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News source for Wyoming co-op owners since 1954


w y o m i n g

r u r a l


Annual Meeting issue

e l e c t r i c

n e w s august

August 24


Hulett, wy

Your 2013 voting ballot is inside!


August 24th

Greater Hulett Community center

2013 annual meeting members PRECORP

of the

Elect your PRECorp Board of Directors Members who attend the Powder River Energy Corporation Annual Meeting on Saturday, August 24, may cast their vote in person. If unable to attend the meeting, members may still cast their vote by mail or by proxy. How to vote: 1. Review the candidate information on pages 2, 3, and 4, of the PRECorp News section inside this issue of the WREN magazine. 2. In Person: a. You must register at the meeting in order to vote. b. A ballot will be given to you when you register.

Paul Bogart to entertain at annual meeting Country singer/songwriter Paul Bogart, Nashville, TN, will join the PRECorp Annual Meeting attendees for an 11 a.m. performance. Bogart is no stranger to Hulett as he has performed here for previous engagements related to the Ride A Horse - Feed A Cowboy celebration. His audiences range from youngsters to the experienced listeners. Bogart's music is a style all of its own, but carries a bit of Brad Paisley and George Strait. The Oklahoma native brings vast rodeo experience and a ranch upbringing that lend authenticity to his music.

3. By Mail: a. Fill out the official mail-in ballot printed on the back cover of this magazine. Please follow the instructions carefully. b. Use the return envelope in the middle of this magazine to cast your vote by mail. The ballot must be received by 5 p.m. Friday, August 23. Voting Instructions If you plan to attend the meeting: • Vote in person • You must register at the meeting in order to vote. • A ballot will be given to you when you register. • If you will be representing by proxy, you must present the appropriate, properly completed voting designation form at registration. Cast your vote by mail: • Important: Your ballot will not be valid without your printed name and signature on the back of the Business Reply envelope enclosed in the middle of this magazine. Please ensure your name is exactly as it appears on the mailing label of WREN magazine. • Mailed ballots must be received by 5 p.m. Friday, August 23, to be valid. What is proxy voting? A PRECorp member may designate a substitute voter, or proxy, for the Annual Meeting. Complete the appropriate designation form inside the back cover of this magazine if: • You are representing a corporation, or • A partnership, or • If your membership is in your spouse’s name and he/she will not be attending the meeting.


PRECorp News AUGUST 2013


2013 annual

meeting of the members August 24


Hulett, wy

greater hulett community Center Registration 10:00 am • Meeting 12:15 pm

The 68th PRECorp Annual Meeting will be held Saturday, Aug. 24, at the Greater Hulett Community Center in Hulett, Wyo. By Tim Velder, PRECorp Marketing and Communications Specialist The 68th Annual Meeting of the members of Powder River Energy Corporation will be held at the Greater Hulett Community Center in Hulett, Wyo., on Saturday, August 24. Registration begins at 10 a.m. followed by entertainment and lunch. The meeting opens at 12:15 p.m. The event will feature voting for board members, reports from PRECorp CEO Mike Easley, Board President Walter Christensen, and SecretaryTreasurer Philip Habeck. Three three-year director seats in Campbell, Johnson, and Weston counties are up for election this year. Candidate profiles, annual reports and more information about this year’s event are printed inside. Voting information is printed on the outside cover around this magazine. Those voting absentee will find a pre-printed envelope inside. Those who attend will receive give-aways, and will be entered in a drawing for cash and door prizes. Giveaways will include two youth bicycles and 4-H beef. The first 100 members to register receive a free rodeo pass. The entertainment will feature a performance by country singer, Paul Bogart. Anyone needing a ride to the meeting should call PRECorp Member Service at 1-800-442-3630. The reservation deadline is Tuesday, August 13. Go to for more information about special things to do in town on August 24.

Anyone with questions about the Annual Meeting or its voting process, call PRECorp at 1-800-442-3630.

In This Issue Regular business: 1-800-442-3630 • Report an outage: 1-888-391-6220

Pg. 2-4: Candidate Profiles Pg. 5-6: Minutes of the 2011 Annual Meeting

Pg. 7-10: 2012 Financial Reports Pg. 12: Message from the CEO


Director Candidate Information Nominating Committee Report Following is the report of the 2013 PRECorp Annual Meeting Director Election Nominating Committee, as appointed by the Board of Directors, per Article IV, Section 4, NOMINATIONS of the cooperative’s bylaws. Members of this year’s Nominating Committee, two from each county holding an election, were as follows: • Campbell County: Bob Tarver and Bob Innes • Johnson County: Fred Carr and Ed Foust • Weston County: Nicky Groenewold and Pat Townsend The Nominating Committee selected the following Powder River Energy members as director candidates: • Campbell County: Gerry Geis Charlene Camblin Don Hamm • Johnson County: Joe Kalus Pam Kinchen Will Ramsbottom • Weston County: Reuben Ritthaler Jimmy Keeline (withdrew) Matt Stroh On Pages 2-4 are brief profiles and statements of candidacy for each of the director candidates.

