precorp-2011-copa-application-with-testimony-and-exhibits by Powder River Energy Corporation

ANNUAL APPLICATION TO ESTABLISH COST OF POWER ADJUSTMENT FOR 2011 Docket No. 10014‐123‐CP‐10 November 5, 2010

POWDER RIVER ENERGY CORPORATION COST OF POWER ADJUSTMENT (COPA) FOR 2011 Docket No. 10014‐123‐CP‐10 November 5, 2010

TABLE OF CONTENTS APPLICATION TESTIMONY – DAVID W. HEDRICK, C. H. GUERNSEY & COMPANY EXHIBITS: Exhibit A‐1

Calculation of COPA Factor for 2011

Exhibit A‐2

Calculation of Increased COPA Revenue

Exhibit B‐1

Projected Purchased Power Cost for 2011

Exhibit C‐1

Projected Power Cost for 2011 for LP Transmission Class

Exhibit C‐2

Projected Power Cost for 2011 for LP Transmission ‐ CBM Class

Exhibit D

Summary of COPA Over/Under Recovery for the period October 2009 through September 2010

Exhibit E

Calculation of COPA Over/Under Recovery for October 2009

Exhibit F

Calculation of COPA Over/Under Recovery for November 2009

Exhibit G

Calculation of COPA Over/Under Recovery for December 2009

Exhibit H

Calculation of COPA Over/Under Recovery for January 2010

Exhibit I

Calculation of COPA Over/Under Recovery for February 2010

Exhibit J

Calculation of COPA Over/Under Recovery for March 2010

Exhibit K

Calculation of COPA Over/Under Recovery for April 2010

Exhibit L

Calculation of COPA Over/Under Recovery for May 2010

Exhibit M

Calculation of COPA Over/Under Recovery for June 2010

Exhibit N

Calculation of COPA Over/Under Recovery for July 2010

Exhibit O

Calculation of COPA Over/Under Recovery for August 2010

Exhibit P

Calculation of COPA Over/Under Recovery for September 2010

Exhibit Q

Actual Purchased Power Cost for Twelve Months Ending September 30, 2010

Exhibit R‐1

Actual Purchased Power Cost for the LPT Class for the Twelve Months Ending September 30, 2010

Exhibit R‐2

Actual Purchased Power Cost for the LPT‐CBM Class for the Twelve Months Ending September 30, 2010

Exhibit S

Summary of Monthly kWh and COPA Revenue for the Twelve Months Ending September 30, 2010

Exhibit T

Statement of Operations

TARIFF RATE RIDERS

BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF WYOMING

IN THE MATTER OF THE APPLICATION OF POWDER RIVER ENERGY CORPORATION, SUNDANCE, WYOMING, FOR AUTHORITY TO INCREASE ITS COST OF POWER ADJUSTMENT BY $9,269,753 PER ANNUM TO REFLECT AN INCREASE IN WHOLESALE POWER COSTS

) ) ) ) ) )

DOCKET NO. 10014-123-CP-10

APPLICATION Powder River Energy Corporation (the Cooperative) respectfully submits for Commission approval its application for authority to adjust its Cost of Power Adjustment (COPA) pursuant to §§ 249 and 250 of the Rules of the Wyoming Public Service Commission (Rules) and in accordance with the COPA procedures set forth in the Cooperative’s Billing Adjustments (BA) Tariff. The Cooperative implemented a Cost of Power Adjustment as part of its general rate filing in 2001 (Docket No. 10014-CR-01-53). The COPA is a mechanism by which the Cooperative recovers and/or returns changes in wholesale power cost relative to the amount of power cost embedded in base retail rates. The COPA has been adjusted annually since its inception. The current COPA became effective on January 10, 2010 (Docket No. 10014-113-CP-09). The Commission is currently considering the Cooperative’s general rate application, Docket No. 10014-118-CR-10.

As part of that docket, the COPA was

adjusted to reflect a revised base power cost. The proposed COPA factor for 2011 in this application has been designed based upon the base power cost as proposed in Docket No. 10014-118-CR-10.

The proposed COPA factors in this application reflect the projected cost of power for 2011, using projected billing units for the period and the applicable wholesale rates effective for 2011. The proposed COPA factors also reflect the reconciliation of the COPA revenue for the months of October 2009 through September 2010 and the accrual of interest on any over-recovered balances during the true-up period. The COPA factors proposed in this application and the resulting increase in revenue are listed below: COPA Factor Under New Rates

Proposed COPA Factor

All Rate Classes except for LPT and LPT-CBM

$0.0000

$0.002797

$4,351,268

LPT

$0.0000

$0.003483

$4,334,827

LPT-CBM

$0.0000

$0.003677

$ 583,658

Change in Revenue

The net increase in revenues resulting from the proposed changes to the Cooperativeâ&#x20AC;&#x2122;s COPA factors is $9,269,753, as shown in Exhibit A-2. In support of this application, the Cooperative states: 1.

Company Operations. The Applicant is a non-profit cooperative electric

utility organized and existing under, and by virtue of, the laws of the State of Wyoming. The Cooperative, pursuant to the laws of the State of Wyoming, is qualified to do business as a corporation within the State of Wyoming. The Cooperative is duly authorized to generate, manufacture, purchase, acquire, and transmit electric energy; sell supplies; and dispose of electric energy in its certificated territory. The rates charged by the Cooperative for its electric service have been established and placed in effect under appropriate Orders of the Commission.

Authority. This Application is filed pursuant to Wyoming Statute § 37-3-

106, §249 and §250 of the Rules and the current COPA procedures set forth in the Cooperative’s Billing Adjustments (BA) Tariff (Original Sheets 34 through 38, pending approval in Docket No. 10014-118-CR-10). 3.

Test-Year. The test year for this application is based on projected sales

for the twelve (12) months ending December 31, 2011. 4.

Wholesale Power Supply. The Cooperative is a Class A member of

Basin Electric Power Cooperative (Basin Electric), in Bismarck, North Dakota, and purchases all of its power requirements through agreements and contracts with Basin Electric. The Cooperative has an all requirements contract with Basin Electric that extends through December 31, 2057. 5.

Purchased Power Costs for 2011.

The Cooperative’s projected

purchased power cost for 2011 is calculated to be $134,944,113, as shown in Exhibit B1. Of this total amount, $54,446,288 and $6,718,259 are the projected power costs for the LPT and LPT-CBM rate classes respectively, as shown in Exhibits C-1 and C-2. The Cooperative’s projected power cost is based on the Cooperative’s projected demand and energy purchases for 2011 and was calculated using Basin Electric’s published Class A rates, Basin Electric’s Hybrid rate for Western Division purchases, and the Western Area Power Administration’s (WAPA) rates for 2011. The projected power cost for 2011 reflects an increase in Basin Electric’s Class A rates and its Hybrid rates. For the test year, the Cooperative’s average wholesale power cost is projected to increase to 43.48 mills per kWh, compared to the projected 2010 average of 40.10 mills per kWh.

Cost of Power Adjustment. The proposed Cost of Power Adjustment for

2011 is equal to the sum of the recoverable power cost for 2011 and the over/under recovery for the 2010 true-up period. The recoverable power cost for 2011 is calculated by taking the difference between the projected power cost for 2011 and the base cost of power recovered through the Cooperative’s retail rates. Adding the over-recovery from the 2010 true-up period to the recoverable power cost for 2011 results in a total projected Cost of Power Adjustment of $9,269,753, as shown below: Recoverable Power Cost for 2009

$ 10,821,852

Over Recovery from True-up Period

(1,552,099)

Total Cost of Power Adjustment

$ 9,269,753

Of this total, $4,351,268 is associated with all rate classes other than the LPT and LPT-CBM rate classes (Exhibit A-1, Line 10); $4,334,827 is associated with the LPT rate class (Exhibit A-1, Line 19); and $583,658 is associated with the LPT-CBM rate class (Exhibit A-1, Line 28). The cost of power is calculated separately for the Cooperative’s two large power transmission rate classes in order to accurately reflect the assignment of wholesale power costs to each class. Basin Electric’s Class A rate is applicable to wholesale purchases for the large power transmission classes. These rate classes have a high load factor and comprise a substantial percentage of the Cooperative’s total load. The metering utilized for these classes allows for a more direct and accurate assignment of the wholesale power costs. Separate COPA factors are necessary to track the change in power cost for these classes relative to the base power cost included in the base retail rates.

COPA Over/Under Recovery. The proposed COPA for 2011 includes a

reconciliation of COPA revenues for the months of October 2009 through September 2010. During this period, the Cooperative recovered $33,307,812 from its members through the COPA, based on the difference between the projected cost of power for the period and the base cost of power recovered in the retail rates. In addition, $1,060,370 was passed back to the Cooperativeâ&#x20AC;&#x2122;s members that related to the true-up of a prior twelve (12) month period. Therefore, the total net amount recovered through the COPA during the current true-up period was $32,247,442. The actual COPA revenue collected in the twelve (12) month true-up period is summarized on Exhibit S. Exhibits E through P show the calculations of the COPA over/under recovery for each month in the true-up period. These calculations are summarized on Exhibit D. Additionally, Exhibit D shows the accrual of interest on any monthly over-recovered balance in the true-up period and the total over or under recovered balance for the rate classes during the twelve (12) month true-up period. The total system over-recovery for this time frame is $1,552,099 and is included in the calculation of the COPA factors for 2011 (Exhibit A-1). Of this amount, $1,547,063 is an over-recovery from all customers other than the LPT and LPT-CBM rate classes; $13,437 is an under-recovery from the LPT rate class; and $18,474 is an over-recovery from the LPT-CBM rate class. 8.

