DOCKET NO.

k A,, tnf4~~343.~tr,dferr3T ,, iN THE MATTER OF THE FBLIB4Q FOR

---- 5% - id ., ... .S-i-urtCI.-u-^r.-- Al"PRQ!iAb OF CHANGES '80

8881GPdED 8ERWICE AREAS OF fmlNC6kkl-UNION ELEGTWBC GOMPI~~W AND TURNER-HUGCHINSON

.* -- -'- --w, .m.r-..-s-ba+..-, ELECTREC CQOPEMTiWE, IEPBC. --

P~blie CJtilities Con~mission of the State of South Dakota

P%<k Box !#3 Ake3t&rb SKI 57mi -0 10s 'l'g.!, [$US) 93.1-i961 or (WOO) 333-2859 SD only &a, ft&iS) 934-1 964

IVjllekid RuElard, Executive Director So~.;laxtk Dakota Public Utilities Con~missican State Capitah Fkiclhcz, SD 57501 -5070

43usr Mr. Brallard:

At the Annual Meetings of Lincoln-Union Electric Company of Alcester, SD (Lincoln-K2riitsaj onz Mardl 20. 1099 and Turner-Hdckfinsanl Electric Coopcrtzeive of ?8aikn. SD (Turner- klutckxin~owr) on April 8, 1999 the memberships approved !the consolidztiorr of these tt-a Coczpcra%ives. The new orgmimtion to be fomied on Janumy 1,2000 will b Sautiaeastem Eiectril: Claspcrative, Inc. Activities are in place to make this transition effective Jmuq 1. 2008.

X,iacoiwIJrrian imd T u r n e r - H u t s o n hereby request sf the South Dakota P~rlbli~ iJlliiti~s C:nmrni%sion to tra~~sfer the existing tenitsrial Agreeme~~ts of the two existing entities b $.~edhcastcrr~ EIeetric Cooperative, Iamc., effective on Sanlaary 1, 2000. We believe this reqaiesb IIIW~S all, the requirements as outlined in SDCL 49-34A-55 pn-tdning to the f~IlovJiixg items:

e9 elimination or avoidance of unnecessary duplication of facilities, a providing adequate electric service to dl areas and customers affected and, fs thc promotion sf the efficient and economical use and development of the electric

system.

Wt: Ol~tave enclosed several items foe your review pertaining to this consolidation of Lincab- flniort and Tirrncr-H.~mechinsonc to form Southeastern Electric Cooperative, Inc. ' b s e item$ arc as Sallows:

I . A copy of the approved Plm for Consolidaiion by ;he meinbers at their Anxlinal Meetings held on ~vlxcl120, 1999 and April 8, 2999.

3, Minutes of each Cooperative's respective Annual Meeting a ~ d fhe rectmve~~cd A r w d Meeting minutes for the purpose of counting ballots by L,'3EC,

3. A copy of the Ar-ticles of Consolidl~tionlI~conporatio~~, as a,pproveb by il-rc Secre'iwy of Stale of the SUte of Ssutk Dakota.

MUFIBJTES gBBz I'BhlE ANNUAL MEETkNG OF RlEhlBEWS OR TllUE

LBPdC0RN-tJNB0N ELEC'B'BBIC COibUPANY I\lhRCII!l 20,1999

O~lrsuanl to aotice having been duly given, the 62nd An~luai Meeting of !he Lincoin- I t~r ian ~ ? ; , I C E ( ~ ! C Compnny (hereinafter called the 'Y~orrper~.tive") was held in the Beresford High School Auditoriutir, City of Uercsford, Union Caunty, Soutll I)altota. on the 20111 day of March, 1999,

A barbecued beef dinner was served to members prior lo the meeting. Capital credit cheeks wcro available for members to pick up. A videoMaycare was (provided for children whose prtrcnts ellcnded the budness tneetirlg

Tlie tnecting was cerlled to ardcr at i.30 p.m, by Pre:sident Welter, who presided ltiraugliout hho mectitrg, and Secretary Bruns kept the ~%inutes thereof.

Prcsidcnt We!tcr dten asked tlwse in attendance to joi?: hinl in reciting the Pledge of Alleyinsice.

The linvoccztion was given by :he Rev John Mochel of Brooklyn EvangeEical Free Clrkrrclt nf wral Beresford.

8-Zoward Kennedy, Mayor of the City OF Beresfoid, flien welcomed tnembers and ~fo~ts ts to tho City of Beresford and commended members for the fine job being done by the Goq~cr'ative in providing electric distribution service t r ~ its membership. l i e also stlared his chiidl~crjd rccollccticttl of wlten the Cooperalive extended power lo his parents' far ~ 1 . 1 .

President Welter then asked Secretaiy nruns if a quorum was present. Tlre Secretary stared IIC had clrecked the nurnber of ~rrerribers registered, and that a quorum was present. The Sccrcta~y wah instructed fa a!t;~c!i a list of the me~ubers registered to khe minutes ofthe meeting.

Sccielary Rn~ns presented the lol lice of st;eeling togetimer with tha proof uT due nuailing to dl rrlembers of the Cooperative.

The Secretary then staled that all merrrbers of the Cooperative had rcceivad a cogy of file r~lirrt~tea of the dnnud Meeting ofMembers hs!$ on March 21, 1998, as they had been put.,;isilc?d irt tile March, L999, issue of tlie I , i t i c r ~ E t i - b l ~ ~ i o ~ Ne~es:u. I1 was tllcn duly n~oved a11d seconded titar the 1erkdin.y of [!lie minutes of the Mulrcl~ 21. 1998, Annu-nl Meeting be dispensed wilt1 and that they be ttppvovad ns publitltred in the newsletter. The ~noriont passed unaniniously znd was declared carI'1cJ.

Presidenl Welter at~nounced tlaan he would defer his comments in an effort tcr save time anct stated that what he intended to speak about would bc addressed Jaler in the rneding. Ile ccreclutlcd Iris con~ments by introducir)g the currcrli Board menbcrs,

Director Ostrraat was called upon lo plescnt the Treasurer's Repoit. Director Ostrsat prmmkcti slides highligllling the Linunciwl report printed in the Annual Wep~rt ~ n d other iiems of tntcrest i t was theu drily rraoved, seconded, 8uul carried t!iat tlte Treasurer's Report f ~ r 1999 hs r:pprovcil as prim~ted: in tllc kitrual Mepar I.

Tha Presidanl then stated that tile next order of business was the slectian af thws: directors to each hold oPPicc for n three-year Ierm ile then stated that a biominati9g Committee Meeting t l ~ d been lieid in accordance with Cooperative Bylaws.

Onval Larson, Secretary of the 1999 NorninaSin~ C ~ s i ~ a : l t t e q vias called on to 3rwea: 1Jic Nominating Comrnillca report. Mr. B.arson informed n ~ e a ~ b e ~ s thoi, in octordancu witkt ttlu FJonti~~stic~g ComrrritLee Mecling 1dd on Febnlary 4, 1999, the fallowing niernbers were nominated as candidates for dircctors:

pistricr: #2 fohn Schutic. Leowird Welter

. Cant~n, SD Harrisburg, SD

pistrict if3 Virgil Fndness kennox, SD Cietus U'eis . . Tea, SD

Preddcnt EVeltsr then asked members to corrsider approving the Nominating Committee repax3 a5 prcswted lit was then duly moved, seconded, and carried to approve said report as presented.

