----

**EXHIBIT      10.13**

**DIVIDEND,      ASSIGNMENT AND ASSUMPTION AGREEMENT**

**DIVIDEND,      ASSIGNMENT AND ASSUMPTION AGREEMENT**
**      PNMR DEVELOPMENT AND MANAGEMENT CORPORATION**
**      PUBLIC SERVICE COMPANY OF NEW MEXICO**

**RECITALS**

----

***1.    ***
***Assignment      and Conveyance of PNMR Development Assets.***

|   | A. | The                real property identified as the “Power Plant Site” and the real property                identified as the “Wellfield Sites” (including water rights associated                therewith), all as more particularly described in Schedule 1A                hereto; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | The                permits identified in Schedule 1B hereto, subject to appropriate                regulatory notifications, filings, or other requirements, if any                (it being                understood that certain permits may be in the name of the Operating                Agent); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | The                contracts set forth in Schedule 1C hereto;                and |
|--------|----|----------------------------------------------------------------------------------|

|   | D. | The                personal property and equipment described in Schedule 1D                hereto. |
|--------|----|----------------------------------------------------------------------------------------------------|

***2.    ***
***No      Additional Consideration***
**.**

***3.    ***
***Assumption      of Obligations***
**.**

***4.    ***
***Proration      of Taxes***

***5.    ***
***Further      Assurances***

----

***6.    ***
***Governing      Law***
**.**

***7.    ***
***Counterparts.***

**IN      WITNESS WHEREOF**

**PNMR      DEVELOPMENT AND MANAGEMENT CORPORATION**

**PUBLIC      SERVICE COMPANY OF NEW MEXICO**

----

**Schedule      1A**

| 1.                   | Warranty                Deed from Steve and Lorraine Franzoy to Duke Energy Luna, LLC dated                April 9, 2002, filed at Reception Number 2002-01826 in the Real                Property Records of Luna County, New                Mexico |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.                   | General                Warranty Deed from Donald R. and Lila M. Gardner to Duke Energy Luna,                LLC                dated February 15, 2002 filed at Reception Number 2002-00897 in the                Real                Property Records of Luna County, New                Mexico |
|------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.                   | Special                Warranty Deed from Forrest H. Hill to Duke Energy Luna, LLC dated                October                17, 2001 filed in the State of New Mexico, County of Luna Reception                Number                2001-05183 |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.                   | Warranty                Deed from Hurt Cattle Company, Inc. to Duke Energy Luna, LLC dated                October                4, 2001 filed at Reception Number 2001-04909 in the Real Property                Records                of Luna County, New Mexico |
|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.                   | General                Warranty Deed from James W. and Juanita H. Lang to Duke Energy Luna,                LLC                dated June 6, 2002 at Reception No. 2002-02852 in the Real Property                Records of Luna County, New Mexico |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.                   | Warranty                Deed from Bert W. Timmons to Duke Energy Luna, LLC dated January                23, 2002                filed at Reception No. 2002-00424 in the Real Property Records of                Luna                County, New Mexico |
|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.                   | Special                Warranty Deed from Ward T. Bell to Duke Energy Luna, LLC dated March                12,                2002 field at Reception No. 2002-01440 in the Real Property Records                of                Luna County, New Mexico |
|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.      | Warranty                Deed from Owen W. and Elizabeth A. Barker to Duke Energy Luna, LLC                dated                October 5, 2001 filed at Reception No. 2001-04919 in the Real Property                Records of Luna County, New Mexico |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.      | Special                Warranty Deed from Shelby C. Phillips, III to Duke Energy Luna, LLC                dated                October 30, 2001 filed in State of New Mexico, County of Luna Reception                Number 2001-05532 |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.     | Warranty                Deed from Kent and Vivian Nicoll to Duke Energy Luna, LLC dated January                7,                2002 filed at Reception No. 2002-00087 in the Real Property Records                of                Luna County, New Mexico |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.     | General                Warranty Deed from J. Arza Nicoll to Duke Energy Luna, LLC dated                January                18, 2002 filed in the State of New Mexico, County of Luna Reception                Number                2002-00319 |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.     | Correction                Warranty Deed from Paul I. and Brenda L. Offutt to Duke Energy Luna,                LLC                dated May 31, 2002 filed at Reception Number 2002-02693 in the Real                Property Records of Luna County, New                Mexico |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.                  | Special                Warranty Deed from Olin J. and Ruth J. Offutt as Trustees of the                Olin J.                Offutt and Ruth Offutt Revocable Trust dated November 1, 1995 to                Duke                Energy Luna, LLC dated November 16, 2001 filed at Reception No. 2002-00284                in the Real Property Records of Luna County, New                Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.                  | General                Warranty Deed from Edmund E. and Alice Ogaz to Duke Energy Luna,                LLC dated                April 24, 2002 filed at Reception No. 2002-02076 in the Real Property                Records of Luna County, New Mexico |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.                  | General                Warranty Deed from Gilbert J. and Catherine C. Cramer Revocable Trust                to                Duke Energy Luna, LLC dated January 17, 2002 filed at Reception No.                2002-00285 in the Real Property Records of Luna County, New                Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.                  | Special                Warranty Deed from Ruben V. and Antonia P. Diaz to Duke Energy Luna,                LLC                dated March 1, 2002 filed at Reception No. 2002-01169 in the Real                Property                Records of Luna County, New Mexico |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  17.                  | General                Warranty Deed from Louisa B. Valdespino to Duke Energy Luna, LLC                dated                January 24, 2002 filed at Reception No. 2002-00413 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.                  | Special                Warranty Deed from Raymond and Carol L. Viramontes to Duke Energy                Luna,                LLC dated November 15, 2001 filed at Reception Number 2001-05740                in the                Real Property Records of Luna County, New                Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.                  | Special                Warranty Deed from Bobby D. and Barbara June Waldrop to Duke Energy                Luna,                LLC dated May 29, 2002 filed at Reception No. 2002-02658 in the Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.                  | Special                Warranty Deed from Bobby D. and Barbara June Waldrop to Duke Energy,                LLC                dated October 29, 2001 filed in the State of New Mexico, County of                Luna                Reception Number 2001-05293 |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.                  | Change                of Ownership of Water Right of No. M-1730 from Steve and Lorraine                Franzoy                to Duke Energy Luna, LLC filed at Reception No. 2002-06403 in the                Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.                  | Change                of Ownership of Water Right No. M-526-A from Forrest H. Hill to Duke                Energy Luna, LLC filed at Reception No. 2002-06364 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.                  | Water                Rights Warranty Deed from Hurt Cattle Company, Inc. to Duke Energy                Luna,                LLC dated July 12, 2002 filed at Reception number 2002-03584 in the                Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.     | Change                of Ownership of Water Right No. M-448 et al, from Hurt Cattle Company                to                Duke Energy Luna, LLC filed at Reception No. 2002-06500 in the Real                Property Records of Luna County, New                Mexico |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.                  | Change                of Ownership of Water Right No. M-253 from James W. and Juanita H.                Lang to                Duke Energy Luna, LLC |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.                  | Change                of Ownership of Water Right No. M-545 from Bert W. Timmons to Duke                Energy                Luna, LLC filed at Reception No. 2002-06352 in the Real Property                Records                of Luna County, New Mexico |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.                  | Change                of Ownership of Water Right No. M-480 from Ward T. Bell and Linda                M. Bell                to Duke Energy Luna, LLC filed at Reception No. 2002-06501 in the                Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28.                  | Change                of Ownership of Water Right No. M-460, et al. from Owen W. Barker                and                Elizabeth A. Barker to Duke Energy Luna, LLC filed at Reception No.                2002-06518 in the Real Property Records of Luna County, New                Mexico |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  29.                  | Change                of Ownership of Water Right No. M-1715 from Shelby C. Phillips, III                to                Duke Energy Luna, LLC filed at Reception No. 2002-06505 in the Real                Property Records of Luna County, New                Mexico |
