December 28,2010 VIA ELECTRONIC FILING Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426

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"Your Northwest Renewables Utility Invites You to be a Conservation Sensation " December 28,2010 VIA ELECTRONIC FILING Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426 Re: Snohomish County PUD No. 1 Tidal Energy Project Progress Report #1 Admiralty Inlet Tidal Energy Project (P- 12690-004) Deception Pass Tidal Energy Project (P- 12687-003) Dear Ms. Bose: On July 8,2010 and August 4,2010, Public Utility District No. 1 of Snohomish County (Snohomish) was issued preliminary permits for the Admiralty Inlet, P- 12690-004, and Deception Pass, P- 12687-003, sites respectively. PROJECT ACTIVITY Licensing of the Admiralty Inlet Pilot Project On December 28,2009, Snohomish filed a Draft License Application for the Admiralty Inlet Pilot Project (P-12690), as well as a request to waive certain requirements of the Integrated Licensing Process and other associated documents consistent with the FERC Hydrokinetic Pilot Project Licensing Process. On April 12,2010, FERC conducted a Technical Conference to discuss information and monitoring needs for the Admiralty Inlet Pilot Project, aimed at identifying remaining information gaps. On June 30, 2010, the District informed the Commission that, through recent facilitated discussions, Snohomish and other parties had resolved many of the outstanding disputes related to the Admiralty Inlet Pilot Project, and the parties were continuing to collaborate to complete the remaining tasks necessary for issuance of a FERC license and associated permits and authorizations. On August 6,2010, FERC sent Snohomish a request for additional information (AIR) on the Admiralty Inlet Draft License Application. On September 24,2010, Snohomish submitted a request for a revision to the schedule for responding to the AIR. On September 29, 2010, FERC granted the requested schedule revision. A second Technical Conference was conducted via teleconference by FERC on November 15, 2010, to address several AIR-related questions and agree on appropriate information necessary to address key interests. Snohomish has continued to engage resource agencies, tribes, and other stakeholders as it gathers the information requested by the AIR and required for the Final License Application and associated federal, state, and local permits and authorizations.

Page 2 of 4 12/29/20 10 Consultation and Outreach During the past six month period Snohomish has continued contact with numerous federal, state, and local agencies and governments, tribal representatives, and other interested stakeholders. In addition to informal email and telephone exchanges, these contacts have included: Conducted a consultation meetinglteleconference with numerous federal and state agencies and tribal governments to discuss Admiralty Inlet Tidal Energy Pilot Project study plans on July 19, 201 0, in Lacey, WA; and tribal govemments to discuss Admiralty Inlet Tidal Energy Pilot Project study plans on July 30,201 0; Provided a tidal project overview and update at the Public Power Council member's forum on August 4,2010, in Portland, OR; Conducted a consultation meetinglteleconference with numerous federal and state agencies and tribal govemments to discuss Admiralty Inlet Tidal Energy Pilot Project study plans on August 5,2010, in Lacey, WA; Conducted a consultation meeting.teleconference with numerous federal and state agencies to discuss Admiralty Inlet Tidal Energy Pilot Project study plans on August 25,2010, in Lacey, WA; Conducted a consultation meeting with the U.S. Coast Guard to discuss Regulated Navigation Area proposal on September 27,2010, in Lynnwood, WA; Provided a project overview presentation at the Ocean Energy Pacific Conference on September 29,2010, in Portland, OR; Conducted a consultation teleconference with National Marine Fisheries Service on October 1,2010, to discuss marine mammal monitoring plans and requirements; Conducted a consultation meeting with Seattle Pacific University, Ebey Landing Trust Board, and National Park Service on October 8,2010, in Coupeville, WA; and tribal govemments to discuss Admiralty Inlet Tidal Energy Pilot Project study plans on October 20,201 0; and tribal governments to discuss Admiralty Inlet Tidal Energy Pilot Project study plans on November 17,201 0; A meeting was held with the University of Washington and National Marine Fisheries Service on November 18,2010, in Seattle, WA to discuss the Near Turbine Monitoring plan; Conducted a consultation meeting with WA state agencies, Island County Planning, and the WA Governor's office of regulatory assistance on December 7, 2010, in Bellevue, WA to discuss coordination between federal, state and local permitting processes; Conducted a consultation meeting with the U.S. Coast Guard, the University of Washington, Sound & Sea Technology, the American Waterways Operators, and Western Towboat to discuss project navigational safety considerations on December 16, 2010, in Seattle, WA; 2320 California Street I PO Box 11 07 ( Everett WA 98206-1 107 425.783.1000 1 Toll-free in Western Washington at 1.877.783.1000 1 www.snopud.com

