Powering our way of life.

Operate Responsibly by Attaining Environmental, Cultural Resource and Regulatory Compliance

Fish and Wildlife Quarterly Business Report

Grant PUD Commission MeetingJune 9, 2020

Purpose & Goal The Fish and Wildlife Business Unit uses technology, innovation, strategic thinking, good stakeholder relations and skilled negotiations to ensure we are achieving compliance with our Natural Resources regulatory requirements in a safe, cost efficient and biologically sound manner while helping to maintain the long-term financial health of the District.

2020 Safety Cultural No Recordable Incidents;

Job Site Reviews (N=15; Currently at 65.2%) Goal = 15%; Stretch Goal = 25%

Overall Safety Meeting Attendance = 100%;

Updated Job Hazard Assessments

Priest Rapids Hatchery Safety Fixes (Q2-Q3) Priest Rapids Hatchery

Covid-19 Site Specific Work Plans Priest Rapids Hatchery Off Ladder Adult Fish Trap Video Fish Counting Vegetation Mgmt. Fish Predator Control/USDA Angling Water Quality Juvenile White Sturgeon Release

2020 Compliance Review• File 22 annual reports and plans with various agencies;

• Progress & Implementation Report (8 Combined)• Aquatic Invasive Species Control & Prevention• Bull trout report and 10 year review• White Sturgeon annual report• Pacific Lamprey annual report• Northern Wormwood Conservation Plan• Gas Abatement Plan• Transmission Line Collision Protection• Bald Eagle Perching/Roosting Protection Plan• Wildlife Habitat Monitoring, Info & education• Native Resident Fish • Fish Spill and total dissolved gas report• USFWS Annual Recovery report• USFWS Annual – Special Use Permit

• File 12 reports related to mitigation sites;

• Boundary Adjustment for Nason Creek Acclimation Facility with FERC;

2020 Fish and Wildlife Budget Fish & Wildlife Business Unit - Allocated Resources

Fish & Wildlife Staff 17 Full-Time Regulars (FTRs)11.0 Full-Time Equivalents (FTEs)

Fish and Wildlife Manager (2 FTR) 1.0 FTEs

Hatchery & Habitat (7 FTRs) 3.0 FTEs

Anadromous & Resident Fish (5 FTRs) 7.0 FTEs

Wildlife/Botanical (3 FTRs)

Budget Operation & Maintenance = $12,693,611 Capital (Directs) = $ 1,519,769 Labor (non-benefit adjusted) = $ 3,377,095*

2020 Budget $17,590,475

* Includes Salaries & Wages, other labor and benefits/overheads

Operations and Maintenance = 72.2%

Labor = 19.2%

Cap = 8.6%

2020 Budget Review – Allocated Budget

Category Budget Actuals ($)For Month Ending

(4/30/2020)

Year-End Projection

($)

Year-End Projection

(%)

O&M $12,693,611 $818,467 $12,580,000 99.1%

Capital $1,519,769 $38,546 $1,426,837 93.9%

Labor $3,377,095 $864,151 $3,014,477 89.3%

Total $17,590,475 $1,721,164 $17,021,314 96.7%

Budget and Actuals came from the Finance report:https://reports.gcpud.org/Reports/powerbi/Finance%20Reports/Budget%20vs%20Actual%20Reports

Covid-19 - Essential Business Hatchery Production

Priest Rapids Hatchery (GPUD) Carlton & Nason Acclimation Facilities (GPUD) Eastbank Hatchery (CPUD) Wells & Methow Hatchery (DPUD) Penticton (ONA) Chief Joseph (CCT) St Mary’s Acclimation (CCT) Marian Drain (YN)

Anadromous & Resident Fish Passage

Video Fish Counting

Hanford Reach Operations

Juvenile Salmonid Passage

Vegetation Mgmt.

Compliance Reporting & Consultation

White Sturgeon Broodstock

2020 Tier 1 - Business ActivitiesCarlton Acclimation Intake Structure

Issue: Methow River migrating away from water intake.

