**UNITED STATES OF AMERICA**

**U.S. DEPARTMENT OF ENERGY**

**BEFORE THE BONNEVILLE POWER ADMINISTRATION**

Proposed Safety-Net Cost Recovery )

Adjustment Clause Adjustment to ) **BPA Docket No. SN-03**

2002 Wholesale Power Rates )

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**REPLY BRIEF OF GOLDEN NORTHWEST ALUMINUM, INC.**

**IN RESPONSE TO STAFF\'S DRAFT RECORD OF DECISION**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> Paul M. Murphy
>
> Murphy & Buchal LLP
>
> 1500 SW First Avenue, Suite 1135
>
> Portland, OR 97201
>
> Phone: 503-227-1011
>
> Fax: 503-227-1034
>
> <pmurphy@mbllp.com>
>
> Attorney for Golden Northwest
>
> Aluminum Inc.

June 20, 2003

**Table of Contents**

# I. PRELIMINARY STATEMENT 1

# II. ARGUMENT 2

**A. No SN CRAC is Warranted** 2

**Response to Issues 1 and 2 of DROD § 3.1 (Whether the**

**SN CRAC was properly triggered)** 2

**B. BPA\'s Record is Woefully Inadequate** 5

**Response to Issue 1 of DROD § 3.3** 5

**Response to Issue No. 2 of DROD § 3.3** 8

**Response to the General Lack of Evidentiary Support for**

**Any SN CRAC in This Proceeding** 10

**C. Accuracy of the General Rate Schedule Provisions** 13

**Response to Appendix A -- General Rate**

**Schedule Provisions** 13

**Conclusion** 14

**REPLY BRIEF OF GOLDEN NORTHWEST ALUMINUM, INC.**

### IN RESPONSE TO STAFF\'S DRAFT RECORD OF DECISION

# I. PRELIMINARY STATEMENT

This proceeding involves one of the most controversial rate increases
that BPA has ever proposed, its plan to bleed \$920 million from an
ailing Northwest economy while unemployed rate payers and closed
businesses find themselves unable to pay their electricity bills.
Ordinarily, a controversial federal action would engender a more
complete process of disclosure and consideration. *Cf.* 40 C.F.R. §
1508.27 (NEPA regulations defining "significance" with respect to public
controversy over environmental impacts). But BPA has instead responded
to the controversy in the opposite fashion, misusing procedural
objections to hide the ball, and failing entirely to place in the record
evidence to support the rate increase it now proposes.

Indeed, this entire proceeding has been conducted in a fashion that
ensured the parties would never have an opportunity to address key
factual matters directly relevant to the magnitude and design of the SN
CRAC. BPA\'s witnesses swore to the accuracy of testimony that included
forecasts the witnesses knew to have been superseded, and the superceded
forecasts have yet be corrected on the record. At this point, the last
point at which the parties have any opportunity to respond to BPA's
proposal, BPA has yet to put into the administrative record any evidence
whatsoever about its current financial status and the need, if any, for
an SN CRAC. That BPA proposes to provide some information in the future
does not warrant now concealing the essential facts upon which the
decision in the Record of Decision will be made.

Staff\'s draft Record of Decision (\"DROD\") confirms that this entire
process has been a sham that does not meet minimal requirements of due
process of law, much less afford the parties the substantive and
procedural protections of § 7 of the Pacific Northwest Electric Power
Planning and Conservation Act (\"Northwest Power Act\"), 16 U.S.C.
§ 839e. There never was proper ground to trigger the SN CRAC process in
the first place, and any resulting rate cannot stand on the record
before the Administrator.

Insofar as BPA's procedural rules require parties to repeat all
arguments previously made herein to avoid claims of waiver (Rule
1010.13(d)), Golden Northwest Aluminum, Inc. (\"GNA\") attaches hereto
as Exhibit 1 its Initial Brief (SN-03-B-GN-01) and incorporates it
herein.

### II. ARGUMENT

**A. No SN CRAC is Warranted.**

**Response to Issues 1 and 2 of DROD § 3.1 (Whether the SN CRAC was
properly triggered):**

Beyond the errors set forth in Exhibit 1, the most serious error in the
Draft Decision is Staff\'s declaration that \$315 million in reduced
Energy Northwest (\"ENW\") costs could properly be ignored in making the
determination that BPA properly triggered the SN CRAC process. Staff
argues first that \"BPA had not acquired the referenced \$315 million in
debt extension benefits at the time of the trigger determination.\"
(SN-03-A-01, at 3-8.) Insofar as the trigger determination was based
entirely upon forecasts of costs and revenues that had not yet been
realized at the time of the trigger determination, this argument is
specious. Staff acknowledges that the benefits were \"expected\" at the
time of the trigger determination, and that the benefits are indeed
available. (*Id.*) The \$315 million in ENW cost reductions was more
certain to occur than most elements of the forecasts used to make the
trigger determination. Indeed, it has occurred, whereas the gloomy
forecast of revenues from surplus sales that was a major driver in BPA's
alleged revenue gap in FY 2003 has not come to pass.

Staff next argues that it would be \"financially imprudent\" for BPA to
use the \$315 million in cost savings to cover other costs or scheduled
Treasury paymentexpressly acknowledging the feasibility of so
doingrather than prepaying Treasury debt that is not yet due. (*Id.*;
*see also id.* at 3-10 (Administrator acknowledges funds may be used to
pay Treasury).) First, GRSPs make the question of financial prudence
irrelevant to triggering the SN CRAC process.[^1] They bind the
Administrator to make a good-faith forecast of BPA's costs and revenues,
and a good-faith estimate of the resulting Treasury Payment Probability
(TPP). They do not permit the Administrator arbitrarily to single out
some costs or revenues and exclude them from the forecast in order to
reduce TPP, and thereby trigger the SN CRAC.

In response to the fact that the GRSPs do permit exclusion of ENW
savings from FB CRAC forecasting, while simply calling for a
\"forecast\" for the SN CRAC, Staff argues that \"the record must be
reviewed to determine BPA's intent.\" (Id. at 3-11.) But Staff does not
and cannot point to anything in any record[^2] proving some sort of
secret intent on the part of BPA to exclude cost savings from the ENW
refinancings from the SN CRAC forecasts, and all canons of
interpretation compel the conclusion that by reserving such a right with
respect to the FB CRAC, but not the SN CRAC, no such intent can be
inferred. There is no ambiguity in the GRSPs that permits any resort to
BPA's inchoate intent.[^3]

Staff next resorts to misdirection, claiming that \"the GRSPs state
that, in developing BPA's initial proposal, BPA will give priority to
*prudent* cost management and other options than enhance TPP while
minimizing rate increases.\" (*Id.* at 3-12; emphasis in original.) That
prudence might have a role determining \"which proposal to include in
its initial proposal in the SN CRAC Section 7(i) proceeding\" (GRSPs at
116), has nothing to do with whether BPA may arbitrarily exclude certain
forecasted cost reductions from the trigger forecasting. Indeed, just
pages before invoking prudence to justify its trigger decision, Staff
affirmatively argues that under the GRSPs its consideration of
\"prudence\" need not be conducted \"before the Administrator triggers
the SN CRAC process, but rather in the development of BPA's initial
proposal\" (A-01, at 3-3), making the invocation of \"prudence\" to
justify a bogus forecast hypocritical at best.

The final misdirection comes in Staff's extensive analysis of the
evidence concerning the actual risk of missing a Treasury payment, which
Staff urges the Administrator to ignore because \"the fact that costs,
revenues, water or prices may change over time does not effect the
trigger determination.\" (*Id.* at 3-13.) Specifically, staff argues
that the testimony of Faddis, *et al.*, E-CC-01 and Bliven, *et al.*,
E-JC-01 \"rely upon assumptions that were not available at that time
\[*i.e.*, the time the trigger determination was made\] or that continue
to be inappropriate assumptions.\" (A‑01, at 3-14.)

It is true that some of the trigger cases, particularly those cited by
GPU, relied upon assumptions beyond the availability of the ENW
refinancing cost reduction. But recognizing that BPA's own forecast
improperly ignored the availability of \$315 million due to the ENW
refinancing, the Customer Coalition did present a trigger case that
paralleled the model run actually used by BPA to make the trigger
determination (E-CC-01E), with the only difference in assumptions being
the reduction in ENW costs that Staff acknowledges were fair to assume.
Remarkably, Staff does not address this case at all, instead focusing on
other model runs.[^4] Thus, argument again reduces to the asserted
\"prudence\" of excluding the cost savings from the forecast (A-01 at
3-16), a factor that the plain language of the GRSPs squarely
forecloses.

The unrebutted evidence in the record leaves no doubt that, but for that
decision, the TPP calculated by BPA would have substantially exceeded
the SN CRAC trigger threshold, and, indeed, there was no measurable risk
of missing a Treasury payment at all. (E-CC-01 at 6) Under these
circumstances, it was entirely improper for these § 7(i) proceedings
ever to have commenced. Moreover, as BPA now acknowledges that its
ability to make its FY 2003 scheduled Treasury payment *plus* prepay any
additional \$315 million in Treasury debt is virtually 100% certain
(A-01 at 2.7-8), BPA should simply decline to implement an SN CRAC at
this time.

**B. BPA\'s Record is Woefully Inadequate.**

***Response to Issue 1 of DROD § 3.3:***

In the Draft Decision, Staff appears to propose that the Administrator
overrule the Hearing Officer's decision to permit a response to the
question: \"And what is Bonneville's current view for what the
equivalent number is going to be for FY 2003 \[for the negative \$191
million in FY 2003 Net revenues shown on E-BPA-11F and sponsored by the
witness\]?\" (SN-03-A-01, at 3-20 (citing Tr. 93)).[^5] Staff offers no
grounds for objection to the question whatsoever, which self-evidently
concerns facts fundamental to establishing the SN CRAC.

