Bonneville Power Administration Overview As of June 17, 2019 High - PowerPoint PPT Presentation

Bonneville Power Administration Overview As of June 17, 2019 High Voltage Transmission Grand Coulee Dam Columbia Generating Station

The information in this investor presentation is a summary of certain information concerning the Bonneville Power Administration (“BPA”) and is not intended to contain all information material to investors. This investor presentation is provided for your information and convenience only. This investor presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument or to adopt any investment strategy. In no event shall BPA be liable for any use by any party of, or any decision made or action taken by any party in reliance upon the information contained herein. BPA makes no representations as to the legal, tax or accounting treatment of any BPA-supported security. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of BPA-supported securities. Past performance is not indicative of future performance, which will vary. This investor presentation you are about to view is provided as of June 17, 2019. If you are viewing this presentation after June 17, 2019, there may have been events that occurred subsequent to such date that would have a material adverse effect on the financial information that is presented herein, and BPA has not undertaken any obligation to update this investor presentation. This investor presentation contains statements which, to the extent they are not recitations of historical fact, may constitute “forward-looking statements.” In this respect, the words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe” and similar expressions are intended to identify forward-looking statements. A number of important factors affecting BPA’s business and financial results could cause actual results to differ materially from those stated in the forward-looking statements. Bonds supported by BPA’s financial obligations and the obligations of BPA providing such support are not nor shall they be construed to be general obligations of the United States of America nor are such bonds or obligations intended to be or are they secured by the full faith and credit of the United States of America. 2

Port of Morrow: Transmission Facilities Revenue Bonds Bonneville Cooperation Project No. 6, Series 2019 (Federally Taxable) Par Amount* $98,085,000 Structure* Fixed rate maturities; Serial bonds due September 1, 2024, 2025 and 2026 Interest Starting September 1, 2019 and semiannually on March 1 and September 1 thereafter Payment Dates* Pricing Date* Tuesday, June 25, 2019 Settlement Date* Wednesday, July 10, 2019 The Series 2019 Bonds will be special obligations of the Port of Morrow, Oregon (“POM” or the “Issuer”) payable solely from the trust estate pledged therefor which trust estate includes amounts derived from rental payments paid to the Issuer. Security Bonneville’s payments under the Lease-Purchase Agreement will be made solely from the Bonneville Fund. The Lease-Purchase Agreement provides that Bonneville’s obligation to pay the rental payments and all amounts payable under the Lease-Purchase Agreement is absolute and unconditional, and is payable without any set-off or counterclaim, regardless of whether or not the Project financed with the proceeds of the Series 2019 Bonds is operating or operable. The proceeds from the sale of the Series 2019 Bonds will be used by the Issuer to refinance indebtedness issued for the cost of acquiring, constructing, installing and equipping of certain transmission facilities owned by the Port of Morrow and leased to Bonneville. The Issuer financed such acquisition, construction, Use of Funds installation and equipping of transmission facilities through a credit agreement with Citibank, N.A., and secured its obligations under such credit agreement with a Lease-Purchase Agreement by and between the Issuer, as lessor, and Bonneville, as lessee, and the payments from Bonneville thereunder. Optional Redemption* Redeemable any time at the Make-Whole Redemption Price Ratings Aa1/Negative (Moody’s) / AA/Stable (Fitch) Interest on the Series 2019 bonds is expected to be subject to Federal income tax and exempt from Oregon Tax Status state income tax (Please refer to Preliminary Official Statement) Syndicate Citigroup, TD Securities, BofA Merrill Lynch, and Wells Fargo Securities *Preliminary, subject to change; when, as, and if issued 3

Overview BPA Operated Line Federal Dam Non-BPA Line BPA Service Area 4

BPA at a Glance One Agency with  Power Services and Transmission Services revenue exceeded $3.7 billion in FY18 Two Business  BPA’s customers primarily include utilities throughout the Pacific Northwest Units  Virtually carbon-free - BPA markets power from 31 federally-owned hydroelectric projects and Unique Hydro- several Non-Federal projects Based System  Provides stability, flexibility and reliability to meet electric demands with limited fuel price risk  Revolving authority to borrow up to $7.7 billion in bonds from the U.S. Treasury Available  $2.2 billion available as of Sept. 30, 2018 Funding Sources  Non-Federal Debt (such as the Series 2019 Bonds) accounts for approximately half of BPA’s total debt  BPA is required by law to establish rates to recover all costs Cost Recovery  FERC reviews and approves rates to ensure that BPA rates recover all costs  Cash payments and monetary credits by BPA for Non-Federal Debt are met before payments Non-Federal by BPA to the U.S. Treasury; Non-Federal Debt coverage has exceeded 2.0x since 1999 Payment Priority and Financial  BPA maintains substantial cash and investment balances. When combined with a $750 million Reserves U.S. Treasury line of credit, BPA had 254 days of liquidity on hand as of Sept. 30, 2018 5

One BPA -Two Business Units Cash receipts from all sources deposited in the Bonneville Fund are available to pay Bonneville’s costs, including Non-Federal debt costs Power Services  Provides approximately 27% of the electric power consumed within the Region  Primarily serves over 125 Preference Customer utilities (which are qualifying publicly-owned utilities and consumer- owned electric cooperatives) and several federal agencies under contracts through September 2028  Approximately $2.8 billion in revenue in FY18 Transmission Services  Delivers power between resources and loads within the Region and transmits imports to and exports from the Region  Approximately three-fourths of the bulk transmission capacity in the Region  15,000 circuit miles of high voltage transmission lines and 260 substations and other facilities  Approximately $963 million in revenue in FY18  Bonneville’s payments under the Lease-Purchase Agreement will be made solely from the Bonneville Fund Top Customers by Business Unit Transmission Services Top 5 Customers (FY18) Power Services Top 5 Customers (FY18) Percentage of Percentage of Sales* 1 1 Sales* Customer Customer Puget Sound Energy Inc. (IOU) 12% Snohomish County PUD No. 1 (Preference) 9% PacifiCorp (IOU) 10% Pacific Northwest Generating Cooperative (Preference) 7% Portland General Electric Company (IOU) 9% City of Seattle, City Light Dep't (Preference) 6% Powerex Corp. (Power Marketer) 7% Cowlitz County PUD No. 1 (Preference) 6% Avangrid Renewables LLC (Wind Developer) 5% Tacoma Power (Preference) 5% Total 43% Total 33% 1 Approximate; excludes inter-business line transactions between Power Services and Transmission Services. In support of its power marketing activities, 6 Power Services obtains large amounts of transmission and related service from Transmission Services.

Federal and Non-Federal Debt Outstanding 1 Total: $15.0 billion Borrowings from Federal Appropriation Non-Federal Debt U.S. Treasury Repayment Obligations $7.7 billion $5.5 billion $1.8 billion 51% 37% 12%  Energy Northwest  BPA is authorized to issue and sell  BPA repays amounts that have $5.2 billion  Lease-Purchase Program $2.2 billion to the United States Treasury, and been appropriated by Congress to to have outstanding at any one construct the Federal System  Prepaid Power Purchases $0.2 billion time, up to $7.7 billion aggregate  Non-Federal Generation $0.1 billion principal amount of bonds 7 1 As of 9/30/2018; totals may not add due to rounding.