Portland General Electric Co · NYSE:POR

Portland General Electric — Investor Presentation (May 2013)

25 slides from Portland General Electric's investor presentation, May 2013

1. Slide 1: The Pelton Round Butte Fund

   The Pelton Roumd Butte Fund

2. Slide 2: Purpose

    Purpose  support resource protection measures for Project- related impacts not otherwise covered by specific license conditions  enhance and improve habitats  enhance aquatic and terrestrial species connectivity

3. Slide 3: Programs

    Programs  General Fund  habitat mitigation and enhancements  Water Rights Fund  acquire or lease instream water rights, or participate in water conservation projects to achieve instream flows that benefit aquatic habitat

4. Slide 4: Fund deposits by year

   Year Amount (2003$) Amount Deposited 2005 $3,500,000 $3,677,000 2007 $3,000,000 3,311,000 2011 $5,000,000 6,092,000 2013 $7,000,000 8,961,000 2020 $3,000,000 5,844,000 Total $21,500,000 $27,885,000

5. Slide 5: Water Fund and General Fund deposits by year

   Year Water Fund General Fund Amount Amount Amount Amount (2003$) Deposited (2003$) Deposited 2005 $ 3,000,000 $3,152,000 $ 500,000 $525,000 2007 -- $3,000,000 $3,311,000 2011 $5,000,000 6,092,000 -- 2013 $2,000,000 $2,560,000 $5,000,000 $6,401,000 2020 -- $3,000,000 5,844,000 Totals $10,000,000 $11,

6. Slide 6: General Fund--Priorities

   General Fund--Priorities Priority 1: Proposed Resource Project is upstream of the PRB Project and supports the anadromous reintroduction program by helping to achieve a self-sustaining Chinook salmon population and a sustainable salmon harvest

7. Slide 7: Priority 2: Lower Deschutes River projects

   Priority 2: Proposed Resource Project is in the lower Deschutes River mainstem and tributaries and increases the likelihood of adult and juvenile salmonid survival as fish pass through the PRB Project to and from the basin above the PRB Project

8. Slide 8: Priority 3: Resident and anadromous fish and wildlife

   Priority 3: Proposed Resource Project enhances existing and reintroduced populations of resident and anadromous fish and terrestrial wildlife upstream or downstream of the PRB Project

9. Slide 9: Membership

    Membership – Licensees1 – CTWSRO Branch of Natural Resources (CTWSRO-BNR) – CTWSRO Water Control Board (CTWSRO-WCB) – US Fish and Wildlife Service (USFWS) – National Marine Fisheries Service (NMFS) – Bureau of Indian Affairs (BIA) – US Forest Service (USFS)/Bureau of Land Management (BLM)2 – Non-G

10. Slide 10: Decision Making

     Decision Making  One vote per member  Quorum requirements ensure key voting blocks are present*  Chairman elected annually by members  Strong emphasis on consensus (2 negative votes can deny a project)  Guidelines for conflict of interest * Voting blocs consist of: Licensees; CTWSRO (BNR or W

11. Slide 11: Application process

     Developed as an electronic form  Submitted electronically or mailed  Technical and feasibility review by implementation committees  No firm restrictions on funding amounts  Instruction and guidelines are available

12. Slide 12: Activities to be funded

     Activities to be funded  Conservation easements  Locating parcels  Establishment of easements  Surveying  Ongoing restoration, monitoring and enforcement  Construction of fish passage facilities/removal of fish passage barriers  Removal of private and non-federal dam and/or diversion  Cons

13. Slide 13: Activities to be funded (cont'd)

     Activities to be funded (cont’d)  Instream habitat improvements:  Improvement of cover, pool and riffle structure, spawning beds, water quality  Planning, design and effectiveness monitoring  Off-Project recreation Impacts  Protection and enhancement of riparian corridors, wetlands, spawning

14. Slide 14: Activities to be funded (cont'd)

     Activities to be funded (cont’d)  Riparian and wetland protection and enhancement  Protection of riparian corridors and wetlands from grazing  Provide native species plantings  Manage non-native plant species  Erosion control  Planning, design and effectiveness monitoring

15. Slide 15: Activities to be funded (cont'd)

     Activities to be funded (cont’d)  Land acquisition or lease of riparian, wetlands and uplands  Locating parcels  Purchase costs  Purchase and title expenses  Surveying  Ongoing restoration, monitoring and management

16. Slide 16: Activities to be funded (cont'd)

     Activities to be funded (cont’d)  Water rights acquisition  Locating rights  Purchase/lease costs  Purchase and title expenses  Ongoing monitoring  Water conservation projects pursuant to the Conserved Water Act, ORS 537.455 et. seq. that yield legally protected instream water rights

17. Slide 17: Activities to be funded (cont'd)

     Activities to be funded (cont’d)  Other activities will be funded if:  The Licensees include it in their proposed project recommendations to the Governing Board  The proposed Resource Project receives unanimous support from the Governing Board

18. Slide 18: Partnerships, cost sharing and resources

     Consider Partnerships  NGOs and Watershed Councils  Multiple landowners  Resource Agencies  Cost Sharing/Matching  Not required, but highly desirable  In-kind and Cash  Technical Resources Available  Guidance documents in application instructions  Watershed councils and NGOs  Focus on Ou

19. Slide 19: Next funding cycle is 2020

     Next funding cycle is 2020  Approximately $5.8 million will be available for projects

20. Slide 20: 12/31/2013

    12/31/2013

21. Slide 21: Administration

     Administration  Process driven by Licensees  Licensees will consult with appropriate resource agencies and settlement stakeholders  Funding not subject to Governing Board Approval  Reporting Requirements  Funding decisions made in 2013 for project commencing in 2014

22. Slide 22: Guidelines

     Guidelines  Funds to be used for locating appropriate rights, purchase/lease costs, title expenses, and ongoing monitoring and for conservation projects  Water rights acquisitions must go instream at times and locations that improve aquatic habitat values beyond existing conditions.

23. Slide 23: Guidelines (cont'd)

     Guidelines (cont’d)  Water Project must result in net benefit to aquatic resources  Acquisition of permanent water rights shall be accorded a higher priority than acquisition of temporary water rights  Licensees will consider the price of comparable transactions

24. Slide 24: Guidelines (cont'd)

     Guidelines (cont’d)  Funds may not be used to acquire water rights that serve as mitigation for the impacts of groundwater development in the Deschutes River Basin

25. Slide 25: Application and contact information

     Electronic application, guidance and other documentation is available at PGE’s website: http://www.portlandgeneral.com/community_environment/initiatives/protecting_fish/deschutes_river/pelton_round_ butte_fund.aspx For additional information, contact: Scot Lawrence 121 SW Salmon Street 3-WTC BRHL

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