Page 3 of 4 12/29/2010 and tribal governments on December 20,2010, to discuss Admiralty Inlet Tidal Energy Pilot Project Final License Application elements and agency review of the draft Biological Assessment. Project Studies and Site Investigation During the past six month period the following project related work has been conducted: Remotely operated vehicle (ROV) surveys of the Admiralty Inlet turbine deployment site and subsea cable run were conducted in August and September 2010. These surveys supported both technical project design activities as well as the development of a detailed aquatic species habitat map for the project area. ROV Video: University of Washington "Sea Spider" and image of seabed During August 17-18 and November 8-10,201 0, the University of Washington retrieved, re-fitted, and redeployed two "sea spider" instrumentation pods in Admiralty Inlet. These efforts have now resulted in over one and a half years of observations within the Admiralty Inlet project area. The data collected have enabled assessments of seasonal variations in currents, noise, water quality, and marine mammal echolocation activity. 2320 California Street I PO Box 11 07 1 Everett WA 98206-1 107 425.783.1000 ( Toll-free in Western Washington at 1.877.783.1000 1 www.snovud.com

Page 4 of 4 OpenHydro completed a preliminary subsea cable plan for interconnecting the two turbines with each other and to the subsea cable leading to shore. A construction planning meeting was held on November 30,2010, in Everett, WA with OpenHydro, the Snohomish engineering team, and project marine engineering consultants. Continued development and refinement of proposed project operations monitoring studies. Acoustic monitoring data fiom the OpenHydro installation at the European Marine Energy Center has been provided to the University of Washington. Researchers will utilize this data to estimate the acoustic signature of the Project in Admiralty Inlet. Please contact me if you have any questions regarding this report, or if you require any additional information regarding the Snohomish Tidal Energy projects. Sincerely, Craig W. Collar, P.E. Senior Manager, Energy Resource Development Snohomish County PUD No. 1 2320 California Street I PO Box 1107 1 Everett WA 98206-1 107 425.783.1000 ( Toll-free in Western Washington at 1.877.783.1000 1 www.snovud.com

CERTIFICATE OF SERVICE I hereby certify that I have this day served via e-mail or via the U.S. Postal Service a copy of the foregoing filing upon each person designated on the official service list compiled by the Secretary in this proceeding in accordance with Rule 2010 of the Rules of Practice and Procedure of the Federal Energy Regulatory Commission. Dated at Everett, Washington, this 2gth day of December, 2010. Ray Finnen, Senior Paralegal Public Utility District No. 1 of Snohomish County PO Box 1 107 / Everett WA 98206-1 107 Phone: 425.783.8262 1 Dept Fax: 425.783.8305 E-mail: rffinnen@,snopud.com

Service List for Admiralty Inlet Tidal Energy Project (P-12690-000-004) and Deception Pass Tidal Energy Project (P-12687-003) Joseph Brogan, Esq. Foster Pepper & Shefelman 1 1 1 1-3rd Ave, Suite 3400 Seattle, WA 98 10 1 E-mail: brogi@,foster.com Alicia Bishop National Marine Fisheries Service 120 1 NE Lloyd Blvd. Portland, OR 97232 E-mail: alicia.bishop@,noaa.gov Matthew Love Van Ness Feldman, PC 821 Second Avenue, Suite 2000 Seattle, WA 98 104-1 5 19 E-mail: mal@,vnf.com Daryl Brent Williams Environmental Liaison Tulalip Tribes of Washmgton 6406 Marine Drive Tulalip, WA 9827 1 E-mail: dwilliams@,tulali~tribesnsn.gov Karolyn Klohe, AAG PO Box 40100-0 100 E-mail: KAROLYNK@ata.wa.gov Jonathan Olds Environmental Program Manager Washington State Ferries 2901 3rd Avenue, Suite 500 Seattle, WA98121-1012 E-mail: oldsi@wsdot.wa.nov Joan Marchioro, Senior Counsel PO Box40117 E-mail: JoanM2Glatg. wa.gov Christopher Fontecchio, Esq. NOAA 7600 Sand Point Way NE Seattle, WA 98 1 15 E-mail: chris.fontecchio@noaa.gov Keith Kirkendall NOAA 1201 NE Lloyd Blvd, Suite 1100 Portland, OR 97232 E-mail: keith.kirkendall@noaa.gov Stan Walsh, Hydropower Biologist Skagit System Cooperative 53 18 Chief Brown Lane Darrington, WA 9824 1 E-mail: swalsh@skagitcoov.org Kaye Nealy Morisset, Schlosser& Jozwiak 80 1 2"d Ave., Suite 1 1 15 Seattle, WA 98 104 E-mail: k.nealv@,msai.com Mark Lyon, AAG PO Box 401 13-0 1 13 E-mail: mark11 @at,,atg.wa.gov Bill Frymire, Senior Counsel PO Box 40100 E-mail: billf@atg.wa.gov Terry Pruit, AAG PO Box 40 100 E-mail: terrvp@,atg.wa.gov Scott J. Carlon National Marine Fisheries Service 1201 NE Lloyd Blvd., Suite 1100 Portland, OR 97232 E-mail: scott.carlon@,noaa.~ov Jane S Hannuksela, Esq. NOAA/NMFS, NOAA GCNW, Bldg. 1 7600 Sand Point Way, N.E. Seattle, WA 98 1 15 E-mail: Jane.Hannuksela@,noaa.gov A. Reid Allison, Attorney Tulalip Tribes of Washington 6406 Marine Drive Tulalip, WA 9827 1 E-mail: rallison@,tulalivtribes-nsn.gov David Hawkins Tribal Attorney 25944 Community Plaza Way Sedro-Woolley, WA 98284 E-mail: dhawkins@,uvverskagit.com Lisa Savoia, Legal Assistant Transportation/Construction POBox40113 E-mail: lisas6@,atg.wa.gov Gary R. Sprague Major Projects Section Manager 600 Capitol Way N Olympia, WA 98501-109 1 E-mail: spraggrs@,dfw.wa.gov Elizabeth Ellis, Planner WA State Dept. of Natural Resources PO Box 47027 E-mail: elizabeth.ellis@dnr.wa.gov Michael Ferguson, AAG PO Box 40100 E-mail: MichaelF2@,atg.wa.rzov Steve Erickson Whidbey Environmental Action Network, PO Box 53 Langley, WA 98260 E-mail: wean@whdbev.net Alison Agness National Marine Fisheries Service 7600 Sand Point Way NE Seattle, WA 98 1 15 E-mail: Alison.Agness@,noaa.gov DM-DOCS #61792 12/29/20 10

