2007 SALES RESULTS

Energy sales for 2007 totaled almost 6.8 million megawatt-hours, an increase of 4.7 percent over the 2006 sales which were nearly 6.5 million megawatt-hours. This increase resulted from greater sales to nonmembers which reached 2.3 million megawatt-hours in 2007 compared to 1.6 million megawatt-hours in 2006. Energy sales to members totaled 4.5 million megawatt-hours, a decrease of almost 8 percent compared to sales to members in 2006, which totaled 4.9 million mega - watt-hours.

Member peak demand (coincident) in 2007 was 1,182 megawatts, a decline of 40 megawatts from the 2006 peak and largely attributable to cooler summer temperatures and above average precipitation.

The average cost to members of power purchased from Golden Spread in 2007 was $72.00 per megawatt-hour, up from $69.44 per megawatt-hour in 2006. The increase was due to increases in base power costs of purchases from Golden Spread's wholesale power suppliers, Southwestern Public Service Company (SPS), Denver City Energy Associates, L.P. (DCEA), and from its wholly-owned affiliates GS Electric Generating Cooperative, Inc. (GSEGC) and Yoakum Electric Generating Cooperative, Inc. (YEGC) and from slightly higher fuel costs.

Monthly average prices for natural gas fuel consumed at Mustang Station ranged from $5.55/ MMBtu in September to $7.26/MMBtu in February. Mustang Station is a fuel-efficient combined cycle generating plant and these gas prices resulted in fuel costs ranging from approximately $42.87 to $56.07 per megawatt-hour. The cost of peaking energy purchased from YEGC, which operates two less efficient simple cycle generating units at Mustang Station, was approximately 40 percent more expensive. Energy generated at Mustang Station is used to serve Golden Spread's Southwest Power Pool (SPP) loads during high member load periods. At other times during 2007 Golden Spread supplied its SPP load entirely with energy purchased under a Power Sales Agreement (PSA) with SPS, which typically has lower overall fuel costs due to a large amount of low cost coal-generated electricity. During low member load periods, Golden Spread sells most of the energy generated at Mustang Station to SPS on a contract basis, with the remainder dispatched into the SPP Energy Imbalance Services Market (EIS Market).

FINANCIAL PERFORMANCE

Revenues in 2007 hit a record high of more than $483 million, an increase of $47.3 million, or 10.9 percent, as compared to 2006 sales of $436 million, and $2 million greater than the previous record of $481 million set in 2005. The 2007 increase was due to a 45 percent increase in nonmember sales and an increase in natural gas prices. Net margins in 2007 were $48.9 million, almost doubling 2006 net margins of $25.2 million. The increase in nonmember sales also greatly contributed to the increase in net margins for 2007 as compared to 2006.

PATRONAGE AND CONTRIBUTED CAPITAL RETIREMENT

Since 2000 Golden Spread has retired patronage and contributed capital on a 12-year rotation (i.e., in 2007, net margins from 1995 were retired through cash payments to members). In February 2008, Golden Spread modified its patronage and contributed capital retirements to return 8.5 percent of the prior year-end equity balance and paid to member systems $15 million, or $3.31 per megawatt-hour of member energy purchases during 2007. Golden Spread expects to continue to make annual retirements of patronage and contributed capital on the basis of approximately 8.5 percent of its prior year-end equity balance.

CREDIT RATINGS

FitchRatings (Fitch) assigned an "A–" senior secured rating in connection with Golden Spread's first private placement financing – a $55 million debt issuance completed in 2005 for Mustang Station Unit 4 and for general corporate purposes. Fitch reaffirmed the rating with a stable outlook in October 2006.

Golden Spread requested general corporate credit ratings from Moody's Investors Services and from Standard & Poor's in late 2007. Moody's and Standard & Poor's are expected to issue initial ratings in early 2008, and Fitch is expected to update the senior secured rating on Golden Spread's $55 million 2005 private placement notes.

2007 OPERATIONS

Golden Spread owns generating assets within the SPS control area of the SPP. GSEGC is a wholly-owned subsidiary of Golden Spread and owns 50 percent of the Mustang Station generating facility located near Denver City, Texas. DCEA owns the remaining 50 percent of the facility. The facility is composed of two (2) General Electric (GE) gas-fired 7FA combustion turbine-generators that operate in combined cycle mode using Applied Thermal Systems, Inc. heat recovery boilers and an Alstom steam turbine-generator.