|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  30.                  | Change                of Ownership of Water Right No. M-456 from Shelby C. Phillips, III                to Duke                Energy Luna, LLC filed at Reception No. 2002-06504 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.                  | Change                of Ownership of Water Right No. M-455 from Shelby C. Phillips, III                to Duke                Energy Luna, LLC filed at Reception No. 2002-06503 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.                  | Change                of Ownership of Water Right No. M-454 from Shelby C. Phillips, III                to Duke                Energy Luna, LLC filed at Reception No. 2002-06502 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.                  | Change                of Ownership of Water Right No. M-531 from Joseph K. Nicoll to Duke                Energy                Luna, LLC filed at Reception No. 2002-06354 in the Real Property                Records                of Luna County, New Mexico |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.                  | Change                of Ownership of Water Right No. M-532 from Joseph K. Nicoll to Duke                Energy                Luna, LLC filed at Reception No. 2002-06353 in the Real Property                Records                of Luna County, New Mexico |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.                  | Change                of Ownership of Water Right No. M-527 from J. Arza Nicoll to Duke                Energy                Luna, LLC filed at Reception No. 2002-06404 in the Real Property                Records                of Luna County, New Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 36.                  | Change                of Ownership of Water Right No. M-483 from Olin J. Offutt to Duke                Energy                Luna, LLC filed at Reception No. 2002-06507 in the Real Property                Records                of Luna County, New Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 37.                  | Change                of Ownership of Water Right No. M-493 from Edmund E. Ogaz to Duke                Energy                Luna, LLC filed at Reception No. 2002-06499 in the Real Property                Records                of Luna County, New Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 38.                  | Change                of Ownership of Water Right No. M-526 from Gilbert T. Cramer to Duke                Energy Luna, LLC filed at Reception No. 2002-06401 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 39.                  | Change                of Ownership of Water Right No. M-442 et al. from Ruben V. and Antonia                P.                Diaz to Duke Energy Luna, LLC filed at Reception No. 2002-06399 in                the                Real Property Records of Luna County, New                Mexico |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 40.                  | Change                of Ownership of Water Rights No. M-533 (M-534) from Louisa B. Valdespino                to Duke Energy Luna, LLC filed at Reception No. 2002-06355 in the                Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 41.                  | Change                of Ownership of Water Right No. M1649 from Raymond and Carol L. Viramontes                to Duke Energy Luna, LLC filed at Reception No. 2002-06517 in the                Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 42.                  | Change                of Ownership of Water Right No. M-478 from Raymond and Carol Viramontes                to                Duke Energy Luna, LLC filed at Reception No. 2002-06356 in the Real                Property Records of Luna County, New                Mexico |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 43.                  | Change                of Ownership of Water Right No. M-462-A from Bobby D. and Barbara                J.                Waldrop to Duke Energy Luna, LLC filed at Reception No. 2002-06506                in the                Real Property Records of Luna County, New                Mexico |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 44.                  | Change                of Ownership of Water Right No. M-480-A from Bobby D. and Barbara                J.                Waldrop to Duke Energy Luna, LLC filed at Reception No. 2002-06510                in the                Real Property Records of Luna County, New                Mexico |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 45.                  | Letter                dated September 24, 2002 from Modrall Sperling (Counsel for Duke                Energy                Luna, LLC) to the New Mexico State Engineer Office withdrawing Application                to Change Place and Purpose of Use of Underground Water No.                M-496 |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 46.                  | Change                of Ownership of Water Rights from Donald L. and Lila M. Garner to                Duke                Energy Luna, LLC filed at Reception No. 2002-06402 in the Real Property                Records of Luna County, New Mexico |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 47.                  | The                permits set forth in items 13-40 on Schedule                1B. |
|-------------------------------------|------------------------------------------------------------------------------------|

