Document:

First Amended and Restated Interconnection Agreement

 EXHIBIT 10.52-01 
  
 FIRST AMENDED AND RESTATED INTERCONNECTION AGREEMENT 
  
 DATED OCTOBER 9, 2003 
  
 BETWEEN 
  
 EL PASO ELECTRIC COMPANY 
  
 AND 
  
 PUBLIC SERVICE
COMPANY OF NEW MEXICO 
  
 FIRST REVISED SERVICE AGREEMENT
NO. 47 
  
 SUPERSEDING ORIGINAL SERVICE AGREEMENT NO. 47

  
 UNDER EL PASO ELECTRIC COMPANY 
  
 FERC ELECTRIC TARIFF ORIGINAL VOLUME NO. 1 
  
 EFFECTIVE DATE: OCTOBER
            , 2003 

 Table of Contents 
  

							
	 Article I
	  	 DEFINITIONS
	  	1
	 	 	 1.1
	  	 “Abnormal Condition”
	  	2
	 	 	 1.2
	  	 “Affiliate”
	  	2
	 	 	 1.3
	  	 “Afton Switching Station”
	  	2
	 	 	 1.4
	  	 “Agents”
	  	2
	 	 	 1.5
	  	 “Agreement”
	  	2
	 	 	 1.6
	  	 “Applicable Laws and Regulations”
	  	2
	 	 	 1.7
	  	 “Bankruptcy Laws”
	  	2
	 	 	 1.8
	  	 “Breaching Party”
	  	2
	 	 	 1.9
	  	 “Business Day”
	  	2
	 	 	 1.10
	  	 “Commercial Operation Date”
	  	2
	 	 	 1.11
	  	 “Commercially Reasonable Efforts”
	  	2
	 	 	 1.12
	  	 “Confidential Information”
	  	3
	 	 	 1.13
	  	 “Custodian”
	  	3
	 	 	 1.14
	  	 “Due Diligence”
	  	3
	 	 	 1.15
	  	 “Effective Date”
	  	3
	 	 	 1.16
	  	 “Emergency”
	  	3
	 	 	 1.17
	  	 “Environmental Laws”
	  	3
	 	 	 1.18
	  	 “EPE”
	  	3
	 	 	 1.19
	  	 “EPE Control Area”
	  	3
	 	 	 1.20
	  	 “EPE Interconnection Facilities”
	  	4
	 	 	 1.21
	  	 “EPE OATT”
	  	4
	 	 	 1.22
	  	 “EPE’s Palo Verde Facilities
	  	4
	 	 	 1.23
	  	 “EPE Transmission System”
	  	4
	 	 	 1.24
	  	 “Facility”
	  	4
	 	 	 1.25
	  	 “Federal Power Act”
	  	4
	 	 	 1.26
	  	 “FERC”
	  	4
	 	 	 1.27
	  	 “General Orders”
	  	4
	 	 	 1.28
	  	 “Generator”
	  	4
	 	 	 1.29
	  	 “Generator’s Interconnection Facilities”
	  	4
	 	 	 1.30
	  	 “Good Utility Practice”
	  	5
	 	 	 1.31
	  	 “Governmental Authority”
	  	5
	 	 	 1.32
	  	 “Governor Droop”
	  	5
	 	 	 1.33
	  	 “Hazardous Substances”
	  	5
	 	 	 1.34
	  	 “Interconnected Facilities”
	  	5
	 	 	 1.35
	  	 “Interconnection Point”
	  	5
	 	 	 1.36
	  	 “Interconnection Service”
	  	5
	 	 	 1.37
	  	 “Interconnection Studies”
	  	5
	 	 	 1.38
	  	 “Interconnection System Upgrades”
	  	6
	 	 	 1.39
	  	 “Interest Rate”
	  	6
	 	 	 1.40
	  	 “Metering Equipment”
	  	6
	 	 	 1.41
	  	 “NERC”
	  	6
	 	 	 1.42
	  	 “Non-Breaching Party”
	  	6
	 	 	 1.43
	  	 “Operating Agent”
	  	6

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	i	 	 

							
	 	 	 1.44
	  	 “Operating Committee”
	  	6
	 	 	 1.45
	  	 “Operation Date”
	  	6
	 	 	 1.46
	  	 “Participant”
	  	6
	 	 	 1.47
	  	 “Parties”
	  	6
	 	 	 1.48
	  	 “Party”
	  	6
	 	 	 1.49
	  	 “Person”
	  	6
	 	 	 1.50
	  	 “Power System Stabilizer (PSS)”
	  	6
	 	 	 1.51
	  	 “Protective Equipment”
	  	7
	 	 	 1.52
	  	 “Regional Transmission Organization” or “RTO”
	  	7
	 	 	 1.53
	  	 “Release”
	  	7
	 	 	 1.54
	  	 “Reliability Management System” or “RMS”
	  	7
	 	 	 1.55
	  	 “Security Coordinator”
	  	7
	 	 	 1.56
	  	 “SOCC”
	  	7
	 	 	 1.57
	  	 “Termination Costs”
	  	7
	 	 	 1.58
	  	 “Transmission Service Agreement”
	  	7
	 	 	 1.59
	  	 “WSCC”
	  	7
	 	 	 1.60
	  	 “WSCC Agreement”
	  	7
	 	 	 1.61
	  	 “WSCC Reliability Criteria Agreement”
	  	7
	 Article II
	  	 TERM
	  	8
	 	 	 2.1
	  	 Effectiveness of this Agreement
	  	8
	 	 	 2.2
	  	 FERC Filing
	  	8
	 	 	 2.3
	  	 Term
	  	8
	 	 	 2.4
	  	 Material Adverse Change
	  	9
	 	 	 2.5
	  	 Survival
	  	9
	 Article III
	  	 CONTINUING OBLIGATIONS AND RESPONSIBILITIES
	  	9
	 	 	 3.1
	  	 Interconnection Service Provided
	  	9
	 	 	 3.2
	  	 Scope of Interconnection Service
	  	9
	 	 	 3.3
	  	 Services Outside Scope of Agreement
	  	10
	 	 	 3.4
	  	 No Guarantees; Release
	  	10
	 	 	 3.5
	  	 Reporting Requirements
	  	11
	 	 	 3.6
	  	 Third Party Activity
	  	11
	 	 	 3.7
	  	 Compliance with EPE OATT and FERC Orders No. 888 and No. 889
	  	11
	 Article IV
	  	 OPERATING COMMITTEE
	  	11
	 	 	 4.1
	  	 Operating Committee
	  	11
	 	 	 4.2
	  	 Responsibilities of the Operating Committee
	  	12
	 	 	 4.3
	  	 Effectiveness of Operating Committee Determinations
	  	12
	 Article V
	  	 FACILITY INTERCONNECTION
	  	12
	 	 	 5.1
	  	 Establishment of Interconnection
	  	12
	 	 	 5.2
	  	 Necessary Easements, Permits, Licenses, Etc
	  	12
	 	 	 5.3
	  	 Design and Construction of Generator’s Interconnection Facilities
	  	13
	 	 	 5.4
	  	Design and Construction of EPE Interconnection Facilities and Interconnection System Upgrades and Transmission Credits	  	13
	 	 	 5.5
	  	 Subcontractors
	  	15
	 	 	 5.6
	  	 Rights of Access
	  	15
	 	 	 5.7
	  	 Course and Completion of Construction
	  	16
	 	 	 5.8
	  	 Timely Completion
	  	17

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	ii	 	 

							
	 	 	5.9	  	 Environmental Compliance and Procedures
	  	17
	 	 	5.10	  	 Generator Modeling Data
	  	18
	 	 	5.11	  	 Equipment Requirements
	  	18
	 	 	5.12	  	 Required Diagrams
	  	18
	 	 	5.13	  	 Required Personnel Information
	  	18
	 	 	5.14	  	 Use of Afton Switching Station by Third Parties
	  	18
	 	 	5.15	  	 Interconnected Facilities and Facility Additions, Modifications or Replacements
	  	19
	 Article VI
	  	 ACCEPTANCE AND PERFORMANCE TESTING AND COMPLIANCE MONITORING
	  	20
	 	 	6.1	  	 Responsibility for Testing
	  	20
	 	 	6.2	  	 Responsibility for Modifications Following Testing
	  	21
	 	 	6.3	  	 Documentation of Results to EPE or the Operating Agent
	  	21
	 	 	6.4	  	 Facility Certification
	  	21
	 	 	6.5	  	 Transmission Service During Testing
	  	21
	 	 	6.6	  	 EPE Inspection Rights
	  	22
	 	 	6.7	  	 Generator Inspection Rights
	  	22
	 	 	6.8	  	 EPE’s Reviews, Inspections, and Approvals
	  	22
	 Article VIII
	  	 INTERCONNECTION FACILITY COSTS AND BILLING
	  	22
	 	 	7.1	  	 Interconnection Construction Completion and Cost
	  	22
	 	 	7.2	  	 Invoices and Payments
	  	23
	 	 	7.3	  	 Adjustments
	  	26
	 	 	7.4	  	 Payment Not a Waiver
	  	26
	 	 	7.5	  	 Income Taxes
	  	26
	 Article VIII
	  	 OPERATIONS
	  	27
	 	 	8.1	  	 General
	  	27
	 	 	8.2	  	 Obligations of Operating Agent
	  	27
	 	 	8.3	  	 Obligations of Generator
	  	27
	 	 	8.4	  	 Reliability Criteria
	  	28
	 	 	8.5	  	 Quality of Power
	  	28
	 	 	8.6	  	 Protection and System Quality
	  	29
	 	 	8.7	  	 Adjustments
	  	29
	 	 	8.8	  	 Switching and Tagging Procedures
	  	29
	 	 	8.9	  	 General Orders
	  	30
	 	 	8.10	  	 Generation Alert
	  	30
	 Article IX
	  	 RELIABILITY MANAGEMENT SYSTEM
	  	30
	 	 	9.1	  	 Purpose
	  	30
	 	 	9.2	  	 Compliance
	  	31
	 	 	9.3	  	 Participant Status
	  	31
	 	 	9.4	  	 Payment of Sanctions
	  	31
	 	 	9.5	  	 Transfer of Control or Sale of Facility
	  	31
	 	 	9.6	  	 Failure to Comply with RMS
	  	31
	 	 	9.7	  	 Publication
	  	31
	 	 	9.8	  	 Third Parties
	  	31
	 	 	9.9	  	 Reserved Rights
	  	32
	 	 	9.10	  	 Termination
	  	32

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	iii	 	 

							
	 	 	 9.11
	  	 Mutual Agreement
	  	32
	 	 	 9.12
	  	 Severability
	  	32
	 Article X
	  	 REACTIVE POWER
	  	32
	 	 	 10.1
	  	 Obligation to Supply Reactive Power
	  	32
	 	 	 10.2
	  	 Compensation
	  	33
	 	 	 10.3
	  	 Reactive Power Standards
	  	33
	 	 	 10.4
	  	 Failure to Supply Reactive Power
	  	33
	 Article XI
	  	 OUTAGES, INTERRUPTIONS, AND DISCONNECTIONS
	  	34
	 	 	 11.1
	  	 Outage Scheduling
	  	34
	 	 	 11.2
	  	 Scheduled Maintenance and Coordination
	  	34
	 	 	 11.3
	  	 Other Maintenance and Coordination
	  	34
	 	 	 11.4
	  	 Unplanned Outages
	  	34
	 	 	 11.5
	  	 Disconnection
	  	34
	 	 	 11.6
	  	 Continuity of Service
	  	35
	 Article XII
	  	 EMERGENCY AND ABNORMAL CONDITION PROCEDURES
	  	35
	 	 	 12.1
	  	 Emergency
	  	35
	 	 	 12.2
	  	 Notice of Emergency
	  	36
	 	 	 12.3
	  	 Immediate Action
	  	36
	 	 	 12.4
	  	 Disconnection of Facility in Event of Potential Emergency
	  	36
	 	 	 12.5
	  	 Audit Rights
	  	37
	 	 	 12.6
	  	 Abnormal Conditions
	  	37
	 Article XIII
	  	 MAINTENANCE
	  	38
	 	 	 13.1
	  	 The Operating Agent Obligations
	  	38
	 	 	 13.2
	  	 Generator Obligations
	  	38
	 	 	 13.3
	  	 Maintenance Expenses
	  	38
	 	 	 13.4
	  	 Coordination
	  	38
	 	 	 13.5
	  	 Observation of Deficiencies
	  	38
	 	 	 13.6
	  	 Review of Maintenance Records
	  	39
	 Article XIV
	  	 METERING
	  	39
	 	 	 14.1
	  	 General
	  	39
	 	 	 14.2
	  	 Testing
	  	39
	 	 	 14.3
	  	 Data Metered
	  	39
	 	 	 14.4
	  	 Data Available Upon Request
	  	40
	 	 	 14.5
	  	 Costs
	  	40
	 Article XV
	  	 SAFETY
	  	40
	 	 	 15.1
	  	 General
	  	40
	 	 	 15.2
	  	 Environmental Releases
	  	40
	 	 	 15.3
	  	 Other Environmental Impact
	  	40
	 Article XVI
	  	 COMMUNICATIONS
	  	40
	 	 	 16.1
	  	 Equipment
	  	40
	 	 	 16.2
	  	 Remote Terminal Unit
	  	41
	 Article XVII
	  	 INFORMATION REPORTING
	  	41
	 	 	 17.1
	  	 General
	  	41
	 	 	 17.2
	  	 Compliance Monitoring Reporting
	  	41
	 	 	 17.3
	  	 Regulatory Agency Reporting
	  	41
	 	 	 17.4
	  	 Penalties
	  	41

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	iv	 	 

							
	 Article XVIII
	  	 DOCUMENTATION
	  	42
	 	 	18.1	  	 General
	  	42
	 	 	18.2	  	 Drawings
	  	42
	 Article XIX
	  	 FORCE MAJEURE
	  	42
	 	 	19.1	  	 Definition
	  	42
	 	 	19.2	  	 Performance Excused
	  	43
	 	 	19.3	  	 Labor Issues
	  	43
	 	 	19.4	  	 Payment Not Excused
	  	43
	 Article XX
	  	 INDEMNIFICATION
	  	43
	 	 	20.1	  	 INTERCONNECTION INDEMNITY
	  	43
	 	 	20.2	  	 RECIPROCAL INDEMNITY
	  	43
	 	 	20.3	  	 DAMAGE DISCLAIMER
	  	44
	 	 	20.4	  	 Indemnities Reformed
	  	44
	 	 	20.5	  	 Indemnification Procedures
	  	44
	 	 	20.6	  	 Additional Indemnification Provisions
	  	45
	 	 	20.7	  	 Survival
	  	45
	 Article XXI
	  	 INSURANCE
	  	45
	 	 	21.1	  	 Generator
	  	45
	 	 	21.2	  	 EPE or Operating Agent
	  	45
	 	 	21.3	  	 Notice of Cancellation
	  	46
	 	 	21.4	  	 Self-Insurance
	  	46
	 Article XXII
	  	 DEFAULT
	  	46
	 	 	22.1	  	 General
	  	46
	 	 	22.2	  	 Events Constituting Breach
	  	46
	 	 	22.3	  	 Notice by Breaching Party
	  	47
	 	 	22.4	  	 Cure and Default
	  	47
	 	 	22.5	  	 Continued Operations
	  	47
	 	 	22.6	  	 Upon Default
	  	48
	 	 	22.7	  	 Generator’s Default in Payment for Equipment
	  	48
	 Article XXIII
	  	 TERMINATION
	  	48
	 	 	23.1	  	 Expiration of Term
	  	48
	 	 	23.2	  	 Termination in the Event of Default
	  	48
	 	 	23.3	  	 Survival
	  	48
	 	 	23.4	  	 Disconnection and Disposition of Facilities Upon Termination
	  	49
	 Article XXIV
	  	 CREDITWORTHINESS
	  	49
	 Article XXV
	  	 RELATIONSHIP OF THE PARTIES
	  	49
	 Article XXVI
	  	 REPRESENTATIONS AND WARRANTIES
	  	49
	 	 	26.1	  	 Representations of EPE
	  	49
	 	 	26.2	  	 Representations of Generator
	  	50
	 	 	26.3	  	 Representations of Each Party
	  	51
	 Article XXVII
	  	 ASSIGNMENT
	  	51
	 	 	27.1	  	 General
	  	51
	 	 	27.2	  	 EPE
	  	51
	 	 	27.3	  	 Generator
	  	51
	 	 	27.4	  	 No Relief in Event of Assignment
	  	51
	 Article XXVII
	  	 CONFIDENTIALITY
	  	51

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	v	 	 

							
	 	 	 28.1
	  	 General
	  	51
	 	 	 28.2
	  	 Scope
	  	52
	 	 	 28.3
	  	 Rights in Confidential Information
	  	52
	 	 	 28.4
	  	 Standard of Care
	  	52
	 	 	 28.5
	  	 Required Disclosures
	  	52
	 	 	 28.6
	  	 Possession of Confidential Information at Termination of Agreement
	  	52
	 	 	 28.7
	  	 Remedies Regarding Confidentiality
	  	52
	 Article XXIX
	  	 DISPUTE RESOLUTION
	  	53
	 	 	 29.1
	  	 Dispute Resolution by Operating Committee
	  	53
	 	 	 29.2
	  	 Dispute Resolution by Senior Management
	  	53
	 	 	 29.3
	  	 Arbitration
	  	53
	 	 	 29.4
	  	 FERC Jurisdiction Over Certain Disputes
	  	54
	 	 	 29.5
	  	 Continued Performance
	  	55
	 Article XXX
	  	 MISCELLANEOUS
	  	55
	 	 	 30.1
	  	 Partial Invalidity
	  	55
	 	 	 30.2
	  	 Successors Included
	  	55
	 	 	 30.3
	  	 Applicable Laws and Regulations
	  	55
	 	 	 30.4
	  	 Choice of Law and Jurisdiction
	  	55
	 	 	 30.5
	  	 Entire Agreement
	  	55
	 	 	 30.6
	  	 Counterparts to this Agreement
	  	56
	 	 	 30.7
	  	 Amendments
	  	56
	 	 	 30.8
	  	 Amendments Included
	  	56
	 	 	 30.9
	  	 Notices
	  	56
	 	 	 30.10
	  	 Waivers
	  	57
	 	 	 30.11
	  	 No Third Party Beneficiaries
	  	57
	 	 	 30.12
	  	 Further Assurances
	  	57
	 	 	 30.13
	  	 Headings
	  	57
	 	 	 30.14
	  	 Articles
	  	57
	 	 	 30.15
	  	 Number, Gender, and Inclusion
	  	58
	 	 	 30.16
	  	 Good Utility Practice
	  	58
	 	 	 30.17
	  	 Succession Upon Membership in an RTO
	  	58
	 	 	 30.18
	  	 Notification of Change of Operating Agent
	  	58
	 	 	 30.19
	  	 Amended and Restated
	  	58

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	vi	 	 

 FIRST AMENDED AND RESTATED INTERCONNECTION AGREEMENT 
  
 This First Amended and Restated Interconnection Agreement (as defined below,
“Agreement”) is made and entered into as of this 9th day of OCTOBER, 2003, by and between El Paso Electric
Company (“EPE”), a corporation organized under the laws of the State of Texas, and Public Service Company of New Mexico (“Generator”), a corporation organized under the laws of the State of New Mexico. 
  
 W I T N E S S E T H 
  
 WHEREAS, EPE is engaged in the transmission and distribution of electric
energy in the States of New Mexico and Texas; 
  
 WHEREAS, EPE
owns and operates the new Afton Switching Station near Afton, New Mexico and 345 kV transmission lines from the existing EPE Transmission System to Afton Switching Station; 
  
 WHEREAS, EPE and Generator have entered into an Interconnection Agreement on May 23, 2002 (“Interconnection
Agreement”); 
  
 WHEREAS, Generator has constructed, owns and
operates an electric generating facility (as defined below, “Facility”) located near Afton, New Mexico; 
  
 WHEREAS, in accordance with the Interconnection Agreement, Generator has constructed the new Afton Switching Station and 345 kV transmission lines from
Afton Switching Station to EPE’s existing transmission system; 
  
 WHEREAS, in accordance with the Interconnection Agreement, Generator has interconnected the Facility with the EPE Transmission System at the Afton Switching Station; 
  
 WHEREAS, this Agreement does not provide for transmission, distribution or ancillary services and separate arrangements are
required for such services; and 
  
 WHEREAS, EPE and Generator
desire to amend and restate the Interconnection Agreement by allocating the costs of interconnection facilities in accordance with FERC policy as set forth herein. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the Parties agree as follows: 
  
 Article I 
 DEFINITIONS 
  
 For purposes of this Agreement, the following terms shall have the following meanings. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	1	 	 

	1.1	“Abnormal Condition” means any condition at the Facility, on the Interconnected Facilities, on the EPE Transmission System, or on the transmission system of other
utilities which is outside normal operating parameters such that facilities are operating outside their normal ratings or reasonable operating limits have been exceeded and would result in an Emergency if these conditions continue. Any condition or
situation that results from lack of sufficient planned generating capacity to meet load requirements or that results solely from economic conditions shall not, standing alone, constitute an Abnormal Condition. 

  

	1.2	“Affiliate” means, with respect to any Person, any other Person (other than an individual) that, directly or indirectly, through one or more intermediaries,
controls, or is controlled by, or is under common control with, such Person. For this purpose, “control” means the direct or indirect ownership of fifty percent (50%) or more of the outstanding capital stock or other equity interests
having ordinary voting power. 

  

	1.3	“Afton Switching Station” means the 345 kV substation constructed by Generator, and owned and operated by EPE near Afton, New Mexico as depicted in Appendices B and
E. 

  

	1.4	“Agents” means the officers, directors, shareholders, employees or agents acting on behalf of a Party or group of Parties. 

  

	1.5	“Agreement” means this First Amended and Restated Interconnection Agreement between EPE and Generator, including attachments, exhibits, and appendices.

  

	1.6	“Applicable Laws and Regulations” means all applicable federal, state and local laws, codes, ordinances, rules and regulations, and all duly promulgated orders and
other duly authorized actions, as amended from time to time, and whether now existing or hereafter enacted, promulgated, entered or otherwise arising, of any Governmental Authority having jurisdiction over the Parties and/or their respective
facilities. 

  

	1.7	“Bankruptcy Laws” shall have the meaning set forth in Article 22.2(c). 

  

	1.8	“Breaching Party” shall have the meaning set forth in Article 22.2. 

  

	1.9	“Business Day” means any day on which the Federal Reserve member banks are open for business. A Business Day shall commence at 8:00 a.m. and close at 5:00 p.m.,
local time, at the location of the relevant Party’s principal place of business, or at such other location as the context may require. The relevant Party, in each instance unless otherwise specified, shall be the Party to which the notice,
payment, or delivery is being sent and by which the notice, payment, or delivery is being received. 

  

	1.10	“Commercial Operation Date” means the first day on which the Facility generates electric energy, other than test energy, for sale. 

  

	1.11	“Commercially Reasonable Efforts” means efforts by a Party to perform the particular obligation under this Agreement using skills, time and funds which are
customary and reasonable in transactions of the kind and nature contemplated by this Agreement in order for such Party to satisfy such obligation under this Agreement. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	2	 	 

	1.12	“Confidential Information” means any confidential, proprietary, or trade secret information associated with a plan, specification, pattern, procedure, design,
device, list, concept, policy, or compilation relating to the present or planned business of a Party (including all information relating to a Party’s technology, research and development, business affairs and pricing), which is designated as
“Confidential” by the Party supplying the information, whether conveyed orally, in writing, electronically, through inspection, or otherwise prior to or after the Effective Date. Any Confidential Information designated as such by a Party
that is conveyed in writing or electronically must clearly be designated or marked as confidential on the face of the document or electronic transmission. To the extent that the Confidential Information is designated as such by a Party orally or
through inspection, the Party providing such information must inform the Party receiving such information that it is Confidential Information. 

  

	1.13	“Custodian” shall have the meaning set forth in Article 22.2(c). 

  

	1.14	“Due Diligence” means the exercise of good faith efforts to perform a required act on a timely basis and in accordance with Good Utility Practice using the
necessary technical resources and personnel. 

  

	1.15	“Effective Date” means the date set forth in Article 2.1 of this Agreement. 

  

	1.16	“Emergency” means (a) a condition or situation which, in the judgment of the Operating Agent, requires immediate manual or automatic action to prevent (i)
endangerment of life or property, or (ii) loss of firm load, equipment damage, or tripping of system elements that could adversely affect the reliability of the EPE Transmission System or the electrical transmission systems of others to which the
EPE Transmission System is directly or indirectly connected, and which requires that the output of the Facility be adjusted to help avoid or mitigate such condition or situation, and (b) a condition or situation which Generator deems imminently
likely to (i) endanger life or property, or (ii) adversely affect or impair the reliability of the Facility. The conditions or situations described in Articles 1.16(a)(ii) and 1.16(b)(ii) include equipment damage, danger of instability, voltage
collapse or uncontrollable cascading outages. Any condition or situation that results from lack of sufficient planned generating capacity to meet load requirements or that results solely from economic conditions shall not, standing alone, constitute
an Emergency. 

  

	1.17	“Environmental Laws” means federal, state, and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative
orders (and any amendments thereto) relating to pollution or protection of the environment, archaeological or natural resources, or human health and safety, including laws relating to exposures, Releases or threatened Releases of Hazardous
Substances (including Releases or threatened Releases to ambient air, surface water, groundwater, land, surface and subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, Release, transport,
or handling of Hazardous Substances. 

  

	1.18	“EPE” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	1.19	 “EPE Control Area” means the power system where EPE is responsible for matching generation within the control area and net transactions with other
control areas with the prevailing real-time 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	3	 	 

	 	 
electrical load in the control area, for maintaining within limits generally accepted as Good Utility Practice scheduled interchange with neighboring control
areas, and for maintaining frequency within reasonable limits in accordance with Good Utility Practice. 

  

	1.20	“EPE Interconnection Facilities” means all equipment and other facilities, including Protective Equipment and Metering Equipment owned, operated and maintained by
EPE from the Generator’s side of air switch 32485 to the Interconnection Point. The EPE Interconnection Facilities are listed in Appendix B. 

  

	1.21	“EPE OATT” means EPE’s Open Access Transmission Tariff filed with FERC in accordance with FERC’s Order No. 888, and any successor transmission service
tariff thereto, including any such successor tariff of a Regional Transmission Organization to which EPE transfers operating authority over the EPE Transmission System. 