'l'he report of the ccnnmittee on noti~ir~a~ions was ordered to be identified by the 5aretnry and a copy aer:.exed lu the litinutcs orrllis mccting,

Presideu~i Weltcr then stated that ir! accurdisr~ce with Cooperative Bylaws, Cooperative mcrrrkbefs flAtsn ACber!son, {Eary Bowill, Nor~ntrn Kuper, Ron Larson, Robert Muasil, and Jint Pappelts Faif t3c~fk x@lccl@d to sewc on i l~e i999 Election aud Credentials Committee. Cie then iequesird h r + j ~ t Alter ney Jttllra Gubbrud to preside over the c)ec-tjoe

Attorr?oy Gubbrud t'iten stated that no nolninaiionn for directors had bee11 made by petI!im)~1 or; paorlded in the Ryiriws. He then cnlld ror nominations frcjrr! the floor f i ~ r each district. 1 A@te txcillg no nominations from the floor, ke tfeclarcd nonainalio~bs closed. Project Attorney fjtihfat-rrd inlrcrdtsced dinector cartdidales present, atid the membcrstnip was instructed to vole by t.niall;rrr tl-rcy rccrivcd itlsoli icpistralion t"or candidates ol'tlreir ciioice

' ~ I I ? ballots Pot 3.olirrg for director candidates were picked up by the Eleclian and Crw9aatiala G'nmrniltee n:cc:jers who proceeded to count and canvass atlc same.

R~rc~fohd I3~ace in Motion, under llle dirre~tioll of Sheridan Swee. then provided rttctt~bcxt; &nd g u ~ s with a dance routine

Mani3,ger Schardin thanked all f ~ r tla oppor-Lunity to serve as manager and wed a slide prngratn tu w p t ~ on the record growth or our system. Other iten~s fnighIighLed were the capital credit sck*rer:tst;nt. n~arktlting loans arid rebates, the Turtle automatic meter reading program, and Year 2000 cicir~np!i .~.n i l ~ alsrl stated that he was p r u ~ ~ d of Qur electric rate slabiiity over the past 1 I years. Ilsrn~etce;r, accvr4ing to the 1999 budget aud fina~~cial projections, be inclicated ttnat the Cooperative will rmti t raise elccfiic rates later this year, perl~aps in the fall.

Manager Schardin then introduced all the Coopemdve's en~ployees. Iie presented I,r*gt!r s f Sentice picrs to Milce Peters (20 years), Rita Adarns (15 years), Curt PlcsYlhe (15 years], and hfmk Ntiu ( l U years). iile then preslentcd a pin and 8111 engraved watch to Tim Ctia~tcc for 25 years of IhMl Ct?

Director Podness introduced the guests and concluded by presenting an engrrrved watch 44 Uirncfer Ulriksorr for liis 25 years of service as a director.

Director Hofer tlext explniried the sclrolerrslrip prograln and announced lllrai Amber liiztsrr, daugllicr of Alvin and Calla Ylaan of Cberacellor, was tllc zecipient of the Cooperative's 19119 lEasitt Elccllic Power Cosperalive $1,000 scholar:ship.

Prcsidcat Welter then called for ur~fillished busil~ess; there being none, ha called h r ~ ,~LYV hxiiness

Prcsidcnt Welter tllesl read a plopused ~esslutiori to defer die tabulation of the proposed t*?$1-"~catsd~zif'it\ vole nt~d nsked for discrission: being none, it was then duly moved, seconded, and carried 1Far dr6r i~sobttia~t Izr; approved The Secrelary was irlstructed to attach a copy of tlre resolutioti to the ~mrart:rz ef rhr : ~ ~ @ t i i ~ g 8s Ex!\ib~t "A''

President Welter tlten commented on the consnlidntion and indiceled lhat the Bonrd uir~$%;t%l~sisly agreed that ncccrrding to tjle study ~ n d ~ C C R L I S ~ of an~icip~ted clianyes in our industry, ?;ixt;h $24 d ~ f t k f u ~ ~ t i ~ n , they believe tlmt ihe corlsolitiation is in the Cooperative's best i:~temst and i-gag#r!tr,"l~rt i i ~ appsoiin! i o tlilc nietabcrship

k~ i i i tk~s t Welter called on Manager Scket.tlin lo pweset the hisi~ijr and findings of the cejfi%trli4etir~ti study Man~get Sclia~c!in presented a sinnmary olthe histo~y of the shared management arr9rag~trr~ot tc;lrfing up to nrad ~!~rougii tlic completioa of the consolidation study, including the arskeilntplr~arts u$c:{ in ii.a s[udy Ic prcsenfcd tile fiildit~ps OF vatious s t a r arid etiirrloyec conzl!tiltect; i ~ t

&$r;;trs rrf t ft:mon ICcsau~ccs, Upcreiior~s and Engiriecring. Atln~inist~atio~i and Finance, a!~d Matketi~ig a i d i'u~ll.rt!\tr SGTV~CCS 1\11 col~ibi~lcd, the plujeckxl acciltrlulntioli of savings for all areas totaled Si,E@4,?Orj 'I hc$c savi~~gs, along will1 i~nproving or a[ lead niiiintalniog existing services and ;?astlinnitnlt ihc. C u u ~ ~ c ~ a ~ i v e to be able to better nleet challet\ges, change, and perhaps de~egulat'ron w h ~ ~ f i B ~ C ~~ST~SCCII in our intlustryk snci.,r hture, Miere ~Iie l~igl~liglits of i l~a presentation,

President Welter then calleld for qucstione regarding the proposed consolidation and the rrtklrnalitar\ preucnted. Anor tlrarougl~ discussiun, it was then $uly moved, seconded, and carried to

ihk qualion of cnrrsoliJarion to n ballot vote T'ke nlotio~v pnssed andl was declared carried.

President Welter :;ex1 called olr Altor~~ey Gubb~ud lo conduct the vote on the t4:flscslidbtion Attorney Gubbrud tliea stated the rules for the vole and reiterated that, as per the ~~rc$dtaO~un adeptcd c~rCicr i n l l~e rnecting, the tabulation of'tlle ballots would be deferred u~itil April 8, IW)i>, irt trlriel~ rime ~ h c f~lcclion nnti Grcdcntinls Cot~~~iiittce fit t l~c recoris'eeitig of dlis hnnud Meeting ts;:~\rld 8imr,iltarrcoatsiy count the ballots i n co~ijut~ction with the Annual Meeting of l'urner-11utchinson Ftacrric Cui~paaiivc, Inc , wllc~e they vvoitld cnurlt a;~d canvass the sat'rie f ~ c a their mer~il)erslllp IPe umtd tlthar urrril tljen, tliio balluts would be sealed and deposited in tile Slate Bank of Alcester. Further, nrffcr taibularinn, ilrc rsst:lt uf eacll c~operative's vole will be ~ ~ ~ a d e available to tile menzberdrip by t ~ I ~ v / ~ i t f i ~ , I D ~ ~ C I , n~\d prcss releases.

