Powder River Energy Corporation

“The organization has members.”

“The company is organized as an electrical cooperative, and therefore has member-owners who elect the board of directors.”

“There are no committees with broad authority to act on behalf of the governing body.”

“The form 990 and accompanying schedules are prepared by the company's controller and reviewed by the chief financial and administrative officer. The form 990 is provided to the board of directors for their review, and presented at a regularly scheduled board meeting to address questions. The process includes a review of the form by the company's auditors. Any necessary revisions are incorporated before the chief financial and administration officer authorizes electronic filing of the form 990 and schedules. The final version is provided to auditors for filing and to the board of directors.”

“All employees and directors are expected to be familiar with the company's code of ethics policy and are expected to disclose any situations that violate the spirit and intent of the policy, decisions considered inconsistent with the conflict of interest policy are reported to the entire board of directors through the board president, vice president or ceo. The board of directors shall decide if an interest should prevent the cooperative from entering into a particular transaction. A person who is employed by, or has a substantial financial interest in, a competing business or one selling energy or supplies to the cooperative is not qualified to be a member.”

“The company has a compensation administration policy which provides that the board of directors maintains final authority for compensation administration. The company hires a compensation consultant who provides information on market benchmarks and assists the company in creating its salary structure. The board of directors is the ultimate determining body of the salary of the ceo.”

“The company files an annual financial statement, the rus financial and operating report electric distribution, with the united states department of agriculture, which is a matter of public record. The company, which is organized as a cooperative, and therefore is owned by its members, makes all of its governing documents and policies available to them. Bylaws are provided when a new member enrolls, and all other policies are available upon request.”

“The company has interpreted the instructions to part ix, line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the by-laws of the cooperative.”

“Allocated capital credits 18,947,510. Retired capital credits -12,516,002. Patronage capital assignable -8,878,089. Net change in retired, unclaimed capital credits 1,470,664. Amortization of post retirement benefit -104,767. Net unrealized loss on investments 313,080.”