RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 1 of 24

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 1 of 24

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11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 3 of 24 Southern Montana Electric G&T Cooperative, Inc. Case No. 11-62031 August 31, 2014 Summary of Deposits this Month Deposits from UST-8 Continuation Sheets 2,696,207.96 Cash receipts not included above (if any) - Total Receipts 2,696,207.96 Summary of Disbursements this Month Disbursements from UST-8 Continuation Sheets (3,165,446.87) Disbursements resulting from asset sales out of the ordinary course - Disbursements made by other parties for the debtor (if any, explain) - Total Disbursements (3,165,446.87) Net Cash Flow (Total Receipts Minus Total Disbursements) (469,238.91) There are no Delinquent statutory fees owing to the US Trustee

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 4 of 24 Southern Montana Electric G&T Cooperative, Inc. Case No. 11-62031 August 31, 2014 First Interstate Bank Southern Montana Electric G&T Cooperative, Inc. - DIP Bankruptcy Case #11-62031 General Operating Account Beginning Balance 1,664,233.91 Add: Transfers in from other estate bank accounts 55,005.00 Cash receipts not included above (if any) 2,696,207.96 Financing or other loaned funds - Total Cash Available 2,751,212.96 Subtract Transfers out to other estate bank accounts (250,000.00) Cash disbursements* (3,165,446.87) Total (3,415,446.87) Adjustments, if any Ending Cash balance 1,000,000.00 *Please note that someone has used Southern Montana's Bank Account to create fraudulent checks and ACH payments. To date all fraudlent checks and ACH payments have been caught and none have been paid. Southern Montana has account protection with its bank and continues to monitor the situation very closely. The bank is notified of any fraudulent checks appearing in the account, which are then returned. Continuation Sheet, Number 1 of 3

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 5 of 24 Southern Montana Electric G&T Cooperative, Inc. Deposits August 1, 2014 - August 31, 2014 Type Date Name Split Amount 131.2 General Operating - FIB Payment 08/15/2014 HGS Holding Trust 142.3.53 Due from HGS Holding Trust 49,834.36 Payment 08/21/2014 Mid-Yellowstone Electric Cooperative 142.0 Accounts Receivable 323,166.64 Payment 08/21/2014 Central Montana Electric Power Cooperative 1499 Undeposited Funds 10,320.79 Payment 08/22/2014 Tongue River Electric Cooperative 142.0 Accounts Receivable 593,902.43 Payment 08/22/2014 Beartooth Electric Cooperative 142.0 Accounts Receivable 448,711.17 Payment 08/22/2014 Fergus Electric Cooperative 142.0 Accounts Receivable 1,270,272.57 Total 131.2 General Operating - FIB 2,696,207.96 TOTAL 2,696,207.96