'l3r9, batlots for the proposed consolidatis~s were picked up by the Election tsnd tmrnlerttiatls Con~mittea n~en~bers ~vho deposiied and sealed tiiern illto a safety deposit box by each Yigr~ing n srl~l v!nd plrrcin~ it 011 ttic sa;iia lo prevent i t s op~i ing witl~irut rla~magirig alie sen!. 'Tl~c depusil i:tx wns tJ~crt p$a\ccd in the custody of Ataosney Gubbrud trr be deposited in the State Bank of Aleester ~ t r c i fc l r i~wd 04 April 8, 1999. for cnucldilrg

President Welter than called on J ~ ~ I I I Qiubbrud, Project Attrrr~~ey, b present t l~c rcpori OF the EIsction find Cscd~alials Conin~ittee on tile results orth!: c8ectio~1.

Ron hiderson, Besapford, SD Wendy Lawren~on, Beresfofd, SD

John Schutte, @ir.nton, SD Leonard Wetter, tlarriaburg, 5D

Virgil Fadnetis, Lennox, SD Cletw Weis, 'E'aa, SD

hmi the tally of ib vote of t l r membership, Ron Andoron, 1-eonard Welter. end &%pi k d ~ ~ 1 ) %+me & ~ t C d i. direclc~rs of the Coupaalivc to ilold oGce For a term of thrn ?cars or ~ ~ a * d W S S - ~ ~ ~ T ~ JWC h e t ~ elected arrii rprafified

~ ~ a i d e n t %kd8r then asked for n motion to recw the mae~inp to the Cooped8tive-r i3ea8qmfln% id bbnler. SD. otk April 8, If999, at 7-30 p m to k pled. ed over by Vice President 3 a f t ~ i;wn nwkion duly i~mdr. seccir~ded, aod ulsoi~noudy ceried. tlic meeting irar adjourned at

X , h RE5GLLI"I"BON TO DEFER TABULATION OH THE VOTE OF 'FHE

~2$JNSC~XXll>A'~10N 1'PIOPOSAL UN'FHL TURNER-MBJgCHILNSOM HAS AN

0%f4$3jt*rUB4TITY TO VQ'I'E AND PWBVHDE FOR SilP\dULTANEOUS PUBLIC

AlGk+"J8i&NCEh-3EkkfT 8 F THE VOTE THjEWEON;

%rl.fEP&h%, a majoriry vote of both cooperative^ is rtecesapy for adoping the

aat1zsXkf:s;ri~r3 l,suparal; and

WX-fEREi%S, mtch coc~peraeive membership S ~ O U B ~ mdce S A C C ~ own determinz~hopn of the

~ts'rrwffr2atian pnaaptrsal aad to insure fair considerationi thereof; " i l irc Rnard of Direnors of Ut~coln-Union Elenric Companjr hereby recomwiends to its

ra"tenlbe.rshij~ rh8t s i l s Ztesaiutian be adopted at the annual meeting to provide tlral: a written ballet

wrtz d alre members atexding the meeting be taken on the consolidation issue, after the election

rrL zhc I:>ir~aors, and aoher business and this annual meeting of .;he membership of 1,Inncoln-

thtlan lie re~rrcd until the membership of Turner-Iiutchin~on Electric Cooperative has rh

a'rpp~>~t~i~iry FQ w e e 011 their cansolidartion issues on April 8, 11999;

f'urther, %hat ekac Election and Ct-edenrials Committee be inrstructed zo seal the: wxioren

l:allarr collected nn rhc consolidation proposal until rhe reconvened membership rnaerinp, held

;oErly for the Furpare of completing the tabulation of the vote on the consolidation propossl at

i he ~ ~ ~ ~ ~ i ~ ~ e ~ ~ ~ ~ ~ m ~ w b e r s h b p rraaering to bc held at the cooperative headquarters in AE~ester, South

Ifalrucr. an the ilih day of April, 1999, beginning 2t 730 o'clock p.rn+; and the public

,trrfrittsnmmctxp of tilt: vote af the cansoiiidatiora issue shall be si~~ultaneous W ~ E & announccnnem

rbl I!W l'arf*.r-klutdlinson vote on that evening, then this anoual meeting shall adjourn sine die.

"I'hii~ the Elcctilosjis and Credentials Coa~nuittee, officers and staff of L i n c o L ~ ~ U i n are

I\i;~&y Jirrnm4 ro tgke such actions as may be necessary to accomplish the pl;;poul of this

i""'Y.'fCY q = r c , % J a r t , Of%,

&%%PlbTES OF BtECDNVENED IBNNLJIBL MEETING 69P YmMBEBS A'F GS'EC?PEW~'XVE IjEADQUATiaTERS EN ALCESTER, SOUTH DAKOTA

APNE.. 8, 1999

I*u~$u~rn ir, resolution duly adopted by time mei~bership :a h e 1999 annud meeting of ~&$'mbsrti$ of Lii~coln-Unioix Electric Company, held in Beresf~rd, South Dakota: on March 2ttb f9W, ~ h r arrrausl eleetirng was reconvened a t 7:30 o'clock p.m. on April 8, I999 at the ~ Y ~ ~ ~ * ~ P $ x ~ v c beadquartcrs irr A\ccster, South Dakota for tile purpose of the Electinn and g2g&cn~i~lb Comiixitxees tabulation olrhe vote of rhe membership on the consolidation proposrl. sir' . riwf%e$irtairr~r Raat At~derson presided over the rneetingarldJokn D. Gubbrud, Project Attorney, a x i i t . r ~ ~ e c r ~ t a r y rd reconvened meeting.

PL'21 rtx~~nbccrr; af the Election and Credentials Cumllrzlttee being presenz; in persotr, Pmject- htr~rr iey , john D, Gttbbrud; Staff - Dwight Hemme, Office Manager; Rdai*k Neu, Member F i ~ r i g e ; Empisy~as C2urt hndn?rson, Raihy Wiaddelr and several others arer-sr preserat for portions of dxc rr;~rrnirlg mwt'al-tp.

Vic~PCh~irrnan, Andes011 treated those present with birthday cake for his 5oth birthday. Alpk-wh;atiafi was exprcssrd from dl those in attendance for such treat.

C3ffice h4a33agerF Dwight Idemme, distributed expense vouchers for the csmmittee ~te~trbrrr ?ad expressed appreciation for their extra efforts to attend this evening reconvened rncaiag aE tl-ae rsncmbiersl~i~.

"S?E~* mirau&s r;n%rhe Elmiurn and Credentials Committee and Certifiace of ConsoEidation iiieg'tiorg are attac1D1ed rt.0 these minutes and by this 1-eference made a part hereof.

