Exhibit 10.2

PRIEST RAPIDS PROJECT 
                                         REASONABLE PORTION
                                        POWER SALES CONTRACT

INDEX TO SECTIONS

SECTION 1. TERM OF CONTRACTSECTION 2. DEFINITIONSSECTION 3. PROCEEDS FROM THE SALE OF THE REASONABLE PORTIONSECTION 4. DETERMINATION OF ESTIMATED PURCHASER REVENUE ALLOCATION OF REASONABLE PORTION PROCEEDSSECTION 5. ANNUAL POWER COSTSSECTION 6. PAYMENT FOR PRIEST RAPIDS PROJECT PURCHASER REVENUE ALLOCATIONSECTION 7. SUPPORT AND COOPERATIONSECTION 8. PAYMENT OF THE REASONABLE PORTION PROCEEDSSECTION 9. INFORMATION TO BE MADE AVAILABLE TO THE PURCHASERSECTION 10. INSURANCESECTION 11. PROJECT INTEGRATIONSECTION 12. LIABILITY OF PARTIESSECTION 13. NOTICES AND COMPUTATION OF TIMESECTION 14. DISTRICT'S BOND RESOLUTIONS AND LICENSESECTION 15. GOVERNING LAWSECTION 16. ASSIGNMENT OF CONTRACTSECTION 17. REMEDIES ON DEFAULTSECTION 18. VENUE AND ATTORNEY FEESSECTION 19. COMPLIANCE WITH LAWSECTION 20. HEADINGSSECTION 21. ENTIRE AGREEMENT; MODIFICATION; CONFLICT IN PRECEDENCESECTION 22. NO PARTNERSHIP OR THIRD PARTY RIGHTSSECTION 23. PURCHASERS' COMMITTEE; ARBITRATIONSECTION 24. REPRESENTATIONS AND WARRANTIESSECTION 25. COUNTERPARTSEXHIBITSEXHIBIT A - BOND RESOLUTION SECTIONSEXHIBIT B - AREAS SERVED OUTSIDE GRANT COUNTY

PRIEST RAPIDS PROJECT REASONABLE PORTION
                                               POWER SALES CONTRACT
                                                              Executed by
                                             PUBLIC UTILITY DISTRICT NO. 2
                                                            OF GRANT COUNTY
                                                                  And
                                                       PUGET SOUND ENERGY, INC.

This contract 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".

|(a) | Except as otherwise provided herein, this contract 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 contract 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 Output. Except as otherwise provided herein, all obligations accruing under this contract are preserved
     until satisfied.
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|(b) | Notwithstanding Section 1(a), the affirmative obligations of the Parties in Sections 3(a), 3(b), 3(c), 3(d), 3(g), 4
     through 6, 8 through 12 and 23 (a) and (b) (1-2, and 5) shall take effect on November 1, 2005.
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|(c) | Except as provided in Section 1(d), all Eligible Purchasers shall have until December 31, 2001 to execute this contract.
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|(d) | If the City of Forest Grove, McMinnvil1e, Milton-Freewater or Seattle City Light provides the District written assurance on
     or before December 31, 2001, that its superintendent or its city manager supports the execution of this contract and will so
     recommend to its city council, then if Seattle City Light provides such written assurance it shall have until March 31, 2002, to
     execute this contract, and if Forest Grove, McMinnville or Milton Freewater provides the District such written assurance, the
     city providing such written assurance shall have until February 1, 2002, to execute this contract.
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As used in this contract,
the following terms when initially capitalized shall have the following
meanings:

1956 Contract
shall mean the contract entered into by the District and various parties during
May 1956 for the sale of capacity and energy from the Priest Rapids Development
as supplemented and amended from time to time.

1959 Contract
shall mean the contract entered into by the District and various parties during
June 1959 for the sale of capacity and energy from the Wanapum Development as
supplemented and amended from time to time.

"Annual FERC License" shall mean a license for the Priest Rapids Project
issued by FERC to the District for an interim period before a New FERC License.

Bond Resolution
shall mean each and all of the resolutions adopted by the District authorizing
the issuance of outstanding Debt for the Priest Rapids Project.

Contract
Year shall mean the 12 month period commencing at 12:01 a.m. on January 1
of each year and ending at 12:01 a.m. on the following January 1; provided,
however, that the first Contract Year shall commence on November 1, 2005, and
end the following January 1, 2006, and that the last Contract Year shall end on
the last day of the New FERC License, or such time that the District no longer
has authority to market Priest Rapids Project Output.

Contract(s)
shall mean this contract and similar contracts between the District and other
Purchasers.

Debt shall mean
any bonds, notes, or other debt obligations of the District, including, but not
limited to all bonds outstanding at the effective date of this contract, a line
of credit, installment purchase agreement, financing lease, interfund loan,
derivative securities or payment obligations and any other obligation for
borrowed money, the proceeds of which will be used for the benefit of the Priest
Rapids Project, including to finance betterments, renewals, replacements and
additions to the Priest Rapids Project, to refund other debt, or any other
lawful purpose related to the Priest Rapids Project. Debt does not include the
Columbia River-Priest Rapids Hydro-Electric Production System Revenue Bonds,
Series 1956, which have been paid, or the Wanapum Hydroelectric Refunding
Revenue Bonds, Series 1963, which are scheduled to be repaid on or prior to
January 1, 2004.

Electric System
shall mean the separate electric utility system of the District, including all
associated generation, transmission and distribution facilities and any
betterments, renewals, replacements and additions of such system, but does not
include the Priest Rapids Project or any other utility properties designated as
a separate utility system of the District.

"Eligible Purchasers" means the Purchasers who are parties to the 1956 and 1959 Contracts, and the Kootenai Electric Cooperative, Inc., Clearwater Power
Company, Idaho County Light and Power Cooperative Association, Inc., Northern Lights, Inc. and the electric cooperative members of
the Snake River Power Association, Inc. (collectively, the "Idaho Cooperatives") as of October 31, 2000.

"FERC" shall mean the Federal Energy Regulatory Commission or its successor.

FERC License
shall mean any license for the Priest Rapids Project issued by FERC to the
District.

Marketing Plan
shall mean the plan for making available in a fair, equitable and
non-discriminatory manner pursuant to market-based principles and
procedures the Reasonable Portion as required by applicable law or PL 83-544
Orders.

New FERC
License shall mean the license issued by FERC to the District following
the expiration of the Original FERC License for operation of the Priest Rapids
Project for a duration of 30 years or longer, not including any subsequent
annual or other license.

Operating
Agreements shall mean any agreements to which the District is or may
become a party, which provide for operation of the Priest Rapids Project,
including but not limited to, the Pacific Northwest Coordination Agreement, the
Agreement for the Hourly Coordination of Projects on the Mid-Columbia River, the
Western Systems Coordinating Council Agreement, the Agreement Relating to
Wanapum Development Encroachment on the Rock Island Project and the Northwest
Power Pool, which is the voluntary association of utilities formed in the
Pacific Northwest for the purpose of ensuring the adequacy and reliability of
the electric power systems in the Pacific Northwest.

"Original FERC License" shall mean the Federal Power Commission License for the Priest Rapids Project issued to the District on
November 4, 1955, together with amendments thereto.

Pacific
Northwest shall have the meaning ascribed thereto in Section 3(14) of the
Regional Act.

Priest Rapids
Development shall mean the separate utility system of the District,
including a dam at the Priest Rapids Development, all generation and
transmission facilities associated therewith, and all betterments, renewals,
replacements, and additions to such system, as further described in Section 2(f)
of Exhibit 1 of District Resolution No. 390 which is attached as Exhibit A, but
shall not include any additional generation, transmission and distribution
facilities hereafter constructed or acquired by the District as a part of the
Electric System or the Wanapum Development or any other utility properties of
the District acquired or constructed as a separate utility system.

"Priest Rapids Project" shall mean the hydroelectric project on the Columbia River in the State of Washington designated by the
Federal Power Commission as Project No. 2114. The Priest Rapids Project consists of the Priest Rapids Development and the Wanapum
Development.

Priest Rapids Project
Output shall mean the amount of capacity, energy (both firm and non-firm),
pondage, reactive power, ancillary services and any other product from the
Priest Rapids Development from November 1, 2005 to November 1, 2009 and from the
Priest Rapids Project from November 1, 2009 through the term of this contract
under the operating conditions which exist during the term, including periods
when the Priest Rapid Project may be wholly or partially inoperable for any
reason, after correction for encroachment, Canadian entitlement, station and
project use, and depletions required by the FERC License or other regulatory
requirements.

