4/29/10 • GARKANE ENERGY ANNOUNCES ANNUAL MEETING ELECTION RESULTS

Results of Garkane Energy’s Director elections were announced during each of the Cooperative’s Annual Meeting Sessions held in Colorado City, Arizona, April 27, 2010, Escalante, Utah, April 28, 2010, and Koosharem, Utah, April 29, 2010.

As mentioned in the Spring Issue of HIGHLIGHTS and in accordance with the Cooperative’s bylaws, “if only one Nomination is made in a particular district, and such candidate satisfies the Director Qualifications, such candidate shall automatically be appointed as a Director, without the need to hold a Director election in accordance with this Bylaw Section (Section 4.05, Paragraph 2). Incumbent Directors LaDon Torgersen - Koosharem (District 1), Reed Munson - Escalante (District 4), and Boudicca Joseph - Big Water (District 9), were the only candidates to file a Nomination Petition in their respective Districts. Therefore, they each were re-appointed as a Director of their respective District.

In Garkane’s newly formed District 11, Tyler Barlow - Hildale (District 11) ran unopposed and was announced as the winner of the District 11 election.

Featured speakers at the Meeting Sessions included Deseret Power’s CEO - Kimball Rasmussen and youth speakers from last summer’s Utah Rural Electric Association (UREA) Youth Leadership Conference. Mr. Rasmussen spoke at each of the business sessions held in Colorado City, Arizona, Escalante, Utah, and Koosharem, Utah. UREA Youth Representative, Vallerie Hammon - Colorado City Academy, spoke at the Colorado City business session, UREA Representative, Kelsey Torgersen - Escalante High School, spoke at the Escalante business session, and UREA Youth Representative, Olyvia Lindgren - Piute High School, spoke at the Koosharem business session. Garkane’s CEO, Carl Albrecht, also reported at each meeting.

In accordance with the Cooperative’s Bylaws, Directors Torgersen, Munson, Joseph, and Barlow will all serve three-year terms. Garkane Board Members also elected Board Officers and representatives to Deseret Power (Garkane’s wholesale power supplier) and the Utah Rural Electric Association (statewide organization) at the May Board Meeting.

Carl Boyd, Jr. was re-elected Board President of Garkane Energy Cooperative, Utah. Other Board Officers include Rod Ence – Duck Creek as Vice President, and Terry Griffiths – Orderville as Secretary/Treasurer.

The Board also selected trustees to two statewide organizations in which Garkane participates. Randy Brown – Kanab and Boudicca Joseph – Big Water will represent Garkane’s interests on the Board of Deseret Generation and Transmission Cooperative. Michael Blackburn – Bicknell will serve on the Utah Rural Electric Association Board of Directors.

Garkane Propane’s Board of Directors also met on Monday, May 17, 2010, and selected Officers for the Company for the coming year. Wayne Robinson – Kanab, was elected as President of the Board of Directors. Joining President Robinson as Officers are Trent Hunt – Loa as Vice President, and Boudicca Joseph – Big Water, as Secretary/Treasurer.

3/9/10 • PROTECTIVE RELAY NEAR GLEN CANYON DAM SUBSTATION CAUSES GARKANE POWER OUTAGE

Garkane Energy Customers in Kane County, all of Garfield County (except Antimony and Panguitch), and portions of Mojave and Coconino Counties in Arizona, experienced a minor power outage the morning of March 9, 2010.

Power was off for approximately 15 minutes to a half-hour for the bulk of customers. No problems were found on Garkane’s facilities by Garkane crews. A protective relay from the Glen Canyon Substation, operated by Western Area Power Administration (WAPA), was the cause of the outage.

Garkane reminds its customers to plan ahead for inevitable power outages. Choose an easily accessible closet or cupboard for an emergency supply of flashlights, batteries, candles, blankets, and other needed items.

1/27/10 • Notice of Public Meeting

Tropic to Hatch 138kV Transmission Line Project and Draft Environmental Impact Statement (EIS)

(See Attached PDF Announcement below for further details)

The Forest Service is seeking public comments on a proposed 138 kilovolt (kV) electric transmission line from Tropic to Hatch in Garfield County, Utah. Two open houses to provide information, answer questions, and receive comments will be held at the following times and locations:

January 27, 2010 – 5:00 PM to 7:00 PM

Cannonville Visitor Center, 10 Center Street, Cannonville, Utah

January 28, 2010 – 5:00 PM to 7:00 PM

Panguitch Library, 25 South 200 East, Panguitch

1/26/10 • WINTER STORM CAUSE OUTAGES TO GARKANE’S SYSTEM

WINTER STORM CAUSE OUTAGES TO GARKANE’S SYSTEM

Garkane Energy Customers in the Kane, Wayne, and Garfield County areas experienced power outages during the past week due to heavy wet snow and ice, which blanketed the area.