:kt ejlproxin~~tely 8:45 o'clock p.m., the Chairman of the Turner-Hutchiason Election 9616 C : T " I I E ~ ~ B ~ X ~ X ~ ~ Caminsnittee teleptncned and exchanged iri.form:itiora about the results of chc etesrixln 3s fxrlluws:

,Ikin~~Bn-Unim Turner-Ht~tckinaem 3;sr Corrso!idation: 143 304 ,A&ninsa the Cransaiidation 139 44 Spoilad Ballo~s - 4 - 6

"i'oid Baijuts Cast 286 3 54

n sirnuluracous public aarnouncemcrrt of the election result was made to those paeser?t wiaks n~ilfiearion via facsi!nil~ mail eo ekrs Ioczl tejevisiorl and news soirrces by the staff.

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8md Scatxt~dif~ GGFIQPA~ h4anager

c : 1,eorr;frsd Welter, LUEC Board President Lyxxt:fl Mcfer, T HEC Board President

John McDonald

PRQPOSmPON FOR CONSO'ILmATION OF

R - W % ' C m S O N E 9 9PaC- TO FORM

7 mc.

?his Proposition for Consolidation is approved as of this 27" day of J m q , 1999, by the 13~~xd5 of' Directors of Lincoln-Union Electric Company and Tune r -E t t cbon E,lectric +2aopea;tdve, fnc., (hereafter referred to as the consoIidating cooperatives) both parties being South i l & ~ t a Rural Electric Cooper'atives, organized under SDCL Chapter 47-21.

W E E A S , it is deemed to be to the advantage of die members of both consolidating ~bi3pgrtff;ive~ in the promotion and encouragement of the fdlest possible me of electric enexgy, pzrcticirrg all consewzition guidelines in the territories now served by the comscrlidatir~g caopcrstives, at the lowest cost consistent with sound economy and prudent mmagenlent, that s:?baf operatives be consolidated under the laws of the Stace of South Dakota; and

!%%EWAS, the board of directors of ezch of the consolidating cooperztives, &er a srrz~iew of rd.lc ennsolidaticrn study, deem it advisable and in the best Interests of each cooperative e~~xd its respective members that Lincoln-Union Electric Company md Turner-Hutc12imon E!e~tAc Cwoperative, he., consolidate to become a single cooperative.

NO'IV, THEWFORE, It is mutually agreed by and between the consniidatiag i:f:~olaerntives~ acting pursuant to the provisions of SBCL Chapter 47-21, that tbe co;nscriidathg cooperatives shall consolidate m d form one South DBakota Rum3 Electfic Cooperative Qn d ~ e ff~lja~ving terns and co miitions.

l,ixlsaln-l!nion Electric Corslpany at its annual meeting in March, 1999 and Turner- kiuech;:nson Eleotric Cooperative, Fnc. at its mual meening in April, 1999, or such ofner date as iite board c;F di~ectcsrs sf each cooperative shall. approve, sIzal1 cztue to be submitted tcr t l - i t 5 r re$pzctive- membessf~ips, consoiidation of the two ccapemtives.

13alar~ce of the transitional period, or it may accept my plan of attrition agreed to by the tzoad to reduce the representation of the other consolidating cooperative.

3. Wiilr: the transitional Board of Directors is serving, all decisions of the board shali be by a ""super rnajori~y'~, defined as two-thirds (2/3rds) or more of the then present and voting board. A quorum of the consolidated Board of Directors shdl be the araendance of two- thirds (U3rds) of the $hen servi~g board membership.

4, At annual meeting of members sf the: consolidated c:ooperative in 2091, as1 election tviL1 be conducted from among the current directors, fbr the purpose of electing anr: director from each district. Prior to the 2001 annual rnecibng, the consolidated B~ard of Directors shall determine in which district, directors &ill serve a one (1) year tern, a two (2) year term, and a three (3) year tern. Until the Board of Directol~ determines otherwise, there shdl be eight (8) director districts. Four (4) director distsicrs sbdi calzsist of the territory of Tw-er-Hutchinson Electric Caloperative, Inc, a d ttlat territory of Lincobn.-Woo Electric Company situated in Turner County, South Dakota The remairing four (4) director districts shdl corsist sf the bdarrct: of the Lincol~Uniorx EIc~tric Company.

5, Afier the 2001 annual meeting, all directors will be elected to a three (3) year tern. Persons desiring to be on the Board of Directors, shaJl take out a petition and upan securing the signatures of fifteen (1 5) members fiom witilk their disticr. shall be placed on the ballot. Such petitions shall be due in tlhe principal oEce of the Conscslidated Coaperztiveno less &an twenty-five (25) days before thi: mud meehg. Nominations $am the floor shall not be permitted.

l3. Tile ~ ~ s i t i o n a i Board of Directors shall elect the officers o f &e consoIi&tecI c-oopemeit*e at ta reorgmktional m e e ~ g called for tha.t purpose on or befare Jmuary 1,2000, The newEy e1,esred off2ccrs shdl assume ofice on the effective date of rife coaotidatio~; md &nil hold office EL$ s ~ T . forth in h e co~s~l ida ted cooperative's byI3ws.

C, A Manager des ip ted by the Board of Directors wiii direct the aperations of the Csaperadve. The Manger shall be responsible for the management =d dkrcti~rt. crf the work farce.

Upon said consolidation becoming effective and ~41Iiau.t aey other or zddiriand ac~ilan:

?%, E;ich and d1 of the members of the cilnsolida~ing c * ~ G P ~ ~ ~ ? ~ v c s and dl o f the credits 1% &he z~~tntltrm of such members shall be converted into and kcornr: a member of or a credit in :he 3.ccounts of the cansoiicked cooperarive.

8. 'I%.- afsigned service temtolies of rhe consolidarixg cooperatives shzil be assignxi io =Tj. become the ,assigned service territory of rhe cun;csli6;3tea coopcrztive.

. - . I f 04: the assets of the consolidating cooperatives shall then become the assets of the e.oiiisolidare8 cooperative. At the same time a11 of the Iiabiliries o f &e co~mfida'ifn~; caopcratives shall then become the liabilities of the consolidated cooperative.

f t is ar,hrrwlcdged that the conscllidaiing cooperatives use different methods for the genemi retirement of membership capital. "heref~re , the consolidated Board of Directurs shall, srahtish a~fl equitable system for the retirement of capital.

No regular hll-time employees of the consolidating cooperatives will be terminated a a direcf mulr of L~I: consolidation. All such employees will be retained by ahe consaliri~~ed cc~~perative in substantially similar pay grades m d overall compensatioo. 9.aOmVERv &e cnascrlidatcd cooperative (as the employer) retains an at-will eraployment relationship vfit,h the cr~playees of the consolidating cooperatives. A11 employees shall be subject to the crnp).oyrnent policies and procedures established by the consolidzted cooperative. Wetiremenrs, voluntary tenmination, or any other reason not directly resdt i~g from tfie consalidatiorx may occasion reductions in force.

