Reliability Competitive Rates Exceptional Service

• Reliability

• Competitive Rates

• Exceptional Service

US Electric Generation

• Coal 50%

• Nuclear 20%

• Natural Gas 19%

• Hydro 8%

• Renewables 2.5%

• Wind .5%

“I’d put my money on solar energy…I hope we don’t have to wait ‘til oil and coal run out before we tackle that.”

Thomas Edison - 1931

Solar Power

Natural Gas Rate Forecast

• Natural gas prices are volatile

• Being used to produce new power

• Will be more dependent on imports

Electric Rate Forecast

• Flat through 2011

• BPA Tier 1

• BPA Tier 2 to meet load growth

• Will grow at about 2 MW per year

BTU Heating Comparison

January KWh Sales

National Rate Comparison

• Lower Valley 4.8

• National Average 10.3

• Wyoming 7.5

Natural Gas Pipeline

• Reliability

• Cost Savings

• 50 miles

• Start this June

• $20 million budget

Caribou Transmission Line

• Reliability

• Growth

• $14 million budget

• BPA $9.3 million

• LVE $4.7 million

Swift Creek

• Partnership with Afton

• 8 million KWH green power

• $5.6 million budget

• Upper dam 2008

• Lower and culinary 2009

Automatic Meter Reading

• 10,000 meters installed

• Read from office

• Smart grid – water and space heat