After asking the question, the cross-examiner offered to permit the
witness to refresh her recollection, *if she chose to do so*: \"And if
it helps refresh your recollection, I would point to the second quarter
review that was introduced this morning by ICNU as E-IN-06, page 3.\"
(Tr. 93) In so doing, the cross-examiner was not questioning the witness
about E-IN-06; the question solely asked the witness for an update to
Exhibit E-BPA-11F which had been sponsored by the witness.

It is axiomatic that anything, whether admitted into evidence or not,
can be used to refresh a witness' recollection (Fed. R. Evid. 612;
McCormick on Evidence § 9 (3d ed. 1984)). Staff offers no authority, and
we are aware of none, that would permit BPA to shut down questioning of
its witnesses merely because the answer to a question might also be
reflected in a document that may or may not have been admitted into
evidence.

Staff now argues that \"the transcript reveals an intent by Golden
Northwest's counsel to cross-examine BPA witnesses on Exhibit E-IN-6\"
(SN-03-A-01 at 3-20 (citing Tr. 95)), but a pending question is not
rendered objectionable by speculation by opposing counsel about
questions that may or may not follow it. In fact, however, the
transcript reveals no such intent. Rather, the question (and offer of
the document to refresh recollection) triggered an extended and
unprofessional tirade from Bonneville\'s counsel, and the remarks Staff
now mischaracterize as showing some sort of inchoate intent to question
the witness about the document were no more than remarks refuting the
false accusations of collusion and sandbagging. What the transcript does
show is that the witness was not cross-examined about the ICNU exhibit
at all; Golden Northwest simply wanted to clarify for the record that
the witness' filed testimony overstated BPA's expected losses in FY 2003
by \$104 million. (Tr. 104, ll. 8‑16.)

Staff counsel's false and unwarranted allegations of \"sandbagging\"
were entirely irrelevant to the propriety of the pending question, and
are best understood as an improper and unprofessional attempt to
prejudice the Hearing Officer. They should not be endorsed in any way in
the final Record of Decision, for there was no such collusion or
sandbagging, nor was there any basis for Staff counsel to assume that
there had been.

The document mentioned to the witness as a possible source to refresh
her recollection (E-IN-06), had been admitted to the record under the
following circumstances:

> \"MR. SANGER: Your Honor, my name is Irion Sanger, attorney for the
> Industrial Customers of Northwest Utilities. Move to the admission of
> Coalition Customers testimony and the cross-examination exhibits of
> ICNU....
>
> \"HEARING OFFICER ARLOW: Does counsel for Bonneville have any comment
> to make with respect to the offering of these exhibits by the
> Industrial Customers of Northwest Utilities?
>
> \"MR. BURGER: Your Honor, I receive the documents. There was an
> agreement between myself and counsel for the customerfor ICNU. I
> guess these are on behalf of ICNUthat we would waive
> cross-examination of their witnesses. And we would not object to the
> introduction of these documents into evidence.\" (Tr. 8-9)

There was never any agreement between Golden Northwest and BPA that
Golden Northwest would forgo cross-examination of any witness that would
be appearing to testify.[^6]

Staff now argues that Rules of Practice should be interpreted after the
fact to expand the stipulation that Bonneville counsel expressly
recognized as being between Bonneville and ICNU to extend to bind \"all
parties making up the Coalition Customers.\" (*Id.* at 3‑21). The Rule
itself wisely states that any grouping adopted by customers \"will be
without derogation to the right of any party to represent a separate
point of view where its position differs from that of a group in which
it is participating.\" (Order, SN-03-O-01, at 1.) Simply put, Golden
Northwest did not agree to waive cross-examination by virtue of the fact
that ICNU did so waive. If adopted by the Administrator, Staff's
position would discourage parties with common interests from ever making
any joint presentation because they might thereby be bound by agreement
to which they are not parties and of which they had no knowledge.

The final Record of Decision should not endorse Staff counsel\'s
unprofessional conduct, nor should it extend BPA\'s rules of practice to
achieve perverse and unintended results.

***Response to Issue No. 2 of DROD § 3.3:***

The unprofessional attempts to foreclose cross-examination with respect
to BPA's current financial condition persisted. Specifically, Staff
counsel objected to the question: \"What is the total expected
improvements \[*i.e.*, for the entire rate period\] as Bonneville sees
it now as compared to the time at which the Table 11-F was prepared?\"
(Tr. 106.) Remarkably, Staff defends the Hearing Officer's refusal to
permit a response to this question *without addressing the substance of
the question at all*, perhaps because there is, and can be, no
cognizable objection to the question.

Instead, displaying a regrettable lack of candor, Staff points to a line
of questions involving a \$100 million adjustment to interest income
that GNA's counsel had abandoned before posing the question at issue.
(SN-03-A-01, at 3‑23.) Specifically, when counsel asked whether \"any
Bonneville staff member had given you that number, the \$100 million\"
(Tr. 105), Bonneville counsel objected that \"there may be a
confidentiality issue involving settlement discussions.\" (*id.*)
Recognizing that the question could arguably be construed to call for
testimony concerning the events during settlement discussions, counsel
for GNA withdrew the question and posed the more general question at
issue here. (Tr. 107, ll. 14-19.)

Even so, Staff's diatribe about the magnitude of BPA's net interest
income was wholly without merit. There is no barrier to inquiring about
substantive facts merely because those facts may have been mentioned in
settlement negotiations. Staff vaguely refers to concerns about
\"violating any applicable confidentiality terms by discussing items
raised during \"settlement discussions\" (SN-03-A-01, at 3‑23), but
there are no \"applicable confidentiality terms\" to be violated.
Federal Rule of Evidence 408, the only relevant \"confidentiality\"
provision, simply does not bar questioning regarding highly relevant
factual matters merely because they may have been mentioned during
settlement discussions. To the contrary, Rule 408 expressly states that
\"\[t\]his rule does not require the exclusion of any evidence otherwise
discoverable merely because it is presented in settlement
negotiations.\"[^7]

Finally, Staff retreats to the bizarre accusation that counsel for
Golden Northwest did not lay any foundation for asking the witness about
her knowledge of the \$100 million number. (SN-03-A-01, at 3-23.) Again,
the \$100 million figure is irrelevant to the question at issue, *i.e.*,
the total magnitude of BPA's expected negative net income for the rate
period at the time the witness took the stand. Bonneville laid the
foundation for that question by placing Table 11-F in the record,
testifying in rebuttal testimony that it would incorporate potential
changes into the final SN CRAC (SN-03-BPA-11, at 52), and confirming
during cross-examination that BPA had already identified several cost
and revenue assumptions that it planned to change (Tr. 38-41, 104).[^8]
Indeed, the witness had previously testified that the answer to Golden
Northwest's question (*i.e.*, BPA expected net revenues for the rate
period) was essential to determine the size of the SN CRAC under Staff's
proposal. (Tr. 38, l. 23 through 39, l. 4.) It is absurd to contend that
essential facts may be excluded from evidence merely because one party
may have alluded to such facts during settlement discussions.

It was error for the Hearing Officer to forbid questioning concerning
changes to Bonneville's financial estimates, particularly after its
witnesses had acknowledged the existence of such changes. The baseless
objections advanced by Staff then and now to disclosing the changes in
BPA's financial position should not be endorsed in the final Record of
Decision.

###### **Response to the General Lack of Evidentiary Support for Any SN CRAC in This Proceeding:**

Pursuant to § 7(i)(2)(A) of the Pacific Northwest Electric Power
Planning and Conservation Act (\"Northwest Power Act\"), 16 U.S.C.
§839e(i)(2)(A), \"any person shall be provided an adequate opportunity
by the hearing officer to offer refutation or rebuttal of any material
submitted by another other person or the Administrator.\" Under the
Northwest Power Act, all materials that will constitute part of the rate
case administrative record shall be submitted "prior to, or before the
close of, hearings...." *See* 16 U.S.C. § 839e(i)(4).

Once the record is established, \"\[t\]he Administrator shall make a
final decision establishing a rate or rates based on the record....\" 16
U.S.C. § 839e(i)(5). It is clear beyond doubt that the Administrator
cannot rely upon factual material not admitted into evidence in setting
rates, for upon judicial review, \"final determinations regarding rates
under section 839e of this title shall be supported by substantial
*evidence* in the rulemaking record required by section 839e(i) of this
title....\" 16 U.S.C. § 839f(e)(2) (emphasis supplied).

BPA acknowledges in its DROD that \"a great number of *factual* and
legal factors must be taken into account in deciding the issues in this
case...\" (A-01, at 2.7-10; emphasis supplied.) Remarkably, nowhere does
the DROD identify *factual evidence* in the rulemaking record that could
support the proposed SN CRAC. In lieu of evidence, the DROD blandly
states that:

> \"BPA's financial outlook has improved significantly since the release
> of the initial proposal. Through a combination of hard work in
> reducing expenses, cash flow improvements due to ENW/BPA debt
> management efforts, and the good fortune of improvements in secondary
> revenues, it is now possible to achieve a much higher TPP at a much
> lower rate than at the time of the initial proposal.\" (A-01, at
> 2.7-13.[^9])

These statements are not supported by any citation to the record, nor
could they be. Indeed, the improvements constitute precisely the subject
matter on which Staff and the Hearing Officer improperly foreclosed
inquiry, and about which BPA's witnesses were only able to testify in
similarly generic terms.

