Document:

Exhibit

EXHIBIT 10.01-10
[Execution Copy]

AMENDMENT NO. 10 TO THE
ARIZONA NUCLEAR POWER PROJECT
PARTICIPATION AGREEMENT
APS Contract No.: 4172-419.00

NOVEMBER 21, 1985

AMENDMENT NO. 10 TO THE
ARIZONA NUCLEAR POWER PROJECT
PARTICIPATION AGREEMENT

		
	l.
	Parties:

The Parties to this Amendment No. 10 to the Arizona Nuclear Power Project Participation Agreement, hereinafter referred to as "Amendment No. 10", are: ARIZONA PUBLIC SERVICE COMPANY, a corpora­tion organized and existing under and by virtue of the laws of the State of Arizona, hereinafter referred to as "Arizona"; SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, an agricultural improvement district organized and existing under and by virtue of the laws of the State of Arizona, hereinafter referred to as "Salt River Project"; SOUTHERN CALIFORNIA EDISON COMPANY, a corporation organized and existing under and by virtue of the laws of the State of California, hereinafter referred to as "Edison"; PUBLIC SERVICE COMPANY OF NEW MEXICO, a corporation organized and existing under and by virtue of the laws of the State of New Mexico, hereinafter referred to as "PNM"; EL PASO ELECTRIC COMPANY, a corporation orga­nized and existing under and by virtue of the laws of the State of Texas, hereinafter referred to as "El Paso"; and SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, a joint powers agency organized and existing under and by virtue of the laws of the State of    California , doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION, hereinafter referred to as "SCPPA".

		
	2.
	Recitals:

		
	2.1
	Arizona, Salt River Project, Edison, PNM, El Paso and SCPPA are parties to a certain agreement entitled Arizona Nuclear Power Project Participation Agreement, dated as of August 23, 1973, as amended by Amendment No. 1, dated as of January 1, 1974, Amendment No. 2, dated as of August 28, 1975, Amendment No. 3, dated as of July 22, 1976, Amendment No. 4, dated as of December 15, 1977, Amendment No. 5, dated as of December 5, 1979, Amendment No. 6, dated as of September 28, 1981, Amendment No. 7, dated as of March 4, 1982, Amendment No. 8, dated as of June 17, 1983, and Amendment No. 9, dated as of June 12, 1984, hereinafter, as so amended, referred to as the "Participation Agreement".

		
	2.2
	The Participants desire to amend the Participation Agreement to make provision for sale and leaseback financing transac­tions involving the Participants.

		
	3.
	Agreement:

		
	3.1
	In consideration of the terms and conditions contained in this Amendment No. 10 to the Participation Agreement, the parties agree as follows:

4.    Effective Date:
		
	4.1
	This Amendment No. 10 shall become effective when executed by all Participants.

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	5.
	Amendment No. 10 to the Participation Agreement:

		
	5.1.
	Section 3.43 is hereby deleted in its entirety and a new Section 3.43 is added as follows:

"3.43 Participant: Any party hereto and any successor or assignee of such party under Section 15.2 or Section 15.3 and any Transferee under Section 15.10 hereof."
		
	5.2.
	Section 3.46 is deleted in its entirety and a new Section 3.46 is added as follows:

"3.46 Project Agreements:  This Participation Agreement, any Construction Agreement, any Nuclear Fuel Agreement, but excluding any Nuclear Fuel Agreements for the supply of Uranium Concentrates to which all Participants are not parties, and any agreements between the Participants or any of them and any third party for land, land rights or water rights for ANPP, as such agreements are originally executed or as they may there­after be supplemented or amended and any other agreements as the Participants agree to designate as Project Agreements.  Project Agreements shall not include any deed of trust, mortgage, indenture, security agreement or any agreement or instrument relating to a sale and lease­back transaction, unless the Participants shall otherwise agree."