Prudent Utility
Practice means those practices, methods and acts which: (i) when engaged
in are commonly used in prudent engineering and operations to operate electric
equipment and associated mechanical and civil facilities lawfully and with
safety, reliability, efficiency and expedition or (ii) in the exercise of
reasonable judgment considering the facts known when engaged in, could have been
reasonably expected to achieve the desired result consistent with applicable
law, safety, reliability, efficiency and expedition. Prudent Utility Practice is
not intended to be the optimum practice, method or act, to the exclusion of all
others, but rather to be a spectrum of commonly used practices, methods or acts.

"Public Law 83-544" (or "PL 83-544") shall mean the legislation passed by the 83rd Congress authorizing the District to develop the
Priest Rapids Project.

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

"Purchaser Revenue Allocation" shall mean the fixed percentage (stated to the second decimal point, e.g., 0.01%) as set forth in
Section 3 (b) of the proceeds from and the costs of the sale of the Reasonable Portion made available under this contract. For
parties to the 1956 and 1959 Contracts, Purchaser Revenue Allocation may not exceed twice the average of their participation in the
1956 and 1959 Contracts except that for those Purchase that were parties to the 1956 Contracts but were not parties to the 1959
Contracts their Purchaser Revenue Allocation for the period November 1, 2005 to October 31, 2009 may not exceed twice their
participation in the 1956 Contract. For any individual Idaho Cooperative, Purchaser Revenue Allocation shall not exceed the Purchaser
Product Percentage of any individual party to the 1956 or 1959 Contract that is one of the Purchasers except when the provisions of
Section 3(e) are applied. The Purchaser Revenue Allocation set forth in Section 3(b) is subject to revision pursuant to Sections
3(e), 3(f), 3(g), 3(h) and 4(f).

"Reasonable Portion" shall mean that 30% portion of the Priest Rapids Project Output required by FERC pursuant to Public Law 83-544
to be offered for sale by the District.

Reasonable Portion Proceeds shall mean the proceeds derived from the sale of the Reasonable Portion pursuant to the Marketing Plan.

Regional Act
shall mean Public Law 96-501, the Pacific Northwest Electric Power Planning and
Conservation Act.

Uncontrollable
Forces shall mean any cause reasonably beyond the control of the Party and
which the Party subject thereto has made reasonable efforts to avoid, remove or
mitigate, including but not limited to acts of God, fire, flood, explosion,
strike, sabotage, act of the public enemy, civil or military authority,
including court orders, injunctions, and orders of government agencies with
proper jurisdiction, insurrection or riot, an act of the elements, failure of
equipment or contractors, or inability to obtain or ship materials or equipment
because of the affect of similar causes on suppliers or carriers; provided,
however, that in no event shall an Uncontrollable Force excuse the Purchaser
from the obligation to pay any amount when due and owing under this contract.

Wanapum
Development shall mean the second stage of the Priest Rapids Project as
more fully described in Section 2.2 of District Resolution No.474, which is
attached as Exhibit A, but shall not include any generation, transmission and
distribution facilities hereafter constructed or acquired by the District as a
part of the Electric System or the Priest Rapids Development, or any other
utility properties of the District acquired or constructed as a separate utility
system.

The following terms are defined in the cited sections of this contract:

"Act of Default" at Section 17(a).
"Annual Power Costs" at Section 5(a).
"Committee" at Section 23.
"Coverage Requirement" at Section 5(a)(9).
"Estimated District Loads" at Section 4(c)(1).
"Estimated District Power Costs" at Section 4(c)(4).
"Estimated Power Cost Shortfall" at Section 8(a)(4).
"Estimated Unmet District Load" at Section 4(c)(3).
"Excess Costs" at Section 6(g).
"Financing Costs" at Section 5(a)(3).
"Idaho Cooperatives" at "Eligible Purchasers".
"Improvements" at Section 4(f)(4).
"Multi-Year Contracts" at Section 8(a)(3).
"New FERC License Costs" at Section 5(a)(6).
"Party" and "Parties" at the Preamble.
"PL 83-544 Orders" at Section 3(h).
"Purchaser Estimated Cost" at Section 6(a)(5).
"Refund Costs" at Section 6(g).
"Rock Island Hydroelectric Project" at Section 11(b).
"Zero Year" at Section 8(a)(3).

SECTION 3.  PROCEEDS FROM THE SALE OF THE REASONABLE PORTION.

