BEFORE THE PUBLIC SERVICE COMMISSION OF WYOMING Minutes of Regular Open Meeting

Thursday, June 30, 2011 1:30 p.m.

Commissioners: Chairman Alan B. Minier, presiding Deputy Chairman Steve Oxley Commissioner Kathleen A. “Cindy” Lewis

Lawrence D. Covillo, Yampa Valley Electric Association, (by telephone) Walter Eggers, counsel for MGTC, Inc. Chris Kilpatrick, Cheyenne Light, Fuel and Power Company (by telephone) Bryan Lee, Frannie Deaver Utilities, Inc. (by telephone) Chris Odell, Anadarko Petroleum Co. (by telephone) O’Kelley Pearson, local counsel for Rocky Mountain Power (RMP) Richard L. (Dicky) Shanor, counsel for Cheyenne Light, Fuel and Power Company (CLFP)

Commission Advisory Staff (CAS): Blair Bales, Michelle Bohanan, Perry McCollom, Laura McKinley, Marci Norby, Laura Yetter

CONSENT AGENDA ITEMS

1. Docket No. 10016-53-CA-10 (Record No. 12695) Application of Wyrulec Company for approval to revise its operating policies, rules and regulations to implement its service interruption reporting plan. Commission to consider and act on the Application.

2. Docket No. 30003-52-GR-11 (Record No. 12840) Amended Application of MGTC, Inc., for a general rate increase in the amount of $486,936 per year and for approval of tariff revisions. Commission to consider and act on the following:

A. Petition of SourceGas Distribution LLC, for Leave to Intervene; B. Motion for Admission Pro Hac Vice of Michelle Brandt King; and C. Motion for Admission Pro Hac Vice of Thorvald A. Nelson.

3. Undocketed. Open meeting minutes for review by the Commission for the regular open meetings of January 4, 6 and 11, 2011. Prepared by Deborah McFerrin.

Deputy Chairman Oxley introduced the consent agenda items. There were no comments, questions or requests to remove an item for further consideration. Vicky Hansen, Commission Counsel, recommended approval of Item 1 by Letter Order, effective immediately and signed by Commission counsel; and, approval of Items 2A, B, and C, by

Open Meeting Minutes for Thursday, June 30, 2011 Page 1 Order, effective immediately and signed by Commission counsel. Deputy Chairman Oxley moved to act as recommended, Commissioner Lewis seconded the motion, and Chairman Minier concurred. Deputy Chairman Oxley then moved to accept the minutes in Item 3 as submitted. Commissioner Lewis seconded the motion, and Chairman Minier concurred.

REGULAR AGENDA ITEMS

1. Docket No. 10001-11-CT-10 (Record No. 12714) Application of Yampa Valley Electric Association for authority to file its rules and regulations and to implement its Service Interruption Reporting Plan (SIRP). Commission to consider and act on application. Don Biedermann, CAS, provided a technical memo dated June 24, 2011. Lawrence D. Covillo, President and General Manager, appeared via telephone and summarized the Company’s application, stating the filing was made to generally make revisions, renumber its Rules and Regulations and to include the SIRP. There were no further comments or questions. Don Biedermann recommended approval of the application, including the SIRP, by Notice and Order, effective immediately. Deputy Chairman Oxley moved to act as recommended, Commissioner Lewis seconded the motion, and Chairman Minier concurred. 2. Docket No. 10017-25-CS-11 (Record No. 12854) Application of Beartooth Electric Cooperative, Inc., for approval of load ratio share (20.7%) guaranty of a $5,000,000 line and letter of credit facility from the National Rural Utilities Cooperatives Finance Corporation (CFC). Commission to consider and act on application or issue an order continuing consideration of the filing beyond the 30 days provided for under W.S. § 37-6-104. Laura Yetter, CAS, provided a technical memo dated June 10, 2011. There were no representatives for Beartooth Electric Cooperative, Inc., present in person or by telephone. Victoria Hansen, Commission Counsel, explained to the Commission that Ron Roodell, General Manager and CEO, was out of the office and consequently unable to participate in the open meeting. Hansen stated Roodell had represented to her that he was unable to work on the application for at least a week. In addition, Roodell had not filed any additional documentation, as previously requested. There were no further comments or questions. Hansen recommended denying the application, without prejudice, by Order only effective immediately. Chairman Minier, moved to act as recommended, Deputy Chairman Oxley seconded the motion, and Commissioner Lewis concurred. 3. Docket No. 20000-396-EA-11 (Record No. 12862) Joint petition for arbitration of Rocky Mountain Power, Wasatch Wind Intermountain, LLC, and Northern Laramie Range Alliance, LLC, and Tom E. Swanson. Commission to consider and act on petition, including procedural matters and the scheduling of such further proceedings as the public interest may require. Christopher Petrie, Commission Secretary and Chief Counsel, recommended granting the joint petition for arbitration and stated he would have a procedural order issued immediately which would schedule the arbitration for July 7, 2011. Deputy Chairman Oxley moved to act as recommended, Commissioner Lewis seconded the motion, and Chairman Minier concurred.