  

	1.22	“EPE’s Palo Verde Facilities” means three 500 kv lines and related facilities, that extend 165 miles in total from the Palo Verde Nuclear Generating Station
near Phoenix, Arizona, with two of the lines extending to the Westwing substation and one extending to the Kyrene substation, all facilities entirely in Arizona. 

  

	1.23	“EPE Transmission System” means all of the facilities owned by EPE, including the Interconnection System Upgrades that are made available for the purpose of
providing transmission service under the EPE OATT. 

  

	1.24	“Facility” means Generator’s electric generating facility with an output of 142 MW (Summer) and 149 MW (Winter) located near Afton, New Mexico, together with
the other property, facilities, and equipment owned and/or operated by Generator up to and including the output terminals of the generator as indicated in Appendix A. 

  

	1.25	“Federal Power Act” means the Federal Power Act, 16 U.S.C. § 791a et seq., as amended from time to time. 

  

	1.26	“FERC” means the Federal Energy Regulatory Commission, or any successor federal agency. 

  

	1.27	“General Orders” means the set of standard operating procedures, as modified from time to time, by which the Operating Agent operates the EPE Transmission System
and which are applicable to generating facilities connected to that transmission system, including, at the Effective Date, the Facility. 

  

	1.28	“Generator” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	1.29	“Generator’s Interconnection Facilities” means all equipment and other facilities, including certain Protective Equipment, owned, operated and maintained by
Generator, from the generator output terminals up to the Generator’s side of air switch 32485 as indicated in Appendices B (Attachment 1) and E, including any modifications, additions, or upgrades made to such facilities, which, in conjunction
with the EPE Interconnection Facilities, are necessary to connect the Facility to the EPE Transmission System at the Afton Switching Station. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	4	 	 

	1.30	“Good Utility Practice” means any of the practices, methods, and acts required, approved, or engaged in by the WSCC, NERC, RTO (if applicable) or a significant
portion of the electric utility industry during the relevant time period, or any of the practices, methods, and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety, and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act; rather, it is
intended to be a spectrum of practices, methods, and acts generally accepted by the electric utility industry in the WSCC region. Good Utility Practice shall include compliance with Applicable Laws and Regulations. 

  

	1.31	“Governmental Authority” means any entity with proper jurisdiction or authority over the Parties and/or their respective facilities, including (i) a federal,
tribal, state, local or municipal governmental body; (ii) a governmental, regulatory or administrative agency, commission, body or other authority exercising or entitled to exercise administrative, executive, judicial, legislative, policy,
regulatory or taxing authority or power; and (iii) a court or governmental tribunal. 

  

	1.32	“Governor Droop” means the governor response characteristic (speed versus output characteristic) defining the decrease in frequency needed to cause generator output
to go from no load to full load. 

  

	1.33	“Hazardous Substances” means (a) any petrochemical or petroleum products, oil, coal ash, radioactive materials, radon gas, asbestos in any form that is or could be
friable, urea formaldehyde foam insulation and transformers or other equipment that contains dielectric fluid that may contain polychlorinated biphenyls; (b) any chemicals, materials, or substances defined as or included in the definition of
“hazardous substances,” “hazardous wastes,” “hazardous materials,” “hazardous constituents,” “restricted hazardous materials,” “extremely hazardous substances,” “toxic
substances,” “contaminants,” “pollutants,” “toxic pollutants,” or words of similar meaning and regulatory effect under any applicable Environmental Law; or (c) any other chemical, material, or substance, exposure
to which is prohibited, limited, or regulated by any applicable Environmental Law. 

  

	1.34	“Interconnected Facilities” means the EPE Interconnection Facilities and the Generator’s Interconnection Facilities. 

  

	1.35	“Interconnection Point” means the point where the EPE Interconnection Facilities attach to the bus bar within the Afton Switching Station as delineated in
Appendices B and E. 

  

	1.36	“Interconnection Service” means the service provided by EPE to interconnect the Facility, via Generator’s Interconnection Facilities, with the EPE Transmission
System. 

  

	1.37	“Interconnection Studies” means the studies performed by or on behalf of EPE pursuant to an interconnection request by Generator which have determined the design,
specifications and cost estimate for the Interconnected Facilities and the Interconnection System Upgrades required to accommodate the interconnection of the Facility. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	5	 	 

	1.38	“Interconnection System Upgrades” means the additions, modifications, and upgrades to the EPE Transmission System, including Protective Equipment and Metering
Equipment, required beyond the Interconnection Point to accommodate the interconnection of the Facility to the EPE Transmission System through the EPE Interconnection Facilities as identified in Appendix B, including any modifications, additions, or
upgrades made to such facilities. 

  

	1.39	“Interest Rate” means the prime interest rate for currency as published from time to time under “Money Rates” by The Wall Street Journal, or its successor
(or, if no longer so published, any substitute mutually agreeable to the Parties), as of the payment due date and/or default date, plus two (2) percent; provided, however, that in no event shall the Interest Rate exceed the maximum interest rate
permitted by Applicable Laws and Regulations. 

  

	1.40	“Metering Equipment” means all metering equipment to be installed at the Facility and at or near the Interconnection Point and Afton Switching Station. Metering
Equipment is identified in Appendices A, B, and D. 

  

	1.41	“NERC” means the North American Electric Reliability Council, or any successor organization. 

  

	1.42	“Non-Breaching Party” shall have the meaning set forth in Article 22.2(g). 

  

	1.43	“Operating Agent” shall mean the entity that operates the EPE Transmission System. On the Effective Date of this Agreement, EPE is the Operating Agent for the EPE
Transmission System. 

  

	1.44	“Operating Committee” shall have the meaning set forth in Article 4.1. 

  

	1.45	“Operation Date” means the day upon which the Interconnected Facilities, Interconnection System Upgrades and Facility have been completed to EPE’s and
Generator’s mutual satisfaction and energized in parallel operation as confirmed in a written notice provided by EPE to Generator, which occurred January 1, 2003. 

  

	1.46	“Participant” has the meaning as stated in Article 9.3. 

  

	1.47	“Parties” means EPE (including in its capacity as Operating Agent) and Generator or the successor or permitted assignee of the rights and obligations of any of the
foregoing under this Agreement. 

  

	1.48	“Party” means one of the Parties. 

  

	1.49	“Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated
association, joint venture or other entity or a government or any political subdivision or agency thereof. 

  

	1.50	“Power System Stabilizer (PSS)” means a control system applied at a generator that monitors variables such as current, voltage and shaft speed and sends the
appropriate control signals to the voltage regulator to damp system oscillations. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	6	 	 

	1.51	“Protective Equipment” means such protective relay systems, locks and seals, breakers, automatic synchronizers, associated communication equipment and other control
schemes and protective apparatus as is reasonably necessary under Good Utility Practice and standards of EPE for the operation of the Facility in parallel with the EPE Transmission System and to permit the facilities of EPE and the Facility to
operate reliably and safely. 

  

	1.52	“Regional Transmission Organization” or “RTO” means an entity approved by FERC to assume responsibility for providing electric transmission services and
certain operational functions in a specific region in accordance with FERC Order No. 2000 or any other Applicable Laws and Regulations (including, but not limited to, other FERC orders). 

  

	1.53	“Release” means any release, spill, leak, discharge, disposal, pumping, pouring, emission, emptying, injection, leaching, dumping, escape into or through the
environment of any Hazardous Substance. 

  

	1.54	“Reliability Management System” or “RMS” means the contractual reliability management program implemented through the WSCC Reliability Criteria Agreement,
Article IX of this Agreement, and any similar contractual arrangement(s). 

  

	1.55	“Security Coordinator” means the entity authorized by the WSCC to have the final authority to direct electric system operations to prevent or remedy problems or
disturbances that have regional impacts. 

  

	1.56	“SOCC” means System Operations Control Center. 

  

	1.57	“Termination Costs” means the costs incurred by or on behalf of EPE upon termination of this Agreement in accordance with Article XXIII in taking one or more of the
following actions: (a) returning or canceling pending orders made by EPE for equipment or facilities required for the interconnection contemplated by this Agreement; (b) removing any portion of the EPE Interconnection Facilities or Interconnection
System Upgrades; and (c) performing such work as may be necessary to ensure the safety of persons and property and to preserve the integrity of the EPE Transmission System. 

  

	1.58	“Transmission Service Agreement” means any transmission service agreements between Generator and EPE, excluding any agreement for transmission service that is
provided over EPE’s Palo Verde Facilities. 

  

	1.59	“WSCC” means the Western Systems Coordinating Council, or any successor organization. 

  

	1.60	“WSCC Agreement” means the Western Systems Coordinating Council Agreement dated March 20, 1967. 

  

	1.61	“WSCC Reliability Criteria Agreement” means the Western Systems Coordinating Council Reliability Criteria Agreement dated June 18, 1999, among the WSCC and certain
members of WSCC. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	7	 	 

 Article II 
  
 TERM 
  

	2.1	Effectiveness of this Agreement. Article 2.2 and the fourth sentence of this Article 2.1 of this Agreement shall become effective upon execution by the Parties. The remaining
provisions of this Agreement shall become effective on the effective date specified by FERC in accepting this Agreement (“Effective Date”) under Section 205 of the Federal Power Act. This Agreement shall supercede the Interconnection
Agreement upon the Effective Date. Notwithstanding the foregoing and with respect to this Agreement, no Party shall take any action which is inconsistent with the terms of this Agreement and Applicable Laws and Regulations during the period between
execution of this Agreement and acceptance by FERC or earlier termination of this Agreement. 

  

	2.2	FERC Filing. 

  
 2.2.1 Within a reasonable time after execution of this Agreement by the Parties, EPE shall file this Agreement with FERC as an amended “Rate
Schedule” within the meaning of Part 35 of FERC’s regulations and with any other Governmental Authority to the extent required by Applicable Laws and Regulations. Each of the Parties shall support this Agreement in its current form at FERC
when filed. Generator shall reasonably cooperate with EPE with respect to obtaining FERC approval of such FERC filing and provide any information, including testimony, reasonably required by EPE to comply with the applicable FERC filing
requirements. 
  
 2.2.2 Promptly upon execution by the Parties of
any amendment to this Agreement, EPE shall, if necessary, file such amendment with FERC and with any other Governmental Authority, to the extent required by Applicable Laws and Regulations. Each of the Parties shall support any such amendment at
FERC when filed. Generator shall reasonably cooperate with EPE with respect to obtaining FERC approval of such FERC filing and provide any information, including testimony, reasonably required by EPE to comply with the applicable FERC filing
requirements. 
  
 2.2.3 If FERC requires conditions to or
modifications of any of the terms, conditions or provisions agreed to herein or in an amendment hereto and: (i) neither Party notifies the other Party in writing within fourteen (14) calendar days following receipt of FERC’s order that the
notifying Party takes exception to FERC’s order, the FERC-ordered modifications and/or conditions shall become part of this Agreement as an amendment or appendix; or (ii) the Party taking exception to FERC’s conditions or modifications
gives fourteen (14) calendar days notice (following receipt of FERC’s order) to the other Party of such exception, then the Parties shall promptly negotiate an amendment to this Agreement acceptable to FERC and providing similar benefit,
rights, or effect to the Parties. Any such amendment shall be effective when accepted for filing by FERC. For purposes of this Article 2.2.3, each Party reserves and may exercise all of its rights under Applicable Laws and Regulations. 

 

	2.3	 Term. This Agreement shall continue in full force and effect until a mutually agreed termination date; provided, however, that such termination date shall be
no later than the date on which the Facility permanently ceases commercial operation; and provided further that this 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	8	 	 

 
Agreement may be terminated earlier (a) upon a Party’s default in accordance with the provisions of Article 23.2 or (b) by the mutual agreement of the
Parties or as explicitly provided elsewhere in this Agreement. Unless no longer required by FERC, any termination of this Agreement permitted hereunder shall not take effect until the filing at FERC of a notice of termination of this Agreement which
notice is accepted for filing by FERC. 
  

	2.4	Material Adverse Change. In the event of a change in law or regulation after the Effective Date that has a material adverse effect, or may reasonably be expected to have a
material adverse effect, on a Party’s ability to perform under this Agreement, the Parties shall negotiate in good faith any amendment or amendments to this Agreement necessary to adapt the terms of this Agreement to such change in law or
regulation. If the Parties are unable to reach agreement on any such amendments within sixty (60) days of the commencement of their negotiations, each Party reserves and may exercise all its rights under Applicable Laws and Regulations.

  

	2.5	Survival. The applicable provisions of this Agreement shall continue in effect after cancellation, expiration, or termination of this Agreement to provide for final billings,
billing adjustments, and the determination and enforcement of liability and indemnification obligations arising from acts or events that occurred while this Agreement was in effect. In addition, upon termination of this Agreement subject to the
terms of Article 23, Generator shall be responsible for any Termination Costs incurred by or on behalf of EPE. 

  
 Article III 
 CONTINUING OBLIGATIONS AND
RESPONSIBILITIES 
  

	3.1	Interconnection Service Provided. EPE shall provide Generator with Interconnection Service for the Facility, as such service is defined in Article 1.36 and described in this
Article III. EPE shall not provide Interconnection Service under this Agreement for any other generating units, wherever located. Any other generating units shall be covered by a separate interconnection agreement or an amendment of this Agreement
as provided for in Article 3.2.3. 

  

	3.2	Scope of Interconnection Service. 

  
 3.2.1 Interconnection Service shall consist of the services necessary to allow the physical interconnection of the Facility pursuant to the terms of this
Agreement. Interconnection Service does not mean and shall not include transmission service, ancillary services, losses, or any other service available under the EPE OATT. Specifically, Interconnection Service shall not include the purchase or sale
of energy or ancillary services to or from the Facility beyond the Interconnection Point, or the delivery of energy or ancillary services from the Facility beyond the Interconnection Point, which services shall be provided separately under the EPE
OATT or by others under separate agreements, as applicable. 
  
 3.2.2 Generator shall be responsible for (a) making arrangements under the EPE OATT for transmission and ancillary services on the EPE Transmission System, and under other applicable tariffs for such services on other transmission
system(s), associated with the injection or delivery of the capacity and/or energy produced by the Facility beyond the Interconnection Point, which services shall not be provided under the terms of this Agreement, (b) obtaining capacity and/or
energy to satisfy its Facility service or other requirements, and (c) making 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	9	 	 

 
arrangements under applicable tariffs for transmission services, losses, and ancillary services associated with the use of the EPE Transmission System for
the injection or delivery of capacity and/or energy to other generating facilities owned by Generator for the purpose of supplying facility service or for any other use. EPE makes no representations to Generator regarding the availability of
transmission service on the EPE Transmission System, and Generator agrees that the availability of such transmission service may not be inferred or implied from this Agreement. Generator must request such transmission service in accordance with the
EPE OATT. 
  
 3.2.3 In the event of an increase in the output of
the Facility or other material change or modification to the configuration and/or operation of the Facility, the Parties shall negotiate appropriate revisions to this Agreement, including, as necessary, the performance by EPE of studies to determine
the effects of such increase or change, and changes to the specifications or requirements set forth in the Appendices to this Agreement, as necessary to permit EPE to provide Interconnection Service to the Facility under this Agreement in a safe,
secure and reliable manner. 
  

	3.3	Services Outside Scope of Agreement. 

  
 3.3.1 This Agreement provides only for interconnection of the Facility with the EPE Transmission System at the Afton Switching Station. Nothing in this
Agreement shall be read as a request by Generator, or a commitment by EPE, to install any facilities other than those necessary to interconnect the Facility with the EPE Transmission System at the Afton Switching Station. 
  
 3.3.2 This Agreement does not obligate any Party to purchase, sell, transmit
or otherwise provide any rights other than Interconnection Service. This Agreement does not obligate any Party to provide, or entitle any Party to receive, any transmission or other service not expressly provided for herein. This Agreement does not
provide a right to inject or transmit energy which right shall be realized through the necessary arrangements for transmission rights and service, including mitigation related to transmission service, if any. Each Party is responsible for making any
arrangements necessary for it to receive any transmission or other service not expressly provided for herein that it may desire from the other Party or any other Person. Notwithstanding any other provision of this Agreement, nothing herein shall be
construed as a relinquishment or foreclosure of any rights to transmission credits to which Generator may be entitled, now or in the future, as a result of, or otherwise, associated with, the transmission capacity, if any, created by the
Interconnection System Upgrades, if any. 
  
 3.3.3 This Agreement
does not provide for the injection, sale or purchase of power or energy from or to the Facility. Upon Generator’s request, construction, back-up, start-up, auxiliary, station, and maintenance power required for the Facility at the Facility site
shall be provided under a separate agreement or any applicable tariff. 
  

	3.4	 No Guarantees; Release. EPE (which, for the purposes of this Article 3.4, shall be deemed to include the Operating Agent) does not warrant against the
occurrence of, and Generator releases EPE from any and all claims or damages associated with: (a) damage to Generator’s Interconnection Facilities or the Facility resulting from electrical transients, or (b) any 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	10	 	 

 
interruption in the availability of the EPE Interconnection Facilities, or any Interconnection System Upgrades, except, in the case of subpart (a) or (b), to
the extent determined to be attributable to the negligence of, willful misconduct of, or default under Article XXII by EPE. Generator does not warrant against the occurrence of, and EPE releases Generator from any and all claims or damages
associated with: (y) damage to the EPE Interconnection Facilities, any Interconnection System Upgrades, or the EPE Transmission System resulting from electrical transients, or (z) any interruption in the availability of Generator’s Facility,
except, in the case of subpart (y) or (z), to the extent determined to be attributable to Generator’s negligence, willful misconduct or default under Article XXII. 
  
 3.5 Reporting Requirements. Each Party shall notify the other Party promptly when it becomes aware of its inability
to comply with the terms and conditions of this Agreement, and provide a sufficient explanation of its inability to comply, including the date, duration, and reasons for its inability to comply, and corrective actions taken; provided that such
notification shall not release such Party from its obligation to comply with this Agreement, except as provided under Article XIX. 
  
 3.6 Third Party Activity. During the term of this Agreement, other Persons may develop, construct or acquire, and operate generating facilities in
EPE’s service territory, and reservations of transmission service by such Persons under the EPE OATT may adversely affect the availability of transmission service for the Facility’s electric output. EPE has no obligation to disclose to
Generator any information regarding such third party activity, except as may be required under the EPE OATT or under this Agreement subject to the provisions of Article 3.7. To the extent that such third party activity has, or EPE reasonably expects
the third party activity to have, a material adverse impact on the operation of the Facility or the Interconnected Facilities, EPE shall, subject to Article 3.7, disclose to Generator such material information as is necessary for Generator to
understand the nature and extent of such adverse impact and the viable remedies. 
  
 3.7 Compliance with EPE OATT and FERC Orders No. 888 and No. 889. Nothing in this Agreement shall be deemed or construed to obligate EPE to provide or make available to Generator any information in violation of
the EPE OATT, FERC Orders No. 888 and No. 889 or any other Applicable Laws and Regulations. 
  
 Article IV 
 OPERATING COMMITTEE 
  
 4.1 Operating Committee. Within fifteen (15) days after the Effective Date, each Party shall designate a primary and
alternate representative to serve on an operating committee (“Operating Committee”), which shall meet periodically to ensure effective cooperation in system planning, to deal promptly with the various operating and technical issues that
may arise during the term of this Agreement, and to attempt to resolve any disputes that may arise under this Agreement, as more specifically described in Article 4.2. Each primary and alternate representative shall be authorized, on behalf of the
designating Party, to act with respect to all matters delegated to the Operating Committee. Each Party shall promptly notify the other Party of the designation of its primary and alternate representatives and of any subsequent changes in such
designations in accordance with Article 30.9. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	11	 	 

	4.2	Responsibilities of the Operating Committee. The Operating Committee shall have the following responsibilities and functions, each of which shall be performed consistent with
the terms and conditions of this Agreement and Good Utility Practice: (a) to establish general policies to be followed in the coordination of the operation and maintenance of the Interconnected Facilities; (b) to establish procedures and standard
practices, consistent with the terms and conditions of this Agreement, for guidance for each Party’s system controllers and other operating personnel regarding the interconnected operations of the Afton Switching Station and the Interconnected
Facilities; (c) to establish detailed procedures to govern in the event of an Emergency; (d) to establish detailed procedures and standard practices for metering, communications, and control facilities; (e) to establish the plan for disconnection of
the Facility at the termination of this Agreement; (f) to establish other procedures and standard practices as may be needed from time to time and to engage in other activities consistent with the terms and conditions of this Agreement, provided
that the Operating Committee shall not have the authority to modify or amend any term or condition of this Agreement; and (g) to attempt to resolve any disputes that may arise under this Agreement in accordance with Article 29.1.

  

	4.3	Effectiveness of Operating Committee Determinations. All determinations made by the Operating Committee, including the establishment of any procedure or standard practice,
within the scope of the Operating Committee’s responsibilities set forth in Article 4.2, shall be effective when signed by one designated representative of each Party and, if necessary, accepted for filing or approved by FERC.

  
 Article V 
 FACILITY INTERCONNECTION 
  

	5.1	Establishment of Interconnection. The Facility constructed by Generator shall be interconnected to the EPE Transmission System at the Afton Switching Station, such
interconnection being further described in Appendices A, B, and E. Appendix E may be revised by mutual written agreement of the Parties. Pursuant to this Agreement, the Parties shall, during the term of this Agreement, continue in service the
existing transmission lines and essential terminal equipment, to the extent required to establish and maintain a reliable interconnection. 

  

	5.2	 Necessary Easements, Permits, Licenses, Etc. Subject to Articles 5.6.1 and 5.6.2, each Party shall diligently pursue all rights, easements, permits,
licenses, certificates and properties necessary to construct, own and maintain its portion of the Interconnected Facilities and the Interconnection System Upgrades. If a Party cannot reasonably acquire all the rights, easements, permits, licenses,
certificates and properties necessary to construct, own and maintain its portion of the Interconnected Facilities and/or Interconnection System Upgrades, the Party shall promptly provide written notice to the other Party indicating its inability.
After such notice, Generator shall have thirty (30) days to authorize EPE to initiate and diligently pursue the following at Generator’s expense: (a) condemnation proceedings, (b) alternate routes, designs, methods or procedures necessary for
the construction, ownership, or maintenance of the Interconnected Facilities and/or Interconnection System Upgrades, or (c) any other appropriate action mutually agreed upon by the Parties. Each Party shall also pursue with Due Diligence and
maintain all necessary governmental approvals, permits, licenses and inspections necessary for its performance of this Agreement. Generator shall also assign to 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	12	 	 

 
EPE, that portion of Generator’s rights under the Bureau of Land Management (“BLM”) Right of Way NMNM102630 (“BLM 102630 R-O-W”) for
the land underlying the Interconnection System Upgrades and the portion of the EPE Interconnection Facilities delineated as TRACT 3 on Appendix F. Contemporaneous with the partial assignment of the BLM 102630 R-O-W, the grants of access pursuant to
Articles 5.6.1 and 5.6.2 shall become effective. All expenses associated with such transfer shall be at Generator’s cost and shall be a part of the cost of Interconnection System Upgrades and delineated in Appendix B. 
  

	5.3	Design and Construction of Generator’s Interconnection Facilities. 

  
 5.3.1 Unless the Parties agree otherwise in writing, Generator shall, at its own expense, design, procure, construct,
install, operate, maintain and repair/replace Generator’s Interconnection Facilities. 
  
 5.3.2 Protective Equipment to be installed by Generator is set forth in Appendix A. This Protective Equipment shall be subject to review and approval by EPE, which approval shall not be unreasonably withheld or
denied. EPE’s review and/or approval shall not be deemed an endorsement of any equipment nor as any warranty as to the fitness, safety, durability or reliability of any equipment. 
  
 5.3.3 Generator shall design, procure, construct and install Generator’s Interconnection Facilities in accordance with
applicable Interconnection Studies and Good Utility Practice. 
  
 5.3.4 At Generator’s expense, Generator’s Interconnection Facilities shall be constructed by Generator or, at Generator’s option, a third party contractor to be selected by Generator. Notwithstanding the foregoing, Generator
understands and agrees that EPE shall be responsible for closing the connection of the EPE Interconnection Facilities and Generator’s Interconnection Facilities. 
  
 5.3.5 Generator shall, at its own expense, operate, maintain and repair/replace Generator’s Interconnection Facilities
in accordance with Articles VIII and XIII. 
  

	5.4	Design and Construction of EPE Interconnection Facilities and Interconnection System Upgrades, and Transmission Credits. 

  
 5.4.1 At Generator’s expense, Generator shall design, procure equipment
for and construct the EPE Interconnection Facilities and the Interconnection System Upgrades required to connect the Facility to the existing EPE Transmission System. 
  
 5.4.2 At Generator’s expense, EPE will review and approve all design, procurement of equipment and construction of the
EPE Interconnection Facilities and Interconnection System Upgrades. EPE’s approval shall not be unreasonably withheld or denied. EPE’s review and/or approval shall not be deemed an endorsement of any design, facility or equipment nor as
any warranty as to the fitness, safety, durability or reliability of any design, facility or equipment. 
  
 5.4.3 At Generator’s expense, EPE shall own, operate, maintain, and repair/replace the EPE Interconnection Facilities. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	13	 	 

 5.4.4 EPE shall own the Interconnection System Upgrades, including Afton Switching Station. After the
Operation Date, EPE shall, at its own expense, operate, maintain and repair/replace Interconnection System Upgrades in accordance with Good Utility Practice. 
  

5.4.5 The cost to design, engineer, procure equipment, and construct the EPE Interconnection Facilities and the Interconnection System Upgrades is set
forth in Appendix B, subject to audit by EPE pursuant to Article 7.1.3 below. 
  
 5.4.6 The schedule for Generator and EPE to perform the design, procurement of equipment, construction and testing is set forth in Appendix C. 
  
 5.4.7 The design, procurement, construction and installation of the EPE Interconnection Facilities and the Interconnection
System Upgrades shall be in accordance with applicable Interconnection Studies and Good Utility Practice. The EPE Interconnection Facilities and Interconnection System Upgrades must be sufficient, as designed and built, to deliver the full Facility
output as defined in Article 1.24 to the Interconnection Point and to enable the Facility to receive capacity necessary to satisfy its operational requirements (not to exceed 10 MW of capacity). 
  
