating it would commence a potentially bifurcated process to address Lookback issues that arose in connection with the United States Court of Appeals for the Ninth Circuit’s remand in Pacific NorthwestGenerating Cooperative, et al. v. Bonneville Power Administration, 550 F.3d 846 (9th Cir. 2008) (PNGC).

Publication of the Draft Record of Decision (“DROD”), posted under “Service to Direct Service Industries” at website provided below, marks the beginning of the first phase of that process and initiates the public comment period needed to enable the Administrator to reach a final determination of issues associated with the Lookback.

The purpose of the draft ROD is limited to addressing specific contractual issues identified by the court that must be resolved to determine whether Lookback amounts are owed by or to any party. If a final determination is made that no Lookback amounts

are owing and/or recoverable, the second phase of this process will be unnecessary and the final record of decision on this initial phase of the direct service industrial customer (DSI) Lookback process will constitute the Administrator’s final action on the subject.

However, if it is determined that Lookback amounts are owing, a second phase of the process will be initiated to determine the amounts of any Lookback obligations and the Administrator’s determination will not constitute a final action until that phase of the process is also completed.