Penoyer Valley Electric Cooperative

The Penoyer Valley Electric Cooperative purchases and re-distributes
electric power to a small and isolated rural community -- in and
around Rachel, Nevada -- that would not otherwise have power.  100% of
the cooperative's past, present and future resources is directed
toward this purpose.  Activities include the maintenance of power
lines and transformers, the reading of meters and the billing of
members for power used.  All service is provided within the confines
of the Penoyer Valley (otherwise known as the Sand Spring Valley),
approximately 110 air miles north of Las Vegas.  All activities of the
cooperative are directed toward the purpose of providing reliable
electric power to members at the lowest possible cost, and non-profit
status is the best way to support this goal.

The cooperative serves approximately 50 customers, each of whom is a
cooperative member with one vote in the election of Directors.  The
Board of Directors consists of 4 Directors and a Chairman, each of
whom is elected for __ year terms.  Directors meet once a month at a
scheduled open meeting, and directors are not paid. The cooperative
employs 3-4 people in clerical positions at standard local wages,
including a Treasurer, a Secretary and meter readers.  These employees
are hired at the discretion of the Board of Directors.  The
cooperative hires outside contractors to maintain power lines and
perform accounting services.  The cooperative owns and maintains a
power distribution system within its service area, including power
lines, power poles, transformers, power meters and the rights of way
over which they run.  Bulk power is purchased from a larger power
company in an adjoining area and resold to individual members at a
markup sufficient to cover costs.

The Cooperative was formed in 19__ to serve the needs of farmers in
the area.  Its customers are now primarily residential.

No change is foreseen in the purpose or activities of the cooperative.