Supporting Documentation. The Cooperative submits the testimony of

Mr. David W. Hedrick and Exhibits A through T in support of this application. 9.

Tariff Rate Riders.

The proposed Tariff Rate Riders are included

following the exhibits.

10.

Contacts.

Communications in regard to this Application are to be

addressed to Mr. Michael E. Easley, Chief Executive Officer for the Applicant, Post Office Box 930, Sundance, Wyoming 82729; Mr. Mark L. Hughes, Attorney for the Applicant, Post Office Box 456, Sundance, Wyoming 82729 and Mr. David W. Hedrick, C. H. Guernsey & Company, 5555 North Grand Boulevard, Oklahoma City, OK 731125507. WHEREFORE, the Cooperative respectfully requests that the Commission, in accordance with Wyoming statutory provisions and the Commissionâ&#x20AC;&#x2122;s rules, enter an order effective January 10, 2011, authorizing the Cooperative to implement the proposed adjustments to its Cost of Power Adjustment for 2011 for billing on or after January 10, 2011. Dated at Sundance, Wyoming this 5th day of November 2010. POWDER RIVER ENERGY CORPORATION

Michael E. Easley Chief Executive Officer

BEFORE THE WYOMING PUBLIC SERVICE COMMISSION DIRECT TESTIMONY OF DAVID W. HEDRICK C. H. GUERNSEY & COMPANY OKLAHOMA CITY, OKLAHOMA ON BEHALF OF POWDER RIVER ENERGY CORPORATION, INC.

Please state your name and business address.

My name is David W. Hedrick and my business address is 5555 North Grand Boulevard,

Oklahoma City, Oklahoma 73112-5507.

By whom are you employed and what is your position?

I am employed by C. H. Guernsey & Company, Engineers, Architects and Consultants. I

am a Vice President of the Company, and I work primarily in the area of Electric Rate

Analysis.

Please summarize your educational and professional background.

I have earned a Bachelor of Science degree from the University of Central Oklahoma and

an M.B.A. degree from Oklahoma City University. I have been employed by C. H.

Guernsey & Company since 1981.

Have you previously testified before regulatory commissions?

Yes. I have testified before the Arizona Corporation Commission, the Public Utility

Commission of Texas, the Oklahoma Corporation Commission, the Arkansas Public

Service Commission and the Wyoming Public Service Commission.

Whom do you represent in this proceeding?

I represent Powder River Energy Corporation (“PRECorp” or the “Cooperative").

Powder River Energy Corporation

Direct Testimony of David W. Hedrick

What is the purpose of your testimony?

I will provide testimony describing the purpose and development of the Cost of Power

Adjustment (COPA) for 2011.

What is the purpose of the Cost of Power Adjustment?

The COPA provides a mechanism by which the Cooperative can recover/return changes

in power cost increases or decreases relative to the amount of power cost embedded in

the base retail rates. The change in power cost can be a result of an actual change in the

wholesale rates charged by the Cooperativeâ&#x20AC;&#x2122;s power supplier or as a result of increased

growth which may result in a lower average cost per kWh. The COPA ensures that the

Cooperativeâ&#x20AC;&#x2122;s margins are not affected by changes in the wholesale cost of power and

that any increases or decreases in cost are passed on to the members of the system.

Please describe the general process involved in developing the COPA for 2011.

The calculation of the COPA factor to be applied in 2011 is the sum of two components:

the projected over/under recovery of power cost for 2011, plus a true-up of the over/

under recovery for the prior twelve (12) month period. The projected power cost is based

on the wholesale rates applicable in 2011, multiplied by the projected billing units for

2011. The prior period over/under recovery is determined based on the actual COPA

revenue recovered compared to the actual recoverable power cost. In compliance with

the Wyoming Public Service Commission rules, an interest component has been added to

each month in the prior period when the Cooperative was in an over-recovered position.

Please describe Exhibit A-1.

Exhibit A-1 is the summary schedule showing the development of the proposed 2011

COPA factor for the three customer groups: Remainder of System, Large Power

November 2010

Powder River Energy Corporation

Direct Testimony of David W. Hedrick

Transmission, and Large Power Transmission – Coal Bed Methane. The projected power

cost for the three groups is developed on Exhibits B-1, C-1 and C-2. The base power cost

in rates (per unit rates) is the amount included in the Cooperative’s proposed Billing

Adjustment (BA) tariff in the currently pending Docket No. 10014-118-CR-10. The base

power cost in rates multiplied by the projected kWh and kW sold produces the base

power cost in rates in dollars. This amount is subtracted from the projected power cost to

determine the recoverable power cost. The over/under recovery for the prior period is

added to the recoverable power cost to determine the total amount to include in the

COPA for 2011. This amount is divided by the total projected kWh to determine the

factor to be applied.

Please describe Exhibit A-2.

Exhibit A-2 shows the calculation of the increased COPA revenue resulting from the

application of the proposed COPA factor for 2011. The increased revenue is calculated

by applying the change in the COPA factor to the projected kWh sold for 2011. The total

increase in revenue is $9,269,753.

17 18

Please describe the development of the projected power cost shown on Exhibits B-1, C-1 and C-2?

Exhibit B-1 is the calculation of the projected total 2011 power cost for the system. The

projected billing units were developed by the Cooperative based on the projected demand

and energy requirements for 2011. The wholesale rates used to develop the projected

power cost are the actual rates to be applied in 2011, which include Basin Electric’s

published Class A rates, Basin Electric’s hybrid rate for Western Division purchases, and

November 2010

Powder River Energy Corporation

Direct Testimony of David W. Hedrick

the Western Area Power Administration’s (WAPA) rates, which apply to the small

WAPA allocation that the Cooperative receives through Basin Electric.

Exhibit C-1 shows the calculation of the projected power cost for the Large Power

Transmission class based on the projected billing units for 2011 and the effective Basin

rate to be applied in 2011. Exhibit C-2 shows the calculation of the projected power cost

for the Large Power Transmission – Coal Bed Methane class based on the projected

billing units for 2011 and the effective Basin rate to be applied in 2011.

What are the primary changes in the power cost projections for 2011?

The power cost projections for 2011 reflect a wholesale rate increase from Basin Electric.

This wholesale rate increase result in an overall increase in power cost for the projected

test year of $10,360,051 or 8.32%.

What is the projected increase in COPA revenue?

The application of the proposed COPA for 2011 results in an increase in COPA revenue

of $9,269,753. Exhibit A-2.0 shows the change in both the power cost component and

the (over)/under recovery component of the COPA factors.

Please describe the Summary of COPA Over/Under Recovery shown on Exhibit D.

Column (a) of Exhibit D is the number of days in the month for purposes of calculating

the interest on any over-collected balance. Column (b) provides the summary of the

actual over/under recovery for the months of October 2009 through September 2010, as

developed on Exhibit E through Exhibit P for each individual month. Column (c) is the

component of the COPA revenue for the prior year true-up. Column (d) is the sum of the

prior month’s total over/under recovery (which includes interest) plus column (b) and

column (c).

Column (d) is the amount upon which monthly interest is calculated.

November 2010

Powder River Energy Corporation

Direct Testimony of David W. Hedrick

Column (e) is the applicable interest rate for the period. Column (f) is the calculation of

interest based upon the balance in column (d), the number of days in column (a) and the

interest rate in column (e). Column (g) is the sum of columns (d) and (f).

What does the September 2010 balance for each of the three groups represent?

The balance at September 2010 represents the amount by which the COPA is over/under

recovered for the customer group. The September 2010 balances shown on Schedule D

are included in the calculation of the 2011 COPA factor on Schedule A-1.0 as a

over/under recovery amount for the prior period.

10 11

Please describe the development of the monthly over/under recovery as shown on Exhibits E through P.

The summary of the actual power cost for the three different groups is shown on Exhibits

Q, R-1 and R-2. The base power cost in rates (per unit rates) is the amount included in

the Cooperativeâ&#x20AC;&#x2122;s Billing Adjustment (BA) tariff. This base power cost multiplied times

the actual kWh sold for the period determines the actual base power cost (in dollars).

The actual power cost less the base power cost in rates provides the recoverable power

cost for the period. The recoverable power cost less the actual COPA revenue provides

the amount of the over/under recovery for the period.

19 20

available? A.

21 22 23

Has the Cooperative confirmed that the power cost as projected represents the best option

The Cooperative has a long-term all requirements purchase agreement with Basin Electric and therefore does not have the ability to choose a different power supplier.

What financial information has the Cooperative provided as an indication of the current financial condition of the Cooperative?

November 2010

Powder River Energy Corporation

Direct Testimony of David W. Hedrick

Exhibit T is an income statement comparing three different periods: the year 2009; the

adjusted 2009 test period in open Docket No. 10014-118-CR-10; and the 2011 budget

period which includes the proposed 2011 COPA. The operating margins and financial

ratios are similar for all three periods and clearly indicate that the Cooperative is not in an

over-earnings position.

Does this conclude your testimony?

Yes, it does.