YEGC, another wholly-owned subsidiary of Golden Spread, owns two (2) gas-fired GE 7FA combustion turbine-generators that operate in simple cycle. The YEGC units are located adjacent to the Mustang facility. These units were placed into service in 2006 and 2007, respectively.

Golden Spread purchases 100 percent of the power produced by DCEA, GSEGC and YEGC at Mustang Station under long term purchase power agreements. North American Energy Services (NAES) is the operator for all of the generating units at the Mustang Station facility.

Golden Spread owns four (4) Duetz Diesel 1,500 kW containerized power modules which are located south of Allison, Texas, and one (1) Detroit Diesel 1,600 kW containerized power module located near Lubbock, Texas. All five units are used for voltage support and can be relocated individually as needed.

In addition to purchases from these power generating facilities, Golden Spread also buys 430 MW of capacity and energy from SPS under the PSA contract which terminates in April 2012. The PSA contract amount will increase to 480 MW in June 2008, 505 MW in June 2009, and 525 MW in June 2010. A new Replacement Power Service Agreement (RPSA), to become effective upon termination of the PSA, has been negotiated with SPS and has been approved by the Federal Energy Regulatory Commission (FERC).

Golden Spread served its Electric Reliability Council of Texas (ERCOT) members' loads in 2007 with power purchased pursuant to wholesale power agreements with AEP Energy Partners, Inc. (AEP) and Luminant Energy Company LLC (formerly known as TXU Portfolio Management Company LP) ( Luminant). The AEP agreement and, with a few exceptions, the Luminant agreements, were scheduled to expire at the end of 2007. In the fall of 2007, Golden Spread worked with ACES Power Marketing (APM) to develop a series of power supply alternatives for serving these ERCOT loads following expiration of the AEP and Luminant contracts. The identified supply alternatives included full requirements load-following service, block energy purchases with load-following managed through spot market purchases and sales, and a shaped energy product, with limited exposure to spot market pricing. APM conducted a bidding process in which it sought indicative pricing for the various supply alternatives from a number of ERCOT wholesale power suppliers. After extensive review and analysis of the responses by the bidders, Golden Spread narrowed the desired product to full requirements, load-following power supply with no exposure to spot market pricing. AEP Energy Partners, Inc. offered the most favorable bid, and in December 2007 Golden Spread entered into a two year full requirements agreement with service commencing January 1, 2008.

With limited exceptions, Golden Spread supplies its ERCOT members through its System Service Rate Schedule (SSR), under which power supply costs in both the SPP and ERCOT are blended to develop a common rate applicable to all members. The cost of purchases under the new AEP contract are blended with Golden Spread's other power costs through the SSR rate applicable for 2008.

Several of Golden Spread's ERCOT members provide station service power to large wind generating facilities. The primary station service power requirement for these wind farms occurs when they are not generating any electricity and must rely entirely on retail purchases of electricity for generator control needs and for other operations. This type of retail service has an extremely low load factor, and the demand for energy occurs when market prices are high due to reductions in wind generation. Due to the unusual nature of these retail loads, Golden Spread typically arranges wholesale power supplied through its Dedicated Service Rate Schedule (DSR). Under the DSR, the costs of wholesale power purchases are not blended with other power supplies, but are passed on directly to the member. The DSR arrangements for service to the wind farms are tied to ERCOT spot market clearing prices. This assures that the wind farms pay the actual cost of procuring energy to supply station service power.

MUSTANG STATION UNIT 5 COMPLETED

On June 1, 2007, Mustang Station Unit 5, a 152 MW (summer rating) gas-fired GE 7FA combustion turbine-generating unit, achieved commercial operation. This new peaking unit is located adjacent to its twin, Mustang Station Unit 4, which began commercial operation in 2006. The construction of Mustang Station Unit 5 included a new fuel gas header that can serve both Mustang Station Unit 4 and Mustang Station Unit 5 with gas from the Northern Natural Gas pipeline system. Both units also can obtain gas deliveries through the Mustang Station gas header, which is connected to three separate pipelines, including the Northern Natural Gas line. Mustang Station Unit 4 and Unit 5 also share other facilities and services with Mustang Station pursuant to agreements with DCEA and GSEGC, the co-owners of that facility.