Alternatives Analysis Completed 5 different Options ($1.2 – $5.3 Million) Estimates DID NOT include Mitigation Costs or Internal Labor Install additional Production/Domestic well

Lower cost alternative (Current Approved Capital =$670,000)

In Progress Development of technical specifications; Permitting; Contract development; Target date for contract award – Mid-July, 2020; Target completion date – Project Close out October, 2020.

2020 Tier 1 – Hanford ReachOperational Plan for Implementation of the Hanford

Reach Fall Chinook Protection Agreement

Issue: Formal operating protocols need to be developed to replace procedures that had been implemented through Mid-C Hourly Coordination with the Utility Parties.

In Progress

Working to development a joint operating plan.

2020 Tier 1 – Priest Rapids HatcheryDevelop financial and strength, weakness, opportunities and

threat analysis (SWOT) for the operation of the Priest Rapids Hatchery.

Completed

Financial analysis completed and reviewed by internal stakeholders; SWOT analysis; Information presented to CXO’s and CEO/General Manager (January 2020);

In Progress

FW staff responding to additional information request; Exploring contracting mechanisms with USCOE; January 2020 meeting with CXO’s & CEO/GM; June 16, 2020 meeting scheduled with CXO’s & CEO/GM.

2020 Tier 1 - Business Activities Rehabilitation of Wells at Priest Rapids Hatchery.

Issue: Three of the eight wells were inoperable during a majority of the timeframe when the Priest Rapids Reservoir was operated at lower elevations for Priest Rapids Spillway work/evaluation.

White River Spring Chinook Program

Vegetation Management

Survival Evaluations scheduled for 2025, 2026 & 2027

Avian Predation in the Columbia River Plateau

Northern Wormwood Conservation Plan

Predator Removal Program

2020 Tier 2 - Business Activities

2020 Business ActivitiesTumwater Dam

Tumwater Dam Fish Weir (Owned by Chelan PUD)

Interlocal Cooperative Agreement (ICA) in place that allows GPUD to utilize the Tumwater weir to collect adult broodstock for GPUD hatchery programs in the Wenatchee River Basin (summer Chinook and Nason Creek spring Chinook).

The ICA specifically defines the specific cost allocations to each PUD depending on the type of activity and/or reactive repair (GPUD’s share is = 36%).

Chelan PUD staff identified erosion and undercutting on the lowermost section of the fishway adjacent to Tumwater dam.

CPUD has indicated that the preliminary estimated is ~$550,000. Of which GPUD would be responsible for $198,000 (36%).

Powering our way of life.

Quarter 2 Commission Update 6/9/20

Powering our way of life.

Power Production:Cultural Resources

2020 Q1 Business Review

Major Projects & Work Activities

• We completed the Memorandum of Agreement with our stakeholder group for the Priest Rapids Right Embankment project and initiated a Social Impact Assessment of the potential effects of the Priest Rapids Right Bank Project on the WanapumIndian Village.

• We submitted our first annual report to the Cultural Resources Working Group; There are no anticipated issues.

Cultural Resources Safety Status

Quarter 1 was completed without any safety incidents or close calls.

Three safety monitors were added in order to respond to the right bank construction project.

Safety meeting attendance was 100% in Q1.

2020 Q2 Budget Data

Category Budget

Actuals ($) for Month

Ended 04/30/2020

Year-End Projection

($)

Year-End Projection

(%)CAP $9,999 $247 $250 3%

O&M $1,287,126 $242,943 $1,253,256 97%Labor $2,698,677 $714,887 $2,321,690 86%Total $3,995,802 $958,077 $3,575,196 89%

2020 Q2/3 Forecast

• Continuation of effects mitigation plan in consultation with our Tribal, Federal and State stakeholders.

-Mitigation discussions will begin in Q3

• Continuation of Priest Rapids Right Embankment work-Focus is on meeting the MOA details-Completion of a Social Impact Assessment is resulting in our working directly with the Wanapum to address issues that may arise. Anticipated issues are related to dust abatement, sound etc.