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 6 of 24 Southern Montana Electric G&T Cooperative, Inc. Disbursements August 1, 2014 - August 31, 2014 Type Date Num Name Memo Split Amount Liability Check 08/01/2014 2897 NRECA Group Benefits Trust 01-27195-001 -SPLIT- -8,567.40 Bill Pmt -Check 08/01/2014 2898 NRECA 232.01 Accounts P -716.84 Bill Pmt -Check 08/01/2014 ACH NRECA R & S 232.01 Accounts P -5,742.00 Bill Pmt -Check 08/01/2014 ACH NRECA R & S 232.01 Accounts P -97.50 Bill Pmt -Check 08/07/2014 2899 Babcock & Wilcox Power Generation Group 232.01 Accounts P -679.17 Bill Pmt -Check 08/07/2014 2900 BLB Services, LLC 232.01 Accounts P -300.00 Bill Pmt -Check 08/07/2014 2901 CenturyLink Business Services Acct. No. 69133859 232.01 Accounts P -1,191.10 Bill Pmt -Check 08/07/2014 2902 Electric Scientific Co. Inc. 232.01 Accounts P -2,360.00 Bill Pmt -Check 08/07/2014 2903 Emerson 232.01 Accounts P -2,379.50 Bill Pmt -Check 08/07/2014 2904 Exxon Mobil Business Card Acct. No. 7187 6000 0029 5441 232.01 Accounts P -412.49 Bill Pmt -Check 08/07/2014 2905 FedEx 232.01 Accounts P -9.17 Bill Pmt -Check 08/07/2014 2906 OATi 232.01 Accounts P -3,582.15 Bill Pmt -Check 08/07/2014 2907 Pierce Leasing 232.01 Accounts P -2,000.00 Bill Pmt -Check 08/07/2014 2908 Proven Compliance Solutions, Inc. 232.01 Accounts P -1,998.75 Bill Pmt -Check 08/07/2014 2909 Weidmann Diagnostic Solutions Inc. 232.01 Accounts P -256.73 Bill Pmt -Check 08/07/2014 2910 Yellowstone Co. Treasurer 232.01 Accounts P -134.47 Bill Pmt -Check 08/07/2014 ACH Mastercard 232.01 Accounts P -95.21 Bill Pmt -Check 08/07/2014 ACH Mastercard 232.01 Accounts P -80.20 Bill Pmt -Check 08/11/2014 2911 ATCO Structures and Logistics Ltd. 232.0 Accounts Pa -55,005.00 Bill Pmt -Check 08/11/2014 2912 ATCO Structures and Logistics Ltd. 232.0 Accounts Pa -710.78 Bill Pmt -Check 08/11/2014 2913 Babcock & Wilcox Power Generation Group 232.0 Accounts Pa -586.70 Bill Pmt -Check 08/11/2014 2914 Big Horn Resort 232.0 Accounts Pa -13.71 Bill Pmt -Check 08/11/2014 2915 Bison Engineering 232.0 Accounts Pa -356.30 Bill Pmt -Check 08/11/2014 2916 Boland Drilling Co. 232.0 Accounts Pa -646.03 Bill Pmt -Check 08/11/2014 2917 Bonneville Power Administration 232.0 Accounts Pa -2,430.66 Bill Pmt -Check 08/11/2014 2918 Brown Law Firm, P.C. 232.01 Accounts P -177.46 Bill Pmt -Check 08/11/2014 2919 Cascade Electric Co., Inc. 232.0 Accounts Pa -49.50 Bill Pmt -Check 08/11/2014 2920 Clean Air Engineering 232.0 Accounts Pa -602.61 Bill Pmt -Check 08/11/2014 2921 Covington & Burling LLP 232.0 Accounts Pa -1,352.02 Bill Pmt -Check 08/11/2014 2922 Douglas Wilson & Company, PC 232.0 Accounts Pa -58.45 Bill Pmt -Check 08/11/2014 2923 E3 Consulting 232.0 Accounts Pa -2,107.78 Bill Pmt -Check 08/11/2014 2924 Edwards Frickle & Culver 232.0 Accounts Pa -6,185.93 Bill Pmt -Check 08/11/2014 2925 Electrical Consultants, Inc. 232.0 Accounts Pa -643.13 Bill Pmt -Check 08/11/2014 2926 Emerson 232.0 Accounts Pa -99.77 Check 08/11/2014 2927 First Interstate Bank 231.0 Line of Cred -25,605.15 Bill Pmt -Check 08/11/2014 2928 GE Packaged Power, Inc. 232.0 Accounts Pa -9,697.44 Bill Pmt -Check 08/11/2014 2929 Tim Gregori 232.01 Accounts P -277.72 Bill Pmt -Check 08/11/2014 2930 Gerhard Helm 232.0 Accounts Pa -13.57 Bill Pmt -Check 08/11/2014 2931 Highline Communications 232.0 Accounts Pa -15.47 Bill Pmt -Check 08/11/2014 2932 LS Jensen 232.0 Accounts Pa -13,892.72 Bill Pmt -Check 08/11/2014 2933 Mastercard 232.0 Accounts Pa -44.22 Bill Pmt -Check 08/11/2014 2934 McJunkin Red Man Corporation 232.01 Accounts P -388.03 Bill Pmt -Check 08/11/2014 2935 Montana Dept. of Environmental Quality 232.01 Accounts P -16.29 Bill Pmt -Check 08/11/2014 2936 Northern Broadcasting System, Inc. 232.0 Accounts Pa -74.11 Bill Pmt -Check 08/11/2014 2937 Northwestern Energy 232.01 Accounts P -149,814.82 Bill Pmt -Check 08/11/2014 2938 Pheasant Run Builders 232.01 Accounts P -607.25 Bill Pmt -Check 08/11/2014 2939 Pitney Bowes Global Financial Svcs LLC 232.01 Accounts P -37.52 Bill Pmt -Check 08/11/2014 2940 Powell Electrical Systems, Inc. 232.0 Accounts Pa -256.40 Bill Pmt -Check 08/11/2014 2941 Proven Compliance Solutions, Inc. 232.0 Accounts Pa -722.65 Bill Pmt -Check 08/11/2014 2942 Qwest Communications Company, LLC 232.01 Accounts P -41.22 Check 08/11/2014 2943 SME Electric Generation and Transmssion 232.7 Due to SME -2,069.03 Check 08/11/2014 2944 Stanley Consultants, Inc. 232.5 Deferred Sta -24,962.68 Bill Pmt -Check 08/11/2014 2945 Sutherland, Asbill & Brennan LLP 232.0 Accounts Pa -113.16 Bill Pmt -Check 08/11/2014 2946 Tenaska Marketing Canada 232.0 Accounts Pa -780.21 Bill Pmt -Check 08/11/2014 2947 UE Compression 232.0 Accounts Pa -274.12 Bill Pmt -Check 08/11/2014 2948 Ugrin, Alexander, Zadick & Higgins, P.C. 232.0 Accounts Pa -150.05