MUSTANG STATION UNITS 4 & 5 MOVED TO YEGC

Mustang Station Unit 4 and Mustang Station Unit 5 were transferred to YEGC by Golden Spread on June 29, 2007. YEGC is a nonprofit Texas electric cooperative wholly-owned by Golden Spread. Golden Spread purchases the full output of the Mustang Station Unit 4 and Unit 5 from YEGC pursuant to a long term, cost based, purchase power agreement. NAES provides operating and maintenance services for Mustang Station Unit 4 and Unit 5. DCEA, the Operating Agent for Mustang Station, also serves as Operating Agent for Mustang Station Unit 4 and Unit 5. APM, which is owned by Golden Spread and fifteen other electric cooperatives, provides fuel procurement and management services.

RANGER UNITS

During 2007 Golden Spread also added four 1,500 kW diesel fueled generating units to its resource pool. These units, named Ranger Units 1, 2, 3 and 4, are Duetz Diesel Power Modules and are installed approximately eight miles south of Allison, Texas, in the service area of Greenbelt Electric Cooperative. The primary reason for installing the Ranger Units was to provide voltage support pending the completion of necessary transmission upgrades. These units, which can be started and operated remotely, provide a portion of Golden Spread's SPP reserve margin and have proved valuable during times of capacity shortages in the SPS control area.

Due to their comparatively small size and trailer-mounted design, the Ranger Units can be re located as needed to support supply reliability when transmission facilities fail to keep pace with growing customer demands. Golden Spread named these small, mobile, problem solving generating units the "Ranger Units" in honor of the famed Texas Rangers, the oldest state law enforcement agency in North America.

REGIONAL POWER MARKETS

ERCOT

ERCOT Texas Regional Entity

The Energy Policy Act of 2005 added a new Section 215 to the Federal Power Act (FPA) which required the development of mandatory reliability standards to be applicable to users, owners and operators of the bulk power grid. FPA Section 215 required the FERC to designate an Electric Reliability Organization (ERO) to propose federal Reliability Standards to be approved by FERC and to enforce the approved standards. FERC designated the North American Electric Reliability Corporation (NERC) as the ERO. NERC, subject to FERC approval, was empowered to delegate certain responsibilities to Regional Entities. In 2006 ERCOT applied to have a functionally separate division, the Texas Regional Entity (Texas RE), designated as the Regional Entity for the ERCOT region. On April 19, 2007, FERC approved the NERC-Texas RE Delegation Agreement and on June 18, 2007, the Texas RE promulgated its first mandatory Reliability Standards. Those standards are now pending approval by the FERC.

The Texas RE is independent of all users, owners and operators of the bulk power system. It will monitor compliance with the Reliability Standards and is authorized to impose penalties for violations of those standards. For serious violations fines can be set as high as $1,000,000 per day per violation.

Golden Spread dedicated significant effort during 2007 to develop policies and procedures that would assure that it maintains strict and complete adherence to all applicable Texas RE Reliability Standards.

ERCOT Regional Transmission Organization

Renewable Portfolio Standards and CREZs

Unlike the SPP, where wholesale power transactions are subject to the jurisdiction of the Federal Energy Regulatory Commission, the generation and sale of power in ERCOT remains largely exempt from Federal regulation and subject to the laws promulgated by the Texas legislature, as implemented by the Public Utility Commission of Texas (PUCT). During 2007 the PUCT took action to implement the Renewable Portfolio Standard (RPS) enacted by the Texas Legislature in 2005. Senate Bill 20 established a RPS goal of 5,880 MW by 2015, of which 500 MW is to come from non-wind resources, and a goal of 10,000 MW in renewable energy capacity by 2025. This past year, the PUCT formally designated several areas within the state as Competitive Renewable Energy Zones (CREZs). Many of these new CREZs are located within Golden Spread members' service territories, including areas that are located in the SPP. The purpose of designating CREZs is to identify geographic areas with sufficient renewable energy potential to justify construction of new transmission facilities to access the energy.