		
	5.3.
	Section 4.1 is deleted in its entirety and a new Section 4.1 is added as follows:

"4.1 Except as otherwise permitted in Section 15.l.l(b) hereof, each Participant shall accept, acquire and own an undivided interest as a tenant in common in ANPP and all Project Agreements in proportion to its Generation Entitlement Share, but excluding (i) Option and Purchase of Effluent Agreement, Agreement No. 13904, dated April 23, 1973, between Arizona and Salt River Project and the Cities of Phoenix, Glendale, Mesa, Scottsdale and Tempe and the Town of Youngtown, except to the extent only that said agreement governs the rights and obliga­tions for the purchase and delivery of wastewater efflu­ent required for Construction Work, Operating Work and Capital Improvements and (ii) any Project Agreement which by its terms establishes an ownership interest or rights 

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of any Participant in the subject matter thereof which differs from its Generation Entitlement Share under this Participation Agreement."
		
	5.4.
	The caption of Section 15 is hereby amended to read: 

"15. Mortgage, Sale and Leaseback and Transfer of Interest:".
		
	5.5.
	Section 15.l is hereby deleted in its entirety and a new Section 15.l is added as follows:

		
	"15.l
	The following provisions shall apply to the right of each Participant to enter into mortgage and sale and leaseback transactions.

		
	"15.l.l
	Each Participant shall have the right at any time and from time to time to

"(a) mortgage, create or provide for a security interest in or convey in trust all or a part of its ownership share in ANPP, together with an equal interest in the Project Agreements, to a trustee or trustees under deed of trust, mort­gage or indenture or to a secured party or parties under a security agreement, as security for its present or future bonds or other obligations or securities, and to any successors or assigns thereof, or
"(b) sell and lease back, under a net lease having a primary term of not less than 25 years, all or any part of its interest in a Generating Unit and Capital Improvements made from time to time with respect thereto, together with all or any part of its Generation Entitlement Share with respect to such Generating Unit or part thereof, to a trustee or trustees under a grantor trust or trusts and to any successors or assigns thereof, 
"without need for the prior written consent of any other Participant and without such mortgagee, trustee, secured party or lessor under such sale and leaseback transaction assuming or becoming in any respect obligated to perform any of the obligations of such Participant; provided, however, at or prior to any sale and leaseback pursuant to clause (b) of this Section 15.l.l, the conditions to such transaction set forth in Section 15.6 hereof shall have been satisfied.

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"15.l.2    Each lessor under a sale and leaseback transaction permitted under clause (b) of Section 15.l.l shall have the right at any time and from time to time to mort­gage, create or provide for a security interest in or convey in trust all or any part of its ownership share in ANPP to a trustee or trustees under deed of trust, mortgage or indenture or to a secured party or parties under a security agreement, as security for its present or future bonds or other obligations or securities, and to any successors or assigns thereof, without need for the prior written consent of any Participant and without such mortgagee, trustee or secured party assuming or becoming in any respect obligated to perform any of the obligations of the Participants."
		
	5.6.
	Section 15.2 is amended (i) to redesignate such Section as "15.2.l", (ii) by the addition of a new introductory Section 15.2 as follows:

"15.2 The following provisions shall apply to the exercise of rights in respect of transactions permitted by Section 15 .1."
and (iii) by the addition of a new Section 15.2.2 which reads as follows:
"15.2.2 From and after, but in no event prior to, the date of a rejection or deemed rejection by any receiver, referee or trustee in bankruptcy or reorganization of any Participant of the lease or other executory contract con­stituting part of a sale and leaseback transaction relat­ing to ANPP to which such Participant is a party, the lessor in such sale and leaseback transaction (or any mortgagee, trustee or secured party under present and future deeds of trust, mortgages, indentures or security agreements of such lessor and any successor or assignee thereof, and any receiver, referee or trustee in bank­ruptcy or reorganization of such lessor and any successor by action of law or otherwise, and any purchaser, trans­feree or assignee of any thereof) may (subject, however, to the rights of the other Participants under the Project Agreements, including but not limited to, Section 23 hereof), without need for the prior written consent of any other Participant, (i) succeed to and acquire all the rights, titles and interests of such Participant in ANPP