Tilore will be no rate changes effccted as a result of the comlsalidatiori, However, t-his shdl xzsr prevent the Board of Directors of the consolidated cooperative ffo~u esta,bIishing different rates from time to time based on appropriate rate making principles. Service rates for fo~n1ar i-riernbers of the consolidating cooperatives need not be the s i m . However, it is an objective o f Cr~e Board o1f Directors of the cor~ol.idating coopemtittes, Wi cormon raes will be deValoped in the fume when it becomes possible to do so without tile membership o f one (sf bhc consolidating cooperatives subsi,dizing the membership sf the other.

Bowd policies of the conso:idati.ng cooperatives will be revietved by a joint pcafiey c c s ~ ~ a e e , which will propose a new set of board policies to the ccnsolidated Bead s f Directors, Until such time as the new board policies are kdopted, the policies of the ~ejep~ec. co~peratives shall cor~tinue to be in effect for the former mesr~bcrs oftbat caopera~v:.

Foilawing the approval of the comolidation, the transitionir! Boad of Dircctars shall rake action to adopt Articles of Comolidation, The transitional Board of Directors shdi also take action to adopt bylaws which will be proposed for ratifrl~ation by the members of' the Consoiidated Cooperative at their Annual Meqting in the year 2000.

,,,, .,T, 1 !is, , b, ' r ~ LO/ H n.-p<nkn; J , , : - < ' ; J . ;

. f l < 1 1 Following che'consolidation, if the Road of Directors of tb.e consolidated coapcrative shall consider or deem it advisable that m,y instrument or further assumce be destnbic In order !a eviderice the vesting in the consolidated cooperative of the title of my property, assets ur rights, the appropriate OEcers of die consolidated cooperative are hereby authorized ea excctlxc md ackaowledge all such instruments and to do any and all other addi"ticana1 acts 0;

things as the Board of Directors may deern necessary or dcsirabie to carry out d~r: P'JrFQseS GC p-at'isionls of this Proposition for Conso!idation.

VI. APPROVAL BY WUS, CFC, PUC & OTIFE-IEM

I.,lyx~~ approval of the conso1idatio.n by the rrien~berships of the consolidating ccdj~er~tives, sat-ice shall be given ts the R u ~ d Utilities Services (RUS), ihe National Rural

1: Urllrfies Eirnance Corporation (CFC), the South Dakota Public IJtilities Coriiilission (PUC), East IUvcr Electric Power Cooperative, Inc., and any other pubiic regulatory bodies having jaw'i$dictin;~ over the cwrisolidating cooperatives. The consolidation shall become effective on J,muaiy E, 2000 or ~tpon receiving written notice of approval frorn the above entities, whichever $14.1~1 f acztu. 1at.

WI0 APPROVAL ~COmPdE9A'JTIfC~N5

This Pr~fpasition of Consolidation has been approved mcl adopted by the Board of Dixectors irf ~ , i % ~ k i of the consniidating cooperativas and shall be submitted .to a meeting of the members of e2gh of the consolidating cooperatives iril the manner provided by law. If approved by z majority r ~ f ' tkte members voting thereon, this Proposition of Cor~olidati,on shall be adopted md sh;lll bezonna e f f ~ ~ t i v e upon the dates set fort& herein, Boards of Directors of Lhcoh-Union E$i;lg~tri~ Cotnpmy and Turner-Hutchirason Electric Cooperative, Tlic., approve afid zzcumsnend to ~ I ie iz mcgmbl;rs !he adoption of this Proposition for Consolidaton.

@l iViDiESS WHEREOF, the parties have heremto set their hand and respective seal OD %hhi.; the 37th &~i o f Jm-ary, 1999.

<CO13POK4,.nE SEAL) BY:

President

"IURJER-mTCHINSON ELECTRIC

f C0338k4TE SEAL)

-

Btr $,I"' Annuai hilernbcrstlip Meciing of Tuner-I-fukhinson Electric Cc~operative, Inc. s25s;s% hklr! ~ r l t "ylillr%d&y, the 8th day of April, 8999 3P, taPe High Schod Auditoritm in the city of $ ? - rc~nl:-tzt, + ffrr(elrir.laan County, State of South Dakota pursume to the mexed "Notice of Fk!%,%*2~lg'*

$t~:ytalazr,fim sa.rtax.I at 9:00 PM, Prior to the meeting, a health screening w~ available fgssrta I&c C " ~ Q Q J ~ I ; ~ I ~ liospital, menltrers cotald view various displzys, an evening meal wzs senfed &b E 'etai~al ( 'it~~rin~;, arid the Vrt'cr~am Public Nigb School provided musical entertainment. .i"k&irerii rtciirmi@~ t,vcp.t. waiX&le during the: rneeting under ihe supenision of the Freeman FHA.

S-anraor dil.ceton snd ca~xplayees and other special guests i,n attendance were recognized tq&w.se ilks: ~~irecaing t;vi cat tad t c ~ ivrder.

I-gl&$i I-kfir, Board X'rcsidcnt, called the meeting to order at 7:00 PM with 418 registered ~srzrftiif7n;:fs f'r~'g~gr11, 'fhc N ~ i ~ i ~ a a j Anthem was S U I I ~ by Kay Waltner md Sheila staff inne^ii+~rs 1'4 t%r: Freeman I;.iiigh School hYusic Depetrtnlent, followed by an invocation by Rev. fPrcfwud d;'?r~3aring;-r, sv.iniwt:r of the Frieden Reformed United Church of Christ of Tripp md 'an ddrnbttc (?I' zvgfccnme hy P:'liiEord qaden, Fvlayor of Freeman. Doyle GuthmiUer advised that a sliii'nfi+j~$ % i ~ 5 prdscnt arid tl~at the tnernbers were in legal session to trzvnsac-t official business of i t@ n;baip:fit$?Sj VC,

A 131~ttiw .TV<IS duly madeI seconded aid alpopted by voice vote ro disgi.,nse with the r~;t~!iwg r$ the Nuticl: of tl-ic Mecting and approve the notice a mailed. A motion was also duty -ift~$dc, ~c~ttntjcd ttnd acfaptcd by voice vote to dispense with the reading af the 8lii1utt.s of dre fz:~+ai$.itis ,.%a~i~ua% h4ecting <and approve the rnirrutes as mailed.

'jTtj jtClc1.3tt ~n~ t - e tirns: for discussion of the proposed conrsolidationr, Lynell. Hofer dispensed v,;$h t t ~ c i*~esit.l~i~k's Report, He then introduced the bow13 members, attcmey and manager a td I x rii~f+kwl 3iit?$~5 and dns: cnlployecs f ~ : theis dedicilted sewice ID the cooperalive.

f'i.;t.e &iixrc~a lyrcr;o~uc$ the Treasurer's I2epal.e in which bc preserjteri a slide s11~iv rtscn3i-.iurkLt.;i1$b tho linmcial staterneats for 1938 aad the financial p~sltion af the cooperative. The t\ fi~a>;~~ri:?5i Rc~-~JF"c viati$ [heir approved upon a i210ki'tn d d y made, secondbed sad adopted by voice &':flc.

In the h4.magcr1s Repoa. Brad Schardin presented a slide show thst reviewed rkrg

ariivit$es of the cwperative during 1988. Manager Schiardin closed by intraducing the srt'tployes of the cooperative.