 5.4.8 As of the Effective Date, the Parties agree that the Interconnection
System Upgrades and the EPE Interconnection Facilities have been installed. The costs of the Interconnection System Upgrades and the EPE Interconnection Facilities, subject to audit by EPE pursuant to Article 7.1.3 below, are delineated in Exhibit
B. 
  
 5.4.9 Notwithstanding any other provision of this
Agreement, Generator shall not be responsible for any costs or expenses associated with the design, procurement, construction, installation, testing, operation, maintenance, repair/replacement, or any modifications or upgrades to the EPE
Transmission System that are undertaken in order to prevent, mitigate, or otherwise remedy conditions that existed prior to the establishment of the interconnection of the Facility with the EPE Transmission System at the Afton Switching Station, and
that were required or should have been required in order to prevent, mitigate, or remedy such conditions regardless of, or that otherwise are unrelated to, such interconnection. To the extent that Generator has made payment to EPE for any such costs
and expenses, EPE shall refund to Generator such sums, with interest at the Interest Rate calculated from the date Generator made such payment(s) to the date Generator receives the refund, within thirty (30) days of any determination as to the
appropriate allocation of the costs for such modifications or upgrades. 
  
 5.4.10 Subject to the provisions of this section, EPE shall credit Generator against charges for transmission service under any Transmission Service Agreement in an amount equal to the cost paid by Generator,
including tax gross-up payments made by Generator to EPE in accordance with Article 7.5, for the Interconnection System Upgrades, plus interest calculated at the FERC approved interest rate from the date Generator incurred costs associated with the
construction, engineering and installation of the Interconnection System Upgrades (“Transmission Service Credits”); provided, however, that such credits shall not apply to service under any Transmission Service Agreement under which
transmission service credits or payments are due for transmission service upgrades until the cost of such upgrades has been fully amortized through payments by the Generator. If the amount of any remaining unapplied Transmission 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	14	 	 

 
Service Credits (including those held by Generator’s assignee) that exist five (5) years from the Effective Date is equal to or less than three (3)
million dollars, EPE shall refund such remaining unapplied Transmission Service Credits to Generator within thirty (30) days after reaching such five (5) year period, and no further Transmission Service Credits will be due to Generator or any other
Person. If the amount of any remaining unapplied Transmission Service Credits (including those held by Generator’s assignee) that exists five (5) years after the Effective Date is greater than three (3) million dollars, EPE shall continue to
credit Generator against charges for transmission service under any Transmission Service Agreement until the date the remaining balance of such unapplied Transmission Service Credits is equal to three (3) million dollars. Within thirty (30) days of
such date, EPE shall refund three (3) million dollars to Generator (not to exceed the remaining balance of the unapplied Transmission Service Credits), and no further Transmission Service Credits shall be due to Generator or any other Person.
Generator may assign any portion of the Transmission Service Credits to any Person that purchases the Facility or that purchases power from the Facility. In the event of such assignment, EPE will credit the assignee against charges for transmission
services provided to the assignee with respect to power purchased from the Facility, subject to the limitations set forth above. Such assigned Transmission Service Credits shall reduce the amount of Transmission Service Credits available to the
Generator on a dollar for dollar basis. Without limiting the foregoing, Generator will receive Transmission Service Credits against the charges for transmission service that EPE has invoiced Generator for service with respect to the Facility under
the existing Transmission Service Agreement (filed with the FERC on October 29, 2002 in FERC Docket No. ER03-93-000) from the date such transmission service commenced thereunder until the Effective Date; provided that within thirty (30) days after
the Effective Date, the Parties shall reconcile the amount of Transmission Service Credits to be applied against the charges for transmission service with respect to the Facility during such period. 
  

	5.5	Subcontractors. Nothing in this Agreement shall prevent any Party from using the services of subcontractors as it deems appropriate; provided, however, each Party shall
require such subcontractors to comply with the relevant terms and conditions of this Agreement. The creation of any subcontractor relationship shall not relieve the retaining Party of any of its obligations under this Agreement.

  

	5.6	Rights of Access. 

  
 5.6.1 Prior to the assignment of a portion of the BLM 102630 R-O-W, by Generator to EPE in accordance with Article 5.2, Generator shall provide EPE access
to the Interconnection System Upgrades and the portion of the EPE Interconnection Facilities located within the Facility property boundary to enable EPE to perform required operation and maintenance activities of these facilities in accordance with
Good Utility Practice. Contemporaneous with the assignment of a portion of the BLM 102630 R-O-W, Generator grants EPE at no cost to EPE and the Operating Agent, as applicable, access, easements, or licenses upon, over, under, and across TRACTS 1 and
2 as delineated on Appendix F that are necessary for EPE and the Operating Agent, as applicable, and their Agents and subcontractors to design, procure, construct, install, test, operate, maintain and repair/replace the EPE Interconnection
Facilities and the Interconnection System Upgrades in accordance with the terms of this Agreement. With respect to TRACT 2 both before and after the assignment of a portion of BLM 102630 R-O-W, EPE or Operating Agent shall exercise such access
rights without notification of or supervision by 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	15	 	 

 
Generator. With respect to TRACT 3 before the assignment of a portion of BLM 102630 R-O-W, EPE shall exercise such access rights without notification of or
supervision by Generator, except for the area inside the Afton Switching Station, which area will be subject to the notification requirements in the Afton Generating Plant Operating Procedures. With respect to TRACT 1 both before and after the
assignment of a portion of the BLM 102630 R-O-W EPE or Operating Agent shall exercise such access rights only with supervision by Generator. EPE or Operating Agent shall provide Generator reasonable notice under the circumstances of any request for
such supervised access, and Generator and EPE shall mutually agree upon a date and time of such supervised access and such agreement shall not be unreasonably withheld or delayed. In addition to the aforementioned requirement, in exercising such
supervised access rights, EPE and the Operating Agent, as applicable, shall (a) not unreasonably disrupt or interfere with normal operations of Generator’s business, (b) act in a manner consistent with Good Utility Practice, and (c) adhere to
the safety rules and procedures established by Generator. Generator shall execute such documents as EPE and the Operating Agent, as applicable, may reasonably require to enable EPE or the Operating Agent, as applicable, to establish record evidence
of such access rights. Such access rights shall remain in effect for so long as this Agreement is in effect. 
  
 5.6.2 Contemporaneous with the assignment of a portion of the BLM 102630 R-O-W by Generator to EPE in accordance with Article 5.2, EPE grants, at no cost
to Generator, all access, easements or licenses upon, over, under and across TRACT 3 as delineated on Appendix F that are necessary for Generator and its Agents and subcontractors to design, procure, construct, install, test, operate, maintain and
repair/replace Generator’s Interconnection Facilities, EPE Interconnection Facilities, and Facility, as applicable, in accordance with the terms of this Agreement. Such access rights for Generator’s facilities located inside the Afton
Switching Station shall be exercised by Generator only with supervision by EPE or the Operating Agent, as applicable. Generator shall provide EPE or the Operating Agent, as applicable, reasonable notice under the circumstances of any request for
such supervised access to the Afton Switching Station, and EPE or Operating Agent, as applicable, and Generator shall mutually agree upon the date and time of such supervised access, such agreement not to be unreasonably withheld or delayed. In
addition to the aforementioned requirement, in exercising such access rights, Generator shall (a) not unreasonably disrupt or interfere with normal operations of EPE or the Operating Agent, (b) act in a manner consistent with Good Utility Practice,
and (c) adhere to the safety rules and procedures established by the Operating Agent and EPE. EPE or the Operating Agent, as applicable, shall execute such documents as Generator may reasonably require to enable it to establish record evidence of
such access rights. Such access rights shall remain in effect for so long as this Agreement is in effect. 
  
 5.6.3 Any Party or its subcontractors performing construction, or other work, on the property of the other Party shall be responsible for proper
housekeeping during the period the work is being performed and proper clean-up of the property in a timely fashion after the work is completed. 
  

	5.7	Course and Completion of Construction. 

  
 5.7.1 Generator shall promptly notify EPE in writing when the construction of Generator’s Interconnection Facilities and the EPE Interconnection
Facilities is complete. Likewise, each 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	16	 	 

 
Party shall promptly notify the other Party in writing when the construction of the Interconnection System Upgrades is complete. 
  
 5.7.2 Generator shall keep the Generator’s Interconnection Facilities,
the EPE Interconnection Facilities, Interconnection System Upgrades, and any real or personal property of EPE related to this interconnection project free and clear of all Generator, contractor, subcontractor, supplier or materialmen’s liens,
claims and encumbrances arising out of the construction of the Generator’s Interconnection Facilities, the EPE Interconnection Facilities and Interconnection System Upgrades. Generator shall provide to EPE lien waivers from Generator and all
such contractors, subcontractors, suppliers or materialmen before or upon completion of the Generator’s Interconnection Facilities, the EPE Interconnection Facilities and Interconnection System Upgrades. In the event that any such lien arising
out of the construction of the Generator’s Interconnection Facilities, the EPE Interconnection Facilities and Interconnection System Upgrades shall nevertheless be filed or asserted against the real or personal property of EPE, Generator agrees
to take all steps necessary and proper for the release and discharge of such liens in the manner allowed under New Mexico law. Generator shall indemnify and hold EPE harmless against any and all loss, claims, or suits (including costs and
attorneys’ fees), for any lien claims asserted or filed by any party on or against EPE’s real or personal property relating to the construction of Generator’s Interconnection Facilities, the EPE Interconnection Facilities and the
Interconnection System Upgrades. 
  

	5.8	Timely Completion. 

  
 5.8.1 Generator shall use Commercially Reasonable Efforts to design, procure, construct, install, and test Generator’s Interconnection Facilities and
EPE Interconnection Facilities in accordance with the schedule set forth in Appendix C, which schedule may be revised from time to time by mutual agreement of the Parties. 
  
 5.8.2 Each Party shall use Commercially Reasonable Efforts to design, procure, construct, install, and test the
Interconnection System Upgrades, in accordance with the schedule set forth in Appendix C, which schedule may be revised from time to time by mutual agreement of the Parties. EPE shall, at Generator’s request and expense, take all appropriate
actions to accelerate its work under this Agreement in order to meet the schedule set forth in Appendix C, provided that Generator authorizes such actions and the costs associated therewith in advance and pays such costs in accordance with the
payment schedule mutually agreed upon by the Parties. 
  
 5.8.3
If any of the Interconnection System Upgrades is not reasonably expected to be completed prior to the Commercial Operation Date of the Facility, Generator may, at its option, have operating studies performed at its expense to determine the maximum
allowable output of the Facility, based upon the portion of the Interconnection System Upgrades that is expected to be completed prior to such Commercial Operation Date and, subject to EPE’s standards and Good Utility Practice, Generator will
be permitted to operate the Facility, provided such limited operation of the Facility does not adversely affect the safety and reliability of the EPE Transmission System. 
  

	5.9	 Environmental Compliance and Procedures. The Parties shall comply with (a) all applicable Environmental Laws in meeting all their obligations under this
Agreement; and (b) all local 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	17	 	 

	 	 
notification and response procedures required for all applicable environmental and safety matters which affect the ability of the Parties to meet their
respective obligations under this Agreement. 

  

	5.10	Generator Modeling Data. Generator shall provide the Operating Agent and EPE with such final modeling data of the Facility and Interconnected Facilities that reflect final
Facility unit data and settings of the generation protection and control equipment as is reasonably requested by the Operating Agent and EPE and is necessary for reliable operation of the EPE Transmission System, including (a) the turbine speed/load
controls including the governor; and (b) the excitation system including the automatic voltage regulator, power system stabilizer, over-excitation controls and limits, and other controls and limits. Such modeling data is to be provided in the format
of the computer programs utilized by the Operating Agent and EPE. On the Operation Date, such programs are: Powerflow-General Electric PSLF; Transient Stability-General Electric PSLF; Short Circuit-Aspen One Liner. 

  

	5.11	Equipment Requirements. All equipment shall be of utility grade that meets or exceeds the quality of the equipment as required by EPE. The trip energy source for the
interconnection breaker shall be of a stored energy type (i.e., battery) that will be available under circumstances when the alternating current source is unavailable. Generator shall ensure that Generator’s Interconnection Facilities comply
with all applicable requirements of the National Electrical Safety Code, as amended from time to time, and/or any Applicable Laws and Regulations. 

  

	5.12	Required Diagrams. Generator shall maintain the following equipment at locations approved by the Operating Agent, which approval shall not be unreasonably withheld or denied:
(a) a permanent and weatherproof one-line electrical diagram of the Facility located at the Facility site; and (b) a permanent and weatherproof map of the Facility showing the location of all major equipment. EPE shall maintain, at locations
approved by Generator, which approval shall not be unreasonably withheld or denied, a permanent and weatherproof one-line diagram of the EPE Interconnection Facilities. 

  

	5.13	Required Personnel Information. No later than fifteen (15) Business Days after the Effective Date, Generator shall provide the Operating Agent the names and current telephone
numbers of at least two (2) persons who are authorized to provide access to the Facility and who have authority to make decisions regarding the Facility, Generator’s Interconnection Facilities, and Generator’s operations. Generator shall
keep the names and telephone listings current at all times during the term of this Agreement. 

  

	5.14	Use of Afton Switching Station by Third Parties.  

  
 5.14.1 If required by Applicable Laws and Regulations, or if EPE in its sole discretion allows one or more third parties to use Afton Switching Station,
or any part thereof, and such use decreases the capacity of Afton Switching Station available to the Facility, or otherwise causes any detriment to the Facility or to Generator, or benefits any party (including EPE) other than Generator, then
Generator and such third party (parties) shall negotiate in good faith to determine the appropriate compensation due to Generator as a result of such third party use and to determine the appropriate allocation of the annual carrying charges. EPE
shall include a provision comparable to this Article 5.14.1 in its agreements with third party users providing for 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	18	 	 

 
such third party users to participate in such negotiations. In any case, the Generator shall only be entitled to receive a reduction in charges under this
Agreement equal to the amount of charges allocated to the third party user(s) (with a corresponding reduction in credits against the cost of transmission service in accordance with Article 5.4.10). If the issue of such compensation or allocation
cannot be resolved through such negotiations, it shall be submitted to the FERC for resolution. 
  
 5.14.2 If one or more third parties are to use Afton Switching Station in accordance with this Article 5.14 and the Operating Agent determines that, as a
result, Good Utility Practice requires that modifications be made to the Interconnected Facilities, the Operating Agent must comply with notification and scheduling provisions of Article 5.15. In no event shall Generator be responsible for the costs
of any such modifications. 
  
 5.14.3 If it is determined by the
FERC or any Governmental Authority that any costs associated with the design, engineering, construction, procurement, or installation of any of the EPE Interconnection Facilities or Interconnection System Upgrades paid for by Generator pursuant to
this Agreement are not Generator’s responsibility, EPE shall refund to Generator, no later than sixty (60) days after the determination by FERC or any Governmental Authority, that portion of the costs paid by Generator that are included in the
transmission revenue requirement or were paid by Generator and that have not been reflected in credits, if any, against the cost of transmission service from the Facility, with interest at the Interest Rate. 
  

	5.15	Interconnected Facilities and Facility Additions, Modifications or Replacements. 

  
 5.15.1 EPE Interconnection Facilities and EPE Transmission System. 
  

	 	(a)	Any additions to, modifications to, or replacements of the EPE Interconnection Facilities must be constructed and operated in accordance with Good Utility Practice. If such
additions, modifications, or replacements made after the Operation Date will likely cause a material adverse effect on Generator’s operation of the Facility, the Operating Agent will, except in cases of Emergency, provide a minimum of thirty
(30) days’ advance written notice to Generator prior to undertaking such additions, modifications, or replacements. In the written notice, the Operating Agent must advise Generator when such additions, modifications or replacements are expected
to be made; the time period expected to be required to complete such additions, modifications or replacements; and whether, if known, such additions, modifications or replacements are expected to interrupt or curtail the flow of electricity from the
Facility. The Parties shall mutually agree in advance upon a schedule for such additions, modifications or replacements, such agreement not to be unreasonably withheld or delayed. 

  

	 	(b)	 Unless required by Applicable Laws and Regulations, Generator shall not be responsible for the costs of any additions, modifications, or replacements made to the
EPE Transmission System by EPE, in its sole 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	19	 	 

	 	 
discretion, after the Operation Date in order to facilitate (a) the interconnection of a third party or (b) the provision of transmission service to or for a
third party. Generator shall, however, be responsible for all costs of any additions, modifications, or replacements made to the EPE Transmission System as a result of any additions, modifications, or replacements made by Generator to the Facility.

  

	 	(c)	If any additions, modifications, or replacements to the EPE Interconnection Facilities (other than those caused by additions, modifications, or replacements made by the Generator to
the Facility) cause a material adverse effect on the Generator’s Interconnection Facilities or the interconnection of the Facility (via Generator’s Interconnection Facilities) to the EPE Transmission System at the Afton Switching Station,
EPE shall be responsible, at its sole cost and expense, for all actions necessary to mitigate such effect on the interconnection (“Mitigation Actions”) and, if necessary, to promptly and expeditiously re-establish the connection of the
Facility (via Generator’s Interconnection Facilities) with the EPE Transmission System at the Afton Switching Station, in accordance with Good Utility Practice and/or secure such services as are necessary to deliver the capacity and energy to
the Interconnection Point in accordance with Good Utility Practice (“Reconnection Activities”); provided, however, that, if EPE is required by Applicable Laws and Regulations or the RTO (if applicable) to undertake such additions,
modifications, or replacements, EPE shall not be required to undertake any Mitigation Action or Reconnection Activity. 

  
 5.15.2 Generator’s Interconnection Facilities and Facility. Except for changes deemed by the Operating Agent to be necessary to ensure the protection
and safety of a Party’s personnel and the safety and reliability of a Party’s property, Generator shall not be required to make any modifications to the Facility or Generator’s Interconnection Facilities unless such change is
consistent with Good Utility Practice and required (i) as a result of a change in the Facility or (ii) as a result of a change on the EPE Transmission System which is required by Good Utility Practice. Generator shall not be responsible for the cost
of any such modifications and the cost of operating and maintaining such modifications unless required by Applicable Laws and Regulations or such modifications are required as a result of a change in the Facility made by Generator. 
  
 Article VI 
 ACCEPTANCE AND PERFORMANCE TESTING 
 AND COMPLIANCE MONITORING 
  

	6.1	Responsibility for Testing. 

  
 6.1.1 Prior to the Operation Date, Generator shall perform all testing of the Facility and Generator’s Interconnection Facilities required by the RTO
(if applicable), NERC and WSCC. EPE or the Operating Agent, as applicable, may require Generator to perform additional testing 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	20	 	 

 
whenever EPE or the Operating Agent reasonably determines that such additional testing is required for reliability reasons. All testing shall be successfully
completed before the Operation Date. Testing subsequent to the Operation Date shall be performed in compliance with the frequency requirements of NERC, WSCC, and the RTO (if applicable) and any other reliability requirements of any other
organization/entity with responsibility for electricity and whose requirements Generator is obligated to follow. All such tests shall be performed to the specifications of NERC, WSCC, the RTO (if applicable), or any other specifications required by
new or other reliability organizations with responsibility for electricity and whose requirements Generator is obligated to follow. Generator shall inform EPE or the Operating Agent, as applicable, in advance (whenever possible, a minimum of five
(5) Business Days) when such tests are scheduled to occur, and EPE shall have the right to have representatives observe and monitor such tests. The cost of all such testing shall be borne by Generator. 
  
 6.1.2 Prior to the Operation Date, EPE or the Operating Agent, as
applicable, shall perform all testing of the EPE Interconnection Facilities and the Interconnection System Upgrades required by NERC, WSCC and the RTO (if applicable). All testing shall be successfully completed before the Operation Date. After the
Operation Date, the Operating Agent and EPE shall test their facilities at their own expense (or, in the case of the Operating Agent, the EPE Interconnection Facilities at the expense of EPE) in accordance with Good Utility Practice. Generator shall
have the right, upon five (5) Business Days’ advance written notice to the Operating Agent or EPE to require additional testing of such entity’s facilities, at Generator’s expense, if Generator reasonably believes that such
entity’s facilities are causing a material adverse effect on the operation of the Facility or Generator’s Interconnection Facilities, or as may be otherwise prudent in accordance with Good Utility Practice, and shall have the right to be
present during such tests. 
  

	6.2	Responsibility for Modifications Following Testing. Based upon the pre-operational testing, Generator is responsible for making any modifications necessary to ensure the safe
and reliable operation of Generator’s Interconnection Facilities and the EPE Interconnection Facilities in accordance with Good Utility Practice; EPE is responsible for making any modifications necessary to ensure the safe and reliable
operation of the Interconnection System Upgrades in accordance with Good Utility Practice. The costs of all such modifications are to be borne by Generator, except to the extent the modifications are required as a result of the sole negligence or
willful misconduct of EPE, or any Agent of EPE. 

  

	6.3	Documentation of Results to EPE or the Operating Agent. Generator shall provide EPE or the Operating Agent, as applicable, with necessary documentation of all test results
for all tests performed pursuant to Article 6.1.1. The documentation shall be, at a minimum, that required to conform with any RTO, NERC or WSCC requirements. 

  

	6.4	Facility Certification. Generator shall comply with any facility certification requirements of NERC, WSCC, and the RTO (if applicable). 

  

	6.5	Transmission Service During Testing. Generator has sole responsibility to make necessary arrangements under the EPE OATT to procure any transmission service over the EPE
Transmission System that may be required to accommodate the testing procedures of the Facility. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	21	 	 

	6.6	EPE Inspection Rights. EPE (which, for the purposes of this Article 6.6, shall be deemed to include the Operating Agent) shall have the right, but shall have no obligation or
responsibility, to: (a) observe Generator’s tests and/or inspection of any of Generator’s Protective Equipment; (b) review the settings of Generator’s Protective Equipment; and (c) review Generator’s maintenance records relative
to the Generator’s Protective Equipment. EPE may exercise the foregoing rights from time to time as it deems necessary upon five (5) Business Days’ written notice to Generator. However, the exercise or non-exercise by EPE of any of the
foregoing rights of observation, review or inspection shall be construed neither as an endorsement or confirmation of any aspect, feature, element, or condition of the Facility or Generator’s Protective Equipment or the operation thereof, nor
as a warranty as to the fitness, safety, durability, or reliability of same. 

  

	6.7	Generator Inspection Rights. Generator, upon five (5) Business Days’ advance written notice to the Operating Agent has the right, but not the obligation, to inspect or
observe the operation and maintenance activities, equipment tests, installation, construction, or other modifications to the EPE Interconnection Facilities which could cause a material adverse effect on Generator’s operations. However, the
exercise or non-exercise by Generator of any of the foregoing rights of observation, review or inspection shall be construed neither as an endorsement or confirmation of any aspect, feature, element, or condition of the EPE Interconnection
Facilities or the operation thereof, nor as a warranty as to the fitness, safety, durability, or reliability of same. 

  

	6.8	EPE’s Reviews, Inspections, and Approvals. EPE’s or Operating Agent’s review, inspection, and approval, related to the Generator’s Interconnection
Facilities and EPE’s Interconnection Facilities required under this Agreement shall not be unreasonably withheld or delayed, and will be limited to the purpose of ensuring the safety, reliability, protection and control of the EPE Transmission
System. 

  
 Article VII 
 INTERCONNECTION FACILITY COSTS AND BILLING 
  

	7.1	Interconnection Construction Completion and Cost. 

  
 7.1.1 Notification of Delay. If any event occurs that will materially affect the time for completion of the Interconnection System Upgrades, or the
ability to complete them, the Party responsible for the construction of the affected portion of the Interconnection System Upgrades shall, within five (5) Business Days of its knowledge of any such event, notify the other Party . In such
circumstances, the responsible Party shall, within ten (10) Business Days of notifying the other Party of such an event and corresponding delay, convene a technical meeting with the other Party to evaluate the alternatives available to the other
Party. The responsible Party also shall make available to the other Party all studies and work papers related to the event and corresponding delay, including all information that is in the responsible Party’s possession that is reasonably
needed by the other Party to evaluate alternatives. 
  
 7.1.2
Cost Estimate. Pursuant to Article 5.4.5 and delineated in Exhibit B and subject to audit by EPE pursuant to Article 7.1.3 below, the Parties have established the cost to design, 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	22	 	 

 
engineer, procure equipment, and construct the Interconnection System Upgrades and the EPE Interconnection Facilities. 
  
 7.1.3 Audit of Cost. Each Party shall have the right to receive such cost
information as is reasonably necessary to verify the cost of the Interconnection System Upgrades and the EPE Interconnection Facilities constructed by the other Party and that such cost was incurred in accordance with Good Utility Practice. EPE
shall have the right to receive such cost information as is reasonably necessary to verify the cost of Generator’s activities associated with the Interconnection System Upgrades and the EPE Interconnection Facilities and that such costs were
incurred in accordance with Good Utility Practice. Each Party shall have the right to audit (a) the other Party’s accounts and records pertaining to the Interconnection System Upgrades and the EPE Interconnection Facilities, at the offices
where such accounts and records are maintained, provided at least seven (7) Business Days’ notice is given prior to any audit, and provided further that the audit shall be limited to those portions of such accounts and records that relate to
services provided under this Agreement. Costs incurred or billed pursuant to this Agreement for the design, engineering, procurement of equipment, and construction of the Interconnection System Upgrades and the EPE Interconnection Facilities, and
the review and approval of the EPE Interconnection Facilities shall be subject to audit for a period of one (1) year following the issuance of a final cost invoice (in the case of costs billed by EPE), or a final statement of costs incurred (in the
case of costs incurred by Generator), in accordance with Article 7.2.2. All other costs incurred or billed pursuant to this Agreement shall be subject to audit for a period of one (1) year after the date the bill was rendered. Generator and EPE
shall keep records and data related to all costs billed or incurred under this Agreement for a period equivalent to the audit periods described in this Article 7.1.3. As a result of the audit, adjustments may be made to the costs established in
Exhibit B for the EPE Interconnection Facilities and the Interconnection System Upgrades so that the final audited costs match the costs established in Exhibit B. It shall be the Operating Committee responsibility to reconcile the final audited
costs with the costs established in Exhibit B. 
  