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and the Project Agreements, to the extent, but only to the extent, of the Generating Unit (or portion thereof) and the portion of such Participant's Generation Entitlement Share acquired by such lessor in such transaction, and (ii) take over possession of or foreclose upon said property, rights, titles and interests of such Participant, and in such event such lessor or other party shall assume and be obligated fully to perform and dis­charge all obligations arising thereafter hereunder and under any other Project Agreement of such Participant to the extent, but only to the extent, of the Generating Unit (or portion thereof) and the portion of such Participant's Generation Entitlement Share subject to such transaction."
		
	5.7.
	Section 15 is amended by the addition of Sections 15.6, 15.7, 15.8, 15.9 and 15.10 which read as follows:

"15.6   The right of a Participant to enter into a sale and leaseback transaction as provided in clause (b) of Section 15.1.1 is subject to the following:

"15.6.1 The other Participants shall have received (1) an instrument of each lessor party to such transac­tion confirming the matters set forth in Section 15.6.3.2 hereof, (2) a certificate of such Participant to the effect that such transaction will satisfy the conditions set forth in Section 15.6 hereof, and all other provi­sions of this Participation Agreement, and (3) an opinion of counsel to such Participant with respect to the mat­ters set forth in Sections 15.6.3.l and 15.6.3.4 hereof and to the effect that the documents and agreements relating to such transaction are not inconsistent with the requirements of Section 15.6.3 hereof.

"15.6.2 The Administrative Committee, based upon the instrument, the certificate and the opinion described in Section 15.6.l, shall have found, by unanimous resolu­tion, such transaction to be consistent with Section 15 hereof. The representative of any Participant need not join in such finding if such transaction (1) is inconsis­tent with Section 15 hereof or (2) may, in some manner, materially impair the rights of such Participant to retain or obtain tax benefits arising from its property interest in ANPP.

"15.6.3   Such transaction, and the documents and agreements relating thereto, shall provide that:

"15.6.3.l   The rights and remedies of the parties thereto shall be subject and subordinate to the rights and remedies of the Participants (other than (i) the Participant party thereto or (ii) any person who shall become a Participant in respect of the lessor's interest

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 in ANPP under such transaction) under the Project Agreements;

"15.6.3.2  Except as provided in Sections 15.2.2 , 15.6.4 and 15.10 hereof, the Participant party thereto shall be and remain the sole "Participant" for all purposes of this Participation Agreement and the sole representative (with power to bind each lessor party to such transaction and each mortgagee, trustee and secured party of such lessor described in Section 15.l.2 hereof) in all dealings with the other Participants in relation to·the property, rights, titles and interests of such Participant transferred pursuant to such transaction;

"15.6.3.3  Any right conferred by Section 15.2 .2 hereof shall be exercised only in concert (through a single nom­inee, agent, receiver or subsequent transferee) with sim­ilar rights conferred by Section 15.2.2 hereof on parties to other sale and leaseback transactions involving the same Participant and interests in the same Generating Unit;

"15.6.3.4  All right to partitionment with respect to the interest acquired shall be waived by the lessor party to such transaction;

"15.6.3.5  Upon the expiration of the lease in such transaction and upon the Participant party thereto fail­ing to purchase all the right, title and interest in ANPP and contractual rights related thereto necessary for the operation of such interest (a "Lessor's Interest") acquired by the lessor in such transaction, such lessor shall entertain cash bids from each other Participant for such Lessor's Interest; and

"15.6.3.6  The provisions of such transaction respon­sive to the foregoing Sections of this Section 15.6.3 shall remain in full force and effect until such time as the Administrative Committee shall otherwise consent.