|(a) | Pursuant to the PL 83-544 Orders, the Reasonable Portion must be offered for sale. The District, therefore, desires to mitigate
     the risk associated with generating the Reasonable Portion including, but not limited to, the uncertainty of future Priest
     Rapids Project Output, costs and market prices. The District believes that this can be best accomplished by allocating to
     Purchasers the costs and proceeds from the sale of the Reasonable Portion.
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|(b) | Upon execution of the contract, Purchaser shall select a percentage allocation of the costs and proceeds from the sale of the
     Reasonable Portion as described below. The percentage of the allocation of the costs and proceeds from the sale of the Reasonable
     Portion ("Purchaser Revenue Allocation") shall be 18.8 percent. The amount of the proceeds and the costs from the sale of the
     Reasonable Portion are defined in Sections 4 and 6, respectively.
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|(c) | The District will use the Purchaser Revenue Allocation of the Reasonable Portion Proceeds to purchase capacity and energy for the
     Purchaser pursuant to a supplementary agreement between the Purchaser and the District. The District will directly assign to the
     Purchaser the cost incurred by the District in using the Purchaser Revenue Allocation to purchase such capacity and energy.
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|(d) | By notification to the District pursuant to Section 4(b), the Purchaser may elect to receive its Purchaser Revenue Allocation of
Reasonable Portion Proceeds in cash rather than receiving energy and capacity.
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|(e) | REALLOCATION.  If collectively Purchasers subscribe to Purchaser Revenue Allocations that total more than 100%, then Purchaser
Revenue Allocations will be determined as follows; provided, however, that the application of the following formula shall not result
in the Purchasers being assigned a Purchaser Revenue Allocation larger than that included in this contract on the date of execution:
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|(1) | Step 1. One-hundred percent of the Purchaser Revenue Allocation will be divided between the Purchasers who are parties to the
1956 and 1959 Contracts, as a group, and the Purchasers who are included in the Idaho Cooperatives, as a group, in proportion to the
number of retail electric customers located in the Pacific Northwest (determined by the number of retail meters) served by each group
as of October 31, 2000.
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|(2) | Step 2. Each Purchaser's Revenue Allocation will be determined as follows:
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|(A) | For Purchasers who are parties to the 1956 and 1959 Contracts, the proportion of such Purchaser Revenue Allocations from Step 1
above will be distributed to individual Purchasers as follows:
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| | (i) | For November 1, 2005 through October 31, 2009 the Purchaser Revenue Allocations shall be distributed in proportion to
participation in the 1956 Contract and 1959 Contract weighted 75% and 25%, respectively.
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| | (ii) | For the period after November 1, 2009 the Purchaser Revenue Allocations shall be distributed in proportion to the sum of
participation in the 1956 Contract and 1959 Contract divided by two.
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|(B) | For the Purchasers who are included in the Idaho Cooperatives, the proportion of such Purchaser Revenue Allocations from Step 1
will be distributed to such individual cooperatives in proportion to the number of retail electric customers located in the Pacific
Northwest (determined by number of retail meters) each cooperative served as of October 31, 2000.
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|(f) | If the reallocation procedure of Section 3(e) is implemented, then for the period November 1, 2005 through October 31, 2009, the
following shall apply to Purchasers who were parties to the 1956 Contracts but were not parties to the 1959 Contracts:
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|(1) | The Purchaser Revenue Allocation shall be adjusted to be in proportion to participation in the 1956 Contract (the Purchaser's
percent participation in the 1956 Contract divided by 63.5%).
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|(2) | The District shall be obligated to provide the Reasonable Portion Proceeds pursuant to Section 5 using the Purchaser Revenue
Allocation, calculated pursuant to Section 3(f)(1), and the Purchaser shall be obligated to make payments pursuant to Sections 5 and 6
using such Purchaser Revenue Allocation.
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| | The adjustments to Purchaser Revenue Allocation pursuant to this Section 3(f) will have no effect on the Purchaser Revenue Allocation
of any other Purchaser.
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|(g) | If a Contract with one of the Purchasers is terminated pursuant to Section 17 as a result of such Purchaser's Act of Default, the
District shall give the non-defaulting Purchasers notice of such default. Beginning with the first-month that is at least 30 days
following such notice, the Revenue Allocations (other than zero) of non-defaulting Purchasers shall be increased pro rata until
either: (i) the Purchaser Revenue Allocation of the defaulting Purchaser have been fully allocated or (ii) a further pro rata
increase to the Purchaser Revenue Allocations of the non-defaulting Purchasers would adversely affect the tax-exempt status of any
outstanding Debt. In the event of (ii), the portion of the Purchaser Revenue Allocation of the defaulting Purchaser not yet allocated
will be offered to all Purchasers that can accept such allocation without adversely affecting the tax-exempt status of any
outstanding Debt. If after such offer there remains some portion of the Purchaser Revenue Allocation of the defaulting Purchaser not
yet allocated, the District at its discretion may elect to accept such unallocated portion. If after all of the foregoing there
remains unallocated Purchaser Revenue Allocation of the defaulting Purchaser, the Purchaser Revenue Allocations (other than zero) of
non-defaulting Purchasers shall be increased pro rata based on each such non-defaulting Purchaser's Purchaser Revenue Allocation
before any allocation under this Section 3(g). In the event that the allocation described in the immediately preceding sentence
adversely affects the tax-exempt status of Debt, any increased costs resulting therefrom will be included in Annual Power Costs.
Nothing in this subsection is intended to limit any claims the non-defaulting Purchasers may assert against the defaulting Purchaser.
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|(h) | REGULATORY APPROVALS. The District and the Purchaser believe that this contract fully complies with the requirements of Public
Law 83-544. FERC has ordered that a Reasonable Portion of the Priest Rapids Project Output be offered for sale based on market
principles and that Eligible Purchasers are to receive a meaningful priority. Additionally, FERC has stated  that the District may
negotiate power contracts as part of the license application process provided that implementation of such contracts is contingent on
receipt of license authority. The District and the Purchaser agree that nothing in this contract limits in any way the District's
ability to conform to these FERC requirements. Nothing in this contract, other than Section 7, limits the ability of the Purchaser
from participating in any FERC or court proceedings that may address Public Law 83-544.
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| | The Parties understand that FERCs orders of February 11, 1998 and June 12, 1998 in Docket No. EL95-35 (the PL 83-544 Orders)
require the District, as part of its application for a New FERC License, to file the Marketing Plan for making available the
Reasonable Portion in a fair, equitable and non-discriminatory manner pursuant to market-based principles and procedures. The Parties
further understand and agree that nothing in this contract is intended to affect or limit in anyway the right of the District to
develop and file the Marketing Plan which it determines is consistent with the PL 83-544 Orders.
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| | In the event that FERC or a court of competent jurisdiction shall by order determine that any provision of this contract violates a
requirement of either PL 83-544 or of any of the PL 83-544 Orders, the Parties shall, within 30 days of the entry of such an order,
commence negotiations for the purpose of reaching agreement on such amendments to this contract, if any, as may be needed for the
purpose of complying with that order and for the purpose of preserving the basic benefits and obligations of the Parties. If, within
90 days of commencement of negotiations, the Parties are not able to resolve their differences and to agree upon any necessary
amendments, either Party may, after notice to the other Party, cause the matter to be submitted to binding arbitration as provided in
Section 23.
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| | If following the issuance of the arbitration decision, a Party reasonably determines that acceptance of such amendments will result
in materially decreased benefits or materially increased obligations when compared to this contract, the Party may by notice
to the other Party explain its reasons for the determination and, if given within 10 days of the arbitration decision, terminate this
contract.
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SECTION 4. DETERMINATION OF ESTIMATED PURCHASER REVENUE ALLOCATION OF REASONABLE PORTION PROCEEDS.

|(a) | The estimated Purchaser Revenue Allocation of the Reasonable Portion Proceeds expected to be available to Purchaser during each
Contract Year will be determined by application of the following provisions of this Section 4.
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|(b) | On or before 60 days prior to the beginning of each Contract Year, Purchaser shall provide the District with written notification
if it wishes to elect, pursuant to Section 3(d), to receive its Purchaser Revenue Allocation of Reasonable Portion Proceeds in cash
instead of the District purchasing energy and capacity therewith. In the event that Purchaser fails to make such annual election
pursuant to this section, the District will provide Purchaser with energy and capacity pursuant to Section 3(c).
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|(c) | For the purpose of determining the estimated Purchaser Revenue Allocation of the Reasonable Portion Proceeds for the next
Contract Year, on or before 30 days prior to the beginning of each Contract Year, the District shall prepare and mail to the
Purchaser a pro forma statement showing for the next Contract Year:
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|(1) | "Estimated District Loads," which shall mean all projected retail electric energy loads for the next Contract Year based on
average weather conditions, plus aggregated losses, projected to be used at locations served by the District during the next Contract
Year with the exception of (i) locations outside of the geographic boundaries shown on Exhibit B and (ii) that portion of loads of
individual retail customers that during a consecutive 12 month period after 2000 exceed by ten average megawatts or more the energy
load of such customer for the immediately preceding consecutive 12 month period. Once load at a location is included in Estimated
District Loads, loads at such location shall continue to be included in full in future Contract Years without regard to the source of
supply for such load. For example, if a load is expected to be served in all or part by an entity other than the District during the
next Contract Year, the entire load shall continue to be included in Estimated District Loads. If a new load or increased load of one
average megawatt or more at a single retail customer has been included in Estimated District Loads in the current Contract Year, and
less than 90% of such new or increased load was actually measured in the current year, then Estimated District Loads shall be reduced for the next Contract Year by the difference between the amount
included in the current Contract Year and the amount measured. If there are more than one such new or increased loads for the current
Contract Year, they shall be combined for determining both the 90% and the amount of any reduction. If in the current Contract Year a
load of one average megawatt or more is placed on the District which was not included in the current Contract Year's Estimated
District Loads, then the next Contract Year's Estimated District Loads shall be increased by the amount of such load measured in the
current Contract Year. Except for such load correction calculations, Estimated District Loads for the next Contract Year shall be not
less than the current Contract Year's Estimated District Loads.
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|(2) | The estimated amount of firm energy from the Priest Rapids Project for the next Contract Year based on critical water planning
using the procedures of Operating Agreements in effect on October 31, 2000, unless the District and Purchasers whose Purchaser
Revenue Allocation total 66% or more mutually agree to use procedures from a subsequent Operating Agreement.
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|(3) | The monthly amount of "Estimated Unmet District Load" determined as follows:
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|(A) | Prior to November 1, 2009, the Estimated District Load as calculated in Section4(c)(1) less
70% of the estimated firm energy output of the Priest Rapids Development less 36.5% of the estimated firm energy output of
the Wanapum Development both as calculated
in Section 4(c)(2).
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|(B) | On or after November 1, 2009, the Estimated District Loads as calculated in Section
4(c)(1) less 70% of the estimated firm energy output of the Priest Rapids Project as calculated in Section 4(c)(2).
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|(C) | In the event that the calculation in Section 4(c)(3)(A) or (B) above is less than zero
the Estimated Unmet District Load will be zero.
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|(D) | The difference so determined will be shaped on a monthly basis using the District's historic
load patterns.
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|(4) | The "Estimated District Power Costs" which shall equal the estimated cost, including the costs of transmission and other
necessary services, of acquiring the monthly amount of capacity and energy identified in Section 4(c)(3) determined by references to
published futures price data and firm power supply contracts entered into by the District, and rates for transmission and other
necessary services. Prior to the start of the next Contract Year, any Purchaser may provide the District with a written firm and
irrevocable bid(s) for all or part of the capacity and energy needed to serve the Estimated Unmet District Load from Section 4(c)(3)
for the next Contract Year, and for which the District has not procured a firm power supply. If such bid(s), or in the case of a
partial supply bid the combination of the bid and the Estimated Power Cost for the remaining Estimated Unmet District Load, is less
costly than the Estimated District Power Cost set forth in the pro forma statement as determined by the District, the District may
either: (i) acquire from the Purchaser the capacity and energy offered, and use the bid price in the calculation of the Estimated District Power Costs for the Estimated Unmet
District load so served; or (ii) substitute the bid price for the portion of the Estimated Unmet District Load that could have been
served with the capacity and energy so bid in the calculation of Estimated District Power Costs.
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|(5) | The estimated Reasonable Portion Proceeds.
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|(d) | Subject to Section 8, in those Contract Years when the District has Estimated District Power Costs as determined pursuant to
Section 4(c)(4), the District shall be entitled to and shall take from the actual Reasonable Portion Proceeds the Estimated
District Power Costs calculated pursuant to Section 4(c)(4).
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|(e) | Subject to Section 8, the Purchaser shall have available the capacity and energy purchased pursuant to Section 3(c) with an
amount equal to the actual Reasonable Portion Proceeds received by the District, minus the Estimated District Power Costs as
calculated in Section 4(c)(4), multiplied by the Purchaser Revenue Allocation; provided, however, if the Purchaser has elected to
receive cash rather than capacity and energy, Purchaser shall be entitled to receive in cash an amount equal to the actual Reasonable
Portion Proceeds received by the District, minus the Estimated District Power Costs as calculated in Section 4(c)(4), multiplied by
the Purchaser Revenue Allocation.
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|(f) | The Purchaser Revenue Allocation of the Reasonable Portion Proceeds available to Purchaser may be reduced if the District does
not obtain an Annual FERC License or New FERC License, and under any of the following conditions as determined by the District:
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|(1) | Pursuant to Section 4.
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|(2) | If the District is unable to produce the Reasonable Portion due to Uncontrollable Forces.
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|(3) | If failure to reduce deliveries of the Reasonable Portion would result in exceeding the capability of the Priest Rapids Project
or subject it or its operation to undue hazard or violate the FERC License, any applicable law, regulation, or Operating Agreement.
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|(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 inspections of, or perform other maintenance work on the Priest Rapids Project.
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| | 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.
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|(g) | Notwithstanding any other Section of this contract, if the Priest Rapids Project is capable of producing Priest Rapids Project
Output, but the Purchaser Revenue Allocation of the Reasonable Portion Proceeds to be made available to the Purchaser is projected to
be zero for a Contract Year, the Purchaser may give the District written notice, no later than 100 days after the start of the Contract Year, that the Purchaser elects to terminate this contract. In such event, this contract shall terminate
effective upon receipt of such written notice by the District.
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SECTION 5. ANNUAL POWER COSTS.