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 7 of 24 Southern Montana Electric G&T Cooperative, Inc. Disbursements August 1, 2014 - August 31, 2014 Type Date Num Name Memo Split Amount Bill Pmt -Check 08/11/2014 2949 Urquhart Farms 232.0 Accounts Pa -356.48 Bill Pmt -Check 08/11/2014 2950 Washington Utility Group 232.0 Accounts Pa -25.45 Bill Pmt -Check 08/11/2014 2951 Wolf Block 232.0 Accounts Pa -446.25 Bill Pmt -Check 08/11/2014 2952 NOVA Gas Transmission Ltd. 232.01 Accounts P -53,274.71 General Journal 08/13/2014 1988 EarthLink Inc. E-mail Service 921.1.Offics/Supp -20.00 Liability Check 08/14/2014 QuickBooks Payroll Service Created by Payroll Service on 08/12/2014 -SPLIT- -1,405.90 Paycheck 08/15/2014 541 Carrie A. Boysun Direct Deposit -SPLIT- 0.00 Paycheck 08/15/2014 542 Troy S Dahlgren Direct Deposit -SPLIT- 0.00 Bill Pmt -Check 08/15/2014 2953 Bison Engineering 232.01 Accounts P -9,870.06 Bill Pmt -Check 08/15/2014 2954 Integra 232.01 Accounts P -300.96 Bill Pmt -Check 08/15/2014 2955 Lotus Group USA, Inc. 232.01 Accounts P -18,912.00 Bill Pmt -Check 08/15/2014 2956 Northwestern Energy 232.01 Accounts P -19,980.00 Bill Pmt -Check 08/15/2014 2957 ShareFile 232.01 Accounts P -1,261.79 Bill Pmt -Check 08/15/2014 Wire Tsf Western Area Power Administration 232.01 Accounts P -237,811.41 Bill Pmt -Check 08/15/2014 2958 Dye and Moe, P.L.L.P 232.01 Accounts P -8,475.86 Bill Pmt -Check 08/15/2014 2959 Goodrich Law Firm, P.C. 232.01 Accounts P -49,166.09 Bill Pmt -Check 08/15/2014 2960 Harper Hofer & Associates, LLC 232.01 Accounts P -3,474.57 Bill Pmt -Check 08/15/2014 2961 Hein & Associates LLP 232.01 Accounts P -10,362.00 Bill Pmt -Check 08/15/2014 2962 Katten & Temple LLP 232.01 Accounts P -61,912.52 Bill Pmt -Check 08/15/2014 2963 McGuireWoods LLP 232.01 Accounts P -123,346.77 Bill Pmt -Check 08/15/2014 2964 Pascoe Energy Consulting, LLC 232.01 Accounts P -6,059.36 Bill Pmt -Check 08/20/2014 2965 360 Office Solutions 232.01 Accounts P -29.95 Bill Pmt -Check 08/20/2014 2966 A&E Mini Storage 232.01 Accounts P -160.00 Bill Pmt -Check 08/20/2014 2967 Federated Rural Electric Insurance Exchan 232.01 Accounts P -11,971.00 Bill Pmt -Check 08/20/2014 2968 FedEx 232.01 Accounts P -72.71 Bill Pmt -Check 08/20/2014 2969 Goodrich Law Firm, P.C. 232.01 Accounts P -7,000.21 Bill Pmt -Check 08/20/2014 2970 McGuireWoods LLP 232.01 Accounts P -18,152.57 Bill Pmt -Check 08/20/2014 2971 North American Electric Reliability Corp 232.01 Accounts P -56.05 Bill Pmt -Check 08/20/2014 2972 Northwestern Energy Acct. No. 2023559-4 232.01 Accounts P -7,831.30 Bill Pmt -Check 08/20/2014 2973 Sun River Electric Cooperative, Inc. 232.01 Accounts P -83.26 Bill Pmt -Check 08/27/2014 ACH Mastercard 232.01 Accounts P -226.20 Bill Pmt -Check 08/27/2014 Wire Tsf Morgan Stanley Capital Group, Inc. 232.01 Accounts P -995,520.00 General Journal 08/27/2014 2080 First Interstate Bank Positive Payee - Issued Items 933.0 Bank Fees -4.40 General Journal 08/27/2014 2080 First Interstate Bank Positive Payee - Monthly Maintenance Fee 933.0 Bank Fees -44.95 Liability Check 08/28/2014 QuickBooks Payroll Service Created by Payroll Service on 08/26/2014 -SPLIT- -11,651.98 Bill Pmt -Check 08/28/2014 2974 Babcock & Wilcox Power Generation Group 232.01 Accounts P -679.16 Bill Pmt -Check 08/28/2014 2975 Northwestern Energy Acct. No. 2014266-7 232.01 Accounts P -108,623.99 Bill Pmt -Check 08/28/2014 2976 ShareFile 232.01 Accounts P -29.90 Bill Pmt -Check 08/28/2014 2977 Verizon Wireless Acct. No. 771000196-00002 232.01 Accounts P -299.32 Bill Pmt -Check 08/28/2014 ACH Mastercard 232.01 Accounts P -4.76 Paycheck 08/29/2014 543 Carrie A. Boysun Direct Deposit -SPLIT- 0.00 Paycheck 08/29/2014 544 Scott W Sweeney Direct Deposit -SPLIT- 0.00 Paycheck 08/29/2014 545 Troy S Dahlgren Direct Deposit -SPLIT- 0.00 Liability Check 08/29/2014 ACH EFTPS 72-1560392 -SPLIT- -5,044.48 Liability Check 08/29/2014 ACH Business Tax Express - MT Dept. of Rev. 4018468-002-WTH 236.3 State W/H -880.00 Liability Check 08/29/2014 ACH NRECA 401k 01-27195-001 -SPLIT- -1,320.00 Bill Pmt -Check 08/29/2014 2978 Kestrel Engineering Group, Inc. 232.01 Accounts P -1,497.97 General Journal 08/29/2014 2081 U.S. Bank Corporation To record Aug14 debt payment 232.01 Accounts P -1,056,318.19 Total 131.2 General Operating - FIB -3,165,446.87 TOTAL -3,165,446.87

