Mr. Bill Drummond Administrator Bonneville Power Administration

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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
Attachment ABonneville Power AdministrationFunding Profile by Subprogram 1/(Accrued Expenditures in Thousands of Dollars)Fiscal Year2012 2013 2013 2014(Actuals) Original 2/ Revised 2/ ProposedCapital Investment ObligationsAssociated Project Costs 3/ 214,187 N/A 248,349 249,802Fish & Wildlife 57,679 N/A 67,145 60,275Conservation & Energy Efficiency 3/ 79,785 N/A 75,200 75,200Subtotal, Power Services 351,651 N/A 390,694 385,278Main Grid 64,070 N/A 213,321 233,097Area & Customer Service 7,356 N/A 32,663 21,128Upgrades & Additions 95,940 N/A 237,463 275,648System Replacements 87,469 N/A 233,610 216,557Transmission Services Total 254,836 N/A 717,057 746,430Capital Equipment & Bond Premium 44,149 N/A 57,813 46,897Total, Capital Obligations 3/ 650,637 937,196 1,165,563 1,178,605Expensed and Other ObligationsExpensed 2,832,169 2,464,963 2,929,697 3,046,259Projects Funded in Advance 304,698 94,989 71,790 60,511Total, Obligations 3,787,503 3,497,148 4,167,050 4,285,375Capital Transfers (cash) 493,194 877,573 179,174 132,442Bonneville Total 4,280,697 4,374,721 4,346,224 4,417,816Bonneville Net Outlays 340,000 (10,000) (10,000)Full-time Equivalents (FTEs) 3,037 3,117 3,175 3,100Public Law Authorizations include:Bonneville Project Act of 1937, Public Law No. 75-329Federal Columbia River Transmission System Act of 1974, Public Law No. 93-454Regional Preference Act of 1964, Public Law No. 88-552Flood Control Act of 1944, Public Law No. 78-543Pacific Northwest Electric Power Planning and Conservation Act of 1980 (Northwest Power Act), Public LawNo. 96-501These notes are an integral part of the preceding tables.1/2/3/This budget has been prepared in accordance with PAYGO. Under PAYGO all Bonneville budgetestimates are treated as mandatory and are not subject to the discretionary caps included in the BudgetControl Act of 2011. These estimates support activities which are legally separate from discretionaryactivities and accounts. Thus, any changes to Bonneville estimates cannot be used to affect any otherbudget categories which have their own legal dollar caps. Because Bonneville operates within existinglegislative authority, Bonneville is not subject to a "pay-as-you-go" test regarding its revision of currentlawfunding estimates.Original estimates reflect Bonneville's FY 2013 Congressional Budget Submission. Revised estimates,consistent with Bonneville's annual near-term funding review process, provide notification to theAdministration and Congress of updated capital and expense funding levels for FY 2013.Includes infrastructure investments designed to address the long-term needs of the Northwest and toreflect significant changes affecting Bonneville's power and transmission markets.7

Mr. Bill Drummond Administrator Bonneville Power Administration

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