November 2010

Exhibit A-1 New COPA 2011 POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA FACTOR FOR 2011

Amount 1 2 3 4

Remainder of System Projected Cost of Power for 2011 (Exhibit B-1, Page 2) Less: Projected LPT Power Cost (L12) Less: LPT CBM Power Cost (L21) Remainder System Power Cost

134,944,113 54,446,288 6,718,259 73,779,565

5 Base Power Cost In Rates $/kWh Sold (Proposed tariff) 6 Projected kWh Sold for 2011 7 Base Power Cost in Rates $

0.043640 1,555,482,000 67,881,234

8 Recoverable Power Cost (L4 - L7) 9 (Over)/Under Recovery for 2010 (Exhibit D) 10 Total Amount to Include in COPA for 2011

5,898,331 -1,547,063 4,351,268

11 Calculated COPA Factor for 2011 (L10/L6)

0.002797

12 13 14 15 16

Large Power Transmission - LPT Projected LPT Power Cost for 2011 (Exhibit C-1) LPT Base Power Cost In Rates: (Proposed tariff) Base Demand Charge NCP Billed @ Meter Base Energy Charge kWh Billed @ Meter Total LPTC Base Power Cost in Rate

Projected Billing Unit 54,446,288 2,511,534 1,244,598,000

9.47 0.021164

17 LPT Recoverable Power Cost (L12 - L16) 18 (Over)/Under Recovery for 2010 (Exhibit D) 19 Total Amount to Include in LPT COPA for 2011 20 LPT COPA Factor for 2011 (L19/ kWh Sold for Class) Large Power Transmission - LPT-CBM 21 Projected LPT Power Cost for 2011 (Exhibit C-2) 22 LPT Base Power Cost In Rates: (Proposed tariff) 23 Base Demand Charge CP Billed @ Meter 24 Base Energy Charge kWh Billed @ Meter 25 Total LPTC Base Power Cost in Rate

4,321,389 13,437 4,334,827 1,244,598,000

0.003483

6,718,259 220,978 158,730,000

26 LPT Recoverable Power Cost (L21 - L25) 27 (Over)/Under Recovery for 2010 (Exhibit D) 28 Total Amount to Include in LPT COPA for 2011 29 LPT COPA Factor for 2011 (L28/ kWh Sold for Class)

23,784,227 26,340,672 50,124,899

12.29 0.021422

2,715,814 3,400,314 6,116,128 602,132 -18,474 583,658

158,730,000

0.003677

POWDER RIVER ENERGY CORPORATION CALCULATION OF INCREASED COPA REVENUE

Rebased COPA In Approved New Rates

Proposed COPA

Change in COPA

Projected kWh

Change $

Total COPA Remainder of System

0.000000

0.002797

1,555,482,000

4,351,268

Large Power Transmission

0.000000

0.003483

1,244,598,000

4,334,827

Large Power Transmission CBM

0.000000

0.003677

158,730,000

583,658

2,958,810,000

9,269,753

Total Power Cost Component Remainder of System

0.000000

0.003792

1,555,482,000

5,898,332

Large Power Transmission

0.000000

0.003472

1,244,598,000

4,321,389

Large Power Transmission CBM

0.000000

0.003793

158,730,000

602,132

Total

10,821,852

(Over)/Under Recovery Component Remainder of System

0.000000

(0.000995)

1,555,482,000

Large Power Transmission

0.000000

0.000011

1,244,598,000

Large Power Transmission CBM

0.000000

(0.000116)

Total

158,730,000

(1,547,063) 13,437 (18,474) (1,552,099)

Exhibit A-2

POWDER RIVER ENERGY CORPORATION PROJECTED PURCHASED POWER USING 2011 BASIN RATE FOR ALL BASIN LOAD FOR THE TWELVE MONTHS ENDING DECEMBER 31, 2011

January

February

March

April

May

June

July

August

September

October

November

December

Total

0 0

634,722 31,609

634,722 31,609.00

10,880 7,465,783

9,492 5,847,496

9,575 6,367,818

8,914 5,848,564

9,595 6,152,717

10,728 7,028,196

13,037 8,752,288

10,277 6,952,354

7,938 5,122,650

10,230 6,803,774

10,400 6,717,547

10,718 7,425,636

121,784 80,484,823

WAPA Billing Calculation Demand Billing Energy Billing Total

59,078.40 154,616.37 213,694.77

51,541.56 121,101.64 172,643.20

51,992.25 131,877.51 183,869.76

48,403.02 121,123.76 169,526.78

52,100.85 127,422.77 179,523.62

58,253.04 145,553.94 203,806.98

70,790.91 181,259.88 252,050.79

55,804.11 143,983.25 199,787.36

43,103.34 106,090.08 149,193.42

55,548.90 140,906.16 196,455.06

56,472.00 139,120.40 195,592.40

58,198.74 153,784.92 211,983.66

661,287 1,666,841 2,328,128

BASIN Projected kW Purchased Projected kWh Purchased

399,825 270,528,019

409,957 248,681,922

400,647 261,688,340

378,293 244,605,110

376,785 238,804,080

342,112 221,555,256

352,030 233,941,084

350,980 234,303,216

359,095 233,033,211

360,733 239,569,162

378,040 250,533,410

403,254 265,820,758

4,511,751 2,943,063,568

13.32 0.02284 0.00000 0.00000

5,325,669.00 101,262.00 6,178,859.95 12,000.00 0.00

5,460,627.24 104,279.00 5,679,895.10 12,000.00 0.00

5,336,618.04 84,856.00 5,976,961.69 12,000.00 0.00

5,038,862.76 85,953.00 5,586,780.71 12,000.00 0.00

5,018,776.20 71,194.00 5,454,285.19 12,000.00 0.00

4,556,931.84 71,824.00 5,060,322.05 12,000.00 0.00

4,689,039.60 66,675.00 5,343,214.36 12,000.00 0.00

4,783,145.40 76,503.00 5,322,478.54 12,000.00 0.00

4,804,963.56 73,218.00 5,471,759.66 12,000.00 0.00

5,035,492.80 86,905.00 5,722,183.08 12,000.00 0.00

5,371,343.28 85,745.00 6,071,346.11 12,000.00 0.00

-18,937.00 11,598,853.95

-17,408.00 11,239,393.34

-18,318.00 11,392,117.73

-17,122.00 10,706,474.47

-16,716.00 10,539,539.39

-15,509.00 9,685,568.89

-16,376.00 10,094,552.96

4,675,053.60 69,446.00 5,351,485.45 12,000.00 0.00 87,000.00 -16,401.00 10,178,584.05

-16,312.00 10,177,814.94

-16,770.00 10,345,171.22

-17,537.00 10,839,043.88

-18,607.00 11,521,827.39

60,096,523 977,860 67,219,572 144,000 0 87,000 -206,013 128,318,942

12,959 7,806,198

12,049 6,887,133

11,574 7,093,419

10,721 6,252,079

9,725 6,180,207

9,641 5,756,193

10,484 6,321,403

10,274 6,256,425

9,904 6,466,538

10,893 5,780,417

11,178 6,033,700

11,386 8,386,001

130,788 79,219,713

Hybrid Rate from Basin CP Demand Charge Energy Charge

17.41 0.02510

CP Billing Energy Billing Total

225,616 195,936 421,552

209,773 172,867 382,640

201,503 178,045 379,548

186,653 156,927 343,580

169,312 155,123 324,435

167,850 144,480 312,330

182,526 158,667 341,194

178,870 157,036 335,907

172,429 162,310 334,739

189,647 145,088 334,736

194,609 151,446 346,055

198,230 210,489 408,719

2,277,019 1,988,415 4,265,434

423,664 285,800,000 12,234,100

431,498 261,416,551 11,794,677

421,796 275,149,577 11,955,536

397,928 256,705,753 11,219,581

396,105 251,137,004 11,043,498

362,481 234,339,645 10,201,706

375,551 249,014,775 10,687,797

371,531 247,511,995 10,714,278

376,937 244,622,399 10,661,747

381,856 252,153,353 10,876,362

399,618 263,284,657 11,380,691

425,358 282,267,117 12,174,139

4,764,323 3,103,402,826 134,944,113

Black Hills Electric Energy - kWh Billing WAPA Metered Demand - kW Metered Energy - kWh

BASIN Billing Calculation Demand Charge Energy Charge PCA Demand Credit PCA Energy Credit Demand Billing Fixed Charges Energy Billing Wheeling Charges Substation Lease Credit Direct Dues Charge Other Total Western Division CP kW Metered Energy kWh Metered

Total Billing kW Total kWh Total Power Cost

Exhibit B-1 System Adjusted Power Cost

POWDER RIVER ENERGY CORPORATION PROJECTED POWER COST FOR 2011 FOR LARGE POWER TRANSMISSION - (LPT)

January

February

March

April

May

June

July

August

September

October

November

December

Total

Billing Units @ Basin Level Total Basin Billing kW LPT Billing kW LPT kW as % of Total Total LPT kWh Purchased

399,825 144,912 36.24% 104,250,116

409,957 169,995 41.47% 106,217,124

400,647 161,622 40.34% 110,933,368

378,293 166,158 43.92% 111,027,891

376,785 166,427 44.17% 104,608,830

342,112 176,521 51.60% 110,805,086

352,030 148,683 42.24% 102,961,273

350,980 150,445 42.86% 100,059,708

359,095 143,590 39.99% 95,700,407

360,733 159,513 44.22% 102,885,042

378,040 168,640 44.61% 101,644,085

403,254 151,680 37.61% 101,318,626

4,511,751 1,908,186 42.29% 1,252,411,556

Effective Basin Rate Demand Charge Energy Charge Fixed Charges per CP kW Substation Lease per CP kW Wheeling Charge per CP kW Adjustments/Other Credits

