(Cooperative) hereby gives public notice regarding the process to be followed by it in implementing the statutory directives in the Energy Policy Act of 2005 (EPAct 2005), which amended the Public Utilities Regulatory Policies Act of 1978 (PURPA).  EPAct 2005 established new Federal standards under Section 111(d) of PURPA, which each non-regulated electric utility (such as the Cooperative) is required to consider and to "make a determination whether or not it is appropriate to implement such standard(s)" within certain defined time lines based on evidence collected from interested persons after public notice and hearing. 

       The five new PURPA standards defined by EPAct 2005 which the Cooperative must consider are set forth below.  Further information about these standards is posted on the Cooperative's website at www.seiec.com (click tab Energy Policy Act).  Any electric consumer or member  on the Cooperative's system (referred to hereinafter as "Eligible Participants") not able to access the Cooperative's web site who desires a copy of the information related to the PURPA standards or the subject matter hereof should contact the Cooperative by phone (Dustin Tripp, President/CEO at 618-273-2611 ext 162), by mail (SouthEastern IL Elec Coop, P.O. Box 251, Eldorado, IL 62930), or by fax (618-273-3886 attn Dustin Tripp), and a copy will be provided at cost.  The five new PURPA standards are, as follows:

       1.        Net Metering.  Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves.  For purposes of this paragraph, the term "net metering service" means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.

       2.        Fuel Sources.  Each electric utility shall develop a plan to minimize dependence on one (1) fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.

       3.        Fossil Fuel Generation Efficiency.  Each electric utility shall develop and implement a ten (10)-year plan to increase the efficiency of its fossil fuel generation.

       4.        Time-Based Metering and Communications (Smart Metering).  Not later than eighteen (18) months after the date of enactment of this paragraph, each electric utility shall offer each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance, if any, in the utility's costs of generating and purchasing electricity at the wholesale level.  The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology. (This language reflects the opening paragraph of the standard; the second paragraph of the standard lists some of the types of time-based rate schedules that may be offered; and the third paragraph provides that each electric utility subject to the first paragraph shall provide each customer requesting a time-based rate with a time-based meter capable of enabling the utility and customer to offer and receive such rate.)  Further discussion about this standard is available on the Cooperative's web site at www.seiec.com (click tab Energy Policy Act).

       5.        Interconnection.  Each electric utility shall make available, upon request, interconnection service to any electric consumer that the electric utility serves.  For purposes of this paragraph, the term "interconnection service" means service to an electric consumer under which an on-site generating facility on the consumer's premises shall be connected to the local distribution facilities.  Interconnection services shall be offered based upon the standards developed by the Institute of Electrical and Electronics Engineers: IEEE Standard 1547 for Interconnecting Distributed Resources with Electric Power Systems, as they may be amended from time to time.  In addition, agreements and procedures shall be established whereby the services are offered shall promote current best practices of interconnection for distributed generation, including but not limited to practices stipulated in model codes adopted by associations of state regulatory agencies.  All such agreements and procedures shall be just and reasonable, and not unduly discriminatory or preferential.

       The Cooperative's Management has made recommendations concerning these PURPA standards to the Cooperative's Board of Trustees in written form.  A document entitled Energy Policy Act of 2005 PURPA Title I Standards, Management Recommendations April 18, 2007 (booklet) has been prepared and submitted.  These materials are available on the Cooperative's web site, or the booklet is available at cost by contact with the Cooperative as outlined above.  In summary, the Cooperative's management has made the following recommendations as to each standard:

       Net Metering.  Management does not recommend implementing this standard.

       Fuel Sources and Fossil Fuel Generation Efficiency.  The Cooperative purchases its full power requirements from Southern Illinois Power Cooperative, Inc. (SIPC) under a long-term full-requirements contract.  For this reason, the Cooperative would not be able to effect certain of the PURPA standards, most notably Standards 2 (Fuel Sources) and 3 (Fossil Fuel Generation Efficiency).  The Cooperative's ability to effect aspects of other standards may be limited as well.  Those who may elect to comment are urged to take such limitations into account when presenting their views. The Cooperative does note that SIPC follows policies consistent with Standards 2 and 3, which the Cooperative supports.

       Time-Based Metering and Communications (Smart Metering).  Management recommends implementing this standard initially on a limited basis to certain customer classes.

       Interconnection.  Management recommends implementing this standard.

       These recommendations and the booklet are the Initial Comments to be presented on behalf of the Cooperative for action, decision and determination by the Cooperative's Board of Trustees.  The evidence and information to be considered by the Board in making its determination about these standards may include Initial Comments, Reply Comments, testimony of witnesses, and other relevant materials submitted by the Cooperative, Eligible Participants, interested persons or entities.