Outages were caused from snow and ice on the power lines. As snow and ice builds up and sheds from power lines, phases sometimes come in contact with each other, which in turn causes a power outage.

“We received some much needed moisture from the storm, which we are very thankful for. However, anytime we receive a warmer southern storm, snow and ice tends to build-up on our lines and conductors, resulting in power outages,” stated Marcus Lewis, Garkane’s Staff Assistant.

Battling miserable conditions at times, Garkane’s crews worked throughout the nights to locate and fix the various problems. “We commend our crews for enduring difficult conditions in order to restore power to our customers”, stated Lewis. “We appreciate their efforts, and we’re sorry for the inconvenience power outages cause.”

Power has been restored to all areas each day. We did weather the storms better than most utilities in California, Nevada, and Arizona.

“It is Garkane’s goal to provide reliable power to all our customers. We are in the business of providing low cost, reliable power. We take this responsibility very seriously. Unfortunately, unforeseen circumstances, such as the extreme weather conditions witnessed this week, make it difficult to guarantee uninterrupted power. We are subject to Mother Nature’s forces. This is one factor we simply cannot control. We appreciate your patience and support and we will do everything we can to keep power flowing.”

With the winter season heavily upon us, Garkane reminds its customers to plan ahead for weather-related power outages. Choose an easily accessible closet or cupboard for an emergency supply of flashlights, batteries, blankets, and other needed items.

1/7/10 • January & February Calendar Items

January 2010

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25th Board Strategic Planning Meeting

26th Board Meeting

February 2010

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15th President’s Day - Offices Closed

22nd Deadline for Board of Director

Nominations

22nd Board Meeting

12/8/09 • MAJOR WINTER STORM CAUSES OUTAGES TO SOUTHERN SYSTEM

Garkane Energy Customers in Northern Arizona, and in Kane and Garfield Counties experienced power outages Monday night and early Tuesday morning, December 7 and 8, 2009 due to heavy wet snow in the south, which blanketed the area.

Power was off from Buckskin to Paria, included everything East of Paria (Big Water and Church Wells) during parts of the night. The Buckskin area received almost 20 inches of snow. Power was also off multiple times during the night from Henrieville to Escalante due to snow load on the lines.

Other areas in Kane county experienced outages during the night due to a pole fire in Kanab and a toppled tree in Orderville.

The snow also created problems with the communication systems and therefore made it difficult for us to communicate with substations.

“We received some much needed moisture from a very strong, wet storm, which we are very thankful for. However, anytime we receive a southern storm, snow tends to build-up on our lines and conductors, resulting in power outages,” stated Carl Albrecht, Garkane’s General Manager.

There are small isolated outages this morning, but crews are working on them currently and expect to have them back on soon. As mentioned above, heavy wet snows in the Kane County area affected our transmission system out of Glen Canyon Dam and into Garfield County, up to Cottonwood Wash and from Henrieville to Escalante. These outages were compounded by communications problems as well.

Battling miserable conditions at times, Garkane’s crews worked throughout the night and into the morning to locate and fix the various problems. “We commend our crews for enduring difficult conditions in order to restore power to our customers”, stated Albrecht. “We appreciate their efforts, and we’re sorry for the inconvenience power outages cause.”

“It is Garkane’s goal to provide reliable power to all our customers. We are in the business of providing low cost, reliable power. We take this responsibility very seriously. Unfortunately, unforeseen circumstances, such as the extreme weather conditions witnessed last night and this morning, make it difficult to guarantee uninterrupted power. We are subject to Mother Nature’s forces. This is one factor we simply cannot control. We appreciate your patience and support and we will do everything we can to keep power flowing.”

With the winter season heavily upon us and more snow in the forecast, Garkane reminds its customers to plan ahead for weather-related power outages. Choose an easily accessible closet or cupboard for an emergency supply of flashlights, batteries, blankets, and other needed items.