Notwithstanding the absence of any quantitative evidence of record upon
which such a calculation could be based, BPA asserts that collectively,
these improvements produce rates with \"an average expected value for
FY2004-2006 rates of about 5 percent above the total rate level for
2003.\" (A-01, at 2.7-13.) Indeed, BPA even calculates ending reserves
of \$354 million (id. at 2.8-18), again without disclosing the evidence
upon which such a calculation is based. The Initial Study describes at
length the detailed numerical inputs to computer models that are
required to calculate such numbers (E-BPA-01, at 7-10 to 7-15.) It is
obvious that the Draft Decision is based upon specific assumed values
for such parameters that BPA has refused to put into the evidentiary
record where, consistent with the requirements of section 7(i), the
parties may have an adequate opportunity to respond to them.

BPA's account executives are circulating a chart entitled \"Expected
Power Rate Adjustments over May 2000 Base Rates FY 2002-2006\" with SN
CRACalso not part of the record, but annexed hereto as Exhibit
2[^10]that suggests that the 5% number is at best misleading, and
further demonstrates that BPA has, somewhere, the detailed quantitative
information that it refuses to place in the evidentiary record or
disclose to the parties.

As the chart demonstrates, BPA has estimated that its SN CRAC amounts to
an average 15% surcharge on base rates (an 11% increase in the rates
that would be in effect absent the SN CRAC) for the balance of the rate
period. The 5% number, if it is correct at all, represents the net
effect of the 11% SN CRAC increase offset by some reductions in the LB
CRAC and FB CRAC. In a context where the Pacific Northwest has the
highest unemployment rates in the country, in part because BPA's rate
increases have caused significant declines in manufacturing employment,
an 11% rate increase premised on the now-non-existent possibility of
missing the FY2003 Treasury payment (A-0, at 2.7‑5) is bad public policy
and is unsupported by any evidence in the record.

While BPA pays lip service to the poor regional economic conditions,
remarkably, *BPA now proposes to end up with higher ending reserves than
in its initial proposal.* (A-01, at 2.8-18 (\$348 million in initial
case; \$354 million now).) It is even worse policy for BPA to seek
further to advantage itself even as its position improves, and the
Region's declines.

**C. Accuracy of the General Rate Schedule Provisions.**

***Response to Appendix A -- General Rate Schedule Provisions:***

Quite aside from the merits of the proposed SN CRAC, BPA released the
General Rate Schedule Provisions (\"GRSP\") at 3:00 p.m. on Monday, June
16, 2003, and parties\' responses to the 240 page DROD, including the 32
pages of new GRSPs, is due by 3:00 p.m. on Friday, June 20, 2003. This
time frame is far too short to allow parties to both prepare their reply
briefs and evaluate the GRSPs to see that they in fact do what they are
intended to do. We understand that the Western Public Agencies Group
and/or other customer groups will be asking BPA to conduct a workshop
with customers before issuing the final Record of Decision to assure
that the GRSPs work as intended (and to correct any errors or
ambiguities if any are identified). Golden Northwest Aluminum, Inc.
supports and joins this request.

**Conclusion**

There is a unanimous consensus among virtually all parties directly
affected by the SN CRAC that no SN CRAC rate increase is appropriate at
all in FY 2004, as these parties recognize the fragile nature of the
regional economy. The regional economy has not improved, but BPA
acknowledges substantial improvements in its own financial position.
While BPA has concealed the magnitude of such changes, refusing to
document them on the record, Golden Northwest accepts BPA's statement
that the improvement is very significant.

Under all these circumstances, BPA could easily determine that no SN
CRAC is required in FY 2004. Given BPA's extraordinary refusal to
document the rapid improvements in its financial position on the record,
the Draft Decision cannot fairly cite stale evidence for the proposition
that \"BPA still faces a net revenue problem over the balance of the
rate period necessitating some rate adjustment.\" (A-01, at 2.7-24 to
25)

The principal excuse offered by Staff for not eschewing an FY 2004 SN
CRAC adjustment is the claim that \"it would not be prudent to tilt the
rate to minimize the SN CRAC in FY 2004 with resulting higher rates in
FY 2005 and FY 2006.\" (A-01, at 2.7-24.) Golden Northwest urges BPA to
not be so presumptuous as to think it knows what is best for customers,
who are all \"willing to trade the risk of a higher increase in FY 2005
for a lower rate in FY 2004.\" (*Id.* at 2.7-23.) To the extent that the
TPP-only financial standard creates greater sensitive to the timing of
revenue collection than under the three-standard approach (*id.* at
2.7-24), BPA should rely upon a combination of TRP

and a lower TPP or any other grounds offered by BPA\'s economically
strapped customers to avoid any FY 2004 SN CRAC rate increase.

Dated: June 20, 2003

> Respectfully submitted,
>
> /s/ Paul M. Murphy

Paul M. Murphy

**Murphy & Buchal, LLP**

1500 S.W. First Avenue, Suite 1135

> Portland, Oregon 97201
>
> Telephone: (503) 227-1011
>
> Facsimile: (503) 227-1034
>
> E-mail: pmurphy@mbllp.com
>
> Attorney for Golden Northwest
>
> Aluminum, Inc.

**UNITED STATES OF AMERICA**

**U.S. DEPARTMENT OF ENERGY**

**BEFORE THE BONNEVILLE POWER ADMINISTRATION**

Proposed Safety-Net Cost Recovery )

Adjustment Clause Adjustment to ) **BPA Docket No. SN-03**

2002 Wholesale Power Rates )

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**INITIAL BRIEF OF GOLDEN NORTHWEST ALUMINUM, INC.**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> Paul M. Murphy
>
> Murphy & Buchal LLP
>
> 1500 SW First Avenue, Suite 1135
>
> Portland, OR 97201
>
> Phone: 503-227-1011
>
> Fax: 503-227-1034
>
> <pmurphy@mbllp.com>
>
> Attorney for Golden Northwest
>
> Aluminum Inc.

May 23, 2003

**Table of Contents**

**Table of Authorities** ii

# I. STATEMENT OF THE CASE 1

# II. ISSUES AND ARGUMENT 2

## A. Did BPA Trigger The SN CRAC Consistently 

##  With The GRSPs? 2

> **1. The legal and rate schedule background** 2
>
> **2. The lack of record support for an SN CRAC trigger** 3

**B. Does The Record Support BPA's Claimed**

> **Need For An SN CRAC?** 6
>
> **C. Did BPA Inappropriately Seek To Forbid, And**
>
> **The Hearing Officer Erroneously Foreclose,**
>
> **Cross-Examination To Identify The Net Improvement**
>
> **In BPA's Financial Position?** 9
>
> **D. Did BPA Adhere To The Procedural Requirements**
>
> **Of § 7(i) Of The Northwest Power Act?** 10
>
> **E. Should BPA Impose An SN CRAC Increase**
>
> **Based Upon Forecasted Potential Problems In**
>
> **FY 2005 And 2006?** 13
>
> **F. Did BPA Fail To Comply With The Rate**
>
> **Directives Of The Northwest Power Act?** 14

**III. SUMMARY OF CONCLUSIONS ON EACH ISSUE** 16

**Attachment A: List of Exhibits Sponsored by GNA** 18

**Table of Authorities**

**Cases:**

*Central Lincoln People's Utility District v. Johnson*,

735 F.2d 1101 (9^th^ Cir. 1984) 12

**Statutes:**

§ 7(a)(1) of the Northwest Power Act, 16 U.S.C. § 839e(a)(1) 14

§ 7(b)(2) of the Northwest Power Act, 16 U.S.C. § 839e(b)(2) 14, 15

§ 7(i) of the Northwest Power Act, 16 U.S.C. § 839e(i) 10, 16

§ 13(a) of the Federal Columbia River Transmission Act, 16 U.S.C.
§ 838k(a) 3

**Other Authority:**

Federal Rule of Evidence 408 10

Federal Rule of Evidence 612 8

Section 1010.2(j), Definitions. "Rules of Procedure Governing

Rate Hearings," 51 Fed. Reg. 7611 (1986) 14

McCormick on Evidence § 9 (3d ed. 1984) 8

**INITIAL BRIEF OF GOLDEN NORTHWEST ALUMINUM, INC.**

This initial brief is submitted on behalf of Golden Northwest Aluminum,
Inc. ("GNA"). GNA joined with the Coalition Customers and the Joint
Customers in sponsoring testimony and exhibits as listed in Attachment A
hereto. Consistent with the Hearing Officer's order to parties to be
succinct and avoid redundancy, GNA adopts the issues and argument in the
"Initial Brief of the Industrial Customers of Northwest Utilities and
Alcoa, Inc." (B-IN/AL-01),[^11] without repeating their arguments here.

**I. STATEMENT OF THE CASE**

The primary objective of GNA is to pay reasonable rates developed by the
Bonneville Power Administration ("BPA") in conformance with the
now-existing General Rate Schedule Provisions ("GRSPs") and the rate
directives contained in the Pacific Northwest Electric Power Planning
and Conservation Act ("Northwest Power Act"). In this regard, GNA
contends that: (1) BPA violated the existing GRSPs when it purported to
trigger the Safety-Net Cost Recovery Adjustment Clause ("SN CRAC"); (2)
the record does not support BPA's claimed need for a three-year SN CRAC
and certainly does not support the need for an SN CRAC of any size
applicable to FY 2004; (3) BPA's forecast of its financial condition has
changed markedly since the beginning of this process, underscoring the
unreasonableness of BPA's proposal to implement a three-year SN CRAC
driven primarily by forecasts, some of which are now obsolete and the
remainder of which have never been placed in the record; and (4) BPA has
not adhered to the substance of or the procedures required by § 7 of the
Northwest Power Act, and the Hearing Officer inappropriately prevented
parties from attempting to develop relevant and material factual issues
on the record.

The record demonstrates that the economy in the Pacific Northwest is
extremely weak and will be adversely affected by any rate increase, much
less an unnecessary rate increase, at this time. Under these
circumstances, it is wholly inappropriate for BPA to impose an SN CRAC
surcharge in FY 2004-2006 for the primary purpose of restoring losses
incurred in FY 2002 and, to a much lesser extent, in FY 2003. Thus BPA
should issue a record of decision acknowledging that no SN CRAC is
warranted at this time, and, consistent with the GRSPs, evaluate the
need for an SN CRAC when and if it faces a 50% or higher probability of
missing its next Treasury payment.