13.32 0.02284 0.2167 0.0000 0.03001 -0.00007

13.32 0.02284 0.2167 0.0000 0.02927 -0.00007

13.32 0.02284 0.2167 0.0000 0.02995 -0.00007

13.32 0.02284 0.2167 0.0000 0.03172 -0.00007

13.32 0.02284 0.2167 0.0000 0.03185 -0.00007

13.32 0.02284 0.2167 0.0000 0.03508 -0.00007

13.32 0.02284 0.2167 0.0000 0.03409 -0.00007

13.32 0.02284 0.2167 0.0000 0.03419 0.00030

13.32 0.02284 0.2167 0.0000 0.03342 -0.00007

13.32 0.02284 0.2167 0.0000 0.03327 -0.00007

13.32 0.02284 0.2167 0.0000 0.03174 -0.00007

13.32 0.02284 0.2167 0.0000 0.02976 -0.00007

1,930,228 2,381,073 31,408 0 4,349 -7,298 4,339,760

2,264,333 2,425,999 36,844 0 4,976 -7,435 4,724,717

2,152,805 2,533,718 35,029 0 4,841 -7,765 4,718,628

2,213,225 2,535,877 36,012 0 5,271 -7,772 4,782,613

2,216,808 2,389,266 36,071 0 5,300 -7,322 4,640,122

2,351,260 2,530,788 38,258 0 6,192 -7,756 4,918,742

1,980,458 2,351,635 32,225 0 5,068 -7,207 4,362,179

2,003,927 2,285,364 32,607 0 5,144 30,149 4,357,191

1,912,619 2,185,797 31,121 0 4,798 -6,699 4,127,637

2,124,713 2,349,894 34,572 0 5,306 -7,202 4,507,284

2,246,285 2,321,551 36,550 0 5,353 -7,115 4,602,624

2,020,378 2,314,117 32,875 0 4,514 -7,092 4,364,791

Demand Billing Energy Billing Fixed Charges Billing Substation Lease Billing Wheeling Charges Billing Adjustments/Other Credits Total LPT Power Cost

25,417,038 28,605,080 413,573 0 61,112 -50,515 54,446,288

Exhibit C-1 LPT Adjusted Power Cost

POWDER RIVER ENERGY CORPORATION PROJECTED POWER COST FOR 2011 FOR LARGE POWER TRANSMISSION - COAL BED METHANE

January

February

March

April

May

June

July

August

September

October

November

December

Total

Billing Units @ Basin Level Total Basin Billing kW LPT-CBM Billing kW LPT-CBM kW as % of Total kWh Purchased

399,825 17,345 4.34% 13,369,842

409,957 20,038 4.89% 13,990,844

400,647 18,404 4.59% 14,762,601

378,293 20,808 5.50% 14,698,935

376,785 20,185 5.36% 13,217,044

342,112 19,868 5.81% 14,602,034

352,030 19,625 5.57% 13,732,049

350,980 19,341 5.51% 13,120,505

359,095 18,137 5.05% 12,818,259

360,733 17,260 4.78% 12,680,522

378,040 16,673 4.41% 12,364,395

403,254 16,659 4.13% 11,790,177

4,511,751 224,343 4.97% 161,147,207

Effective Basin Rate Demand Charge Energy Charge Fixed Charges per CP kW Substation Lease per CP kW Wheeling Charge per CP kW Adjustments/Other Credits

13.32 0.02284 0.2167 0.0000 0.03001 -0.00007

13.32 0.02284 0.2167 0.0000 0.02927 -0.00007

13.32 0.02284 0.2167 0.0000 0.02995 -0.00007

13.32 0.02284 0.2167 0.0000 0.03172 -0.00007

13.32 0.02284 0.2167 0.0000 0.03185 -0.00007

13.32 0.02284 0.2167 0.0000 0.03508 -0.00007

13.32 0.02284 0.2167 0.0000 0.03409 -0.00007

13.32 0.02284 0.2167 0.0000 0.03419 0.00030

13.32 0.02284 0.2167 0.0000 0.03342 -0.00007

13.32 0.02284 0.2167 0.0000 0.03327 -0.00007

13.32 0.02284 0.2167 0.0000 0.03174 -0.00007

13.32 0.02284 0.2167 0.0000 0.02976 -0.00007

Demand Billing Energy Billing Fixed Charges Billing Substation Lease Billing Wheeling Charges Billing Adjustments/Other Credits Total LPT - CBM Power Cost

231,035 305,367 3,759 0 521 -936 539,747

266,906 319,551 4,343 0 587 -979 590,407

245,141 337,178 3,989 0 551 -1,033 585,826

277,163 335,724 4,510 0 660 -1,029 617,027

268,864 301,877 4,375 0 643 -925 574,834

264,642 333,510 4,306 0 697 -1,022 602,133

261,405 313,640 4,253 0 669 -961 579,006

257,622 299,672 4,192 0 661 3,953 566,101

241,585 292,769 3,931 0 606 -897 537,994

229,903 289,623 3,741 0 574 -888 522,954

222,084 282,403 3,614 0 529 -865 507,765

221,898 269,288 3,611 0 496 -825 494,467

2,988,249 3,680,602 48,623 0 7,194 -6,408 6,718,259

Exhibit C-2 LPT-CBM Adjusted Power Cost

Exhibit D POWDER RIVER ENERGY CORPORATION SUMMARY OF COPA OVER/UNDER RECOVERY FOR THE PERIOD OCTOBER 2009 THROUGH SEPTEMBER 2010 (a)

(b)

(Over)/Under Days Recovery Remainder Classes Beginning Balance October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Subtotal

(e) Annual Interest Rate

(f)

Interest

31 30 31 31 28 31 30 31 30 31 31 30

176,861 (61,620) 660,840 98,302 (468,265) 191,686 (455,685) (179,973) (578,917) 32,296 (187,710) (467,614) (1,239,799)

1,781 1,847 1,910 34,277 91,776 83,452 87,214 81,038 78,989 75,985 79,788 80,479 698,535

(811,344) (873,694) (213,630) (81,729) (458,340) (183,814) (552,556) (652,281) (1,153,174) (1,046,542) (1,156,010) (1,544,853)

3.74% 3.74% 3.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74%

(2,577) (2,686) (679) (121) (612) (272) (790) (964) (1,649) (1,547) (1,708) (2,209) (15,813)

31 30 31 31 28 31 30 31 30 31 31 30

(74,140) 49,897 (1,073) (86,985) 68,513 (12,796) (31,400) 62,750 61,460 (102,824) 47,629 (33,529) (52,496)

47,460 48,357 50,510 27,008 25,411 26,875 24,971 24,266 23,207 24,949 24,649 24,569 372,233

(329,508) (232,300) (183,577) (244,137) (150,574) (136,695) (143,326) (56,516) 28,068 (49,807) 22,397 13,437

3.74% 3.74% 3.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74%

(1,047) (714) (583) (361) (201) (202) (205) (84) (74) (3,470)

31 30 31 31 28 31 30 31 30 31 31 30

(5,649) 2,301 (8,164) (1,121) 5,725 (6,534) (1,397) (227) (3,070) (5,325) (1,759) (2,470) (27,690)

1,446 1,514 1,597 (1,845) (1,661) (1,835) (1,726) (1,649) (1,613) (1,591) (1,554) (1,482) (10,398)

15,481 19,296 12,729 9,764 13,827 5,459 2,336 460 (4,223) (11,146) (14,475) (18,447)

3.74% 3.74% 3.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74% 1.74%

(6) (16) (21) (26) (70)

(g) Total (Over)/Under Recovery (989,985) (813,921) (876,380) (214,308) (81,850) (458,952) (184,086) (553,347) (653,245) (1,154,823) (1,048,088) (1,157,719) (1,547,063)

LPT Class October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Subtotal

(302,829) (330,555) (233,015) (184,161) (244,497) (150,775) (136,897) (143,531) (56,599) 28,068 (49,881) 22,397 13,437

LPT CBM Class October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Subtotal

(Over)/Under Recovery derived on monthly worksheets

19,684 15,481 19,296 12,729 9,764 13,827 5,459 2,336 460 (4,229) (11,162) (14,496) (18,474)

Exhibit E October Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: OCTOBER 09

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

9,725,124 3,793,201 542,906 5,389,016

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 126,239,174 4,023,242

8 Recoverable Power Cost (L4 - L7)

1,365,774

9 Actual COPA Revenue Collected for Period

1,188,913

10 (Over)/Under Recovery (L8 - L9) Large Power Transmission - LPT 11 LPT Power Cost (Schedule "LPT Actual Power Cost") 12 LPT Base Power Cost In Rates: (Rate in Effect for Period) 13 Base Demand Charge 14 Base Energy Charge 15 Total LPT Base Power Cost in Rate

176,861 Billing Unit 3,793,201 208,927 103,799,300

6.77 0.015870

1,414,436 1,647,295 3,061,731

16 LPT Recoverable Power Cost (L11 - L15)

731,471

17 Actual LPT COPA Revenue Collected for Period

805,610

18 (Over)/Under Recovery (L16 - L17)

(74,140)

Large Power Transmission Coal Bed Methane - LPT-CBM 19 LPT-CBM Power Cost (Schedule "LPT-CBM Actual Power Cost") 20 LPT-CBM Base Power Cost In Rates: (Rate in Effect for Period) 21 Base Demand Charge 22 Base Energy Charge 23 Total LPT Base Power Cost in Rate

542,906 20,232 15,595,400

8.75 0.015870

177,030 247,499 424,529

24 LPT-CBM Recoverable Power Cost (L19 - L23)

118,377

25 Actual LPT-CBM COPA Revenue Collected for Period

124,026

26 (Over)/Under Recovery (L24 - L25)

