Should you require any further information concerning this matter, please contact Dawn Presler at (425) or

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SNOHOMISH COUNTY Your Northwest renewables utility invites you to be a Conservation Sensation. PUBLIC UTILITY DISTRICT NO. 1 September 9,2011 VIA E-FILING Ms. Kimberly Bose, Secretary Federal Energy Regulatory Commission 888 First Street N.E. Washington, D.C. 20426 Re: Calligan Creek Hydroelectric Project (FERC No. P-13948)- Notice of Intent, Request for Non-Federal Representative Designation and Request to Use Traditional Licensing Process Dear Secretary Bose: The Public Utility District No.1 of Snohomish County, Washington (District) is the preliminary permit holder of the Calligan Creek Hydroelectric Project, FERC No. P-13948. The current Project preliminary permit expires on April 30, 2014. Pursuant to 18 C.F.R. Part 5, the District hereby submits for filing a Notice of Intent for the purpose of securing an original license for a major unconstructed project - the Calligan Creek Hydroelectric Project, FERC Project No. P- 13948. Additionally, attached are the District's requests to use the Traditional Licensing Process and to be designated as the Commission's non-federal representative for certain agency consultation. Copies of the Notice of Intent, Request for Non-Federal Representative Designation and Request to Use the Traditional Licensing Process have been distributed to the appropriate federal, state, and interstate resource agencies, Indian tribes, local governments, and members of the public likely to be interested in the Proceeding, as provided in 18 C.F.R. 5.5(c) and 5.6(a). A compiled distribution list is attached hereto. Should you require any further information concerning this matter, please contact Dawn Presler at (425) 783-1709 or DJPresler@snopud.com.. Moore, P.E. Assistant General Manager of Generation, Water and Corporate Services Licensing Team Lead Phone: 425-783-8606 Email: KDMoore@snopud.com 2320 California Street Everett, WA 98201 / Mailing Address: P. O. Box 1107 Everett, WA 98206-1 107 425-783-1000. Toll-free in Western Washington at 1-877-783-1000 www.snopud.com

Notice ofintent Cover Letter, Page 2 Enclosed: NOI; TLP Request; Non-Fed Rep Request cc: Kelly Wolcott, FERC Service List and Mailing List (Distribution List)

UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Calligan Creek Hydroelectric Project Project No. P-13948 NOTICE OF INTENT TO FILE APPLICATION FOR ORIGINAL LICENSE Pursuant to 18 C.F.R. 5.5, Public Utility District No.1 of Snohomish County notifies the Federal Energy Regulatory Commission of its intention to file an Application for an Original License for the Calligan Creek Hydroelectric Project, Project No. P-13948. The following information is provided consistent with the requirements of 18 C.F.R. 5.5. The exact name and business address of the applicant is: Applicant's Name: Public Utility District No.1 of Snohomish County Address: 2320 California Street Everett, W A 98201 Project Number: The FERC Project No. is P-13948. Unequivocal Statement of Intent: Public Utility District No. 1 of Snohomish County intends to file an application for an original license for the Project utilizing the Commission's Traditional Licensing Process (TLP). A request to use the TLP is attached. Type of Principal Project Works to be Licensed: The proposed run-of-the-river project will consist of intake structure at river mile (RM) 1.9 of Calligan Creek, impounding an approximate 0.26 acre reservoir; an approximate 6,300 foot long buried penstock; a reinforced concrete powerhouse at RM 0.2; switching facilities connecting generation from the Project to the transmission system; and approximately 2.5 mile long transmission line. Location of the Project: State or Territory: County: Township or nearby town: Washington King North Bend The installed capacity of the project is: 6.0 MW

