Lake Oswego Corporation

Dear Shareholders:

Heavy rains generate inquiries about river level forecasts, lake level maintenance, and shareholder notification in the event of a flood. The following summarizes our flood-related activities and communications.

River Level Forecast
To make it easy, we have provided a link that shows the level of the Tualatin River at the West Linn gauging station on the homepage of our Website www.lakecorp.com.

We monitor several government forecasting agencies. We also do physical water level inspections at the headgate, diversion dam, and down at the powerhouse. The primary forecasting service, the National Weather Service, updates its forecast twice daily. LOC monitors the West Linn gauge which is five miles downstream from our headgate. It gives us a two day forecast and describes the impact of flooding that can be expected at various levels of the river. It is prudent to check the site frequently to get the latest update.

http://ahps2.wrh.noaa.gov/ahps2/hydrograph.php?wfo=pqr&gage=wslo3&view=1,1,1,1,1,1

Included on this site, the National Weather Service states the following:
“ABOVE 14.5FT…THE OSWEGO CANAL INLET GATE WILL LIKELY BE OVERTOPPED.”

Lake Level Maintenance
Excluding inflow entering the lake from the Tualatin River, water enters the lake from the surrounding watershed; the hills, streams, and storm water pipes. For most storm events, we can offset watershed flows by operating our power generators. Between the two of them, we release up to 150cfs. We can also open the base gate, literally a big valve at the bottom of the dam that releases another 200cfs. Even with strong rains, operation of the power generators alone usually releases enough water to lower the lake and offset all the incoming water. When forecast conditions warrant, we will lower the lake even more to give us a buffer.

Shareholder Notification
We recommend that all shareholders take advantage of the new emergency notification system implemented by the City of Lake Oswego. The system, CodeRed, delivers emergency information by phone to targeted areas of the city. We urge you to join the system by going to the city's homepage and clicking on the CodeRed logo.

http://www.ci.oswego.or.us/home/news/CodeRED.htm

You can provide the city with your telephone contact information by filling out an on line form. You can also sign up for CodeRed by calling the Citizen Information Center,
503-635-0257. This is a good number to keep handy. It is your source of up to date information from the City during an emergency.

The City is responsible for keeping all of us informed in the event of a pending emergency. For our part, we have phone and email lists sorted by lake region and will do our best to contact you by email in the event of an emergency. We will also make every effort to canvas neighborhoods door to door at the point when we know a major flood is coming.

Please call our offices if you wish further information.

Jeff Ward
Lake Oswego Corporation
503-636-1422