(5,649)

Exhibit F November Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: NOVEMBER 09

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

9,945,869 4,004,490 595,605 5,345,773

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 130,980,785 4,174,358

8 Recoverable Power Cost (L4 - L7)

1,171,415

9 Actual COPA Revenue Collected for Period

1,233,036

(61,620) Billing Unit 4,004,490 214,967 105,761,170

6.77 0.015870

1,455,327 1,678,430 3,133,756

16 LPT Recoverable Power Cost (L11 - L15)

870,734

17 Actual LPT COPA Revenue Collected for Period

820,837

18 (Over)/Under Recovery (L16 - L17) Large Power Transmission Coal Bed Methane - LPT-CBM 19 LPT-CBM Power Cost (Schedule "LPT-CBM Actual Power Cost") 20 LPT-CBM Base Power Cost In Rates: (Rate in Effect for Period) 21 Base Demand Charge 22 Base Energy Charge 23 Total LPT Base Power Cost in Rate

49,897

595,605 23,374 16,319,775

8.75 0.015870

204,523 258,995 463,517

24 LPT-CBM Recoverable Power Cost (L19 - L23)

132,088

25 Actual LPT-CBM COPA Revenue Collected for Period

129,787

26 (Over)/Under Recovery (L24 - L25)

2,301

Exhibit G December Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: DECEMBER 09

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

10,934,739 4,091,568 589,900 6,253,270

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 135,464,851 4,317,265

8 Recoverable Power Cost (L4 - L7)

1,936,006

9 Actual COPA Revenue Collected for Period

1,275,165

660,840 Billing Unit 4,091,568 218,924 110,469,310

6.77 0.015870

1,482,115 1,753,148 3,235,263

16 LPT Recoverable Power Cost (L11 - L15)

856,305

17 Actual LPT COPA Revenue Collected for Period

857,378

(1,073)

589,900 21,467 17,220,000

8.75 0.015870

187,836 273,281 461,118

24 LPT-CBM Recoverable Power Cost (L19 - L23)

128,782

25 Actual LPT-CBM COPA Revenue Collected for Period

136,946

26 (Over)/Under Recovery (L24 - L25)

(8,164)

Exhibit H January Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: JANUARY 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

11,368,657 4,283,318 673,927 6,411,413

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 148,379,340 4,728,850

8 Recoverable Power Cost (L4 - L7)

1,682,563

9 Actual COPA Revenue Collected for Period

1,584,261

98,302 Billing Unit 4,283,318 211,413 110,748,750

6.77 0.015870

1,431,266 1,757,583 3,188,849

16 LPT Recoverable Power Cost (L11 - L15)

1,094,469

17 Actual LPT COPA Revenue Collected for Period

1,181,453

(86,985)

673,927 24,272 17,145,736

8.75 0.015870

212,380 272,103 484,483

24 LPT-CBM Recoverable Power Cost (L19 - L23)

189,444

25 Actual LPT-CBM COPA Revenue Collected for Period

190,565

26 (Over)/Under Recovery (L24 - L25)

(1,121)

Exhibit I February Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: FEBRUARY 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

11,005,284 4,309,320 627,764 6,068,199

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 145,081,373 4,623,743

8 Recoverable Power Cost (L4 - L7)

1,444,456

9 Actual COPA Revenue Collected for Period

1,912,721

(468,265) Billing Unit 4,309,320 218,046 104,176,800

6.77 0.015870

1,476,171 1,653,286 3,129,457

16 LPT Recoverable Power Cost (L11 - L15)

1,179,863

17 Actual LPT COPA Revenue Collected for Period

1,111,350

68,513

627,764 23,545 15,417,168

8.75 0.015870

206,019 244,670 450,689

24 LPT-CBM Recoverable Power Cost (L19 - L23)

177,075

25 Actual LPT-CBM COPA Revenue Collected for Period

171,351

26 (Over)/Under Recovery (L24 - L25)

5,725

Exhibit J March Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: MARCH 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

11,159,047 4,355,005 655,862 6,148,179

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 132,326,682 4,217,251

8 Recoverable Power Cost (L4 - L7)

1,930,928

9 Actual COPA Revenue Collected for Period

1,739,242

191,686 Billing Unit 4,355,005 213,269 110,180,820

6.77 0.015870

1,443,831 1,748,570 3,192,401

16 LPT Recoverable Power Cost (L11 - L15)

1,162,604

17 Actual LPT COPA Revenue Collected for Period

1,175,400

(12,796)

655,862 23,175 17,032,705

8.75 0.015870

202,781 270,309 473,090

24 LPT-CBM Recoverable Power Cost (L19 - L23)

182,772

25 Actual LPT-CBM COPA Revenue Collected for Period

189,306

26 (Over)/Under Recovery (L24 - L25)

(6,534)

Exhibit K April Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: APRIL 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

10,499,321 4,100,593 631,140 5,767,588

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 138,237,365 4,405,625

8 Recoverable Power Cost (L4 - L7)

1,361,963

9 Actual COPA Revenue Collected for Period

1,817,648

(455,685) Billing Unit 4,100,593 209,050 102,371,410

6.77 0.015870

1,415,269 1,624,634 3,039,903

16 LPT Recoverable Power Cost (L11 - L15)

1,060,690

17 Actual LPT COPA Revenue Collected for Period

1,092,090

(31,400)

631,140 22,892 16,017,901

8.75 0.015870

200,305 254,204 454,509

24 LPT-CBM Recoverable Power Cost (L19 - L23)

176,631

25 Actual LPT-CBM COPA Revenue Collected for Period

178,027

26 (Over)/Under Recovery (L24 - L25)

(1,397)

Exhibit L May Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: MAY 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

10,301,687 4,089,039 610,164 5,602,484

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 128,444,093 4,093,513

8 Recoverable Power Cost (L4 - L7)

1,508,971

9 Actual COPA Revenue Collected for Period

1,688,944

(179,973) Billing Unit 4,089,039 204,754 99,484,250

6.77 0.015870

1,386,185 1,578,815 2,965,000

16 LPT Recoverable Power Cost (L11 - L15)

1,124,040

17 Actual LPT COPA Revenue Collected for Period

1,061,290

62,750

610,164 22,561 15,304,559

8.75 0.015870

197,409 242,883 440,292

24 LPT-CBM Recoverable Power Cost (L19 - L23)

169,872

25 Actual LPT-CBM COPA Revenue Collected for Period

170,099

26 (Over)/Under Recovery (L24 - L25)

(227)

Exhibit M June Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: JUNE 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

9,565,705 3,921,006 585,750 5,058,949

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 125,247,534 3,991,639

8 Recoverable Power Cost (L4 - L7)

1,067,310

9 Actual COPA Revenue Collected for Period

1,646,227

(578,917) Billing Unit 3,921,006 197,148 95,141,350

6.77 0.015870

1,334,692 1,509,893 2,844,585

16 LPT Recoverable Power Cost (L11 - L15)

1,076,421

17 Actual LPT COPA Revenue Collected for Period

1,014,960

61,460

585,750 21,156 14,952,000

8.75 0.015870

185,115 237,288 422,403

24 LPT-CBM Recoverable Power Cost (L19 - L23)

163,347

25 Actual LPT-CBM COPA Revenue Collected for Period

166,417

26 (Over)/Under Recovery (L24 - L25)

(3,070)

Exhibit N July Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: JULY 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

10,049,488 4,025,575 569,735 5,454,177

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 120,434,853 3,838,259

8 Recoverable Power Cost (L4 - L7)

1,615,919

9 Actual COPA Revenue Collected for Period

1,583,622

32,296 Billing Unit 4,025,575 208,871 102,281,650

6.77 0.015870

16 LPT Recoverable Power Cost (L11 - L15)

988,309

17 Actual LPT COPA Revenue Collected for Period

1,091,133

1,414,057 1,623,210 3,037,266

(102,824)

569,735 20,133 14,791,336

8.75 0.015870

176,164 234,739 410,902

24 LPT-CBM Recoverable Power Cost (L19 - L23)

158,833

25 Actual LPT-CBM COPA Revenue Collected for Period

164,158

26 (Over)/Under Recovery (L24 - L25)

(5,325)

Exhibit O August Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: AUGUST 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

10,146,776 4,084,060 557,594 5,505,122

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 126,449,615 4,029,949

8 Recoverable Power Cost (L4 - L7)

1,475,173

9 Actual COPA Revenue Collected for Period

1,662,883

(187,710) Billing Unit 4,084,060 200,107 101,051,850

6.77 0.015870

1,354,724 1,603,693 2,958,417

16 LPT Recoverable Power Cost (L11 - L15)

1,125,642

17 Actual LPT COPA Revenue Collected for Period

1,078,013

47,629

557,594 19,448 14,422,586

8.75 0.015870

170,170 228,886 399,056

24 LPT-CBM Recoverable Power Cost (L19 - L23)

158,538

25 Actual LPT-CBM COPA Revenue Collected for Period

160,297

26 (Over)/Under Recovery (L24 - L25)

(1,759)

Exhibit P September Reconciliation POWDER RIVER ENERGY CORPORATION CALCULATION OF COPA OVER/UNDER RECOVERY FOR THE MONTH OF: SEPTEMBER 10

Amount 1 2 3 4

Remainder of System Actual Cost of Power (Schedule "Actual System Power Cost") Less: LPT Power Cost (L11) Less: LPT CBM Power Cost (L19) Remainder System Power Cost