Names and Mailing Addresses of Entities Listed in 18 C.F.R. 5.5(b)(8): (a) The County in which the Project is located, and in which any Federal Facility that is used or to be used by the Project is located: County Name: Address: King County 516 Third Avenue Seattle, W A 98104 (b) Each city or town in which any part of the Project is located, and in which any Federal facility that is used or to be used by the Project is located. No Federal facilities will be used by this Project. The proposed Project is located wholly within King County and is not located within the boundaries of any city, town, or similar political subdivision. (c) Each city or town that has a population of 5,000 or more people and is located within 15 miles of the existing Project dams: City/Town Name: Address: City of Snoqualmie 8020 Railroad Ave. S.E. P.O. Box 987 Snoqualmie, W A 98065 City/Town Name: Address: City of North Bend 211 Main Ave. N. North Bend, W A 98045 (d) Each irrigation district, drainage district, or similar special purpose political subdivision in which any part of the Project is located, and in which any Federal facility that is used or to be used by the Project is located. None. (e) Each irrigation district, drainage district, or similar special purpose political subdivision that owns, operates, maintains, or uses any Project facility or any Federal facility that is or is proposed to be used by the Project. None. (f) Every other political subdivision in the general area of the Project that there is reason to believe would likely be interested in, or affected by, this notification. Notice ofintent, September 9, 2011 Page 2

None. (g) Affected Indian Tribes. Snoqualmie Tribe P.O. Box 969 8130 Railroad Ave. SE Snoqualmie, W A 98065 Tulalip Tribes of Washington 6406 Marine Dr. Tulalip, WA 98271 (h) Other interested agencies or stakeholders. See below list. Notice ofintent, September 9, 2011 Page 3

CERTIFICATE OF SERVICE I hereby certify that I caused to be served, by U.S. Postal Service or email, the Notice of Intent to File Application for New License, Request to Use the Traditional Licensing Process, and the Request for Non-Federal Representative Designation upon all interested parties designated on the attached distribution list in the Calligan Creek Hydroelectric Project, Project No. 13948, in accordance with Rule 2010 of the Rules of Practice and Procedure, 18 C.F.R. 385.2010, and section 5.5(c) ofthe Commission's regulations. September 9, 2011 Signature Dawn J. Presler 2320 California Street Everett, W A 98201 (425) 783-1709 Certificate of Service - NO!, etc., September 9, 2011

CALLIGAN CREEK HYDRO PROJECT POTENTIALLY INTERESTED PARTIES DISTRIBUTION LIST I Organization IName I Address I City I State I Zip American Rivers Brett Swift 320 SW Stark Portland OR 97204 Street, Suite 412 American Whitewater Thomas O'Keefe 3537 NE 87th Seattle WA 98115 St. Black Creek Hydro, Inc. Thorn A. Fischer 3633 Alderwood Bellingham WA 98225 Avenue City of North Bend Kenneth Hearing PO Box 896 North Bend WA 98045 City of North Bend Ronald Garrow PO Box 896 North Bend WA 98045 Hancock Forest Management Julie Stangell 31716 Camp 1 Orting WA 98360 Road Hydro Reform Coalition Rich Bowers 830 Reveille St. Bellingham WA 98229 King County Development and Harry Reinert Blackriver Renton WA 98057- Environmental Services Corporate Park 5212 900 Oakesdale AveSW National Marine Fisheries Service Steve Fransen 510 Desmond Lacey WA 98503- Dr. 1292 National Park Service Susan 909 First Ave, Seattle WA 98104 Rosebrough Floor 5 Trout Unlimited Kate Miller 227 SW Pine St, Portland OR 97204 Suite 200 Tulalip Tribes of Washington Michelle 6406 Marine Tulalip WA 98271 Demmert Drive Tulalip Tribes of Washington Daryl Williams 6406 Marine Tulalip WA 98271 Drive US Army Corps of Engineers Larry Schick PO Box 3755 Seattle WA 98124-3755 US Fish and Wildlife Service Tim Romanski 510 Desmond Dr Lacey WA 98503 W A Dept of Archaeology and Robert Whitlam PO Box 48343 Olympia WA 98504- Historic Preservation 8343 W A Dept of Ecology Chris Maynard PO Box 47600 Olympia WA 98504 W A Dept of Ecology Monika 3190 160th Ave Bellevue WA 98008- Kannadaguli SE 5452 WA Dept offish and Wildlife Brock Applegate PO Box 1100 La Conner WA 98257 W A Recreation and Conservation Jim Eychaner PO Box 40917 Olympia WA 98504- Office 0917 Distribution List - NOl, etc., September 9,2011

