1. 2001 Financial Audit and Management Letter- Cathy Bloom, Assistant Treasurer, Don Irving, and Shawn Holm, PricewaterhouseCoopers, LLP (Presentation - 20 min./Discussion - 10 min./Information)
2. Schedule for filling "At Large" position - Marty Douglass, Public Affairs Manager (Presentation - 10 min./Discussion - 10 min./Information)
3. Fuel Cells demonstration - Mat Northway, Energy Services Management Manager, and Kathy Grey, Energy Management Products Supervisor (Presentation - 15 min./Discussion - 15 min./Information)

1. Agenda check (President Anderson)
2. Approval of Consent Calendar (Items will be approved by one motion and without discussion. If discussion is required, specific items will be removed from the Consent Calendar and considered separately.)
3. Items from Board Members (5 min.)
4. Correspondence (5 min.)
5. Public Input
6. Items removed from Consent Calendar

1. Minutes of the February 12, 2002 Work Session
   
   SURPLUS PROPERTY
   
   Surplus Property Declaration - Berterlsen South of West 11^th Avenue - Right of Way - Facilities. Property Management staff requests the approval of the Resolution declaring a certain EWEB owned parcel "surplus" and authorizing staff to begin the Board approved disposal process. (See Mark Oberle's memo)
   
   BUSINESS SERVICE AGREEMENTS
   
   
2. Portland General Electric - Electric Operations - Electric Division. Payment for labor, material and equipment expense for the use of eleven PGE line crews to repair electric system damage incurred during the February 7 wind storm. FEMA to cover 75% of expense. Contact person is Dave Koski, 484-2411, ext. 3731. .
   
   
3. Beacon Electric - Energy Management Services - Customer Services Division. Award of a requirements contract for installing energy-efficient electronic thermostats in electrically heated residences of EWEB customers. This contract replaces the contract with L.H. Morris that expires March 31, 2002. EWEB energy-efficient electronic thermostat replacement program activity level is expected to continue at the current pace, and the contract price is based on an "as needed" basis for an estimated amount of $264,500 over five years; however, the actual expenditures may be more or less, depending upon customer interest in program, participation. Contact Kathy Grey, ext. 3049 or E-Mail Kathy Gray
   
   
4. Professional Services Industries (PSI) - Leaburg/Walterville Relicensing - Electric Division. Testing Services associated with Leaburg & Walterville Relicensing Improvements. Provide soil/aggregate gradation sampling and analysis and in-place testing; concrete materials and mix design testing and reporting and concrete on-site testing and sampling and for structural metal assembly inspection. This testing is required to ensure compliance with the contract specifications and FERC requirements for a Quality Control Inspection Program. The amount involved is $33,465. This work is budgeted under miscellaneous relicensing projects. Contact Jerry Hohman at 341-8510 or **** (Removing Jerry Hohman email address but not phone)
   
   
5. Ecotope Inc. - Energy Management Services - Customer Services. Applies to existing contract with Ecotope Inc., which completed field research , collected information, developed a maintenance protocol and assessed the energy savings potential for small commercial "rooftop" HVAC systems. These systems represent a significant energy savings opportunity for small business customers. The proposed amendment is for additional services requested by EWEB to (1) complete the final report and; (2) provide for HVAC contractor training, program design and program development services to assist EWEB in developing a non-residential "rooftop" HVAC program. These small HVAC rooftop systems serve approximately 50-80 percent of commercial facility floor area in the Pacific Northwest. Based on the Ecotope field research completed last year, existing rooftop HVAC systems are operating at significantly less than optimal efficiency performance. The proposed amendment would allow Ecotope to review the results of the study with our local contractors in the proposed training session and assist us in designing an incentive program that we plan on added to our business DSM strategies working through local HVAC contractors. The amount involved is $80,015. This work was planned for and included in the 2002 budget. Contact Mike Logan at X3061 or E-Mail Mike Logan
   

BUDGET AMENDMENTS

Budget Amendment No. 7 - Changes in Contribution Margin Budget Assumptions. Projects: 14332 Sales and Interest Income; 18147 Wholesale Power Sales; 19278 Wyoming Wind Generation; 14194 Vendor Payments; 14086 Wholesale Purchased Power; 11617 Smith Falls Operations and Maintenance; 14069 Weyerhaeuser #3 Operations and Maintenance; 18161 Weyerhaeuser #4 Operations and Maintenance; 18150 Wholesale Wheeling; 14492 Stone Creek Operations and Maintenance; and 19279 Wyoming Wind Generation.

a. Retail revenue - This budget amendment adjusts budgeted retail revenue for 2002 to be consistent with the retail sales assumptions used for the recently passed rate action and reflect the impact of the new electric rates. These revenues are based on the new rates that the Board approved being in effect through the end of 2002 with no changes.

b. Wholesale revenue - This adjusts the budgeted wholesale revenue to be consistent with the wholesale sales volumes and prices used for determining the new electric rates. The primary changes relate to higher volume of wholesale sales due to lower retail loads and lower wholesale prices than used for the budget in the fall of 2001.

c. Purchased power - This adjusts the budgeted purchased power to be consistent with the volumes and prices used in determining the new electric rates. The major reasons for the change involve the reduction in BPA rates, low ancillary services costs due to lower loads, and adjustments related to the conservation and renewable discount.

d. Wheeling - This adjusts the budgeted wheeling costs to be consistent with those used in determining the new electric rates. The changes relate to the choice of the NT (network transmission) contract rather than the PTP (point-to-point) contract that was used for the budget. With lower retail loads, the NT rate yields a lower cost.

e. CILT - To be consistent with the retail revenues contained in that budget amendment. It reduces the budgeted payments to the City of Eugene by $900,000 and to the City of Springfield by about $3,000.

Contact person is Dick Varner, ext. 3299 or E-Mail Dick Varner

Item	Original Budget	Amended Budget	Difference	Funding Source (reserves, new revenue, bonding)
Retail Revenue	($159,294,885)	($143,134,800)	$16,160,085 decrease	Operating Reserve Other cost savings and financing agreements will cover this.
Wholesale Revenue	( 34,704,060)	( 39,371,000)	( 4,666,940) increase
Power	102,554,134	98,152,750	( 4,401,384) decrease
Wheeling	8,161,124	7,109,200	(1,051,924) decrease
Production	1,945,000	1,945,000	None
CILT	10,165,900	9,259,570	(906,330) decrease
Net	($ 71,172,787)	($ 66,039,280)	$ 5,133,507 Decrease in revenue overall