Open Meeting Minutes for Thursday, June 30, 2011 Page 2 4. Docket No. 30003-53-GP-11 (Record No. 12853) Application of MGTC, Inc., for authority to pass on a net wholesale gas cost increase of $0.2701 per MMBtu for its residential/commercial and industrial customers and to begin billing the residential and commercial customers on an MMBtu basis rather than on an Mcf basis effective July 1, 2011. Commission to consider and act on application. Jess Bottom, CAS, provided a technical memo dated June 22, 2011. Walter Eggers, MGTC’s local counsel, appeared in person; and Chris Odell, Anadarko Petroleum Co., participated by telephone. Eggers stated the application was filed to increase rates to reflect a net gas cost increase and to revise its balancing account tariff to provide for the billing of all customer classes on an MMBtu basis. Odell stated the amended application also responded to concerns raised by Staff's identification of the Company’s use of an incorrect Btu conversion factor. She further stated the Company’s decision to convert the Residential and Commercial customers’ billings from an Mcf to an MMBtu basis was based on previous Staff recommendations. There were no further comments or questions. Jess Bottom recommended approval of the amended application by Notice and Order, effective for usage on and after July 1, 2011. Deputy Chairman Oxley moved to act as recommended, Commissioner Lewis seconded the motion, and Chairman Minier concurred.

5. Docket No. 30005-149-GP-11 (Record No. 12851) Application of Cheyenne Light, Fuel and Power Company for authority to pass on a wholesale gas cost increase of $1.0510 per Dth for firm and interruptible rate classes beginning July 1, 2011. Commission to consider and act on application and Petition for Confidential Treatment. Jess Bottom, CAS, provided a technical memo dated May 27, 2011. Chris Kilpatrick, Cheyenne Light’s Director of Rates, participated via telephone and stated this filing was the Company’s monthly application to adjust its gas cost. The requested increase was larger than the Company would have liked because the Company did not make a June 2011 pass-on adjustment as the balance did not warrant it at the time. He noted that the current July pass-on adjustment is really about two months worth of CBA increases. There were no further comments or questions. Steve Mink, Commission Counsel, recommended approval of the application, effective for service rendered on and after July 1, 2011, and granting the petition under Commission Rule Section 120. Deputy Chairman Oxley moved to act as recommended, Commissioner Lewis seconded the motion, and Chairman Minier concurred.

6. Docket No. 30007-99-GP-11 (Record No. 12858) Application of Frannie Deaver Utilities, Inc., for authority to pass on a commodity balancing account increase of $0.0046 per Mcf. Commission to consider and act on application and petition for rates to become effective on less than 30 days notice. Jess Bottom, CAS, provided a technical memo dated June 27, 2011. Bryan Lee, President, participated by telephone and stated that the net increase is due to an increase in projected purchased gas costs and a decrease in the CBA surcharge. Bottom explained that the next CBA surcharge true-up in the September 2011 pass-on application will use data from new meters and expected the data would not show line gain. There were no further comments or questions. Bottom recommended approval of the application and the petition by Notice and Order,

Open Meeting Minutes for Thursday, June 30, 2011 Page 3 effective immediately. Chairman Oxley moved to act as recommended, Commissioner Lewis seconded the motion, and Chairman Minier concurred.

Next Regular Open Meeting: Tuesday, July 5, 2011, at 1:30 p.m.

Prepared by: Angie Elliott

ACCEPTED and APPROVED by the Commission on October 27, 2011.

______Alan B. Minier, Chairman

Open Meeting Minutes for Thursday, June 30, 2011 Page 4