|(a) | "Annual Power Costs" as used in this contract shall include, for the Priest Rapids Development beginning November 1, 2005 and for
the Priest Rapids Project beginning November 1, 2009, all of the District's costs and expenses of every type, both direct and
indirect, resulting from the ownership, operation, maintenance of and Improvements that are incurred or paid by the District during
each Contract Year and that are incurred consistent with Prudent Utility Practice. Such costs and expenses shall for any Contract
Year include, but not be limited to the following, in each case without duplication:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(1) | All operations costs, maintenance costs, administrative costs, taxes, in lieu of tax payments relating to production and delivery
of Priest Rapids Project Output (excluding depreciation) including, but not limited to, those specified in the Uniform System of
Accounts as prescribed by the FERC for electric utilities and licensees.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Amounts that the District determines are needed to pay for the prevention or correction of any loss or damage and for
Improvements to keep the Priest Rapids Project in good operating condition. Subject to Section 23, the Purchaser agrees that the
District shall have the solo right to determine what costs end expenses shall be incurred in connection with the ownership,
operation, and maintenance of and Improvements to the Priest Rapids Project.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Subject to Section 5(e), interest that accrues and is payable into the debt service fund with respect to outstanding Debt;
principal that accrues and is payable into the debt service fund with respect to outstanding Debt, whether at maturity or by reason
of redemption (including premiums for redeeming Debt prior to its scheduled maturity), amounts required to restore any reserve
accounts maintained to secure Debt to the level required by the resolution authorizing the Debt and Financing Costs. "Financing
Costs" include, but are not limited to, discounts, insurance premiums, letter of credit fees, costs of hedging interest rates, costs
of compliance with disclosure requirements, legal and bond counsel fees, independent auditors, printing, financial advisor, bond
registrar and trustee costs.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Subject to Section 5(e), costs of creating and replenishing any reserve or contingency fund required to be maintained by any Bond
Resolutions and working capital funds.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Any liability or cost, including settlements and judgments, incurred as a result of or related to the ownership, operation or
maintenance of the Priest Rapids Project and not covered by insurance.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Costs incurred by the District in applying for a New FERC License as recorded on the District's books of account for the Priest
Rapids Project (account number 183090), including but not limited to those costs and interest expenses incurred before November 1,
2005 (New FERC License Costs). New FERC License Costs incurred prior to November 1, 2005 will be recovered uniformly over a 15-year
amortization period commencing with the Contract Year starting on January 1, 2006. The estimated New FERC License Costs incurred by the District after
November 1, 2005 will be included in Annual Power Costs. In the event of termination of this contract for any reason subsequent to
the effective date of the New FERC License, the Purchaser shall pay the District an amount equal to the unrecovered New FERC License
Costs multiplied by the Purchaser Power Allocation at the time of termination. In the event of termination of this contract for any
reason prior to the effective date of the New FERC License, Purchaser shall have no liability for unrecovered New FERC License Costs.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Obligations entered into by the District as part of its effort to obtain a New FERC License, including but not limited to the
cost of replacing Priest Rapids Project Products that maybe committed in such obligations.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Costs incurred by the District to fulfill obligations, if any, to parties to the 1956 and 1959 Contracts who do not sign this
contract, as such costs are required or approved by a court, or reasonably approved by the District after notice to the Purchaser.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | An amount equal to 15% of debt service in that Contract Year or such higher amount as may be required by a Bond Resolution
("Coverage Requirement").
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The District shall credit against Annual Power Costs the following:
|--- | -------------------------------------------------------------------

|(1) | Any insurance or other proceeds received by the District as reimbursement for damages, losses, costs or expenses included in the
Annual Power Costs, and any insurance or other proceeds received as a result of the interruption or reduction of Priest Rapids
Project Output.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Revenue, if any, received from obligations entered into by the District as part of its effort to obtain a New FERC License.
|--- | ---------------------------------------------------------------------------------------------------------------------------

|(3) | Revenue, if any, received as a result of the District fulfilling obligations to parties to the 1956 or 1959 Contracts that do not
sign this contract, pursuant to Section (l)(b) of those contracts, excluding revenue required to be paid pursuant to the 1959
Contract.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | The Coverage Requirement, to the extent that it is not expended during a Contract Year for capital or other costs of the Priest
Rapids Project (the amount not spent shall be credited against Annual Power Costs for the following Contract Year).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Interest earnings on funds of the Priest Rapids Project that are not required to be retained by such fund by a Bond Resolution.
|--- | -------------------------------------------------------------------------------------------------------------------------------

