Exhibit 10.3

ADDITIONAL PRODUCTS SALES AGREEMENT

INDEX TO SECTIONS

Section 1. Term of Contract
Section 2. Definitions
Section 3. Purchaser's Products
Section 4. Treatment of the Reasonable Portion
Section 5. Determination of Product Availability and Product Costs
Section 6. Scheduling of Products; Points of Delivery and Risk of Loss
Section 7. Payment for Products
Section 8. Liability of Parties
Section 9. Notices and Computation of Time
Section 10. Governing Law
Section 11. Assignment of Agreement
Section 12. Remedies
Section 13. Venue and Attorney Fees
Section 14. Compliance With Law
Section 15. Headings
Section 16. Entire Agreement; Modification
Section 17. No Partnership or Third Party Rights
Section 18. Representations and Warranties
Section 19. Conflicts
Section 20. Counterparts

Exhibits
Exhibit 1 - Non-Firm Generation Product

ADDITIONAL PRODUCTS SALES AGREEMENT

Executed by
PUBLIC UTILITY DISTRICT NO. 2
OF GRANT COUNTY
And
PUGET SOUND ENERGY, INC.

This Additional Products Sales Agreement ("Agreement") is entered into as of
December 13, 2001 between Public Utility District No. 2 of Grant County,
Washington (the "District"), a municipal corporation of the State of Washington,
and Puget Sound Energy, Inc. (the "Purchaser"), a corporation organized and
existing under the laws of the State of Washington. The District and the
Purchaser are referred to as a "Party" and collectively as "Parties."

SECTION 1. TERM OF AGREEMENT.

Except as otherwise provided herein, this Agreement shall be in full force and
effect from and after it has been executed by the District and the Purchaser.
Unless sooner terminated pursuant to other provisions, this Agreement shall
remain in effect until the earlier of expiration or termination of the New FERC
License or such time that the District no longer has authority to market Priest
Rapids Project Products. Except as otherwise provided herein, all obligations
accruing under this Agreement are preserved until satisfied.

SECTION 2. DEFINITIONS.

As used in this Agreement, the following terms when initial capitalization
herein shall have the meaning ascribed to them in the Priest Rapids Project
Product Sales Contract, or as set forth below:

"Agreement(s)" mean this Agreement and similar agreements between the District
and other Purchasers.

"Heavy Load Hours" shall mean those hours, as defined by then current industry
standards, that constitute the higher value, or higher demand hours in the week.
Currently, these hours are defined as hour ending 0600 through hour ending 2200,
Monday through Saturday excluding holidays defined by the National Electric
Reliability Council.

"Interest Rate" shall mean the Prime Rate for Large Banks as reported in the
Wall Street Journal, as reported on the first day of the month in which payment
was received by the District.

"Light Load Hours" shall mean those hours, as defined by then current industry
standards, that constitute the lower value, or lower demand hours in the week.
Currently, these hours are defined as all hours that are not Heavy Load Hours.

"Products" means those products that the District agrees to sell to the
Purchaser, and the Purchaser agrees to purchase as more particularly described
in Sections 3 and 5 hereof.

"Purchasers" shall mean the Purchaser and each person or entity that has entered
into an agreement with the District substantially similar to this Agreement.

SECTION 3. PURCHASER'S PRODUCTS.

Subject to the terms and conditions of this Agreement, Purchaser hereby agrees
to purchase and the District hereby agrees to make available and sell to the
Purchaser the Product set below.

Non-Firm Generation Product

SECTION 4. TREATMENT OF THE SALE OF THE REASONABLE PORTION.

Pursuant to the PL 83-544 Orders, the Reasonable Portion must be offered for
sale. Purchaser has no claim or right under this Agreement to receive any of the
Reasonable Portion, or any proceeds from the sale thereof; provided, however,
that nothing in this Agreement shall be interpreted as prohibiting the District
and the Purchaser from entering one or more separate agreements regarding the
Reasonable Portion and the disposition of the proceeds of the sale of the
Reasonable Portion.

SECTION 5. DETERMINATION OF PRODUCT AVAILABILITY AND PRODUCT COSTS.

(a) The amount of each Product that the District will make available to
Purchaser during each Contract Year, and the cost of each Product that will be
charged to the Purchaser, will be determined by the terms of the exhibit listed
below:

  Non-firm Generation Product - Exhibit 1.

(b) Purchaser agrees to pay to the District, in accordance with Section 7, the
costs of the Product listed in Section 5(a).

(c) Deliveries of Product pursuant to this Agreement will be terminated if the
District does not obtain an Annual FERC License or New FERC License, and may be
reduced under any of the following conditions as determined by the District:

(1) Pursuant to Section 5.

(2) If the District is unable to deliver the Product to the Purchaser due to
Uncontrollable Forces.

(3) If failure to reduce deliveries, together with deliveries to all other
Purchasers and deliveries to the District, would result in exceeding Priest
Rapids Project Output or subject it or its operation to undue hazard or violate
the FERC License, any applicable law, regulation, or Operating Agreement.