**II. ISSUES AND ARGUMENT**

**A. Did BPA Trigger The SN CRAC Consistently With The GRSPs?**

No. BPA's forecasts used to trigger the SN CRAC failed to take account
of its prepayment of Treasury obligations, and ignored funds available
to make payments arising from the refinancing of ENW bonds.

**1. The legal and rate schedule background**

BPA's 2002 Wholesale Power Rate Schedules, General Rate Schedule
Provisions, provide (at p. 115) that the SN CRAC:

will be available if the Administrator determines that, after the
implementation of the FB \[Financial Based\] CRAC and any Augmentation
True-Ups, either of the following conditions exist:

-   BPA forecasts a 50 percent or greater probability that it will
    nonetheless miss its next payment to Treasury or other creditor, or

-   BPA has missed a payment to Treasury or has satisfied its obligation
    to Treasury but has missed a payment to any other creditor

Insofar as BPA has not missed any Treasury payments or payments to other
creditors so far during the rate period, the Administrator could only
impose the SN CRAC to the extent he can reasonably determine that BPA
has a 50% or greater probability of missing BPA's next Treasury payment,
which is due September 30, 2003.

In making that determination, BPA must assess the level of its
obligations to the Treasury taking account of any prepayments, for BPA's
governing statutes confirm that payments BPA has previously made with
the funds made available by refinancing ENW bonds constitute advance
payments of Treasury obligations. By law, BPA must attempt to pay its
expenses, including reimbursement to the U.S. Army Corps of Engineers
and the U.S. Bureau of Reclamation for operation and maintenance costs
at the dams, reimbursement of certain fish and wildlife expenses,
interest on Treasury obligations, and then *principal payments to the
Treasury as established pursuant to a schedule established in connection
with the rate case.*

Specifically, § 13(a) of the Federal Columbia River Transmission System
Act, 16 U.S.C. § 838k(a), requires that principal payments be made *at
any time before the end of the fiscal year for which they are scheduled
in the rate case repayment studies*, or BPA may be penalized with higher
interest rates. (BPA is not liable for any interest penalty if the late
payment has been the result of low water conditions or other factors
outside of its control.) BPA may also pay amounts in excess of the
principal obligations, just as a private individual can prepay a
mortgage; § 13(a) expressly declares that "the Secretary of the Treasury
shall take into account amounts that the Administrator has repaid in
advance of any repayment criteria in determining whether to increase
\[the interest\] rate \[on BPA obligations\]."

**2. The lack of record support for an SN CRAC trigger**

BPA cannot nowand could not when it announced the "trigger"demonstrate
that BPA had a 50% probability of missing the next Treasury payment. At
the time it performed its trigger test, BPA expected to have \$315
million available for its next scheduled payment from reduced ENW debt
service made available from a refinancing of bonds. (E-CC-01A.) BPA
expects further reduced ENW expenditures of \$55 million in Fiscal Year
("FY") 2004, \$45 million in FY 2005, and \$60 million in FY 2006 to
become available from past refinancings. *Id.* BPA can (and, if
necessary, intends to) use these funds to make up any expected shortfall
in its September 30, 2003 Treasury payment and subsequent Treasury
payments.[^12] As stated in the Administrator's March 26, 2003 letter to
his customers:

> Extraordinary cash tools, such as use of ENW refinancing proceeds or
> the Treasury note, are BPA's last line of financial defense. Even
> *with* an SN CRAC in FY04, there is high probability that BPA will
> need these last-defense tools to meet obligations both in the fall of
> 2003 and the fall of 2004. Using \$100 million of ENW refinancing
> proceeds to avoid an SN CRAC means that the last line of defense is
> that much smaller. The SN CRAC is important to replenishing this tool.
> Without it, BPA's risk of illiquidity and failure to pay Treasury or
> other creditors could be substantially increased.

(E-CC-01B, at 6.) The use of these funds for BPA financial emergencies
is recognized in the Official Statements of the bond issues. (*E.g.*,
E-CC-01D.)

Simply recognizing the \$315 million in reduced ENW costs produces a
100% Treasury Payment Possibility for the FY 2003 payment, as confirmed
by a run of BPA's Toolkit model, as modified to make a single change
from BPA's trigger case: reflection of the \$315 million in reduced ENW
expenses. (E-CC-01E.) Indeed, not a single "game" in the model run of
3000 games showed an inability to make this payment. (E-CC-01 at 6)
Furthermore, BPA has already prepaid the Treasury and is currently at
least \$262 million ahead of scheduled payments in the rate period (not
including the \$315 million available in FY 2003). (E-CC-01A, 2.)

For purposes of forecasting its probability of missing its Treasury
payment in FY 2003, BPA included among the amounts that *must* be paid
the full Treasury payment (without regard to the \$262 million in
advance payments), and included among the costs it expected to incur
(thus reducing amounts available to pay the Treasury) \$315 million of
principal payments on ENW debt that, due to refinancing, it did not
actually expect to incur in FY 2003. This was inconsistent with the
plain language of the General Rate Schedule Provisions, as can be seen
through contrast with the FB CRAC language. The General Rate Schedule
Provisions provide (at p. 111) that, "for purposes of determining if the
FB CRAC threshold has been reached, actual and forecasted expenses will
include BPA expenses associated with Energy Northwest debt service *as
forecasted in the WP-02 Final Studies"* (emphasis added). In other
words, improvements in actual net revenues from expense reductions due
to the ENW refinancing do not affect the FB CRAC. The FB CRAC can be
imposed notwithstanding BPA's plan to prepay Treasury debt with ENW
refinancing proceeds. In contrast, the SN CRAC language contains no
similar qualification for ENW refinancing because it is triggered by
actual expectations, not hypothetical calculations.

The difference between the SN and FB CRACs was intentional. The FB CRAC
contains express rate limits because customers were willing to bear
*limited* rate increases to permit BPA to meet its financial goals (as
opposed to obligations). On the other hand, the SN CRAC is a potentially
*unlimited* rate increase that was designed as a tool of last resort to
ensure that BPA did not fall behind in the pace of its *required*
Treasury payments or default on other debts. BPA's inability to *prepay*
Treasury obligations, however, is not an event that was designed to
trigger the SN CRAC, and none of BPA's customers so understood it.

Moreover, as demonstrated in the testimony of the Joint Customers'
Technical Panel (E-JC-01), when BPA's 2003 costs and revenues are
updated to reflect committed cost reductions, currently anticipated
water conditions and market prices, and other factors, the Treasury
Payment Probability for FY 2003 ranges from 97% to 100% in the four
cases analyzed.

In rebuttal testimony, BPA seems to take the position that the GRSPs
describe a purely mechanistic requirement such that the lack of any
basis for BPA's forecasts is wholly irrelevant to whether the SN CRAC
has properly triggered:

> BPA met the requirements of the GRSPs to start the SN CRAC process:
> BPA forecasted as 50 percent or greater probability that it would miss
> its next payment to Treasury; and it sent written notification of the
> determination to customers with the documentation used by BPA to
> determine that the SN CRAC process had triggered . . .

(E-BPA-11, at 42.) This position is untenable. If BPA could trigger the
SN CRAC by simply announcing that it meets the 50 percent test
regardless of the merits of the "forecast", then the requirement that
there be a forecast would be rendered meaningless. A forecast based upon
assumptions known to be false (*e.g.*, that the ENW funds are not
available to make scheduled payments to Treasury) is no forecast at all.

**B. Does The Record Support BPA's Claimed Need For An SN CRAC?**

No. BPA witnesses testified that they designed BPA's proposed SN CRAC to
achieve three criteria: (1) 50 percent or higher probability of making
all three Treasury payments for FY 2004-2006 (the Treasury Payment
Probability or "TPP" test); (2) an 80 percent probability of paying the
full amount of scheduled Treasury payments by the end of the rate period
(the Treasury Recovery Probability or "TRP" test); and (3) total net
revenues for the FY 2002-2006 rate period of at least \$0 (the "net
revenue" test). (E-BPA-04, at 13-14; E-BPA-10, at 2-3.) In BPA's initial
proposal, developed in March 2003, BPA was forecasting a "net revenue
gap\" of \$920 million for the five year rate period. (E-BPA-04, at 13;
E-BPA-06, at 11.) Recovery of this \$920 million gap was the key element
in determining the level of the SN CRAC. (E-BPA-10, at 7; Tr. 38.)

In rebuttal testimony, dated May 2003, BPA still claimed to have a net
revenue gap of \$920 million, including a net revenue loss of \$191
million in FY 2003. (E-BPA-11F.) Yet BPA's FY 2003 Second Quarter
Review, also dated May 2003, shows an equivalent revenue loss of only
\$87.8 million for FY 2003, a \$104 million improvement. (E-IN-06; Tr.
101.) BPA tried mightily to keep the simple fact of this huge
discrepancy out of the record, based on the phony argument that the BPA
panel was not prepared to be cross-examined on a particular document
that was referred to in passing to assist the panel in refreshing
recollectionif necessary. (Tr. 93-94, 97.) Specifically, Ms. Leathley
was asked:

> "Q: And what is Bonneville's current view of what the equivalent
> number is going to be for FY-2003 \[for the negative \$191 million in
> FY 2003 Net revenues shown on E-BPA-11F and sponsored by the
> witness\]? And if it helps refresh your recollection, I would point to
> the second quarter review that was introduced this morning by ICNU as
> E-IN-06, page 3?" (Tr. 93.)