Golden Spread participated in the PUCT CREZ proceedings and offered testimony supporting a transmission expansion plan proposed by the SPP. The SPP plan called for the construction of new transmission facilities in the SPP that would transmit renewable energy from the Texas Panhandle to other areas in Texas, both within ERCOT and within the SPP. In addition to enabling the export of 1,500 MW of wind energy from the Panhandle to other market areas including the Dallas-Fort Worth area (ERCOT North Zone), the SPP proposal also provided much needed transmission import capacity to the Panhandle, offering the potential to lower energy costs in that area as well. Regrettably, the PUCT rejected the SPP plan and instead directed ERCOT to develop several alternative transmission expansion plans to harvest wind energy by constructing new transmission facilities, including facilities that would extend from ERCOT into what historically has been the SPP, thereby expanding ERCOT to include these newly designated CREZs. The approach adopted by the PUCT leaves, unresolved, the transmission constraints into the SPS control area and is expected to be much more expensive than the rejected SPP plan. ERCOT filed its report with the PUCT on April 2, 2008. According to the ERCOT press release issued in connection with the report, the different expansion scenarios range in cost, exclusive of gathering facility costs, from $2.96 billion to $6.8 billion. The higher cost scenarios provide for the transmission of a greater amount of wind energy. At an average 35 percent annual capacity factor for wind generation and an 18 percent fixed charge rate to support the transmission plant additions, the different ERCOT scenarios reflect an incremental transmission cost of wind energy ranging from a low of $14.37/MWh to a high of $18.41/MWh. The PUCT is expected to make a decision on the CREZ related transmission upgrade plan this summer.

Texas Nodal

The Texas legislature and the PUCT also have acted aggressively to implement competitive whole sale energy markets and to foster competition for retail loads. Municipals and cooperatives such as Golden Spread are subject to the wholesale market rules, but municipals and cooperatives serving retail loads can elect not to participate in the retail competition elements of the ERCOT competitive markets. As was the case with the startup of competitive markets in other parts of the country, when ERCOT first launched its market, generators of electricity found ways to take advantage of market design flaws and cause price spikes that hurt consumers while generating windfall profits for sellers. Ultimately, ERCOT concluded that its original market design was so flawed it had to be replaced. ERCOT is in the final stages of developing a new wholesale market design which it intends to implement in December 2008. This new market design is called Texas Nodal and it is based upon the concept of Locational Marginal Price or LMP. Each generator will have its own pricing node while the load nodes will be aggregated together within four geographic zones. Currently, all the Golden Spread ERCOT member loads are in the West Zone for pricing purposes. Compared to other areas of Texas, the West Zone is sparsely populated with relatively low total retail loads. It also has a tremendous amount of wind energy already connected to the transmission system, with potential for further wind energy development. Because existing transmission facilities interconnecting the West Zone with other parts of Texas are insufficient to export all of this wind energy, at times wholesale hourly prices in the West Zone turn negative, meaning the generator must pay to put energy on the grid and the customer is paid to use it.

Golden Spread has monitored the development of the new ERCOT market design and is preparing for the transition to Texas Nodal. Hopefully, this new market design will achieve its stated goal of benefitting the consumer and mitigating unreasonably high wholesale charges.

SOUTHWEST POWER POOL

SPP Regional Entity

The SPP has been selected by NERC as the Regional Entity (RE) for the SPP region. As is the case with the Texas RE, the SPP RE oversees compliance with NERC Reliability Standards and is empowered to impose substantial fines against users, owners or operators of the bulk power system who violate applicable Reliability Standards. Golden Spread has established policies and procedures applicable to its SPP operations that assure that it maintains strict and complete adherence to all applicable SPP RE Reliability Standards.

SPP Regional Transmission Organization

During 2007 Golden Spread actively participated in the "stakeholder" process through which the SPP is developing rules and regulations regarding the operation of competitive energy markets and policies governing the construction and cost allocation of new transmission facilities. The SPP is the Regional Transmission Organization (RTO) with responsibility for market operations and transmission coordination/reliability affecting service to Golden Spread's non-ERCOT loads. The stakeholder process is open to all market participants within the SPP, and consists of a committee structure that addresses market rules, cost allocation, reliability and other issues that fall within the SPP's jurisdiction. The various committees make recommendations to the SPP staff and the independent Board of Directors. SPP policies are determined by the SPP Board, subject to FERC approval.

Golden Spread is represented on several key committees and plays an active role in shaping SPP policy. It attempts to assure that recommendations that emanate from the committee process will maintain reliability and will enhance, rather than harm, competition. Golden Spread also exercises its right to speak before the SPP Board when it determines that a policy under consideration by the SPP Board merits either support or opposition. If necessary, Golden Spread also will intervene in SPP FERC proceedings to challenge actions adopted by the SPP Board that it considers unjust and unreasonable.