----

**Schedule      1B**

**Unexpired      Permits**

| 1.                   | Order                  of the New Mexico Public Regulation Commission dated October 27,                  2000                  accepting the Stipulation prepared by Duke Energy Luna, LLC, the                  Staff of                  the Utility Division of the New Mexico Public Regulation Commission,                  the                  New Mexico Industrial Energy Consumers, and Public Service Company                  of New                  Mexico, submitted to the New Mexico Public Regulation Commission                  on                  October 17, 2000 |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.                     | Final                    Order of the New Mexico Public Regulation Commission dated March                    27, 2001                    approving the siting and location of the Luna Energy Facility                    and                    associated 3,200 feet of 345 kV connecting transmission                    line |
|----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.                 | Prevention                of Significant Deterioration Permit No. PSD-NM-2450-M1, issued on                June 11,                2002, which replaced Permit No. PSD-NM-2450 issued December 29, 2000,                from                the State of New Mexico Environment Department Air Quality Bureau |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.                 | Prevention                of Significant Deterioration Permit No. PSD-NM-2450-M1 issued June                11,                2002 from the State of New Mexico Environment Department Air Quality                Bureau |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.                 | Administrative                Permit Revision to Prevention of Significant Deterioration Permit                No.                PSD-NM-2450-M1 issued May 29, 2003 from the State of New Mexico                Environment Department Air Quality                Bureau |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.                 | Acid                Rain Permit No. P209A issued to Duke Energy Luna, LLC by the State                of New                Mexico Environment Department Air Quality Bureau dated January 24,                2001 |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.                 | Permit                No. 4844 to Construct a Dam (for evaporation ponds) issued to Duke                Energy                Luna, LLC by the State of New Mexico Office of the State Engineer                on                January 23, 2002 |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.                 | Certificate                of Construction and Operation and Proof of Completion (for OSE File                No.                4844) issued February 12, 2004 by the State of New Mexico Office                of the                State Engineer (for the evaporation                ponds) |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.                 | Notification                from US EPA dated September 15, 2004 issued to Duke Energy Luna,                LLC                acknowledging receipt of Notice of Intent for coverage under the                NPDES                General Permit for Storm Water Discharges from Construction Activity.                Coverage under the permit for the plant site began on December 22,                2003. |
|------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.                 | Undated                letter from the New Mexico Environment Department Hazardous Waste                Bureau                acknowledging receipt of RCRA Notification of Regulated Waste Activity                and                issuing EPA ID Number NMR000006338 to Duke Energy Luna,                LLC |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.                 | Discharge                Plan Approval issued by the State of New Mexico Environment Department                to                Duke Energy Luna, LLC dated February 22,                2001 |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.                 | Determination                of No Hazard to Air Navigation issued to Duke Energy Luna, LLC by                the                Federal Aviation Administration dated April 12, 2001 (Transmission                towers                or plant stacks in existing utility corridor) |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.                 | Permit                to Change Place and Purpose of Use of Well M-1730 dated September                23, 2002                issued by the State of New Mexico State Engineer Office. *(Property                conveyed by Franzoy)* |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.                 | Permit                to Change Place and Purpose of Use No. M-526-A dated October 17,                2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Hill)* |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.    | Permit                to Change Location of Well No. M-526-S dated July 10, 2002 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by                Hill)* |
|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.                 | Permit                to Change Place and Purpose of Use of underground waters (File Nos.                M-448,                M-469, M-474) dated February 20, 2001 *as amended by* State                Engineer Order and Revised Permit (File Nos. M-166 and M-167, and                M-448,                M-469 and M-474) dated April 3,                2001 |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-469 dated October 15, 2002 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by Hurt                Cattle Co*.) |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)                 | Permit                to Change Location of Well No. M-469-S-2 dated October 15, 2002 issued                by                the State of New Mexico State Engineer Office (*Property conveyed by                Hurt Cattle Co*.) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.                 | Permit                to Change Place and Purpose of Use No. M-253 dated May 29, 2002 issued                by                the State of New Mexico State Engineer Office *(Property conveyed by                Lang)* |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.                 | Permit                to Change Place and Purpose of Use No. M-545 dated May 29, 2002 issued                by                the State of New Mexico State Engineer Office *(Property conveyed by                Timmons)* |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.                 | Permit                to Change Place and Purpose of Use No. M-480 dated November 28, 2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Bell)* |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.                 | Permit                to Change Location of Well No. M-460-S-2 dated April 8, 2002 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by                Barker)* |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.                 | Permit                to Change Place and Purpose of Use No. M-1715 dated October 17, 2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Phillips)* |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.                 | Permit                to Change Place and Purpose of Use No. M-456 dated October 17, 2001                issued                by the State of New Mexico State Engineer Office *(Property conveyed by                Phillips)* |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-456 dated August 27, 2002 issued                by the                State of New Mexico State Engineer Office (*Property conveyed by                Phillips*.) |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.                 | Permit                to Change Place and Purpose of Use No. M-456-S dated May 28, 2002                issued                by the State of New Mexico State Engineer Office *(Property conveyed by                Phillips)* |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.                 | Permit                to Change Place and Purpose of Use No. M-456-S-2 dated May 9, 2002                issued                by the State of New Mexico State Engineer Office *(Property conveyed by                Phillips)* |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.                 | Permit                to Change Location of Well M-455-S-2 dated May 9, 2002 issued by                the State                of New Mexico State Engineer Office *(Property conveyed by                Phillips)* |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.                 | Permit                to Change Place and Purpose of Use No. M-455 dated October 17, 2001                issued                by the State of New Mexico State Engineer                Office |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.                 | Permit                to Change Place and Purpose of Use No. M-454 dated September 14,                2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Phillips)* |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-454-S dated June 12, 2002 issued                by the                State of New Mexico State Engineer Office (*Property conveyed by                Phillips*) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.                 | Permit                to Change Place and Purpose of Use No. M-531 dated October 17, 2001                issued                by the State of New Mexico State Engineer Office *(Property conveyed by                Kent Nicoll)* |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.                 | Permit                to Change Place and Purpose of Use No. M-532 dated October 17, 2001                issued                by the State of New Mexico State Engineer Office *(Property conveyed by                Kent Nicoll)* |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-532-S dated July 16, 2002 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by Kent                Nicoll*) |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 30.                 | Permit                to Change Location of Well M-527 dated January 10, 2003 issued by                the                State of New Mexico State Engineer Office *(Property conveyed by                Nicoll)* |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.                 | Permit                to Change Location of Well No. M-527-S-2 January 10, 2003 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by J.                Arza Nicoll)* |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.                 | Permit                to Change Place and Purpose of Use No. M-483 dated October 17, 2002                issued                by the State of New Mexico State Engineer Office *(Property conveyed by                Offutt)* |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.                 | Permit                to Change Place and Purpose of Use No. M-526 dated November 28, 2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Cramer)* |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-526-S-4 dated June 12, 2002 issued                by the                State of New Mexico State Engineer Office (*Property conveyed by                Cramer*) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.                 | Permit                to Change Place and Purpose of Use No. M-442 dated May 22, 2002 issued                by                the State of New Mexico State Engineer Officer *(Property conveyed by                Diaz)* |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.                 | Permit                to Change Location of Well No. M-442-S-5 dated October 11, 2002 issued                by                the State of New Mexico State Engineer Office (*Property conveyed by                Diaz*) |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 36.                 | Permit                to Change Place and Purpose of Use No. M-533 (M-534) dated April                10, 2002                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Valdespino)* |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-533 dated June 12, 2002 issued by                the                State of New Mexico State Engineer Office *(Property conveyed by                Valdespino*.) |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 37.                 | Permit                to Change Place and Purpose of Use No. M-1649 dated September 14,                2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Viramontes)* |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 38.                 | Permit                to Change Location of Well No. M-478-S dated July 10, 2002 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by                Viramontes)* |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 39.                 | Permit                to Change Place and Purpose of Use No. M-462-A dated October 17,                2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Waldrop)* |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 40.                 | Permit                to Change Place and Purpose of Use No. M-480-A dated October 17,                2001                issued by the State of New Mexico State Engineer Office *(Property                conveyed by Waldrop)* |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | Permit                to Change Location of Well No. M-480-A dated May 21, 2002 issued                by the                State of New Mexico State Engineer Office *(Property conveyed by                Waldrop*) |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 41.                 | Temporary                Certificate of Occupancy issued to Duke Energy Luna, LLC by the City                of                Deming on September 16, 2004 for the Administration Building |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 42.                 | Temporary                Certificate of Occupancy issued to Duke Energy Luna, LLC by the City                of                Deming on September 16, 2004 for the Warehouse (Storage                Building) |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 43.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved July 1, 2002 (Permit                2002-60) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 44.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved July 1, 2002 (Permit                2002-61) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 45.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved July 1, 2002 (Permit                2002-62) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 46.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved July 1, 2002 (Permit                2002-63) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 47.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-8) |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 48.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-9) |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 49.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-10) |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 50.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-11) |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 51.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-12) |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 52.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-14) |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 53.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-15) |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 54.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-16) |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 55.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved February 10, 2002 (Permit                2002-16A) |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 56.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved March 22, 2002 (Permit                2002-27) |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 57.                 | Application                for Permit to the Use of County Right-of-Way by Utilities and Other                Persons submitted by Duke Energy Luna, LLC to the Luna County Road                Department, approved March 22, 2002 (Permit                2002-28) |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 58.                 | Application                for Driveway Permits submitted by Duke/Fluor Daniel to the Luna County                Road Department, approved July 31,                2001: |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Permanent                  Plant Entrance Road |
|-----------------|------------------------------------------------|

