PR 90 05 BONNEVILLE POWER ADMINISTRATION FOR IMMEDIATE RELEASE: TUESDAY, December 20, 2005 Contact: Ed Mosey | , BPA (503)-230-5131     BPA finishes fiscal year in the black as its financial health continues to improve Progress reported in areas of transmission, conservation, wind energy and salmon protection. PORTLAND, Ore. - The Bonneville Power Administration's 2005 annual report shows the agency earned just over $126 million in modified net revenues, the highest since prior to the West Coast energy crisis of 2000-2001. This is the third consecutive year the agency has operated in the black as it continues to control costs and benefit from strong sales in the surplus energy market. Revenues from these sales hold down rates for Northwest consumers. The agency has achieved a positive financial performance despite six years of below average water. BPA markets power from 31 federal dams in the Federal Columbia River Power System and one nuclear plant. BPA also builds, operates and maintains 15,000 miles of high- voltage transmission lines - three quarters of the Northwest's power grid. In 2005 the agency moved ahead with the nation's largest program to build transmission infrastructure to ensure reliable delivery of electricity to the Pacific Northwest. Since 2001, BPA has invested over $1 billion in transmission system projects that include construction of new high-voltage lines, rebuilding existing lines and substation upgrades. Highlights of the 2005 fiscal year are: Wholesale power rates decreased for the third year in a row while BPA met its annual payment to the U.S. Treasury for the 22nd year in a row. Northwest retail rates are among the lowest in the nation. BPA exceeded its target of 40 megawatts of new conservation by capturing 43 megawatts in the load it serves. That's enough to serve an average of 30,000 homes. During the year, BPA was named a Star of Energy by the Alliance to Save Energy for its work to promote energy efficiency. This year, new efforts to help endangered salmon navigate the rivers included improvements in dam and flow configurations and installation of removable spillway weirs, sometimes referred to as fish slides. These slides not only improve fish passage for juvenile fish migrating downstream but do so using less water, thus making them more cost effective. Efforts on behalf of both anadromous and resident fish addressed protection and restoration of critical spawning and rearing habitat, water leases, enhanced control of salmon predators and improvements in hatchery and harvest management. BPA also funded or helped fund purchase of 20,000 acres of land and easements for wildlife habitat in 2005. The Federal Columbia River Power System includes 31 operating federal hydroelectric projects with over 200 generating units. During fiscal year 2005, enhancements to the system increased system efficiency by 20 megawatts. The agency moved forward on its commitment to help bring renewable power to the region with the interconnection of two wind projects into its transmission system while another interconnection is scheduled for the end of the calendar year. Both transmission and generating equipment met targets for reliability. There were no curtailments due to cascading transmission failures or inadequate power supplies. The agency established a new Office of Technological Innovation to lead development and management of the strategy for research, development, demonstration and deployment of new technology. In preparation for setting rates for fiscal years 2007-2009, BPA conducted a Power Function Review, a public process that gave the region the opportunity to examine and provide input on the cost projections that formed the basis for BPA's Initial Rate Proposal. BPA began work toward new 20-year contracts by initiating a Regional Dialogue, a public process to define BPA's long-term power supply role after existing contracts expire in 2011. The goal is to give BPA customers adequate time to understand their obligation to take future actions to develop resources. For more information and a copy of the annual report, go to the BPA Web site at: www.bpa.gov/corporate/Finance/a_report Submitted for distribution on 12-20-2005 at 3:04 PM

Bonneville Power Administration, 905 N.E. 11th Avenue, Portland, Oregon 97232 Mailing Address: Media Relations - DM7, P.O. Box 3621, Portland, OR 97208-3621 Phone: (503)230-5131 FAX: (503) 230-5884 Web Site: http://www.bpa.gov