In addition to participation in SPP policy development activities, Golden Spread is also active in matters that come before the SPP Regional State Committee (RSC). The state regulatory commission of each state within the SPP area appoints one of its members to serve on the RSC. The public policy concerns of the state commissions, together with the rate making, transmission line siting and transmission certification powers that they exercise, make them critical stakeholders in the ongoing operations of the SPP. The RSC has evolved over the last few years to the point where its understanding of critical issues is well recognized by other stakeholders and the recommendations that it makes to the SPP Board of Directors are given great weight. The RSC is a firm advocate of developing necessary transmission expansions within the SPP for both economic and reliability reasons. With RSC encouragement, the SPP developed several portfolios of new economic transmission upgrades that will address many operational problems and are intended to lower energy costs for many customers within the SPP. These projects are being reviewed by the RSC and a recommendation regarding which projects to pursue is expected from the RSC later this year. The proposals under consideration are expected to provide benefits to Golden Spread as well as other SPP stakeholders.

The Oklahoma State Legislature has created the Oklahoma Electric Power Transmission Task Force to investigate the feasibility of developing transmission upgrades to support the delivery of new wind generation from sites located in the western portions of the state. Golden Spread is monitoring the work of this task force because it may lead to increases in transmission capacity that could benefit Golden Spread and its members.

SPP Development of Competitive Energy Markets

EIS Market

On February 1, 2007, the SPP established the Energy Imbalance Service (EIS) Market for all wholesale suppliers and customers within the SPP. With the advent of the EIS Market, Golden Spread, for the first time in its history, became entirely responsible for the hourly forecasting of its own loads and the scheduling of its resources to meet those loads. Golden Spread successfully integrated its operations into the new market structure. The EIS Market affords an opportunity for Golden Spread to obtain energy at a lower cost than can be supplied from its own resources and also provides a market outlet for energy that is in excess to the needs of Golden Spread's members.

Before the EIS Market was implemented by the SPP, generating resources in the SPS control area were subject to real time economic dispatch by SPS. Golden Spread resources were economically committed and dispatched with the SPS resources pursuant to the provisions of a Commitment and Dispatch Services Agreement with SPS (C&D Agreement). The C&D Agreement made it unnecessary for Golden Spread to submit advance hourly schedules of load and resource, with imbalances purchased or sold to SPS under the Imbalance Energy provisions of the Xcel Open Access Transmission Tariff (OATT). With the advent of the EIS Market on February 1, 2007, however, SPS could no longer engage in real time economic dispatch. Instead, it became subject to the SPP requirement for hourly scheduling of loads to resources, with imbalances in supply and demand cleared through the EIS Market. Golden Spread and SPS responded to this development by negotiating cost based Interim Dispatch Agreements (IDAs) intended to accommodate the EIS Market rules while maintaining the cost savings benefits of the C&D Agreement. The IDAs are short term in duration and must be renegotiated periodically to accurately capture the savings realized from dispatch of Mustang Station and properly allocate the benefits of those savings between Golden Spread and SPS.

Day Two Market

The EIS Market is a real time ancillary services market that does not involve day ahead unit commitment determinations by the SPP. That function remains reserved to individual market participants. This type of real time energy management market is sometimes referred to as a Day One Market. Currently, the SPP is embarking on the development of a completely new market structure in which day ahead offer prices will be submitted by market participants for next day commitment and dispatch by the SPP. This type of market, which is similar to the markets now operated by certain other RTOs such as the Midwest Independent Transmission System Operator, Inc. (MISO) and the PJM Interconnection (PJM), is referred to as a Day Two Market. It is expected that development of the SPP Day Two Market will take several years and will require significant stakeholder input. In a Day Two Market all generation and load is priced separately based upon the LMP. All generation delivered into the grid is priced at the LMP applicable at the point of injection and all energy taken from the grid is priced at the LMP applicable to the points where loads are served. Significant problems have been experienced during the implementation of other Day Two Markets, often with the effect of customers becoming subjected to very high prices. Furthermore, even established Day Two Markets such as PJM have resulted in energy prices so high that outraged customers have called for a roll-back to Day One Markets. The risks posed by the transition to a Day Two Market in the SPP cannot be understated. In the coming years, Golden Spread will play an active role in the SPP to assure that if the SPP elects to implement a Day Two Market, the market design will benefit and not burden our members.

