#1Bonneville Power Administration As of May 5, 2022 Grand Coulee Dam Bonneville POWER ADMINISTRATION#2BONNEVILLE POWER ADMINISTRATION The information in this investor presentation is a summary of certain information concerning the Bonneville Power Administration ("BPA") and is not intended to contain all information material to investors. This investor presentation is provided for your information and convenience only. This investor presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument or to adopt any investment strategy. In no event shall BPA be liable for any use by any party of, or any decision made or action taken by any party in reliance upon the information contained herein. BPA makes no representations as to the legal, tax or accounting treatment of any BPA-supported security. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of BPA-supported securities. Past performance is not indicative of future performance, which will vary. This investor presentation you are about to view is provided as of May 5, 2022. If you are viewing this presentation after May 5, 2022, there may have been events that occurred subsequent to such date that would have a material adverse effect on the financial information that is presented herein, and BPA has not undertaken any obligation to update this investor presentation. This investor presentation contains statements which, to the extent they are not recitations of historical fact, may constitute "forward- looking statements." In this respect, the words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe” and similar expressions are intended to identify forward-looking statements. A number of important factors affecting BPA's business and financial results could cause actual results to differ materially from those stated in the forward-looking statements. Bonds supported by BPA's financial obligations and the obligations of BPA providing such support are not nor shall they be construed to be general obligations of the United States of America nor are such bonds or obligations intended to be or are they secured by the full faith and credit of the United States of America. 2#3BONNEVILLE POWER ADMINISTRATION Energy Northwest 2022-A/B Bonds Pricing Date* Settlement Date* Project 1 Columbia Generating Station Project 3 2022-A (Tax-Exempt)* 2022-B (Taxable)* Optional Redemption* Ratings (Moody's / S&P / Fitch) $99,315,000 $575,000 Series A: Par call on 7/1/2032 Series B: Make-Whole Call Wednesday, May 11, 2022 Thursday, June 2, 2022 $429,135,000 $1,870,000 Series A: Par call on 7/1/2032 Series B: Make-Whole Call Aa2 (Positive) / AA- (Stable) / AA (Stable) Preliminary Energy Northwest 2022-A/B Bonds Amortization* $Millions 80 $18,485,000 n/a Series A: Par call on 7/1/2032 120 Project 1 2022-A ■Project 1 2022-B ■Columbia 2022-A Columbia 2022-B Project 3 2022-A 100 60 40 20 0 2025 2026 2027 2028 2029 *Preliminary, subject to change; when, as, and if issued. 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 3#4BONNEVILLE POWER ADMINISTRATION One Agency with Two Business Units Unique Hydro- Based System Funding Sources Cost Recovery Non-Federal Payment Priority and Financial Reserves Credit Ratings BPA at a Glance Power Services and Transmission Services revenue was approximately $3.8 billion in FY21 BPA's customers primarily include utilities throughout the Pacific Northwest Virtually carbon-free, BPA markets power from 31 federally-owned hydroelectric projects and several Non-Federal projects Access to capital through Federal and Non-Federal sources Including the $10.0 billion increase received in Nov 2021, BPA has access to a revolving facility to borrow up to $13.7 billion in bonds from the U.S. Treasury, increasing to $17.7 billion in FY28 BPA is required by law to establish rates to recover all costs FERC reviews and approves rates to ensure that BPA rates recover all costs Cash payments for Non-Federal debt are met before payments by BPA to the U.S. Treasury BPA maintains substantial cash and short-term investment balances in addition to having access to a $750 million U.S. Treasury line of credit for operating expenses Moody's: Aa2, positive S&P: AA-, stable Fitch: AA, stable 4#5BONNEVILLE POWER PACIFIC OCEAN ADMINISTRATION Marketed Hydro Projects CANADA U.S. Roza Chandler Chief Joseph CANADA Kootenai Rive Libby U.S. Hungry Horse Albeni Falls Lake Pand Oraille Grand Coulee WASHINGTON Lower Monumental Columbia River McNary John Day Bonneville The Dalles OREGON Detroit Big Cliff Rives Foster Green Peter Cougar Dexter Lookout Point Hills Creek Lost Creek Green Springs Little Goose Ice Harbor Lower Granite Snake River Dworshak Clark Fork IDAHO Black Canyon Boise River Diversion Anderson Ranch Flathead Lake Snake River MONTANA Minidoka Palisades 5#6BONNEVILLE POWER ADMINISTRATION Columbia River Basin Diverse and expansive footprint providing power to 300k square miles served by BPA Federal dams in the Columbia River Basin contribute approximately 6,300 aMW of firm energy capacity to the region Storage in both Canada and the U.S. allows BPA to meet loads and increase reliability while still supporting multiple statutory purposes including: Flood Control Irrigation Navigation Recreation 00 6#7BONNEVILLE POWER ADMINISTRATION 97% of Forecast Firm Power is Carbon Emission-free Carbon Emission-Free Federal Hydroelectric Carbon Emission-Free Nuclear Columbia Generating Station Contract Purchases and Other Resources 6,297 aMW 84% 994aMW 13% Operating Year 2023 forecast statistics from the 2019 Pacific Northwest Loads and Resources Study, October 2020 229aMW 3% 7#8BONNEVILLE POWER ADMINISTRATION Statutory Guidance BPA must establish rates that recover all of its costs By Law BPA must defer its U.S. Treasury payments if required to meet Non-Federal obligations Federal Rate Approval Expedited Rate Case The Federal Energy Regulatory Commission (FERC) reviews and approves BPA's rates to ensure they are sufficient to recover all costs Option to initiate an expedited rate case to propose increased rates 80#9BONNEVILLE POWER ADMINISTRATION ◉ Priority of Payments By statute, payments and monetary credits to Non-Federal entities are always met prior to BPA's payments to the U.S. Treasury All BPA funds, including revenues generated from Power and Transmission, are available to meet Non-Federal costs FIRST Payments/Credits other than to the U.S. Treasury ■Non-Federal debt (including BPA-supported bonds issued by Energy Northwest, the Port of Morrow, and the Idaho Energy Resources Authority) BPA O&M expenses ■ Other (No priority implied among Non-Federal payments) SECOND U.S. Treasury Payments ■Principal and interest on bonds, as well as the line of credit, with the U.S. Treasury ■ Principal and interest to repay federal appropriations that funded capital investments in the Federal System Other 9#10BONNEVILLE POWER ADMINISTRATION Additional Assurance of Payment Short-term Credit Facility Overnight access to a $750 million line of credit with the U.S. Treasury for operating expenses Two-year Rate Case ■ Conduct a rate case every two years to ensure recovery of all costs, including Federal and non-Federal debt service In FY21, BPA made its 38th consecutive U.S. Treasury payment on time and in full Reserves Provisions Provisions to increase rate, without undertaking a formal rate process, if Reserves Available for Risk (RAR) fall below established thresholds 10 10#11BONNEVILLE POWER ADMINISTRATION Federal and Non-Federal Debt Outstanding* Non-Federal Debt $14.6 billion Borrowings from Federal Appropriation U.S. Treasury Repayment Obligations $7.4 billion 51% $5.6 billion 38% $1.6 billion 11% Energy Northwest ■ Lease-Purchase Program $5.0 billion $2.0 billion Prepaid Power Purchases $0.2 billion ■ Non-Federal Facilities $0.2 billion ■ Authorized borrowing availability increased from $7.7 billion to $13.7 billion in Nov 2021 and will increase to $17.7 billion in FY28. Facility is revolving ■ BPA repays amounts that have been appropriated by Congress for capital investments in the Federal System BPA evaluates current and forecast leverage ratios to determine if any rate action needs to be taken to maintain the 75%-85% leverage target through FY28 with a long-term target of 60%-70% * Based on 9/30/2021 Audited FCRPS Financial Statements 11#12BONNEVILLE POWER ADMINISTRATION Water Supply Observed River Run-off (Oct 21 - May 3) (% Normal) No Normal, No data 100 M House HUTWAR <25 25-50 50-75 75-90 THOMPSON PLATEA 90-110 xhe Cred 110-125 125-150 150-175 > 175 DEVUPLE PONY faitwand plantcope SELAER ONTAINS Kelown COLUMBIA MOUNTAINS balee 0. Grand Forks O 0 Lean O ° × 00 Calgary Lattige ■ The majority of the Columbia River Basin water supply comes from precipitation and snowpack in Canada As shown here, the river run-off feeding the basin is currently at or exceeding 90% of normal ■ As of early May, the FY22 water supply forecast is expected to be 93% of the 30-year historical average as measured at The Dalles Dam Portad CASCADE RANGE 00 00 BITTERROOF MANGE 12#13Empty#14$ Billions BONNEVILLE POWER ADMINISTRATION ☐ ☐ Revenues & Expenses More Stable than Streamflow The relationship of operating revenues to operating expenses has been stable when compared to wide variances in stream-flows and hydro-generation Sales of firm energy and transmission services contribute to the operating revenue stability 4.00 3.50 150% 140% 130% 3.00 120% 2.50 110% 2.00 100% 90% 1.50 80% 1.00 70% 0.50 60% 0.00 50% 2012 2013 2014 2015 Operating Revenue 2016 2017 ■Operating Expense 2018 2019 2020 2021 % of Average Streamflow Streamflow data are based on the Operating Year (Aug 1 - July 31) and the financial information is based on the Fiscal Year (Oct 1-3 Sept 30) 14 % of Average Streamflow#15BONNEVILLE POWER ADMINISTRATION Financial Reserves BPA's total financial reserves fluctuate throughout the year, however, the balance is historically at its lowest point after the annual year-end U.S. Treasury payment 2.5 $ Billions 2.0 1.5 1.0 0.5 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 -Within Year Minimum Within Year Maximum Fiscal Year End Cash, investments, and deferred borrowing (capital expenditures eligible to be funded with borrowing, but funds not yet borrowed) 15#16BONNEVILLE POWER ADMINISTRATION Financial Reserves BPA may defer borrowing for capital construction until the cash is needed. BPA also maintains a $750 million line of credit with the U.S. Treasury There was no outstanding balance at 9/30/2021 Year-End Reserves ($Millions) Total Financial Fiscal Year Reserves Reserves Available for Risk (RAR) U.S. Treasury Days Liquidity Line of Credit on Hand 2017 766 568 750 258 2018 840 551 750 254 2019 773 484 750 222 2020 889 708 750 295 2021 1,056 825 750 284 Days Liquidity on Hand = (RAR + Available U.S. Treasury Line of Credit) / (Operating Expenses/360) 16#17BONNEVILLE POWER ADMINISTRATION Non-Federal Debt Service Coverage¹ ($millions excluding ratios) FY19 FY20 FY21 Total Operating Revenues 3,656 3,684 3,823 Total Operating Expenses² 2,003 1,778 1,996 Funds Available to meet Non-Federal Debt Service 1,653 1,906 1,827 Non-Federal Debt Service Non-Federal Debt Service Coverage Ratio 338 462 336 4.9x 4.1x 5.4x ■ Non-Federal Debt management actions, such as the Regional Cooperation Debt program, have continued to result in higher than historical Non-Federal Debt Service Coverage results 1This information is presented in Official Statements for BPA-backed, Non-Federal Debt bond issuances however, BPA's audited financial statements do not include a similar table 2 Operating Expenses include the following items from the Federal System Statement of Revenues and Expenses: BPA O&M, Purchased Power, Book-outs, Non- Federal entities O&M-net billed, Non-Federal entities O&M non-net-billed, and the Residential Exchange Program. Operating Expenses do not include certain payments to the Corps and Reclamation 17#18☐ Cyber Security Continued enhancements and expansion to operational security through the implementation and monitoring of real time cyber security controls in addition to on-going improvements to our capabilities and situational awareness Continued cultivation of alliances within the federal government to deploy intelligent devices to monitor external threats Subject to mandatory NERC reliability standards including Critical Infrastructure cybersecurity standards Robust cyber security assessment program with 50 employees supporting a 24x7 Cyber Security Operations and Analysis Center to process threat intelligence and threat hunting Columbia Generating Station (Energy Northwest) is regulated by the Nuclear Regulatory Commission requiring a comprehensive cyber security program. Columbia fully implemented all requirements by December 31, 2017 High Voltage Transmission 18#19Vegetation Management and Fire Prevention Program Goals System reliability Wildfire risk mitigation Methods Annual ground patrols Semi-annual air patrols Results Award winning program Compliant with NERC rules. Successful WECC audits High Voltage Transmission 19#20BONNEVILLE POWER ADMINISTRATION Wildfire Mitigation Plan ☐ In the Spring of 2020, BPA published its Wildfire Mitigation Plan ◉ To prevent our lines and assets from sparking wildfires, and To protect our lines and assets from