9,849,528 4,035,671 538,669 5,275,188

5 Base Power Cost In Rates $/kWh Sold (Rate in Effect for Period) 6 kWh Sold for Period Excluding LPT and LPT-CBM kWh Sold 7 Base Power Cost in Rates $

0.031870 127,565,837 4,065,523

8 Recoverable Power Cost (L4 - L7)

1,209,665

9 Actual COPA Revenue Collected for Period

1,677,278

(467,614) Billing Unit 4,035,671 206,229 100,724,900

6.77 0.015870

1,396,170 1,598,504 2,994,674

16 LPT Recoverable Power Cost (L11 - L15)

1,040,997

17 Actual LPT COPA Revenue Collected for Period

1,074,525

(33,529)

538,669 19,432 13,752,783

8.75 0.015870

170,030 218,257 388,287

24 LPT-CBM Recoverable Power Cost (L19 - L23)

150,382

25 Actual LPT-CBM COPA Revenue Collected for Period

152,852

26 (Over)/Under Recovery (L24 - L25)

(2,470)

POWDER RIVER ENERGY CORPORATION ACTUAL PURCHASED POWER FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2010

Black Hills Electric Energy - kWh Billing WAPA Metered Demand - kW Metered Energy - kWh WAPA Billing Calculation Demand Billing Energy Billing Total BASIN Actual Billing kW Heat Rate kW Billing Energy - kWh Heat Rate kWh BASIN Billing Calculation Demand Charge Energy Charge PCA Demand Credit PCA Energy Credit Demand Billing Demand Adj Fixed Charge 1 Fixed Charge 2 Energy Billing PCA Energy Wheeling Charges Heat Rate kW Avoided Cost Heat Hate kWh Avoided Cost Energy Billing Heat Rate Substation Lease Credit NRECA Dues Data Incentive Credit Total

October

November

December

January

February

March

April

May

June

July

August

September

Total

0 0.00

634,722 30,290.85

0 0.00

634,722 30,290.85

10,516 7,028,155

10,750 7,028,155

11,361 7,693,542

10,931 7,485,609

9,540 5,905,313

9,625 6,445,940

8,987 5,939,125

9,652 6,223,878

10,865 7,159,493

13,188 8,949,367

10,492 7,159,493

7,848 5,247,583

123,755 82,265,653

56,235.64 130,864.25 187,099.89

58,388.60 130,864.25 189,252.85

56,345.82 143,253.75 199,599.57

61,807.24 155,026.96 216,834.20

58,054.44 122,299.03 180,353.47

64,572.13 133,495.42 198,067.55

59,875.05 122,999.28 182,874.33

68,522.17 128,735.13 197,257.30

64,271.65 148,273.10 212,544.75

72,561.09 185,341.39 257,902.48

65,673.70 148,273.10 213,946.80

50,561.46 108,677.44 159,238.90

736,869 1,658,103 2,394,972

379,650

392,043

421,320

381,378 93 248,783,240 44,760

379,041 76 242,239,626 35,718

346,482 76 225,694,247 35,620

356,590

281,591,972

402,736 140 265,551,914 60,937

358,311

253,136,034 0

412,040 82 251,944,116 39,739

356,098

250,338,461

401,691 128 271,968,887 62,050

239,208,842

241,284,080

235,307,285

4,587,380 595 3,007,048,704 278,824

11.03 0.01945 0.00000 0.00000

12.10 0.02109 0.00000 0.00000

12.10 0.02109 0.00086 0.00000

12.10 0.02109 0.00000 0.00000

4,187,539.50 0.00 4,400.00 194,312.00 4,869,083.07 0.00 12,000.00

4,324,234.29 0.00 4,400.00 232,959.00 4,923,495.86 0.00 12,000.00

4,647,159.60 0.00 4,400.00 229,684.00 5,476,963.86 0.00 12,000.00

4,614,673.80 0.00 4,400.00 154,144.00 5,246,838.53 0.00 12,000.00 -1,125.00 -943.99 1,208.52 -30,928.00

4,586,396.10 326.70 4,400.00 126,248.00 5,108,833.71 0.00 12,000.00 -919.60 -753.29 964.39 -30,928.00

4,192,432.20 0.00 4,400.00 127,438.00 4,759,891.67 0.00 12,000.00 -890.71 -730.44 961.74 -30,928.00

4,314,739.00 0.00 4,400.00 136,282.00 4,962,630.64 0.00 12,000.00

-419.03 0.00 -55,426.63

4,873,105.60 0.00 4,400.00 152,071.00 5,600,489.87 0.00 12,000.00 -1,694.00 -1,285.16 1,645.30 -30,928.00

4,335,563.10 0.00 4,400.00 122,943.00 5,088,681.25 0.00 12,000.00

0.00 -55,426.63

4,985,684.00 0.00 4,400.00 188,781.00 5,313,501.41 0.00 12,000.00 -992.20 -838.10 1,072.95 -30,928.00

4,308,785.80 0.00 4,400.00 117,706.00 5,044,914.48 0.00 12,000.00

0.00 -55,426.63 0.00 -15,971.68 9,195,936.26

4,860,461.10 0.00 4,400.00 183,080.00 5,735,823.83 0.00 12,000.00 -1,411.84 -1,206.87 1,675.35 -30,928.00

0.00 -30,928.00

-18,072.43 9,423,590.09

-18,252.29 10,296,109.51

-20,358.18 10,743,535.39

-19,654.45 10,453,026.61

-18,186.89 10,591,617.72

-19,166.01 9,981,101.85

-17,952.75 9,788,615.26

-17,469.23 9,047,105.23

0.00 -30,928.00 85,233.45 -17,324.23 9,600,568.57

0.00 -30,928.00 0.00 -17,472.75 9,381,650.89

9,456,878.28

54,230,774 327 52,800 1,965,648 62,131,148 0 144,000 -7,033 -6,177 7,528 -444,632 85,233 -199,881 117,959,736

Exhibit Q System Actual Power Cost, Page 1

POWDER RIVER ENERGY CORPORATION ACTUAL PURCHASED POWER FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2010

Basin - Large Compression CP kW NCP kW kWh Billed CP Billed NCP Billed Energy Total Billing Western Division Metered kW Metered kWh Demand Billing Energy Billing Energy Adjustment Total Subtotal Basin/Western Div Total System Total Billing kW Billing kW Excl LPC CBM Total kWh kWh Excl LPC CBM Total Billing Total Billing Excl LPC CBM

October

November

December

January

February

March

April

May

June

July

August

September

Total

1,214 3,116 965,552

1,284 1,700 902,930

1,290 1,752 958,628

1,343 1,726 982,062

1,337 1,805 913,437

1,460 1,691 1,067,754

1,486 3,125 1,335,719

2,350 3,508 1,742,727

2,328 3,279 1,655,820

3,467 3,587 1,816,809

2,428 4,035 1,883,821

2,454 3,634 1,760,751

22,441 32,958 15,986,010

53,377 25,172 78,549

0 29,121 23,539 52,660

0 30,012 24,991 55,003

0 29,843 25,848 55,690

0 31,208 24,042 55,250

0 29,237 28,103 57,341

0 54,031 35,156 89,187

0 60,653 45,869 106,522

0 56,694 43,581 100,275

0 62,019 47,818 109,838

0 69,765 49,582 119,347

0 62,832 46,343 109,175

0 568,793 420,045 988,838

11,140 6,873,490

10,821 6,708,029

13,213 8,280,491

13,019 7,826,928

12,110 6,955,229

11,634 7,180,443

10,808 6,348,888

9,783 6,253,508

9,764 5,863,728

10,605 6,463,377

10,489 6,442,830

9,657 6,044,620

133,043 81,241,561

181,248 160,840 0 342,087.47

176,058 156,968 0 333,025.83

214,976 193,763 0 408,739.00

218,719 189,568 0 408,287.40

203,448 168,456 0 371,903.65

195,451 173,910 0 369,361.53

181,574 153,770 0 335,344.47

164,354 151,460 0 315,814.36

164,035 142,019 0 306,054.69

178,164 156,543 0 334,706.99

176,215 156,045 0 332,260.54

162,238 146,401 0 308,638.30

2,216,480 1,949,744 0 4,166,224

9,616,573

9,809,276

10,759,852

11,207,513

10,880,180

11,018,320

10,405,634

10,210,952

9,453,435

9,901,423

10,052,176

9,799,464

123,114,798 0

402,520 401,306 265,205,658 264,240,106

414,898 413,614 267,775,148 266,872,218

447,184 445,894 299,159,355 298,200,727

426,984 425,641 288,263,486 287,281,424

435,027 433,690 265,718,095 264,804,658

425,455 423,995 280,246,051 279,178,297

402,659 401,173 262,406,972 261,071,253

400,826 398,476 256,459,739 254,717,012

369,439 367,111 240,373,288 238,717,468

383,358 379,891 256,438,395 254,621,586

381,720 379,292 256,770,224 254,886,403

376,549 374,095 248,360,239 246,599,488

4,866,619 4,844,178 3,187,176,650 3,171,190,640

9,803,673 9,725,124

9,998,529 9,945,869

10,989,742 10,934,739

11,424,347 11,368,657

11,060,534 11,005,284

11,216,387 11,159,047

10,588,508 10,499,321

10,408,209 10,301,687

9,665,980 9,565,705

10,159,325 10,049,488

10,266,123 10,146,776

9,958,703 9,849,528

125,540,061 124,551,223

Exhibit Q System Actual Power Cost, Page 2

POWDER RIVER ENERGY CORPORATION ACTUAL POWER COST FOR LARGE POWER TRANSMISSION - (COAL MINES) FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2010 October