The PRECorp Annual Meeting will include the formal election of directors to three-year terms on the PRECorp Board of Directors. Campbell County incumbent Don Hamm, Gerry Geis, and Charlene Camblin are running for a single seat. Johnson County incumbent Pam Kinchen is joined on the ballot by Joe Kalus and Will Rambsottom for that seat. Weston County incumbent Reuben Ritthaler and Matt Stroh are seeking one director seat. Their biographical information follows.

Johnson County Joe Kalus Joe Kalus has utilized Powder River Energy Corporation power for the last 39 years. Kalus was a ranch manager of the Texaco Ranch in Johnson County since 1974, and has been a residential member since 2008. Joe has Bachelor’s and Master’s degrees in Engineering and is recently retired. He currently serves on the Lake DeSmet advisory board and has many years of experience as a board member of the Buffalo YMCA, and was the director of the Big Horn Mountain RoundUp for over 20 years. Joe and his wife Pat have two grown children and four grandchildren. Joe brings a wide array of

experience between ranching, working on advisory boards for irrigation, engineering and natural gas experience, construction, and he is a licensed outfitter. “Powder River Energy is a good company, after working many years I now have the time and would like to contribute to my community. I believe it’s important to help keep costs as low as possible and help address possible member concerns as a PRECorp member, residential power user, and former rancher.”

Johnson County Pam Kinchen Pam Kinchen is seeking another term on the Powder River Energy Board to serve the members of the cooperative. Kinchen has been a member of Powder River Energy Corporation since 1978. Pam lives in Barnum and has two grown daughters and one grandson. She uses electric service at her home, stock well, and office in Kaycee. Pam currently serves on the Powder River Energy Board of Directors, Crisis Center of Johnson County, and the Chris LeDoux Memorial Foundation.

If elected, each director will serve a three-year term. Please review the profiles and statements of candidacy to familiarize yourself with the candidates. Vote for the candidate of choice either in person at the Annual Membership Meeting on August 24, 2013, or via the proxy with the forms included on the cover of this WREN magazine.

Johnson County

Ballots must be received at one of the three main PRECorp offices in Sundance, Gillette, or Sheridan by 5 p.m. on Friday, August 23, 2013.

“As a member of the Powder River Energy Corporation, I would contribute as a Director to work

“As we watch the mineral industry fluctuate from boom to near bust, we need to be strong advocates against policies that are not based on sound science. The coal industry is facing new challenges that has an effect on the price of electricity. As directors of Powder River Energy we need to strategically plan for these fluctuations. Higher electricity costs are not a desirable option in these stressed economic times. “

Will Ramsbottom

William Ramsbottom, Johnson County, is a lifelong rancher from Johnson County whose family has been in the PRECorp system for several decades. His ranch operations in Johnson and Campbell counties are served by PRECorp.

hard to learn the business,” he said. “I want to be a voice for the members, keeping them first, and try to keep electricity to an affordable price.” He graduated with a degree in Ag Economics from the University of Wyoming in 1987 and ranches with his two sons.

PreCorp annual Meeting • Saturday, August 24 • Hulett, wy

Mail in ballots must be received by August 23, 2013.

Campbell County

Campbell County

Campbell County

Gerry Geis

Charlene Camblin

Don Hamm

Gerry Geis of Gillette has been a PRECorp member since 1998, but his family have been members since the early 1950s. Geis is a rancher and the owner-operator of an oilfield service company. He and his wife Gwen have three grown children and seven grandchildren. “I am seeking to represent the member/ owners in all matters pertaining to their electric cooperative,” Geis said. “That includes everything from daily customer service to dealing with burdensome federal regulations and everything in between. “I think that our board and administration have worked very hard and have done an outstanding job of building a strong and sustainable co-op while going through some very challenging times over the last many years including dealing with massive expansion during the CBM boom. “I would like the opportunity to participate in moving Powder River Energy forward into the future, whether that be expansion for industry, residential or agricultural use or just maintaining the current infrastructure while securing stable, affordable, long-term electrical supplies that will continue to provide the members with reliable power to meet their needs. The ongoing expansion of regulatory issues is going to affect every aspect of this cooperative, from endangered species and power lines to power plants and emissions. “I would like to be a member of this board and strive to be proactive in dealing with these issues and not reactive, to plan and position PRE Corp to meet whatever challenges arise in the coming years. Thank you for your consideration.”