Timothy V. Romanski Mark Albert Hunter Rebekah Padgett Fish and Wildlife Biologist Major Projects Section Manager WA Department of Ecology Fish & Wildlife Service, Region 1 WA Department of Fish & Wildlife 3190 160th Ave SE 510 Desmond Drive SE 600 Capitol Way N Bellevue, WA 98008 Lacey, WA 98503 Olympia, WA 98501 E-mail: Rvad46 1 @,ecv.wa.gov E-mail: Tim Romanski@fws.gov, E-mail: huntemah@,dfiv.wa.gov Zelma Zieman, Regional Lead Office of Regulatory Assistance 3 190 160th Avenue SE Bellevue, WA 98008-5452 E-mail: zelma.zieman@,ora.wa.gov Robert McCaw Government Affairs Associate The American Waterways Operators 801 North Quincy Street, Suite 200 Arlington, VA 22203 E-mail: rmccaw@,vesselalliance.com Brady Scott, Aquatic District Manager Washington State DNR 53 10 Eaglemount Road Chimacum, WA 98325 E-mail: brady.scott@,dnr.wa.gov Thomas O'Keefe PNW Stewartship Director 3537 NE Street Seattle, WA 98 10 1 E-mail: okeefe@amwhitewater.org Steve Reneaud, AAG WA Office of the Attorney General PO Box 40 100-0 100 E-mail: resolyef@,at~.wa.gov Melvin Sheldon, Chairman Tulalip Tribes of Washington 6700 Totem Beach Road Tulalip, WA 98271 brogi@,foster.com; chris.fontecchio@noaa.gov; scott.carlon@,noaa.gov; alicia.bishop@noaa.aov; keith.kirkendall@noaa.gov; Jane.Hannuksela@,noaa.gov; mal@,vnf.com; swalsh@,skagitcoop.org; rallison@,tulaliptribesnsn.gov; dwilliams@,tulaliptribes-nsn.gov; k.nealv@,msai.com; dhawkins@upperskagit.com; KAROLYNK@,atg.wa.gov; markll@atg.wa.gov; lisas6@,atg.wa.aov; oldsi@wsdot.wa.gov; billf@,atg.wa.gov; spra~grs@dfw.wa.gov; JoanM2@,atg.wa.gov; ternirp@,ata.wa.gov; elizabeth.ellis@,dnr.wa.gov; MichaelF2@atg.wa.gov; wean@,whidbev.net; Alison.Agness@noaa.gov; Tim Romanski@,fws.gov; huntemah@dfw.wa.gov; Rpad461@,ecy.wa.gov; zelma.zieman@,ora.wa.gov; brady.scott@dnr.wa.gov; resolyef@,atg.wa.gov; rmccaw@,vesselalliance.com; okeefe@arnwhitewater.org DM-DOCS #61792 12/29/20 10