November

December

January

February

March

April

May

June

July

August

September

Total

Billing Units @ Basin Level Total Basin Billing kW LPT Billing kW LPT kW as % of Total kWh Purchased

379,650 158,102 41.64% 101,974,992

392,043 172,242 43.93% 103,815,414

421,320 167,235 39.69% 111,709,022

401,691 155,067 38.60% 111,555,118

412,040 168,119 40.80% 105,045,206

402,736 162,172 40.27% 111,310,718

381,378 154,771 40.58% 103,419,421

379,041 159,775 42.15% 100,427,775

346,482 153,100 44.19% 96,103,002

356,098 149,183 41.89% 103,306,923

358,311 153,502 42.84% 102,092,672

356,590 152,647 42.81% 101,736,887

4,587,380 1,905,915 41.55% 1,252,497,151

Effective Basin Rate Demand Charge Energy Charge Fixed Charges per CP kW Substation Lease per CP kW Wheeling Charge per CP kW Adjustments/Other Credits

11.03 0.019450 0.523408 (0.096925) 0.031608 (0.000064)

11.03 0.019450 0.605441 (0.096925) 0.030609 (0.000071)

11.03 0.019450 0.555597 (0.096925) 0.028482 (0.000065)

12.10 0.021090 0.466727 (0.096925) 0.029874 (0.000069)

12.10 0.021090 0.468840 (0.096925) 0.029123 (0.000074)

12.10 0.021090 0.388520 (0.096925) 0.029796 (0.000062)

12.10 0.021090 0.415714 (0.096925) 0.031465 (0.000072)

12.10 0.021090 0.344680 (0.096925) 0.031659 (0.000070)

12.10 0.021090 0.380505 (0.096925) 0.034634 (0.000073)

12.10 0.021090 0.342900 (0.096925) 0.033699 -

12.10 0.021090 0.355398 (0.096925) 0.033490 0.000281

12.10 0.021090 0.394520 (0.096925) 0.033652 (0.000074)

Demand Billing Energy Billing Fixed Charges Billing Substation Lease Wheeling Charges Adjustments/Other Credits

1,743,869 1,983,414 82,752 (15,324) 4,997 (6,506)

1,899,832 2,019,210 104,283 (16,695) 5,272 (7,412)

1,844,600 2,172,740 92,915 (16,209) 4,763 (7,241)

1,876,307 2,352,697 72,374 (15,030) 4,632 (7,663)

2,034,242 2,215,403 78,821 (16,295) 4,896 (7,747)

1,962,275 2,347,543 63,007 (15,718) 4,832 (6,934)

1,872,733 2,181,116 64,341 (15,001) 4,870 (7,465)

1,933,417 2,118,022 55,071 (15,486) 5,058 (7,043)

1,852,504 2,026,812 58,255 (14,839) 5,302 (7,029)

1,805,110 2,178,743 51,155 (14,460) 5,027 -

Total LPT Power Cost

3,793,201

4,004,490

4,091,568

4,283,318

4,309,320

4,355,005

4,100,593

4,089,039

3,921,006

4,025,575

1,857,374 2,153,134 54,554 (14,878) 5,141 28,734 4,084,060

1,847,031 2,145,631 60,222 (14,795) 5,137 (7,554) 4,035,671

22,529,294 25,894,466 837,750 (184,731) 59,929 (43,861) 49,092,847

Exhibit R-1 LPT Actual Power Cost

POWDER RIVER ENERGY CORPORATION ACTUAL POWER COST FOR LARGE POWER TRANSMISSION - COAL BED METHANE FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2010 October

November

December

January

February

March

April

May

June

July

August

September

Total

Billing Units @ Basin Level Total Basin Billing kW LPT-CBM Billing kW LPT-CBM kW as % of Total kWh Purchased

379,650 20,540 5.41% 15,832,893

392,043 23,730 6.05% 16,568,299

421,320 21,794 5.17% 17,482,234

401,691 24,642 6.13% 17,406,839

412,040 23,904 5.80% 15,651,947

402,736 23,528 5.84% 17,292,086

381,378 23,241 6.09% 16,261,828

379,041 22,905 6.04% 15,537,623

346,482 21,478 6.20% 15,179,695

356,098 20,440 5.74% 15,016,585

358,311 19,744 5.51% 14,642,219

356,590 19,728 5.53% 13,962,216

4,587,380 265,672 5.79% 190,834,466

Effective Basin Rate Demand Charge Energy Charge Fixed Charges per CP kW Substation Lease per CP kW Wheeling Charge per CP kW Adjustments/Other Credits

11.03 0.019450 0.523408 (0.096925) 0.031608 (0.000064)

11.03 0.019450 0.605441 (0.096925) 0.030609 (0.000071)

11.03 0.019450 0.555597 (0.096925) 0.028482 (0.000065)

12.10 0.021090 0.466727 (0.096925) 0.029874 (0.000069)

12.10 0.021090 0.468840 (0.096925) 0.029123 (0.000074)

12.10 0.021090 0.388520 (0.096925) 0.029796 (0.000062)

12.10 0.021090 0.415714 (0.096925) 0.031465 (0.000072)

12.10 0.021090 0.344680 (0.096925) 0.031659 (0.000070)

12.10 0.021090 0.380505 (0.096925) 0.034634 (0.000073)

12.10 0.021090 0.342900 (0.096925) 0.033699 -

12.10 0.021090 0.355398 (0.096925) 0.033490 0.000281

12.10 0.021090 0.394520 (0.096925) 0.033652 (0.000074)

Demand Billing Energy Billing Fixed Charges Billing Substation Lease Wheeling Charges Adjustments/Other Credits

$ $ $ $ $ $

226,557 307,950 10,751 (1,991) 649 (1,010)

$ $ $ $ $ $

261,741 322,253 14,367 (2,300) 726 (1,183)

$ $ $ $ $ $

240,387 340,029 12,109 (2,112) 621 (1,133)

$ $ $ $ $ $

298,164 367,110 11,501 (2,388) 736 (1,196)

$ $ $ $ $ $

289,233 330,100 11,207 (2,317) 696 (1,154)

$ $ $ $ $ $

284,688 364,690 9,141 (2,280) 701 (1,077)

$ $ $ $ $ $

281,211 342,962 9,661 (2,253) 731 (1,174)

$ $ $ $ $ $

277,165 327,688 7,895 (2,220) 725 (1,090)

$ $ $ $ $ $

259,886 320,140 8,173 (2,082) 744 (1,110)

$ $ $ $ $ $

247,319 316,700 7,009 (1,981) 689 -

Total LPT-CBM Power Cost

542,906

595,605

589,900

673,927

627,764

655,862

631,140

610,164

585,750

569,735

$ $ $ $ $ $ $ $

238,904 308,804 7,017 (1,914) 661 4,121 557,594

$ $ $ $ $ $ $ $

238,708 294,463 7,783 (1,912) 664 (1,037) 538,669

$ $ $ $ $ $ $ $

3,143,963 3,942,890 116,613 (25,750) 8,344 (7,043) 7,179,017

Exhibit R-2 LPT-CBM Actual Power Cost

Exhibit S Page 1 of 2 POWDER RIVER ENERGY CORPORATION SUMMARY OF MONTHLY KWH AND COPA REVENUE FOR THE PERIOD OCTOBER 2009 THROUGH SEPTEMBER 2010

Actual kWh Sold

Power Cost Component Of COPA Rev

Prior Year True-Up Component Of COPA Rev

Total COPA Revenue

Remainder Classes October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Total

126,239,174 130,980,785 135,464,851 148,379,340 145,081,373 132,326,682 138,237,365 128,444,093 125,247,534 120,434,853 126,449,615 127,565,837 1,584,851,502

1,188,913 1,233,036 1,275,165 1,584,261 1,912,721 1,739,242 1,817,648 1,688,944 1,646,227 1,583,622 1,662,883 1,677,278 19,009,940

(1,781) (1,847) (1,910) (34,277) (91,776) (83,452) (87,214) (81,038) (78,989) (75,985) (79,788) (80,479) (698,535)

1,187,132 1,231,189 1,273,255 1,549,984 1,820,945 1,655,790 1,730,434 1,607,905 1,567,239 1,507,637 1,583,095 1,596,800 18,311,406

LPT Class October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Total

103,799,300 105,761,170 110,469,310 110,748,750 104,176,800 110,180,820 102,371,410 99,484,250 95,141,350 102,281,650 101,051,850 100,724,900 1,246,191,560

805,610 820,837 857,378 1,181,453 1,111,350 1,175,400 1,092,090 1,061,290 1,014,960 1,091,133 1,078,013 1,074,525 12,364,040

(47,460) (48,357) (50,510) (27,008) (25,411) (26,875) (24,971) (24,266) (23,207) (24,949) (24,649) (24,569) (372,233)

758,150 772,480 806,868 1,154,445 1,085,939 1,148,525 1,067,120 1,037,024 991,753 1,066,184 1,053,364 1,049,956 11,991,808

Exhibit S Page 2 of 2 POWDER RIVER ENERGY CORPORATION SUMMARY OF MONTHLY KWH AND COPA REVENUE FOR THE PERIOD OCTOBER 2009 THROUGH SEPTEMBER 2010

Actual kWh Sold LPT CBM Class October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Total Total System October 09 November 09 December 09 January 10 February 10 March 10 April 10 May 10 June 10 July 10 August 10 September 10 Total