10/14/09 • Line Item Explanations For Twin Cities Power Bill

Please click on the following link for Line Item Explanations

7/1/09 • TWIN CITIES POWER TO JOIN GARKANE ENERGY COOPERATIVE

Loa, Utah - The residents of Twin Cities (Colorado City, AZ and Hildale, UT) recently became the newest member/owners of Garkane Energy Cooperative. The purchase of the Twin- Cities Power System was completed June 30, 2009.

"Garkane Energy already serves the area adjacent to Twin Cities (Centennial Park, AZ and Canebeds, AZ)," said Carl Albrecht, Garkane General Manager. "Weve also entered into a partnership with South Central Communications to share a small Business Office in Hildale, UT.

Garkane has, on average, about 4.5 customers per mile of power line. Adding the concentrated customer base of Twin-Cities will provide for greater economies of scale. The acquisition will bring approximately 1,100 new accounts. Albrecht also explained that Garkane crews are already familiar with the system, having served it previously in the early 90s.

Twin-Cities Power customers will become member/owners of Garkane Energy cooperative with all the benefits of co-op membership. Consumers will see rate decreases from present rates.

Transfer of ownership took place July 1, 2009.

***

Twin Cities (Colorado City, AZ, and Hildale, UT) are located southwest of Kanab near the center of Utah's scenic southwest and is located on the north portion of the Arizona border, approximately, 35 miles east of St. George, Utah.

This acquisition is the second municipal power system purchased by Garkane. Kanab Citys power system was acquired in 2004.

Garkane Energy will now serve more than 12,600 consumer/members in a wide service area that covers five national parks, several state parks, two national monuments, and several national forests.

6/29/09 • GARKANE ENERGY RECEIVES SAFETY AWARD

Workers Compensation Fund (WCF) recently recognized 13 Utah companies for their outstanding safety practices during a Safety Traditions luncheon Thursday, June 4, at the Grand America Hotel in Salt Lake City, UT. ((Each year, WCF recognizes those companies who have made a significant commitment to making workplace safety a priority.

Garkane Energy received the Charles A. Cain Workplace Safety Award. The award was named after WCFs first manager who worked for WCFs predecessor, the State Insurance Fund.

With more than 23,000 workplace injuries reported in 2008 (by Utah Companies), workplace safety must become a primary goal for every company, said Ray Pickup, CEO and President of WCF. Todays award-winners are leading the way in investing the time, resources and energy necessary to protect workers. We applaud their efforts and urge other Utah companies to similarly focus on workplace safety.

Salt Lake City-based Workers Compensation Fund is Utah's premier workers compensation insurance provider, promoting workplace safety to more than 24,000 Utah companies. Established in 1917, WCF is owned by its policyholders and governed by a board of directors. WCF offers its customers a variety of services including safety and loss control, claims administration, medical case management, vocational rehabilitation, and fraud investigations. WCF is rated A (Excellent) by the A.M. Best Company.

6/8/09 • Notice of Public Rate Hearing

Monday, June 22, 2009 - In The Hatch Business Office At 1:00 p.m.

As mentioned in the 2009 Spring issue of HIGHLIGHTS, notice of a Public Rate Hearing is scheduled for Monday, June 22, 2009, in Garkanes Hatch Business Office at 1:00 p.m. Reminder notices have also been posted on Garkanes website and on member-owners bills.

As we closed the books for 2008, Garkane was fortunate to break-even financially. This is why there was not a capital credit refund in December. This is the result of investment in new facilities, which required new borrowing from our banker and increased our interest costs substantially.

Garkane has a very difficult and complex system to operate and maintain. With all elements of the industry, generation, transmission, and distribution, we are unlike most rural electric cooperatives. Most electric cooperatives are distribution only, without any generation or transmission facilities. We serve about 12,000 consumer-members, over 2,130 miles of line. So there is only a small customer base over which to spread costs. Garkanes power-lines traverse many public lands (ie. Parks, Monuments, National Forests, BLM lands, etc.). Rights-of-Way are very difficult and extremely costly to obtain. Many environmental studies have to be completed and maintenance work in these pristine areas is often completed by helicopter rather than by normal access and procedures.

The board increased rates modestly in 2008, including minimum billings. Garkane continues to send out many zero usage billings. The infrastructure costs to serve these low-usage accounts are the same for an account using normal usage (approximately 750 KWH).