,4trameji Ken Beltsch explained rhe provisions of the: bylaws regarding tl~e norninatirzn md FICG&XI uf directors. He introduced the director cafididates for Districts S2. $5 aard $8- Bcc~use all three director-candidates were unopposed. Attorney Eerfsch asked for a 1il:rrtioa to n;at a unaalimous ballot for the candidates. 4. motion was nnadle, seconded and adopted decluirrg $hr kllot61:g directors duly elected for a period of thee yeas. Directors elected ta tle!d office tulitii $ h i s successor shall have been elected md shall have qualified.

Oistsict #2 - Dean Tieszen of Marion, South Dakota District #5 - Leslie I'ehltaaff of Tl-ipp, Soutk~ Dakora irisbric1#8 - Leslie Hanson of 'Viboeg, Souxh Dakota

President Wafer introduced and briefly di~c~ussed the ~:roposed consolidation of Turner- Ffutchilxson Electric Cooperative, Inc. and Eincoln-Unim Electric Company. Filasaaget- Sc'hnrdit~ was then introduced to present a slide show su%nmaiziirrg the process and results of the co~solicSati~~r7, study. A question and answer period folloaved the prcscntations. Attlarney Bertsch thm shaircd the meeting during the balloting on the proposed aonsotidation.

Following an explanation of the selection process for the scholarship program cosp~nsored by the cooperatiTde and Basin Electric, Dean Ticszen announced that Nick Ortrm.iair of hqarion was the winner of the $X,OOO scfiolnrship for 1899. ]\Tick srccepted he schaharship a d u certificate in recognition of his schoiastic achievements. Nick is the son of Ron ar?d Lir~ba

I-ynell Hofer then called for any old or 11cw business to come before t11.he nnecting. Atloramey Bertsch ;and Lincoln-Union Electric Board President Leonard ?Gaiter I-eporied ttie rcsal~s of cdcb cooperative's member vote on the proposed cxnsolidati~ri. Attormxep Bertsch r%ported that Turne~Wutchinscsrr members cast 348 ball~ls with 304 in favor of t11e eons~lidntior~ and 44 opposed. President Welter reported that a1 Lincoln-Union's hcrntlal Meeting held F+ituch 20, 1999* 282 ballots were cast with 143 in favor of tile consoiidaeiora nrrd 13'9 opposed. I-lnvir~g received a majority of the ballots cast at each cooperative's Annual Meeting. the r:ctnsnlidarion ai' I'umcr-Hurchinson Electric Cooperative, Inc. md Lincoln-IJnien Electric Campai~y to l'orni Sautkcastern Electric Cooperative, Inc. was approvedl to become eftkcrive January I , ""00.

Chairman Lyned,l 1-4ofir then der,lare$ &%7,e As-ma1 Meeting of -tf~e h&e\h\bers r l I ~i\me~-kliutchinson Electric Cooperative. Inc. r~%ciaily adjclrumcd at appmsimafc!g %:Sf) I%(; ujron a motion duly matle, seconded ~ n d ;:ppr.r?vP,d.

- "A-

Secretary

I S i .*

CERTIFICATE OF CONSOLIDATION

s k a t e sf k u t h ~ a k & t a , he reby c e r t i f y t h a t d u p l i c a r e o r i g i n a l s o f t h e C e r t i f i c a t e of C o n s o l i d a t i o n have been r e c e i v e d i n t h i s o f f i c e - - > - - - c ---.- 3 ,-- ---c--- A - 7 - - .

ACCORDINGLY, and by v i r t u e o f t h e a u t h o r i t y

ELECTRIC COMPANY and TURNER-HUTCHINSON ELECTRIC

OFFICE OF THE SECRETARY' OF STATE ii P !i

t I . J O Y C E HAZELTINE. S e c r e t a r y o f S t a t e of the

8' ~AI ICL art: rvlarla r;o c u n r v r l u LU ~ a w ,

i v e s t e d i n me by law, I he reby i s s u e t h i s C e r t i f i c a t e o f C o n s o l i d a t i o n t o LINCQLNyUNION

COOPERATIVE, I N C . t o form SOUTHEASTERN ELECTRIC COOPERATIVE, I N C . I

I N TESTIMONY WI-IEREOF : I

r o f t h e S t a t e of South Dakota a t P i e r r e , t h e C a n i t o 3 ,

jP t h i s 3 0 t h d a y of J u n e , 1 9 9 9 ,

ARTICLES OF CONSOLIDATION OF

9 'mc, - - . . O - - - - Y ---_.-'.".----.. - m -..- - - - -

lidation are executed pursuant to the provisions of SDCL S

rile name of each consoIhdating cocjperative aod the sddres of its prkxip& office ficiltlluws:

Company Tunler-l3utdhimon Electric Cooperative, he. 501 S. Broadway A~\:mue PO Box 388

05 Maion, Sf3 57043-03813

A3XTICLE mY$9 - NEW COOPER4'II'ffBa

The name of the new coope.mtive and the address of its principal crfEim arc as follo\%s:

The consolidating cooperatives, Lincoln-Union E l e d c Company and Blectlic Cooperative, Inc., hereby a g e to the consoTi&fhn.

Ihe names and adbesses of the hmiriond board of &uatorz oftbe fr~lkewsr

Leoxm~d W P ~ K L;~efl Hofer 47405 27Y' St. '2'9618 431" .kc. 'Kds$wgz SD 57032-8216 Frcemm, SD 57029-9630

Rorrild Anderson Leslie Mehlhaff 29526 468'" Ave. . 28256 41 8Ih Ave. Bcresford, SD 57004-63 09 Tripp, SD 57376-9659

Harley B m DCE Heeren 4.671 5 282"d St. 27150 459" Ave. Lermox, SD 57039-5639 Parker, SD 57053-5306

John Osbaat J e q Graber 27780 482" Ave, 44797 28 1 " St, Canton, SD 57013-5545 Pxlcer, SD 57053-59 i 5

Lee Cwlson Doyle Guthxniller 29465 470" Ave. 43579 288" St. Ben%sfoE.d, SD 57004-6460 Memo, SD 57045-730113

Virgil Fobess Leslie Hamon 46873 28@ St. 28950 453' Ave LCI.INXOX, SD 57039-571 2 Viborg, SD 5'7070

Chris Hofm Paul Lueblce 46'730 271" St 21712 421" Ave. Tcsa, SD 57064-8006 Parkcston, SD 57366-52,01

Stme Ha~hberg Charles Blsen 4655 1 293"' St. 45079 294*' St. Centerville, SD 57014-6320 'Irerie, SD 57037-53 16

Herb U&on D P ~ Tieszeu, D.C. 28548 480"' Ave. PO Box t 78 Canton, SEr 57013-6144 Maion, ST) 57043-0 178

TPze a , b v e - m e d perso% shdI sene as directors until such time C~mswlidatFan designates..

