Mr. Bill Drummond Administrator Bonneville Power Administration

NOAA will evaluate this, as well as our implementation plans for 2014-2018, to produce a newor supplementary BiOp in late 2013.Part of Bonneville’s commitment to help facilitate salmon and steelhead protection and recoveryincludes beginning construction in FY 2013 on three significant fish projects. Pursuant to PublicLaws 93-454 and 96-501, these projects require Congressional expenditure authority and arelisted in the proposed appropriations language of Bonneville’s Congressional Budgetsubmission. The projects are consistent with the 2008 Biological Opinion and the 2008Columbia Basin Fish Accords.FY 2014 BUDGET OVERVIEWBonneville is in sound financial condition and is well positioned for the future. Bonneville’s FY2014 budget proposes estimated accrued expenditures of $3,046 million for operating expenses,$61 million for Projects Funded in Advance, and $1,179 million for capital investments.Bonneville’s commitment to fish and wildlife mitigation and enhancement is exemplified in itssubstantial direct program budget of $314 million, capital and expense.Bonneville’s FY 2014 budget is a business-based budget that supports Department of Energypriorities and goals.Table BP-5 in Bonneville’s FY 2014 Congressional Budget submission provides increasedtransparency regarding potential Bonneville third-party financing activity and projects funded inadvance, which is estimated at about $2,150 million during the FY 2012 through FY 2018period.Please see Attachment A for budget data based on current services for FY’s 2012 through 2014.CONCLUSIONMr. Chairman, this concludes my prepared remarks. I am excited by the role Bonneville isplaying to achieve regional and national goals for clean, low-cost, and reliable electricitysupplies while operating in a fiscally prudent manner. I would be happy to respond to anyquestions from the Committee.6