"15.6.4   Such transaction may provide that the author­ity of the Participant party thereto described in Section 15.6.3.2 hereof shall not extend to approval of any amendment to the Participation Agreement the effect of which would be to reduce the Generation Entitlement Share in which the lessor or lessors party to such trans­action have acquired an interest.

"15.7  Except to the extent provided in Section l5.10 hereof, a Participant shall not be released from any obligation under the Project Agreements notwithstanding 

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any assumption of, or agreement to perform or discharge in whole or in part, such obligation by any other person in connection with a sale and leaseback transaction.
"15.8  Anything in a sale and leaseback transaction to the contrary notwithstanding: (1) the rights and reme­dies of the parties thereto shall be subject and subordi­nate to the rights and remedies of the Participants under the Project Agreements (including but not limited to Section 23 hereof), other than (i) the Participant party thereto and (ii) any person who shall become a Participant in respect of the lessor's interest in ANPP under such transaction; (2) no other Participant shall incur any obligations or liabilities in respect of such transaction; and (3) the lessor party thereto shall be bound by the provisions of Section 21 hereof (other than Section 2l.3) to the same extent as if such lessor were a Participant.
"15.9  If a Participant enters into a sale and leaseback transaction as provided in clause (b) of Section 15.1.1. such Participant shall indemnify all other Participants against any costs and expenses incurred by them because of such Participant's entering into such transaction.
"15.10  Upon a lease or sale to a person, partnership, corporation or governmental corporation or agency engaged in the generation, transmission or distribution of Energy (other than the Participant originally party to such transaction) (a "Transferee") of a Lessor's Interest acquired by a lessor in a sale and leaseback transaction:
"15.10.1  The Transferee shall be and become the sole "Participant" for all purposes of this Participation Agreement and the sole representative (with power to bind any lessor) in all dealings with the other Participants in relation to such interest;
"15.10.2  The Transferee (1) shall assume and agree, and be deemed to have assumed and agreed, fully to per­form and discharge all obligations under the Project Agreements relating to such interest to the extent aris­ing subsequent to such lease or sale, except obligations in respect of decommissioning and removing from service the Generating Unit to which such interest relates (the "Termination Obligation"), (2) if such Transferee was not previously a Participant, may assume and agree fully to perform and discharge all or any part of the Termination Obligation and, (3) if such Transferee is and was previously a Participant, shall assume and agree, and be 

-8-

deemed to have assumed and agreed, fully to perform and discharge the Termination Obligation;

"15.10.3 The Participant originally party to such transaction shall thereupon, with the consent (which con­sent shall not be withheld by any Participant unless a release would, in some manner, materially impair or mate­rially adversely affect the rights of such Participant under this Participation Agreement or the rights or secu­rity of obligation holders of such Participant) of each other Participant, be released from all obligations under the Project Agreements so assumed and agreed to by the Transferee but only to the extent of such assumption and agreement; and

"15.10.4 The Transferee shall furnish to each other Participant evidence of such sale or lease and such assumption and agreement."

		
	5.8.
	Section 20.8 is amended by the addition of the following sentence at the end thereof:

"Each Participant shall have the right to have any lessor (and any trustee or trustees under a deed of trust, mort­gage or indenture or any secured party or parties under a security agreement) in a sale and leaseback transaction named on all or any of the Project Insurance policies as loss payee or additional insured as its interest may appear, by notice in writing to the Project Manager or Operating Agent given in writing not less than thirty (30) days prior to the date proposed for such naming, which notice shall specify the name or names of such lessor and such additional information as may be neces­sary or required to permit it to be included on the policy(ies) of insurance."

