Black Hills Energy Final Bargaining Report

Compensation

• Wages

• 3.0% - 2012

• 2.5% - 2013

• 3.0% - 2014

• Lump Sum

• 1% - 2012

Vacation/Paid Time Off (PTO) Allotment

Years of Service PTO Allocation (Days) Years of Service PTO Allocation (Days)

Less than 1 Pro-rated 16 24

1 15 17 25

2 15 18 25

3 16 19 25

4 17 20 28

5 18 21 28

6 18 22 28

7 20 23 28

8 20 24 28

9 20 25 28

10 22 26 29

11 22 27 29

12 23 28 29

13 23 29 29

14 23 30+ 30

15 24

Sick Leave Banks:

• Employees prior to this agreement were able to bank Sick Leave up to 1200 hours. When an employee would retire they would lose whatever Sick Leave balance they have accumulated.

• Sick Leave Payout

• Employees will have the ability to receive a payment for up to 10% of their sick leave banks.

• Sick Leave Carryover

• Employees will have the option to carryover 40 hours of Sick Leave time they have accumulated in their Sick Leave bank.

Representation

• 24 Hours Notice to Union Representative prior to suspension or discharge.

Benefits

• Medical Plan 80/20 Plan

• Dental Plan

• Vision Plan

• Life Insurance Plan

• Accidental Death and Dismemberment

• Short Term Disability Plan

• Long Term Disability Plan

• Retirement Savings Plan

• Retiree Health Care Plan, including Retiree Medical Savings Account

• Flexible Spending Account

• Pension Plan (As Applicable)

• Employee Assistance Program

• Employee Uniforms and Safety Shoes

• Company Incentive Plan

• Prescription or Non-Prescription Safety Glasses

• Tuition Reimbursement Program

• Required Commercial Drivers License

• Company Uniform Policy

• Severance Payment Plan

• Dependent Scholarship Program

Absences from Duty

• Improvements to Jury Duty and Funeral Leave.

• Improvements to Paid Time Off.

Overtime and Holidays

• Added two floating holidays and guaranteed Christmas Eve and Christmas Day off from work.

Dependent Education Plan

• Pool #1

• Current dependents actively participating or eligible to participate will receive the following percentage of tuition based on $9600.00 per school year.

 2011-2012 – 100%

 2012-2013 – 100%

 2013-2014 – 75%

 2014-2015 – 75%

 2015-2016 – 50%

• Pool #2

• Future dependents would receive up to $17,280 towards their college tuition.

Contracting Out – Job Security

• Extended Contracting and Job Security commitment.