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 8 of 24 Southern Montana Electric G&T Cooperative, Inc. Transfers In August 1, 2014 - August 31, 2014 Type Date Name Split Amount 131.2 General Operating - FIB Transfer 08/11/2014 131.22 Noncash Collateral-FIB 55,005.00 Total 131.2 General Operating - FIB 55,005.00 TOTAL 55,005.00

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 9 of 24 Southern Montana Electric G&T Cooperative, Inc. Transfers Out August 1, 2014 - August 31, 2014 Type Date Name Split Amount 131.2 General Operating - FIB Transfer 08/28/2014 131.22 Noncash Collateral-FIB -250,000.00 Total 131.2 General Operating - FIB -250,000.00 TOTAL -250,000.00

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11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 17 of 24 Southern Montana Electric G&T Cooperative, Inc. Case No. 11-62031 August 31, 2014 First Interstate Bank Southern Montana Electric G&T Cooperative, Inc. - DIP Bankruptcy Case #11-62031 Other - Cash Collateral Beginning Balance 300.00 Add: Transfers in from other estate bank accounts - Cash receipts not included above (if any) - Financing or other loaned funds - Total Cash Available - Subtract Transfers out to other estate bank accounts - Cash disbursements - Total - Adjustments, if any Ending Cash balance 300.00 Continuation Sheet, Number 2 of 3

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11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 19 of 24 Southern Montana Electric G&T Cooperative, Inc. Case No. 11-62031 August 31, 2014 First Interstate Bank Southern Montana Electric G&T Cooperative, Inc. - DIP Bankruptcy Case #11-62031 Other - Non-Cash Collateral Beginning Balance 55,305.00 Add: Transfers in from other estate bank accounts 250,000.00 Cash receipts not included above (if any) - Financing or other loaned funds - Total Cash Available 250,000.00 Subtract Transfers out to other estate bank accounts (55,005.00) Cash disbursements - Total (55,005.00) Adjustments, if any Ending Cash balance 250,300.00 Continuation Sheet, Number 3 of 3

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 20 of 24 Southern Montana Electric G&T Cooperative, Inc. Transfers In August 1, 2014 - August 31, 2014 Type Date Name Split Amount 131.22 Noncash Collateral - FIB Transfer 08/28/2014 131.2 General Operating - FIB 250,000.00 Total 131.2 General Operating - FIB 250,000.00 TOTAL 250,000.00