Charlene Camblin is a fourth generation rancher from northern Campbell County and is running for a position on the PRECorp Board of Directors. Camblin has a Bachelor’s Degree in Ag Marketing from Arizona State University and professional experience in the methane and trucking industry. “My husband Doug and I run a yearling stocker operation and produce our own hay. From the electric pumps that water the cattle to the internet service I use to pay bills with, we rely on PREcorp every single day to provide us with reliable and affordable electricity,” says Charlene. “As the first woman chairman of the Farmer’s Co-op Board in Gillette, I have a profound respect for the mechanics of how a cooperative board functions. As a member you want low prices, great service and quality products. As a director, you have to look out for the best interests of the members while also running the business in the most efficient, accountable and profitable manner possible,” Charlene said. “Going forward, my concern is the increasing restraint government regulations will put on the growth of our local industries such as energy and agriculture. Rising electricity costs translates into higher operating costs for every business owner and the challenge that PRECorp faces in the future is how to grow the membership to maintain the volume of service that will help keep those electrical costs down, while still being accountable to the environment and to the members.”

Don Hamm is running for re-election to a second term as director from Campbell County. He and his wife Melody operate a ranch north of Rozet. They have a daughter, Lexi. “I would like to thank the membership for allowing me to serve as your director from Campbell County. I ask for your continued support for another term,” Hamm said. Hamm would also like to thank the staff for their loyalty and dedication in times of declining revenues due to the demise of the coal bed methane industry. “PRECorp’s financial position has remained strong largely due to their efforts. They need to be congratulated for a job well done,” he said. “I encourage everyone to take an active role in your co-op by attending the annual meeting to cast your vote. If you cannot attend please vote by proxy. “Thanks again for your support and feel free to call with any questions or concerns.”

nd ot a ion l l a rb at You nform the i o t y x pro tached this f t o a e. ver are azin t co g n a o m fr th’s n o m

Need a ride to the annual meeting? • Call 1-800-442-3630.



Director Candidate Information Weston County Reuben Ritthaler He said that in today’s environmentally-aware world, electricity is not a luxury - it is a necessity. “We must have a reliable and affordable source of electricity. Changes that are happening right now in the industry threaten our reliable power, and its cost.” “With the right planning, management, and leadership, these Reuben and his wife Shelly have a daughter, changes can be channeled into a good and equitable future for Min Dee. They own a cattle ranch west of Upevery member. The same cooperative spirit that built your electon and have been members of PRECorp since tric utility can help us work together to make sure that today’s 1975. changes are not forced upon us, but that they work for us and the Powder River Energy is very important to Ritthaler and he enjoys environment – today and in the future for each member. My goal representing the PRECorp membership. “The electricity it pro- is to make sure that this happens.” vides is essential to my business and to the comfort of my home “I would like to continue to serve you and our co-op. Thank you and family. This is something I never take for granted,” he said. for your support.” Reuben Ritthaler is a lifelong resident of Weston County. He attended the University of Wyoming and is a graduate of the University of Wyoming Leadership Development Program.

Weston County Matt Stroh Matt Stroh of Newcastle has been a member of He has a bachelor’s degree in Biblical Studies. PRECorp through his ranch and home for more “I believe energy is important to us all and will play an increasthan a year. ingly important role in our lives in the future,” Stroh said. “I beHe and his wife Melissa and their three chil- lieve that using new technology to assist us in providing energy dren live and work on the family ranch near is a way we can keep costs low and our quality of service high.” Newcastle. Matt also operates a small retail business from his home.

Where is the 2013 Annual Meeting? Take I-90 Exits 154 or 199 to Devils Tower Junction, then Highway 24 to Hulett. In Hulett use Sager Avenue north to the Greater Hulett Community Center.