(4) In case of emergencies or in order to install equipment in, make repairs to,
make betterments, renewals, replacements, and additions to ("Improvements"),
investigations and inspection of, or perform other maintenance work on the
Priest Rapids Project.

The District will use its reasonable efforts to give advance notice to the
Purchaser regarding any planned interruption or reduction, giving the reason
therefor and stating the probable duration thereof.

SECTION 6. SCHEDULING OF PRODUCT DELIVERIES; METERING, TRANSMISSION LOSSES,
POINTS OF DELIVERY AND RISK OF LOSS.

(a) The scheduling of deliveries of the Product provided hereunder shall be
governed by the provisions of Exhibit 1.

(b) The treatment of metering, transmission losses end Points of Delivery of the
Product provided hereunder shall be governed by the provisions of Exhibit 1.

(c) Unless otherwise provided in Exhibit 1, title to and risk of loss for the
Product provided hereunder shall reside with the District until such Product
reaches the Point of Delivery, at which time risk of 1oss and title to such
Product shall reside with the Purchaser.

SECTION 7. PAYMENT FOR PRODUCT.

(a) The District shall provide to Purchaser for each Product provided hereunder
as specified in Exhibit 1, either a pro forma annual statement of estimated
Product costs, or a monthly invoice for the costs of the Product made available
to the Purchaser in the preceding month.

(b) The monthly payments set forth in the pro forma annual statement of
estimated Product costs shall be due and payable by Purchaser by electronic
funds transfer to the District's account, designated in writing by the District,
on the 20th calendar day of each month. The payment of monthly invoices by
Purchaser shall be due and payable by electronic funds transfer to the
District's account, designated in writing by the District, on the 20th calendar
day after the date of issuance of the monthly invoice.

(c) If payment in full of any monthly payment amount set forth on a pro forma
annual statement or a monthly invoice is not received by the District on or
before the due date as set forth in Subsection 7(b), a delayed payment charge of
2% of the unpaid amount due will be made. Any bill which remains unpaid for more
than 30 days after the due date shall, in addition to the delayed payment
charge, accrue interest at the lesser of 1.5% per month or the maximum rate
allowed by law. If the due date as set forth in Subsection 7(b) is a Saturday,
Sunday or a District recognized holiday, the next following business day shall
be the last day on which payment may be received without the addition of the
delayed payment charge. Additionally, if payment due to the District under this
Section 7 remains unpaid 30 days after the due date, the District may thereafter
suspend delivery of Product to the Purchaser which would otherwise occur until
payment in full of all amounts due and owing (including any interest and delay
charges) is received by the District.

(d) For Products that are billed on a pro forma annual statement of estimated
Product costs, on or before 180 days after the end of each Contract Year, the
District will either credit against estimated Product costs due from Purchaser
in the then current Contract Year, or bill to Purchaser, the true-up amount, if
any, as determined pursuant to the provisions of Exhibit 1; provided, that if a
refund of costs are due to Purchaser following the expiration of this Agreement,
the District shall make a cash refund of such amount to the Purchaser.

(e) In the event that the Purchaser in good faith disputes a monthly invoice,
Purchaser shall pay the amount of the monthly invoice in full and designate in
writing to the District on or before the due date the portion of the monthly
invoice that is subject to the dispute. The Parties shall in good faith attempt
to resolve such dispute. If upon the final resolution of such dispute, whether
by agreement of the Parties or otherwise, payment of all or any portion of the
disputed amount is due to the Purchaser, such payment amount shall include
interest on the amount to be paid to the Purchaser, calculated from the date of
payment by Purchaser to the date of payment to Purchaser, using the Interest
Rate.

(f) If a payment due from Purchaser to the District pursuant to this Section 7
is due and unpaid for a period of sixty (60) days or more, the District may
terminate this Agreement by providing to the Purchaser written notice of such
termination not less than ten (10) days prior to the date of termination.

SECTION 8. LIABILITY OF PARTIES.

(a) Except as otherwise provided in this Agreement, each Party hereby releases
the other Party and its commissioners, officers, directors, agents and employees
from any claim for loss or damage arising out of the ownership, operation, and
maintenance of the Priest Rapid Project including my loss of profits or
revenues, loss of use of power system, cost of capital, cost of purchased or
replacement power, other substantially similar liability or other direct or
indirect consequential loss or damage, except as provided in the Agreement
Limiting Liability Among Western Interconnected Systems for parties to that
agreement. This release shall not include any claim by the Purchaser for refunds
for over-payments made to the District nor any claim for specific performance of
the District's obligation to deliver to the Purchaser during the term of this
Agreement the Products to which the Purchaser is entitled under this Agreement.

(b) The Purchaser shall have no claim of any type or right of action against the
District: (i) as a result of a FERC or court order or amendment; (ii) as a
result of the failure to receive an Annual FERC License or a New FERC license or
the adjustment of delivery of Priest Rapids Products pursuant to Section 5(c)
whether arising under the terms of this Agreement or otherwise; and the
Purchaser hereby releases the District and its commissioners, officers, agents
and employees from any claim for loss or damage arising out of the events
described in this paragraph.

SECTION 9. NOTICES AND COMPUTATION OF TIME.

