CENTRALELECTRIC COOPERATIVE)A Touchstone Energy® Cooperative 4"~

Patricia Van Gerpen, Executive DirectorSouth Dakota Public Utilities CommissionState Capitol Building500 East Capitol AvenuePierre, SO 57501-5070

September 3, 2008

RECEIVEDSEP 052008

SOUTH DAKOTA PUBLICUTILITIES COMMISS10il ,

Dear Ms. Van Gerpen:

Recently Sioux Valley Southwester Electric Cooperative (SVE) received a request for ruralelectric service from Roland Palmquist. This is in SVE's service territory as established bythe South Dakota Public Utilities Commission.

SVE's nearest power supply is 1.2 miles away from the area describe in Exhibit A. CentralElectric Cooperative's (CEC) nearest power supply is 1,200 feet. As a result, SVEcontacted CEC regarding providing electric service to the site and CEC is agreeable toproviding the electric service.

We have enclosed a copy of the "Exception to Service on Assigned Areas" signed by CEC,SVE and Roland Palmquist and would like to request formal approval by the South DakotaPublic Utilities Commission on this matter.

If you have any questions about this exception or the materials provided with this letter,please feel free to give me a call.

Sincerely,-----~

Scott KrogerAssistant General Manager

Enclosures

PO Box 850, 1420 North Main Street, Mitchell, South Dakota 57301605-996-7516 • 1-800-477-2892 • Fax: 605-996-0869

www.centra1ec.com·cec@centralec.com

AGREEMENT FOR ELECTRIC SERVICE TERRITORY EXCEPTION

Sioux Valley Southwestern Electric Cooperative, Inc., doing business as Sioux ValleyEnergy (SVE) and Central Electric Cooperative, Inc. agree to an exception to the SVEelectric service territory permitting to provide electric service to a new rural service inthe Northwest quarter of Section 7, Township 105 North, Range 54 West, in LakeCounty, South Dakota. A drawing of the service site, Exhibit A, is attached.

The Parties have concluded that, in this instance, the customer's interest will be bestserved by receiving service from Central Electric Cooperative. The Parties also agreethat future instances where territory boundaries become a factor should be dealt with onan individual basis.

This consent on the part of SVE is limited to the said service for Mr. Roland Palmquistand will automatically terminate upon removal or abandonment of such service.

This exception is not to be construed as having any impact upon or indicating a desireto change the service area assigned to SVE by the South Dakota Public UtilitiesCommission.

SIOUX VALLEY-SOUTHWESTERNELECTRIC COOPERATIVE, INC.

ByD~

CONSENT:

I concur with the provisions described above.

DATE 3cJ.J-03

CENTRAL ELECTRICCOOPERATIVE, INC.

By~a~eneral Mana

DATE J?- c:2'7--(} r