SNOHOMISH COUNTY Your Northwest renewables utility invites you to be a Conservation Sensation. PUBLIC UTILITY DISTRICT NO.1 September 9,2011 VIA E-FILING Ms. Kimberly Bose, Secretary Federal Energy Regulatory Commission 888 First Street N.E. Washington, D.C. 20426 Re: Calligan Creek Hydroelectric Project (FERC No. P-13948)- Request for Designation as Commission's Non-Federal Representative Dear Secretary Bose: The Public Utility District No.1 of Snohomish County, Washington (District) is the preliminary permit holder of the Calligan Creek Hydroelectric Project, FERC No. P-13948 (Project). The current Project preliminary permit expires on March 31, 2014. Concurrent with the filing of this request, the District is filing its Notice of Intent (NOI) and Pre-Application Document (PAD) to commence Project licensing. The District hereby requests that it be designated as the Commission's non-federal representative for purposes of consultation under Section 7 of the Endangered Species Act and the joint agency regulations there under at 50 C.F.R. Part 402, section 305(b) of the Magnuson Stevens Fishery Conservation and Management Act and the implementing regulations at 50 C.F.R. section 600.920. The District further requests authorization to initiate consultation under Section 106 of the National Historic Preservation Act and the implementing regulations at 36 C.F.R. section 800.2(c)(4) as the Commission's non-federal representative upon commencement of formal Project licensing activities. Thank you for your consideration of this request. Please contact the undersigned or Dawn Presler at 425-783-1709 or D1Presler@snopud.com with any questions. Sincerely, oore, P.E. Assistant General Manager of Generation, Water and Corporate Services Licensing Team Lead 2320 California Street Everett, WA 98201 / Mailing Address: P.O. Box 11 07 Everett, WA 98206-11 07 425-783-1000' Toll-free in Western Washington at 1-877-783-1000' www.snopud.com

Request Non-Federal Representative Designation, Page 2 Phone: 425-783-8606 Email: KDMoore@snopud.com

SNOHOMISH COUNTY IP ID PUBLIC UTILITY DISTRICT NO.1 Your Northwest renewables utility invites you to be a Conservation Sensation. September 9, 2011 VIA E-FILING Secretary Bose Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426 Re: Calligan Creek Hydroelectric Project (FERC No. P-13948) Request for Approval to Use the Traditional Licensing Process Dear Secretary Bose: Pursuant to Section 5.3 of the Commission's regulations, 18 CFR 5.3, the Public Utility District No. 1 of Snohomish County ("District") hereby requests use of the Traditional Licensing Process ("TLP") for the licensing of the Calligan Creek Hydroelectric Project ("Project'). Concurrent with this filing, but under separate cover, the District is filing its Notification ofintent and Pre-Application Document for the Project. Addressed below are the following considerations to justify our request to use the TLP. Likelihood of Timely License Issuance [18 CFR 5.3( c)(l)(ii)(a)] The District has proactively engaged federal and state resource agencies, interested tribes, and other interested entities in discussion and consultation regarding the proposed Project. These discussions have addressed potential issues and identified limited study requests, which the District has already begun conducting. Based on these discussions, the District does not anticipate concerns to arise over new issues or with issues being protracted. As a result, the lengthy and front-loaded procedural requirements associated with the Integrated Licensing Process - such as the formal study plan development - are unnecessary, and use of the TLP will expedite both the District's filing of a license application and the Commission's issuance of a license for the Project. Complexity of the Resource Issues [18 CFR 5.3( c)(i)(ii)(b)] As described in Pre-Application Document for the Project, the proposed Project would have a relatively small footprint and consequently limited effects on existing resources. Based on feedback received from the District's early consultations with federal and state agencies, tribes, and other entities, the District understands that most stakeholders share the view that the resource issues associated with the Project are straightforward. 2320 California Street Everett, WA 98201 / Mailing Address: P. O. Box 1107 Everett, WA 98206-1107 425-783-1000 Toll-free in Western Washington at 1-877-783-1000 www.snopud.com