Any notice or demand, except those provided for in Section 7, under this
Agreement shall be deemed properly given if such notice is given pursuant to
Section 18 of the Purchaser's Product Sales Contract. In computing any period of
time from such notice, such period shall commence at 12:00 A.M. (midnight) on
the date mailed. The designations of the name and address to which any such
notice or demand is directed may be changed at any time by either Party giving
notice as above provided.

SECTION 10. GOVERNING LAW.

The Parties agree that the laws of the State of Washington shall govern this
Agreement.

SECTION 11. ASSIGNMENT OF AGREEMENT.

Neither the Purchaser nor the District shall by contract, operation of law or
otherwise, assign this Agreement or any right of interest in this Agreement
without the prior written consent of the other Party, which shall not be
unreasonably withheld; provided, however, a Party may, without the consent of
the other Party (and without relieving itself from liability hereunder) (i)
transfer or assign this Agreement to an affiliate of the Party provided that the
affiliate's creditworthiness is equal or higher than that of the Party or (ii)
transfer or assign this Agreement to any person or entity succeeding to all or
substantially all of the distribution and generating facilities of the Party
whose creditworthiness is equal or higher than that of the Party; provided,
however, that in each such case, any such assignee shall agree in writing to be
bound by the terms and conditions in this Agreement and the transferring Party
shall deliver such tax and enforceability assurance as the other Party may
reasonably request.

SECTION 12. REMEDIES.

(a) A Party may take whatever action at law or in equity as may appear necessary
or desirable to collect the amounts payable by the defaulting Party under this
Agreement then due and thereafter to become due, or to enforce performance and
observation of any obligation, agreement or covenant of the defaulting Party
under this Agreement.

(b) No right or remedy conferred upon or reserved to a Party is intended to be
exclusive of any other right or remedy, and each and every right and remedy
shall be cumulative and in addition to any other right or remedy given
hereunder, or now or hereafter legally existing, upon the occurrence of any
default. Failure of the Party to insist at any time on the strict observance or
performance by the other Party of any of the provisions of this Agreement, or to
exercise any right or remedy provided for in this Agreement shall not impair any
such right or remedy nor be construed as a waiver or relinquishment thereof for
the future. Receipt by the District of any payment required to be made hereunder
with knowledge of the breach of any provisions of this Agreement shall not be
deemed a waiver of such breach.

SECTION 13. VENUE AND ATTORNEY FEES.

Venue of any action filed to enforce or interpret the provisions of this
Agreement shall be exclusively in the United States District Court for the
Eastern District of Washington or the Superior Court of the State of Washington
for Grant County and the Parties irrevocably submit to the jurisdiction of any
such court. In the event of litigation to enforce the provisions of this
Agreement, the prevailing Party shall be entitled to reasonable attorney's fees
in addition to any other relief allowed.

SECTION 14. COMPLIANCE WITH LAW.

(a) The Parties shall conform to and comply with all laws, rules, regulations,
license conditions or restrictions promulgated by the FERC or any other
governmental agency or entity having jurisdiction over the Priest Rapids
Project. The Purchaser shall cooperate and take whatever action is necessary to
cooperate fully with the District in meeting such requirements. Obligations of
the District contained in this Agreement are hereby expressly made subordinate
and subject to such compliance.

(b) The Purchaser shall ensure that Products available to Purchaser under this
Agreement are not sold, resold, distributed for use or used outside the Pacific
Northwest in violation of the Bonneville Project Act, Public Law 75-329, the
Pacific Northwest Consumer Power Preference Act, Public Law 88-552, the Regional
Act or in contravention of any applicable state or federal law, order,
regulation, or policy. If such sales occur in violation of the foregoing, the
Purchaser, shall reimburse the District for any penalties imposed on and costs
incurred by the District as a consequence of such violation.

SECTION 15. HEADINGS.

The headings of sections and paragraphs of this Agreement are for convenience of
reference only and are not intended to restrict, affect or be of any weight in
the interpretation or construction of the provisions of such sections and
paragraphs.

SECTION 16. ENTIRE AGREEMENT; MODIFICATION.

This Agreement constitutes the entire agreement between the Parties with respect
to the subject matter of this Agreement, and supersedes all previous
communications between the Parties, either verbal or written, with respect to
such subject matter. No modifications of this Agreement shall be binding upon
the Parties unless such modifications are in writing signed by each Party.

SECTION 17. NO PARTNERSHIP OR THIRD PARTY RIGHTS.

(a) This Agreement shall not be interpreted or construed to create an
association, joint venture or partnership between the Parties, or to impose any
partnership obligations or liability upon any Party.

(b) This Agreement shall not be construed to create rights in or grant remedies
to any third party as a beneficiary of this Agreement.

SECTION 18. REPRESENTATIONS AND WARRANTIES.

Each Party represents and warrants to the other Party that:

(a) It is duly organized, validly existing and in good standing under the laws
of the jurisdiction of its formation.

(b) The execution, delivery and performance of this Agreement are within its
powers, have been duly authorized by all necessary action and do not violate any
of the terms and conditions in its governing documents, any contracts to which
it is a party or any law, rule, regulation, or order applicable to it.