|(c) | Costs directly or indirectly associated with the District's Electric System or any other separate system of the District shall
not be part of Annual Power Costs other than the payment of Debt held by the Electric System.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Any payment received by the District as a result of the taking of the whole or any portion of the Priest Rapids Project Output by
any state or federal government agency shall be used by the District to credit Annual Power Costs or to retire, at or prior to
maturity, Debt, whichever shall be proper under the circumstances existing at the time of the taking.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The Purchaser agrees that the District shall have the sole discretion to determine what portion, if any, of the Priest Rapid
Project financing will be accomplished by issuance of Debt and the terms and covenants of any Debt.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(1) | To the extent that the District makes Improvements to the Priest Rapids Project that are not financed by Debt proceeds, Annual
Power Costs will include a cost as determined by the following: the District shall determine all of the Improvements anticipated for
the Priest Rapids Project for the Contract Year and the District shall estimate the weighted average economic service life of the
Improvements, and shall calculate a weighted average market interest rate assuming the District were to issue Debt to finance such
Improvements, both as reasonably determined by the District. Based on such calculations the District shall include in Annual Power
Costs an amount sufficient to amortize the costs (including both interest and principal pursuant to this Section 5(e)(1)) of such
Improvements on a level basis over a period equal to the estimated weighted average economic service life of the Improvements. The
amortization period for any Improvements shall not exceed 30 years and land shall be deemed to have a service life of 30 years. The
District may adjust prospectively the amortization of any Improvements to reflect the actual costs of such Improvements, to correct
any error in computation or to reflect a material change in the District's estimate of the average economic life of the Improvements.
The District shall not be required to amortize capital expenditures that are estimated to cost below the amount that in accordance
with the District's capitalization policy are not required to be capitalized and may include such costs in Annual Power Costs.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | To the extent that the District issues Debt (i) with a final maturity that is not earlier than the expiration of the estimated
weighted average service life of the Improvements, to be financed with the Debt and (ii) the total annual amounts required for the
payment of interest, principal and sinking fund requirements of such Debt when due in a Contract Year do not vary by more than 10%
from those required in any other Contract Year, then Annual Power Costs shall include the actual principal and sinking fund
requirements that accrues and is payable into the debt service fund for that Debt for the Contract Year. To the extent that the
District issues Debt that does not meet the requirements of (i) and (ii) in the prior sentence, then Annual Power Costs will include,
with respect to such Debt, an amount as determined by the District as of the date of issuance of the Debt, sufficient to amortize the
original principal amount of such Debt on a level debt service basis over a period equal to the estimated weighted average economic
service life of the Improvements financed or refinanced by such Debt, commencing on the later of (a) the date of issuance of the Debt
or (b) the in service date of such Improvements, and based on an interest rate equal to, at the election of the District, either (i)
the weighted average interest rate of the Debt or (ii) the weighted average market rate at the time of issuance of the Debt for debt
with similar terms and borrowers similar to the District, as reasonably determined by the District. The amortization period for any Debt shall not exceed 30 years, land shall be deemed to have an economic
useful life of 30 years, and any Debt proceeds deposited into a reserve account shall be credited against Annual Power Cost in the
final year of the Debt. The District may adjust prospectively the amortization of the principal amount of any Debt to correct any
error in computation or to reflect a material change in the District's reasonable estimate of the in service date or the average
economic life of the Improvements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | To the extent that the District creates or replenishes reserve and contingency funds required by Bond Resolutions or working
capital funds that are not financed by Debt proceeds, Annual Power Costs will include a cost determined in a manner analogous to the
calculation in Section 5(e)(2) with such amounts amortized over 15 years. Upon termination of this contract, any such funds will
belong to the District.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | On or prior to July 31st of each year, for budgetary purposes only and not for determining Priest Rapids Project Products or
Purchaser's payment obligations under this contract, the District shall provide the Purchaser a pro forma budget showing an estimate
of Annual Power Costs, Priest Rapids Project Output, Purchaser Revenue Allocation and Estimated District Loads for the following
Contract Year.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 6. PAYMENT FOR PRIEST RAPIDS PROJECT PURCHASER REVENUE ALLOCATION.

|(a) | On or before 30 days prior to the beginning of each Contract Year beginning in 2005, the District shall prepare and mail the
Purchaser a pro forma statement for the next Contract Year showing:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(1) | An estimate of Annual Power Costs specifically assigned to the Purchaser. Specific assignment shall occur whenever a Purchaser or
a group of Purchasers cause identifiable costs to be placed on the Priest Rapids Project.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | A detailed estimate of the Annual Power Costs, less those costs specifically assigned in Section 6(a)(1), for the Contract Year.
|--- | --------------------------------------------------------------------------------------------------------------------------------

|(3) | An estimate of the cost to the Purchaser attributable to the Purchaser Revenue Allocation of the costs of the Reasonable Portion,
which shall be an amount equal to the product of the Reasonable Portion and the Annual Power Costs from Section 6(a)(2) multiplied by
the ratio of the estimated Reasonable Portion Proceeds to be received by the Purchaser calculated pursuant to Section 4(e) to the
estimated total Reasonable Portion Proceeds from Section 4(c)(5).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | An estimate of the cost of purchasing capacity and energy with the Purchaser Revenue Allocation of the Reasonable Portion
Proceeds pursuant to Section 3(c).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The sum of amounts (expressed in dollars) calculated pursuant to Sections 6(a)(1), (3), and (4), hereinafter referred to as the
"Purchaser Estimated Cost."
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | The amount of the monthly payments to be made by the Purchaser to pay the Purchaser Estimated Cost during the next Contract Year.
|--- | ---------------------------------------------------------------------------------------------------------------------------------

|(b) | The pro forma statement provided pursuant to Section 6(a) shall be in lieu of the issuance of monthly bills to the Purchaser by
the District, and the Purchaser shall be obligated to pay the monthly amounts contained therein in accordance with this Section 6.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | In the event of receipts or payments substantially affecting the Annual Power Costs during any Contract Year, the District shall
prepare and mail to the Purchaser a revised statement of estimated Annual Power Costs and Purchaser Estimated Cost, which revised
statement shall supersede any previous statement or revised statement, and the Purchaser shall be obligated to make monthly payments
set forth on such revised statement for the balance of the Contract Year.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Purchaser Estimated Cost shall continue to accrue and the Purchaser shall make payment for the same up to the time of termination
of this contract for whatever reason, irrespective of the condition of the Priest Rapids Project and whether or not it is capable of
producing Priest Rapids Project Output, the Reasonable Portion or the Purchaser Revenue Allocation of the Reasonable Portion
Proceeds. If the Priest Rapids Project is not capable of producing Priest Rapids Project Output then the Purchaser Estimated Cost
will be based on Priest Rapids Project Output in the last full year of operation. In this event, at the request of the Purchaser, the
District will makes its reasonable best efforts to acquire replacement Priest Rapids Products the cost of which will be added to the
Purchaser Estimated Cost.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The monthly payments of Purchaser Estimated Costs set forth in the statement or revised statement 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 of each month.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | If payment in full of any monthly payment amount set forth on a statement or revised statement is not received by the District on
or before the close of business on the 20th day of the month, 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 20th calendar day of the month 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 6 remains unpaid
30 days after the due date, the District may thereafter suspend payment of the Purchaser Revenue Allocation 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.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | On or before 150 days after the end of each Contract Year, the District will submit to the Purchaser a detailed statement of the
Purchaser Estimated Cost and the Purchaser Actual Cost for the Contract Year. Purchaser Actual Cost on such statement shall be
calculated in the same manner as Purchaser Estimated Cost as set forth in Sections 6(a)(1)-(5) but using the actual costs incurred by
the District in the preceding Contract Year; provided, however, that the estimated values calculated pursuant to Sections 4(c)(1)-(2) and 4(c)(5) shall not be modified. If the Purchaser Actual Costs
exceed the Purchaser Estimated Costs on such statement ("Excess Costs"), the District shall bill the Purchaser for an amount equal to
such Excess Costs, and the Purchaser shall pay such bill within 30 days or be subject to the delayed-payment and interest charges as
provided in Section 6(f). If the Purchaser Actual Costs are less than the Purchaser Estimated Costs, or if credits are due pursuant
to Section 5(b) or both (Refund Costs), the District shall give credit to the Purchaser against the Purchaser Estimated Costs for
the current Contract Year in an amount equal to such Refund Costs; provided, that if Refund Costs are due to Purchaser following the
expiration of this contract, the District shall make a cash refund of such amount to the Purchaser.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | The District may use any payments received from the Purchaser under this contract in any manner that the District, in its sole
discretion, shall determine. The District agrees to pay or cause to be paid for the Priest Rapids Project from lawfully available
money of the District, including payments from the Purchaser and other Purchasers, all the operating costs, taxes and assessments,
capital expenditures, payments required for Debt and other costs of the Priest Rapids Project. If the District issues tax-exempt Debt
based on the governmental use of the Priest Rapids Project Output by the Purchaser, the Purchaser covenants that it shall not use any
Priest Rapids Project Output in a manner, or take any other action, that will or is likely to adversely affect the tax-exempt status
of any Debt.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 7. SUPPORT AND COOPERATION.