2020 Q2/3 Forecast

Use of Allocated Resources

• Staffing – No staffing changes anticipated

2020 Forecast

Potential Management Challenges

• Continued discussions with Tribal groups, state and federal agencies regarding mitigation of project-related adverse effects to project-wide cultural resources.

- We are in the information gathering stage for our mitigation activities and will have a better understanding of potential mitigation later in Q3.

8

Questions ??

Powering our way of life.

June 9, 2020

Strategic Plan Metrics2020 Q1

Objective 1 – Safety PerformanceZero Recordable Incident Rate

2020 Target 2020 Q10 3.0

• 4 Recordables Total 2020 to date • 1 Lost Time • 2 Restricted Duty• 1 Recordable Injury

Changing the Culture• 95% Safety Meeting attendance Jan

and Feb• 87% attendance in March• Moved safety meetings to online

format

3.83.5

2.6

2.93.4

3.12.9 3.0 3.0

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Recordable Injury Rate12-Month Rolling

Objective 2 – Design and Sustain an Engaging and Fulfilling Grant PUD Culture

Organizational Health Index2020 Target Current Status

≥ 75 42

Employee Engagement Assessment

2020 Target Current StatusTo Be Determined Launch this Fall

• Scored in 2019• Scored every two years, next cycle in 2021• Target is top quartile based on McKinsey’s Organizational Health Index

• Slated for launch in fall timeframe• Will use the Gallup Q12 Employee Engagement Instrument

Objective 2 – Design and Sustain an Engaging and Fulfilling Grant PUD CultureEducational Reimbursement

Target2020 Target Current Status

To Be Determined To Be Determined

Training Effectiveness Assessment

2020 Target Current StatusTo Be Determined To Be Determined

• In development phase, undergoing Executive Team review• Requires Commission action on revised educational reimbursement program

• Anticipated target of 4/5 on an internally developed rating scale• Rating will identify the employees’ perception of a training’s overall effectiveness

Objective 3 – Maintain a Strong Financial PositionElectric System Liquidity

2020 Target 2020 Year End Projection≥ $105 MM $163 MM

• Liquidity reduced after financial optimization

• Year-end projection represents value of 456 days cash on hand

159

215 226258

193 189 209 205

163

0

50

100

150

200

250

300

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Electric System Liquidity

Objective 3 – Maintain a Strong Financial PositionConsolidated Return

on Net Assets2020 Target 2020 Year End Projection

≥ 4.0% 3.0%

• This year, target increases to ≥ 4.0% from ≥ 3.8%

• Net plant anticipated to grow by > $51M this year

• Interest and Other Income down• Anticipate some Labor expense

moving from Capital to O&M2.42.9 2.9

4.3

3.3 3.5 3.7 4.0

3.0

0.00.51.01.52.02.53.03.54.04.55.0

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Consolidated Return on Net Assets (%)

Objective 3 – Maintain a Strong Financial PositionConsolidated

Debt to Plant Ratio2020 Target 2020 Year End Projection

≤ 60% 52%

• Target declined from ≤ 62%to ≤ 60%• Ratio declined after financial

optimization in January and additional debt refunding in March

• Based on book value; Ratio based on estimated fair market value is 39%

6161 62 62

60 59 5958

52

45

50

55

60

65

70

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Consolidated Debt to Plant Ratio (%)

Objective 3 – Maintain a Strong Financial PositionAdjusted ConsolidatedDebt Service Coverage

2020 Target 2020 Year End Projection≥ 1.8 x 2.2 x

• Annual adjusted debt service requirement has fallen ~ $8M from 2019

• Anticipate slightly lower net income and interest/other income

1.8 1.82.0

2.12.0 1.9 2.1 2.2 2.2

0.0

0.5

1.0

1.5

2.0

2.5

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Consolidated Debt Service Coverage

