JUNIPER RIDGE PROJECT

November 23, 2009

Construction start: October 6, 2009

Two Main Phases: 13,500 linear foot 9’ diameter steel penstock (pipe)

[Contractual completion date – April 2, 2010]

5.0 Megawatt hydroelectric facility

[Contractual completion date – October 6, 2010]

SUMMARY

The purpose of this summary is to highlight the major items associated with the Juniper Ridge Project’s construction. The Juniper Ridge Project has many components of construction or activity that is fully detailed in the accompanying Gantt chart. The Gantt chart has scheduled start and end dates associated with each activity and a progress to date bar. The project Gantt chart is updated at the end of every month and the October 27, 2009 chart is attached to this summary.

At this point, all construction, procurement, design and regulatory permitting activities and tasks are on schedule.

Design – All structural, mechanical and civil design items are completed. Electrical design for the facility and interconnection is completed. The Facilities Study has been completed with PacifiCorp and the last remaining items of clarification pertaining to which entity constructs which pieces of the interconnection are currently being determined and negotiated with PacifiCorp. COID has formally notified PacifiCorp that it will be completing the interconnection process under Oregon PUC rules of the recently finalized and enacted AR-521 docket. AR-521 provides for the opportunity of having certified third parties do more of the interconnection work versus PacifiCorp work crews. Working with third party contractors provides the benefits of a contractually binding performance schedule and generally lower expense. Previous to AR-521, PacifiCorp would do more of the interconnection work but only on an expense estimate and best efforts of construction with no binding commitment that work would be performed as necessary for the project. Moving the interconnection process over to AR-521 does not effect the project schedule and keeps the project in its same spot on the PacifiCorp que for implementation.

The Interconnection agreement is expected to be signed by mid-December, 2009.

Permits – There are only three specific “permits” that are required in order for the project to be completed and are relatively symbiotic to one another. All “permits” are on schedule for issuance in line with the project schedule:

· FERC Conduit Exemption

o Application submitted and processed by FERC (P-13607). FERC has publicly noticed on an expedited basis with issuance of the Exemption anticipated on December 27, 2009 or shortly thereafter.

· OWRD water right issuance

o Application already pending and to be issued by mid-December 2009.

· Building Permit from Deschutes County

o Site Plan Application submitted in September 2009. The only comments received were from the City of Bend Fire Department, and have been agreed to and resolved pertaining to access to site for fire equipment and for providing water from the facility in the event of a fire.

o Deschutes County staff has approved all grading, excavation and in the ground construction with no effect to project schedule. Courtesy inspections will be provided by the County staff for below the ground concrete pours.

o Building Permit issuance is dependent on issuance of FERC Conduit Exemption and OWRD Water Right. As long as received by mid-January there will be no effect the project schedule as that is when construction of all above ground items needs to occur.

Procurement – All items for the Project have been ordered, completed, or under fabrication on schedule including all electrical, mechanical, generator and turbine. The detailed listing of items are in the accompanying Gantt chart.

Penstock – Excavation, pipe placement and trench filing are on schedule. Crews have been averaging 6 pieces of pipe placement per work day and the schedule requires 4 pieces of pipe per work day. Welding of the pipe joints is also on schedule.

Tailrace & By-Pass Structure – Excavation and below ground concrete pouring currently underway per schedule. Valve placement and vault structure on schedule to begin in later January/early February. This is a critical item to be completed on time as the irrigation season begins in early April and liquidated damages to the contractor kick in if the project does not begin to pass water thru the canal.

Intake Structure – Excavation has begun with concrete structural work scheduled to begin in early December

Powerhouse – All civil work for the site has begun on schedule and it proceeding on time. Below ground work and construction has received permission from Deschutes County planning department staff with courtesy inspections to be scheduled on any concrete and rebar work. Building Permit required work is not scheduled to begin until the second week of February.

Report prepared by: Steven C Johnson