This question provoked a blizzard of objections and false accusations of
collusion and sandbagging from BPA counsel, who argued that the witness
was being cross-examined about a document not previously disclosed as a
cross-examination exhibit, in violation of the procedural rules and an
agreement among the parties.

At the outset, this objection was irrational insofar as the witness was
merely asked to disclose BPA's present forecast of its financial
performancea fact highly material to the SN CRAC rate. As a courtesy to
the witness, counsel simply identified for the witness a possible source
for the number, if she needed to refresh her recollection. It is
hornbook law that any sort of document may be used to refresh
recollection. Fed. R. Evid. 612; McCormick on Evidence § 9 (3d ed.
1984). Nevertheless, the Hearing Officer at first insisted that the
examining counsel was party to an agreement made by another party (Tr.
95), then declared that that parties must submit copies of exhibits in
advance of their cross-examination even if the exhibits had already been
admitted into evidence (an innovation previously unknown to BPA
practice) (*id.*), and ultimately allowed questioning to go forward "on
a very short string" (Tr. 101.) Finally, Ms. Leathley confirmed an
improvement of \$104 million in BPA's forecast of FY 2003 net revenues,
over 57% of the shortfall in FY 2003, in less than two weeks from when
her testimony had been filed. (*Id.*)

The record shows that BPA's expected results in many other areas have
improved dramatically from what BPA described in its prefiled testimony.
(Tr. 39-40, 104.) However, BPA's witnesses did not provide for the
record the actual dollar amount of improvements from filed testimony in
the areas where BPA acknowledged that changes would be required. (Tr.
104.) Instead, BPA stated that the dollar amounts of these admittedly
critical changes were to be revealed to the parties in final studies to
be submitted after the hearings had been completed. (Tr. 39.) In sum,
BPA's witnesses acknowledged that the cost and revenue information that
they have put in the record did not, at the time such information was
admitted into evidence, accurately reflect BPA's actual expectations at
that time, and they failed and refused to correct those deficiencies
prior to the close of the evidentiary hearing.

In spite of these huge gaps in the record, the fact that BPA now expects
to increase its cash reserves in FY 2003 to \$260 million (E-IN-06), and
that this amount substantially exceeds the \$121 million of cash needs
BPA projected for FY 2004 even before the substantial improvements
hinted at in the record (E-JC-01K), demonstrates that no SN CRAC can
possibly be warranted based on FY 2003 results or FY 2004 needs. There
is no basis in the record or otherwise for BPA to inflict an SN CRAC on
the region.

**C. Did BPA Inappropriately Seek To Forbid, And The Hearing Officer
Erroneously Foreclose, Cross-Examination To Identify The Current State
Of BPA's Financial Position?**

Yes. Remarkably, even though BPA's outlook concerning its financial
position is essential to resolving both the need for and the form of any
SN CRAC, the *Hearing Officer* invited BPA to object to placing its
current forecast of its financial position in the record at all, as
demonstrated in the following exchange:

> "Q: What is the total expected improvements as Bonneville sees it now
> compared to the time at which Table 11-F was prepared?
>
> "HEARING OFFICER ARLOW: Mr. Murphy, were these questions raised during
> the course of settlement discussions?
>
> "MR. MURPHY: Many factual issues were raised, your Honor. The mere
> fact
>
> ". . . .
>
> "HEARING OFFICER ARLOW: Are you going to object Mr. Burger?
>
> "MR. BURGER: Yes, I am.
>
> "HEARING OFFICER ARLOW: I'm going to disallow the question, Mr.
> Murphy." (Tr. 106-07.)

This ruling was incomprehensible and erroneous. The only way in which
settlement discussions could govern whether a question might be asked at
the hearing is under Rule 408 of the Federal Rules of Evidence, which
provides that

> "Evidence of conduct or statements made in settlement negotiations is
> . . . not admissible. *This rule does not require the exclusion of any
> evidence otherwise discoverable merely because it is presented in
> settlement negotiations."* Fed. R. Evid. 408 (emphasis added).

But the question did not request any description of conduct or
statements made during settlement discussions; it requested factual
information regarding BPA\'s current view of its financial condition. It
was apparent from the prior testimony that there had been numerous
changes in BPA's forecasts of its net revenues and cash position, and it
was entirely appropriate to ask BPA to disclose for the record its
present forecast of the net improvement. The question was highly
relevant, the data requested was plainly \"discoverable\" and therefore
not privileged, and it was not merely error to forbid the witness to
respond, but unseemly for staff to seek to exclude such information from
the record. The record now reflects only that the critical cost and
revenue data offered in evidence by BPA was known by BPA to be stale and
obsolete when offered (*e.g.* Tr. 40-41, 104) and that BPA does not, in
any event, intend to rely on it in crafting the SN CRAC.

**D. Did BPA Adhere To The Procedural Requirements Of §7(I) Of The
Northwest Power Act?**

No. Under cross-examination, Mr. Lovell acknowledged that in order to
prepare the SN CRAC design, he would at some future date "get inputs
from other panels about changes in costs and revenues". (Tr. 140) In
short, BPA proposes to set the SN CRAC based upon data about which its
witnesses could only testifyif at all in the most vague and general
terms during the hearing

And even if the updated revenue and expense data were in the evidentiary
record, the precise nature of any SN CRAC to be adopted will not be
uniquely determined merely by such data. Specifically, Mr. Lovell
testified upon cross-examination that "there's more than one set of \[SN
CRAC\] parameters possible, given the inputs" to be developed by staff.
(Tr. 140). Mr. Lovell also confirmed that the "three standards" for SN
CRAC design (E-BPA-04, at 13-14), coupled with BPA's preference for
level rates, coupled with the new data, would not permit rate case
participants to discern the nature of expected rates:

> "Q: . . . is there anything in the testimony that I could look to to
> indicate how you would choose from amongst those alternatives"

"A: Not really." (Tr. 141)

In sum, both the data and methodology material to the ultimate
determination of the SN CRAC parameters are to be created subsequent to
the hearings, briefs and, potentially, even oral argument in these
proceedings.[^13]

Pursuant to § 7(i)(2)(A) of the Pacific Northwest Electric Power
Planning and Conservation Act ("Northwest Power Act"), 16 U.S.C.
§839e(i)(2)(A), "any person shall be provided an adequate opportunity by
the hearing officer to offer refutation or rebuttal of any material
submitted by another other person or the Administrator". Under the
Northwest Power Act, all materials that will constitute part of the rate
case administrative record shall be submitted "prior to, or before the
close of, hearings . . .". *See* 16 U.S.C. § 839e(i)(4).

Once the record is established, "\[t\]he Administrator shall make a
final decision establishing a rate or rates based on the record . . .".
16 U.S.C. § 839e(i)(5). It is clear beyond doubt that the Administrator
cannot rely upon factual material not admitted into evidence in setting
rates, for upon judicial review, "final determinations regarding rates
under section 839e of this title shall be supported by substantial
*evidence* in the rulemaking record required by section 839e(i) of this
title . . .". 16 U.S.C. § 839f(e)(2) (emphasis supplied). The \"Final
Studies\" should be based on evidence, as they themselves will only be
generated after the close of the opportunity to submit evidence for the
record.

Insofar as the administrative record contains neither the data BPA has
already stated that it will use to set the SN CRAC parameters, nor the
methodology to be used in that process, BPA has failed to provide a
record to support any SN CRAC. The notion that BPA can base its rates on
material developed outside the evidentiary record, and shielded from
cross-examination by the parties, is not only contrary to the
requirements of the Northwest Power Act, but also violates fundamental
Constitutional guarantees of due process of law.

Certainly the Administrator is not prohibited from "making use of the
information *gathered during the hearing* to improve the final rate
structure". *Central Lincoln People's Utility District v. Johnson*, 735
F.2d 1101, 1118 (9^th^ Cir. 1984) (emphasis added). In that case, the
Ninth Circuit rejected procedural challenges to the ratemaking process
because there was no suggestion that "the revisions \[to the rates\]
were in fact based upon any material that was not already contained in
the record". *Id.* Here BPA's witnesses have admitted that that is
precisely what they intend to do: base the rates on factual materials
never admitted into the evidentiary record.

**E. Should BPA Impose An SN CRAC Increase Based Upon Forecasted
Potential Problems In FY 2005 And 2006?**

No. The SN CRAC trigger under the General Rate Schedule Provisions is
limited to looking forward only through the current fiscal year. There
is some risk to BPA's ability to make currently planned Treasury
payments in future years of the rate period (FY 2004-06) due to possible
further adverse water conditions or deterioration in the market price of
electric energy. The SN CRAC is to repair problems associated with
missing Treasury payment or to avoid the very next Treasury payment. It
is not structured to permit BPA to start now to amass reserves for
potential problems in later years. The millions of dollars in
prepayments BPA has already made since FY 2000 and the
as-yet-undisclosed improvements to BPA\'s expected financial condition
provide a significant cushion against BPA actually getting behind the
payment schedule to which it committed in the last rate case.

Moreover, testimony from numerous parties confirms that the economy in
the Pacific Northwest is mired in the worst recession in the Nation.
(*E.g.*, E-CC-01, at 12; *see also* E‑CC‑01I, J, K, L.) The SN CRAC
promises further to destroy the natural advantage of the Pacific
Northwest, where rates are already uncompetitive for many manufacturing
plants. (*Id.* at 15-16.) Indeed, Washington has lost one in six
manufacturing jobs since July 2000. *Id.* Yet BPA acknowledges that it
has not performed any analysis of "regarding the effects of a BPA rate
increase on the Northwest economy". (E-CC-01R.)

