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| Overview

Cascade is developing the first major water supply in the region in decades by connecting existing systems and bringing on a new water source, Lake Tapps, to meet future water demands of Members.

Cascade's Transmission and Supply Plan (TSP) anticipates total capital expenditures by 2024 of between $402 million and $481 million for the facilities (including water transmission lines, booster pumps and treatment plants). The range is effected by different potential alignments and routes, and different sizes and combination of pipes that are now being evaluated by Cascade for bringing these two major sources of supply to its Members.

For the initial six years covered by the TSP, Cascade anticipates capital expenditures of between $122 million and $163 million, depending on decisions made relative to alternative pipeline routes and sizes. Cascade anticipates paying for these capital facilities through a combination of state/federal grants and loans, revenue bonds, Member charges, and Regional Capital Facilities Charges.

The Cascade Regional Water Supply System includes a series of regional transmission pipelines designed to deliver water to Cascade Members. The Tacoma-Cascade Pipeline consists of two parts: the Central Segment and the North Segment, which will deliver water purchased from Tacoma to Cascade Members.

The Central Segment (from the Tacoma system to the Seattle system) moved into the final design phase in mid-2006. In late 2005, planning also began on identifying potential routes for the North Segment (from the Central Segment to Cascade Members). The North Segment pre-design began in the summer of 2006. While these activities represent significant steps, the overall transmissions options and alternatives are still being developed and work will continue in 2007 and beyond.

The Bellevue-Issaquah Regional Transmission Pipeline (BIP) was constructed in 2002. The BIP pipeline will be used to convey water to the Issaquah Highlands and Talus developments and to the Sammamish Plateau Water & Sewer District. The BIP pipeline was brought into operation in the summer of 2006.

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