| (b)   | Permanent                  Gas Yard Entrance Road |
|-----------------|---------------------------------------------------|

| (c)   | Temporary                  Construction Road #1 |
|-----------------|-------------------------------------------------|

| (d)   | Temporary                  Construction Road #2 |
|-----------------|-------------------------------------------------|

| (e)   | Temporary                  Construction Road #3 |
|-----------------|-------------------------------------------------|

| 59.                 | Utility                Permit Approvals issued to Duke Energy Luna, LLC by the New Mexico                State                Highway and Transportation Department dated January 13,                2003: |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Permit                  No. 1-01-182, New Mexico Highway 418, Mile Marker                  3.1 |
|-----------------|------------------------------------------------------------------------------------------------|

| (b)   | Permit                  No. 1-01-183, U.S. Highway 180, Mile Marker                  164.6 |
|-----------------|--------------------------------------------------------------------------------------------|

| (c)   | Permit                  No. 1-01-185, Interstate 10, Mile Marker                  79.46 |
|-----------------|-----------------------------------------------------------------------------------------|

----

| (d)   | Permit                  No. 1-02-11, Loop 22 (U.S. Highways 70 and 80), Mile Marker                  2.7 |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (e)   | Permit                  No. 1-02-21, Interstate 10, between Mile Markers 83.63 and                  83.7 |
|-----------------|----------------------------------------------------------------------------------------------------------|

**Expired      Permits**

| 60.                 | Utility                Permit Approvals issued to Duke Energy Luna, LLC by the New Mexico                State                Highway and Transportation                Department: |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Permit                No. 1-02-172, New Mexico Highway 418, Mile Marker 10.3, issued                August                12, 2002 |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Permit                No. 1-02-176, Interstate 10, Mile Marker 78.69, issued August 15,                2002 |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| 61.                 | NPDES                Storm Water Construction Permit issued to Duke Energy Luna, LLC by                the                United States Environmental Protection Agency on September 12, 2001                for                construction on plant site (expired upon issuance of new General                Permit in                July 2003. Coverage obtained under new General Permit, see Item 9                of                Schedule 1B). |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 62.                 | NPDES                Storm Water Construction Permit (Tracking No. NMR10C158) issued to                Duke                Energy Luna, LLC by the United States Environmental Protection Agency                on                December 5, 2001 for construction of water pipeline (terminated on                September 2, 2002) |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 63.                 | NPDES                Storm Water Construction Permit (Tracking No. NMR10C396) issued to                Framatome ANP DE&S by the United States Environmental Protection                Agency for construction at the Deming wastewater treatment plant                (terminated on November 26, 2002) |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 64.                 | Hydrostatic                Test Water Discharge Permit HI-079 issued to Duke Energy Luna, LLC                by the                New Mexico Energy, Minerals and Natural Resources Department on August                14,                2002 (never activated) |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Schedule      1C**

| 1.                 | Long                  Term Service Agreement between General Electric International,                  Inc. and                  Duke Energy Luna, LLC dated June 29,                  2001 |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Global                Amendment to Long Term Service Agreements between Duke Energy Global                Markets, Inc. and General Electric International, Inc. dated December                9,                2002 |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Global                Amendment #2 to Long Term Service Agreements between Duke Energy                Luna, LLC                et al. and General Electric International, Inc. dated March 26, 2004 |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Wastewater                Treatment and Emergency Water Cooperative Agreement between Duke                Energy                Luna, LLC and the City of Deming, New Mexico dated December 12, 2003 |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Electric                Line Extension Agreement (Company-Built System) between Public Service                Company of New Mexico and Duke Energy Luna, LLC dated April 20,                2002 |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Electric                Line Extension Revenue Credit Guarantee Agreement between Public                Service                Company of New Mexico and Duke Energy Luna, LLC dated April 20,                2002 |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Operating                and Maintenance Agreement between El Paso Natural Gas Company and                Duke                Energy Luna, LLC dated June 25, 2002 (to extent still in                effect) |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Letter                Agreement for the Construction, Operation and Ownership of the Deming                Power Plant Delivery Point between El Paso Natural Gas Company and                Duke                Energy Luna, LLC dated June 25, 2002 (to extent still in                effect) |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Letter                Agreement for Provision of Onsite Metering Data Signals at the Deming                Power Plant Delivery Point metering Facilities between El Paso Natural                Gas                Company and Duke Energy Luna, LLC dated June 25, 2002 (to extent                still in                effect) |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Assignment                and Assumption of Certain Rights and Obligations from Duke Energy                North                America, LLC to Duke Energy Luna, LLC dated August 10,                2001 |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Letter                dated March 12, 2002 from Duke Energy North America, LLC to General                Electric Company confirming the assignment of combustion and steam                turbines to Duke Energy Luna, LLC |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.   | Purchase                  Order No. 70923-2-4001 dated October 1, 2001 issued by Duke Energy                  North                  America, LLC to General Electric Company for the purchase of two                  combustion turbines. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | Purchase                  Order #70923-2-4002 dated October 1, 2001 issued by Duke Energy                  North                  America, LLC to General Electric Company for the purchase of one                  steam                  turbine. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.   | Verbal                  agreement with Luna County to allow Duke Energy Luna, LLC to place                  a                  temporary sign along the County Road commonly known as Arrowhead                  Drive. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | Purchase                  orders for leases of trailers and storage                  units. |
|-----------------|---------------------------------------------------------------------------------------------|

