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Power Lines Official Publication of Powder River Energy Corporation

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Earlier this year I mentioned that Powder River Energy was working on a Cost of Service Study (COSS) and that we would be filing this with the Wyoming Public Service Commission (WPSC). We are expecting to make this filing sometime in August. We had hoped to make this filing earlier this year, but due to the press of other matters which included completion of the Line Extension Filing and the Economic Development program; we have not yet made the COSS filing. Powder River Energy has several modeling tools in its financial analysis tool kit and the COSS is one of those tools. In addition to the COSS Powder River Energy maintains a Long Range Financial Forecast which looks out about 10 years and an Annual Operating Budget which looks out one year. Both the Annual Operating Budget and the Financial Forecast look at Powder River Energy’s overall financial condition for that period and each of them forecasts revenues and expenses. As you know our primary source of revenue is from you. This revenue is received by your electric cooperative when you pay your monthly electric bill. Each customer’s electric bill is l based upon rates that have been developed through the Cost of Service Study process. Customers are grouped by customer classes. Customer classes are determined by customer usage patterns as well as how much of the Powder River Energy electrical system they use. For example, transmission customers like the coal mines are served at 69 KV and do not use the underlying distribution systems. The Cost of Service study is the tool we use to determine how much it costs to serve each class of customer as well as to determine how much revenue each customer class returns to Powder River Energy for the electric service we provide, and ultimately, the rate structure for each class. Once we complete our work on the Cost of Service Study it will be filed with, or presented to, the WPSC. The WPSC reviews our assumptions, our calculations, our proposed rates, and the various financial relationships between the various classes. The WPSC keeps their eye on these financial relationships to determine that no one class is being overcharged or undercharged. If and when this occurs it is called a cross-class subsidy. In most utilities the higher risk customers provide a slightly higher rate of return or some level of subsidy for the lower risk customers. In addition, industrial and commercial classes CEO Straight Talk continued on back page >>>

July, 2005

PRECorp 2005 Annual Meeting Powder River Energy’s 2005 Annual Membership Meeting will be held in Gillette on Saturday, September 24th. Plans are underway for a lunch, entertainment, director elections, and an informative business meeting. We will be providing complimentary bus transportation from Sheridan, Buffalo, Sundance, and Moorcroft to the Cam-Plex in Gillette. Watch for more details in the next issue of the Power Lines and in the Annual Membership Meeting Notice which will be mailed at the end of August. Power Lines A publication of Powder River Energy Corp. P. O. Box 930 Sundance, WY 82729 As an official publication of Powder River Energy Corporation, the purpose of Power Lines is to communicate to member/ customers information concerning their electric cooperative, and to offer suggestions and ideas regarding the safe, efficient, and economical use of electric energy. Back issues of the Power Lines can be found on Powder River Energy’s website at: community.cfm. Power Lines Editor: Mike Blenkush

>>> CEO Straight Talk continued from front page

have historically provided some level of subsidy to the other classes. This is also the case at Powder River Energy. Each time we complete a COSS and file new rates we address the financial relationships between the classes, we asses the various risks of serving customers, and we assign costs to the customer classes which represent the costs of serving those classes. Over the next month we will be completing the COSS work with the goal of an August filing with the WPSC. We will be discussing our initial results with the WPSC prior to our filing to make certain we can address their concerns before the actual filing. The Powder River Energy Board will also be very engaged in this process as they review the results and work with staff to develop our filing. I will report on this in more detail next month and hopefully I will have some numbers to share with you.

Outdoor Electric Safety Tips ♦

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Install waterproof covers on outdoor outlets and keep them closed when not in use. Also, make sure there are ground fault circuit interrupters (GFCI) on all outdoor outlets. Be sure your electric tools are double insulated or have a three-pronged plug. Do not adapt a threepronged plug to an ungrounded, two-hole receptacle. Do not fly kites near electric wires. If kite string gets caught in power lines, do not attempt to remove it. Call Powder River Energy to report it. Never climb a tree or utility pole near electric wires. Keep ladders, antennas and other conductive objects away from electric lines. If you do not know if the line or the object is conductive, play it safe and assume that it is. Never approach or touch downed power lines. Always assume that downed wires are energized and call Powder River Energy immediately.

Reducing The Cost Of Central Air Conditioning The best way to reduce air conditioning costs is to keep your home from heating up in the first place. Start by using low-cost cooling measures like window shading. Close your shades in the morning to limit window solar gain during the day. Exterior fabric sunscreens can also slow solar gain, and are inexpensive and easy to install. Close your windows and doors in the morning. Open them at night to cool the home. If everyone leaves during the day, turn the air conditioner thermostat up to save energy, or install a programmable thermostat that will adjust the temperature while your gone. Air-conditioner efficiency is also dependent upon routine maintenance. The difference between the energy consumption of a wellmaintained air-conditioning system and a severely neglected system ranges from 10 to 40 percent. • Clean or replace indoor filters every 1 to 4 months. These are located in either the furnace/air handler cabinet, or at a central return air grille. • Clean the fan blades of the indoor blower. If the blower is dirty, then the indoor evaporator coil is probably dirty too. You can see the blower by removing a panel on your furnace or air handler cabinet. • Clean the indoor evaporator coil and condensate pan every 2 to 4 years. Straighten any bent fins to improve airflow. • Clean room supply and return registers. Straighten their fins. • Remove plant matter and debris from around outdoor condenser. • Clean outdoor condenser coils every few years to remove dirt and pollen that robs efficiency. You'll also improve the efficiency of your central air conditioner by maintaining the proper refrigerant charge. This is a job for professionals.


Power Lines BY M IKE E ASLEY July, 2005OfficialPublicationofPowderRiverEnergyCorporation Visit us at: CEO Straight Talk con...