2011 Annual Meeting Minutes Unapproved minutes of the Powder River Energy Corporation Annual Meeting of the Members On August 20, 2011 in Upton, Wyoming Call to Order: The 66th Annual Meeting of the Members of Powder River Energy Corporation was called to order at 1:17 p.m. on Saturday, August 20, 2011 at the Upton Elementary/Middle School, Upton, Wyoming by Board President Tom L Davis. Appointment of Recording Secretary: President Davis appointed Deanna Steele as recording secretary for the meeting. Announcement of a Quorum: It was announced by Attorney Hughes that according to Article 3, Section 4 of the bylaws of Powder River Energy Corporation, a quorum was present. There were a total of 150 registered members in attendance and 185 proxy votes for a total of 334 registered members. There are 12,115 members. Reading of Official Notice: Attorney Hughes read the Official Notice of the meeting and explained the purpose of the meeting. Recognition of Guests: CEO Easley introduced the PRECorp Directors and their spouses and rec-

ognized the candidates running for election to the Board of Directors: Incumbents Paul Baker/Crook County, and Dave Hoyt/Sheridan County; and Johnson County candidates Mike Lohse and William Ramsbottom. Nominating Committee/ Election Judges: President Davis recognized the 2011 Annual Meeting Nominating Committee members Dennis Williams, Stephen Hilty, Ed Foust, Fred Carr, Gary Koltiska and Norma Malli and thanked them for their efforts in securing candidates for the election. In addition, he recognized 2011 Annual Meeting Election Judges: Gib Wilson, Richard Castello, Ed Foust, Larry Smith, Carlton Dewey, and Lorraine Kobielusz. 2010 Minutes: A motion was made to dispense of the reading of the minutes of the 2010 Annual Meeting and approve them as presented. Motion was seconded by many and carried without dissent. Voting: President Davis asked three times if there were any nominations from the floor. A motion to cease nominations was made and carried. President Davis declared the elections closed. Secretary/Treasurer Report: Secretary/Treasurer Philip Habeck gave the 2011 Treasurer’s Report. The 2010 Statement of Operations

5 shows net margins of $6,767,000. Total revenues were $165,967,000 and total expenses were $165,446,000, for an operating margin of $521,000. Nonoperating margin totals of $6,246,000 included G&T and Other Capital Credits of $5,298,000, interest income of $871,000, and other non-op margins of $78,000. PRECorp’s total sales revenue was $167.6 million, broken down by Coal Bed Methane at $68.6M, Coal Mines $60.5M, Other Commercial $31.5M, and Residential/Seasonal at $16.5M. PRECorp purchased 3.185 billion kWh of power in 2010 at a cost of $123.9 million. This equates to an average cost per kWh of 3.9 cents, compared to the U.S. median of 6.2 cents. A bill credit from Basin Electric in the amount of $4.3 million reduced the 2010 power costs and the savings were passed on to the members with a May bill credit. The Cooperative is taking steps to maintain a positive financial outlook in challenging economic times. Costs are being cut where appropriate and positioning the company to take advantage of future opportunities. A revenue deferral of $3.42 million was made to provide a mechanism to help maintain stable retail rates. In 2010, PRECorp paid back $2.286 million of Capital Credits to the members. Since its inception, PRECorp has paid back over $54.15 million. continued on Page 6

things to do: Old West Cowboy & Indian Collectible Trade and Art Show: Opens at 8 a.m. Saturday, August 24, next door to the Community Center. Come in and shop the great Indian and cowboy collectibles, and bring something to trade.

Benefit Rough Stock Rodeo: Opens at 2 p.m. Saturday, August 24, at the Hulett Rodeo Arena. The first 100 members to register at the annual meeting recieve a free rodeo ticket. Proceeds from the event benefit a needy area charity.

86 continued from Page 5

PRECorp’s continued pledge to the membership is to strive to provide reliable electricity at the lowest possible cost to our members.

meters and billing systems. Metering variances in the customer’s favor are tracked to the date the error occurred and refunded accordingly.

President’s Report: Board President Tom Davis thanked everyone for attending the meeting. He recognized the members that were present. He reported the Cooperative is reducing costs where needed. He specially recognized Board Member Ken Knudson who is retiring from the board, and he thanked him for his service. He also thanked candidates Mike Lohse and William Ramsbottom for running for a seat on the board.

He discussed PRECorp’s commitment to safety and training programs.

CEO Report: CEO Easley welcomed the membership and thanked them for their attendance. His presentation correlated some basic ideals with the mission and vision of PRECorp, by weaving in themes from the book “All I Really Need to Know I Learned in Kindergarten,” by Robert Fulghum. Under the concept of sharing, CEO Easley reported PRECorp retired $2.3 million in capital credits in 2010 and is on track to retire capital credits again in 2011. PRECorp “plays fair” by listening to its members when making rates, adding quality of life and leading by example. He said PRECorp strives to keep its members informed and keep a high rate of satisfaction with its customers. PRECorp’s American Customer Satisfaction Index score of 84 is well above the industry average of 75. He said overall sales declined by 2% in 2011 compared to 2010. CBM sales have declined nearly 7%. He said PRECorp filed a revision to its existing Idle Service Tariff with the Wyoming Public Service Commission and improved processes to identify and retire lines that are no longer needed or wanted. PRECorp has verified nearly 2,000 services with many of those being identified for removal. He said nearly $16 million is set aside for the ultimate retirement of the CBM facilities. PRECorp is also conducting audits on