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 21 of 24 Southern Montana Electric G&T Cooperative, Inc. Transfers Out August 1, 2014 - August 31, 2014 Type Date Name Split Amount 131.22 Noncash Collateral - FIB Transfer 07/18/2014 131.2 General Operating - FIB -55,005.00 Total 131.2 General Operating - FIB -55,005.00 TOTAL -55,005.00

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11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 23 of 24 Southern Montana Electric G&T Cooperative, Inc. UST-8 Summary of Disbursements (contd.) Case No. 11-62031 August 31, 2014 Payments on Prepetition Unsecured Debt Payee's Name Nature of Payment Payment Date Payment Amount Date of Court Approval Class 4 Creditors (as listed below) Distributions per Order 8/11/2014 7/22/2014 ATCO Structures and Logistics, Ltd. - unsecured $ 710.78 Babcock & Wilcox Power Generation Group $ 586.70 Big Horn Resort $ 13.71 Bison Engineering $ 356.30 Boland Drilling Co. $ 646.03 Bonneville Power Administration $ 2,430.66 Brown Law Firm $ 177.46 Cascade Electric Co., Inc. $ 49.50 Clean Air Engineering $ 602.61 Covington & Burling, LLP $ 1,352.02 Douglas Wilson & Co., P.C. $ 58.45 E3 Consulting, LLC $ 2,107.78 Edwards, Frickle & Culver $ 6,185.93 Electrical Consultants, Inc. $ 643.13 EPM Power & Water Solutions $ 99.77 First Interstate Bank $ 25,605.15 GE Packaged Power, Inc. $ 9,697.44 Gregori, Tim $ 277.72 Helm, Gerhard $ 13.57 Highline Communications $ 15.47 LS Jensen Construction & Ready Mix $ 13,892.72 Mastercard $ 44.22 McJunkin Red Man Corporation $ 388.03 Montana Department of Environmental Quality $ 16.29 Northern Broadcasting $ 74.11 Northwestern Corporation $ 149,814.82 Pheasant Run Builders $ 607.25 Pitney Bowes Global Financial Services $ 37.52 Powell Electrical Systems, Inc. $ 256.40 Proven Compliance Solutions, Inc. $ 722.65 Qwest Communications, LLC $ 41.22 SME Electric Generation and Transmission Cooperative, Inc. $ 2,069.03 Stanley Consultants, Inc. $ 24,962.68 Sutherland Asbill & Brennan, LLP $ 113.16 Tenaska Marketing Canada, a division of TMV Corp. $ 780.21 UE Compression $ 274.12 Ugrin, Alexander, Zadick, & Higgins, PC $ 150.05 Urquhart Farms $ 356.48 Washington Utility Group $ 25.45 WolfBlock PLLP $ 446.25 Nova Gas Transmission $ 53,274.71 $ 299,977.55

11-62031-RBK Doc#: 1523 Filed: 09/15/14 Entered: 09/15/14 10:28:13 Page 24 of 24 Southern Montana Electric G&T Cooperative, Inc. UST-8 Summary of Disbursements (contd.) Case No. 11-62031 August 31, 2014 Payments to Attorneys and Other Professionals Professional's name Type of work performed Payment Date Payment Amount Date of Court Approval Dye and Moe, P.L.L.P. Legal 8/15/2014 $ 8,475.86 8/14/2014 Goodrich Law Firm, P.C. Legal 8/15/2014 $ 49,166.09 8/14/2014 Harper Hofer & Associates Accounting Assistance 8/15/2014 $ 3,474.57 8/14/2014 Hein & Associates Accounting Assistance 8/15/2014 $ 10,362.00 8/14/2014 Pascoe Energy Consulting Assistance with RFP of Power Supply 8/15/2014 $ 600.00 8/14/2014 Pascoe Energy Consulting Assistance with RFP of Power Supply 8/15/2014 $ 5,459.36 n/a Katten & Temple, LLP Forensic Accountant 8/15/2014 $ 61,912.52 8/14/2014 McGuireWoods LLP Legal 8/15/2014 $ 123,346.77 8/14/2014 Goodrich Law Firm, P.C. Legal 8/20/2014 $ 7,000.21 n/a McGuireWoods LLP Legal 8/20/2014 $ 18,152.57 n/a Payments to an Officer, Director, Partner, or Other Insider of The Debtor Payee's Name Relationship to Debtor Payment Date Payment Amount Purpose of Payment None