	7.2	Invoices and Payments. 

  
 7.2.1 Monthly Statements. 
  

	 	(a)	 EPE shall render to Generator monthly statements for EPE’s costs for review and approval activities for the EPE Interconnection Facilities, and EPE’s
costs for the Interconnection System Upgrades on the EPE Transmission System by certified mail, facsimile or other acceptable means conforming to the provisions of Article 30.9. Such statements shall set forth in reasonable detail any costs incurred
by or on behalf of EPE or other charges or amounts payable by Generator under the terms of this Agreement for the period covered thereby in connection with the EPE Interconnection Facilities and Interconnection System Upgrades. Generator shall make
payment of the amount shown to be due to EPE by wire transfer to an account specified by EPE not later than the thirtieth (30th) day after receipt of the statement, unless such day is not a Business Day, in which case Generator shall make payment on
the next Business Day. All such payments shall be deemed to be made when 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	23	 	 

	 	 
said wire transfer is received by EPE. Overdue payments shall accrue interest daily at the then-current Interest Rate from the due date of such unpaid amount
until the date paid. 

  

	 	(b)	Consistent with Articles 5.4.3 and 13.1, EPE is responsible for the maintenance, repair, and replacement of the EPE Interconnection Facilities following installation. Generator is
responsible for all costs incurred by EPE for such activities. EPE, as required, shall invoice Generator for any EPE incurred costs associated with any maintenance, repair, and replacement of the EPE Interconnection Facilities. Such invoice shall
provide Generator with reasonable detail of the actual costs incurred by EPE. Generator shall make payment of the amount shown to be due to EPE by wire transfer to an account specified by EPE not later than the thirtieth (30th) day after receipt of
the statement, unless such day is not a Business Day, in which case Generator shall make payment on the next Business Day. All such payments shall be deemed to be made when said wire transfer is received by EPE. Overdue payments shall accrue
interest daily at the then-current Interest Rate from the due date of such unpaid amount until the date paid. 

  
 7.2.2 Invoice/Statement of Final Cost. 
  

	 	(a)	Within nine (9) months after the Effective Date, EPE shall provide an invoice of the final costs associated with EPE’s review and approval of the EPE Interconnection Facilities
and final costs of the Interconnection System Upgrades and the net amount due, if any, from Generator allowing for any payments made by Generator pursuant to this Agreement. The final cost invoice shall set forth in reasonable detail the actual
costs incurred by or on behalf of EPE in reviewing, approving, designing, procuring, constructing, installing and testing the EPE Interconnection Facilities, and the Interconnection System Upgrades, and shall set forth such costs in sufficient
detail to enable Generator to compare the actual costs with the estimates and to ascertain deviations, if any, from the cost estimates. Generator shall reimburse EPE for the amount of such invoice within thirty (30) days after receipt of such
invoice, unless such day is not a Business Day, in which case Generator shall make payment on the next Business Day. To the extent that the estimated costs for the Interconnection System Upgrades already paid by Generator exceed the final, actual
costs that Generator is obligated to pay hereunder for the Interconnection System Upgrades, EPE shall refund to Generator an amount equal to the difference within thirty (30) days of the issuance of the invoice of the final cost.

  

	 	(b)	 Within nine (9) months after the Effective Date, Generator shall provide a statement of the final costs it incurred for the EPE Interconnection Facilities and the
Interconnection System Upgrades. The final statement shall set forth in reasonable detail the actual costs incurred by or on 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	24	 	 

	 	 
behalf of Generator in designing, procuring, constructing, installing and testing the EPE Interconnection Facilities and the Interconnection System Upgrades.

  
 7.2.3 Failure of Payment. In the event
Generator fails, for any reason other than a billing dispute as described below, to make payment to EPE on or before the due date as described in Article 7.2.1(a) above, an event of breach by Generator shall be deemed to exist under Article 22.2(a).
In the event of a billing dispute between EPE and Generator, EPE shall continue to perform its responsibilities under this Agreement and Generator shall not be deemed to have committed an event of breach under Article 22.2(a), as long as Generator
(a) continues to make all payments not in dispute, and (b) upon request of EPE, pays into an independent escrow account the portion of the invoice in dispute, pending resolution of such dispute. 
  
 7.2.4 Billing Disputes. 
  

	 	(a)	Generator may, in good faith, challenge the correctness of any bill rendered under this Agreement for the design, engineering, procurement, and construction of the Interconnection
System Upgrades and for the review and approval of the EPE Interconnection Facilities no later than one (1) year following the issuance of a final cost invoice in accordance with Article 7.2.2(a). Generator may, in good faith, challenge the
correctness of any other bill rendered under this Agreement no later than one (1) year after the date the bill was rendered. In the event that Generator challenges a bill or a portion prior to date on which payment is due for such bill, Generator
shall nonetheless pay the portion of the bill that is not disputed when due, with notice given to the entity that rendered the bill at that time. Any challenge to a bill shall be in writing and shall state the specific basis for such challenge. If
it is subsequently agreed or determined under Article XXIX that an adjustment is appropriate, such adjustment shall be made in accordance with Article 7.3. 

  

	 	(b)	EPE may, in good faith, challenge the correctness of any statement rendered by the Generator under this Agreement for the costs incurred in connection with the design, engineering,
procurement, and construction of the EPE Interconnection Facilities and the Interconnection System Upgrades no later than one (1) year following the issuance of a final cost statement in accordance with Article 7.2.2(b). If it is subsequently agreed
or determined under Article XXIX that an adjustment is appropriate, such adjustment shall be made to the final statement of costs incurred prepared by the Generator in accordance with Article 7.2.2(b). 

  

	 	(c)	 Generator may, in good faith, challenge the correctness of any bill rendered pursuant to Article 7.2.1 (b) no later than one (1) year following the issuance of any
monthly bill. In the event that Generator challenges a bill or a portion prior to the date on which payment is due 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	25	 	 

	 	 
for such bill, Generator shall nonetheless pay the portion of the bill that is not disputed when due, with notice given to the entity that rendered the bill
at that time. Any challenge to a bill shall be in writing and shall state the specific basis for such challenge. If it is subsequently agreed or determined under Article XXIX that an adjustment is appropriate, such adjustment shall be made in
accordance with Article 7.3. 

  

	7.3	Adjustments. In the event adjustments or corrections to monthly statements rendered by EPE under Article 7.2.1 are required as a result of errors in computation or billing,
the entity that rendered the monthly statement shall promptly recompute amounts due hereunder and otherwise correct any errors in such statements. If the total amount, as recomputed, due from Generator is less than the total amount due as previously
computed, and payment of the previously computed amount has been made to EPE, EPE shall pay the difference to Generator within thirty (30) days after correction of the erroneous invoice(s), together with interest at the Interest Rate. If the total
amount, as recomputed, due from Generator is more than the total amount due as previously computed, and payment of the previously computed amount has been made to EPE, EPE shall invoice the difference to Generator according to the terms of Article
7.2; provided, however, that no adjustment for any statement or payment will be made unless objection to the accuracy thereof was made within the time frames described in Article 7.2.4; and provided further that this Article 7.3 will survive any
termination of the Agreement for a period of one (1) year from the date of such termination for the purpose of such statement and payment objections. 

  

	7.4	Payment Not a Waiver. Payment of invoices by Generator shall not constitute a waiver of any rights or claims Generator may have under this Agreement.

  

	7.5	Income Taxes. The costs associated with the Interconnection System Upgrades were incurred by Generator and pursuant to Article 5.4.10, Generator is entitled to Transmission
Service Credits equal to those costs. Pursuant to Article 5.4.4, Interconnection System Upgrades are owned by EPE. As such, the Interconnection System Upgrades are part of the EPE Transmission System. 

  
 In the event the Internal Revenue Service (“IRS”) assesses income
taxes against EPE as a result of this transaction pursuant to the terms and conditions of this Agreement (“ITCC Tax”), then Generator shall be solely responsible for and shall indemnify and hold EPE harmless from any such ITCC Tax and any
penalties and interest assessed by the IRS relating to the ITCC Tax. Generator shall pay EPE such ITCC Tax, penalties and interest upon demand after receipt of written evidence of the assessment of such taxes. In the event Generator is required to
pay the ITCC Tax, Generator shall be entitled to Transmission Service Credits equal to the amount of the ITCC Tax, penalties and interest actually paid plus any interest accrued thereon. For purposes of this Article 7.5, Generator’s liability
for ITCC Tax shall be calculated on a fully grossed-up basis by taking into account EPE’s Federal and state composite tax rate at the time of the payments or property transfers based on the highest marginal tax rates then in effect (the
“Composite Tax Rate”), less the present value (based on a discount rate of 8%) of the product obtained by multiplying (i) the annual tax depreciation deductions to which EPE would be entitled over the life of the Interconnection System
Upgrades by (ii) the Composite Tax Rate. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	26	 	 

 
In the event the IRS assesses ITCC Tax against EPE, and Generator pays such tax to EPE in accordance with the preceding paragraph, Generator shall have the
right and option to request that EPE appeal that portion of EPE’s tax assessment relating to the ITCC Tax through the appropriate administrative and judicial process. Generator agrees to notify EPE whether Generator elects to appeal the tax
assessment within thirty (30) days after being notified of the tax assessment; provided, however, that in no event shall Generator’s notice be provided to EPE less than ten (10) days before the date that EPE is required to perfect such appeal.
Generator’s failure to give notice to EPE within such time limits shall be deemed to be an election by Generator not to appeal the tax assessment. Any such appeal shall be at Generator’s sole cost and expense. EPE agrees to provide
reasonable assistance in such appeal. If, through the appellate process, it is conclusively determined that EPE is not liable for the ITCC Tax for the tax years at issue, EPE shall promptly refund to Generator any amounts paid by Generator to EPE
pursuant to this Article 7.5 for such tax years (with a corresponding reduction in credits to be applied to Generator’s Transmission Service Credits), with respect to any payment which is determined to be non-taxable taking into consideration a
proportionate allocation of EPE’s depreciation deductions. If the amount to be refunded to Generator in accordance with the immediately preceding sentence is greater than the remaining balance of Transmission Service Credits (including the
amounts relating to the ITCC Tax paid by Generator to EPE), then the amount which EPE shall be required to refund to Generator shall be reduced to equal the remaining balance of Transmission Service Credits, which shall be reduced to zero following
such refund. 
  
 For purposes of this Article 7.5, all references
to the IRS shall include applicable state income taxing authorities with jurisdiction over EPE. 
  
 Article VIII 
 OPERATIONS 
  

	8.1	General. With respect to their performance under this Agreement, the Operating Agent, EPE, and Generator shall comply with all applicable manuals, standards, and guidelines
of NERC, WSCC, RTO (if applicable), or any successor agency. 

  

	8.2	Obligations of Operating Agent. Operating Agent shall operate and control the EPE Interconnection Facilities, (a) in a safe and reliable manner, (b) in accordance with Good
Utility Practice, and (c) in accordance with the terms and conditions of this Agreement. In the event of any conflict between the terms and conditions of this Agreement and applicable planning, operational, and/or reliability criteria, protocols,
and directives of the RTO (if applicable), NERC and WSCC, the applicable planning, operational, and/or reliability criteria, protocols, and directives of the RTO (if applicable), NERC and WSCC shall govern. 

  

	8.3	Obligations of Generator. 

  
 8.3.1 Synchronization. Generator shall assume all responsibility and cost for properly synchronizing the Facility for operation with the EPE Transmission
System. Synchronizing of generation will be coordinated with the Operating Agent’s SOCC. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	27	 	 

 8.3.2 Operation and Control. Generator shall operate and control the Facility and Generator’s
Interconnection Facilities (a) in a safe and reliable manner, (b) in accordance with Good Utility Practice, and (c) in accordance with the terms and conditions of this Agreement. In the event of any conflict between the terms and conditions of this
Agreement and applicable planning, operational, and/or reliability criteria, protocols, and directives of the RTO (if applicable), NERC and WSCC, the applicable planning, operational, and/or reliability criteria, protocols, and directives of the RTO
(if applicable), NERC and WSCC shall govern. 
  
 8.3.3 Control
Area Requirements. Nothing in this Agreement should be construed as creating any obligation that Generator operate the Facility as part of the EPE Control Area. If the Facility is not operated as part of the EPE Control Area, in no event shall this
Agreement prohibit, prevent, or otherwise limit the ability of Generator to operate the Facility in accordance with the requirements of the control area of which it is part, and the Parties shall negotiate in good faith to amend this Agreement as
necessary or appropriate. 
  

	8.4	Reliability Criteria. 

  
 8.4.1 Power System Stabilizers (PSS). Generator shall install and operate PSS on generators in accordance with the WSCC criteria, the RMS criteria and any
other requirement that the Operating Agent is obligated to follow. 
  
 8.4.2 Automatic Voltage Regulation (AVR). Generator shall install and operate AVR in accordance with all requirements of WSCC, the RMS criteria and any other requirement that the Operating Agent is obligated to follow. Each interconnected
unit shall have AVR and such AVR shall be tuned in accordance with Institute of Electronics and Electrical Engineers (“IEEE”) standard 421 or its successor. Voltage regulator controls and limit functions (such as over- and under-excitation
and volts/hertz limiters) shall coordinate with the Facility’s generator’s short duration capabilities and protective relays. AVRs must be continuously acting solid state analog or digital. Tuning shall be in accordance with the WSCC
criteria and standards. Tuning results shall be included in commissioning test reports provided to the Operating Agent or EPE, as applicable. 
  
 8.4.3 Governors. Generator shall operate all governors in accordance with requirements of NERC and the WSCC, including any requirements for Governor Droop
settings. To provide equitable and coordinated system response to load/generation imbalances, governors shall not be blocked or operated with excessive dead-bands. 
  

	8.5	 Quality of Power. Generator shall ensure that the Facility’s quality of power at the Interconnected Facilities adheres to the standards set by NERC,
WSCC, the RTO (if applicable) and the American National Standards Institute (“ANSI”). In turn, the Operating Agent shall ensure that quality of power at the Interconnected Facilities adheres to the standards set by NERC, WSCC, the RTO (if
applicable) and ANSI. To the extent that the Operating Agent determines that the Afton Switching Station is adversely affected by flicker or harmonic distortion caused by Generator, or EPE determines that the EPE Transmission System is adversely
affected by flicker or harmonic distortion caused by Generator, Generator shall take the necessary actions to resolve the problem promptly upon notice from the Operating Agent or EPE. If such actions taken by Generator do not resolve the problem,
the Operating Agent shall 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	28	 	 

	 	 
notify Generator of the continuing problem and may curtail, interrupt or reduce deliveries of electricity, or disconnect the Facility from the EPE
Transmission System at the Afton Switching Station, in accordance with Good Utility Practice until the problem is resolved to the satisfaction of the Operating Agent or EPE, as the case may be. 

  

	8.6	Protection and System Quality. 

  
 8.6.1 Facilities. Generator shall, at its expense, install, maintain, and operate Protective Equipment at the Facility, including such protective and
regulating devices as are required by the RTO (if applicable), NERC, WSCC, or by order, rule or regulation of any Governmental Authority or as are otherwise necessary to protect personnel and equipment and to minimize adverse effects to the Afton
Switching Station and EPE’s electric system arising from the Facility. 
  
 8.6.2 Protective Equipment. Generator agrees that Protective Equipment must be installed to: 
  

	 	(a)	ensure safety of the general public, and personnel of EPE (including in its capacity as Operating Agent), and Generator; 

  

	 	(b)	minimize damage to the Afton Switching Station property and to the property of the general public, EPE and its customers; 

  

	 	(c)	minimize adverse operating conditions on the EPE Transmission System; and 

  

	 	(d)	permit Generator to operate the Facility in parallel with the EPE Transmission System in a safe and efficient manner. 

  
 The necessary Protective Equipment will be installed in accordance with
Articles 5.3.2 and 5.4. 
  

	8.7	Adjustments. The Operating Agent may require Generator to adjust the real power output or reactive power from the Facility only for purposes of Emergency or Abnormal
Conditions. The Operating Agent may not, unless the Generator and Operating Agent agree in writing, require Generator to make such adjustments based on economic considerations. 

  

	8.8	Switching and Tagging Procedures. 

  
 8.8.1 Compliance with Procedures. The Parties shall abide by the Operating Agent’s switching and tagging rules as the Operating Agent may modify them
from time to time with respect to activities at the Interconnected Facilities and the Afton Switching Station, and mutually agreed to activities within the Facility. The Operating Agent shall notify Generator in advance of the Operating Agent’s
switching and tagging rules and any amendments thereto. Generator shall ensure its personnel are trained and knowledgeable regarding the Operating Agent’s switching and tagging rules and grounding and isolation procedures. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	29	 	 

 8.8.2 Reclosing. Generator acknowledges that following an electric disturbance, certain equipment at the
Afton Switching Station may reclose in accordance with Good Utility Practice. The Operating Agent will provide Generator notice, as far in advance of implementation as is reasonably practical, of the reclosing practices of the EPE Interconnection
Facilities and the Interconnection System Upgrades, including the Afton Switching Station. The Operating Agent shall provide Generator all data needed to study the effect of proposed changes to such reclosing practices and allow a reasonable time
period, not to exceed 120 calendar days, for modification of Generator’s Protective Equipment if necessary. To the extent practicable, Operating Agent will cooperate with Generator to establish or modify the reclosing angle settings of the
Operating Agent’s reclosing operations to minimize the impact such operations will have on the EPE Transmission System (including the Afton Switching Station) and the Facility. 
  
 Generator shall have sole responsibility for protecting the Facility, Generator’s Interconnection Facilities and
related equipment from any damage resulting from such reclosure. To the extent not prohibited by Applicable Laws and Regulations, Generator hereby indemnifies and agrees to hold harmless EPE, the Operating Agent, and their Agents for, against and
from any and all losses, damages, costs and expenses caused by, resulting from or arising out of (a) any damage to the Facility, Generator’s Interconnection Facilities or related equipment to the extent caused by, resulting from, or arising out
of any such reclosure and (b) death of or injury to any person to the extent caused by, resulting from, or arising out of any impact or effect of such reclosure upon the Facility, Generator’s Interconnection Facilities, and/or any related
equipment. 
  
 If, for any reason, the Facility is disconnected
from the EPE Transmission System at the Afton Switching Station (by electric disturbance, line switching, or otherwise), Operating Agent shall cause the switching device connecting the Facility to the EPE Transmission System at the Afton Switching
Station to become and remain open and not reclose until the Operating Agent approves the reclosure. 
  

	8.9	General Orders. Each Party shall comply with the Operating Agent’s General Orders, in existence on the Effective Date and as may be modified from time to time, in the
operation of the Interconnected Facilities and the Facility. The Operating Agent shall provide a written copy of its General Orders upon request of Generator and thereafter notify Generator of any modifications in the Operating Agent’s General
Orders at least ten (10) days prior to the effective date of any such modifications. 

  

	8.10	Generation Alert. The Operating Agent shall issue generation alerts when it determines that the loss of a generating unit may create a system disturbance. When advised by the
Operating Agent, Generator shall exercise Due Diligence to suspend non-essential maintenance and operational activities that could lead to the loss of the Facility during the alerts. 

  
 Article IX 
  
 RELIABILITY MANAGEMENT SYSTEM 
  

	9.1	Purpose. In order to maintain the reliable operation of the transmission grid, the WSCC Reliability Criteria Agreement sets forth reliability criteria adopted by the WSCC
with which Generator and EPE shall comply. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	30	 	 

	9.2	Compliance. Generator shall comply with the requirements of the WSCC Reliability Criteria Agreement, including the applicable WSCC reliability criteria set forth in Section
IV of Annex A thereof, and, in the event of failure to comply, agrees to be subject to the sanctions applicable to such failure. Such sanctions shall be assessed pursuant to the procedures contained in the WSCC Reliability Criteria Agreement.

  

	9.3	Participant Status. Each of the pertinent provisions of the WSCC Reliability Criteria Agreement is hereby incorporated by reference into this Article IX as though fully set
forth herein, and Generator shall for all purposes be considered a “Participant,” as defined in the WSCC Reliability Agreement, and shall be entitled to all of the rights and privileges and subject to all of the obligations of a
Participant under and in connection with the WSCC Reliability Criteria Agreement, including the rights, privileges, and obligations set forth in Sections 5, 6, and 10 of the WSCC Reliability Criteria Agreement. 

  

	9.4	Payment of Sanctions. Generator shall be responsible for reimbursing EPE for any monetary sanctions assessed against EPE, to the extent determined to be attributable to the
action or inaction of Generator, by WSCC pursuant to the WSCC Reliability Criteria Agreement. Generator shall also be responsible for payment of any monetary sanction assessed against Generator by WSCC pursuant to the WSCC Reliability Criteria
Agreement. 

  

	9.5	Transfer of Control or Sale of Facility. In any sale or transfer of control of the Facility or any portion thereof, Generator shall, as a condition of such sale or transfer
of control, require the acquiring party or transferee with respect to the transferred Facility either to assume the obligations of the Generator with respect to this Agreement or to enter into an agreement with EPE imposing on the acquiring party or
transferee the same obligations applicable to Generator pursuant to this Article IX. 

  

	9.6	Failure to Comply with RMS. In the event Generator fails to comply with the requirements of the WSCC Reliability Criteria Agreement incorporated herein and, in the opinion of
EPE, endangers the safety or reliability of the EPE Transmission System, EPE shall have the right, subject to any necessary regulatory approval, to direct the Operating Agent to disconnect the Facility from the EPE Transmission System at the Afton
Switching Station, and EPE and the Operating Agent shall have no liability for any damages incurred by Generator or the Facility as a result of such disconnection. Prior to any proposed disconnection, the Operating Committee shall meet and the
Operating Agent shall advise the members of the Operating Committee regarding the reasons for the proposed disconnection. 

  

	9.7	Publication. Generator consents to the release by the WSCC of information related to Generator’s compliance with this Agreement only in accordance with the WSCC
Reliability Criteria Agreement. 

  

	9.8	 Third Parties. Except for the rights and obligations between the WSCC and Generator specified in this Article IX, this Article IX creates contractual rights
and obligations solely between the Parties. Nothing in this Article IX shall create, as between the Parties or with respect to the WSCC: (a) any obligation or liability whatsoever (other than as expressly provided in this Article IX) or (b) any duty
or standard of care whatsoever. In addition, nothing in this Article IX shall create any duty, liability, or standard of care whatsoever as to any other party. Except 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	31	 	 

	 	 
for the rights, as a third-party beneficiary under this Article IX of the WSCC against Generator, no third party shall have any rights whatsoever with
respect to enforcement of any provision of this Article IX. The Parties expressly intend that the WSCC is a third-party beneficiary to this Article IX and the WSCC shall have the right to seek to enforce against Generator any provision of this
Article IX, provided that specific performance shall be the sole remedy available to the WSCC pursuant to Article IX and Generator shall not be liable to the WSCC pursuant to this Article IX for damages of any kind whatsoever (other than the payment
of sanctions to the WSCC, if so construed), whether direct, compensatory, special, indirect, consequential, or punitive. 

  

	9.9	Reserved Rights. Nothing in the RMS or the WSCC Reliability Criteria Agreement shall limit the right of EPE, subject to any necessary regulatory approvals, to take such other
actions to maintain reliability, subject to any necessary regulatory approval, including disconnection, which EPE may otherwise be entitled to take. 

  

	9.10	Termination. The Generator may terminate its obligations pursuant to this Article IX: (a) if after the effective date of this Agreement, the requirements of the WSCC
Reliability Criteria Agreement applicable to Generator are amended so as to adversely affect the Generator, provided that Generator gives fifteen (15) days’ notice of such termination to EPE and the WSCC within forty-five (45) days of the date
of issuance of a FERC order accepting such amendment for filing, provided further that the forty-five (45) day period within which notice of termination is required may be extended by the Generator for an additional forty-five (45) days if the
Generator gives written notice to EPE of such requested extension within the initial forty-five (45) day period; or (b) for any reason on one (1) year’s written notice to EPE and the WSCC. 

  

	9.11	Mutual Agreement. This Article IX may be terminated at any time by mutual agreement of Generator and EPE. 

  

	9.12	Severability. If one or more provisions of this Article IX shall be invalid, illegal or unenforceable in any respect, it shall be given effect to the extent permitted by
Applicable Laws and Regulations, and such invalidity, illegality or unenforceability shall not affect the validity of the other provisions of this Article IX. 

  
 Article X 
 REACTIVE POWER 
  

	10.1	Obligation to Supply Reactive Power. Generator shall supply reactive power to the transmission grid in accordance with Good Utility Practice, and shall respond to requests
from the Operating Agent to increase or decrease generator output voltage in a manner consistent with Generator’s obligation to operate the Facility, provided such requests are consistent with Good Utility Practice and are made in order to
maintain reactive area support. The Facility shall operate in accordance with the reactive power requirements as set forth in this Agreement; provided, however, that such amount shall not exceed the amount available from the Facility’s
equipment in service. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	32	 	 

	10.2	Compensation. The Operating Agent shall compensate Generator for generating or absorbing reactive power at the specific request of the Operating Agent outside the power
factor design limitation minimum requirement specified in Article 10.3.1. The Operating Agent shall also compensate Generator for start-up costs and real power costs if reactive support is requested by the Operating Agent when the Facility is
off-line. Such compensation shall be in accordance with any applicable FERC tariff or rate schedule filed by Generator and accepted for filing by FERC. The Operating Agent and EPE reserve the right to oppose any tariff or rate schedule filed by
Generator with FERC.  

  

	10.3	Reactive Power Standards. 

  
 10.3.1 Composite Power Delivery. The Facility power factor design limitation minimum requirement shall be a reactive power capability sufficient to
provide a composite power delivery at the Interconnection Point at a power factor between 95% lagging and 95% leading. Under normal real-time operating conditions, Generator shall operate the Facility to maintain a voltage schedule at the
Interconnection Point as prescribed by the Operating Agent within the Facility’s power factor design limitation minimum requirement, provided such schedule is consistent with Good Utility Practice, and necessary to maintain reactive support on
the transmission grid. In the event that the voltage schedule at the Interconnection Point cannot be or is not maintained within such requirement, the Operating Agent may request that the Facility be operated (within the design limitations of the
equipment in service at that time) up to the maximum available reactive power output (measured in mega-volt ampere reactance (“MVAR”)) in order to achieve the prescribed voltage schedule; provided, however, that the Operating Agent has
equitably coordinated such requests with other generating facilities and other reactive power compensation resources in the affected area in order to achieve the prescribed voltage schedule. Generator shall promptly comply with all such requests
made by the Operating Agent and shall be compensated as provided for in Article 10.2. 
  
 10.3.2 Compliance. In the event that under normal transmission system operating conditions, the Facility is unable to consistently maintain a reactive power capability within the power factor design limitation minimum
requirement, Generator shall take appropriate actions to comply with such standards, including, if necessary, the installation of static and/or dynamic reactive power compensating devices. 
  