CEO Easley concluded his comments by saying the cooperative’s mission and ideals haven’t changed in the past 66 years, although the industry has undergone significant change. The cooperative movement is strong because of the statewide, regional, and national networks that bring power to 42 million people in 47 states. DEPUTY GM REPORT: Deputy General Manager Les Penning discussed the “Together We Save” theme and how it relates to PRECorp, Touchstone Energy, Operation RoundUp and the Powder River Energy Foundation. He talked about specific local programs that have been helped by Operation RoundUp funds through the PRECorp Foundation. PRECorp Foundation: Deputy GM Penning introduced PRECorp Foundation Board member Julie Swanda and welcomed her to the meeting. She reported that the Foundation has continued to execute upon the original vision set forth by the PRECorp Board of Directors. To date the Foundation has donated more than $72,000 to local communities. She thanked those who are enrolled in the Operation RoundUp Program and encouraged those who are not signed up to do so. Swanda introduced Jamie Purcell of the Wyoming Food Bank of the Rockies. The Foundation donated $7,500 to the organization in 2011. Youth Presentations: Operations Staff Assistant Missy Juelfs provided background on the Energy Leadership Camp in Steamboat Springs, CO. Each year PRECorp sponsors youth to attend. Hugh Cook, a 2010 scholarship recipient, was nominated for the 2011 National Leadership Camp in Washington, DC. He won the national speech contest and thanked the Board and membership for

supporting his attendance. He read the speech for the audience. Unfinished Business: There was no unfinished business. New Business: There was no new business. Voting Results: Secretary/Treasurer Philip Habeck reported the winners of the election as follows: Paul Baker, Crook County; Dave Hoyt, Sheridan County; and Mike Lohse, Johnson County. Adjournment: There being no further business on the agenda, the meeting was adjourned at 2:51 p.m. The drawing for door prizes was conducted after the meeting. Unapproved minutes of the Powder River Energy Corporation Annual Meeting of the Members On August 25, 2012 in Gillette, Wyoming Call to Order: The 67th Annual Meeting of the Members of Powder River Energy Corporation was called to order at 9:35 p.m. on Saturday, August 25, 2012 at the Clarion Inn Convention Center, Gillete, Wyoming by Board President Tom L Davis. Appointment of Recording Secretary: President Davis appointed Deanna Steele as recording secretary for the meeting. Announcement of a Quorum: It was announced by Attorney Hughes that according to Article 3, Section 4 of the bylaws of Powder River Energy Corporation, a quorum was not present. The business meeting was not held and the slate of incumbent directors was carried over to 2013. Reports were given by CEO Mike Easley, Treasurer Philip Habeck, and President Tom Davis.

2012 Financial Reports


REPORT OF THE PRECORP BOARD SECRETARY/TREASURER It is my pleasure to present to you the Treasurer’s Report. As you will see from this report, the financial statements for the fiscal year ending December 31, 2012 reflect the sound status of Powder River Energy Corporation. The Cooperative retains the services of Schmidt & Company LLC, certified public accountants, to perform an audit of the corporation’s accounting records. This audit

includes an examination of the Cooperative’s Balance Sheet, Statement of Operations, Comprehensive Income, Statement of Cash Flows, and remarks concerning each. The Income Statement and Balance Sheet are included in this report, and complete versions of our annual audits are on file at the Cooperative’s office. - Philip Habeck, Secretary/Treasurer

REPORT FROM THE CHIEF FINANCIAL AND ADMINISTRATION OFFICER Revenues in 2012 increased by 6% over 2011 revenues, which is attributed to an increase in the cost of power we purchase for distribution included in the annual Cost of Power Adjustment. The cost of the power PRECorp purchased represented 76% of the Cooperative’s total revenues in 2012. PRECorp saw a sales decline in 2012, with total sales down 5.8% when compared to 2011. The Coal Bed Methane rate classes dropped 16.1% from 2011 to 2012, and sales to the Coal Mines and Residential members

also fell. PRECorp continues to strive to keep your rates competitive during these uncertain times, while maintaining system reliability. PRECorp re-financed $14.4 million in long term debt in order to take advantage of more favorable interest rates, lowering the blended interest rate of those loans from 4.97% to 3.67%. As a result of this transaction, PRECorp will save approximately $1.4 million in interest expense over the next 20 years. - Floyd Kanode/Chief Financial and Administration Officer, PRECorp

PRECorp kWh Sales Since 2002 3,500,000,000 3,000,000,000

CBM Related Commercial

2,500,000,000 Other Commercial

2,000,000,000 1,500,000,000

Coal Mines

1,000,000,000 500,000,000

Residential / Irrigation












The chart above shows PRECorp kilowatt hour sales, over the past decade. The orange bar depicts CBM sales as part of the whole, which peaked in 2008, and is approaching its lowest level since 2006.