Objective 4 – Provide Long Term Low RatesRetail Operating Ratio -

Adjusted2020 Target 2020 Year End Projection

≤ 112% 108%

• Target fell to ≤ 112% from ≤ 113%• Calculated as total retail expenditures

divided by total retail revenue• Retail revenues and expenditures both

down, ratio stable109

111 111 109106 107 109 109 108

90

95

100

105

110

115

120

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Retail Operating Ratio %

Objective 4 – Provide Long Term Low Rates

Peer Group of Excellence Retail Rate Index

2020 Target Current StatusTo Be Determined To Be Determined

• In development phase

Objective 4 – Provide Long Term Low RatesDistrict Credit Rating

2020 Target 2020 Year End Projection≥ Aa3 Aa3

System Moody’s S&P FitchElectric Aa3 AA+ AA

Outlook Stable Stable Stable

Effective Date 11/21/17 06/27/19 11/06/17

PRP Aa3 AA AAOutlook Stable Stable Stable

Effective Date 09/16/15 06/28/19 11/06/17

Items to our Favor: Ownership of competitive hydro generation, low rates, water and power price risks reduced by exchange contract, and favorable debt service coverage

Objective 5 – Outstanding Service to CustomersAverage System

Availability Index (ASAI)2020 Target 2020 through Q1≥ 99.985% 99.980%

• Delta from target is -0.005%• Month by month values

• Jan 99.957%• Feb 99.999%• Mar 99.983%

• 2018 Target was 99.97%

-0.025-0.020-0.015-0.010-0.0050.0000.0050.0100.0150.0200.0250.030

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

ASAI Compared to Target (%)

Objective 5 – Outstanding Service to CustomersCustomer Average

Interruption Index (CAIDI)2020 Target 2020 through Q1< 110 min 131 min

• Delta from target is 21 minutes• Month by month values

• Jan 149 min• Feb 150 min• Mar 101 min

• 2018 Target was 150 minutes• Top 3 known outage causes by

duration • Equipment damage 822k min• Equipment worn out 165k min• Vehicle accidents 55k min

-60-40-20

020406080

100120

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

CAIDI Compared to Target (min)

Objective 5 – Outstanding Service to CustomersPRP Availability

2020 Target 2020 through Q1Meet 12 of 12 Monthly Targets 3 of 3

-1

0

1

2

3

4

5

Jan Feb Mar

Project Availability Compared to Target (%)

-1012345

Jan Feb Mar

Wanapum vs. Target (%)

-1012345

Jan Feb Mar

Priest Rapids vs. Target (%)

Objective 6 – Operate Responsibly2020 Target 2020 through Q1

Financial Statement Audit Performance Unmodified Audit Opinion 2019 Audit Unmodified Opinion

2020 Audit TBD April 2021

WA State Audit Office Compliance Audit No Audit Findings TBD Sep – Nov Timeframe

FERC / NERC / WECCCompliance Performance No Findings No Findings

FERC and Regulatory Filings No Late Filings No Late Filings

Environmental and Cultural No Issues No Issues

Objective 7 – Develop a Sustainable Broadband Network

Achieve Planned Capital Build2020 Target 2020 through Q1

100% 91%

Average System Take Rate2019 Target 2020 through Q1

≥ 60.0% 58.9%

• Expansion capital year to date spend is 23% of budget• Routine capital year to date spend is 21% of budget