 10.3.3 Records. Records of requests made to Generator by the Operating
Agent, and records indicating actual responses to such requests, shall be maintained by the Operating Agent and subject to a third party independent audit at Generator’s request and expense. Any request for an audit by Generator shall be made
in accordance with Article 7.1.3. 
  

	10.4	Failure to Supply Reactive Power. To the extent that Generator fails to operate the Facility in accordance with this Article X and Generator has not taken any action pursuant
to Article 10.3.2, the Operating Agent may, after three (3) days’ notice to Generator, take any necessary actions to remedy Generator’s default, at Generator’s expense, including requiring the installation of capacitor banks or other
reactive compensation equipment required to ensure the proper voltage or reactive power supply at the Facility. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	33	 	 

 Article XI 
 OUTAGES, INTERRUPTIONS, AND DISCONNECTIONS 
  

	11.1	Outage Scheduling. On or before January 1st of each year, or such other date mutually acceptable to the Operating Agent and Generator, each of the foregoing shall, subject to
Article 3.7, provide to the other a non-binding preliminary maintenance schedule for the upcoming calendar year for the EPE Interconnection Facilities and Facility. The Operating Agent and Generator shall, subject to Article 3.7, each provide the
other with timely non-binding updates to such schedules to reflect any significant changes. 

  

	11.2	Scheduled Maintenance and Coordination. To the extent practicable, the Operating Agent shall schedule any testing, shutdown, or withdrawal of the EPE Interconnection
Facilities to coincide with Generator’s scheduled outages or, if not possible, during times acceptable to the Generator. The Operating Agent shall, subject to Article 3.7, notify Generator in advance of any such testing, shutdown, or withdrawal
of facilities and the schedule for maintenance as well as any changes in the schedule. The Operating Agent shall restore the EPE Interconnection Facilities to service as quickly as possible in accordance with Good Utility Practice.

  

	11.3	Other Maintenance and Coordination. To the extent that Generator desires EPE or the Operating Agent to perform maintenance during a time period other than a scheduled outage,
EPE and the Operating Agent shall, subject to the EPE OATT, use Commercially Reasonable Efforts to meet Generator’s request; provided, however, that such maintenance will not have a material adverse economic impact upon EPE or the customers of
the EPE Transmission System. If EPE determines, in the exercise of its reasonable judgment, that Generator’s request would have a material adverse economic impact upon EPE or the customers of the EPE Transmission System, but Generator is
willing to reimburse EPE for any costs incurred by it, EPE shall use Commercially Reasonable Efforts to comply with Generator’s request. 

  

	11.4	Unplanned Outages. In the event of an unplanned outage of a Party’s facility (including the Facility) that adversely affects the other Party’s facilities, the Party
that owns or controls the facility that is out of service shall use Commercially Reasonable Efforts to promptly restore that facility to service in accordance with Good Utility Practice and, subject to Article 3.7, to promptly notify the other Party
as to the expected duration of the unplanned outage and, to the extent known, the reason therefor. 

  

	11.5	Disconnection. 

  
 11.5.1 Disconnection during Underfrequency Load Shed Event. The Parties shall at all times comply with NERC, WSCC, and RTO (if applicable) requirements.
NERC planning criteria require the interconnected WSCC Grid frequency be maintained between 59.95 Hz and 60.05 Hz. WSCC has an off-nominal frequency program to which the EPE Transmission System adheres and all generators must also comply. In the
event of an underfrequency system disturbance, the EPE Transmission System is designed to automatically activate a multi-tiered load shed program. Generator shall coordinate underfrequency relay set points for the Facility as determined by the
Operating Committee, consistent with WSCC criteria. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	34	 	 

 11.5.2 Disconnection after Agreement Terminates. Upon termination of this Agreement, the Operating Agent
shall disconnect the Facility from the EPE Transmission System at the Afton Switching Station in accordance with the disconnection plan adopted pursuant to Article 23.4. 
  

	11.6	Continuity of Service. Notwithstanding any other provision of this Agreement, the Operating Agent shall not be obligated to accept, and the Operating Agent may require
Generator to curtail, interrupt or reduce, delivery of energy if such delivery of energy impairs EPE’s ability to construct, install, repair, replace or remove any of its equipment or any part of its system in a safe and reliable manner or if
the Operating Agent determines that curtailment, interruption or reduction is necessary to prevent, mitigate, or remedy an Emergency or for any reason otherwise permitted by Applicable Laws and Regulations. The Parties shall coordinate, and if
necessary negotiate in good faith, the timing of such curtailments, interruptions, or reductions with respect to maintenance, investigation or inspection of any of EPE’s equipment or system consistent with the terms and conditions of this
Agreement. Except in case of Emergency, in order not to interfere unreasonably with Generator’s operations, the Operating Agent shall give Generator reasonable prior notice of any proposed curtailment, interruption or reduction, the reason(s)
for its occurrence, and, if it is known, its expected duration. With respect to any curtailment, interruption or reduction permitted under this Article 11.6, the Operating Agent agrees that: (a) the curtailment, interruption, or reduction shall
continue only for so long as reasonably necessary under Good Utility Practice; (b) when the curtailment, interruption, or reduction must be made under circumstances which do not allow for advance notice, the Operating Agent will notify Generator by
telephone as soon as practicable of the reasons for the curtailment, interruption, or reduction and, if known, its expected duration; and (c) Operating Agent will compensate Generator, except for reductions, interruptions or curtailments under the
applicable OATT, pursuant to mutually agreed terms or pursuant to any applicable FERC-accepted tariff or rate schedule filed by Generator. 

  
 Article XII 
 EMERGENCY AND ABNORMAL
CONDITION PROCEDURES 
  

	12.1	 Emergency. During an Emergency as declared by the Operating Agent, in its sole discretion and consistent with Good Utility Practice, or the Security
Coordinator as appointed by WSCC for the Operating Agent’s region, the Operating Agent has the sole discretion to direct Generator to increase or decrease real power production (measured in MW) and/or reactive power production (measured in
MVAR), within the design and operational limitations of the Facility equipment in service at the time. The Operating Agent shall have sole discretion, exercised in accordance with Good Utility Practice, to determine that: (a) the transmission grid
security is threatened, and (b) any generator(s) connected to the transmission grid must increase or decrease real power and/or reactive power production. Generator shall follow the Operating Agent’s orders and directives concerning Facility
real power and/or reactive power output within the design limitations of the Facility’s equipment in service at the time. The Operating Agent shall restore the transmission system conditions to normal as quickly as possible to alleviate any
such Emergency. The Operating Agent shall reasonably allocate the responsibility to provide real power and/or reactive power support to the transmission system during an Emergency on an equitable, non-discriminatory basis with respect to all
generating units and other reactive compensation resources available to the Operating Agent. The Operating Agent, or any other Party as applicable, will compensate Generator, for a change in real power output 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	35	 	 

	 	 
in compliance with Operating Agent’s directive, except for reductions, interruptions or curtailment under the applicable OATT, pursuant to mutually
agreed terms or pursuant to any applicable FERC-accepted tariff or rate schedule filed by Generator. The Operating Agent, or any other Party as applicable, will compensate Generator for a change in reactive power production pursuant to the terms and
conditions of Article X.  

  

	12.2	Notice of Emergency. The Operating Agent shall provide Generator with prompt verbal or electronic notice of any Emergency which may reasonably be expected to affect
Generator’s operation of the Facility, and Generator shall provide the Operating Agent with prompt verbal notice of any generation equipment Emergency which may reasonably be expected to affect the Operating Agent’s operations. Such verbal
notification shall be followed within twenty-four (24) hours with written notification, which shall describe in reasonable detail the extent of the Emergency (including damage or deficiency), the anticipated length of the outage, and the corrective
actions taken. 

  

	12.3	Immediate Action. In the event of an Emergency, the Party (either the Operating Agent or Generator) becoming aware of the Emergency may, in the exercise of its reasonable
judgment and in accordance with Good Utility Practice, take such actions as are reasonable and necessary to prevent, avoid, or mitigate injury, danger, and loss, without liability to the other Party for its actions. 

  
 12.3.1 In the event that Generator has identified an Emergency involving the
transmission system, Generator shall obtain the consent of the Operating Agent before manually performing any switching operations unless, in Generator’s reasonable judgment, exercised in accordance with Good Utility Practice, immediate action
is required. 
  
 12.3.2 Either the Operating Agent or Generator
shall have the right to disconnect the Facility without prior notice or liability to the other Party if, in such Party’s reasonable judgment and in accordance with Good Utility Practice, an Emergency exists and immediate disconnection is
required to protect persons or property from damage caused by Generator’s interconnection or lack of proper or properly operating protective devices. Prior to an Emergency, for purposes of this Article 12.3.2, the Operating Agent may deem
protective devices to be operating improperly if the Operating Agent’s review pursuant to Article XIII discloses insufficient maintenance on such devices or that maintenance records do not exist or are insufficient to establish that adequate
maintenance on such devices has been performed, provided that the Operating Agent shall inform Generator, in writing following the Operating Agent’s review, of such conclusions regarding maintenance of such devices and provide Generator a
reasonable opportunity to demonstrate to the Operating Agent’s satisfaction that adequate maintenance has been performed. The Party initiating the disconnection shall notify the other Party of such disconnection as soon as reasonably possible
after the disconnection. 
  

	12.4	Disconnection of Facility in Event of Potential Emergency. If, at any time, the Operating Agent determines, in the exercise of its reasonable judgment and in accordance with
Good Utility Practice, that the continued operation of the Facility would cause an Emergency, the Operating Agent may disconnect the Facility from the EPE Interconnection Facilities until such condition at the Facility giving rise to the potential
Emergency ceases to exist. The Operating Agent shall 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	36	 	 

 not be liable to Generator for the Operating Agent’s actions unless such action constitutes willful
misconduct on the part of the Operating Agent. 
  
 12.4.1 Notice
of Disconnection. The Operating Agent shall provide Generator with as much advance notice as is reasonably practical under the circumstances of Operating Agent’s intent to disconnect the Facility in response to a condition at the Facility that
would cause an Emergency. Subject to Article 3.7, the Operating Agent shall also provide Generator with information relating to the nature of the potential Emergency and the expected duration of the disconnection at the Interconnection Point.

  
 12.4.2 Opportunity to Resolve Condition. To the extent
reasonably practical, the Operating Agent shall allow Generator an opportunity to remove or remedy such condition at the Facility that would cause an Emergency before the Operating Agent disconnects the Facility. 
  
 12.4.3 Conference Regarding Condition. In the event of disconnection, the
Operating Agent shall promptly confer with one of Generator’s Operating Committee representatives regarding the condition that gave rise to the disconnection. The Operating Agent shall provide Generator with its recommendation, if any,
regarding the timely correction of the condition. 
  
 12.4.4
Restoration. The Operating Agent shall promptly reconnect the Facility when the condition giving rise to the potential Emergency ceases to exist and shall use reasonable efforts consistent with Good Utility Practice to minimize the duration of any
disconnection. 
  

	12.5	Audit Rights. The Operating Agent and Generator shall keep and maintain records of any actions taken during an Emergency that may reasonably be expected to impact the
others’ facilities and shall make such records available for review by the other or its auditor upon the request and expense of the other. Any request for such an audit shall be made no later than twenty-four (24) months following the actions
taken in conjunction with the Emergency. 

  

	12.6	 Abnormal Conditions. To the extent the Operating Agent is aware of any Abnormal Condition, the Operating Agent will provide Generator with reasonably prompt
oral notification of such Abnormal Condition if it may reasonably be expected to affect Generator’s Facility or operations. To the extent that Generator is aware of any Abnormal Condition, Generator will provide the Operating Agent with
reasonably prompt oral notification of such Abnormal Condition if it may reasonably be expected to affect the operations of the Operating Agent’s or EPE’s facilities. Subject to Article 3.7, any such oral notification provided hereunder
shall include a description of the Abnormal Condition, its anticipated duration, and the action taken and/or to be taken with respect to the notifying Party’s facilities, and shall be followed as soon as practicable with written confirmation of
the facts. Each Party shall cooperate and coordinate with the other Party in taking whatever actions on its facilities as are reasonably necessary to mitigate or eliminate the Abnormal Condition, including, to the extent necessary, adjusting the
operation of equipment to within its rated operating parameters; provided, however, that such measures are consistent with Good Utility Practice and do not require operation of any of the Parties’ facilities outside their operating limits. The
Operating Agent and Generator each reserves the right, in its sole discretion, to isolate or disconnect the Facility from the EPE Transmission System at the Afton Switching Station if it believes an Abnormal Condition, including an electric
disturbance, may cause damage to its facilities. The Operating Agent, or 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	37	 	 

	 	 
any other Party as applicable, will compensate Generator, for a change in real power output in compliance with Operating Agent’s directive, except for
reductions, interruptions or curtailment under the applicable OATT, pursuant to mutually agreed terms or pursuant to any applicable FERC-accepted tariff or rate schedule filed by Generator. The Operating Agent, or any other Party as applicable, will
compensate Generator for a change in reactive power production pursuant to the terms and conditions of Article X. Generator will compensate Operating Agent or EPE, as applicable, for actions provided to Generator to mitigate Abnormal Conditions
caused by Facility pursuant to mutually agreed terms or pursuant to any applicable FERC-accepted tariff or rate schedule filed by Operating Agent or EPE, as applicable. 

  
 Article XIII 
 MAINTENANCE 
  

	13.1	The Operating Agent Obligations. The Operating Agent shall maintain and repair/replace the EPE Interconnection Facilities: (a) in a safe and reliable manner; (b) in
accordance with Good Utility Practice; and (c) in accordance with the terms and conditions of this Agreement. 

  

	13.2	Generator Obligations. Generator shall maintain and repair/replace the Facility and Generator’s Interconnection Facilities: (a) in a safe and reliable manner; (b) in
accordance with Good Utility Practice; and (c) in accordance with the terms and conditions of this Agreement. 

  

	13.3	Maintenance Expenses. In accordance with Articles 5.3 and 5.4 and subject to Article 5.14, Generator shall be responsible for all expenses associated with maintaining and
repairing/replacing the Interconnected Facilities. The Operating Agent agrees to provide Generator in June of each year with its best estimate of the costs required to operate and maintain the EPE Interconnection Facilities over the next twelve (12)
months. These costs shall be billed and paid in accordance with Articles 7.2 and 7.3. The Operating Agent will notify Generator in advance of any increase in the cost of work to be performed if the total amount increases by twenty-five
percent (25%) or more of the estimate provided to Generator. Any such increase shall be subject to Generator’s authorization, which shall not be unreasonably delayed, withheld or denied. In accordance with Article 5.4.4, EPE shall be
responsible for all expenses associated with maintaining and repairing/replacing Interconnection System Upgrades after the Operation Date. 

  

	13.4	Coordination. Generator agrees to coordinate with the Operating Agent in accordance with procedures developed by the Operating Committee regarding the inspection,
maintenance, and testing of those secondary systems in the Facility and Interconnected Facilities directly affecting the operation of the EPE Transmission System. To the extent possible, Generator shall provide five (5) Business Days’ advance
written notice to the Operating Agent before undertaking such work. 

  

	13.5	 Observation of Deficiencies. Each Party shall have the right, but not the obligation, to observe the testing and maintenance activities performed by the
other Party with respect to facilities whose performance may adversely affect the reliability of the observing Party’s facilities. If the observing Party observes any deficiencies or defects associated with, or becomes aware of a lack of
maintenance, inspections, or testing with respect to, any of the other Party’s facilities 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	38	 	 

	 	 
and equipment that might be reasonably expected to adversely affect the observing Party’s facilities and equipment, the observing Party shall provide
prompt written notice to such other Party. Notwithstanding the foregoing, the observing Party shall have no liability for failure to give such notice. Upon receipt of such written notice, such Party shall take any necessary corrective actions in
accordance with Good Utility Practice. 

  

	13.6	Review of Maintenance Records. Upon ten (10) Business Days’ written notice to Generator, Generator shall provide the Operating Agent with access to Generator’s
maintenance, inspection, and testing records for Generator’s Interconnection Facilities and any other facilities whose operation may reasonably be expected to affect the reliability of the EPE Interconnection Facilities, or the EPE Transmission
System. The other facilities shall include generator step up transformers, protection systems, metering, communications systems, breakers, automatic voltage regulators, generator governor and excitation systems. Upon ten (10) Business Days’
written notice to the Operating Agent, the Operating Agent shall, subject to Article 3.7, provide Generator with access to the Operating Agent’s maintenance, inspection, and testing records for the EPE Interconnection Facilities.

  
 Article XIV 
 METERING 
  

	14.1	General. Prior to the Operation Date, EPE shall provide, install, and maintain Metering Equipment necessary to meet its obligations under this Agreement. Generator shall have
the option, subject to EPE approval, to use EPE’s Metering Equipment for Facility operations. Beginning on the Operation Date, the Operating Agent shall assume responsibility for operating and maintaining the Metering Equipment. EPE shall own
the Metering Equipment. At the Operating Agent’s option, the Metering Equipment shall be located or adjusted in such a manner to account for any transformation or interconnection losses between the location of the meter and the Interconnection
Point. The location of the Metering Equipment and Generator’s verification meters are identified on Appendix D. 

  

	14.2	Testing. The Operating Agent shall inspect and test Metering Equipment on an annual basis or at such other time intervals as may be directed by the Operating Committee;
provided, however, that Generator, may request, after demonstrating good cause, one additional inspection and test for Metering Equipment per year. In addition, any Party may request a special test of meters, but such Party shall bear the cost of
such testing unless an inaccuracy shall be disclosed exceeding one percent (1%), in which case the Operating Agent shall be responsible for the costs of the special testing. Authorized representatives of each Party shall have the right to be present
at all routine or special tests and to inspect any readings, testing, adjustment or calibration of the meters. The Operating Agent shall promptly correct any inaccuracy disclosed through such inspections and tests. For the purpose of checking the
performance of the Metering Equipment, Generator may install check metering equipment, which such equipment shall be owned and maintained by Generator. 

  

	14.3	 Data Metered. The following data shall be real-time metered and sent electronically to the Operating Agent’s SOCC: (a) net MW output of each generator
of the Facility; (b) reactive power output of each generator of the Facility, both positive and negative; (c) 345 kV bus voltage; (d) indications (open or closed) of all circuit breakers; (e) indications (open or closed) 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	39	 	 

	 	 
of all circuit switches; (f) various alarm points, as reasonably determined by the Operating Agent; (g) various relay indications and relay alarms; and (h)
any other data as determined by the Operating Agent. 

  

	14.4	Data Available Upon Request. The Operating Agent shall provide to Generator and EPE all metering quantities in analog and/or digital form, whichever is available, upon
request. 

  

	14.5	Costs. Except as otherwise provided for in this Article XIV, Generator shall bear all reasonable costs associated with the provision of metering data to Generator. All such
costs shall be separately stated on the invoice sent to Generator by EPE or the Operating Agent, as applicable. 

  
 Article XV 
 SAFETY 
  

	15.1	General. All work performed by a Party shall be performed in accordance with Good Utility Practice and all Applicable Laws and Regulations, Environmental Laws, and other
requirements regarding the safety of persons and property. 

  

	15.2	Environmental Releases. No later than twenty-four (24) hours after a Party becomes aware of a Release of any Hazardous Substances, any asbestos or lead abatement activities,
or any type of remediation activities, such Party shall provide written notice to the other Party of such Release or activities, describing in reasonable detail the nature of such Release or activities. Such Party shall also promptly provide the
other Party with copies of any reports filed with any Governmental Authority regarding such Release or activities. 

  

	15.3	Other Environmental Impact. No Party shall take any action(s) knowing that such action(s) might be reasonably expected to have a material adverse environmental impact upon
the operations of the other Party without prior written notification and agreement between the Parties. 

  
 Article XVI 
 COMMUNICATIONS 

 

	16.1	Equipment. Generator, at its own expense, shall maintain satisfactory communications with the Operating Agent or its designated representative. At Generator’s expense,
Generator shall install and maintain real-time operating communications with the Operating Agent’s SOCC to the satisfaction of the Operating Agent or its designated representative. The data circuit(s) shall extend from Generator’s
Facility to a location(s) specified by the Operating Agent. Any required maintenance of such communications equipment shall be performed at Generator’s expense, but may be performed by Generator or by the Operating Agent. EPE, at
Generator’s expense, will own, operate and maintain the communications system necessary to support the switchyard and transmission interconnection with the existing transmission system, including switchyard RTU(s), protective relaying,
telemetry, station phones, and other similar EPE systems. Generator will own, operate and maintain the communication system required to support the Generator, including Generator RTU(s), telemetry, ringdown phones, administrative communications such
as LAN and telephones and other similar Generator systems. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	40	 	 

	16.2	Remote Terminal Unit. A Remote Terminal Unit (“RTU”) or equivalent data collection and transfer equipment acceptable to Generator and the Operating Agent shall be
installed by Generator or by EPE at Generator’s expense, to gather accumulated and instantaneous data to be telemetered to a location(s) designated by the Operating Agent through use of a dedicated point-to-point data circuit(s). Generator
shall install or facilitate installation of such equipment as soon as practicable, provided that installation shall be accomplished prior to the date of unit testing or the Commercial Operation Date, whichever comes first. The communication protocol
for this data circuit(s) shall be specified by the Operating Agent. Instantaneous bi-directional analog real power and reactive power flow information must be telemetered directly to the location(s) specified by the Operating Agent. 

  
 Article XVII 
 INFORMATION REPORTING 
  

	17.1	General. Generator shall provide to the Operating Agent all information, documents, or data, pertaining to the operations of the Facility, required for the Operating Agent to
fulfill its obligations to NERC, WSCC, the RTO (if applicable) or any Governmental Authority requiring system information. Such information, documents or data shall be supplied in the format as required by NERC, WSCC, the RTO (if applicable) or any
Governmental Authority and within a reasonable time frame designated by the Operating Agent to meet these obligations. 

  

	17.2	Compliance Monitoring Reporting. Generator shall provide all information, documents, or data, pertaining to the operations of the Facility, requested by NERC, WSCC, the RTO
(if applicable) or any other entity with jurisdiction requiring system information for purposes of compliance monitoring programs including RMS. Such information, documents, or data shall be provided to the Operating Agent if required by the
specific compliance program or to the extent otherwise required by this Agreement. Such information, documents, or data shall be supplied in the format as required by NERC, WSCC, the RTO (if applicable) or any other entity with jurisdiction and
within the time frame designated by such compliance program sponsor to meet these obligations. 

  

	17.3	Regulatory Agency Reporting. Generator shall provide to the Operating Agent all information, documents, or data, pertaining to the operations of the Facility, required by the
Operating Agent to fulfill reporting obligations to any Governmental Authority including FERC. Such information, documents, or data shall be supplied in the format as required by any Governmental Authority including FERC and within a reasonable time
frame designated by the Operating Agent to meet these obligations. 

  

	17.4	Penalties. Generator shall be responsible for reimbursement to the Operating Agent of any economic sanctions or portions thereof, as applicable, or penalties incurred or
imposed upon the Operating Agent due solely to Generator’s failure to provide information, documents, or data, pertaining to the operations of the Facility, in the required format within the time frame specified by the Operating Agent, or the
compliance monitoring program, except to the extent that Generator’s failure is due solely to the Operating Agent’s or any of its Agents’ negligence or willful misconduct. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	41	 	 

 Article XVIII 
 DOCUMENTATION 
  

	18.1	General. Each Party shall provide the other Party with appropriate documentation, consistent with Good Utility Practice, in the form of written test records, operation and
maintenance procedures, drawings, material lists, or descriptions whenever a Party makes a change, alteration, or modification to its property, equipment, or facilities that could reasonably be expected to affect the other Party, or whenever such
documentation is necessary to ensure the safe and reliable operation of the EPE Transmission System, the Facility, or the Interconnected Facilities, pursuant to Good Utility Practice or required by the Operating Committee. EPE’s obligation to
provide documentation pursuant to this Article is subject to Article 3.7. 

  

	18.2	Drawings. The Operating Agent shall identify, number, and provide Generator with a duplicate set of current drawings that represent equipment or facilities that shall be used
or operated at or near the Interconnection Point, which shall consist of one or more of the following: (a) system one-line drawings that include breaker and switch designations – single page format drawings used for dispatch and operation
purposes; (b) one-line drawings – prints used in conceptual design which provide detail on facility and system interconnections; (c) elementary diagrams – drawings which provide a higher level of detail than one-line drawings and identify
on a single-line basis current and voltage transformer locations, protection relay types, and meter and control connections; (d) three-line diagrams – drawings which provide the highest level of detail for the facilities in a three-line format
with specific current and voltage transformer connections, relay and meter connections; (e) schematic drawings or elementaries – drawings which provide information on apparatus controls, switch developments, etc.; (f) relay and control panel
front view and wiring diagrams – drawings which describe physical panel layout, relay, terminal block and device locations, wiring, and other construction details; and (g) other physical drawings – drawings which include information on
foundations, equipment layouts, grounding panel construction, site plans, etc. 

  
 Article XIX 
 FORCE MAJEURE 
  

	19.1	 Definition. As used in this Agreement, the term “Force Majeure” means any cause that is beyond the reasonable control of the Party affected which,
despite the affected Party’s exercise of Due Diligence to prevent or overcome, prevents the performance by such affected Party of its obligations under this Agreement. Subject to the foregoing, “Force Majeure” shall include sabotage,
strikes or other labor difficulties, riots, civil disturbances, acts of God, wars, acts of public enemies, epidemics, drought, earthquake, flood, explosion, fire, lightning, landslides, or similar cataclysmic event, breakage or accident to machinery
or equipment, order, regulation, or restriction imposed by governmental military or lawfully established civil authorities, the occurrence of an event described in the first sentence of Article 2.4 (provided that the Party asserting Force Majeure
based on such occurrence complies with its obligations under Article 2.4), or any other cause, whether of the kind enumerated herein or otherwise. A Force Majeure event does not include : (a) economic hardship of or loss of markets by a Party; (b)
the unavailability of transmission or distribution capability, unless the Party claiming Force Majeure has contracted for firm transmission and such unavailability is the result of a “force majeure” event or “uncontrollable
force” or a similar term as defined under the applicable 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	42	 	 

	 	 
transmission tariff; (c) events resulting from, or attributable to, normal wear and tear experienced in power generation, interconnection, and transmission
materials and equipment; and (d) events attributable to negligence or willful misconduct, failure to comply with any Applicable Laws and Regulations, any default under this Agreement, or any failure to act in accordance with Good Utility Practice in
each case by the Party claiming Force Majeure. 

  

	19.2	Performance Excused. If any Party is rendered wholly or partially unable to perform under this Agreement because of a Force Majeure event, such Party shall be excused from
such obligations to the extent that the occurrence of the Force Majeure event prevents such Party’s performance and such Party shall not be liable for any resulting damages, provided that: (a) the non-performing Party provides the other Party
with prompt verbal notice of the occurrence of the Force Majeure event, and provides written notice describing in reasonable detail the nature of the Force Majeure event within three (3) Business Days of the Force Majeure event; (b) the suspension
of performance shall be of no greater scope and of no longer duration than is reasonably required by the Force Majeure event; (c) the non-performing Party uses Due Diligence to remedy its inability to perform; and (d) as soon as the non-performing
Party is able to resume performance of its obligations excused as a result of the occurrence, it gives prompt written notification thereof to the other Party. 

  

	19.3	Labor Issues. No Party shall be required to settle a strike or other labor dispute affecting its operations. 

  

	19.4	Payment Not Excused. Nothing in this Article XIX shall excuse any Party from making payments due pursuant to the terms and conditions of this Agreement for the period prior
to the occurrence of the Force Majeure event. 

  
 Article XX 
 INDEMNIFICATION 
  

	20.1	INTERCONNECTION INDEMNITY. GENERATOR SHALL AT ALL TIMES INDEMNIFY AND HOLD HARMLESS THE OPERATING AGENT AND EPE FOR, AGAINST AND FROM ANY AND ALL DAMAGES, LOSSES, CLAIMS,
INCLUDING CLAIMS AND ACTIONS RELATING TO INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF ANY PROPERTY, DEMANDS, SUITS, RECOVERIES, COSTS AND EXPENSES, COURT COSTS, ATTORNEY FEES, AND ALL OTHER OBLIGATIONS BY OR TO THIRD PARTIES, ARISING OUT
OF OR RESULTING FROM THE OPERATING AGENT’S OR EPE’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT ON BEHALF OF GENERATOR EXCEPT IN CASES OF NEGLIGENCE OR INTENTIONAL WRONGDOING BY THE OPERATING AGENT OR EPE. 

 

	20.2	 RECIPROCAL INDEMNITY. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, EACH PARTY SHALL INDEMNIFY AND HOLD HARMLESS THE OTHER PARTY, ITS AFFILIATES, AGENTS,
SUCCESSORS, REPRESENTATIVES AND PERMITTED ASSIGNS FOR, AGAINST AND FROM ANY CLAIM, LIABILITY, DAMAGE, LOSS OR EXPENSE OF ANY KIND OR NATURE (INCLUDING REASONABLE ATTORNEYS’ FEES), (A) FOR PERSONAL INJURY TO OR DEATH OF ANY PERSON, (B) FOR LOSS
OF OR DAMAGE TO PROPERTY OF THIRD PARTIES OR 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	43	 	 

	 	 
THE REAL PROPERTY OR TANGIBLE PERSONAL PROPERTY OF SUCH OTHER PARTIES, OR (C) ARISING OUT OF OR RESULTING FROM PERFORMANCE OF OBLIGATIONS UNDER THIS
AGREEMENT, IN EACH INSTANCE TO THE EXTENT DETERMINED TO BE ATTRIBUTABLE TO THE NEGLIGENCE, GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR STRICT LIABILITY IN TORT OF OR BREACH OF THIS AGREEMENT BY THE INDEMNITOR OR ITS AFFILIATES, AGENTS, SUCCESSORS OR
PERMITTED ASSIGNS. 

  

	20.3	DAMAGE DISCLAIMER. THE EXPRESS REMEDIES AND MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF. FOR BREACH OF ANY PROVISION FOR WHICH AN
EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY. THE OBLIGOR’S LIABILITY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION AND ALL OTHER REMEDIES OR DAMAGES AT LAW
OR IN EQUITY ARE WAIVED. IN NO EVENT SHALL ANY PARTY BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFIT OR REVENUE, LOSS OF THE USE OF EQUIPMENT, COST OF CAPITAL, COST OF TEMPORARY EQUIPMENT OR
SERVICES, WHETHER BASED ON BREACH OF CONTRACT, NEGLIGENCE, GROSS NEGLIGENCE, WILLFUL MISCONDUCT, STRICT LIABILITY OR OTHER CAUSES OF ACTION. ALL PAYMENTS DUE FOR SERVICES UNDER THIS AGREEMENT SHALL BE DEEMED TO CONSTITUTE DIRECT (NOT SPECIAL,
INCIDENTAL, INDIRECT OR CONSEQUENTIAL) DAMAGES FOR PURPOSES OF THIS ARTICLE 20.3. THE PROVISIONS AND DISCLAIMERS OF THIS ARTICLE 20.3 SHALL NOT APPLY TO CLAIMS FOR PERSONAL INJURY OR DEATH AND SHALL NOT APPLY TO ARTICLE 22.7.

  

	20.4	Indemnities Reformed. The indemnities set forth in this Article XX shall be construed to be effective to the maximum extent permitted by Applicable Laws and Regulations. To
the extent that any of the indemnities are determined to be unenforceable or void under Applicable Laws and Regulations, the indemnities shall be reformed and restated to the extent necessary to render them effective. 

  

	20.5	Indemnification Procedures. If any Party intends to seek indemnification under this Article XX from any other Party, the Party seeking indemnification shall give such other
Party written notice of such claim within thirty (30) days of the commencement of, or actual knowledge of, such claim. Such notice shall describe the claim in reasonable detail and shall indicate the amount (estimated, if necessary) of the claim
that has been or may be sustained by such Party. To the extent that the other Party is actually and materially prejudiced as a result of the failure to provide such notice, the other Party’s liability under the provisions of this Article XX
shall be reduced proportionately to such prejudice. The Party being indemnified may, if in its reasonable judgment its interests are adverse to the interests of the indemnifying Party, elect to assume at its own expense and by its own counsel the
defense of the claim, in which case the indemnifying Party shall cooperate in good faith at its own expense with the Party being indemnified in such defense. No Party shall settle or compromise any claim without the prior written consent of the
Party from which it is seeking indemnification; provided, however, that such consent shall not be unreasonably withheld, delayed or denied. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	44	 	 

	20.6	Additional Indemnification Provisions. If a court of competent jurisdiction determines that NMSA 1978, §56-7-1 is applicable to this Agreement, then nothing in this
Article 20.6 or any other indemnification provision of this Agreement shall extend to liability, claims, damages, losses, or expenses, including attorney fees, arising out of: 

  
 20.6.1 The preparation or approval of maps, drawings, opinions, reports,
surveys, change orders, designs, or specifications by the indemnitee, or the employees or agents of the indemnitee; or 
  
 20.6.2 The giving of or failure to give directions or instructions by the indemnitee, or the employees or agents of the indemnitee, where such giving or
failure to give directions or instructions is the primary cause of bodily injury to persons or damage to property. 
  

	20.7	Survival. The indemnification obligations, covenants and disclaimers, under this Article XX shall continue in full force and effect regardless of whether this Agreement has
expired or been terminated or cancelled and shall not be limited in any way by any limitation on insurance, on the amount or types of damages, or by any compensation or benefits payable by the Parties under any applicable workers’ compensation
acts, disability benefit acts, or other employee acts. 

  
 Article XXI 
 INSURANCE 
  

	21.1	Generator. Without limiting any obligations or liabilities under this Agreement, Generator shall, at its expense, provide and maintain in effect for the term of this
Agreement, insurance against the risks set forth below. All insurance shall include waivers of subrogation in favor of EPE and the Operating Agent. 

  
 21.1.1 Workers’ compensation insurance with minimum statutory limits to cover obligations imposed by federal and state
statutes applicable to the Generator’s employees and employer’s liability insurance with a minimum limit of one million dollars ($1,000,000) per accident. 
  
 21.1.2 Commercial general liability insurance, including contractual liability, broad form property damage, premises
operations, and personal injury coverage in the amount of twenty-five million dollars ($25,000,000) per occurrence for bodily injury and property damage. Such insurance shall cover EPE (and its affiliated companies) and the Operating Agent as
additional insureds. 
  

	21.2	EPE or Operating Agent. Without limiting any obligations or liabilities under this Agreement, EPE or Operating Agent shall provide and maintain in effect for the term of this
Agreement, insurance against the risks set forth below. All insurance shall include waivers of subrogation in favor of Generator. 

  
 21.2.1 Workers’ compensation insurance with minimum statutory limits to cover obligations imposed by federal and state statutes applicable to the
employees of EPE or Operating Agent and employer’s liability insurance with a minimum limit of one million dollars ($1,000,000) per accident. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	45	 	 

 21.2.2 Commercial general liability insurance, including contractual liability, broad form property
damage, premises operations, and personal injury coverage in the amount of twenty-five million dollars ($25,000,000) per occurrence for bodily injury and property damage. Such insurance shall cover Generator as an additional insured. 
  

	21.3	Notice of Cancellation. All policies shall provide for thirty (30) calendar days’ prior written notice of cancellation or material adverse change and ten (10) calendar
days’ prior written notice of non-payment of premiums. Copies of any such notice shall be provided to each Party and the Operating Agent. Prior to the Operation Date and annually thereafter, each Party shall provide, upon request,
evidence of insurance to the Operating Agent and the other Party. 

  

	21.4	Self-Insurance. At its option, each Party may, with adequate credit assurance provided to the other Party, self-insure all or part of the insurance required in this Article
XXI; provided however, that all other provisions of this Article XXI, including waiver of subrogation and additional insured status, shall remain enforceable. A Party’s election to self-insure shall not in any manner result in a reduction of
rights and/or benefits otherwise available to the other Party through formal insurance policies and endorsements as specified in this Article XXI. Each Party shall be responsible for its respective amounts of self-insurance retentions and/or
deductibles. 

  
 Article XXII 
 DEFAULT 
  

	22.1	General. A Party shall be deemed to have breached this Agreement upon the occurrence of any of the events specified in Article 22.2. A Party shall be deemed to be in default
of its obligations under this Agreement upon its failure to cure such breach in accordance with the procedures set forth in this Article XXII. 

  

	22.2	Events Constituting Breach. The following events shall constitute events of breach by a Party (“Breaching Party”) under this Agreement: 

  

	 	(a)	the failure by the Breaching Party to make any payment as required under the terms of this Agreement; 

  

	 	(b)	the failure by the Breaching Party to comply with any material term or condition of this Agreement, including any material breach of a representation, warranty, or covenant of this
Agreement; 

  

	 	(c)	 the Breaching Party (or any entity guaranteeing the obligations of such Breaching Party): (i) files or consents by answer or otherwise to a filing against it of any
petition or case seeking relief under any federal, state, or foreign bankruptcy, insolvency, or similar law (collectively, “Bankruptcy Laws”); (ii) makes a general assignment for the benefit of a creditor(s); (iii) applies for or consents
to the appointment of a custodian, receiver, trustee, conservator, or other officer with similar powers over it or over any substantial part of its property (“Custodian”); (iv) takes corporate action for the purpose of any of the events
described 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	46	 	 

	 	 
in Article 22.2(c)(i) – (iii), above; (v) is dissolved; (vi) by decree of a court of competent jurisdiction, is adjudicated insolvent; or (vii) is
unable to provide adequate assurances to the other Party of the Breaching Party’s continued ability to perform; 

  

	 	(d)	a Governmental Authority enters or issues an order or a decree with respect to the Breaching Party: (i) appointing a Custodian; (ii) constituting an order for relief under, or
approving a petition or case for relief or reorganization or any other petition or case to take advantage of, any Bankruptcy Laws; or (iii) ordering its dissolution, winding-up, or liquidation; 

  

	 	(e)	the assignment of this Agreement by the Breaching Party in a manner inconsistent with the terms and conditions of this Agreement; 

  

	 	(f)	the failure of the Breaching Party to provide access rights, or the Breaching Party’s attempt to revoke or terminate such access rights, as provided under this Agreement; and

  

	 	(g)	the failure by the Breaching Party to provide information or data to the other Party (“Non-Breaching Party”) as required under this Agreement, provided that the
Non-Breaching Party seeking such information or data requires such information or data to satisfy its obligations under this Agreement. 

  

	22.3	Notice by Breaching Party. In the event of a breach under Article 22.2(c) or Article 22.2(d), the Breaching Party shall provide the Non-Breaching Party notice of the event of
breach within three (3) Business Days of the occurrence of such event of breach. Such notice shall be in writing and set forth in reasonable detail the nature of the event of breach. 

  

	22.4	Cure and Default. Upon obtaining knowledge of an event of breach under Article XXII, the Non-Breaching Party shall give written notice to the Breaching Party, describing, in
reasonable detail, to the extent known and applicable, the actions necessary to cure the event of breach. Upon receiving such notice, the Breaching Party shall have thirty (30) days to cure such breach. If the breach cannot be cured within thirty
(30) days, the Breaching Party shall commence in good faith all actions that are reasonable and appropriate to cure such breach within such thirty (30) day period, and thereafter shall pursue such action to completion. In the event that the
Breaching Party (a) fails to cure such breach or fails to take all actions that are reasonable and appropriate to cure such breach within thirty (30) days of receiving the notice from the Non-Breaching Party or (b) having commenced cure within such
thirty (30) day period, fails to complete cure within one hundred eighty (180) days of receiving the notice from the Non-Breaching Party, the Breaching Party shall be in default of this Agreement. 

  

	22.5	Continued Operations. In the event of a breach or a default by a Party, but prior to termination of this Agreement, the Parties shall continue to operate and maintain such
power systems, protective devices, metering equipment, transformers, communications equipment, building facilities, software, documentation, structural components, and other facilities, equipment, and 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	47	 	 

 appurtenances that are reasonably necessary to operate and maintain the EPE Transmission System and the
Facility in a safe and reliable manner. 
  

	22.6	Upon Default. Upon default, the non-defaulting Party may: (a) commence an action to require the Party in default to remedy such default and specifically perform its
obligations under this Agreement; (b) pursue other rights and remedies as it may have in law or equity (subject to the limitations set forth in Article XX); and/or (c) terminate this Agreement pursuant to Article 23.2. Notwithstanding the foregoing,
EPE may not terminate this Agreement upon a default by Generator provided that (x) EPE can be made whole by monetary damages, (y) Generator agrees to compensate EPE for damages suffered by it as a result of such default (subject to the limitations
set forth in Article XX) and (z) such default does not pose a threat to the safety or reliability of the EPE Transmission System. 

  

	22.7	Generator’s Default in Payment for Equipment. If Generator is in default of its obligation to reimburse or otherwise pay EPE for the cost of all or any part of EPE
Interconnection Facilities (the portion of such equipment for which Generator is in default of payment is herewith referred to as “Default Equipment”), then Generator shall pay EPE the sum of (a) the costs incurred by or on behalf of EPE
for the acquisition, installation and maintenance of such Default Equipment (including appropriate carrying charges on such Default Equipment calculated from the date of acquisition), (b) the costs incurred by or on behalf of EPE for labor with
respect to the Default Equipment, and (c) interest at the Interest Rate on the amounts specified in subparts (a) and (b) above calculated from the date of breach. If Generator is in default of its obligation to reimburse or otherwise pay EPE for the
cost of all or any part of the Interconnection System Upgrades (the portion of such upgrade for which Generator is in default of payment is herewith referred to as “Default Upgrade”), then Generator shall pay EPE the sum of (x) the costs
incurred by or on behalf of EPE for the acquisition, installation and maintenance of such Default Upgrade (including appropriate carrying charges on such Default Upgrade calculated from the date of acquisition), (y) the costs incurred by or on
behalf of EPE for labor with respect to the Default Upgrade, and (z) interest at the Interest Rate on the amounts specified in subparts (x) and (y) above calculated from the date of breach. 

  
 Article XXIII 
 TERMINATION 
  

	23.1	Expiration of Term. Except as otherwise provided in this Article XXIII, this Agreement shall terminate at the conclusion of the term set forth in Article 2.3.

  

	23.2	Termination in the Event of Default. Subject to Articles 23.3 and 22.6, EPE or Generator may each terminate this Agreement upon the default by the other Party upon: (a)
providing written notice of termination to the other Party; and (b) to the extent required, filing a notice of termination with FERC, which must be accepted for filing by FERC. 

  

	23.3	Survival. Termination of this Agreement shall not relieve any Party of any of its liabilities or obligations arising hereunder prior to the effective date of the termination
of this Agreement. In the event of termination, each Party may take whatever judicial or administrative actions are necessary to enforce its rights under this Agreement. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	48	 	 

	23.4	Disconnection and Disposition of Facilities Upon Termination. Upon termination of this Agreement, unless otherwise ordered or approved by FERC, the Operating Agent may
disconnect the Facility from the EPE Transmission System at the Afton Switching Station in accordance with a plan for disconnection which the Operating Committee approves or upon which the Parties agree. EPE may, in its sole discretion, retain or
dispose of any EPE Interconnection Facilities and Interconnection System Upgrades, provided that in either case Generator shall pay any applicable Termination Costs. 

  
 Article XXIV 
 CREDITWORTHINESS 
  
 For purposes of determining
Generator’s ability to meet its obligations hereunder during the term of this Agreement, EPE (including in its capacity as Operating Agent) may require Generator to provide and maintain in effect a letter of credit or other form of security to
meet Generator’s responsibilities and obligations or an alternate form of security consistent with commercial practices established by the Uniform Commercial Code that protects EPE against non-payment. In any instance where facilities to be
built require EPE to incur costs, EPE will not be obligated to incur any costs until Generator provides EPE with a letter of credit or other reasonable form of security acceptable to EPE, consistent with commercial practices as established by
Uniform Commercial Code, equivalent to the costs of the new facilities or upgrades.  
  
 Article XXV 
 RELATIONSHIP OF THE PARTIES 
  
 EPE (including in its capacity as Operating Agent) and Generator are independent contractors. Nothing in this Agreement
creates, or is intended to create, an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either of the Parties. Each Party shall be individually responsible for its
own covenants, obligations, and liabilities under the terms and conditions of this Agreement. 
  
 Article XXVI 
 REPRESENTATIONS AND WARRANTIES 
  

	26.1	Representations of EPE. EPE represents and warrants to the Generator as follows: 

  

	 	(a)	EPE is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas and EPE has the requisite corporate power and authority to carry on
its business as now being conducted; 

  

	 	(b)	 EPE has the requisite corporate power to execute and deliver this Agreement and to carry out the actions required of it by this Agreement. The execution and
delivery of this Agreement and the actions it contemplates have been duly and validly authorized by EPE and no other corporate proceedings on the part of EPE are necessary to authorize this Agreement or to consummate the transactions contemplated
hereby. This Agreement has been duly and validly executed and delivered by EPE and constitutes a legal, valid, and binding agreement of EPE enforceable against it according to its terms 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	49	 	 

	 	 
and conditions, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws of general
application relating to or affecting the enforcement of creditors’ rights and by general equitable principles; 

  

	 	(c)	EPE is not in violation of any Applicable Laws and Regulations promulgated or judgment entered by any Governmental Authority, which individually or in the aggregate would adversely
affect EPE’s entering into or performance of its obligations under this Agreement; 

	 	

	 	(d)	EPE’s entering into and performance of its obligations under this Agreement will not give rise to any default under any agreement to which it is a party; and

	 	

	 	(e)	EPE shall comply with all Applicable Laws and Regulations of all Governmental Authorities having jurisdiction over EPE or the transactions under this Agreement and with which
failure to comply could reasonably be expected to have a material adverse effect on EPE. 

  

	26.2	Representations of Generator. Generator represents and warrants to EPE as follows: 

  

	 	(a)	Generator is a corporation duly organized, validly existing, and in good standing under the laws of the State of New Mexico and Generator has the requisite corporate power and
authority to carry on its business as now being conducted; 

	 	

	 	(b)	Generator has the requisite corporate power to execute and deliver this Agreement and to carry out the actions required of it by this Agreement. The execution and delivery of this
Agreement and the actions it contemplates have been duly and validly authorized by Generator and no other corporate proceedings on the part of Generator are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by Generator and constitutes a legal, valid, and binding agreement of Generator enforceable against it according to its terms and conditions, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws of general application relating to or affecting the enforcement of creditors’ rights and by general equitable principles; 

	 	

	 	(c)	Generator is not in violation of any Applicable Laws and Regulations promulgated or judgment entered by any Governmental Authority, which individually or in the aggregate would
adversely affect Generator’s entering into or performance of its obligations under this Agreement; 

	 	

	 	(d)	Generator’s entering into and performance of its obligations under this Agreement will not give rise to any default under any agreement to which it is a party; and

	 	

	 	(e)	Generator shall comply with all Applicable Laws and Regulations of all Governmental Authorities having jurisdiction over Generator or the transactions under this Agreement and with
which failure to comply could reasonably be expected to have a material adverse effect on EPE. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	50	 	 

	26.3	Representations of Each Party. The representations and warranties set forth in Articles 26.1 and 26.2 shall continue in full force and effect for the term of this Agreement.

  
 Article XXVII 
 ASSIGNMENT 
  

	27.1	General. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns, but neither this Agreement
nor any of the rights, interests, or obligations hereunder shall be assigned by any Party, including by operation of law, without the prior written consent of the other Party, such consent not to be unreasonably withheld or delayed; provided,
however, that such prior consent shall not be required (a) for an assignment to an Affiliate or (b) for security for a financing party. Any assignment of this Agreement in violation of this Article XXVII shall be, at the option of the non-assigning
Party, void. The assignee shall expressly assume all of the assignor’s obligations under this Agreement. 

  

	27.2	EPE. Notwithstanding Article 27.1, any party with which EPE may consolidate, or into which it may merge, or into which it may convey or transfer substantially all of its
electric utility assets or part of the EPE Transmission System that includes the EPE Interconnection Facilities and Interconnection System Upgrades, or its interest in the Afton Switching Station, shall automatically and without the consent or
approval of Generator succeed to all of EPE’s rights, interests, duties and obligations under this Agreement. 

  

	27.3	Generator. Notwithstanding Article 27.1, any party with which Generator may consolidate, or into which it may merge, or into which it may convey or transfer substantially all
of its electric utility assets shall automatically and without the consent or approval of EPE succeed to all of Generator’s rights, interests, duties and obligations under this Agreement. 

  

	27.4	No Relief in Event of Assignment. No assignment shall relieve the assigning Party of its obligations under this Agreement in the event that the assignee fails to perform
under the terms and conditions of this Agreement, unless and until the assignee agrees in writing to assume the obligations and duties of the assigning Party and the non-assigning Party reasonably determines that the assignee is no less technically
and financially capable of performing its obligations under the Agreement than the assigning Party. 

  
 Article XXVIII 
 CONFIDENTIALITY 
  

	28.1	General. During the term of this Agreement and for a period of twelve (12) months after the expiration or termination of this Agreement, except as otherwise provided in this
Article XXVIII, each Party shall hold in confidence and shall not disclose any Confidential Information to any Person. A Party may disclose Confidential Information received from the other Party to the receiving Party’s auditors and attorneys,
Persons providing financing to the receiving Party, and to other third parties as may be necessary for the receiving Party to perform its obligations under this Agreement. To the extent that any disclosure of Confidential Information is necessary,
the disclosing Party shall endeavor to preserve the confidentiality of the Confidential Information. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	51	 	 

	28.2	Scope. Confidential Information shall not include any information that the receiving Party can demonstrate: (a) is generally available to the public other than as a result of
a disclosure by the receiving Party; (b) was in the lawful possession of the receiving Party on a non-confidential basis prior to receiving it from any other Party; (c) was supplied to the receiving Party without any restrictions by a third party
who, to the knowledge of the receiving Party, was under no obligation to any other Party to keep the information confidential; (d) was independently developed by the receiving Party; (e) is, or becomes, publicly known, through no wrongful act or
omission of the receiving Party or breach of this Agreement; or (f) is required, in accordance with Article 28.5, to be disclosed to any Governmental Authority or is otherwise required to be disclosed by law or subpoena, or is necessary in any legal
proceeding establishing rights or obligations under this Agreement. Confidential Information is not considered confidential if the Party that designated such information as confidential notifies the other Party that such information is no longer
confidential. 

  

	28.3	Rights in Confidential Information. Each Party retains all rights, title, and interest in the Confidential Information that it discloses to the other Party. The disclosure by
a Party to the other Party of Confidential Information shall not be deemed a waiver by any Party or any other Person or entity of the right to protect the Confidential Information from public disclosure. 

  

	28.4	Standard of Care. Each Party shall use the same standard of care to protect Confidential Information that it receives as it uses to protect its own Confidential Information
from disclosure, publication, or dissemination. 

  

	28.5	Required Disclosures. If a Governmental Authority requests or requires a Party to disclose Confidential Information, such Party shall provide prompt notice to the Party that
provided the Confidential Information of such request or requirement so that such other Party may seek an appropriate protective order or waive compliance with the terms of this Agreement. Notwithstanding the absence of a protective order or waiver,
a Party may disclose such Confidential Information which it is legally required to disclose. Each Party shall use Commercially Reasonable Efforts to obtain reliable assurances that confidential treatment will be accorded to Confidential Information
required to be disclosed. 

  

	28.6	Possession of Confidential Information at Termination of Agreement. Upon the termination or expiration of this Agreement and within ten (10) days of receipt of a written
request from the other Party, a Party shall destroy, erase, delete, or return to such other Party any and all written or electronic Confidential Information received from the other Party and shall retain no written or electronic copies of any
Confidential Information. 

  

	28.7	Remedies Regarding Confidentiality. The Parties agree that monetary damages by themselves may be inadequate to compensate a Party for another Party’s breach of its
obligations under Article XXVIII. Each Party accordingly agrees that the other Party may seek equitable relief, by way of injunction or otherwise, if it breaches or threatens to breach its obligations under Article XXVIII. 

 

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	52	 	 

 Article XXIX 
 DISPUTE RESOLUTION 
  

	29.1	Dispute Resolution by Operating Committee. To the extent that a dispute arises under this Agreement, the Party raising such dispute shall provide written notice of such
dispute to the other Party. Within ten (10) Business Days (or such other period as the Parties may agree upon) of the receipt of the notice by such Party, the Operating Committee shall convene in an attempt to resolve the dispute. If the Operating
Committee is able to resolve the dispute, such resolution shall be reported in writing and shall be binding on the Parties. 