Power Cost Component Of COPA Rev

Prior Year True-Up Component Of COPA Rev

Total COPA Revenue

15,595,400 16,319,775 17,220,000 17,145,736 15,417,168 17,032,705 16,017,901 15,304,559 14,952,000 14,791,336 14,422,586 13,752,783 187,971,949

124,026 129,787 136,946 190,565 171,351 189,306 178,027 170,099 166,417 164,158 160,297 152,852 1,933,831

(1,446) (1,514) (1,597) 1,845 1,661 1,835 1,726 1,649 1,613 1,591 1,554 1,482 10,398

122,580 128,273 135,349 192,409 173,011 191,141 179,753 171,748 168,030 165,750 161,850 154,334 1,944,229

245,633,874 253,061,730 263,154,161 276,273,826 264,675,341 259,540,207 256,626,676 243,232,902 235,340,884 237,507,839 241,924,051 242,043,520 3,019,015,011

2,118,549 2,183,660 2,269,489 2,956,279 3,195,422 3,103,949 3,087,765 2,920,333 2,827,605 2,838,913 2,901,192 2,904,656 33,307,812

(50,687) (51,718) (54,017) (59,441) (115,526) (108,492) (110,459) (103,656) (100,583) (99,342) (102,883) (103,566) (1,060,370)

2,067,862 2,131,942 2,215,472 2,896,839 3,079,896 2,995,456 2,977,306 2,816,677 2,727,022 2,739,571 2,798,309 2,801,090 32,247,442

Exhibit T STATEMENT OF OPERATIONS

Operating Revenues Base Revenue COPA - Current Year Power Cost Recovery COPA - Prior Year True-up Deferred Revenue Other Revenue

Adjusted 2009 Docket #

2011 Budget Adjusted for

10014-118-CR-10

2011 COPA

128,248,000 26,106,989 (604,358) (2,300,000) 1,649,433 153,100,064

Purchased Power Transmission Expense Distribution Expense - Operation Distribution Expense - Maintenance Customer Accounts Expense Customer Service & Sales Administrative and General Expense Depreciation and Amortization Expense Regulatory Debit - COPA Current True-Up Regulatory Credit - COPA Prior Year True-Up Tax Expense - Property & Gross Receipts Tax Expense - Other Total Operating Expense

109,763,436 1,138,743 8,234,888 3,249,322 3,558,330 124,057 5,389,393 12,883,439 1,204,227 (604,358) 358,914 55,215 145,355,606

Return

7,744,458

Interest on Long-Term Debt Interest Expense - Other Other Deductions Total Interest & Other Deductions Operating Margins

Total Operating Revenue

A Actual 2009

168,905,878 750,000 1,649,433 171,305,311

167,345,754 10,821,835 (1,552,099) 750,000 1,708,718 179,074,208

Operating Expenses 126,789,794 1,182,728 9,110,832 3,577,656 2,982,550 126,987 5,817,018 13,975,202

136,053,458 1,425,697 8,796,578 3,510,356 2,835,718 172,097 5,781,468 14,200,000

358,914 55,215 163,976,896

(1,552,099) 370,000 54,473 171,647,746

7,328,415

7,426,462

5,366,894 147,341 96,139 5,610,374

6,935,093 45,330 96,139 7,076,562

5,930,533 192,500 217,537 6,340,570

2,134,084

251,853

1,085,892

Interest Income Other Margins G&T Capital Credits Other Capital Credits Total Non-Operating Margins

569,390 109,309 12,920,928 246,118 13,845,745

1,370,000 45,574 3,300,000 150,000 4,865,574

Net Margins

15,979,829

14,097,598

5,951,466

Interest & Other Deductions

Non-Operating Margin

TIER DSC OPERATING TIER RUS OPERATING TIER RUS OPERATING DSC RETURN ON RATE BASE RATE BASE CALCULATED *

3.98 3.39 1.40 2.03 2.37 3.73% 207,789,713

3.03 2.96 1.04 1.53 2.07 3.52% 207,927,592

2.00 2.30 1.18 1.18 1.85 3.58% 207,256,151

The Rate Base calculation in column B varies slightly from the calculation in the actual rate filing due to an adjustment for property tax In the rate filing, property tax was removed from the functional accounts and reported on Line 13 - Tax Expense Property & Gross Receipts In the Rate Base calculation above, the property tax was moved back to the functional accounts to which it was actually charged This adjustment allows for better comparison with 2009 and the 2011 budget year

THE PUBLIC SERVICE COMMISSION OF WYOMING NAME:

Powder River Energy Corporation

WY PSC

ADDRESS:

P.O. Box 930, Sundance, WY 82729

Tariff No. 6

1st Revised Sheet No. 1 Cancels Original Sheet No. 1

TARIFF RATE RIDER Class

Billing Unit

Residential (A)

Basic Charge 200 Amps and Under Over 200 Amps

$22.50 $27.50

$/kWh - All kWh

$0.05352

Basic Charge 200 Amps and Under Over 200 Amps

$270.00 $330.00

$/kWh - All kWh

$0.05352

Basic Charge 200 Amps and Under Over 200 Amps

$22.50 $27.50

Residential Seasonal (A)

Residential Time of Day (TOD)

$/kWh September-May All kWh - On Peak All kWh - Off Peak June-August $/kWh - All kWh

Residential Heat Rate (RHR)

Basic Charge 200 Amps and Under Over 200 Amps $/kWh - All kWh October - April Heat Credit per kWh of Electric Resistant Heat

Date Issued: By:

November 5, 2010

2011 Base Rate

2011 COPA

2011 Adj. Rate Tariff

$22.50 $27.50 $0.002797

$0.056317

$270.00 $330.00 $0.002797

$0.056317

$22.50 $27.50

$0.05680 $0.03480

$0.002797 $0.002797

$0.059597 $0.037597

$0.05352

$0.002797

$0.056317

$25.00 $30.00 $0.05352

$25.00 $30.00 $0.002797

($0.01959)

$0.056317 ($0.01959)

Date Effective:

January 10, 2011

Title: Chief Executive Officer

THE PUBLIC SERVICE COMMISSION OF WYOMING NAME:

Powder River Energy Corporation

WY PSC

ADDRESS:

P.O. Box 930, Sundance, WY 82729

1st Revised Sheet No. 1A Cancels Original Sheet No. 1A

TARIFF RATE RIDER - continued 2011 Base Rate

Class

Billing Unit

General Service (GS)

Basic Charge Single-Phase Three-Phase

$27.00 $32.00

$/kWh - All kWh

$0.05302

Basic Charge $/kWh First 200 kWh/mon/kW Excess kWh/mon $/kW First 50 kW Excess kW

$90.00

Large Power (LP)

$0.05131 $0.03131

2011 COPA

Tariff No. 6

2011 Adj. Rate Tariff

$27.00 $32.00 $0.002797

$0.055817 $90.00

$0.002797 $0.002797

$2.65 $5.35

$0.054107 $0.034107 $2.65 $5.35

Irrigation (I)

$/kWh - All kWh Annual Charge / H.P.

$0.04790 $15.50

$0.002797

$0.050697 $15.50

Outdoor Lighting (OL)

$/Month 175W - MV 100W - HPS

$6.95 $6.95

$0.23 $0.15

$7.18 $7.10

Street Lighting (SL)

$/Month 175W - MV 400W - MV 150W - HPS 400W - HPS

$6.95 $12.05 $6.95 $12.05

$0.23 $0.48 $0.22 $0.53

$7.18 $12.53 $7.17 $12.58

Large Power Transmission (LPT)

Distribution Component Basic Charge Demand Charge

$600.00 $0.80/NCP kW

Power Supply Component Demand Charge Energy Charge

$9.47/NCP kW $0.021164

Date Issued: By:

November 5, 2010

$600.00 $0.80/NCP kW

$0.003483

$9.47/NCP kW $0.024647

Date Effective:

January 10, 2011

Title: Chief Executive Officer

THE PUBLIC SERVICE COMMISSION OF WYOMING NAME:

Powder River Energy Corporation

WY PSC

ADDRESS:

P.O. Box 930, Sundance, WY 82729

1st Revised Sheet No. 1B Cancels Original Sheet No. 1B

TARIFF RATE RIDER -continued2011 Base Rate

Class

Billing Unit

General Service CBM (GS-CBM)

Basic Charge Single-Phase Three-Phase

$35.00 $40.00

$/kWh - All kWh

$0.05932

Large Power CBM (LP-CBM)

Basic Charge Secondary Delivery Primary Delivery $/kWh First 200 kWh/mon/kW Excess kWh/mon $/kW First 50 kW Excess kW

2011 COPA

2011 Adj. Rate Tariff

$35.00 $40.00 $0.002797

$100.00 $135.00 $0.04920 $0.02920

Tariff No. 6

$0.062117

$100.00 $135.00 $0.002797 $0.002797

$0.051997 $0.031997

$3.00 $7.00

$600.00 $1.05/NCP kW

Large Power Transmission CBM

Distribution Component Basic Charge Demand Charge

$600.00 $1.05/NCP kW

(LPT-CBM)

Power Supply Component Demand Charge Energy Charge

$12.29/CP kW $0.021422

Distribution Component Basic Charge Demand Charge - Trans Demand Charge - Primary

$600.00 $1.05/NCP kW $3.66/NCP kW

Power Supply Component Demand Charge Energy Charge

Special Contract Special Contract

Large Power Compression CBM (LPC-CBM)

Date Issued: By:

November 5, 2010

$0.003677

Date Effective:

$12.29/CP kW $0.025099

January 10, 2011

Title: Chief Executive Officer