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Happy New Year!

Power Lines

Official Publication of Powder River Energy Corporation

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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: Power Lines Editor: Mike Blenkush

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January, 2006

PRECORP $CHOLARSHIPS AVAILABLE Each year Powder River Energy Corporation awards scholarships in the amount of $1,000 each to qualifying graduates of the thirteen high schools in its service territory (Arvada-Clearmont, Big Horn, Buffalo, Gillette, Hulett, Kaycee, Moorcroft, Newcastle, Sheridan, Sundance, Tongue River, Upton, and Wright). To be eligible to receive a scholarship the applicant’s parents or legal guardians must be members of and receive electric service from Powder River Energy. The applicant must be a student who is enrolled or plans to enroll in an accredited two-year college, four-year college, or vocational technical school. The scholarships are available to 2006 high school graduating seniors and to students who previously graduated from one of the thirteen high schools in Campbell, Crook, Johnson, Sheridan and Weston counties. Scholarship awards are based on academic excellence and financial need, and are selected by a committee designated by the board of directors of Powder River Energy. To apply, the student must satisfy the required criteria and complete the scholarship application, which can be obtained from the high school guidance office or directly from Powder River Energy offices and online at (applications for Basin Electric Power Cooperative's scholarship are also available at the guidance offices, online at, and at Powder River Energy business offices. For more information please contact Kristin Kelly, 1-800-442-3630, ext. 2362. Applications must be received by Powder River Energy no later than March 1, 2006.




The New Year is upon us and with that a fresh look at many of the things before us both personally and professionally. Most folks consider making resolutions, or promises to themselves on things they would like to improve upon in their lives. In the business world the coming of a new year is similar, although organizational changes are much slower and even harder to implement than personal changes. In the last few CEO Straight Talk articles, I explained some of the duties and the goals of the various departments in the Powder River Energy organization for the upcoming year. In the life of an organization such as Powder River Energy the budget process sets out many of the goals, or resolutions, for the New Year. If I were to sum up Powder River Energy’s efforts this next year, I would say that our mission to deliver high quality, low cost electricity to our memberowners while embracing our cooperative principles and values will remain unchanged. Our mission, or perhaps our Resolution to you is simple, and yes, even the same as last year. Unfortunately, the world in which we live, as well as the business climate in which Powder River Energy operates continues to change, to become more complex and to speed up. How we execute our mission and how you succeed in accomplishing one of your resolutions, even one you make every year, changes every year as circumstances require. I believe that 2006 will be a challenging year for the energy industry. It will start off with quite a stir as natural gas prices reach their peak and these costs work their way through the economy and eventually to the consumer’s pocket book. The story is the same for oil and the many products that are impacted by the cost of oil. I expect it will take a lot of effort on our part to continue to explain to you how Powder River Energy is impacted by Continued on back page >>>

>>> CEO Straight Talk continued from front these events and how we are not impacted by these events. Electric cooperatives are unique among electric utility business models, and Powder River Energy is very unique among electric cooperatives. One of the special things that make Powder River Energy different is our relationship with Basin Electric Power Cooperative, our supplier of wholesale electrical energy. Just as you are a member owner of Powder River Energy, your electric cooperative is a member owner of Basin. This month we will be experiencing one of the most unique benefits of our relationship with Basin and because of your membership in Powder River Energy you will see this benefit as well. The Board of Directors at Basin decided in December that it would refund a portion of the power bill that we paid in 2005. This refund is made possible by unanticipated revenue that Basin has received this past year. The decision was made to credit our wholesale power bill in the same year that the revenues were received, rather than to flow this revenue to the bottom line and eventually return them to Powder River Energy through the capital credit process. The Powder River Energy Board of Directors has decided that your electric cooperative will pass this credit on to you in a special bill credit check which will be paid in early January. This bill credit will put $4,298,447 back into the pockets of our members-owners. It will be allocated back to you based upon your contribution to the total electric energy Powder River Energy sold from November of 2004 through the end of October 2005. Passing on such a windfall is part of Powder River Energy embracing our cooperative principles and values. We hope that this sets the stage for things to come in 2006. Even though Powder River Energy is somewhat isolated from the roller coaster ride of energy prices that are driven by the costs of natural gas and oil, we will continue to keep you informed on what is happening in the industry. Thank you and have a Happy New Year!

Expect BIGGER Electric Bills During Winter Months It’s that time of year again! The change of seasons to colder weather means that you will use more electricity, which of course, results in higher electric bills. There are a variety of reasons why Average Monthly Kilowatt-hour Usage electricity usage increases in the winfor Residential Customers ter. Heating is a major factor. If you have electric heat, or use electric 1600 space heaters, your electricity usage and electric bill can double and even 1400 triple during the winter months. The 1200 accompanying graph shows the average monthly kilowatt-hour usage for 1000 residential customers on Powder 800 River Energy Corporation’s system and the effect of the winter heating 600 season. Your electric water heater works 400 more in the winter, because people 200 use more hot water and the incoming 0 water is colder. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr il May Shorter days and longer evenings require more lighting and an increase in other indoor activities, such as television viewing. There is a tendency to cook more hot meals at this time of the year. Also, because of the holidays, larger meals, extra baking, cleaning and visitors will affect your monthly electric bill. If you become aware of the different factors that can increase your electric bill now, the larger winter bills won’t come as a surprise later.

Statement of Nondiscrimination Powder River Energy Corporation is the recipient of Federal financial assistance from the Rural Utilities Service (RUS), an agency of the U.S. Department of Agriculture, and is subject to the provisions of Title VI of the Civil Rights Act of l964, as amended, Section 504 of the Rehabilitation Act of l973, as amended, the Age Discrimination Act of l975, as amended, and the rules and regulations of the U.S. Department of Agriculture which provide that no person in the United States on the basis of race, color, national origin, age, or handicap shall be excluded from participation in, admission or access to, denied the benefits of, or otherwise be subjected to discrimination under any of this organization’s program or activities. The person responsible for coordinating this organization’s nondiscrimination compliance efforts is Larry Kreuter, Manager of Human Resources. Any individual, or specific class of individuals, who feels that this organization has subjected them to discrimination may obtain further information about the statutes and regulations listed above from and/or file a written complaint with this organization; or the Secretary, U.S. Department of Agriculture, Washington, D.C. 20250; or the Administrator, Rural Utilities Service, Washington, D.C. 20250. Complaints must be filed within l80 days after the alleged discrimination. Confidentiality will be maintained to the extent possible.


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