| 16.   | Special                  Warranty Deed from City of Deming, New Mexico to Duke Energy Luna,                  LLC,                  dated as of the Closing Date, to be recorded on the Closing Date                  in the                  Real Property Records of Luna County, New Mexico. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | Purchase                  Orders with Pro Force for security services dated December 18,                  2002 and                  December 12, 2003, supplemented by letter dated December 17,                  2002. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.   | Electricity,                  water and other minor utility services                  contracts. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 19.   | New                  Mexico One Call contract (notification to begin                  digging). |
|-----------------|-------------------------------------------------------------------------------------------------|

| 20.   | Engineering,                  Procurement and Construction Agreement for the Luna Energy Facility                  by and                  among PDES, TEP, PNMR Development and Fluor Enterprises, Inc.,                  dated as of                  February 24, 2005. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.   | Luna                  Energy Facility Operation and Maintenance Agreement between PNMR                  Development, TEP, PDES and North American Energy Services Company,                  dated                  as of August 15, 2005. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.   | Construction                  Administration and Funding Agreement between PNMR Development,                  TEP and                  PDES, dated as of October 20, 2005. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.   | Lease                  Agreement between PNMR Development and John Weldy, dated as of                  July 11,                  2005. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 24.   | Letter                  Agreement Establishing Temporary Arrangements regarding Luna Energy                  Facility between PDES, TEP and PNMR Development, dated as of March                  8,                  2005. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.   | Confirmation                  of Customer’s Work Station Configuration Agreement between PNMR                  Development and Open Access Technology International, Inc., dated                  as of                  October 10, 2005. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.   | Ranching                  and Grazing Lease between PNMR Development and Hurt Cattle Company,                  dated                  as of July 11, 2005. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 27.   | Waiver                  and Hold Harmless Agreement between PNMR Development and Justin                  Nicoll,                  dated as of May 26, 2005. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.   | Waiver                  and Hold Harmless Agreement between PNMR Development and Gage Gophers                  Chapter of the 4-H Club, dated as of May 26,                  2005. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.   | Operating                  and Maintenance Agreement between PNMR Development and El Paso                  Natural Gas                  Company, dated as of August 1,                  2005. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.   | License                  Agreement between PNMR Development and El Paso Natural Gas Company,                  dated                  as of August 30, 2005. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.   | Construction                  of Facilities Agreement for the Luna Energy Facility between PNMR                  Development and El Paso Natural Gas Company, dated as of March                  11,                  2005. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.   | Second                  Revised Interconnection Agreement between El Paso Electric Company,                  PNM.                  Texas-New Mexico Power Company, Luna Power Company, LLC, PDES,                  TEP and                  PNMR Development, dated as of August 5,                  2005. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.   | All                  and any other contracts, agreements of every description pertaining                  to the                  Luna Energy Facility, or the construction or operation thereof,                  to which                  PNMR Development is a party. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Schedule      1D**

| 1.   | Two                    (2) General Electric model 7241 combustion turbine generators                    coupled with                    two (2) hydrogen cooled GE 7FH2 generators (CTGs), plus auxiliary                    equipment and systems. The combustion turbines are natural gas                    fuel only                    with a dry low NOx combustion system. The combustion turbine                    and                    auxiliaries are packaged for outdoor installation. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The                    Stellar Group combustion turbine inlet air chiller system. |
|----------------|-----------------------------------------------------------------------------------|