Participation by CommunityCoulee City 36.8% Grand Coulee 61.2% Quincy 55.0%

Desert Aire 76.8% Mardon 51.5% Royal City 64.5%

Electric City 58.8% Mattawa 71.6% Soap Lake 55.6%

Ephrata 72.8% Moses Lake 57.5% George-Burke 44.2%

• Up from take rate of 57.5% at end of 2019

2020 Strategic Plan Metrics – Q1 StatusObjective Strategic Plan Metrics 2020 Target 2020 through Q1

Objective 1 - Safety Performance Zero Recordables Incident Rate 0 3.0

Objective 2 – Design and Sustain an Engaging and Fulfilling Grant PUD Culture

Organizational Health Index ≥ 75 42

Employee Engagement Assessment TBD TBD

Educational Reimbursement Target TBD TBD

Training Effectiveness Assessment TBD TBD

Objective 3 – Maintain a Strong Financial Position

Electric System Liquidity ≥ $105 MM $163 MM

Consolidated Return on Net Assets ≥ 4.0% 3.0%

Consolidated Debt to Plant Ratio ≤ 60% 52%

Adjusted Debt Service Coverage ≥ 1.8 x 2.2 x

Objective 4 – Provide Long Term Low Rates

Retail Operating Ratio ≤ 112% 108%

Peer Group Retail Rate Index Coming Q2 2020 Coming Q2 2020

District Credit Rating ≥ Aa3 Aa3

Objective 5 – Outstanding Service to Customers

Average System Availability Index ≥ 99.985% 99.980%

Customer Average Interruption Index < 110 min 131 min

PRP Availability 12 of 12 Monthly Targets 3 of 3 Monthly Targets

Objective 6 – Operate Responsibly Operate Responsibly No Findings / No Late Filings

No Findings / No Late Filings

Objective 7 – Develop a Sustainable Broadband Network

Achieve Planned Capital Build 100% 22%

Average System Take Rate ≥ 60.0% 58.9%

Questions

Commission Presentation June 09, 2020

Andrew Munro, Sr. Mgr., Ext. Affairs & Communications

Chuck Allen, Supervisor, Public Affairs

Community Engagement Activity Report

Agenda• External Affairs & Communications – Structure & Personnel

• Introduction - Annette Lovitt, Public Affairs Officer - Community Relations

• WiFi Hotspots in Grant County

• Employee Association

• Artificial Intelligence (AI) for Earth Grant

• Pay it Forward

• Online Elementary Education & Library Programs

• Social Media Awareness Videos

• Facebook Metrics

• Fiber Marketing & Ag Outreach

• COVID-19 Info

Team

External Affairs and Communications

Andrew Munro Senior Manager

Cindy McClure Administrative

Assistant

Cliff Sears Senior Policy

Analyst

Government/ Regulatory Affairs

Jessie Allemand Policy

Administrator

Policy Management

Records Management

Beverly Peterson Records

Officer

Michelle Clark Records

Officer

Public Affairs

Chuck Allen Supervisor

Ryan Holterhoff Public Affairs

Officer

Christine Pratt Public Affairs

Officer

Lindsay Thompson Communications

Specialist

Structure & Personnel

Annette LovittPublic Affairs

Officer

Community OutreachIn times of COVID-19

WiFi Hotspots in Grant County

• ACH School District Brick House• Wilson Creek City Park• East Beach Park• Ephrata Recycling Center• Quincy Middle School• George Community Hall• Warden Community Center• Quincy Columbia Basin Irrigation District• Port of Mattawa Office

Employee AssociationHelping to coordinate Food Bank Dollar Drive through Grant PUD Employee Association to support local food banks.

Food Bank Dollar DriveDue to social distancing we are asking for money,

which will be distributed throughout our county.Each dollar we give can buy up to $3 in food

with the buying power of the food banks!

Three ways to give:

Call GRANCO and transfer money tothe PUD Employee Association account

______

Venmo @Grant-Empassoc______

Send a check toGrant PUD EAPO Box 1251

Ephrata, WA 98823

Artificial Intelligence (AI) for Earth GrantReceived a $15,000 credit from Microsoft Azure to develop an educational project based on Artificial Intelligence to help fish counters.

Pay it Forward money to food banks

Through Columbia Basin Foundation, $9,000 of Pay it Forward funds were allocated to county food banks.• Donations were earmarked for

funds to help families with school-aged children.

Educational outreachModifications to continue mission

Online Elementary Education & Library ProgramsModifying our online programs to teach electrical safety benefits of hydropower with our education partners.

Awareness videos

https://www.youtube.com/watch?v=yAgI2RdWPYA https://www.youtube.com/watch?v=c6nkNm-WAA8

Facebook Metrics

Facebook ComparisonGrant PUD is consistently at the top when it comes to “engagement” on Facebook

out of larger, regional utilities.

Marketing MessagesEmphasizing our mission

Fiber MarketingIn April 2020, we set a record of 486 new fiber subscribers and a take rate of 60 percent.

Ag Outreach

COVID-19 Info

Powering our way of life.