As the board looked towards 2009, and our budget projections, we cut expenses in many areas. As we all experience the effects of this economic downturn, the loss of jobs, and tighter credit for economic expansion, we are all affected. As a result, for 2009 we have cut our Member Appreciation Barbecues, our 70th Anniversary Celebration activities, as well as many other costs, and will combine other meetings throughout the year. We plan to do all of the upcoming construction of new facilities with existing personnel rather than hire outside contractors.

Even by eliminating all of these activities, Garkane will still have to increase rates this year to cover new borrowing and increased costs for new infrastructure, as well as other cost increases in our business.

The amount of electricity Garkane members are using has grown tremendously. New homes have central air-conditioning, electric furnaces, multiple T.V.s, computers, and other electrical products. Coupled with unprecedented growth in recent years in new members, our demand for electricity has increased dramatically and Garkane must invest millions in new facilities to ensure sufficient electricity to satisfy this growth.

While the price will increase this year, we are still committed to deliver this electricity as efficiently and safely as possible. Our rates will still be very competitive when compared to other electric utilities and other energy sources. In fact, the price you are paying now, is less than in the early 1990s.

We believe that reliable electric service at a reasonable price is something that our member-owners can count on and that we have delivered on a daily basis.

To accomplish this goal, we must also protect the financial stability of our organization by asking our member-owners to share in these costs.

Garkane strives to give member-owners as much notice as possible through a variety of methods.

Maintaining dependable service at an affordable price remains the cornerstone of the cooperatives business.

Garkane is committed to delivering power at the lowest possible cost.

Garkane works hard to minimize the impact of necessary price increases.

Garkane is accountable to our member-owners, not outside investors.

Garkane is a not-for-profit business and our member-owners have a voice in decision making.

The purpose of the public hearing, scheduled for June 22, 2009, in the Garkane Hatch Office at 1;00 p.m (Located at 468 North Highway 89, Hatch Utah), is to receive comments and to review with the membership, Garkane Energy Cooperatives proposed general rate increase to all Utah member-owners.

The proposed increase will raise Garkanes Utah Residential kWh rate to $0.070 for the first 1,000 kWh used and $0.055 for any kWh used after 1,000 kWh, which will increase the typical residential bill (using 750 kwh) by approximately, $4.00 per month.

Written comments can be directed to Garkane Energy, Attention: Marcus Lewis, at P.O. Box 465, Loa, UT 84747.

Questions and comments can also be made on the Cooperatives website at:

http://www.GarkaneEnergy.com/contact.cfm. Select the option, Rate Hearing Comments. All written and e-mailed comments and questions submitted prior to June 18, 2009 will be distributed to the Board of Directors for review.

5/29/09 • PLANE CRASH CAUSES POWER OUTAGE IN ESCALANTE AND BOULDER TOWN

Garkane Energy members in Escalante and Boulder experienced a power outage Friday morning, May 29, 2009, due to an airplane crash, near the Calf Creek Recreation Area between the Boulder and Escalante townships.

Power was off in the Escalante area for approximately one hour. The Boulder area was off for much longer as crews repaired lines and worked to isolate and black-start the hydro plant near Boulder to carry Boulder Town and are still working on this at the time of this release at 2:30 p.m. Power to Escalante was restored at approximately 10:00 a.m. from Glen Canyon.

The outage occurred when a small plane crashed in the area at approximately, 8:45 a.m. We appreciate our crews efforts to restore power and our thoughts and prayers are with the family involved. Stated Carl Albrecht, Garkanes General Manager.

Garkane reminds its member/consumers in an event such as this to be very careful around downed power lines. Garkane further suggests for members to be prepared for power outages by choosing an easily accessible closet or cupboard for an emergency supply of flashlights, batteries, and other needed items.

5/18/09 • PLANNED POWER OUTAGE On Cedar Mountain Line

Garkane Energy customers on Cedar Mountain will be without electricity the morning of May 28, 2009. The pre-arranged outage is necessary to perform line re-routing for the New Transmission Line. Unfortunately, this work can only be performed while the power is off.

The scheduled power outage on May 28, 2009 will begin at approximately 8:00 a.m. until approximately 12:00 pm.

Please make any personal arrangements necessary in preparation for this outage.

The Sheriff Departments and hospitals should be especially aware. Garkane expresses its apologies for the outage, but it is necessary to upgrade this line to allow more capacity in the area which will also prevent unscheduled interruptions in the future.

Thank you for your understanding and patience.