       In order for the Cooperative's Board of Trustees to fully consider the views of the Eligible Participants regarding the standards so that it may determine whether or not it is appropriate to implement such standards, the Cooperative will follow the procedural schedule set forth below (each component of which is more fully addressed in the ensuing portion of this Notice):

       Þ  Notice - to be posted on April 24, 2007, or as soon thereafter as possible.

       Þ  Initial Comments - to be submitted on or before June 5, 2007, or within such additional reasonable time thereafter as the Cooperative may allow.

       Þ  Reply Comments - to be submitted on or before June 19, 2007, or within such additional reasonable time thereafter as the Cooperative may allow.

       Þ  Appearance and Request To Participate in Public Hearing - to be submitted on or before June 19, 2007, or within such additional reasonable time thereafter as the Cooperative may allow.

       Þ  Public Hearing - to be held on June 26, 2007, commencing at 11:00 a.m. (CDT).

       Þ  Determination - to be made and rendered on or before August 8, 2007.

       Notice.  This Notice (or a summary thereof) is being posted at the Cooperative's offices, and on its web site.  It will also be sent to all the Cooperative's members along with the June 2007 edition of Illinois Country Living magazine.  In addition, it will be published in certain newspapers of general circulation in the Cooperative's territory and service area.   Any Eligible Participant may obtain at cost a copy of the relevant portions of EPAct 2005, booklet, Initial Comments and Reply Comments at the offices of the Cooperative by following the procedures outlined above.

       Initial Comments.  These comments should by typed (double spaced) and paginated, with appropriate headings so that the reader will know with specificity which of the five standards is being addressed.  The comments should identify the name of the commenting party along with the address, telephone number, and (if available) the email address of the commenting party.  The Cooperative requests that three (3) copies of the comments be filed at its office at P. O. Box 251, 585 Highway 142 South, Eldorado, IL 62930 (attn Dustin Tripp).  The Cooperative will make reasonable efforts to post all comments submitted on the Cooperative's web site and will make copies of comments available at cost to any Eligible Participant that requests a copy.

       Reply Comments.  The purpose of reply comments (which should conform to the format described above for Initial Comments) is solely to respond to arguments made in another's Initial Comments.  Therefore, it is important that the person or entity submitting Reply Comments identify with specificity the Initial Comment(s) to which the reply or response is made and the points (preferably with page references) in the Initial Comments being addressed.  The filing instructions described above for Initial Comments should be followed for Reply Comments.  The Cooperative will make reasonable efforts to post all Reply Comments on its web site and will make copies of the Reply Comments available at cost to any Eligible Participant that requests a copy.

       Appearance and Request To Participate in Public Hearing.  Any Eligible Participant that desires to participate in the public hearing should so notify the Cooperative in writing (either by mail at the Cooperative's office address noted above, by fax at the fax phone number noted above).  The notification (Appearance and Request To Participate in Public Hearing) should indicate at least the following: (i) the name and address of the person or entity requesting to appear and participate, which will be the address used for future notice to such Eligible Participant; (ii) whether the person or entity filed Initial and/or Reply Comments, and on what date(s); (iii) whether the person or entity desires to make an oral presentation and if so, the anticipated length (the hearing officer may impose reasonable time limits on presentations); and (iv) whether any special reasonable accommodations need to be made for the Eligible Participant at the hearing.  If no requests to participate in a public hearing are submitted, there will be no public hearing (which fact will be noticed on the Cooperative's web site at least prior to the scheduled hearing), in which case the evidence considered will be the Initial and Reply Comments.

       Hearing.  The hearing, if any, will be held at SouthEastern's Eldorado Headquarters Building, Old Boardroom, 585 Highway 142 South, Eldorado, IL 62930 and will be presided over by an impartial third party hearing officer selected by the Cooperative.  The procedures to be followed at the hearing will depend in part on the number of participants (persons or entities advocating the same position(s) are urged to consolidate their presentations), and will be determined by the presiding hearing officer with the goal of ensuring a full and fair record on the issues.  It is contemplated that a one-day hearing will be adequate, but if that is not the case, the hearing may be adjourned and will continue on subsequent days until completed.  The purpose of the hearing is to collect evidence in addition to that found in the written comments; a person or entity need not appear or participate in the hearing for their written comments to be considered.  A transcript of the hearing or proceeding, if held and required, will be made and will be posted on the Cooperative's web site and made available to an Eligible Participant at cost.

       Determination.  The Determination to be made by the Cooperative (acting through its Board of Trustees) as to whether or not it is appropriate to implement any of the five standards will be in writing, will be based on findings supported by the evidence of record, will be posted on the Cooperative's web site and will be made available for any Eligible Participant at cost. 

       Persons or entities interested in this matter are urged to contact the Cooperative with any questions as to any of items discussed above.  Thank you in advance for your interest.