2011 & 2012 Comparative Statement of Operations






% of Revenue

$190,019,594 $ 179,159,059

Less: Cost of Purchased Power

$144,828,777 $ 137,942,103


Gross Margin

$ 45,190,817 $ 41,216,956


Less: Operating Expenses

$ 44,585,802 $ 40,599,927


Operating Margins


605,015 $


Plus: Interest and Other Income

$ 2,168,137 $


Plus: Capital Credit Allocations

$ 6,404,568 $



$ 9,177,720 $ 10,179,607

2012 operating Expense by category Tax Expense Other Deductions Transmission

Maintenance $3,398,313 Interest on Long-term Debt


Admin. & General Exp.

1 Customer 2 3 Service 4 5 and Informational

Customer Accounts



Other Commercial

20.05% Coal Mines



Coal Bed Methane

Customer Service and Informational Expense $81,154 0.18% Administrative and General Expense $5,664,905 12.71% Depreciation and Amortization $15,632,332



Customer Accounts $2,542,471 5.70%


Depreciation and Amortization

Revenue From Sales of Electricity* Residential

Transmission Expense $1,215,136 2.73% Operations $8,937,681


10 Tax Expense $484,376

35.06% 1.09%

Interest on Long-Term Debt and other $6,405,068 14.37% Other Deductions $224,365


Operating Expenses $44,585,802 100.0%








Coal Mines






Other Commercial





* This breakout of PRECorp’s revenue from sales of electricity does not include other non-sales revenue and is presented before the effect of revenue deferral.

2011 & 2012 Balance Sheet BALANCE SHEET


As of December 31



Utility Plant (net)

$ 200,325,109

$ 205,413,352

$ 97,273,874


94,345,854 29,822,234

Investments in Associated Organizations

Other Assets And Investments

Other Investments

$ 33,128,293


$ 130,402,167

$ 124,168,088

$ 19,969,430 $ 13,279,772 $ 449,210 $ 8,686,548 $ 210,503

$ $ $ $ $

7,949,976 13,035,848 536,260 10,527,660 156,026

Regulatory Assets

$ 42,595,463 $ -

$ $

32,205,770 114,936

Deferred Debits




Cash and Cash Equivalents Accounts Receivable (net) Other Accounts Receivable Materials and Supplies Other Current Assets

Current Assets

Total Assets


$ 373,448,495

$ 362,040,082



Long Term Debt (Net Of Current Maturities)



Other Non-Current Liabilities

$ 1,364,009

$ 2,035,538

Equity And Margins

Notes Payable Accounts Payable Other Current Liabilities Current Maturities of Long Term Debt

$ $ 14,397,520 $ 5,129,540 $ 5,758,200

$ $ 11,855,981 $ 5,849,321 $ 5,715,898

$ 25,285,260

$ 23,421,200

Regulatory Liabilities

$ 9,518,915


Deferred Credits

$ 33,756,849

$ 38,074,321



Current Liabilities

Total Equity And Liabilities


PRECorp Operating Expenses Per kWh Sold The cost of power has continued to increase since 2007, but PRECorp’s other expenses have remained relatively stable the past decade. Additionally, PRECorp’s total expenses per kilowatt hour sold, remain below national and state medians.

$0.12 Non-Operating Non-Operating Expenses Expense

$0.10 $0.08

Operating Expense Non-Operating (Other Than(Other Power) Expenses Than Power)


PurchasedPower Power Purchased Cost Cost

National Median National Median Total TotalExpense/kWh Expense/ Sold kWh sold

$0.04 $0.02

Wyoming WyomingMedian Median Total Expense / kWh Expense/kWh Sold Sold












PRECorp Service Territory


PRECorp Board of Directors Campbell County:

PRECorp Customer Mix

PRECorp Accounts By County for 2012


End of 2012

End of 2011




Don Hamm Tom Davis

Residential Seasonal




Crook County:





General Service




General Service CBM



























Philip Habeck, Secretary-Treasurer Paul Baker, Board Vice-President

Johnson County: Pam Kinchen Mike Lohse

Large Power

Sheridan County:

LPT Coal Mines

Dave Hoyt Leo Ankney

Weston County:

Reuben Ritthaler Walt Christensen, Board President

Large Power CBM

Street Lights TOTAL

Accounts Campbell












Montana Total

241 27,744


PRECorp awards 2013 college scholarships By Tim Velder, PRECorp Marketing and Communications Specialist The Powder River Energy Corporation Board of Directors has awarded fifteen $1,500 scholarships to local students in Campbell, Crook, Johnson, Sheridan, and Weston counties. The electric cooperative serves nearly 12,000 members in those northeastern Wyoming counties, and awards scholarships to students there as part of its community outreach program.

