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Lines POWER September 2010

Official Publication of Powder River Energy Corporation

2010 Results of Rate Analysis & Cost of Service Study 2010 has held some unique challenges for PRECorp. Most of the challenges are those that have been expected; however, some challenges were not anticipated. One of the main goals of our mission as your cooperative is to provide high quality, low cost electricity. In order to increase operational efficiency, PRECorp filed a rate case with the Wyoming Public Service Commission. This rate case does not include an overall increase in our revenue requirements. With the assistance of the services of CH Guernsey & Company, PRECorp completed a Cost of Service Study (COSS) and rate analysis. PRECorp has worked with CH Guernsey on previous cost of service studies and has a 19 year history of working with the company. The purpose of the rate analysis and the Cost of Service Study is to examine the financial situation of the co-op as it currently stands, to look at any changes we have in the future as a company and to determine that each rate class is paying close to what it costs the company to provide them with electricity. The rate filing provided to the PSC will contain the following proposed revision to rates: •

No general system wide rate increase.

Rates rebased to reflect Basin Electric’s 2010 rates and the Cost of Power Adjustment reset to zero.

Necessary rate adjustments made to individual classes based on the COSS.

Increased Basic Charges based on the COSS and type of service.

Elimination of declining block rates for residential members.

The adjustment is contingent upon approval by the Wyoming Public Service Commission. If approved, changes will go into effect January 10, 2011. For more information on Powder River Energy’s 2010 Rate Analysis and Cost of Service Study please visit our website at Information will be updated on the site as the filing process continues.

Tune Up Your Furnace For Fall You can save energy this fall and winter by having your furnace tuned up. Electric, gas and propane furnaces can go approximately three to five years between service calls and longer, if you change the filters regularly. Oil furnaces need to be serviced once a year, because they get dirty and need annual adjustment. As many know, changing filters regularly is one of the key maintenance tasks to keep any type of furnace running efficiently. Make sure that you know where your furnace’s filter is located and what size it is. Inspect it periodically, and replace it when it is dirty. How frequently you need to change the filter depends on the amount of dirt in the house and around the furnace and also how much time the furnace runs. Duct air leakage is one of the largest energy-wasters in your heating system. Heating contractors can check your ducts for air leakage, and seal the biggest leaks. Contractors start by sealing the larger joints near the furnace, and then work out towards the branch ducts as access allows. Believe it or not, duct tape is not a good choice for sealing ducts because its adhesive usually fails after a short time. Duct mastic, available in cans or buckets, is an effective and permanent material for sealing duct air leaks.

Scholarship Winners PRECorp congratulates our 2010-2011 PRECorp Scholarship winners. Scholarships are awarded based on the following criteria: scholastic achievement, financial need, school Involvement, and community involvement.

This Year’s Scholarship Winners Are: Gillette Jacob DeMunbrun Brandi Hague Michelle Kirschenmann Lauren Pfenning Garrett Schweitzer Hulett Taylor Dawn Garman Moorcroft Alisha Gonzalez Sundance Kristina Ramos Buffalo Tyler Schanck Kaycee Kelly Curuchet Arvada Shelby Baumgartner Sirena Theresa Wilson Sheridan Rachael Terry Newcastle Megan Gordon Upton Sierra Jenkins


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. Back issues of the Power Lines can be found on Powder River Energy’s website at: Power Lines Editor: Kristin Kelly

Time of Day Rate Offered to PRECorp Members If you are worried about heating your home this winter and the amount of money it will take - then PRECorp and the Steffes Heating Systems have a solution for you! The Electrical Thermal Storage (ETS) heating system and our Residential Time of Day Rate. ETS is a technology that allows the customer to pay less for their heating energy. Working much like a thermos filled with hot coffee, ETS stores heat until it is needed. The ETS heater is heated with lower cost, offpeak electricity. That stored heat is then released whenever needed to maintain the desired room temperature. The heat is stored in special ceramic bricks and when these heating elements are energized during off-peak times, they produce heat to warm the room and store enough heat for use during the on-peak times. ETS systems are commonly used where power companies have off-peak electric rates, such as PRECorp’s Time of Day (TOD) Rate. You may be wondering how this will save you money. There is an initial investment when you purchase the ETS heaters, however, for most homeowners, the cost of upgrading to an ETS system more than pays for itself after just a few years (5-years or less)*. When you sign up for the TOD rate the electricity used during the months of September through May during the off-peak hours (10:01 pm-7:59 am) is billed at a lower per kWh charge (compared to the normal residential rate); any electricity used during the on-peak hours (8:00 am10:00 pm) will be billed at a slightly higher kWh charge (compared to the normal residential rate). During the summer months of June through August, all usage is billed at the regular residential rate . In conjunction with the installation of the ETS, simply running your appliances (i.e. dishwasher, washer, dryer, etc.) during the off-peak hours, could save you additional money without the worry of staying warm during the cold winter months. Call Customer Service at 1-800-442-3630 for more information and an information packet on the Time of Day rate. For information about Steffes ETS systems go to * (2010, August 05). Retrieved from


Official Publication of Powder River Energy Corporation For more information on Powder River Energy’s 2010 Rate Analysis and Cost of Service...

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