the threat of wildfires In 2021, the plan was updated to include a Public Safety Power Shutoff procedure to allow for proactive de-energization of lines and facilities Due to extreme weather like high winds or low humidity, and To protect homes, businesses, property, and emergency responders 20 20#21" = BPA markets power from 31 federally-owned hydro projects, Columbia Generating Station, and several other non-federal projects This system provides stability, flexibility, and reliability with limited fuel risk 21#22NO Power Services John Day Dam Markets about 28% of the electricity consumed in the region Over 125 preference customers within the region $2.9 billion in revenue in FY21 22#23BONNEVILLE POWER ADMINISTRATION ☐ Historical Average PF Preference Rates Nominal (Actual) and Real (Inflation-Adjusted) Average PF Preference Rate Levels Power rates have remained relatively stable, especially on an inflation-adjusted basis $Dollars per Megawatt Hour 40 35 GNNW c ✡ 20 15 10 5 30 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Nominal$ Real 2000$ PF = Priority Firm Power Real dollars derived using the BEA Implicit Price Deflator for GDP - 23 23#24Transmission Services 15k circuit miles of high voltage lines 262 substations Over 300k square miles of service territory $1 billion in revenue in FY21 High Voltage Transmission 24 24#25BONNEVILLE POWER ADMINISTRATION Historical Average Transmission Rates Nominal (Actual) and Real (Inflation-Adjusted) Historical Firm P2P Rate Transmission rates have remained relatively stable on an inflation-adjusted basis 1.95 Rate ($ per KW-month) 1.75 1.55 1.35 1.15 0.95 0.75 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Nominal$ Real dollars derived using the BEA Implicit Price Deflator for GDP - - Real 2000$ 25#26BONNEVILLE POWER ADMINISTRATION Non-Federal Debt ☐ ENERGY NORTHWEST ◉ Washington State Joint Operating Agency Owns and operates Columbia Generating Station (CGS) $4.8 billion in BPA-supported obligations outstanding " $4.2 billion in tax-exempt bonds $611 million in taxable bonds $49.4 million drawn on lines of credit which will be paid down with proceeds from the 2022-A/B transaction Columbia Generating Station Continuing collaboration with Energy Northwest " Obligations are fully supported by BPA under existing net billing agreements ■ Anticipate issuing up to $2.9 billion in tax exempt net billed bonds between 2022-2030 ☐ The repayment of the net billed debt is secured by BPA's financial commitments 26 26#27Non-Federal Debt - Transmission Issuers POM PORT OF MORROW IDAHO ENERGY RESOURCES AUTHORITY ☐ Oregon port district ■ Authorized to finance transmission projects with publicly issued bonds and credit arrangements secured by BPA lease-purchase commitments ■ As of 9/30/2021, $1.3 billion in outstanding BPA-supported bonds Energy-related financing authority created by Idaho legislation ■ Authorized to finance transmission projects with publicly issued bonds and credit arrangements secured by BPA lease-purchase commitments ■ As of 9/30/2021, $510 million in outstanding BPA-supported bonds and $81 million in an outstanding line of credit High Voltage Transmission 27#28BONNEVILLE POWER ADMINISTRATION Energy Northwest Series 2022-A/B Summary and Schedule 2022-A (Tax-Exempt)* 2022-B (Taxable)* Interest Payment Dates* Pricing Date* Settlement Date* Project 1 $99,315,000 $575,000 Columbia Generating Station Project 3 $429,135,000 $18,485,000 $1,870,000 n/a Starting January 1, 2023 and semiannually on July 1 and January 1 thereafter Maturities (July 1) Series A: 2026, 2028, 2035 Series B: 2025 Optional Redemption* Series A: Par call on 7/1/2032 Series B: Make-Whole Call Wednesday, May 11, 2022 Thursday, June 2, 2022 Series A: 2030, 2032-2033 2040-2041 Series B: 2025 Series A: Par call on 7/1/2032 Series B: Make-Whole Call Series A: 2035 Series A: Par call on 7/1/2032 Ratings (Moody's / S&P / Fitch) Syndicate *Preliminary, subject to change; when, as, and if issued.. Aa2 (Positive) / AA- (Stable) / AA (Stable) J.P. Morgan, Wells Fargo Securities, BofA Securities, Citigroup 28 28#29Contact Information Nadine M. Coseo Acting Treasury Manager, Financial Strategy & Operations (503) 230-3337 [email protected] Alayne M. Switzer Manager, Revenue Requirement, Repayment & Investor Relations (503) 230-4025 amswitzerobpa.gov Additional investor information: wwwww.bpa.gov/goto/ estors Bonneville POWER ADMINISTRATION 29 20