(c) This Agreement constitutes a legally valid and binding obligation
enforceable against it in accordance with its terms, subject to equitable
defenses and applicable bankruptcy, insolvency and similar laws affecting
creditors' rights generally.

SECTION 19. CONFLICTS.

In the event of a conflict between any provision of this Agreement and those
contained in the Priest Rapids Project Product Sales Contract, the provisions of
the Priest Rapids Project Product Sales Contract shall prevail.

SECTION 20. COUNTERPARTS.

This Agreement may be executed in counterparts, each of which shall be an
original and all of which shall constitute the same Agreement.

  PUBLIC UTILITY DISTRICT NO. 2
OF GRANT COUNTY, WASHINGTON

  By:     /s/ Mike Conley

--------------------------------------------------------------------------------

  Mike Conley

(SEAL) President, Board of Commissioners

  ATTEST:

  By:     /s/ Thomas W. Flint

--------------------------------------------------------------------------------

  Thomas W. Flint

  Secretary, Board of Commissioners

  Date:     4/15/02

--------------------------------------------------------------------------------

  PUGET SOUND ENERGY, INC.

  By:     William A. Gaines

--------------------------------------------------------------------------------

  William A. Gaines

(SEAL) Title: Vice President, Energy Supply

Exhibit

Exhibit 1

NON-FIRM GENERATION PRODUCT
(and exchange for Load Following Product)

Except as otherwise provided in this Exhibit 1 or in the Agreement, terms used
herein with initial capitalization shall have the meanings set forth in Section
2 of the Priest Rapids Project Product Sales Contract.

1.

--------------------------------------------------------------------------------

Non-Firm Generation Product Description

--------------------------------------------------------------------------------

The Non-Firm Generation Product is a portion of the non-firm energy available to
the District from the Priest Rapids Project as and when such energy is
available, as determined by the District.

2.

--------------------------------------------------------------------------------

Purchasers Share of Non-Firm Generation Product

--------------------------------------------------------------------------------

The District will make available Purchaser's Share (defined below) of the
Non-Firm Generation Product that the District determines is available each day
during the term of this Agreement in accordance with this Exhibit 1. The
Purchaser's Share shall be the Purchaser's percent participation in the 1956
Contract divided by 63.5% from November 1, 2005 through October 31, 2009 after
which it shall be the average of the Purchaser's participation in the 1956 and
1959 Contracts divided by 63.5%.

As part of the pro forma statement provided to Purchaser pursuant to Section
5(b) of the Priest Rapids Project Product Sales Contract, the District shall
provide to Purchaser an estimate for the next Contract Year of the amount of
Priest Rapids Project Non-Firm Generation by month that the Priest Rapids
Project is expected to produce based on information available at the time such
estimate is prepared.

3.

--------------------------------------------------------------------------------

Availability or Non-Firm Generation Product

--------------------------------------------------------------------------------

The Non-Firm Generation Product will be available commencing November 1, 2005.

The amount of Non-Firm Generation Product for each day is the Project Non-Firm
Generation for such day multiplied by a percentage equal to 100% less the sum of
all Purchaser Power Allocations from all of the Priest Rapids Project Product
Sales Contracts, less the Reasonable Portion and less 36.5%. For purposes of
such calculation, Project Non-Firm Generation is the actual energy generation
(in mwhrs) of the Priest Rapids Project Output less the product of firm energy
calculated pursuant to Section 5(b)(2) of the Priest Rapids Project Product
Sales Contract, distributed on a shaped basis over each day, and a factor of
1.08 for Monday through Friday, and factor of 0.8 for Saturdays and Sundays. In
the event that the calculation of Project Non-firm Generation is less than zero,
the actual Non-firm Generation will be zero.

For example: If firm energy is 250 mw and actual generation is 300 mw, then
Project Non-Firm Generation on Monday through Friday would be 300-(250*1.08)=30
mw. Project Non-Firm Generation on Saturday and Sunday would be
300-(250*0.8)=100 mw.

The District will estimate the Purchaser's Non-firm Generation Product on a
daily preshedule basis according to available data ("Estimated Purchaser's
Non-firm"). On Monday through Saturday, such schedule shall be delivered with
the same amount of megawatt-hours delivered in Heavy Load Hours as in Light Load
Hours. On Sundays, such schedule shall be delivered in equal hourly amounts over
all 24 hours. On an after-the-fact basis, the District will compute the amount
of Purchaser's Non-firm and will maintain a deviation account to track the
difference in the daily Estimated Purchaser's Non-firm and the actual
Purchaser's Non-firm. Positive and negative balances in the deviation account
will be used to adjust the daily Estimated Purchaser's Non-firm that is
delivered on a preschedule basis. Positive and negative balances will carry
through from month to month.

Preschedule deliveries to Purchasers will be reduced or eliminated in realtime
in the event of a contingency that reduces or eliminates the District's ability
to generate the daily Estimated Purchaser's Non-firm at the Priest Rapids
Project.

4.

--------------------------------------------------------------------------------

Pricing and Payment

--------------------------------------------------------------------------------

For each Contract Year during the term of this Agreement, the Purchaser shall
pay the District in twelve equal monthly installments the product of the
estimated Annual Power Cost contained in the pro forma statement prepared
pursuant to Section 7(a) of the Priest Rapids Project Product Sales Contract and
the ratio of Purchaser Estimated Non-Firm to the average total generation of the
Priest Rapids Project estimated pursuant to the Operating Agreements. The pro
forma statement provided to purchaser pursuant to Section 7(a) of the Priest
Rapids Project Product Sales Contract shall separately set forth the Purchaser's
estimated monthly payment obligation for Non-Firm Generation Product for the
next Contract Year.

The payments made by Purchaser for the Non-Firm Generation Product on an
estimated basis will be trued up to actual values not later than 150 days after
end of each Contract Year using actual Annual Power Costs prepared pursuant to
Section 7(g) of the Priest Rapids Project Product Sales Contract, and actual
metered amounts of Non-Firm Generation Product. Any amounts due to Purchaser
will be credited against Purchaser's payment obligation in the then current
Contract Year, and any amounts due from Purchaser to the District will be
invoiced to Purchaser, all in accordance with such Section 7(g).

5.

--------------------------------------------------------------------------------

Exchange of Non-Firm Generation Product for Load Following Product

--------------------------------------------------------------------------------

(a) Exchange Defined — The Load Following Product provides capacity and
associated energy for short periods of time. The Purchaser then returns the same
amount of energy within 168 hours.

  Upon notice to the District by January 1, 2003, the Purchaser may make a
one-time irrevocable exchange of their entire share of Non-Firm Generation
Product for Load Following Product on the basis of 1.5 megawatts of Load
Following Product for each megawatt of Non-Firm Generation Product. For the
purpose of this calculation of this exchange the Project Non-firm Generation
shall be calculated pursuant to Operating Agreements based on the average
historical river flows.

  The total amount exchanged by all Purchases shall not exceed the Monthly
Maximum Load Following Product defined below which shall be allocated on a first
come first served basis. The Purchaser's Share of Load Following Product will be
the ratio of the number of megawatts of Non-firm Generation Product exchanged by
an individual Purchaser to the total exchanged by all Purchasers.

(b) Availability - The Load Following Product will be available commencing
November 1, 2005. Load Following Product will be available only after all other
obligations of the Priest Rapids Project, including but not limited to, meeting
and following the District's loads, meeting commercial arrangements entered into
prior to this Agreement, requirements of Operating Agreements, meeting
regulatory requirements, and after accounting for water conditions and the
status of the Priest Rapids Project. Notwithstanding the table below the amount
of Load Following Product will be reduced if the District is unable to meet
these obligations or if it would otherwise be forced to the market to buy Load
Following Product.

  The monthly Maximum Load Following Product will be 50 megawatts from November
2005 through October 31, 2009 or 100 megawatts after October 31, 2009 and
associated energy.

  On or before the tenth day preceding each month the District will identify to
the Purchaser the estimated Monthly Minimum Load Following Product (in
megawatts) that the District expects to be available during the next month, but
will not be less than the firm amounts shown below.

2005-2009

Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. 0 50 50 50 50 0 25 25
50 50 50 0

2009 forward

Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. 100 100 100 100 100
50 100 100 100 100 100 100

  Each day, the District shall provide the Purchaser with the Daily Load
Following Product (in megawatts) that the District determines will be available
for the subsequent preschedule day or days. The actual Daily Load Following
Product shall be between the Monthly Minimum Load following Product and the
Monthly Maximum Load Following product.

  The Purchaser's Load Following Product shall be the lesser of the amount of
Load Following Product exchanged pursuant to Section 5a of this Exhibit 1 or the
Daily Load Following Product times the Purchaser's Share.

(c) Return of Energy - Energy associated with the Load Following Product used by
Purchaser shall be returned to the District in like quantities (hour for hour)
on like days 168 hours after the delivery by the District to the Purchaser.
Energy returned to the District shall be delivered at the District's Point of
Delivery as specified in Section 7 of this Exhibit 1.

  If, in real-time, the District determines that Purchaser's schedule of return
energy to the District is in excess of the estimated Purchaser's Load Following
Product in future hours, and that such excess will cause spill, then District
may, at its option, require the Purchaser to reduce its schedule. Purchaser
shall reduce its schedule by such excess amount. Purchaser shall schedule the
remaining energy to the District at the earliest time possible for both District
and Purchaser.

  District shall meter the actual Load Following Product used to meet Purchasers
load signal in each hour.

(d) Charge for Spill - The District will charge the Purchaser for any spill
allocated to the District if it is determined by the District that such spill
was directly attributable to the actions of the Purchaser under this Agreement.
Such charge will equal the product of such spill (in megawatt-hours) and the
Market Energy Rate for the daily diurnal period in which such spill occurred.

  Market Energy Rate shall mean the rate (in $/mwhr) at which firm energy is
available on the wholesale power market, for quantities comparable to the spill
caused by the actions of Purchaser, during the diurnal period that the spill
occurred, as determined by the District.

(e) Excess Load Following Product and Energy Not Returned - In the event that
Purchaser takes in any hour Load Following Product in excess of its Purchaser's
Share, Purchaser shall be subject to a charge equal to 150% of the Mid-C Market
Capacity Rate for the daily diurnal period in which the Load Following Product
was taken times the amount of Load Following Product (in megawatts) taken in
excess of Purchaser's Share.

  Market Capacity Rate shall mean the rate (in $/mw-mo.) as quoted by the
Bonneville Power Administration, for quantities comparable to the Load Following
Product made available to Purchasers, during the diurnal period that Purchaser
took Load Following Product in excess of its Purchaser's Share.

  In the event that Purchaser does not return energy associated with Load
Following Product delivered by Purchaser, then Purchaser shall be considered in
Default pursuant to Section 22 of the Priest Rapids Project Product Sales
Contract.

6.

--------------------------------------------------------------------------------

Billing

--------------------------------------------------------------------------------

Purchaser shall pay the amounts set forth in the pro forma statement provided to
Purchaser pursuant to section 7(a) of the Priest Rapids Project Product Sales
Contract.

Not later than ten (10) days after the end of each month during the term, the
District will prepare and provide to the Purchaser an invoice setting forth the
payment due from Purchaser to the District for the Load Following Product made
available for the preceding month.

7.

--------------------------------------------------------------------------------

Points of Delivery

--------------------------------------------------------------------------------

The District shall make available to the Purchaser the Non-Firm Generation
Product at the Points of Delivery specified in Section 11 of the Priest Rapids
Project Product Sales Contract.

The District shall make available to the Purchaser the Load Following Product
and associated energy, and Purchaser shall return energy to the District, at the
Points of Delivery specified in Section 11 of the Priest Rapids Project Product
Sales Contract.

8.

--------------------------------------------------------------------------------

Metering, Transmission and Losses

--------------------------------------------------------------------------------

Metering, transmission and losses will be in accordance with Section 12 of the
Priest Rapids Project Product Sales Contract.

9.

--------------------------------------------------------------------------------

Information and Communications

--------------------------------------------------------------------------------

Purchaser shall be responsible for the costs of installing and maintaining any
communications equipment necessary to effectuate the delivery of the Non-Firm
Generation Product or Load Following Product between the District and the
Purchaser.

10.

--------------------------------------------------------------------------------

Scheduling and Accounting

--------------------------------------------------------------------------------

Scheduling and accounting shall be performed according to the current industry
standards.

AMENDMENT NO. 1 TO THE
ADDITIONAL PRODUCTS SALES AGREEMENT

The Public Utility District No. 2 of Grant County, Washington, ("District"), and
Puget Sound Energy, Inc.(“Purchaser"), hereby agree to this Amendment No.1 to
the Additional Products Sales Agreement dated December 13, 2001 (the "Product
Agreement"). Unless otherwise defined herein, all capitalized terms defined in
the Product Agreement shall have the meanings set forth therein when used in
this Amendment.

1. Term of Amendment No. 1

This Amendment No. 1 shall take effect on upon the execution by the District and
Purchaser, and shall expire on the earlier of the expiration or termination date
of the Product Agreement.

2. Amendments to Provisions of the Product Agreement

Purchaser and the District agree that the Product Agreement is hereby amended as
follows:

2.1 The first paragraph of Section 2 of Exhibit 1 is amended by adding after the
last sentence thereof the following:

  The amount of Non-Firm Generation Product available to Purchaser shall equal
the product of Purchaser's Share and the Non-Firm Generation Product.

2.2 The second paragraph of Section 3 of Exhibit 1 is deleted in its entirety
and is replaced with the following:

  The amount of Non-Firm Generation Product for each day is the Project Non-Firm
Generation for such day multiplied by a percentage equal to 100% less the sum of
all Purchaser Power Allocations from all of the Priest Rapids Project Product
Sales Contracts, less the Reasonable Portion and less 36.5%. For purposes of
such calculation, Project Non-Firm Generation shall be the actual energy
generation (in mwhrs) of the Priest Rapids Project Output less the firm energy
calculated pursuant to Section 5(b)(2) of the Priest Rapids Project Product
Sales Contract, times the shaping factors described below. For example, based on
current operating requirements of the Priest Rapids Project, the Project Firm
Generation is distributed on a shaped basis over the week, using a factor of
1.08 for Monday through Friday, and a factor of 0.8 for Saturdays and Sundays.
These factors will be changed by the District to reflect changes in operating
constraints applicable to the Priest Rapids Project. In the event that the
calculation of Project Non-firm Generation is less than zero, there will be no
obligation on the part of the Purchaser to schedule Non- Firm Generation Product
back to the District, but such negative amount will be included in the deviation
account.

2.3 The third paragraph of Section 3 of Exhibit 1 is deleted in its entirety and
is replaced with the following:

  For example: Assume that flows during the week are 324 MW and that flows
during the weekend are 240 MW. If firm energy (critical generation) is 250 MW
then Project Non-Firm Generation on Monday through Friday would be 324-(250*
1.08)=54 MW times 24 hours = 1,296 MWh for each weekday. The amount of power
scheduled during the weekend would be 240-(250*0.8)=40 MW times 24 hours = 960
MWh for each weekend day.