Request Use of the TLP, Page 2 Level of Anticipated Controversy [18 CFR 5.3(c)(I)(ii)(C)] Based on the District's collaborative discussions and consultation with federal and state resource agencies, interested tribes, and other interested entities, as well as comments received in the District's preliminary permit proceeding for the Project, the District does not anticipate significant controversy regarding the Project. As noted above, the resource issues associated with the Project are not complex, and the District has already agreed to and begun conducting studies identified by the agencies and other stakeholders to address potential issues. Relative Cost of the Traditional Licensing Process Compared to the Integrated Licensing Process [18 CFR 5.3(c)(1)(ii)(D)] Due to the circumstances described above, and particularly the anticipated lack of controversy, use of the TLP will allow the District to complete a license application in significantly less time, and at a significantly reduced cost, than use of the Integrated Licensing Process. The Amount of Available Information and Potential for Significant Disputes Over Studies [18 CFR 5.3(c)(I)(ii)(E)] There is a large amount of information known about the Project area as identified and summarized in the Pre-Application Document. Multiple studies and environmental analyses were conducted in the 1990s and 2000s to support the licensing, amendment to licensing, and permitting stages of the previously licensed project at this site. Several of these studies were updated in the spring and summer of 20 1 0 and 2011 to resurvey the environmental baseline. No significant issues or fatal flaws were identified during agency consultation, project studies and licensing of the Calligan Creek Hydroelectric Project in the 1990s, early 2000s, and early 201Os. The FERC 1992 Environmental Assessment (EA) for the License issued in 1993, 1994 EA for the License amendment issued in 1994, and the 2002 EA for the License amendment issued in 2002, made Findings of No Significant Impacts. Permitting of the project proceeded with no issues or problems. Based on the extensive amount of available information and lack of data gaps, as well as the District's own consultations with agencies and stakeholders, the District does not anticipate significant disputes over studies. Other Pertinent Factors [18 CFR 5.3(c)(I)(ii)(F)] The project was previously licensed by the FERC in 1993, and proceeded with receiving permits for construction. However, the economic climate had become increasingly difficult for small, start-up companies, and Balaton Power (the owner at that time) was not able to obtain financing to construct the Project. The project license was terminated by the FERC in April 2004 due to failure to start construction. Presently, the District has identified that more than 100 MW of additional renewable resources will be needed over the next couple decades to meet its expected increase in demand. The District's preference is to own and operate its own resources, where feasible, in order to reduce its exposure to the often volatile short term energy market. In working towards that mission, the District is actively pursuing a number of sources, including low impact/small hydropower. As

Request Use of the TLP, Page 3 such, the Calligan Creek Hydroelectric Project was reviewed and deemed a renewable resource that meets the various needs of the District. Due to the national and local interests to reduce reliance on foreign oil and reduce greenhouse gas emissions, the process for licensing the Calligan Creek Project should be expedited by use of the TLP in order to meet those interests. For all of the foregoing reasons, the District respectfully requests that the Commission grant this request and authorize the District to use the TLP for the licensing of the Project. As required by 18 CFR S.3(d)(1), the District is concurrently providing copies of this request to all affected resource agencies, Indian tribes, and potentially interested parties. As required by 18 CFR S.3(d)(2), the District is publishing notice of this request simultaneously with the publication of notice of availability of the NOI and PAD in the Seattle Times of general circulation in King County where the Proj ect is located. By this letter, the District is notifying the resource agencies, Indian tribes, and potentially interested parties that comments on this application must be provided to the Commission and the District no later than 30 days following the filing date ofthis document. All comments should reference Calligan Creek Hydroelectric Project - FERC No. P-13948, and they should address, as appropriate to the circumstances of the request, the following topics: Likelihood of timely license issuance; Complexity of the resource issues; Level of anticipated controversy; Relative cost of the TLP compared to the ILP; The amount of available information and potential for significant disputes over studies; and Other factors believed by the commenter to be pertinent. Comments should be submitted to the Commission electronically pursuant to 18 CFR 38S.2003(c), or by sending an original and eight copies to: Office of the Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426 Copies of the comments should be sent to: Dawn Presler, El Generation Resources PUD No.1 of Snohomish County PO Box 1107 Everett, WA 98206-1107

Request Use of the TLP, Page 4 Sincerely,. Moore, P.E. Assistant General Manager of Generation, Water and Corporate Services Licensing Team Lead Phone: 425-783-8606 Email: KDMoore@snopud.com