Buffalo High School Rex Yeigh, son of Gary Yeigh and Catherine Yeigh, of Buffalo, plans to attend the University of Wyoming in the fall.

Moorcroft High School Morghan West, daughter of William and Darla West of Oshoto, plans to attend Sheridan College in the fall.

Campbell County High School Mattie Hepp, daughter of Kevin and Debra Hepp of Gillette, attends Casper College.

Newcastle High School Jeremy Feist, son of Leonard and Denise Feist of Newcastle, plans to attend South Dakota School of Mines and Technology, in Rapid City, S.D.

McKenna McCreary, daughter of Tim and Lori McCreary of Gillette, plans to attend Black Hills State University in Spearfish, S.D.

The Board awards the scholarships based on the students’ community involvement and academic achievement.

Kearstin McClintock, daughter of Mark and Brigitte McClintock of Gillette, plans to attend Sheridan College in the fall.

The scholarships are awarded in two installments of $750 per semester. The announcement for next year’s Powder River Energy Corporation scholarship programs will be made in December.

Paden Bauder, son of Troy and Trena Bauder of Gillette, plans to attend Jamestown College in Jamestown, N.D. Hulett High School Korina Ike, daughter of Lyle Ike and Kaye Nelson-Ike, of Hulett, plans to attend the University of Wyoming in the fall.

This year’s recipients are as follows: Arvada-Clearmont High School Keely Rockafellow, daughter of David and Stacy Rockafellow of Clearmont, plans to attend Sheridan College in the fall.

Kaycee High School Sarah Carr, daughter of Fred and Jane Carr of Kaycee, attends Casper College.

Bailey Roebling, daughter of Gary and Cheryl Roebling, of Clearmont, plans to attend Sheridan College in the fall.

Upcoming Board meetings Because of scheduling conflicts with regional and national cooperative events, the Powder River Energy Board of Directors has moved its regular meeting dates for September and October.

The September meeting will be held Monday and Tuesday, September 23 and 24, in Sheridan. The October meeting will be held at 9:30 a.m. on Tuesday, October 22, in Sundance.

Kelsey Zerbst, daughter of Thomas and Jill Zerbst of Newcastle, plans to attend Headlines Academy of Rapid City. Sheridan High School Nate Kane, son of David and Teresa Kane of Decker, Mont., plans to attend the University of Wyoming in the fall. Sundance High School Jeremy Adams, son of Jerry and Vicky Adams of Sundance, attends South Dakota School of Mines and Technology, in Rapid City. Wright High School Brittany Belt, daughter of Glen and Nikki Belt of Wright, plans to attend Eastern Wyoming College in Torrington.

The Powder River Energy offices will be closed on Monday, September 2, in observance of Labor Day.

Need a ride to the annual meeting? • Call 1-800-442-3630.


CEO Straight Talk


m i k e e a s l e y, CEO

This month’s issue of the PRECorp News is largely focused on our Annual meeting which is being held in Hulett on August 24. I hope that you exercise your rights and responsibility as a member-owner of Powder River Energy Corporation by either voting by mail using the credentials provided with this issue of the WREN Magazine, or by showing up in person at Hulett.

Believe it or not, you can make difference. We can establish a quorum with our mail in balloting if 10% of our members vote. That means we need 1,203 votes to be cast by mail in ballot. We can also establish a quorum by having 100 members present at the Annual Meeting. While it might be tough to make the meeting, it’s easy to have your voice heard by mailing in your ballot.

We are not able to exercise the most fundamental and important principle of cooperative business without you being actively engaged. This is the cooperative principle of Democratic Member Control. There are many things that make the cooperative model special, but the right to have equal voting rights, regardless of size, is very special. The electric cooperative movement is one of the most amazing things in the history of our country. Never before have people banded together to change their life circumstances for the better than when our founders electrified northeast Wyoming.

Why not pick up the ballot and the envelope we have provided, take a minute and read the candidate profiles and vote for the directors of your choice. In addition to being an active member-owner and making your voice heard, you will be part of the group that comes off the sidelines and stands up to be counted. What an opportunity. What a responsibility. What a difference you can make!