In the aftermath of 2001 power crisis, rates were already excessive, and
the Administrator has acknowledged in a letter to customers their
feedback that "ratepayers are reeling from rate increases and can't
handle more", such that further rate increase may even decrease BPA
revenues by decreasing loads. (E-CC-01B) Yet BPA refuses even to examine
the question of load loss from rate increases. (See E-CC-01, at 14-15.)
Imposing further burdens upon an already suffering region, without even
bothering to estimate the resulting impacts, would constitute
extraordinarily poor public policy.

**F. Did BPA Fail To Comply With The Rate Directives of the Northwest
Power Act?**

Yes. Section 7(a)(1) of the Northwest Power Act requires the
Administrator to "establish, and periodically review and revise, rates
for the sale and disposition of electric energy and capacity", which
"shall be established in accordance with . . . the provisions of this
chapter". 16 U.S.C. § 839e(a)(1). The "provisions of this chapter"
include, among other things, the § 7(b)(2) rate test.[^14]
Significantly, § 7(a)(1) expressly requires full compliance with the
rate directives for both initial rates and any revisions thereto. And
BPA's own rules define "rates" to include any "surcharge". Section
1010.2(j), Definitions. "Rules of Procedure Governing Rate Hearings," 51
Fed. Reg. 7611 (1986). BPA's attempt to interpret the statute not to
apply to these proceedingsrevisions to the 2002 Wholesale Power
Ratesmust be rejected as flatly inconsistent with the statutory
language.

BPA has argued that the § 7(i) procedures do not themselves make
reference to compliance with the rate directives (M-22, at 20), but
§ 7(i) addresses the *procedure* through which the *substantive*
requirements of the rate directives are to be given effect. The
§ 7(b)(2) rate test is a substantive obligations imposed on BPA by
statute whenever it establishes, reviews or revises rates, and it is
BPA's burdennot the burden of its customersto propose and adopt rates
in compliance with § 7(b)(2). Thus the Hearing Officer's ruling (O-15),
in denying the motion to compel BPA to conduct the § 7(b)(2) rate test,
has no bearing on the substantive lawfulness of resulting rates.

BPA took the position that it would be impossible to complete the
§ 7(b)(2) rate test within the forty-day period provided for the SN CRAC
hearing in the GRSPs. (M‑22, at 4) This assertion, if true, is
irrelevant. BPA had total control over when it initiated the SN CRAC
hearing process. BPA should have conducted the requisite 7(b)(2) studies
prior to commencement of the forty-day period inasmuch as such studies
are properly part of BPA's initial case which was distributed to parties
on the first day of the forty-day period. And BPA's blatant failure to
make any effort to comply with the substantive requirement of the
Northwest Power Act's mandatory rate directives cannot retroactively be
made lawful due to the fact that the Public Agencies filed a motion to
compel rather late in this process.

Finally, BPA notes that on prior occasions BPA has adopted or revised
rates in a § 7(i) process without attempts to comply with the § 7(b)(2)
rate test. (M-22, at 9-10.) This argument, while accurate, is
disingenuous and irrelevant. None of the cited cases involved a revision
to the Priority Firm Rate, the only rate protected by the § 7(b)(2) rate
directive. BPA cannot promulgate any SN CRAC unless and until it
demonstrates compliance with the rate directives applicable to any
affected rate, including the §7(b)(2) rate test.

**IV. SUMMARY OF CONCLUSIONS ON EACH ISSUE.**

**A. Did BPA Trigger The SN CRAC Consistently With The GRSPs?**

*Summary of Conclusions:* BPA's purported trigger of the SN CRAC process
does not comport with the GRSPs and is wholly unnecessary to assure
BPA's ability to make all regional and scheduled payments to all
creditors, including the Treasury, in FY 2003.

**B. Does The Record Support BPA's Claimed Need For An SN CRAC?**

*Summary of Conclusions:* BPA's own outlook on its financial position,
to the limited extent it is reflected in the evidentiary record,
demonstrates that no SN CRAC surcharge is warranted.

> **C. Did BPA Inappropriately Seek To Forbid, And The Hearing Officer
> Erroneously Foreclose, Cross-Examination To Identify The Net
> Improvement In BPA's Financial Position?**

*Summary of Conclusions:* Yes. The fact that BPA may have discussed its
current view of its financial position in settlement discussions does
not thereby make such underlying facts privileged.

> **D. Did BPA Adhere To The Procedural Requirements Of §7(I) Of The
> Northwest Power Act?**

*Summary of Conclusions*: No. BPA failed to establish on the record the
factual materials regarding its currently forecasted financial condition
upon which it intends to base the SN CRAC.

> **E. Should BPA Impose An SN CRAC Increase Based Upon Forecasted
> Potential Problems In FY 2005 And 2006?**

*Summary of Conclusions*: No. The SN CRAC was never designed to address
anticipated problems in future years, and, in any event, BPA did not
introduce any credible forecast of future years\' results into the
record. Moreover, the state of the Region\'s economy makes any
prophylactic rate increase extremely poor public policy.

> **F. Did BPA Fail To Comply With The Rate Directives Of The Northwest
> Power Act?**

*Summary of Conclusions*: Yes. BPA made no effort whatsoever to
demonstrate its compliance with the rate-specific rate directives in the
Act.

Dated May 23, 2003

> Respectfully submitted,
>
> /s/ Paul M. Murphy

Paul M. Murphy

**Murphy & Buchal, LLP**

1500 S.W. First Avenue, Suite 1135

> Portland, Oregon 97201
>
> Telephone: (503) 227-1011
>
> Facsimile: (503) 227-1034
>
> E-mail: pmurphy@mbllp.com
>
> Attorney for Golden Northwest Aluminum, Inc.