ARTICLE P= - TERMS fZ.@11%'8CE<BNS

$we tt,s set fs& h 8.e &=opsilion ;for Conso%d&cm, which %w Directors md wembmB;-ip of both. ~ e ~ ~ ~ ~ l i d i % t i ~ ~ g ~ w ~ w c a l i ~ i e s -

All rnembexs of tile consolidating coopemtives shall b ~mper~tive. Ogler lpe~~om may become members of rhe &e: s;csmoli&ted cooporativc's by-laws. Each member sh t i j vole in the afZirs of this cooperative.

Tlie purpose shdl be md thls cnnsc!:,dated caopmtive shxll h my md dI business and activities authorized by law f%le business sf generating, inan&ictm.ing, purehas cieckic e~eergy, aid distributing, selling, supplying and to govemnncntal agencies md political subdivisions,

To the hllest extent permitted by 'The South may hereafter he amended, a director of the consoii iizble for monetary dlm'ages for breach af fiduciary docs not eliminate or limit <he liability of a dire to the cooperative or its mernbers for acts or interzeional miscoduct lor a knowing violation of 13 47-5-19, inclusive, or for any transaction &om whit banefir.

TEae u:opporate life of the consolidated of &tse 4\e.~les of Consolidation, wlzicheva f.h.lizcse .&&clles of Conrsolidation or ternhated

ant inconsistent with these Articles of Consolidation or the bylaws of the cooperative, as it n~ay d e ~ m dgis&ie for management, administration, and regulation of the business a d &&n of tlx eaopen1tive,

These Anicles of Consolidation may be amended in the manner provided by law at a $ $ i ~ h g of members provided that notice of such meeting shall contain&. a mpy of the p r o p ~ d alteration, amendment or repeal.

M WlTNlESS W m m O P , we have exe~uted in dup1iaf:e hese Uicies of Consolidation ctrr juir;", 24, 1999.

LZNCGLN-UNION ELECTRIC COMPANY

~ N E R - I - 4 1 J T C ~ S O N ELECTRIC I COQPEPATIVE, DIG. (f,30W30UTE SEm)

AFFIDAVIT OF COMPLLANCE

Lmwd Welter, being first ddy stwonk on his oath, states that Einccoh-Upion Electric C u m m y duly complied with tho provisions of SDCL Section 47-21-27 and SDCL Section 47-21- 35 b kt63pet of SUGJX M!cI~s of Ciin~oIidztion,

ESirte: 6124lFa9

qCORIrQK%'YE SEAL)

Y of 50aith Bdcota, 1 ) SS: P.CYdO WEIEJCPGb.+EMT

Cawxt~ of Iulimer. 1

IBrn jhyit~qes-fig Wereof, 1 have hereunto set my h d and affixed my official seal.

CS13hH, j

8Yy;ielt 1--2wfer, king firs1 duly sworn on oath, states that the provisions of SDCL Section €$?-21-27 barlit %Dl.?$.. Srscticnl 47-21-26 in respect of such Articles of Conscalidarticsn were duly &t%$~~p~t;aicd xr;Fflt by Tm~~f:r-Hrrtchinson. Electric Cooperative, Inc.

Date: 6i34:9rt;l

WIRNER-HQUTCrnSON ELECTRIC COOPERATIVE, Dl@.

jr"'UPJX3[MvET SE'41,)

,A tTE"'u"

"",* d . EL%^){

st&rf? (11 S O U L ~ f )&~ t% ) ) SS: ACKNQWEDGmNT

Z'?ottmty ~f Turner. )

On efris tl~e 2411 day of June, 1999, before me, the undersigned o%cer, personally ;tg+p'ar~tf l;.y~eld. I-fof'r md Don Heeren, who aclmowledged themselves to be the President md 3 : e r g t g ~ ~ ~ ~ ~ p e C " t i ~ e I y o f 'Ir~rner-H3[ut~b:hson E!ectric Csnoperative, Inc., and. ,@at &BY, as such t$!E~rtsAej~%g 1xut3:mrized SO ta do, mecuted foregoing instrument for the p w p ~ e s Glerehrl clx%n;iaed ~ L I kn the capacity therein indicated.

In Whaess Wlxer.eof> I have hereunto set my Hmd and ai'f~xed my o a c i d seal.

South Dakata PD;sebflie Utilities C~orn~wissisn WEEKLY FILINGS

Far Psriasd off November 4,4999 thusugh November <%O, 1999

'If you Baed a cornpieta copy of a tiling faxad, ovetrniyhk expressad, or mailed lo you, ptease csntast Deiaine Koiksa withirr five business days of this filing.

r3510ne: 605-773-3705 Fax: 805-773-3809

CONSUMER @$MPMlNTS

CT096a3 In the JZa6aaer of the Complaint djElsd by Storbt2ok Truckkg, Irtuc., Hursw, South DaksQ, against Sprint Cammunica'Eiohs Campany L.P. Regarding Unauthorizad Switching of Sewicsir;.

4"ha b",amnraist;lan received a forn~ai complaint from Daris Stor kc,, Wwron, S O B J ~ ~ Dakota, QIP November 5, 1999, alleging ihn distance sewrce was switched to Sprint witt~out awthorizatio i'aquaattng that the charges be removed and compensation swa~tted,

Stoe AnaLyst: Ceni Mealy SQwff Attorenay: Karen Crerner

Filsd: f̂ t /05/519 interiras~lion Deadiirie: NPa

CT%9n.654 In the Ma&$ of She Complaint filed by Tam and CQP~~SP VergeIBflt, Ab~tudeen, South Dakota, against MCi Wfo~lldGam Regardinerg 8witchiirmg Rates.

Qru Noveinbar 8, 1999, the Commission received Cwfiss Veigeidt, Aherdeen, South Dakota a terterrsarheler promised they would get a day of night, "6h@ Complainants claim t t r ~ rate, When they received the mat f S w ~ 1 l C ttsgjr rates \Itrere not as described rliumfssas gmvided several 'times to cnrt!"icat~d that they were not cersto frstl! bhIi%, The Complainants are seeking to have the darngge award and $20,000 fins.

r%%fT &?slyst: ieni Meafy @8ff &0$==76?y- I~~r f3 t - l creixer

Filed: $2 1f0',8!9!3 Ix'ttcv&f&rstiofi 1;2eadlins: NA

CV'99465 In the Ma&r QQ ttk8 C~mpIainP fiijled by B, 8 Cd Land M a $ s a ~ @ r n ~ ~ t , Huron, Soum Dako@, against Acc&B~~B G~mm~ni~atiogrrs~ BSOIS. Regawing Unauthorized Swihhing of SBWBCOS.

On I\lavember 9, 4 999, the Commission received a formal cornphini finm Ard~lla Fosheim on behalf of L 8 M Land Management. The Complainant alleges that Accuisf added charges to their teiecommulaica~ions billilrg without arsthorizatim. The Complainant seeks to have all charges associated with this activity removed end $I000 for inconvenience.

Staff Analyst: keni Heally Staff Attorney: Camran Hoseck Elate Fited: 4 1/09/99 Invention Date: NA

Ek99-617 in the MaWr af the Filing foe Approval of Cl~aeagsa to A%%ig"~ln@d Sswics Areaas of int@reounQ EEDecBsic Aasse~iaQioera, Pnc. and Bri-Couepv Electric Assasleiaa~on, Inc.