“We are not able to exercise the most fundamental and important principle of cooperative business without you being actively engaged.” Unfortunately it is so easy to sit on the sidelines and let someone else do the work of being a cooperative member for you. Sometimes it works, and sometimes it does not. Last year is an example of when that did not work. You might recall that we were unable to establish a quorum last year, and because of that we were not able to convene our Annual Meeting or conduct any business including the election of our Board members.


The Annual Meeting will be a great event and I hope that you can attend. I will provide an update on our past year’s accomplishments, and discuss the upcoming rate increase that was highlighted in last month’s magazine. PRECorp continues to feel the headwinds created by the decline in CBM sales and the pressure being experienced by the coal industry due to a combination of market forces and regulatory hurdles. The PRECorp Team continues to work tirelessly on your behalf. Their efforts exemplify our mission of providing you competitively-priced electric power and services while enhancing the quality of life by providing leadership and service in our communities. I hope to see you at the Annual Meeting, and if you can’t make it, please take the time to vote and send in your ballot. Let your voice be heard!

Regular business: 1-800-442-3630 • Report an outage: 1-888-391-6220

Greater Hulett Community center 2013 voting designation forms

% Corporation Designation of Voting Representative , (Corporation Name) a member of Powder River Energy Corporation, is a corporation and does hereby designate and certify as their voting representative at the Annual Membership Meeting of Powder River Energy Corporation on August 24, 2013. I hereby certify that I am authorized by the corporation to make this designation: ATTEST: By , Corporation Secretary By , Corporation President

% Partnership Designation of Voting Representative , (Partnership Name) a member of Powder River Energy Corporation, is a partnership and does hereby designate and certify who is one of the partners, as their voting representative at the Annual Membership Meeting of Powder River Energy Corporation on August 24, 2013. ATTEST: By

, Partner


, Partner


, Partner


, Partner

% Spouse Designation of Voting Representative , (Print Name)













as my voting rep-

resentative at the Annual Membership Meeting of Powder River Energy Corporation on August 24, 2013. Attest: By , (Signature) By , (Witness)

2013 PRECORP Annual Meeting Details



10 am

Registration Begins

Notice is hereby given that the 2013 Annual Membership Meeting of Powder River Energy Corporation will be held in Hulett at the Greater Hulett Community Center on Saturday, August 24, 2013.

11 am

Entertainment by Paul Bogart

The order of business at the annual meeting and, so far as possible, at all other meetings of the members, shall be essentially as follows:

11:30 AM

Lunch is served

12:15 pm Business Meeting, Election results and door prizes

1. Report as to the number of members who are present in person in order to determine the existence of a quorum and the number of members represented by proxy.

Do you need a ride to the meeting? Call Pam Stinson at 1-800-442-3630 by Tuesday, August 13, 2013, to arrange transportation to the PRECorp Annual Meeting on August 24 in Hulett. Powder River Energy Corporation is a member-owned, not-for-profit electric utility serving the five northeast Wyoming counties of Campbell, Crook, Johnson, Sheridan and Weston. PRECorp has more than 160 employees and more than 12,000 members. Approximately 28,000 meters are served across more than 16,200 square miles of northeastern Wyoming and southern Montana.

Items will include: Call to order and Appointment of Recording Secretary

2. Reading of the notice of the meeting and proof of the due publication or mailing thereof, or the waiver or waivers of notice of the meeting, as the case may be.

Items will include: Introduction of the PRECorp Board and Recognition of Visitors and Guests

3. Approval of unapproved minutes of previous meetings of the members.

Will include approval of the minutes of the 2011 Annual Meeting.*

4. Presentation and consideration of all necessary reports of the Corporation.

Items will include: Treasurer's Report, President's Report, CEO's Report, Foundation Report and Special Presentations

5. Election of directors.

Items will include: Report of the Nominating Committee, Nominations from the Floor and Voting

6. Unfinished business. 7. New business. 8. Adjournment.

Will include prize drawings

* Because of a lack of a quorum at the 2012 meeting, 2011 business carries over to 2013.


board of directors mail-in ballot


Campbell County

johnson County

Weston County

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Gerry Geis Charlene Camblin Don Hamm

Joe Kalus Pam Kinchen Will Ramsbottom

Reuben Ritthaler Matt Stroh

Choose a candidate in each district regardless of what county you live in. Full candidate profiles are printed on pages 2, 3, and 4, in the PRECorp News section inside this magazine. Not a Valid Vote Without Signature To be valid, mailed ballots must be received by the end of the business day, Friday, August 23, 2013.