+---------------+---+---------------------------------------------+-------+
| ###           |   |                                             |       |
|  ATTACHMENT A |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
| ### List of   |   |                                             |       |
|  Exhibits Spo |   |                                             |       |
| nsored by GNA |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
|               |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
| ### COAL      |   |                                             |       |
| ITION CUSTOME |   |                                             |       |
| RS' TESTIMONY |   |                                             |       |
|  AND EXHIBITS |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
|               |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
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|               | u |                                             | itted |
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|               | n |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | J |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | k |                                             |       |
|               | S |                                             |       |
|               | p |                                             |       |
|               | e |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-Q-IN-01 | Q |                                             | Adm   |
|               | u |                                             | itted |
|               | a |                                             |       |
|               | l |                                             |       |
|               | i |                                             |       |
|               | f |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | v |                                             |       |
|               | i |                                             |       |
|               | d |                                             |       |
|               | J |                                             |       |
|               | . |                                             |       |
|               | F |                                             |       |
|               | a |                                             |       |
|               | d |                                             |       |
|               | d |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-Q-IN-02 | Q |                                             | Adm   |
|               | u |                                             | itted |
|               | a |                                             |       |
|               | l |                                             |       |
|               | i |                                             |       |
|               | f |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | L |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | c |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | n |                                             |       |
|               | W |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | v |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-Q-PN-01 | Q |                                             | Adm   |
|               | u |                                             | itted |
|               | a |                                             |       |
|               | l |                                             |       |
|               | i |                                             |       |
|               | f |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | v |                                             |       |
|               | e |                                             |       |
|               | E |                                             |       |
|               | l |                                             |       |
|               | d |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | g |                                             |       |
|               | e |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-E-CC-01 | D |                                             | Adm   |
|               | i |                                             | itted |
|               | r |                                             |       |
|               | e |                                             |       |
|               | c |                                             |       |
|               | t |                                             |       |
|               | T |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | m |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | y |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | v |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | F |                                             |       |
|               | a |                                             |       |
|               | d |                                             |       |
|               | d |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | , |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | v |                                             |       |
|               | e |                                             |       |
|               | E |                                             |       |
|               | l |                                             |       |
|               | d |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | g |                                             |       |
|               | e |                                             |       |
|               | , |                                             |       |
|               | J |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | k |                                             |       |
|               | S |                                             |       |
|               | p |                                             |       |
|               | e |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | , |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | d |                                             |       |
|               | L |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | c |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | n |                                             |       |
|               | W |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | v |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | E |                                             | Adm   |
| N-03-E-CC-01A | N |                                             | itted |
|               | W |                                             |       |
|               | D |                                             |       |
|               | e |                                             |       |
|               | b |                                             |       |
|               | t |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | r |                                             |       |
|               | u |                                             |       |
|               | c |                                             |       |
|               | t |                                             |       |
|               | u |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | g |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | u |                                             |       |
|               | l |                                             |       |
|               | t |                                             |       |
|               | s |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | F |                                             |       |
|               | e |                                             |       |
|               | b |                                             |       |
|               | r |                                             |       |
|               | u |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | y |                                             |       |
|               | 1 |                                             |       |
|               | 3 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | L |                                             | Adm   |
| N-03-E-CC-01B | e |                                             | itted |
|               | t |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | F |                                             |       |
|               | r |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | t |                                             |       |
|               | h |                                             |       |
|               | e |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | A |                                             |       |
|               | d |                                             |       |
|               | m |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | r |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | C |                                             |       |
|               | u |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | s |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | M |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | c |                                             |       |
|               | h |                                             |       |
|               | 2 |                                             |       |
|               | 6 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01C | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | G |                                             |       |
|               | E |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 5 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01D | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | G |                                             |       |
|               | E |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 5 |                                             |       |
|               | C |                                             |       |
|               | , |                                             |       |
|               | e |                                             |       |
|               | x |                                             |       |
|               | c |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | p |                                             |       |
|               | t |                                             |       |
|               | s |                                             |       |
|               | f |                                             |       |
|               | r |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | E |                                             |       |
|               | n |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | g |                                             |       |
|               | y |                                             |       |
|               | N |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | h |                                             |       |
|               | w |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | O |                                             |       |
|               | f |                                             |       |
|               | f |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | T |                                             | Adm   |
| N-03-E-CC-01E | r |                                             | itted |
|               | i |                                             |       |
|               | g |                                             |       |
|               | g |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | C |                                             |       |
|               | a |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | W |                                             |       |
|               | i |                                             |       |
|               | t |                                             |       |
|               | h |                                             |       |
|               | \ |                                             |       |
|               | $ |                                             |       |
|               | 3 |                                             |       |
|               | 1 |                                             |       |
|               | 5 |                                             |       |
|               | M |                                             |       |
|               | i |                                             |       |
|               | l |                                             |       |
|               | l |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | M |                                             | Adm   |
| N-03-E-CC-01F | a |                                             | itted |
|               | y |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | R |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | D |                                             |       |
|               | o |                                             |       |
|               | c |                                             |       |
|               | u |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | , |                                             |       |
|               | W |                                             |       |
|               | P |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 2 |                                             |       |
|               | - |                                             |       |
|               | F |                                             |       |
|               | S |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 5 |                                             |       |
|               | A |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | 3 |                                             |       |
|               | 6 |                                             |       |
|               | 6 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01G | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | A |                                             |       |
|               | L |                                             |       |
|               | - |                                             |       |
|               | G |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 5 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01H | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | A |                                             |       |
|               | L |                                             |       |
|               | - |                                             |       |
|               | G |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 6 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | O |                                             | Adm   |
| N-03-E-CC-01I | r |                                             | itted |
|               | e |                                             |       |
|               | g |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | A |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | l |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | A |                                             |       |
|               | p |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | l |                                             |       |
|               | 4 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | O |                                             | Adm   |
| N-03-E-CC-01J | r |                                             | itted |
|               | e |                                             |       |
|               | g |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | A |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | l |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | A |                                             |       |
|               | p |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | l |                                             |       |
|               | 1 |                                             |       |
|               | 7 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | P |                                             | Adm   |
| N-03-E-CC-01K | r |                                             | itted |
|               | e |                                             |       |
|               | s |                                             |       |
|               | s |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | l |                                             |       |
|               | e |                                             |       |
|               | a |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | f |                                             |       |
|               | r |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | t |                                             |       |
|               | h |                                             |       |
|               | e |                                             |       |
|               | O |                                             |       |
|               | r |                                             |       |
|               | e |                                             |       |
|               | g |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | E |                                             |       |
|               | m |                                             |       |
|               | p |                                             |       |
|               | l |                                             |       |
|               | o |                                             |       |
|               | y |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | D |                                             |       |
|               | e |                                             |       |
|               | p |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | A |                                             |       |
|               | p |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | l |                                             |       |
|               | 1 |                                             |       |
|               | 1 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | C |                                             | Adm   |
| N-03-E-CC-01L | l |                                             | itted |
|               | e |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | g |                                             |       |
|               | U |                                             |       |
|               | p |                                             |       |
|               | A |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | l |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | A |                                             |       |
|               | p |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | l |                                             |       |
|               | 1 |                                             |       |
|               | 4 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | e |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | g |                                             |       |
|               | D |                                             |       |
|               | o |                                             |       |
|               | w |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | N |                                             | Adm   |
| N-03-E-CC-01M | a |                                             | itted |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | A |                                             |       |
|               | s |                                             |       |
|               | s |                                             |       |
|               | o |                                             |       |
|               | c |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | M |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | u |                                             |       |
|               | f |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | t |                                             |       |
|               | u |                                             |       |
|               | r |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | s |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | - |                                             |       |
|               | M |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | a |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | N |                                             | Adm   |
| N-03-E-CC-01N | a |                                             | itted |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | A |                                             |       |
|               | s |                                             |       |
|               | s |                                             |       |
|               | o |                                             |       |
|               | c |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | M |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | u |                                             |       |
|               | f |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | t |                                             |       |
|               | u |                                             |       |
|               | r |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | s |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | - |                                             |       |
|               | O |                                             |       |
|               | r |                                             |       |
|               | e |                                             |       |
|               | g |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | N |                                             | Adm   |
| N-03-E-CC-01O | a |                                             | itted |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | A |                                             |       |
|               | s |                                             |       |
|               | s |                                             |       |
|               | o |                                             |       |
|               | c |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | M |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | u |                                             |       |
|               | f |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | t |                                             |       |
|               | u |                                             |       |
|               | r |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | h |                                             |       |
|               | o |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | N |                                             | Adm   |
| N-03-E-CC-01P | a |                                             | itted |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | A |                                             |       |
|               | s |                                             |       |
|               | s |                                             |       |
|               | o |                                             |       |
|               | c |                                             |       |
|               | i |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | M |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | u |                                             |       |
|               | f |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | t |                                             |       |
|               | u |                                             |       |
|               | r |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | s |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | - |                                             |       |
|               | W |                                             |       |
|               | a |                                             |       |
|               | s |                                             |       |
|               | h |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | g |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01Q | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 1 |                                             |       |
|               | 5 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01R | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | C |                                             |       |
|               | R |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 9 |                                             |       |
|               | 5 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01S | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | C |                                             |       |
|               | R |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 1 |                                             |       |
|               | 1 |                                             |       |
|               | 5 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | K |                                             | Adm   |
| N-03-E-CC-01T | i |                                             | itted |
|               | m |                                             |       |
|               | b |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | l |                                             |       |
|               | y |                                             |       |
|               | C |                                             |       |
|               | l |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | k |                                             |       |
|               | C |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | p |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | P |                                             |       |
|               | o |                                             |       |
|               | w |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | C |                                             |       |
|               | o |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | s |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | W |                                             | Adm   |
| N-03-E-CC-01U | o |                                             | itted |
|               | r |                                             |       |
|               | l |                                             |       |
|               | d |                                             |       |
|               | w |                                             |       |
|               | i |                                             |       |
|               | d |                                             |       |
|               | e |                                             |       |
|               | C |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | p |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | P |                                             |       |
|               | o |                                             |       |
|               | w |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | C |                                             |       |
|               | o |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | A |                                             |       |
|               | l |                                             |       |
|               | u |                                             |       |
|               | m |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | u |                                             |       |
|               | m |                                             |       |
|               | S |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | l |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | s |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | C |                                             | Adm   |
| N-03-E-CC-01V | l |                                             | itted |
|               | e |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | g |                                             |       |
|               | U |                                             |       |
|               | p |                                             |       |
|               | A |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | l |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | M |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | c |                                             |       |
|               | h |                                             |       |
|               | 3 |                                             |       |
|               | 1 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01W | P |                                             | itted |
|               | A |                                             |       |
|               | J |                                             |       |
|               | o |                                             |       |
|               | u |                                             |       |
|               | r |                                             |       |
|               | n |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | d |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | d |                                             |       |
|               | A |                                             |       |
|               | p |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | l |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-E-CC-1X | S |                                             | Adm   |
|               | u |                                             | itted |
|               | m |                                             |       |
|               | m |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | y |                                             |       |
|               | A |                                             |       |
|               | u |                                             |       |
|               | g |                                             |       |
|               | m |                                             |       |
|               | e |                                             |       |
|               | n |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | f |                                             |       |
|               | r |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | F |                                             |       |
|               | e |                                             |       |
|               | b |                                             |       |
|               | r |                                             |       |
|               | u |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | y |                                             |       |
|               | 1 |                                             |       |
|               | 8 |                                             |       |
|               | , |                                             |       |
|               | 2 |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | W |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | k |                                             |       |
|               | s |                                             |       |
|               | h |                                             |       |
|               | o |                                             |       |
|               | p |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01Y | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | A |                                             |       |
|               | l |                                             |       |
|               | - |                                             |       |
|               | G |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 0 |                                             |       |
|               | 2 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | B |                                             | Adm   |
| N-03-E-CC-01Z | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 4 |                                             |       |
|               | 5 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN            | B |                                             | Adm   |
| -03-E-CC-01AA | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 4 |                                             |       |
|               | 5 |                                             |       |
|               | A |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN            | B |                                             | Adm   |
| -03-E-CC-01BB | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 4 |                                             |       |
|               | 5 |                                             |       |
|               | B |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN            | B |                                             | Adm   |
| -03-E-CC-01CC | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 2 |                                             |       |
|               | 1 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN            | B |                                             | Adm   |
| -03-E-CC-01DD | P |                                             | itted |
|               | A |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | s |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | R |                                             |       |
|               | e |                                             |       |
|               | q |                                             |       |
|               | u |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | I |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 2 |                                             |       |
|               | 1 |                                             |       |
|               | A |                                             |       |
|               | ( |                                             |       |
|               | E |                                             |       |
|               | x |                                             |       |
|               | c |                                             |       |
|               | e |                                             |       |
|               | l |                                             |       |
|               | ) |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN            | E |                                             | Adm   |
| -03-E-CC-01EE | x |                                             | itted |
|               | c |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | p |                                             |       |
|               | t |                                             |       |
|               | f |                                             |       |
|               | r |                                             |       |
|               | o |                                             |       |
|               | m |                                             |       |
|               | T |                                             |       |
|               | o |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | K |                                             |       |
|               | i |                                             |       |
|               | t |                                             |       |
|               | M |                                             |       |
|               | o |                                             |       |
|               | d |                                             |       |
|               | e |                                             |       |
|               | l |                                             |       |
|               | R |                                             |       |
|               | u |                                             |       |
|               | n |                                             |       |
|               | f |                                             |       |
|               | o |                                             |       |
|               | r |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | C |                                             |       |
|               | R |                                             |       |
|               | A |                                             |       |
|               | C |                                             |       |
|               | p |                                             |       |
|               | r |                                             |       |
|               | o |                                             |       |
|               | p |                                             |       |
|               | o |                                             |       |
|               | s |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | b |                                             |       |
|               | C |                                             |       |
|               | R |                                             |       |
|               | A |                                             |       |
|               | C |                                             |       |
|               | _ |                                             |       |
|               | D |                                             |       |
|               | A |                                             |       |
|               | T |                                             |       |
|               | A |                                             |       |
|               | , |                                             |       |
|               | s |                                             |       |
|               | u |                                             |       |
|               | m |                                             |       |
|               | m |                                             |       |
|               | a |                                             |       |
|               | r |                                             |       |
|               | y |                                             |       |
|               | s |                                             |       |
|               | h |                                             |       |
|               | e |                                             |       |
|               | e |                                             |       |
|               | t |                                             |       |
|               | w |                                             |       |
|               | h |                                             |       |
|               | i |                                             |       |
|               | c |                                             |       |
|               | h |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | S |                                             |       |
|               | N |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 3 |                                             |       |
|               | - |                                             |       |
|               | E |                                             |       |
|               | - |                                             |       |
|               | B |                                             |       |
|               | P |                                             |       |
|               | A |                                             |       |
|               | - |                                             |       |
|               | 0 |                                             |       |
|               | 2 |                                             |       |
|               | a |                                             |       |
|               | t |                                             |       |
|               | p |                                             |       |
|               | a |                                             |       |
|               | g |                                             |       |
|               | e |                                             |       |
|               | 7 |                                             |       |
|               | - |                                             |       |
|               | 1 |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-E-CC-02 | R |                                             | Adm   |
|               | e |                                             | itted |
|               | b |                                             |       |
|               | u |                                             |       |
|               | t |                                             |       |
|               | t |                                             |       |
|               | a |                                             |       |
|               | l |                                             |       |
|               | T |                                             |       |
|               | e |                                             |       |
|               | s |                                             |       |
|               | t |                                             |       |
|               | i |                                             |       |
|               | m |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
|               | y |                                             |       |
|               | o |                                             |       |
|               | f |                                             |       |
|               | D |                                             |       |
|               | a |                                             |       |
|               | v |                                             |       |
|               | i |                                             |       |
|               | d |                                             |       |
|               | F |                                             |       |
|               | a |                                             |       |
|               | d |                                             |       |
|               | d |                                             |       |
|               | i |                                             |       |
|               | s |                                             |       |
|               | , |                                             |       |
|               | S |                                             |       |
|               | t |                                             |       |
|               | e |                                             |       |
|               | v |                                             |       |
|               | e |                                             |       |
|               | E |                                             |       |
|               | l |                                             |       |
|               | d |                                             |       |
|               | r |                                             |       |
|               | i |                                             |       |
|               | g |                                             |       |
|               | e |                                             |       |
|               | , |                                             |       |
|               | J |                                             |       |
|               | a |                                             |       |
|               | c |                                             |       |
|               | k |                                             |       |
|               | S |                                             |       |
|               | p |                                             |       |
|               | e |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | , |                                             |       |
|               | a |                                             |       |
|               | n |                                             |       |
|               | d |                                             |       |
|               | L |                                             |       |
|               | i |                                             |       |
|               | n |                                             |       |
|               | c |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | n |                                             |       |
|               | W |                                             |       |
|               | o |                                             |       |
|               | l |                                             |       |
|               | v |                                             |       |
|               | e |                                             |       |
|               | r |                                             |       |
|               | t |                                             |       |
|               | o |                                             |       |
|               | n |                                             |       |
+---------------+---+---------------------------------------------+-------+
| S             | E |                                             | Adm   |
| N-03-E-CC-02A | x |                                             | itted |
|               | h |                                             |       |
|               | i |                                             |       |
|               | b |                                             |       |
|               | i |                                             |       |
|               | t |                                             |       |
|               | 1 |                                             |       |
+---------------+---+---------------------------------------------+-------+
|               |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
| **JOINT       |   |                                             |       |
| CUSTOMERS'    |   |                                             |       |
| TESTIMONY AND |   |                                             |       |
| EXHIBITS**    |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
|               |   |                                             |       |
+---------------+---+---------------------------------------------+-------+
| SN-03-Q-JC-01 |   | Witness Qualification Statement of Raymond  | Adm   |
|               |   | J. Bliven                                   | itted |
+---------------+---+---------------------------------------------+-------+
| SN-03-Q-JC-02 |   | Witness Qualification Statement of Geoffrey | Adm   |
|               |   | H. Carr                                     | itted |
+---------------+---+---------------------------------------------+-------+
| SN-03-Q-JC-03 |   | Witness Qualification Statement of Kevin P. | Adm   |
|               |   | O'Meara                                     | itted |
+---------------+---+---------------------------------------------+-------+
| SN-03-E-JC-01 |   | Direct Testimony of the Joint Customers     | Adm   |
|               |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| SN-           |   | BPA Response to Data Request SP-BPA-001A    | Adm   |
| 03-E-JC-01A-D |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | Nov. 22, 2002 Letter to BPA customers,      | Adm   |
| N-03-E-JC-01E |   | tribes, and interested parties              | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | March 7, 2003 Workshop Handout              | Adm   |
| N-03-E-JC-01F |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | Dec. 11, 2000 Letter to Energy NW           | Adm   |
| N-03-E-JC-01G |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | Debt Restructuring Results to Date          | Adm   |
| N-03-E-JC-01H |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | BPA Response to Data Request NR-BPA-001     | Adm   |
| N-03-E-JC-01I |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | Toolkit Results                             | Adm   |
| N-03-E-JC-01J |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | BPA Response to Data Request NR-BPA-002     | Adm   |
| N-03-E-JC-01K |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | BPA Response to Data Request PP-BPA-011     | Adm   |
| N-03-E-JC-01L |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| S             |   | SN CRAC ANR - Reserve Level Thresholds      | Adm   |
| N-03-E-JC-01M |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+
| SN-0          |   | Errata to the Direct Testimony of the Joint | Adm   |
| 3-E-JC-01(E1) |   | Customers                                   | itted |
+---------------+---+---------------------------------------------+-------+
| SN-03-E-JC-02 |   | Rebuttal Testimony of the Joint Customers   | Adm   |
|               |   |                                             | itted |
+---------------+---+---------------------------------------------+-------+