Tri-County El@ctrirc and Intercounty EIectric have requested that the C~rnmrssiair transffer the existing territorial Agreements of the two existing errtities to Cen'Zxai Ejc+f:kric; Cooperative, kc., effective Jarwary 1, 2000.

Staff Analyst: Mappin Betimann Siaff Attorney: Karen Grerner Dafe Filed: 9 Of1 44/99 Infewention Dc~?adiis),e: NA

the MaHer of the Filing for Approval of Changes ts Assigned entice Areas of hincslla-Union Electric Company and

VurneabHaatc61inson Ei~cBcri~ Cooperativ~, Bnc.

Lincu1~-tlnian Electric 2nd Ywrner-Hutchinson Electric have requested that the Comrnissian twertsfw the existing territorial Agreenaenls af' %b~e Wo existirjg ger"b9jtjec; $0 Srrutheastem Electri~ Cooperative, inc., effective Jslne~ary 1, 20QO.

%@ma8 In tlrc Wlattep of the Filing by MiliBmeri~an Energy Campzoy Psr Appmval of a Canhcl with B~via60ns with U~"liwemi& C$Bf SO& Daka&.

on Naw~mber 8.1999, MidAmerican Energy filed a proposed contract with deviagons to *m@tk&% Univer;%y of South Dakota at Vemillion pursuant to its Competlve Pridng Trirnsportatian Sewice currently tariffed fedwith the Commission. The contract is tixi heresult

off% taking places! aftsr the University notified MiddAlmri~an that it intend& $0 $&ziiId pfwkl~se Ifacifies to bypass WdAmerican.

Au%;mriQ to Pr~wide TelscorntwaunBcatjoas 81e

Gann~dU,D, Lnc. (Connect!) seek8 a Certificat aud Bdi free itsbabrld sewices throughout South sa&Fm% $0 business and residential customers.

84~ff Anedy~s;t: Moather Farney St@,@ A@aw;ul@y: Carnrsn Woseck Oat@ Fibd: 1 1/04/99 Ifrnt~~an3ion Date: 1 'I /26/99

You mey r@~eiv@ this Biseing auud other PUC publ' Vat$ may satibscrlbe or unsagbscdbs 50 the Ps,B

%AR1wl, SDU?Hf%XE)Th 57MI F4X (C45) %If

fk~-r:%kr 1 !@g WECBVED if,Glf ism Bullard, Executive Director fEiT: fi 6 @,"3 Soedb D,&u& Publie Utilities Conu~issictia @OUTH DAfCOA WBL~C

~TTL,IT!Es COM$&~~@S~OM

$ k a ~ Mr. BanHa$d:

Gt?u~lz#as?ern Electric will begin 0p9;pding on Jma~a-y 1,3000. A&hough the current facilikies nf k~fh Einf;loln-T_lx~m Electric md Tmer-Hutchinson Electric ~viil remain open, the at7'ice in Mi~rhnr, SD has h e n designated as the official hedqwters. Please me the address on &?is lcf;re&e& as the mailing address for Souhemtern Electric beginning Jara.aap5: 1,2000.

WC woudd appreciate your cosperation in midsing any necessary ci3mges to ycaiblr rtxards, Ail E ~ ~ ? ~ ~ z S C I E ~ C ~ shouPdj[ be addressed to our Manion oBce beginming nex; year, .Aisa, if anere as: aesy hwisgs~ mattem that need to be addressed as a result o f this colpsoilidatian. pIeasi: Ict us k4i~sw at yaw ewlimt convenience.

'!'t~ar as~sistrnce is greatly rtppreciated.

BEFORE THE PUBLIC UTlhlTlES COMMISSION OF THE STATE OF SQUTH Di4KOTA

fH THE MAnER QF THE FDLING FOR ) ORDER AFPWePViMG AFQRlQVd'PaL OF CHANGES TO ASSIGNED TEWWBTORfAL TMNSFER %ERY#GE AREAS QF klN68LN-ISNIION 1 ELEG~RIG GOMPANY R E - 1 EL89-0% 8 HUT C#.A,iI'lSON ELECTRIC COOPERAT lPY E, 1 !PAC, 1

6~ CMob~r 24, 1999, the South Dakota Publir: Utilities Commission (CommZssian) received a i~irit t ' b ? + ' l fn~m Lincoln-Union Electric C~rnpany (i.,ins;oln-Union) and Turner-Htrtcki~son Elsdric Cwpsrailve, Inc. (Turner-Hutchinson) for approvai of the cclnsolldetion of the hvo mopa~alives. Afardling p,rJ the request, on March 20, 1999; Linr:oin-Union rnerni;~eiskip vated to approve the 8:1i%saiiiiiid@trsri. On April 8, ?9=, Turner-Hutchinsan rrrernberskip vabck to approve the cunsoiidation at ti%% Wtvva atoperztives. The raew organization will be formed or1 Jar~ualy I , 2600, and f i l l be knc?m 8s %outkrsasltern Elsafic Cooperative, Inc. L.incotn-UnJon and T~rwr-tiutchinson are requesting 64;ppr~~aJ ta transfer 117e existing Bemitorial Agreements of the two existing entities to Sauthegster,g E~Bc~F~c: G~~peratke, Pnc., effective on January 1, 2009. A~ord in~g to the filing, ''[vfle befieye this F&qumst m&ts ail the requirernen?~ as outlined in SDCL 49-%A-55 periaining to the fallotving items:

alinination or avoidance of unnecessary duplication of fac;lCiiies; providing adequate electric service to ail areas and custornsrs affecfed and, the promotion of the lefifjcient and ecunomical use and devreloprnent of the el~dric system."

On November 15, 1999, at its regularly schedu!ed meeting, the Commission considered'ihie msltc;F. G0rnrnir;sion Staff recommended approval,

The Camrriissian finds that it has jurisdiction over this mi%t?er pursuant to SDCL 49-34A, spsdfically 49-3.48-82 and 49,-3419-55. Furireer, the Csmrnissibn iinlds that the proposed tenitrsrial IrarrsaEtruvill avoid the unnecessary duplication of facilities, provide adequate efectric service $0 -*RE tx~$tarner, and promote the efficient and economical use and developmen: of the efedric systems st[ Unwlfu-Union and Turner-Hutchinson. Finally the Commission finds that the approval sf Phe joint r~quost is in the public intwest and the request shall be granted. As the Comrn'tsaion's final deeision in this maltor, it is therefore

ORDERED, that the request for approval of the territorial transfer is hereby grar-nted,

Dated at Pierre. South Dakota, this fUnL day of December, 1999.

I Thc undenigntxf hereby certifies that this @mIun\ent bras k e n su?.rd& f&dy uFYjn all, parties of ree~?d in Ihls dockb, as listed an the docket senrice list, by i;rcsim~le or by first CI~SB mail, m proprly I

I (QFFICIC\L SEAL)

,*~-M,..-=:r;~7__---

BY ORDER OF THE COIIPIMISS66Pl: