BALD EAGLE MANAGEMENT 2014 ANNUAL REPORT

SETTLEMENT AGREEMENT ARTICLE 513 BALD EAGLE MANAGEMENT 2014 ANNUAL REPORT REPORTING PERIOD JANUARY 1 DECEMBER 31, 2014 BAKER RIVER HYDROELECTRIC PROJECT FERC No. 2150 September 2015 PUGET SOUND ENERGY Baker River Hydroelectric Project

CONTENTS CONTENTS 1.0 Executive Summary... 1 2.0 Introduction... 1 3.0 Activity Report... 1 3.1 Bald Eagle Nest Survey... 2 3.2 Bald Eagle Communal Night Roost Surveys... 2 3.3 Minimizing Effects of Construction... 2 3.4 Incidental Observations... 3 3.5 Maps of Aerial Survey and Incidental Observations... 4 3.6 Acquisition Activities... 6 3.7 Design and Planning Activities... 6 3.8 Documents Submitted... 6 4.0 Accounting... 6 4.1 Funding and Expenditures Prescribed by SA 513... 6 4.2 Adjustments... 6 APPENDIX A: BALD EAGLE NEST SITE MANAGEMENT PLAN... 7 List of Tables Table 1. Bald eagle aerial nest survey results for 2014.... 2 Table 2. Incidental bald eagle observations in 2014.... 3 List of Figures Figure 1. Map of Baker Lake bald eagle nest sites and 2014 observations.... 4 Figure 2. Map of Lake Shannon bald eagle nest sites and 2014 observations.... 5 PUGET SOUND ENERGY Baker River Hydroelectric Project Page ii

1.0 Executive Summary This Bald Eagle Management Annual Report reviews Puget Sound Energy s actions in 2014 to implement settlement agreement article 513 (SA 513), Bald Eagle Management Plan, for the Baker River Hydroelectric Project, Federal Energy Regulatory Commission (FERC) No. 2150. This report was prepared by Puget Sound Energy in accordance with the Bald Eagle Management Plan and was reviewed by the Terrestrial Resource Implementation Group (TRIG). This report summarizes the activities conducted in 2014 in accordance with SA 513, which included: Development and TRIG review of the SA 513 annual report for 2013. Completion of the aerial nest survey. Documentation of incidental bald eagle observations during the nesting season. Coordination with construction project managers, Project operations staff, and the Recreation Resources Group (RRG) to minimize any potential disturbance to nesting or roosting bald eagles or their habitat from Project-related construction or recreation activities. Section 4 of this report outlines funding expenditures in 2014 for SA 513. 2.0 Introduction This report has been prepared for the Baker River Hydroelectric Project (the Project), and documents the activities conducted in 2014 to implement settlement agreement article 513 (SA 513, Bald Eagle Management Plan, in a manner consistent with the FERC-approved Bald Eagle Management Plan. This report was reviewed by the Terrestrial Resource Implementation Group. The list of TRIG members who received this report, along with a table of reviewer comments and PSE responses, is provided in the SA 501 Terrestrial Resource Management Plan (TRMP) annual report for 2014. The goals of SA 513 are to protect known bald eagle nests and communal winter night roosts within the Project boundary from disturbance due to Project-related activities, and to assist the Washington Department of Fish and Wildlife (WDFW), U.S. Fish and Wildlife Service (USFWS), and U.S. Forest Service (USDA-FS) in identifying eagle nests and communal night roosts in need of protection in the Project area. 3.0 Activity Report Bald eagle management and monitoring activities at the Project during 2014 were directed by license article 410, (LA 410), Threatened, Endangered, and Sensitive Species, as well as SA 513. This section provides an overview of activities conducted in 2014 related to bald eagles under both of these articles. Details related to incidental observations are provided in section 3.1.5 of this report. PUGET SOUND ENERGY Baker River Hydroelectric Project Page 1

Activity Report 3.1 8Bald Eagle Nest Survey Puget Sound Energy conducted an aerial survey of the Project area on July 3, 2014. In 2014, nesting activity was confirmed during the aerial survey at three of the five known bald eagle nest territories Maple Grove and Panorama Point on Baker Lake, and the Thunder Creek nest on Lake Shannon. One adult eagle and one chick were observed at each of the three nests. In addition, two adult bald eagles and one chick were observed in a new bald eagle nest discovered between Sulphur Creek and Depression Lake. A nest site management plan has been developed for this nest, based on information from the 2014 annual survey. The exact location of the nest was not recorded during the survey, but a GPS point will be taken during the 2015 nest season. After the nest location is recorded, a nest observation form will be completed and submitted to the WDFW for inclusion in the WDFW priority habitat and species database. The WDFW is no longer requiring or managing bald eagle nest site management plans, but PSE has completed one for its own purposes and for consistence with the SA 513 Bald Eagle Management Plan. Table 1. Bald eagle aerial nest survey results for 2014. Nest territory name Nest territory ID Number of adults Number of chicks Maple Grove 3 1 1 Panorama Point 2 1 1 Baker River 1 0 0 Thunder Creek 4 1 1 North Shannon 5 0 0 3.2 9Bald Eagle Communal Night Roost Surveys Bald eagle night roost surveys were not conducted during the reporting period in accordance with SA 512, Bald Eagle Night Roost Surveys. Two seasons of surveys were conducted from November 2009 through February 2010, and again from November 2010 through February 2011. Two additional seasons of surveys will be conducted in years 15 17 of the license, as directed by SA 512. 3.3 10BMinimizing Effects of Construction During the reporting period, PSE biologists met with construction project managers, land use planners, and Project operations staff to minimize any potential effects to nesting or roosting bald eagles in the Project area. No projects were planned or conducted in close proximity to eagle nest or roost sites. No large overstory trees that could be used for bald eagle nesting or roosting were removed from the Project area during the reporting period. The Upper Baker Kulshan boat launch improvement project plan was reviewed for potential effects to bald eagles, and none were identified. This activity will not occur near any of the known eagle nests, and will have no effect on eagle nesting or roosting habitat. USFWS consultation related to this project is documented in the LA 410 annual report for 2014. PUGET SOUND ENERGY Baker River Hydroelectric Project Page 2