|(a) | The District shall make application and use reasonable efforts to obtain a New FERC License and obtain FERC approval of this
contract, if required. The District reserves the right to determine when such applications should be made.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In accordance with FERC direction contained in the PL 83-544 Orders, the District commits to providing the Eligible Purchasers
with a meaningful priority in the sale of the Reasonable Portion.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Purchasers may also participate in the development by the District of a proposed Marketing Plan. This Marketing Plan will be
submitted to FERC for approval as part of the relicensing process application; provided, however, that nothing in this Section shall
be construed as compelling the Purchaser to comment on or refrain from commenting on the Marketing Plan.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Purchaser covenants that it shall provide reasonable support, cooperation and assistance to the District in the District's
acquisition of a New and Annual FERC License, any necessary federal, state or local permits relating to the Priest Rapids Project,
FERC approval of this contract, if FERC approval is requested by the District; provided, however, that nothing in this contract
shall preclude the Purchaser from filing comments with FERC to protect the Purchaser's economic benefits provided by this contract.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | In the event that the District believes that the Purchaser has violated any of the above covenants of Section 7(d), the District
may by written notice to the Purchaser describe the alleged violation in reasonable detail and give the Purchaser no less than 10
business days within which to cease the activity in question or to provide to the District a written explanation as to why the Purchaser believes the activity does not constitute a violation of any of the aforementioned covenants. If
the Purchaser does not cure the alleged default and the District continues to consider the action to be in breach of the covenants,
the matter shall be resolved pursuant to arbitration conducted under Section 23. If the Purchaser is determined to be in breach of
the covenants, the District shall have the right to terminate this contract effective immediately upon written notice to the
Purchaser, without any liability or further obligation on the part of the District. In the event of such termination, the District
shall have the right to use or sell in any manner the District determines, the Purchaser Revenue Allocation the Purchaser would have
been otherwise entitled to under this contract.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Purchaser covenants that it shall refrain from filing or supporting any FERC license application for the Priest Rapids Project
other than that filed by the District and refrain from filing or supporting any effort that would lead to modification of the FERC
decisions on Public Law 83-544 contained in the PL 83-544 Orders, unless such a request or petition is filed by the District and the
Purchaser agrees with that request or petition. For purposes of this Section 7(f), refrain from supporting means prepare no
documents, submit no testimony, sign no other agreement or contract other than this contract for Priest Rapids Project Output or for
other products or that is contingent upon a party other than the District receiving a license from FERC to operate the Priest Rapids
Project, engage in no lobbying and provide no funding.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | The Purchaser covenants that it will not take any action which, in the opinion of a neutral third party, would likely be
construed as: (i) having a material adverse effect on the District's ability to obtain an Annual FERC License or a New FERC License
or on the anticipated economic benefits of this contract or (ii) constituting a judicial challenge to the authority of the District
or the Purchaser to enter into and implement the provisions of this contract. This covenant does not apply to anticipated economic
benefits under other agreements between the District and third parties, such as with the Bonneville Power Administration.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | In the event that the District believes that the Purchaser has violated any of the above covenants of Section 7(f) or (g), the
District may by written notice to the Purchaser describe the alleged violation in reasonable detail and give the Purchaser no less
than 4 business days after receipt of such written notice by Purchaser within which to cease the activity in question or to provide
to the District a written explanation as to why the Purchaser believes the activity does not constitute a violation of any of the
aforementioned covenants. If the Purchaser does not cure the alleged default and the District continues to reasonably consider the
action to be in breach of the covenants, the District shall have the right to terminate this contract and the 1956 and 1959
Contracts, effective immediately upon written notice to the Purchaser, without any liability or further obligation on the part of the
District. In the event of such termination, the District shall have the right to use or sell, in any manner the District determines,
the Purchaser Revenue Allocation the Purchaser would have been otherwise entitled to under this contract and any output from the
Priest Rapids Project under the 1956 or 1959 Contracts.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 8. PAYMENT OF THE REASONABLE PORTION PROCEEDS.

|(a) | The Purchaser Revenue Allocation of the Reasonable Portion Proceeds shall be paid to the Purchaser monthly, as follows:
|--- | -----------------------------------------------------------------------------------------------------------------------

|(1) | The monthly payment to the Purchaser shall be the product of the Purchaser Revenue Allocation and the difference between the
          actual monthly payments of the Reasonable Portion Proceeds received by the District and the monthly Estimated District Power
          Costs pursuant to Section 4(c)(4); provided, however, if the Purchaser has elected to have the District make purchases of
          capacity and energy under a supplementary agreement pursuant to Section 3(c), then Purchaser will receive such capacity and
          energy in lieu of the proceeds described in this Section 8(a)(l). Nothing in this Section 8(a)(1) will result in a negative
          payment or a bill to the Purchaser when such Estimated District Power Costs exceed the actual monthly Reasonable Portion Proceeds
          received by the District.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Payments due from the District to Purchaser pursuant to Section 8(a)(1) shall be made in accordance with the provisions of Section
          6, and such payment shall be due not later than the 20th calendar day of each month.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | During the term of this contract, the District may be entitled to take during a Contract Year all of the Reasonable Portion
          Proceeds pursuant to Section 4(d) resulting in a zero payment to purchaser ("Zero Year"). If in any Zero Year the District has in
          place one or more multiple year contracts, the terms of which include or span the Zero Year (Mu1ti-Year Contracts), then the
          payments to the Purchaser from such Multi-Year Contracts included in the calculations performed pursuant to Section 4(e) shall be
          proportional to the annual market price of power as forecast at the time the Multi-Year Contracts were agreed to by the District.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | If in any month the Estimated District Power Costs from Section 4(c)(4) exceed the actual Reasonable Portion Proceeds received in
          such month ("Estimated Power Cost Shortfall"), the Estimated Power Cost Shortfall shall be carried forward to the next month or
          months remaining in the Contract Year in which such Estimated Power Cost Shortfall occurred until paid in full from the
          Reasonable Portion Proceeds received by the District.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 9. INFORMATION TO BE MADE AVAILABLE TO THE PURCHASER.

|(a) | The District agrees to keep records of the Priest Rapids Project in accordance with the Uniform System of Accounts as prescribed
     by FERC for electric utilities and licensees; provided, if there are inconsistencies between the Uniform System of Accounts and this
     contract, this contract shall control. The Purchaser, upon at least 30 days advance written notice to the District, shall have the
     right to audit or examine operating and financial records relating to the Priest Rapids Project during the District's normal business
     hours. To the extent practicable, the Purchasers shall conduct any such audit or examination jointly to minimize the disruption to the
     District's business operations. All costs incurred by the District associated with such audit, including, but not limited to, District
     labor, materials and reproduction services shall be billed to the Purchaser, and shall be promptly reimbursed by the Purchaser in
     accordance with Section 6(e).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Upon request, any audit reports of the Priest Rapids Project by a firm of certified public accountants employed by the District
or by the State Auditor's Office of the State of Washington will be provided to the Purchaser.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Policies of insurance carried by the District pursuant to Section 10 shall be available at the office of the District for
inspection by the Purchaser.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Purchaser's representatives shall at all times be given reasonable access to the Priest Rapids Project, subject to the
District's applicable safety rules and regulations.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Upon request, the Purchaser may obtain information to document the capability of the Priest Rapids Project to produce Priest
Rapids Project Output.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 10. INSURANCE.

The District shall have the right to self-insure and/or obtain and maintain insurance with policies payable to the District for the
following coverage:

|(a) | Obligations of the District under any state or federa1 Workmen's Compensation laws or other, employer's liability;
|--- | ------------------------------------------------------------------------------------------------------------------

|(b) | Public liability for bodily injury and property damage;
|--- | -------------------------------------------------------

|(c) | Physical loss or damage to the Priest Rapids Project on a replacement cost basis; and
|--- | -------------------------------------------------------------------------------------

|(d) | Any other insurance determined to be necessary.
|--- | -----------------------------------------------

SECTION 11. PROJECT INTEGRATION.

|(a) | It is the intention of the Parties hereto that the operation of the Priest Rapids Project shall be integrated and that all
benefits accruing as a result of such integration shall be shared equally by the Priest Rapids and Wanapum Developments. It is also
agreed that before November 1, 2009 and after such date if required by any Bond Resolution, all joint costs of the Priest Rapids and
Wanapum Developments shall be equitably allocated between them as determined by the District.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Parties agree that any compensation (whether energy or money) due or which may become due the owner of the Rock Island
Hydroelectric Project because of encroachment by the Priest Rapids Project after November 1, 2009 on the Rock Island Hydroelectric
Project will either proportionately reduce the amount of Priest Rapids Project Output or be included in Annual
Power Costs, as appropriate, but shall not reduce the amount required to be paid by the Purchaser under Sections 5 and 6. "Rock
Island Hydroelectric Project" shall mean the FERC Hydroelectric Project No. 943 currently operated by Public Utility District No. 1 of
Chelan County, Washington.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 12. LIABILITY OF PARTIES.

|(a) | Except as otherwise provided in this contract, 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 Rapids Project including any 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 contract the Purchaser Revenue Allocation to which the Purchaser is entitled under this
contract.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(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 described in Section 3(h); (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 4(f) whether arising under the terms of this contract or
otherwise; or (iii) as a result of the District's purchasing power or energy on behalf of the Purchaser pursuant to Sections 3(c),
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 13. NOTICES AND COMPUTATION OF TIME.

Any notice or demand, except those provided for in Section 6, by the Purchaser under this contract to the District shall be deemed
properly given if mailed postage prepaid and addressed to Manager, Public Utility District No. 2 of Grant County, Box 878, Ephrata
Washington 98823; any notice or demand by the District to the Purchaser under this contract shall be deemed properly given if mailed
postage prepaid and addressed to the Purchaser:

| | PUGET SOUND ENERGY, INC.
ATTENTION, VICE PRESIDENT, ENERGY SUPPLY
ONE BELLEVUE CENTER BUILDING
411 108TH AVENUE, 15TH FLOOR
BELLEVUE, WA 98004-5515
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

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 provided above.

SECTION 14. DISTRICT'S BOND RESOLUTIONS AND LICENSE.

It is recognized by the Parties that the District, in its operation of the Priest Rapids Project, must comply with the requirements
of the Bond Resolution and with the FERC License together with amendments thereof from time to time made, and the District is hereby
authorized to take such actions as the District determines are necessary and appropriate to comply with such Bond Resolution and FERC
License.

SECTION 15. GOVERNING LAW.

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

SECTION 16. ASSIGNMENT OF CONTRACT.

Neither the Purchaser nor the District shall by contract, operation of law or otherwise, assign this contract or any right or
interest in this contract 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 contract 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 contract 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 contract and the
transferring Party shall deliver such tax and enforceability assurance as the other Party may reasonably request.

SECTION 17. REMEDIES ON DEFAULT.

|(a) | "Act of Default shall mean:
|--- | ---------------------------

|(1) | The failure of a Party to make, when due, any payment required under this contract if such failure is not remedied within three
days after written notice, provided that the payment is not the subject of a good faith dispute pursuant to Section 23. If requested
by the District, the Purchaser shall deposit the disputed amount in escrow with a bank acceptable to the Parties.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Any representation or warranty in this contract is false or misleading in any material respect when made or ceases to remain true
during the term of this contract.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The failure of the Purchaser, after Section 7 or any provision thereof has been found by a court to be void, unlawful or
unenforceable, to perform in accordance with the provisions of Section 7, including without limitation my provision or provisions
found to be void, unlawful or unenforceable.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | A Party shall make an assignment or any general arrangement for the benefit of creditors; file a petition or otherwise commence
or acquiesce in the commencement of a proceeding, under any bankruptcy or similar law for the protection of creditors; or otherwise
becomes bankrupt or insolvent or unable to pay its debts as they fall due.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If a Party commits an Act of Default during the term of this contract, the non-defaulting Party may take any one or more of the
following remedial steps:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(1) | Take any action or exercise any remedy provided to the Party under the provisions of Sections 6 or 7.
|--- | -----------------------------------------------------------------------------------------------------

|(2) | Except where a different time period is set forth herein, if the defaulting Party fails to remedy an Act of Default within ten
days after receiving written notification of the default, then the non-defaulting Party may give a written notice of termination of
this contract on a date specified in such notice, which date shall be not less than 30 days after the date of such notice. If the
Purchaser is given written notice as provided herein, this contract shall terminate upon the date specified in such notice, the
Purchaser thereafter shall have no right, title, or interest in, to, or with respect to the Priest Rapids Project, or any Purchaser
Revenue Allocation, or any Priest Rapids Project Output, but the Purchaser shall remain liable for all amounts due the District which
have accrued prior to the date of termination.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The District may, prior to the termination of this contract pursuant to Section 17(b)(2), at any time suspend any and all rights
of the Purchaser to the Purchaser Revenue Allocation upon not less than five days' notice to the Purchaser. The District may, without
further notice to the Purchaser, grant any or all of such suspended rights to any person or entity for the duration of the
suspension. In such event, the Purchaser shall, in addition to its other obligations under this contract, upon demand, pay to the
District all expenses and any losses incurred in connection with such suspension and any grant of the suspended rights to another
person or entity. No suspension of any or all of the rights of the Purchaser Revenue Allocation shall be construed as an election to
terminate the interests of the Purchaser in, to, and under this contract unless a written notice of termination is given to the
Purchaser pursuant to this contract or unless such termination be decreed by a court of competent jurisdiction.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | The non-defaulting Party may begin and maintain successive proceedings against the defaulting Party for the recovery of damages
or for a sum equal to any and all payments required to be made pursuant to this contract.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | 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 contract 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 contract.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | 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 Act of Default.  Failure of the District to insist at any time on the strict observance or
performance by the Purchaser of any of the provisions of this contract, or to exercise any right or remedy provided for in this
contract 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 contract shall not be deemed a
waiver of such breach. In addition to all other remedies provided in this contract, the District shall be entitled, to the extent permitted by
applicable law, to injunctive relief in case of the violation, or attempted or threatened violation, of any of the provisions of this contract,
or to a decree requiring performance of any of the provisions of this contract or to any other remedy legally allowed to the District.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | The District shall not have the right to accelerate future payment obligations of the Purchaser in the event of default under
this contract.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

SECTION 18. VENUE AND ATTORNEY FEES.

Venue of any action filed to enforce or interpret the provisions of this contract 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 contract,
the prevailing Party shall be entitled to reasonable attorney's fees in addition to any other relief allowed.

SECTION 19. COMPLIANCE WITH LAW.

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 contract are hereby expressly made subordinate and subject to such
compliance.

SECTION 20. HEADINGS.

The headings of sections and paragraphs of this contract 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 21. ENTIRE AGREEMENT; MODIFICATION; CONFLICT IN PRECEDENCE.

This contract does not modify the terms and conditions contained in the 1956 and 1959 Contracts
except as provided in Sections 1(b) and 7. This contract constitutes the entire agreement between the Parties with respect to the
subject matter of this contract, and supersedes all previous communications between the Parties, either
verbal or written, with respect to such subject matter. No modifications of this contract shall be binding upon the Parties unless
such modifications are in writing signed by each Party. To the extent there are any conflicting provisions between this contract and
the 1956 Contract, or this contract and the 1959 Contract after November 1, 2009, the
terms and conditions in this contract shall take precedence and be controlling and the 1956 and 1959 Contracts are hereby amended accordingly.

SECTION 22. NO PARTNERSHIP OR THIRD PARTY RIGHTS.

|(a) | This contract 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. Without limiting the foregoing, the Purchaser shall not be liable for,
and the District hereby releases the Purchaser from, the payment of Debt except as provided in Sections 5 and 6.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

SECTION 23. PURCHASERS' COMMITTEE; ARBITRATION.

|(a) | There is hereby established a Purchasers' committee (the "Committee"). Each
Purchaser may appoint one representative (and one alternate) as a Committee member to attend Committee meetings. The members of
the Committee shall elect a chair, and may adopt such rules for the conduct of business as it deems appropriate. Meetings between
the District and Purchasers shall be held routinely, but not more frequently than once a quarter, provided, however, that such
meetings may be held more frequently than once each quarter at the request of the District or upon the request of members of the
Committee whose Purchaser Revenue Allocations total 66% or more. All meetings between the District and Purchaser will be held in
Grant County, Washington, unless the District and the Purchasers agree to another location.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In addition to other matters subject to arbitration pursuant to other provisions of this contract, if approved by members of the
Committee whose Purchaser Revenue Allocations total 66% or more, the Committee may submit to binding arbitration the following
issues:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(1) | Have the Estimated District Loads been forecast in accordance with Prudent Utility Practice and, if not, what is the appropriate
Estimated District Loads in accordance with Prudent Utility Practice for the Contract Year?
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Have the Annual Power Costs been determined by the District in accordance with Prudent Utility Practice and have such costs been
incurred for the benefit of Priest Rapids Project Output and, if not, what are the appropriate Annual Power Costs in accordance with Prudent Utility Practice for the Contract
Year; provided that nothing in this Section shall be interpreted to limit the ability of the District to meet its payment obligations
under a Bond Resolution?
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | What modifications to this contract, pursuant to Section 3(h), are necessary to comply with FERC or court orders and to preserve
the basic benefits and obligations of the Parties?
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Has the Purchaser violated the covenants in Section 7(e)?
|--- | ---------------------------------------------------------

|(5) | Are the annual proceeds from the sales of the Reasonable Portion pursuant to Multi-Year Contracts proportional to the annual
market price of power, as forecast at the time the Multi-Year Contracts were agreed to by the District, and if not, what
adjustments are necessary to the payments to Purchaser pursuant to Section 4(e) to reflect such forecast annual market price of
power for sales made pursuant to such Multi-Year Contracts?
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The board of arbitrators shall be composed of three persons, one of whom shall be appointed by the District, one of whom shall
be appointed by majority vote of the Committee, and the third person to be appointed by the two persons so appointed. The District
and the Committee shall appoint their arbitrator within 15 days after notification of the Committee's vote to submit a matter to
binding arbitration. In the event the two members cannot agree upon the appointment of a third person within 10 days, then such
third person shall be appointed by the presiding judge of the Superior Court of Kittitas County, Washington. The arbitration shall be
conducted jointly by the participating Purchasers, and under rules as may be determined by the arbitrators; provided, however, that
all parties shall be afforded discovery consistent with the Federal Rules of Civil Procedure; and, provided further, if the
arbitrators do not unanimously agree on the rules governing the arbitration, the arbitration shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration Association. The board so designated shall conduct a hearing within 30 days of completion of their selection, and within 15 days
after the hearing (unless such time is extended by agreement of the Parties) shall notify the Parties of their decision in writing,
stating the reasons therefore and separately listing their findings of fact, conclusions of law and order. Insofar as the Parties
hereto may legally do so, they agree to abide by the decision of the board. All factual determinations made by the board shall be
conclusive and binding on the Parties and not subject to judicial review. Any conclusions of law made by the board shall be subject
to review by a court specified in Section 23; provided, that the order issued by the board shall be effective unless and until a
stay is issued by the board or such court suspends the effectiveness of the order.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 24. 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 contract 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 contract 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 25. COUNTERPARTS.

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

| | PUBLIC UTILITY DISTRICT NO. 2
OF GRANT COUNTY, WASHINGTON
| | ---------------------------------------------------------

| | By:
| | ---

| | Mike Conley
| | -----------

|(SEAL) | President, Board of Commissioners
|------ | ---------------------------------

| | ATTEST:
| | -------

---

| | Thomas W. Flint
| | ---------------

| | Secretary, Board of Commissioners
| | ---------------------------------

| | Date:
| | -----

| | PUGET SOUND ENERGY, INC.
| | ------------------------

| | By:
| | ---

| | William A. Gaines
| | -----------------

|(SEAL) | Title:  Vice President, Energy Supply
|------ | -------------------------------------

EXHIBIT A

DEFINITIONS
OF PRIEST RAPIDS DEVELOPMENT
AND WANAPUM DEVELOPMENT

RESOLUTION NO.
390 - DEFINITION OF PRIEST RAPIDS DEVELOPMENT

| | Section
2(f) of Exhibit 1.Priest Rapids Development shall mean those
properties and facilities consisting of the Priest Rapids dam, site, reservoir,
switchyard and power plant, including all generating facilities associated
therewith up to and including the first ten (10) main turbine generator units
each with a nameplate rating of approximately 78,850 kilowatts and any
additional generating facilities which may be installed as provided for in
Section 19 of the Original Power Sales Contract, together with the associated
transmission facilities consisting of two 230 KV transmission lines and terminal
facilities interconnecting the Priest Rapids switchyard and the Bonneville Power
Administrations Midway Substation and an undivided one-half (1/2)
interest in the interconnecting facilities between the Priest Rapids switchyard
and the Wanapum switchyard.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

RESOLUTION NO.
474 - DEFINITION OF WANAPUM DEVELOPMENT

| | Section
2.2. The District specifies and adopts the plan and system hereinafter set
forth for the acquisition, by purchase or condemnation and construction of the
following generation and transmission facilities as a separate utility system of
the District constituting the Wanapum Development of the District, to wit:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|A. | The District shall construct an e1ectric generating plant and associated
facilities on the Columbia River at approximately river mile 415 from the mouth
of said river at the Wanapum site on said river, in Grant and Kittitas Counties,
Washington, as authorized by the Federal Power Commission License for Project
No. 2114, originally issued November 4, 1955, and all amendments thereto; said
generating plant to have an installed nameplate rating of approximately 831,250
kilowatts, and said generating plant and associated facilities to include, but
not limited to, a concrete gravity dam, a fully enclosed reinforced concrete
powerhouse containing ten (10) turbo-generating units with provisions in the
intake structure for the installation of six (6) additional turbo-generating
units, a reservoir, waterways, fish ladders and other fish protective devices;
provisions for future installation of navigation locks; transforming facilities;
a switchyard; transmission facilities necessary to connect the powerhouse to
the existing transmission facilities of the Priest Rapids Development and to the
transmission facilities of the Bonneville Power Administration in the vicinity
of said Project; railroad siding, shops, warehouses, construction camp, offices,
and dwellings; and all other structures, fixtures, equipment or facilities used
or useful in the construction, maintenance and operation of the Wanapum
Development and all necessary water rights, development rights, permits and
licenses, easements, rights-of-way, flowage rights and rights permitting the
storage of water, riparian rights and shore rights.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Exhibit B 
Grant County PUD
Service Area

AMENDMENT NO. 1 TO THE

PRIEST RAPIDS PROJECT REASONABLE PORTION
POWER SALES CONTRACT

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 Priest Rapids Project Reasonable Power Sales Contract dated December 13, 2001 (the
Product Contract). Unless otherwise defined herein, all capitalized
terms defined in the Reasonable Portion Contract 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 Reasonable Portion Contract.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.
|--

| | Amendments to Provisions of the Product Contract
Purchaser and the District agree that the Product Contract is hereby amended as follows:
| | -----------------------------------------------------------------------------------------------------------------------------------------

|2.1 | The definition of the term Priest Rapids Project Output set forth in Section 2 is deleted in its entirety and
               replace with the following:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | Priest
Rapids Project Output shall mean the amount of capacity, energy (both firm
and non-firm), pondage, reactive power, ancillary services (including dynamic
load following services) and any other product from the Priest Rapids
Development from November 1, 2005 to November 1, 2009 and from the Priest Rapids
Project from November 1, 2009 through the term of this contract under the
operating conditions which exist during the term, including periods when the
Priest Rapid Project may be wholly or partially inoperable for any
reason, after correction for encroachment, Canadian entitlement, station and
project use, and depletions required by the FERC License or other regulatory
requirements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 | Section 4(c)(4) is amended by adding the following sentence after the last sentence thereof:
|--- | --------------------------------------------------------------------------------------------

| | After the District has acquired capacity and energy as needed to serve its Estimated Unmet District Load, the District shall not
subsequently substitute therefore more costly capacity and energy, in order to provide the less costly capacity and energy to other
wholesale or retail power customers of the District.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3 | Section 7(h) is deleted in its entirety and replaced with the following:
|--- | ------------------------------------------------------------------------

| | In
the event that the District believes that the Purchaser has violated any of the
above covenants of Section 7(f) or (g), the District may by written notice to
the Purchaser describe the alleged violation in reasonable detail and give the
Purchaser no less than 4 business days after receipt of such written notice by
Purchaser within which to cease the activity in question or to provide to the
District a written explanation as to why the Purchaser believes the activity
does not constitute a violation of any of the aforementioned covenants. If the
Purchaser does not cure the alleged default and the District continues to
reasonably consider the action to be in breach of the covenants, the District
shall have the right to terminate this contract, effective immediately upon
written notice to the Purchaser, without any liability or further obligation on
the part of the District. In the event of such termination, the District shall
have the right to use or sell, in any manner the District determines, the Purchaser
Revenue Allocation the Purchaser would have been otherwise entitled to under
this contract.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.4 | The Reasonable Portion Contract is amended by adding a new Exhibit C, 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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|PurchaserPUGET SOUND ENERGY, INC. | PUBLIC UTILITY DISTRICT NO. 2 OF
GRANT COUNTY, WASHINGTON
|--------------------------------- | ---------------------------------------------------------

|By: |  | By:
|--- |  | ---

|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:
| | ---

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