POWER SUPPLY PLANS REVISED

Power supply planning remains the primary responsibility of Golden Spread. During 2007 Golden Spread encountered and successfully managed numerous challenges in this critical area. At the beginning of 2007, a keystone of Golden Spread's power supply planning was the timely development and commercial operation of the Sunflower Electric Power Corporation's expansion of its Holcomb Station, an electric generating facility located in Western Kansas. The expansion plan included at least two new 700 MW pulverized coal generating facilities and Golden Spread expected to acquire a 400 MW ownership interest in one of those units. This coal-fired capacity was needed to replace, in part, capacity supplied under the PSA with SPS that will terminate in 2012. However, over the course of the year, it became increasingly apparent that the vigorous opposition of environmental groups to coal-fired generation would delay the Holcomb Station Expansion Project until after the expiration of the PSA.

The Holcomb Station Expansion Project was dealt a potentially terminal setback on October 18, 2007, when the Director of the Kansas Department of Health and Environment (KDHE) denied Sunflower's application for an air permit for the project. The Director's order denying the issuance of an air permit overruled the KDHE staff recommendation that a permit be issued because the application satisfied all applicable regulatory requirements. Notwithstanding the staff recommendation, the Director of KDHE denied the permit. The Director determined that he had authority under Kansas law to deny the permit on the basis of his conclusion that carbon dioxide emitted by the plant posed a danger to public health. The Kansas legislature reacted to the denial of the air permit by passing legislation that addressed certain environmental concerns raised by the Holcomb expansion, thus providing a path for the issuance of an air permit. However, in March 2008, this legislation was vetoed by the Governor of Kansas notwithstanding the fact it had wide support in both the Kansas House and the Kansas Senate.

The denial of the Holcomb air permit affected not only power supply plans for Golden Spread, but also regional transmission planning. Before the permit was denied, the SPP planned major transmission expansions into and within the SPS control area to move Holcomb power to Golden Spread loads. The transmission line additions also would have made it possible to export a significant amount of wind energy from the Panhandle to other areas of the SPP. This transmission plan was cancelled by the SPP when the Holcomb Station Expansion Project air permit was denied. Golden Spread continues to work with Sunflower in its efforts to secure an air permit and move the Holcomb Station Expansion Project forward, but it also has acted to secure supplemental power supplies to fill the resource shortfall created when the PSA expires. In the fall of 2007 Golden Spread negotiated a RPSA with SPS in conjunction with the settlement of a number of outstanding regulatory proceedings. The RPSA will become effective upon termination of the PSA and will provide 500 MW of capacity and associated energy beginning in 2012 and continuing through 2015, when it will step down to 300 MW for the next two years, and then down to 200 MW for the remaining two years of the agreement.

While the RPSA, as negotiated, is an extremely important resource beginning in 2012, Golden Spread also commenced action in 2007 to address both the risks posed by increases in near term load growth and the possibility that future adverse regulatory action could diminish the value of the RPSA. In 2006 Golden Spread purchased two GE 7FA 150 MW combustion turbine-generators and one GE D11 steam turbine-generator from Termogaucha-Usina Termeletrica S/A, a Brazilian oil company. All three units had been purchased new from GE, but never transported to Brazil and never installed. One of the GE 7FAs was placed in commercial operation as Mustang Station Unit 5 on June 1, 2007. The other GE 7FA and the D11 are being relocated to a new Golden Spread storage facility in Lubbock, Texas from their current storage locations. Storing this equipment in Lubbock is expected to facilitate the development and commercial operation of a new generating facility plant when it is needed to serve loads.

Golden Spread also took action in 2007 to respond to a growing public interest in fostering renewable resources. As part of its settlement with SPS, Golden Spread agreed to allow the automatic pass through of the costs incurred by SPS to acquire renewable resources supplying energy under the PSA. It also undertook engineering studies to quantify the ability to economically integrate wind generation into its power supply portfolio. Finally, it developed a program to allow its member systems to implement net metering for renewable resources and a program to provide access by generators of renewable resources to the SPP EIS market.

MANAGER SEARCH

In anticipation of the planned end of year retirement of President and General Manager Robert W. Bryant, the Golden Spread Board initiated a search for a successor president and general manager in early 2007. However, by the fall of 2007 it became apparent that unexpected developments, such as the denial of the Holcomb Station Expansion Project air permit, would leave critical power supply arrangements unresolved at the time of Mr. Bryant's scheduled retirement. Given this change in circumstances, the Board determined that it would be in Golden Spread's best interests to terminate the search then in progress and to secure from Mr. Bryant an agreement to defer his retirement.

The Board began a new search in January 2008. Applications are due by June 20, 2008. The Board intends to make its final selection by mid- November and expects to employ a successor president and general manager not later than February 1, 2009.