| 3.   | Two                    (2) Erie Power Technology Inc (formerly Aalborg) heat recovery                    steam                    generators (HRSGs) and accessories for each combustion turbine.                    Each HRSG                    is a duct-fired, three-pressure, reheat, natural circulation                    type with                    horizontal gas flow and vertical tubes. Each HRSG has a selective                    catalytic reduction (SCR) system. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Main                    steam system and STG by-pass steam system (for start-up, shut-down                    and                    upset conditions). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | One                    (1) General Electric steam turbine generator (STG) with accessories                    and                    auxiliary systems. The steam turbine is a 3600 rpm, reheat, double                    flow,                    down exhaust type turbine with a hydrogen cooled GE 324                    Generator. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Boiler                    feedwater pumps. |
|----------------|--------------------------------------------|

| 7.   | Condensate                    tank and pumps. |
|----------------|-----------------------------------------------|

| 8.   | Components                    of a natural gas supply system consisting of lateral piping,                    metering                    station parts, pressure regulator, natural gas treatment and                    heating                    equipment, and supply piping to the combustion turbines, duct                    burners, and                    auxiliary users. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Components                    of a boiler feedwater treatment                    system. |
|----------------|------------------------------------------------------------------------------------------|

| 10.   | Boiler                    blowdown equipment and tanks. |
|-----------------|---------------------------------------------------------|

| 11.   | Chemical                    feed equipment for boiler                    feedwater. |
|-----------------|-------------------------------------------------------------------------------------|

| 12.   | Natural                    gas fired auxiliary boiler. |
|-----------------|--------------------------------------------------------|

| 13.   | Red                    Mountain well field water system, including the water production                    wells                    located on the Wellfield Sites listed in Schedule 1A, storage                    tank,                    pumping station with pump house, and well field gathering and                    pumping                    equipment with DCS interface. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.   | Capital                    improvements to the City of Deming’s water treatment plant facilities,                    including but not limited to pond, sand filters and chlorination                    equipment. NOTE: Pursuant to the Wastewater Treatment and Emergency                    Water                    Cooperative Agreement between Duke Energy Luna, LLC and the City                    of                    Deming, New Mexico dated December 12, 2003, title to this system                    vests in                    the City of Deming upon completion of construction and acceptance                    by the                    City of Deming. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | Generator                    electrical equipment including three (3) 345KV main step-up transformers                    and three (3) 18 kV generator circuit breakers and associated                    18 kV                    isolated phase bus ducts. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.   | On-site                    electrical interconnection                    equipment. |
|-----------------|-------------------------------------------------------------------------------------|

| 17.   | Electrical                    system including two (2) unit auxiliary transformers, 4,160V                    switchgear,                    480V switchgear, 4,160V-480V station service transformers, 480V                    MCCs and                    125V AC system. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.   | 120V                    AC uninterruptible power supply (UPS)                    system. |
|-----------------|------------------------------------------------------------------------------------------|

| 19.   | 125                    Volt DC power system. |
|-----------------|----------------------------------------------|

| 20.   | One                    (1) emergency station power diesel                    generator. |
|-----------------|-----------------------------------------------------------------------------------------|

| 21.   | Continuous                    Emission                    Monitoring System (CEMS) for each HRSG                    stack. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| 22.   | Plant                    control system equipment including distributed control system                    (DCS)                    equipment. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 23.   | Plant/instrument                    air system equipment. |
|-----------------|-----------------------------------------------------------|

| 24.   | Plant                    utility systems equipment including components of service water                    system,                    wastewater system, water treatment system, and plant fire protection                    system. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.   | Administration/Main                    Control Room Building |
|-----------------|--------------------------------------------------------------|

| 26.   | Warehouse/Maintenance                    Building |
|-----------------|---------------------------------------------------|

| 27.   | Fire/Pump                    House |
|-----------------|------------------------------------|

| 28.   | Power                    Distribution Centers |
|-----------------|-----------------------------------------------|

| 29.   | Six                    (6) 2001 Kawasaki Mules, Model #KAF300-C5, VIN#s JK1AFBC161B533733,                    JK1AFBC171B529433, JK1AFBC101B533758, JK1AFBC101B533761,                    JK1AFBC161B533716,                    JK1AFBC171B533742 |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.   | 2002                    Ford Explorer VIN                    #1FMDU74W22UB33380 |
|-----------------|---------------------------------------------------------------------------------|

----

| 31.                      | All                    other equipment, parts, systems, materials and other personal                    property not                    specified Items 1-30 which comprise part of or are otherwise                    located on,                    in or under the power plant, the Power Plant Site, the Wellfield                    Sites or                    the Easements. |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|