2.4 The fourth and fifth sentences of the fourth paragraph of Section 3 of
Exhibit 1 are revised as follows:

  Whenever they appear in such sentences, the phrase "Estimated Purchaser's
Non-Firm" is revised to read "Estimated Purchaser's Non-Firm Generation
Product", and the phrase "Purchaser's Non-Firm" is revised to read "Purchaser's
Non-Firm Generation Product".

2.5 The second paragraph of Section 5(a) of Exhibit 1 is deleted in its entirety
and is replaced with the following:

  Upon notice to the District by January 1, 2003, the Purchaser may make a
one-time irrevocable exchange of their entire share of Non-Firm Generation
Product for Load Following Product on the basis of 1.5 megawatts of Load
Following Product for each average annual megawatt of Non-Firm Generation
Product. For the purpose of the calculation of this exchange, the Project
Non-firm Generation shall be calculated pursuant to Operating Agreements based
on the average historical river flows.

  For purposes of determining Purchaser's entitlement to Load Following Product,
the exchange ratio set forth above shall be applied to the amount of Non-Firm
Generation Product initially available to Purchaser hereunder, but such ratio
shall be applied in subsequent years to any increased amount of Non-Firm
Generation Product to which the Purchaser would have been entitled absent its
election hereunder.

2.6 Section 5 of Exhibit 1 is amended by adding a new subsection 5(f) as
follows:

  If the one-time exchange has been made as provided in this section 5,
Purchaser's compensation to the District for the Load Following Product shall be
limited to the return of energy and the charges set forth in Sections 5(c), (d)
and (e). Purchaser shall not be required to pay to the District as compensation
for the Load Following Product any portion of the Annual Power Costs of the
Priest Rapids Project pursuant to section 4 of this Exhibit 1.

2.7 The Product Agreement is amended by adding a new Exhibit 2, Purchasers
Product Percentage Allocations, which is attached hereto.

In Witness Whereof, Purchaser and the District have caused this Amendment No.1
to be executed in their respective names by their duly authorized officers.

Purchaser
PUGET SOUND ENERGY, INC. PUBLIC UTILITY DISTRICT NO. 2 OF
GRANT COUNTY, WASHINGTON

By:     /s/ William A. Gaines

--------------------------------------------------------------------------------

  By:     /s/ Mike Conley

--------------------------------------------------------------------------------

         William A. Gaines            Mike Conley

Title: Vice President, Energy Supply

--------------------------------------------------------------------------------

  Title: President, Board of Commissioners

--------------------------------------------------------------------------------

Date Signed:    4/03/2002

--------------------------------------------------------------------------------

  Date Signed:    4/15/2002

--------------------------------------------------------------------------------

  By:     /s/ Thomas W. Flint

--------------------------------------------------------------------------------

             Thomas W. Flint

             Secretary, Board of Commissioners

  Date Signed:   4/15/2002

--------------------------------------------------------------------------------

EXHIBIT A, AMENDMENT 1

Purchasers Product Percentage Allocations

    Requested Number of Section 3c/e Section 3c/d Step 2 Allocation1 Adjustment
for 2005-2009

  Historical Shares Purchaser Customers Step 1     Reasonable Added   Displace
Reasonable Added

Purchasers Name 1956 1959 Product % 2000 Allocation Surplus Displace Portion
Products7 Surplus2 3 Portion 4 Products7

A. 1956/1959 Purchasers                          

  PacifiCorp 13.9% 18.7% 32.6% 778,446   25.03% 25.03% 25.03% 25.67% 21.34%
26.87% 23.19% 21.89%

  Portland General 13.9% 18.7% 32.6% 726,039   25.03% 25.03% 25.03% 25.67%
21.34% 26.87% 23.19% 21.89%

  Puget Sound Energy 8.0% 10.8% 18.8% 915,851   14.43% 14.43% 14.43% 14.80%
12.28% 15.51% 13.36% 12.60%

  Avista Utilities 6.1% 8.2% 25.0% 309,986   10.98% 10.98% 10.98% 11.26% 9.37%
11.79% 10.17% 9.61%

  Cowlitz PUD 2.0% 2.7% 4.7% 44,361   3.61% 3.61% 3.61% 3.70% 3.07% 3.88% 3.34%
3.15%

  Eugene Water & Elec 1.7% 2.3% 4.0% 80,097   3.07% 3.07% 3.07% 3.15% 2.61%
3.30% 2.84% 2.68%

  City of Forest Grove 0.5% 0.7% (5)% 8,592   0.92% 0.92% 0.92% 0.94% 0.77%
1.00% 0.84% 0.79%

  City of McMinnville 0.5% 0.7% (5) 13,973   0.92% 0.92% 0.92% 0.94% 0.77% 1.00%
0.84% 0.79%

  City of Milton-Freewater 0.5% 0.7% (5) 4,581   0.92% 0.92% 0.92% 0.94% 0.77%
1.00% 0.84% 0.79%

B. 1956 Only Purchasers2                          

  Seattle City Light 8.0% n/a (5) 349,557   6.14% 6.14% 6.14% 6.30% 12.28%
12.28% 12.28% 12.60%