  

	29.2	Dispute Resolution by Senior Management. If the Operating Committee is unable to resolve the dispute within thirty (30) Business Days of the receipt of such notice, then the
Parties shall refer the dispute to their respective senior management for resolution. If the senior management is able to resolve the dispute, such resolution shall be reported in writing and shall be binding on the Parties. In the event the senior
management is unable to resolve the dispute within thirty (30) Business Days (or such other period as the Parties may agree upon) of referral, the Parties may elect to proceed to arbitration pursuant to Article 29.3 or if the Parties do not agree to
proceed to arbitration within thirty (30) Business Days of the referral of the dispute to senior management, then each Party shall have the right to pursue any other rights or remedies that may be available at law or equity, subject to Article 20.3.

  

	29.3	Arbitration. 

  
 29.3.1 Commencement of Arbitration Proceeding. If the Operating Committee and the senior management are unable to resolve a dispute arising under this
Agreement pursuant to Articles 29.1 and 29.2, the Parties, by mutual written agreement, may submit the dispute to arbitration. Each Party shall submit a written statement detailing the nature of the dispute, designating the issue(s) to be
arbitrated, identifying the provisions of this Agreement under which the dispute arose, and setting forth such Party’s proposed resolution of such dispute. The arbitration shall be conducted in accordance with the provisions of this Article
XXIX, unless otherwise agreed in writing by the Parties. 
  
 29.3.2 Appointment of Arbitrator. Within ten (10) days of the date of the Parties’ written agreement to submit a dispute to arbitration, a representative of each Party shall meet for the purpose of selecting an arbitrator. If the
Parties’ representatives are unable to agree on an arbitrator within twenty (20) days of the date of the Parties’ written agreement to submit the dispute to arbitration, then an arbitrator shall be selected in accordance with the
procedures of the American Arbitration Association (“AAA”). Whether the arbitrator is selected by the Parties’ representatives or in accordance with the procedures of the AAA, the arbitrator shall, to the extent reasonably practicable
or unless otherwise agreed by the Parties, have the qualifications and experience in the occupation, profession, or discipline relevant to the subject matter of the dispute. 
  
 29.3.3 Arbitration Proceedings. Any arbitration proceeding shall be conducted in accordance with the commercial arbitration
rules of the AAA in effect on the date of the notice, except as may be specifically modified in this Agreement. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	53	 	 

 29.3.4 Authority of Arbitrator. The arbitrator shall be bound by the provisions of this Agreement where
applicable, and shall have no authority to modify any terms and conditions of this Agreement in any manner. The arbitrator shall render a decision, and may determine that monetary damages are due to a Party or may issue a directive that a Party take
certain actions or refrain from taking certain actions, but shall not be authorized to order any other form of relief; provided, however, that nothing in this Article 29.3 shall preclude the arbitrator from rendering a decision which adopts the
resolution of the dispute proposed by a Party. Unless otherwise agreed to by the Parties, the arbitrator shall render a decision within forty-five (45) days of the conclusion of the arbitration hearing, and shall notify the Parties in writing of
such decision and the reasons supporting such decision. The decision of the arbitrator shall be final and binding upon the Parties and may be enforced or challenged in any court of competent jurisdiction. The arbitrator shall have no authority to
award any damages inconsistent with the terms of this Agreement. The decision must also be filed at FERC if it affects FERC-jurisdictional rates, terms, and conditions of service or facilities. 
  
 29.3.5 Expenses and Costs. The fees and expenses of the arbitrator shall be
shared equally by the Parties, unless the arbitrator specifies a different allocation. All other expenses and costs of the arbitration proceeding shall be the responsibility of the Party incurring such expenses and costs. 
  
 29.3.6 Location of Arbitration Proceedings. Unless otherwise agreed by the
Parties, any arbitration proceedings shall be conducted in El Paso, Texas. 
  
 29.3.7 Confidentiality. The existence, contents, or results of any arbitration proceeding under this Article XXIX may not be disclosed without the prior written consent of the Parties; provided, however, that any
Party may make disclosures as may be required to fulfill regulatory obligations to any agencies having jurisdiction, seek or obtain from a court of competent jurisdiction judgment on, confirmation, or vacation of an arbitration award, and may inform
its lenders, Affiliates, auditors, attorneys, and insurers, and any Person providing it with financing, as necessary, under pledge of confidentiality and may consult with expert consultants as required in connection with an arbitration proceeding
under pledge of confidentiality. If a Party seeks preliminary injunctive relief from any court to preserve the status quo or avoid irreparable harm pending arbitration, the Parties shall keep the court proceedings confidential to the maximum extent
permitted by Applicable Laws and Regulations. 
  
 29.3.8
Preliminary Injunctive Relief. Nothing in this Article XXIX shall be construed to preclude the ability of any Party to resort to a court of competent jurisdiction solely for the purposes of securing a temporary or preliminary injunction to preserve
the status quo or avoid irreparable harm pending arbitration. This Article 29.3.8 shall not be construed as a waiver of arbitration under Article 29.3. 
  

	29.4	 FERC Jurisdiction Over Certain Disputes. Nothing in this Agreement shall be construed to preclude any Party from filing an application, petition or complaint
with FERC with respect to any claim over which FERC has jurisdiction. In such case, the other Party may request that FERC decline to adjudicate such application, petition or complaint. If FERC declines to adjudicate such application, petition or
complaint with respect to all or part of a claim, the portion of the claim not so accepted by FERC may be resolved through arbitration, as provided 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	54	 	 

	 	 
in this Article XXIX. To the extent that FERC asserts or accepts jurisdiction over all or part of a claim, the decisions, findings of fact, or orders of FERC
shall be final and binding, subject to judicial review under the Federal Power Act, and any arbitration proceedings that may have commenced prior to the assertion or acceptance of jurisdiction by FERC shall be stayed, pending the outcome of the FERC
proceedings. The arbitrator shall have no authority to modify, and shall be conclusively bound by, any decisions, findings of fact, or orders of FERC; provided, however, that to the extent that any decisions, findings of fact, or orders of FERC do
not provide a final or complete remedy to the Party seeking relief, such Party may proceed to arbitration under this Article XXIX to secure such a remedy, subject to any FERC decisions, findings, or orders. 

  

	29.5	Continued Performance. The Parties shall continue to perform their respective obligations under this Agreement during the pendency of any dispute including a dispute
regarding the effectiveness of the purported termination of this Agreement. 

  
 Article XXX 
 MISCELLANEOUS 
  

	30.1	Partial Invalidity. Wherever possible, each provision of this Agreement shall be interpreted in a manner as to be effective and valid under Applicable Laws and Regulations,
but if any provision contained herein shall be found to be invalid, illegal, or unenforceable in any respect and for any reason, such provision shall be ineffective to the extent, but only to the extent, of such invalidity, illegality, or
unenforceability without invalidating the remainder of the provision or any provision of this Agreement, unless such a construction would be unreasonable. If such a construction would be unreasonable or would deprive a Party of a material benefit
under this Agreement, the Parties shall seek to amend this Agreement to remove the invalid portion and otherwise provide the benefit, unless prohibited by Applicable Laws and Regulations. 

  

	30.2	Successors Included. Reference to any individual, corporation, or other entity shall be deemed a reference to such individual, corporation, or other entity together with its
successors and permitted assigns from time to time. 

  

	30.3	Applicable Laws and Regulations. This Agreement is made subject to all existing and future Applicable Laws and Regulations, and to all existing and future duly promulgated
orders or other duly authorized actions of Governmental Authorities having jurisdiction over the matters set forth in this Agreement. 

  

	30.4	Choice of Law and Jurisdiction. The interpretation and performance of this Agreement shall be in accordance with the laws of the State of New Mexico, without regard to choice
of law or conflict of laws principles that would require the application of the laws of a different jurisdiction. 

  

	30.5	 Entire Agreement. This Agreement supersedes all previous representations, understandings, negotiations, and agreements either written or oral between the
Parties or their representatives with respect to the subject matter hereof, and constitutes the entire agreement of the Parties with respect to the subject matter hereof. In the event of any inconsistency between the main body of 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	55	 	 

	 	 
this Agreement and the Appendices attached hereto and made a part hereof, the main body of this Agreement shall control. 

  

	30.6	Counterparts to this Agreement. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute
one and the same instrument. 

  

	30.7	Amendments. No amendments or changes to this Agreement shall be binding unless made in writing and duly executed by the Parties and accepted or approved by the FERC.
Notwithstanding any provisions in this Agreement to the contrary, Generator may exercise its rights under Sections 205 and 206 of the Federal Power Act and pursuant to FERC’s rules and regulations promulgated thereunder with respect to any
rate, term, condition, charge, classification of service, rule or regulation for any services provided under this Agreement over which FERC has jurisdiction. Notwithstanding any provisions in this Agreement to the contrary, EPE may unilaterally make
application to the FERC under Section 205 of the Federal Power Act and pursuant to FERC’s rules and regulations promulgated thereunder for a change in any rate, term, condition, charge, classification of service, rule or regulation under or
related to this Agreement. 

  

	30.8	Amendments Included. Reference to, and the definition of, any document (including this Agreement) shall be deemed a reference to such document as it may be amended, amended
and restated, supplemented, or modified from time to time. 

  

	30.9	Notices. Unless otherwise provided in this Agreement, any notice, consent, or other communication required to be made under this Agreement shall be in writing and shall be
delivered in person, by certified mail (postage prepaid, return receipt requested), or by nationally recognized overnight courier (charges prepaid), in each case properly addressed to such Party as shown below, or sent by facsimile transmission to
the facsimile number indicated below. Any Party may from time to time change its address for the purposes of notices, consents, or other communications to that Party by a similar notice specifying a new address, but no such change shall become
effective until it is actually received by the Party sought to be charged with its contents. All notices, consents, or other communications required or permitted under this Agreement that are addressed as provided in this Article 30.9 shall be
deemed to have been given (a) upon delivery if delivered in person, by overnight courier or certified mail or (b) upon automatically generated confirmation if given by facsimile. 

  
 Generator: 
  
 Senior Vice President 
 Bulk Marketing and Development 
 Public
Service Company of New Mexico 
 2401 Aztec Road, NE 
 Albuquerque, New Mexico 87107 
 Tel:    505-855-6250 
 Fax:    505-855-6368 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	56	 	 

 El Paso Electric Company: 
  
 Assistant Vice President, System Operations 
 El Paso Electric Company 
 123 W. Mills 
 El Paso, Texas 79901 
 Tel:    915-543-5711 
 Fax:    915-521-4763 
  
 Operating Agent: 
  
 Assistant Vice President, System Operations 
 El Paso Electric Company 
 123 W. Mills

 El Paso, Texas 79901 
 Tel:    915-543-5711 
 Fax:    915-521-4763 
  

	30.10	Waivers. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed as a waiver of such provision. Nor shall such Party’s
failure to enforce a provision affect in any way the validity of this Agreement or any portion thereof or the right of a Party thereafter to enforce each and every provision of this Agreement. To be effective, a waiver under this Agreement must be
in writing and specifically state that it is a waiver. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 

  

	30.11	No Third Party Beneficiaries. Except as provided in Article IX with respect to the WSCC for express purposes set forth in Article IX, nothing in this Agreement, whether
express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any Persons other than the Parties and their respective permitted successors and assigns. 

  

	30.12	Further Assurances. If any Party determines in its reasonable discretion that any further instruments, assurances, or other things are necessary or desirable to carry out the
terms of this Agreement, the other Party shall execute and deliver all such instruments or assurances, and do all things reasonably necessary or desirable to carry out the terms of this Agreement. Without limiting the generality of the foregoing,
EPE agrees, at Generator’s expense and upon Generator’s request, to prepare and/or provide such information in connection with this Agreement and/or the services to be provided under this Agreement as may be reasonably required by any
potential lender to Generator. 

  

	30.13	Headings. The headings contained in this Agreement are solely for the convenience of the Parties and shall not be used or relied upon in any manner in the construction or
interpretation of this Agreement. 

  

	30.14	Articles. Unless otherwise specified, all references in this Agreement to numbered articles shall be to numbered articles in this Agreement. 

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	57	 	 

	30.15	Number, Gender, and Inclusion. Defined terms in the singular shall include the plural and vice versa, and the masculine, feminine, or neuter gender shall include all genders.
Whenever the words “include,” “includes,” or “including” are used in this Agreement, they are not limiting, and have the meaning as if followed by the words “without limitation.” 

  

	30.16	Good Utility Practice. The Parties shall discharge any and all obligations under this Agreement in accordance with Good Utility Practice. 

  

	30.17	Succession Upon Membership in an RTO. If the Operating Agent joins an RTO, the terms and conditions provided in this Agreement for interconnection with the EPE Transmission
System at the Afton Switching Station shall be superseded by any pertinent interconnection and operational provisions required by the RTO, and the Parties shall amend this Agreement as necessary to conform with RTO requirements. Additionally,
if a change in the Operating Agent occurs under an RTO, the Parties shall amend this Agreement to reflect such change. 

  

	30.18	Notification of Change of Operating Agent. The Operating Agent will provide the other Party with advanced written notice of a change in the identity of the Operating Agent.

  

	30.19	Amended and Restated. The Interconnection Agreement is hereby amended and restated in its entirety as set forth in this Agreement. 

  
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date set forth at the
beginning of this Agreement. 
  

			
	 PUBLIC SERVICE COMPANY OF NEW MEXICO

		
	 By:
	 	 /s/ ROGER FLYNN

	 Title:
	 	 Executive Vice President &
 Chief Operating Officer

	
	EL PASO ELECTRIC COMPANY (INCLUDING IN ITS CAPACITY AS OPERATING AGENT)
		
	 By:
	 	 /s/ JOHN A. WHITACRE

	 Title:
	 	 Vice President - Transmission & Distribution

  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	58	 	 

 Appendix A 
 Equipment to be
Installed for Generator Interconnection Facilities 
  
 Appendix B 
 Equipment to be Installed for EPE Interconnection Facilities & Interconnection System Upgrades 
  
 Appendix C 
 EPE’s and Generator’s
Construction and Testing Schedule 
  
 Appendix D 
 Metering, Relay, and Communication Equipment 
  
 Appendix E 
 Interconnection Drawing and One-line and Schematics 

 
 Appendix F 
 Afton Plot Map 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	59	 	 

 APPENDIX A 
  
 EQUIPMENT TO BE INSTALLED 
 FOR
GENERATOR INTERCONNECTION FACILITIES 
 PHASE I 
  
 The Afton Power Project Phase I consists of a simple cycle turbine for peaking application and common facilities configured to allow for
immediate expansion to a combined cycle facility. The comprehensive design is based on interconnection studies that have been completed for the existing combustion turbine. The unit is being designed to current utility industry standards. Certain
items below are subject to bid change, field change, and manufacturer’s change but represent final design as of the date of execution of this Agreement. The equipment provided for the Facility is being designed to Generator design criteria.

  
 The following major items are to be installed, as defined in the Agreement, as
Generator’s Interconnection Facilities: 
  

	 	•	GE 18 kV generator low side breaker, synchronizing systems, relay and protective systems; 

  

	 	•	Waukesha 208 MVA 18kV: 345 kV autotransformer, three phase; 

  

	 	•	Interconnecting Isophase Al buss, PT’s, CT’s; 

  

	 	•	Steel reinforced concrete civil/foundation structures, conduit and cable trench as required, control and power cables, grounding and lightning protection system; and

  

	 	•	Interconnection to EPE communication equipment, interconnection to switchyard communication and control equipment. 

 APPENDIX B 
  
 EQUIPMENT TO BE INSTALLED FOR EPE INTERCONNECTION FACILITIES AND 
 INTERCONNECTION SYSTEM UPGRADES 
  
 EPE Interconnection Facilities and Interconnection System Upgrades. 
  
 The Afton Switchyard is configured for an ultimate arrangement of four (4) bays arranged in a breaker and a half arrangement. This ultimate
arrangement can accommodate four (4) 345 kV lines and three (3) generator connections. One breaker position will be a spare position. The initial switchyard installation will be two (2) bays arranged in breaker and a half arrangement. This initial
arrangement will provide connections for two (2) 345 kV lines and two (2) generators. The switchyard is being designed using EPE standards. 
  
 The Afton 345kV Switchyard will be connected to El Paso Electric Company’s (EPE) Luna to Newman 345kV Line by the construction of two (2) parallel single circuit
transmission lines (approximately 0.5 miles each) called the Afton to Luna line No. 1 and the Afton to Newman Line. 
  
 Each line will consist of three (3) phases using two (2) 795 kcmil, 45/7 strands ACSR code word “Tern” per phase and two (2) 3/8” EHS, 7 strands galvanized
steel overhead shieldwires. One shieldwire will carry integral fiber optic communications cable. 
  
 The conductors and shieldwires will be supported using direct embedded H-Frame tangent structures and single pole angle guyed tubular steel pole structures. 
  
 Connection to the existing EPE Luna to Newman Line will be by means of a flying tap
configuration. The new transmission lines will be insolated from each other by installing a self-supporting steel pole Deadend structure with drilled pier type foundations in the existing EPE Luna to Newman right of way. 
  
 The equipment being provided for the Switchyard was purchased using EPE specifications, as
follows: 
  

	 	•	Six (6) circuit breakers rated 362 kV, 1300 kV BIL, 2000 Amp, 40 kA interrupting rating. The breakers are provided with bushing current transformers and standard factory control
cabinets. These breakers are being provided by GE-Hitachi HVB, Inc. 

  

	 	•	Fourteen (14) 345 kV disconnect switches rated 362 kV, 1300 kV BIL, 2000 Amp, 100 kA withstand capability. Two of the switches are being provided with grounding switches. These
switches are Pascor Atlantic switches. 

  

	 	•	Fourteen (14) capacitor voltage transformers (CVT) rated 345 kV, 1300 kV BIL, with a ratio of 1800/3000 to 1. The CVT’s accuracy classification is 0.3MWXYZ, ZZ. The CVT’s
are being provided by Trench Limited. 

  

	 	•	Twelve (12) total current transformers (CT) as follows: 

  

	 	•	Six (6) current transformers (CT) rated 345kV, 1300kV BIL, with a ratio of 2000:5 AMR. The CT’s accuracy classification is 0.3B1.8. 

	 	•	Three (3) current transformers (CT) rated 345kV, 1300kV BIL, with a ratio of 300:5 A. The CT’s accuracy classification is 0.15B1.8 and have an extended range to provide
metering accuracy for the plant auxiliary loads as well as plant generation. 

  

	 	•	Three (3) current transformers (CT) rated 345kV, 1300kV BIL, with a ratio of 500:5 A. The CT’s accuracy classification is 0.15B1.8. The CT’s are being provided by Trench
Limited. 

  

	 	•	Structural Steel for transmission line dead ends and equipment supports. 

  

	 	•	DC system including batteries, battery rack, charger and panel boards. The DC system will be rated 125 volts. 

  

	 	•	120/208 volt AC auxiliary system including transformers, automatic transfer switch and panel boards. 

  

	 	•	Control building for housing the 125 v DC system and the 120/208 v AC system and the protective relay panels. 

  

	 	•	Protective relay and control panels for line and bus protection. Ten (10) line protection and control panels and two (2) bus protection and control panels will be included. The
protective relay and control panels will be designed to EPE standards. The panels include redundant revenue metering equipment. EPE designed and provided six (6) transmission line protective relay panels. 

  

	 	•	Conduit and cable trench. 

  

	 	•	Control and power cable. 

  

	 	•	Grounding system consisting of cable, ground rods and connections to equipment. 

  

	 	•	Lightning protection system consisting of shield wires connected to the transmission line dead ends. 

  

	 	•	Switchyard bus rated 2000 amp. The bus will consist of aluminum tube and ACSR conductor. 

  

	 	•	Lightning system mounted on the switchyard steel structures. 

  

	 	•	Bus support insulators. 

  

	 	•	Crushed rock for covering the switchyard. 

  

	 	•	Switchyard fence. 

  

	 	•	Interconnection to EPE communications equipment. 

  

	 	•	Interconnection to the Generators plant equipment. 

  

	 	•	Costs associated with transfer of a portion of the BLM 102630 R-O-W 

  
 Total cost of EPE Interconnection Facilities and Interconnection System Upgrades, including installation, labor and overheads: 
  
 $8,539,351.82 (per Generator accounting records as of June 3, 2003)

  
 To allocate the $8,539,351.82 into EPE Interconnection Facilities Costs and
Interconnection System Upgrade Costs, a detailed estimate of the costs of the facilities between the Interconnection Point and Generator’s side of air switch 32485 was obtained from the two primary contractors. The resulting estimate of
$400,016.38 represents the cost of the EPE Interconnection Facilities. The cost of the Interconnection System Upgrades is equal to the remaining amount of $8,139,335.44. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	 	 	 

 EPE Interconnection Facilities Costs 
  
 EPE Interconnection Facilities 
  

			
	 	  	 Steel and Apparatus

	12,198.00	  	 High Switch Support Stand

	54,947.00	  	 Single Bay Dead End Tower at Generator Step Up Transformer

	68,072.50	  	 50% of Double Bay Dead End Tower in Afton Switchyard

	47,925.00	  	 Current Transformer (3 – single phase, ratio: 300:5, accuracy: 0.15B1.8)

	28,288.00	  	 Disconnect Switch at Generator Step Up Transformer

	

	$211,430.50	  	 Subtotal Steel and Apparatus *

		
	 	  	 Installation, Labor, Hardware, Grounding, Foundations, Appurtenances

	60,869.50	  	 50% of Double Bay Deadend in Afton Switchyard

	21,422.00	  	 Conductor & Static between Deadend Towers

	71,216.00	  	 Single Bay Deadend at Generator Step up Transformer

	

	 	  	 Subtotal Installation, Labor, Hardware, Grounding, Foundations,

	$153,507.50	  	 Appurtenances **

		
	$364,938.00	  	 Total Direct Costs Associated with EPE Interconnection Facilities

	

	$35,078.38	  	 Overhead Costs (ratably allocated)

	

	$400,016.38	  	 Total EPE Interconnection Facilities (radial facilities)

	

  
 EPE Interconnection Facilities costs
are broken down into a listing for steel and apparatus and for the associated costs of installation, labor, hardware, grounding, foundations, appurtenances required to put the steel and apparatus into service. 

	*	allocation of costs to EPE Interconnection Facilities per estimate provided by Power Engineers 

	**	allocation of costs to EPE Interconnection Facilities per estimate provided by Great Southwestern 

  
 Interconnection System Upgrade Costs 
  
 Interconnection System Upgrades 
  

			
	 	  	 Total Direct Costs associated with Interconnection System

	$7,425,577.93	  	 Upgrades

	$713,757.51	  	 Overhead Costs (ratably allocated)

	

	$8,139,335.44	  	 (a) Total Interconnection System Upgrades (network upgrades)

  

	Note:	The dollar values and allocations in this Appendix B were provided by Generator as of June 3, 2003 and are subject to audit by EPE in accordance with Article 7.1.3.

  
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New Mexico
	 	 	 	 

 

 

 APPENDIX C 
  
 EPE’S AND GENERATOR’S CONSTRUCTION AND TESTING SCHEDULE 
  
 As of the Effective Date of this Agreement the Parties have completed the construction and testing schedule. 
  

					
	 First Amended and Restated
 Interconnection Agreement between
 El Paso Electric Company and
 Public Service Company of New MexicoLEASE AGREEMENT

 Exhibit 10.1 
  
 LEASE AGREEMENT 
  
 This LEASE is made and entered into as of this 1st day of January 2004, by and between BOMBAY HOLDINGS, INC., a Florida corporation (hereinafter referred to as
“LANDLORD”) and BANKRATE, INC., a Florida corporation (hereinafter referred to as “TENANT”). 
  
 WITNESSETH: 
  
 LANDLORD does lease unto TENANT, and TENANT does hereby hire and take as lessee under LANDLORD four spaces consisting of a total of 14,261 square feet, designated as
follows: 
  

			
	 Suite 101
	 	3,440 square feet
	 Suite 104
	 	3,357 square feet
	 Suite 200
	 	3,987 square feet
	 Suite 205
	 	3,477 square feet

  
 (Hereinafter referred to as the
“Demised Premises”), as shown outlined on Exhibit “A” attached hereto, of that certain building and other improvements (“Building”) located in Palm Beach County, Florida at 11811 U.S. Highway One, North Palm Beach,
Florida. 
  
 1. TERM: 
  
 The term of this Lease shall be for three (3) years commencing on January 1, 2004, and will
terminate on December 31, 2006. 
  
 2. RENT:

  
 A. TENANT agrees to pay to LANDLORD, without demand, setoff or deduction,
base annual rent (“Rent”) in the amount of fourteen and 50/100 dollars ($14.50) per square foot of space in the Demised Premises, payable in equal monthly installments. Base Rent shall increase annually based upon the change in CPI Index
(as hereinafter defined), from the date hereof commencing with the second lease year. TENANT will pay its proportionate share of real estate taxes and common area maintenance (CAM) charges. TENANT agrees to pay applicable Florida State sales tax.

  
 B. Each monthly installment of Rent shall be payable in advance on the first
(1st) day of each calendar month of the term to LANDLORD (except for the first month’s rent which is due and payable upon execution of this lease) at such place as LANDLORD may from time to time designate in writing. TENANT shall have a grace
period of five (5) days. In the event that any payment is not paid by TENANT within five (5) days of the due date, then, at LANDLORD’S option, a late charge of eighteen (18%) per cent per annum of such payment or the highest rate permitted by
law for such period shall become immediately due and payable to LANDLORD. 
  
 3. USE: 
  
 TENANT, its successors and assigns,
shall use the Demised Premises for administration offices and for no other purpose without the written consent of LANDLORD, which consent may not be unreasonably withheld as long as the use sought is in compliance with the existing zoning. TENANT
shall comply with all laws, ordinances, rules and regulations of applicable governmental authorities respecting the use, operation and activities of the Demised Premises, and TENANT shall not make, suffer or permit any unlawful, improper or
offensive use of the Demised Premises or Building, or any part thereof or permit any nuisance thereon. TENANT shall not make any use of the Demised Premises which would make void or voidable any policy of fire or extended coverage insurance covering
the Demised Premises. TENANT shall use the Demised Premises only for the purposes stated in this Lease and shall not leave said Demised Premises abandoned or suffer or permit any waste or mistreatment thereof. 

 4. OPERATING EXPENSE: 
  
 TENANT shall pay to LANDLORD as “Additional Rent” an amount representing TENANT’S proportionate share of LANDLORD’S
“Expenses” (as hereinafter defined) associated with operating the Building in accordance with the terms and conditions of this Lease. 
  