Activity Report 3.4 1BIncidental Observations Bald eagles were observed incidentally during loon and osprey surveys throughout the nesting season. Table 2 and the maps in section 3.5 summarize these observations. Survey Date Number of Eagles 4/3/2014 1 Adult 4/3/2014 1 Adult 4/3/2014 1 Adult 4/3/2014 1 Adult 4/16/2014 2 Adult 4/16/2014 1 Adult 4/16/2014 1 Adult Table 2. Incidental bald eagle observations in 2014. Age Class Location Nest Comments N end of Lake Shannon, near osprey nest tree T-13 Maple Grove, Baker Lake Just north of Maple Grove Near Noisy Creek, Baker Lake South of Noisy Creek, Baker Lake East of Swift Creek, Baker Lake Panorama Point, Baker Lake 5/5/2014 1 Adult Maple Grove 5/5/2014 1 Adult 5/5/2014 2 Adult North end of Baker Lake North end of Baker Lake N Shannon Maple Grove Panorama Point Maple Grove Baker River Baker River near nest near nest tree 5/5/2014 1 Adult Panorama Point Feeding on shore 5/5/2014 1 Adult 6/11/2014 1 Subadult 6/11/2014 1 Adult 7/9/2014 1 Adult 7/25/2014 1 Adult Little Sandy Creek, Baker Lake West of Ermine Creek, Baker Lake North end of Baker Lake Thunder Creek, Lake Shannon Near the Lower Baker dam Baker River Thunder Creek Flew over tree line on east side of the lake, then perched near the nest. Flew up Lake Shannon from near the dam, perched in a tree on SW side of the lake. A few minutes later the eagle flew off to the west. PUGET SOUND ENERGY Baker River Hydroelectric Project Page 3

Activity Report 3.5 12BMaps of Aerial Survey and Incidental Observations Figure 1. Map of Baker Lake bald eagle nest sites and 2014 observations. PUGET SOUND ENERGY Baker River Hydroelectric Project Page 4

Activity Report Figure 2. Map of Lake Shannon bald eagle nest sites and 2014 observations. PUGET SOUND ENERGY Baker River Hydroelectric Project Page 5

Accounting 3.6 13BAcquisition Activities PSE acquired the Burpee Hill south property in December 2014. The Burpee Hill Management Program document will be updated to include the Burpee Hill south property, which will be managed primarily for elk forage habitat under SA 503. There are no known eagle nests on or near the Burpee Hill south property. 3.7 14BDesign and Planning Activities Design and planning activities in 2014 included coordination with the planning for the Upper Baker Kulshan boat launch improvement project. The area in which this activity will occur is not near any active eagle nests or roost sites, and the project will not include removal of any large overstory trees that could be used by bald eagles. 3.8 15BDocuments Submitted During the reporting period, Puget Sound Energy developed the SA 513 Annual Report for 2013 and submitted the report to the TRIG for the 30-day review period as directed by SA 501, Terrestrial Resource Management Plan. The final 2012 report for SA 513 was filed with the FERC during the reporting period. 4.0 Accounting Puget Sound Energy, pursuant to settlement agreement articles 102, 201, 301, 501, and 602, is required to provide an annual summary of expenditures made during the preceding year, as well as an accounting of funding expenditures, any interest earned, disbursements made as required by any article, and adjustments for inflation. This section provides an accounting of expenditures made between January 1, 2014 and December 31, 2014. All disbursement adjustments and relevant calculations were determined using the guidelines provided in settlement article 602, Required Funding. 4.1 16BFunding and Expenditures Prescribed by SA 513 SA 513 did not prescribe any funding during the reporting period. 4.2 17BAdjustments There were no adjustments made to the funding for SA 513 during the reporting period. PUGET SOUND ENERGY Baker River Hydroelectric Project Page 6

APPENDIX A: BALD EAGLE NEST SITE MANAGEMENT PLAN APPENDIX A: BALD EAGLE NEST SITE MANAGEMENT PLAN PUGET SOUND ENERGY Baker River Hydroelectric Project Page 7

APPENDIX A: BALD EAGLE NEST SITE MANAGEMENT PLAN PUGET SOUND ENERGY Baker River Hydroelectric Project Page 8

APPENDIX A: BALD EAGLE NEST SITE MANAGEMENT PLAN PUGET SOUND ENERGY Baker River Hydroelectric Project Page 9