  Tacoma Power 8.0% n/a 16.0% 147,819   6.14% 6.14% 6.14% 6.30% 12.28% 12.28%
12.28% 12.60%

  Kittitas PUD 0.4% n/a   3,078

--------------------------------------------------------------------------------

  0.31%

--------------------------------------------------------------------------------

0.31%

--------------------------------------------------------------------------------

0.31%

--------------------------------------------------------------------------------

0.31%

--------------------------------------------------------------------------------

0.61%

--------------------------------------------------------------------------------

0.61%

--------------------------------------------------------------------------------

0.61% 0.63%

--------------------------------------------------------------------------------

      Total A+B       3,392,380 97.51% 97.51% 97.51% 97.51% 100.00% 97.51%%
116.40% 103.81% 100.00%

C. No. Idaho Purchasers                          

  Clearwater n/a n/a 10.43% 9,314   0.27% 0.27% 0.27% n/a 0.27% 0.27% 0.27% n/a

  Idaho Co. Light & Power n/a n/a 2.41% 3,007   0.09% 0.09% 0.09% n/a 0.09%
0.09% 0.09% n/a

  Kootenai n/a n/a 16.28% 16,244   0.47% 0.47% 0.47% n/a 0.47% 0.47% 0.47% n/a

  Northern Lights n/a n/a 12.30% 14,541   0.42% 0.42% 0.42% n/a 0.42% 0.42%
0.42% n/a

D. Snake River Purchasers                          

  Fall River Rural Elec. n/a n/a (6) 10,992   0.32% 0.32% 0.32% n/a 0.32% 0.32%
0.32% n/a

  Lost River Electric n/a n/a (6) 2,327   0.07% 0.07% 0.07% n/a 0.07% 0.07%
0.07% n/a

  Lower Valley Electric n/a n/a (6) 19,182   0.55% 0.55% 0.55% n/a 0.55% 0.55%
0.55% n/a

  Raft River Rural Elec. n/a n/a (6) 2,927   0.08% 0.08% 0.08% n/a 0.08% 0.08%
0.08% n/a

  Salmon River Electric n/a n/a (6) 2,570   0.07% 0.07% 0.07% n/a 0.07% 0.07%
0.07% n/a

  United Electric n/a n/a (6)

--------------------------------------------------------------------------------

5,515

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

0.16%

--------------------------------------------------------------------------------

0.16%

--------------------------------------------------------------------------------

0.16%

--------------------------------------------------------------------------------

n/a

--------------------------------------------------------------------------------

0.16%

--------------------------------------------------------------------------------

0.16%

--------------------------------------------------------------------------------

0.16%

--------------------------------------------------------------------------------

n/a

--------------------------------------------------------------------------------

     Associated Total     1.24% 43,513

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

1.25%

--------------------------------------------------------------------------------

1.25%

--------------------------------------------------------------------------------

1.25%

--------------------------------------------------------------------------------

n/a

--------------------------------------------------------------------------------

1.25%

--------------------------------------------------------------------------------

1.25%

--------------------------------------------------------------------------------

1.25%

--------------------------------------------------------------------------------

n/a

--------------------------------------------------------------------------------

      Total C+D       86,619 2.49%

--------------------------------------------------------------------------------

2.49%

--------------------------------------------------------------------------------

2.49%

--------------------------------------------------------------------------------

2.49%

--------------------------------------------------------------------------------

n/a

--------------------------------------------------------------------------------

2.49%

--------------------------------------------------------------------------------

2.49%

--------------------------------------------------------------------------------

2.49%

--------------------------------------------------------------------------------

n/a

--------------------------------------------------------------------------------

Total 63.5% 63.5%     100.00%

--------------------------------------------------------------------------------

100.00%

--------------------------------------------------------------------------------

100.00%

--------------------------------------------------------------------------------

100.00%

--------------------------------------------------------------------------------

100.00

--------------------------------------------------------------------------------

100.00%

--------------------------------------------------------------------------------

118.89%

--------------------------------------------------------------------------------

106.30%

--------------------------------------------------------------------------------

100.00%

--------------------------------------------------------------------------------

  NOTES: (1)   Allocated per average of 1956 and 1956 Shares or, for Idaho
Purchasers, per number of customers.

    (2)   Allocated per 1956 Shares Surplus Product and, for Idaho Purchasers,
per number of customers.

    (3)   Allocated per 25% of 1956 Shares and 75% of 1959 Shares for 1956/1959
Purchasers, per 1956 Shares for the Only 1956 Purchaser, and number of customers
for No. Idaho and Snake River Purchasers.

    (4)   Allocated per 75% of 1956 Shares and 25% of 1959 Shares for 1956/1959
Purchasers, per 1956 Shares for the Only 1956 Purchaser, and number of customers
for No. Idaho and Snake River Purchasers.

    (5)   Have Intent to Sign Contract Letter without Requested Purchaser
Product Percent.

    (6)   Snake River Purchaser's Contract with the Association.

    (7)   Allocated only to the 1956/1959 and Only 1956 Purchasers per 1956
Shares for 2005-2009, then average of 1956 and 1959 Shares post-2009.