**Exhibit 2**

![](media/image1.jpeg){width="6.0in" height="4.5in"}

[^1]: As to financial prudence itself, Staff argues that using the funds
    freed up from a reduction in ENW costs \"means they are unavailable
    for other purposes.\" (*Id.* at 3-8.) That is true of any funds that
    BPA expends. It is again irrelevant. BPA cannot exclude certain
    revenues from its TPP forecast merely because it intends to make
    some use of the funds.

[^2]: Insofar as "BPA did not file the record for that separate
    \[trigger\] determination in the section 7(i) evidentiary hearing"
    (*Id.* at 3-6), it is unclear to which \"record\" Staff is
    referring.

[^3]: BPA certainly has the power to amend its rates in any fashion,
    notwithstanding the existing GRSPs, consistent with its statutory
    obligations under § 7. Section 7 does not require BPA to leave its
    rates in place for any particular time period. BPA has committed by
    contract, however, not to amend its present rates for a period of
    five years except in accord with the GRSPs. To the extent BPA
    actually had some unexpressed intent, contrary to the plain language
    of the GRSPs, to refuse to take account of the ENW cost savings in
    SN CRAC forecasting, BPA induced its customers to execute the
    contracts by fraud, and such contracts would be voidable at the
    option of the customersthough issues of contract enforcement are of
    course beyond the scope of this proceeding and not at issue here.

[^4]: The case is cited earlier at A-01, at 3-6 & 3-8, in other
    contexts, but Staff never acknowledges that in it, all assumptions
    other than the \$315 million were held constant.

[^5]: Specifically, the \"Draft Decision\" declares that \"BPA properly
    objected to cross-examination . . .\" (SN-03-A-01, at 3-22), though,
    in fact, the Hearing Officer ultimately allowed a response to the
    question.

[^6]: Golden Northwest agreed only that it would not require BPA to
    cause any witness panel to appear if GNA was the only party that
    might have questions of the witness, but it retained its right to
    pose questions to any panel that did appear to testify.

[^7]: Obviously no meaningful settlement discussions could proceed if
    any factual matters that might arise during such discussion were
    thereby barred from entry into the administrative record, for then
    BPA would be unable to discharge its statutory obligation to
    assemble an administrative record to support its rates.

[^8]: By permitting counsel for Alcoa to question on such changes at
    length (Tr. 38-41), Bonneville would have waived any \"settlement\"
    objection to such questioning, had there been a proper basis for one
    in the first place.

[^9]: *See also* A-01, at 2.1-2 (It is therefore reasonable, based on
    improvements in PBL's financial condition that are on the record,
    for the Administrator to bring the average expected value of FY
    2004-2006 rates down to about 5% above the total rate level for FY
    2003.") Again BPA provides no citation to the record, and we are
    confident that there is no evidence in the record from which the 5%
    can be calculated.

[^10]: Golden Northwest hereby moves that the Administrator take
    official notice of this Exhibit and that he direct that it be added
    to the administrative record herein.

[^11]: For brevity, GNA will cite record materials without the SN-03
    prefix.

[^12]: Of course, this will not be necessary. BPA currently expects to
    increase its cash reserves in FY 2003after making all required
    Treasury Payments as well as planned prepayments of well over \$300
    millionfrom \$188 million at EOY 2002 (E-BPA-04, at 4) to \$260
    million at EOY 2003 (E-IN-06, at 3).

[^13]: While parties may be able to review how BPA did structure SN CRAC
    by the time of oral argument, they have no opportunity, now that the
    hearing record is closed, to rebut or refute the new cost and
    revenue estimates in support of the proposed SN CRAC, as required by
    § 7(i)(2)(A).

[^14]: While GNA focuses here upon the requirements of § 7(b)(2), BPA
    made no effort to ensure that the rates resulting after application
    of the SN CRAC met *any* of the rate directives in §§ 7(b) and 7(c)
    of the Northwest Power Act.