#### Iterative System Impact and Facilities Study 

#### Business Procedures

Basin Electric Power Cooperative, Inc. ("Basin Electric"), Heartland
Consumers Power District ("Heartland") and Western Area Power
Administration, Upper Great Plains Region ("Western"), the owners of the
Integrated System (IS), will provide an iterative system impact and
facilities study process under these Business Procedures in accordance
with Sections 19.3, 19.4, 32.3 and 32.4 of Western's Open Access
Transmission Tariff ("OATT"). Capitalized terms in the Business
Procedures reflect the definitions in the OATT. If there is a conflict
between these procedures and the OATT provisions, the OATT provisions
shall apply.

1.  **[Purpose]{.underline}**: The purpose of these Business Procedures
    is to expedite processing of transmission requests for all OATT
    Customers and to bring new transmission and generation on-line in a
    quicker and more efficient manner. Western, the administrator of the
    OATT that provides for service over the IS facilities, performs and
    also directs Basin Electric and Heartland to perform the studies for
    long-term point-to-point transmission service requests and network
    transmission service requests involving the IS facilities.

2.  **[Implementation]{.underline}**: The IS owners will implement these
    Business Procedures in a fair and impartial manner to treat all OATT
    Customers in a non-discriminatory manner. In accordance with the
    Federal Energy Regulatory Commission's ("FERC") policies, OATT
    Customers will have exclusive access to any privileged information
    concerning the status of their own transactions. Communications
    between the IS owners and any OATT Customer concerning the status of
    an outstanding transmission request will include all pertinent
    information that can be provided at the time of the Customer's
    request. The information provided will be of the same level of
    detail for any OATT Customer presenting a similar request. According
    to FERC policies, these status communications may disclose nonpublic
    transmission information that: (1) is provided in response to a
    request for transmission service; (2) pertains to the request for
    service; and (3) is comparable to the information provided to
    affiliated and non-affiliated Transmission Customers alike in the
    context of their requests for transmission service.

3.  **[System Impact Study Process]{.underline}**:

    1.  [Due Diligence]{.underline}: The IS owners will use the same due
        diligence in completing a System Impact Study for a Customer as
        it uses when completing studies for themselves. Upon receipt of
        an executed System Impact Study Agreement, and the applicable
        fees, the IS owners will use due diligence to complete the
        required System Impact Study within sixty (60) days. In the
        event that the IS owners are unable to complete the required
        System Impact Study within this time period, Western (on behalf
        of the IS owners) shall so notify the Customer and provide an
        estimated completion date along with an explanation of the
        reasons why additional time is required to complete the studies.

    2.  [Commencement of Study Process]{.underline}: Upon receipt of a
        completed transmission service request, and an executed System
        Impact Study Agreement, the IS owners will normally schedule a
        working meeting (or conference call) with the Customer, as
        necessary, to allow the IS personnel performing the System
        Impact Study to review and clarify the information submitted in
        the Customer's transmission request(s).

    3.  [Weekly Status Update]{.underline}: A Customer who has a System
        Impact Study in progress, may contact the IS owners, on a weekly
        or less frequent basis, to discuss the status and anticipated
        results of the System Impact Study and the impacts of possible
        modifications to its transmission request. The IS owners will
        contact the Customer as necessary to request feedback during the
        completion of the study.

    4.  [Completed Study]{.underline}: Western shall notify the Customer
        immediately upon completion of the System Impact Study if the
        Transmission System will be adequate to accommodate all or part
        of a request for service or that no costs are likely to be
        incurred for new transmission facilities or upgrades. A copy of
        the completed System Impact Study and related work papers shall
        be made available to the Customer. The System Impact Study shall
        identify any system constraints and redispatch options,
        additional Direct Assignment Facilities or Network Upgrades
        required to provide the requested service.

    5.  [Continuing the Transmission Request]{.underline}: In order for
        a request to remain a Completed Application, within fifteen (15)
        days of completion of the System Impact Study, the Customer must
        execute a Service Agreement if a Facilities Study is not
        required under Section 4 below or the Application will be deemed
        terminated and withdrawn.

4.  **[Facilities Study Process]{.underline}**:

    1.  [Facilities Study Agreement]{.underline}: If a System Impact
        Study indicates that additions or upgrades to the Transmission
        System are needed to supply the Customer's service request,
        Western (on behalf of the IS owners), within thirty (30) days of
        the completion of the System Impact Study, shall tender to the
        Customer a Facilities Study Agreement pursuant to which the
        Customer shall agree to reimburse the IS owners for performing
        the required Facilities Study. For a service request to remain a
        completed application, the Customer shall execute the Facilities
        Study Agreement and return it, and the applicable fees, to
        Western within fifteen (15) days. If the Customer elects not to
        execute the Facilities Study Agreement, its application shall be
        deemed withdrawn.

    2.  [Due Diligence]{.underline}: Upon receipt of an executed
        Facilities Study Agreement, and applicable fees, the IS owners
        will use due diligence to complete the required Facilities Study
        within sixty (60) days. If the IS owners are unable to complete
        the Facilities Study in the allotted time period, Western shall
        notify the Transmission Customer and provide an estimate of the
        time needed to reach a final determination along with an
        explanation of the reasons for the additional time required to
        complete the study.

    3.  [Weekly Status Update]{.underline}: A Customer who has a
        Facilities Study in progress, may contact the IS owners, on a
        weekly or less frequent basis, to discuss the status and
        anticipated results of the Facilities Study and the impacts of
        possible modifications to its transmission request. The IS
        owners will contact the Customer as necessary to request
        feedback during the completion of the study.

    4.  [Completed Study]{.underline}: When completed, the Facilities
        Study will include a good faith estimate of (i) the cost of
        Direct Assignment Facilities to be charged to the Transmission
        Customer, (ii) the Transmission Customer's appropriate share of
        the cost of any required Network Upgrades as determined pursuant
        to the provisions of the OATT, and (iii) the time required to
        complete such construction and initiate the requested service.

    5.  [Continuing the Transmission Request]{.underline}: The
        Transmission Customer shall provide the IS owners with a letter
        of credit or other reasonable form of security acceptable to the
        Transmission Provider equivalent to the costs of new facilities
        or upgrades consistent with commercial practices as established
        by the Uniform Commercial Code. The Transmission Customer shall
        have thirty (30) days to execute a Service Agreement and provide
        the required letter of credit or other mutually acceptable form
        of security or the request will no longer be a Completed
        Application and shall be deemed terminated and withdrawn.

5.  **[Concurrent Studies]{.underline}**: Upon the request of the
    Customer, the IS owners will complete, on a concurrent basis, the
    System Impact Study and Facilities Study in order to facilitate
    faster and efficient processing of the Customer's transmission
    request. Upon the receipt of an executed System Impact Study
    Agreement and Facilities Study Agreement, the IS owners will
    complete the studies in accordance with these Business Practices,
    except that the IS owners will complete those studies concurrently.

6.  **[OASIS Posting]{.underline}**: These Business Procedures will be
    posted on the Western (Upper Great Plains Region) OASIS on behalf of
    the IS owners.

is-iterative-studies-proc-090601.doc, SCS, 9/6/2001