 A. For purposes of this Lease, the following definitions shall apply: 
  
 1. The term “Percentage” shall mean 76.61%. The Percentage has been computed on the basis of a fraction, the numerator of which is the agreed
upon square foot area of the Demised Premises and the denominator of which is the agreed upon total square foot area of the Building which is eighteen thousand six hundred and fifteen (18,615) square feet. 
  
 2. The term “Expenses” shall mean the sum of “Taxes,”
“Insurance” and “Operating Expenses” (as hereinafter defined): 
  
 (a) The term “Taxes” shall mean the total of all real estate taxes and special or other assessments levied, assessed or imposed at any time by any governmental authority upon or against the Building.

  
 (b) The term “Insurance” shall mean the total of all
costs and expenses incurred, borne, or accrued by LANDLORD with respect to the Building for insurance for fire, extended coverage, sprinkler apparatus, public liability, property damage including windstorm and hailstorm, rental, plate glass, and any
other insurance required by mortgagee with respect to the Building. 
  
 (c) The term “Operating Expenses” shall mean the total of the costs and expenses incurred, borne or accrued by LANDLORD with respect to the ownership, operation, maintenance and use of the Building other than Taxes and Insurance,
which, in, accordance with sound accounting and management principles generally accepted with respect to the operation of first class office space, would be construed as an operating expense. Such expenses shall not include anything connected with
the structure or roof of the Building or for which LANDLORD has a right of reimbursement from others or those occasioned by the act, omission or violation of law by LANDLORD, its agents or employees. 
  
 (d) The foregoing definitions notwithstanding, “Operating Expenses”
shall not include any maintenance or repairs to HVAC equipment which services the Demised Premises. Such expenses and costs shall be the sole responsibility of the TENANT. TENANT agrees to enter into a continuing HVAC maintenance service contract
with Couse Air Conditioning, Hobe Sound, Florida, for regularly scheduled maintenance service. The terms and conditions of the contract shall be subject to the approval of the LANDLORD. 
  
 (e) In consideration for exclusive use by the TENANT of the anteroom, hallway and men’s and ladies rest rooms located
adjacent to Suite 104, first floor north side, in lieu of rent, TENANT agrees to pay for the expense of maintenance and cleaning of these areas. 
  
 B. Commencing on the Lease Commencement Date TENANT shall pay to LANDLORD, as additional rent, an amount equal to the product of the Percentage times the Expenses
applicable to the portion of the Term of the Lease specified in a statement from LANDLORD with respect thereto. 
  
 C. (1) LANDLORD shall render to TENANT a statement containing a computation of additional rent due under this Lease (“Landlord’s Statement”) at any time
and from time to time as such becomes due. Within ten (10) days after the rendition of the Landlord’s Statement which shows additional rent to be due and payable, TENANT shall pay to LANDLORD the amount of such additional rent. On the first day
of each month following rendition of each Landlord’s Projected Annual Statement, TENANT shall pay to LANDLORD, on account of the potential additional rent, a sum equal to one-twelfth (1/12) of the annualized additional rent, which sum shall be
subject to adjustment at any time to reflect any increase or decrease in Expenses. 
  
 (2) The obligations of LANDLORD and TENANT under the provisions of this Lease shall survive the expiration or any early termination of the Term. 
  

 2 

 5. CONSUMER PRICE INDEX: 
  
 “Consumer Price Index” means the Consumer Price Index - All Urban Consumers - Miami/Fort Lauderdale, Florida (all items) of the
U.S. Bureau of Labor Statistics. If the manner in which the Consumer Price Index is determined by the Bureau of Labor Statistics shall be substantially revised, an adjustment shall be made in such revised index which would produce results,
equivalent, as nearly as possible, to those which would have been obtained if the Consumer Price Index had not been so revised. If the Consumer Price Index shall become unavailable to the public because publication is discontinued, or otherwise,
LANDLORD will substitute therefore a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall be available, then a comparable index
published by a major bank or other major financial institution or by a major university. The CPI applies to Base Rent only. Operating Expense is on an actual basis. 
  
 6. QUIET ENJOYMENT: 
  
 LANDLORD covenants that so long as TENANT pays the rent reserved in this Lease and performs its agreements hereunder, TENANT shall have the
right to quietly enjoy and use the Demised Premises for the term hereof, subject only to the provisions of this Lease. 
  
 7. ASSIGNMENT AND SUBLETTING: 
  
 TENANT, for itself, its successors and assigns expressly covenants that it shall not assign, mortgage or encumber this Lease, nor sublet the Demised Premises or any part
thereof, or license or permit the Demised Premises or any part thereof to be used by others, without the prior written consent of the LANDLORD, which shall not be unreasonably withheld. 
  
 8. DEFAULT: 
  
 A. The occurrence of any one or more of the following events shall constitute a default hereunder by TENANT (an “Event of Default”): 
  
 1. If Base Rent or Additional Rent is not paid within five (5) days after it
is due and payable; 
  
 2. If TENANT shall have failed to cure a
default in the performance of any of the other terms, covenants or provisions of this Lease (except payment of rent) or any rule or regulation hereinafter set forth within fifteen (15) days after written notice thereof, or if such default is of a
nature that it cannot be completely remedied within said fifteen (15) day period, and TENANT shall not commence within said fifteen (15) days and shall not thereafter diligently procure to completion all steps necessary to remedy such default;

  
 3. If a petition in bankruptcy shall be filed by or against
TENANT or if TENANT shall make a general assignment for the benefit of creditors, or receive the benefit of any insolvency or reorganization act; 
  
 4. If a receiver or trustee is appointed for any portion of TENANT’S property and such appointment is not vacated within sixty (60) days; 

 
 5. If an execution or attachment shall be issued under which the Demised
Premises shall be taken or occupied or attempted to be taken or occupied by anyone other than TENANT; 
  
 6. If the Demised Premises become and remain vacant, deserted or abandoned for a period of thirty (30) consecutive days; 
  
 7. If the Demised Premises are used for some purpose other than the use
specifically authorized herein. 
  
 B. If TENANT shall default in performing any
covenant or condition of this Lease, LANDLORD may perform the same for the account of TENANT, and TENANT shall reimburse LANDLORD for any expense incurred therefor as additional rent. 
  

 3 

 9. REMEDIES: 
  
 Upon the occurrence of an Event of Default: 
  
 1. LANDLORD may re-enter the Demised Premises by summary proceedings or otherwise and re-let the Demised Premises, or any part thereof, as TENANT’S
agent, in the name of LANDLORD or otherwise for a term shorter or longer than the balance of the term of this Lease, and may grant concessions of free rent, make improvements to the Demised Premises, and may grant any other concessions in connection
therewith as are necessary to re-let the Demised Premises. In computing the net amount of rents collected through such re-letting, LANDLORD may deduct all reasonable expenses incurred in obtaining repossession or re-letting the Demised Premises,
including rent concessions, attorney’s fees, brokerage fees, the cost of restoring or improving the Demised Premises, and the cost of all alterations and decorations deemed necessary by LANDLORD to effect re-letting. In no event shall TENANT be
entitled to a credit or repayment for re-rental income which exceeds the sums payable by TENANT hereunder. 
  
 2. LANDLORD may give TENANT fifteen (15) days notice of termination of this Lease. Upon the expiration of the fifteen (15) day notice period, this Lease
and any rights of renewal or extension thereof shall come to an end and shall terminate as if that were the date originally fixed for the expiration of the term of this LEASE, but TENANT shall remain liable as hereinafter provided. 
  
 3. LANDLORD may accelerate and claim and demand, as liquidated and agreed
upon damages, immediate payment of a sum equal to the amount by which the Base Rent and all forms of additional rent (as reasonably estimated by LANDLORD), due for the remainder of the term of this Lease and any extensions thereof which may have
been exercised by TENANT, exceeds the then fair and reasonable rental value of the Demised Premises for the same period, both discounted to present worth at the rate of twelve (12%) percent per annum. If, before presentation of proof of such
liquidated damages to any court, commission or tribunal, the Demised Premises or any part thereof shall have been re-let by LANDLORD for the period which otherwise would have constituted the unexpired portion of the term or any part thereof, the
amount of rent reserved upon such re-letting shall be deemed, prima facie, to be the fair and reasonable rental value for the part or the whole of the Demised Premises so re-let during the term of the re-letting. 
  
 4. LANDLORD may pursue any other remedy available to it at law or in equity.

  
 10. LIENS: 
  
 A. TENANT herein shall not have any authority to create any liens for labor or material on
LANDLORD’S interest in the land, building or Demised Premises. All materialmen, contractors, mechanics, and laborers, and all persons contracting with TENANT, are hereby charged with notice that they must look only to TENANT and TENANT’S
interests in the Demised Premises to secure any payment. At LANDLORD’S request, TENANT agrees to obtain and deliver to LANDLORD written and unconditional waivers and releases of any such liens. 
  
 B. TENANT agrees that TENANT will pay all charges of contractors, subcontractors, mechanics,
laborers, materialmen and other items of like character incurred by TENANT with respect to the Demised Premises, and will indemnify, defend and hold LANDLORD harmless from and against any and all expenses, costs and charges, including bond premiums
for release of liens and reasonable attorney’s fees incurred in connection with the defense of any suit in discharging the said Demised Premises or any part thereof from any liens, judgments or encumbrances caused or suffered by TENANT. In the
event any such lien shall be made or filed, TENANT shall bond against or discharge the same within ten (10) days after the same has been made or filed. It is understood and agreed between the parties hereto that the expenses, costs and charges
referred to above shall be considered as additional rent and shall be included in any lien for rent. 
  
 11. CHANGE IN OWNERSHIP OF TENANT: 
  
 A. Corporation or Partnership; LANDLORD’s Right to Terminate. 
  
 If TENANT is a corporation or partnership and if the ownership thereof shall materially change at any time during the term of this lease from the present composition of
same as it may exist at any time, or if a substantial portion of the assets of TENANT shall be sold, assigned or transferred with or without a specific assignment of this lease; or, if TENANT shall merge or consolidate with any other firm or
corporation, LANDLORD may, at its option, by giving thirty (30) days prior written notice to TENANT, declare such change a breach of this Lease subject to the remedies provided for breach in Paragraph 9 hereof. 
  

 4 

 1. Corporation ownership shall be deemed to have materially changed if the number of its voting shares of
any class or series, constituting one third (33.3%) of the number thereof outstanding from time to time shall be transferred by either the owners thereof or by the corporation, and such transfer of shares shall not first be approved in advance in
writing by LANDLORD, such approval not to be unreasonably withheld. Notwithstanding the foregoing, said approval shall not be required if all of the following conditions are met: 
  
 A. TENANT shall become or remain liable as a guarantor of the assignee’s obligation under the Lease, as assigned, and

  
 B. The proposed assignees shall be of such character and
financial standing and responsibility at the time of the assignment so as to give reasonable assurance to LANDLORD of the payment of all rents and other assignments issued hereunder and compliance with all of the terms and conditions of the Lease.

  
 2. Partnership ownership shall be deemed to have materially
changed if partners holding one third or more of the partnership interests have changed at any time during the term of this Lease, or one or more general partners of a limited partnership have changed at any time during the term hereof and such
change has not been approved in advance in writing by LANDLORD. 
  
 B. Proprietorship; LANDLORD’s Right to Terminate. 
  
 If TENANT is a sole proprietorship, LANDLORD shall have the option, without prejudice to the remedies available to it hereunder or otherwise, to terminate this Lease in the event of TENANT’s incapacity, death or cessation of day-to-day
management upon sixty (60) days prior written notice to TENANT or his legal representative. 
  
 C. Notice to LANDLORD. 
  
 TENANT shall immediately give written notice to LANDLORD of any change in ownership contemplated by this Paragraph 11. 
  
 12. INSURANCE: 
  
 A. TENANT agrees to maintain, at TENANT’S sole cost and expense, comprehensive general
liability insurance in standard form in favor of LANDLORD and TENANT against claims for bodily injury or death or property damage occurring in or upon the Demised Premises, effective as of the date TENANT enters into possession of the Demised
Premises and throughout the term of this lease. Such occurrences shall be in the amount of not less than one million dollars ($1,000,000) for injury to one person in one accident, occurrence or casualty, and not less than two million dollars
($2,000,000) for injuries to more than one person in one accident, occurrence or casualty. TENANT shall also carry property damage insurance in an amount of not less than fifty thousand dollars ($50,000) for damage to property in any one occurrence.
Any insurance policies required hereunder shall name LANDLORD as an additional insured and shall provide that they may not be modified or terminated without thirty (30) days advance notice to LANDLORD. At or prior to possession, TENANT shall furnish
to LANDLORD evidence of such insurance coverage by way of either a copy of the actual insurance policy and any amendments and endorsements thereto or a certificate of insurance clearly evidencing each of the coverages and provisions set forth in
this section. Upon TENANT’S default in obtaining or delivering the policy or certificate for any such insurance or TENANT’S failure to pay the charges therefor, LANDLORD may, but shall not be obligated, to procure or pay the charges for
any such policies and charge the TENANT therefor as additional rent. 
  
 B. TENANT
shall not do anything, or permit anything to be done, in or about the Demised Premises which shall: 
  
 1. Invalidate or be in conflict with the provisions of any fire or other insurance policies covering the building or any property located therein.

  
 2. Result in a refusal by fire insurance companies of good
standing to insure the building or any such property in amounts reasonably satisfactory to LANDLORD. 
  
 3. Subject LANDLORD to any liability or responsibility for injury to any person or property by reason of any business operation being conducted in the
Demised Premises. 
  

 5 

 4. Cause any increase in the fire insurance Rates applicable to the building or property located therein
at the beginning of the Lease term or at any time hereafter. 
  
 TENANT, at
TENANT’S expense, shall comply with all rules, regulations or requirements of the applicable Board of Fire Underwriters, and the fire insurance rating organizations and any similar bodies. TENANT shall pay all costs, expenses, fines, penalties
or damages, which may be imposed upon LANDLORD by reason of TENANT’S failure to comply with the provisions of section B of clause 12 of this Lease and if, by reason of such failure, the fire insurance shall at the beginning of this Lease or at
any time thereafter be higher than it otherwise would be, then TENANT shall reimburse LANDLORD, as additional rent hereunder, for that portion of all fire insurance premiums thereafter paid by LANDLORD which shall have been charged because of such
failure by TENANT. 
  
 13. SUBROGATION:

  
 LANDLORD and TENANT and their successors or assigns hereby waive any and all
rights of action for negligence against the other party hereto which may hereafter arise for damage to the Demised Premises or to property therein resulting from any fire or other casualty of the kind covered by standard fire insurance policies with
extended coverage, regardless of whether or not, or in what amounts, such insurance is now or hereafter carried by the parties hereto, or either of them. The foregoing release and waiver shall be in force only if both releasors’ insurance
policies contain a clause providing that such a release or waiver shall not invalidate the insurance and also provided that such a policy can be obtained without additional premiums. 
  
 14. COMPLIANCE: 
  

A. TENANT shall, at its expense, comply with all Rules and Regulations which may be adopted from time to time and with all laws, orders and regulations of any
governmental authority having or asserting jurisdiction in connection with the Demised Premises or the use or occupancy thereof. 
  
 B. TENANT shall at no time use or occupy the Demised Premises in violation of the certificate of occupancy issued for the Building or Demised Premises. TENANT shall
comply with all applicable building, zoning and land use codes and ordinances throughout the term of this Lease. 
  
 15. LANDLORD’S REPAIRS AND ALTERATIONS: 
  
 LANDLORD shall be responsible for all structural repairs to the Demised Premises and all repairs and maintenance for all public areas and facilities, except such repairs
(whether structural or otherwise) and maintenance as may be necessitated by the negligence, improper care or use of the Demised Premises and public areas by TENANT, its agents, employees, licensees or invitees, which shall be made by TENANT, at
TENANT’S expense, and except to the extent such repairs may be recovered by any insurance which TENANT is required to maintain hereunder. 
  
 16. TENANT’S REPAIRS AND ALTERATIONS: 
  
 A. TENANT shall take good care of the Demised Premises and, subject to the provisions of clause 15 hereof, shall make as and when needed all repairs in and about the
Demised Premises necessary to preserve them in good order and condition, which repairs shall be in quality and class equal to the original work. Except in the event of condemnation, there shall be no allowance to Tenant for a diminution of rental
value and no liability on the part of LANDLORD by reason of inconvenience, annoyance or injury to business arising from LANDLORD, TENANT or others making any repairs, alterations, additions or improvements in or to any portion of the building or the
Demised Premises, or in or to the fixtures, appurtenances or equipment thereof, and no liability upon LANDLORD for failure of LANDLORD or others to make any repairs, alterations, additions or improvements in or to any portion of the Building or of
the Demised Premises, or in or to the fixtures, appurtenances or equipment thereof. Any repairs which Tenant may be required to carry out pursuant to the terms hereof may, at LANDLORD’S option, be made by LANDLORD at the expense of TENANT, and
the expenses thereof incurred by LANDLORD shall be collectible as additional rent after the rendition of a bill or statement therefor. 
  
 B. TENANT shall make no alterations or improvements to the Demised Premises without LANDLORD’S prior written consent, which shall not be unreasonably withheld. All
installations or work done by or on behalf of TENANT shall be done in a good and workmanlike manner and shall at all times comply with all laws, rules, orders and regulations of all governmental authorities having or asserting jurisdiction in all
connection therewith; and with the rules and regulations of LANDLORD. TENANT shall obtain, at its expense all necessary governmental approvals and permits. 
  

 6 

 17. FIXTURES AND INSTALLATIONS: 
  
 All appurtenances, fixtures, improvements, additions and other property attached to or built
into the Demised Premises, whether by LANDLORD or TENANT or others, and whether at LANDLORD’S expense, or TENANT’S expense, or the joint expense of LANDLORD and TENANT, shall become and remain the property of LANDLORD, and shall remain
upon and be surrendered with the Demised Premises, unless LANDLORD, by notice to TENANT no later than thirty (30) days prior to the date fixed as the termination of this lease, elects to have them removed by TENANT, in which event the same shall be
removed by TENANT at TENANT’S expense. Nothing in this clause shall be construed to prevent TENANT’S removal of trade fixtures but, upon removal of any such trade fixtures from the Demised Premises or upon the removal of other
installations as may be required by LANDLORD, TENANT shall immediately, at its expense, repair and restore the Demised Premises to the condition existing prior to installation and shall repair any damage to the Demised Premises or the Building due
to such removal. All property permitted or required to be removed by TENANT at the end of the term, which remains in the Demised Premises after TENANT’S removal, shall be deemed abandoned and may, at the election of LANDLORD, either be retained
as LANDLORD’S property or may be removed from the Demised Premises at TENANT’S expense. 
  
 18. CONDITION OF PREMISES: 
  
 TENANT’s taking possession of the Demised Premises shall be conclusive evidence as against TENANT that the Demised Premises were in good order and satisfactory
condition when the TENANT took possession. At the termination of this Lease, the TENANT shall return the Demised Premises broom-clean and in as good condition as when the TENANT took possession, ordinary wear and tear or loss by fire or other
casualty excepted, failing which the LANDLORD may restore the Demised Premises to such condition and the TENANT shall pay the cost thereof on demand. The air conditioning, heating, electrical and plumbing systems should be in good working order
prior to TENANT taking possession. 
  
 19.
SECURITY DEPOSIT: 
  
 TENANT has deposited with LANDLORD the sum of $ -0- as
security for the full and faithful performance of every provision of this Lease to be performed by TENANT. If TENANT defaults with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of Rent,
LANDLORD may use, apply or retain all or any part of this security deposit for the payment of any Rent or other sum in default or for the payment of any other amount which LANDLORD may spend or become obligated to spend by reason of TENANT’s
default, or to compensate LANDLORD for any other loss, cost or damage which LANDLORD may suffer by reason of TENANT’s default. 
  
 If any portion of said deposit is so used or applied, TENANT shall, within five (5) days after written demand therefor, deposit cash with LANDLORD in an amount sufficient
to restore the security deposit to its original amount and TENANT’s failure to do so shall constitute a breach of this Lease. LANDLORD shall not, unless required by law, be required to pay interest on the security deposit to the TENANT.

  
 If TENANT shall fully and faithfully perform every provision of this Lease,
the security deposit or any balance thereof shall be returned to TENANT (or at LANDLORD’s option, to the last transferee of TENANT’s interest hereunder) within fifteen (15) days after the expiration of the Lease term, provided TENANT has
vacated the premises. In the event the building is sold, the security deposit will be transferred to the new owner. 
  
 20. SIGNAGE: 
  
 TENANT is allowed to display the name of its business on the front door of its Demised Premises; the front door is defined as being on the east side of the building. The
location and type of signs shall be mutually agreed upon by TENANT and LANDLORD. The TENANT shall not display, inscribe, print, paint, maintain or affix on any place about the building any sign, notice, legend, direction, figure or advertisement,
except on the front door of the Demised Premises and on the directory board, and then only such name(s) and matter, and in such color, size, style, place and materials as shall first have been approved by LANDLORD. The listing of any name other than
that of TENANT, whether on the front door of the Demised Premises or on the directory board, shall not vest any interest in the Lease or in the Demised Premises, it being expressly understood that any such listing is a privilege extended by LANDLORD
revocable at will by written notice to TENANT. 
  

 7 

 TENANT is allowed to display the name of its business and its web site address on the owner’s monument sign located
to the immediate east of the east parking lot in such color, size, style, place and materials as shall first have been approved by LANDLORD. The electrical cost and maintenance of the owners’ sign shall be at TENANT’S sole cost and
expense. 
  
 21. HOLDING OVER: 
  
 If the TENANT retains possession of the premises or any part thereof after the termination
date of this Lease, the TENANT shall pay to the LANDLORD rent at double the monthly rate payable by the TENANT with respect to the last full calendar month prior to the termination date of this Lease for the time the TENANT remains in possession
and, in addition thereto, shall pay the LANDLORD for all damages, consequential as well as direct, sustained by reason of the TENANT’s retention of possession. 
  
 22. CERTIFICATES: 
  

A. TENANT will, within 10 (ten) days of written request from LANDLORD, certify in writing to LANDLORD’S designee (i) whether or not the lease has been modified or
amended; (ii) the date to which rent has been paid; and (iii) whether TENANT has any knowledge of LANDLORD’S default hereunder. 
  
 B. LANDLORD will, within 10 (ten) days of written request from TENANT, certify in writing to TENANT’S designee (i) whether or not the Lease has been modified or
amended; (ii) the date to which rent has been paid; and (iii) whether LANDLORD has any knowledge of TENANT’S default hereunder. 
  
 23. CONDEMNATION: 
  
 LANDLORD reserves unto itself, and TENANT assigns to LANDLORD, all right to damages accruing on account of any taking or condemnation of any part of the building, or by
reason of any act of any public or quasi-public authority for which damages are payable. TENANT agrees to execute such instruments or assignments as may be required by LANDLORD, to join with LANDLORD in any petition for the recovery of damages if
requested by LANDLORD, and LANDLORD agrees to turn over to TENANT its proportionate share of any such damages that may be recovered in any such proceeding. LANDLORD does not reserve for itself, and TENANT does not assign to LANDLORD, any damages
payable for trade fixtures installed by TENANT at its cost and expense and which are not part of the realty, or any moving expense, relocation expense, or loss of business claim. 
  
 24. SUBORDINATION OF LEASE: 
  
 This Lease is and shall be subject and subordinate to any and all mortgages or deeds of trust now existing upon or that may be hereafter
placed upon the Demised Premises or the property and to all advances made or to be made thereon, and all renewals, modifications, consolidations, replacements or extensions thereof and the lien of such mortgages, deed of trust and land leases shall
be superior to all rights hereby and hereunder vested in TENANT, to the full extent of all sums secured hereby. This provision shall be self-operative and no further instrument of subordination shall be necessary to effectuate such subordination and
the recording of any such mortgage or deed of trust shall have preference and precedence and be superior and prior in lien to this Lease, irrespective of the date of recording. In confirmation of such subordination, TENANT shall on request of
LANDLORD or the holder of any such mortgage or deed of trust execute and deliver to LANDLORD within ten (10) days any instrument that LANDLORD or such holder may reasonably request. 
  
 Should any prospective mortgagee or ground lessor require a modification of this Lease, which modification will not cause an increased cost
or expense to TENANT or in any other way materially change the rights and obligations of TENANT hereunder in the reasonable judgment of TENANT, then and in such event, TENANT agrees that this Lease may be so modified and agrees to promptly execute
whatever documents are required therefor. Should any prospective mortgagee or ground lessor require execution of a short form of lease for recording (containing the names of the parties, a description of the Demised Premises, and the term of this
Lease) or a certification from the TENANT concerning the Lease in such form as may be required by a prospective mortgagee or ground lessor, TENANT agrees to promptly execute such short form of lease or certificate and deliver same to LANDLORD within
ten (10) days following the request therefore. 
  
 25. NOTICES: 
  
 All notices required or contemplated by this Lease
shall be in writing and shall be delivered in person or by special courier or by United States Certified Mail, Return Receipt Requested, addressed to the party to whom such notice is directed at the 
  

 8 

 address as shown in this lease or such other address as either LANDLORD or TENANT may designate as its new address for
notice purposes. Any such notice shall be deemed to have been rendered or given on the date when it shall have been mailed as provided in this clause. 
  
 26. APPLICABLE LAW: 
  
 This lease is entered into in the State of Florida and shall be governed by the applicable law of such State. 
  
 27. ENTIRE AGREEMENT: 
  
 This Lease contains the entire agreement between the parties. No oral or written statement
or representation shall be binding upon either party unless expressly set forth in this Lease. This Lease may not be modified unless such agreement is set forth in writing by LANDLORD and TENANT. 
  
 IN WITNESS WHEREOF, LANDLORD and TENANT have duly executed this agreement as
of the day and year first above written. 
  

			
	 WITNESS:
	 	LANDLORD:
	 	 	BOMBAY HOLDINGS, INC.
	  

	 	 
		
	 	 	 /s/ JEAN UTLEY

	 	 	Jean Utley, Secretary
		
	 WITNESS:
	 	TENANT:
	 	 	BANKRATE, INC.
	  

	 	 
		
	 	 	 /s/ ROBERT J. DEFRANCO

	 	 	Robert J. DeFranco
	 	 	 Senior Vice President
 Chief Financial
Officer

  

 9

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