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NOVEMBER 2007 Official Publication of Powder River Energy Corporation

Upcoming Rate Adjustment Powder River Energy Corp. will implement our first residential/seasonal rate increase since 2000 in January of 2008. We value you as a member and place a strong emphasis on providing you with exceptional service. To maintain the quality, reliability and integrity of the services we provide it is necessary for us to adjust our pricing structure. While virtually all aspects of today’s cost of living continue to rise, we pride ourselves on avoiding routine price adjustments. PRECorp and its members have enjoyed one of the longest periods of rate stability in recent history. We only consider an adjustment when we really have to. The increase is based on a cost of service study performed by a third party for Powder River Energy in 2007. The study showed that some of our rate classes were being subsidized by others and needed to be adjusted. Also, the Wyoming Public Service Commission, in our last rate filing, issued an order to PRECorp directing us to develop a plan to bring members to cost of service. In addition to the distribution rate adjustment discussed above, our power supplier Basin Electric has notified us of an increase in wholesale rates for 2008. We have estimated the impact of the wholesale rate increase to be about $9.5 million or an increase of 10.82 % in wholesale power costs. PRECorp will file with the PSC to recover this increase in wholesale power cost through its Cost of Power Adjustment later this year. The changes mentioned above will result in an increase to a residential member using 1200 kWh per month of $7.38 per month. This includes an increase of $4.46 in wholesale power costs which are a pass through of our wholesale power costs and an increase of $2.92 in retail distribution costs which represent PRECorp’s cost of getting the power delivered to you. Maintaining dependable service at the most affordable price possible remains the cornerstone of our business. To accomplish the goal, we must also protect the integrity and financial stability of our organization. While rate adjustments are never easy, we have experienced a six year period where our power costs have been declining or remained stable - resulting in savings that we have been able to use to hold our prices at their current level and pass on some of these savings to you. If you have any questions or concerns regarding the implementation of this rate adjustment, we encourage you to call our offices at 800-442-3630. We will do our best to answer your questions and we look forward to working with you on ways that you may be able to reduce your monthly bill; one strategy maybe to implement energy efficiency programs in your home or to calculate your energy use then budget that use.

Make the change of season safely Christine Grammes

As the leaves change to their beautiful autumn hues and the weather gets colder, keep in mind the following electrical safety tips for the change of season: • Make sure space heaters are in good repair and certified by an independent testing lab such as Underwriters Laboratories (UL). Also check that power cords are not frayed, cracked or cut. • Do not use an extension cord to power a space heater. Plug directly into the electrical outlet. Make sure the circuit can handle the power demands of the space heater and any other appliances plugged into it. • Keep space heaters at least three feet away from flammable materials such as curtains, draperies, loose paper and upholstery. Keep space heaters out of reach from small children and pets. Never use heaters as drying racks. • Space heaters should have an automatic shut-off in the event they tip over. • If the heater is running on fuels such as gas, kerosene or wood, follow manufacturer’s instructions carefully. Make sure carbon monoxide detectors are installed. Keep chimneys and flues free from corrosion or blockages. • Check to see if electric blankets are in good repair and certified by an independent testing lab like UL. Do not tuck your electric blanket under the mattress and don’t put anything on top of the blanket. Do not allow pets to sleep on electric blankets. • Check cold weather tools, like leaf and snow blowers, to ensure power cords are in good repair. Extension cords need to be approved for outdoor use. • Use only weatherproof outdoor electrical appliances for outdoor activities. Christine Grammes is a freelance writer specializing in energy and cooperative affairs. Source: Electrical Safety Foundation International

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PRECorp Foundation Awards First Grant In February of this year Powder River Energy Corp. established the Powder River Energy Foundation. The Foundation is designed to provide financial assistance to individuals and organizations in northeast Wyoming. The Foundation cannot donate to any political causes; rather it is set up for charitable giving only. Initial funding for the Foundation has come from Operation RoundUp®. Operation RoundUp® allows PRECorp members to have their bills rounded up to the nearest dollar each month. Those monies are then used to award grants to individuals and charitable organizations throughout PRECorp’s service territory. Currently, over 650 members are participating in the Operation RoundUp® program. At the September PRECorp Foundation board meeting the first ever Powder River Energy Foundation grant was awarded to Easter Seals-Goodwill Northern Rocky Mountain, Inc. The group is in the process of building ten 1-bedroom accessible apartments that will provide independent living options for people with acquired head injuries and developmental disabilities and a five bedroom family style supported living home which will serve this same population. While the majority of the funding will come from a HUD grant for the actual buildings, the grant requires a show of support from other sources. The PRECorp Foundation approved a $2,000 donation to the project to show our local support. Foundation grant applications for individuals and organizations can be found on the PRECorp website,, or at any of PRECorp’s three offices in Sundance, Sheridan and Gillette. For more information on the Foundation contact JoAnn Hoffine at extension 4904. To participate in Operation RoundUp® simply check the box on your payment stub, call our customer service department at 800-442-3630 or visit our website,

For information on Powder River Energy Corp.’s proposed changes to our CBM Line Extension Policy with the Wyoming Public Service Commission please visit our website at; News; Stakeholder Info. Copies of the information are also available at our offices in Sherican, Gillette and Sundance.

POWER Lines A publication of Powder River Energy Corporation 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.

An article in the October issue of Power Lines indicated the last residential and seasonal rate increase for PRECorp members occurred in 1991. The correct date is 2000. We apologize for the error.

Back issues of the Power Lines can be found on Powder River Energy’s website at: Power Lines Editor: Doreen Schaar


visit us at: for outdoor use. • Use only weatherproof outdoor electrical appliances for outdoor activities. Christine Gramm...