		
	5.9.
	Section 32.1 is hereby deleted in its entirety and a new Section 32.1 is added as follows:

"32.1  All of the respective covenants and obligations of each of the Participants set forth and contained in the Project Agreements shall bind and shall be and become the respective covenants and obligations of:

"32.1.1    Each such Participant;

-9-

"32.1.2    All mortgagees, trustees and secured parties under all present and future mortgages, indentures and deeds of trust, and security agreements which are or may become a lien upon any of the interests of such Participant in ANPP; provided, however, that such covenants and obligations shall become binding upon such par­ties  only at the time of taking possession;

"32.1.3    All receivers, assignees for the ben­efit of creditors, bankruptcy trustees and ref­erees of such Participant;

"32.1.4    All lessors under all future sale and leaseback transactions (or other person described in Section 15.l.2 hereof) involving interests in ANPP; provided, however, that such covenants and obligations shall become binding on such lessors (or other persons) only in accordance with Section 15.2.2 hereof;

"32.1.5    All receivers, assignees for the ben­efit of creditors, bankruptcy trustees and ref­erees of such lessors;

"32.1.6    All Transferees pursuant to Section 15.10 hereof; provided, however, that such cove­nants and obligations shall become binding on a Transferee only in accordance with Section 15.10.2 hereof;

"32.1.7    All other persons, firms, partner­ships or corporations claiming through or under any of the foregoing; and

"32.1.8    Any successors or assigns of any of those mentioned in Sections 32.1.1 through 32.1.7 hereof,

"and shall be covenants and obligations running with such Participant's respective rights, titles and interests in ANPP and in, to and under the Project Agreements, and shall be for the benefit of the respective rights, titles and interests of the Participants and their respective successors and assigns, in and to ANPP. It is the spe­cific intention of this provision that all such covenants and obligations shall be binding upon any party which acquires any of the rights, titles and interests of any such Participant in ANPP or in, to and under· the Project Agreements and that all of the above-described persons and groups shall be obligated to use such Participant's

-10-

rights, titles and interests in ANPP and/or in, to or under the Project Agreements for the purpose of discharg­ing its covenants and obligations under the Project Agreements: except (i) that in the case of a partial assignment the assignee shall only be required to share in the cost of fulfilling the covenants and obligations of the assigning Participant in, to and under the Project Agreements to an extent proportionate or attributable to such assignment, (ii) the rights and obligations of any Fuel Lessor of any Participant shall be governed by the provisions of Section 15.4 hereof and (iii) the rights and obligations of any person specified in Sections 32.1.2, 32.1.4 and 32.1.6 hereof shall be gov­erned as set forth in such Sections."

		
	5.10.
	Except as provided herein, the Participation Agreement, as amended by this Amendment No. 10, shall remain in full force and effect.

		
	6.
	Execution by Counterparts:

		
	6.1.
	This Amendment No .10 may be executed in any number of counterparts, and upon execution by all Participants, each executed counterpart shall have the same force and effect as an original instrument and as if all Participants had signed the same instrument. Any signature page of this Amendment No. 10 may be detached from any counterpart of this Amendment No. 10 without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Amendment No. 10 identical in form hereto but having attached to it one or more signature pages.

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7.    Signature Clause:
		
	7.1.
	The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 10 on behalf of the party for whom they sign.  This Amendment No. 10 is hereby executed as of the 21st day of November, 1985.

	
					
	 
	
	 
	ARIZONA PUBLIC SERVICE COMPANY

	 
	 
	 
	 

	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	Its
	Chief Executive Officer

	 
	 
	 
	 

	 
	 
	SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT

	ATTEST AND COUNTERSIGN:
	 
	 
	 

	 
	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	 
	SOUTHERN CALIFORNIA EDISON COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

-12-

		
	7.
	Signature Clause:

		
	7.1.
	The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 10 on behalf of the party for whom they sign.  This Amendment No. 10 is hereby executed as of the _______ day of October, 1985.

	
					
	 
	 
	 
	ARIZONA PUBLIC SERVICE COMPANY

	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT

	ATTEST AND COUNTERSIGN:
	 

	 
	/s/ [ILLEGIBLE]
	 
	By
	/s/ [ILLEGIBLE]

	Its
	Secretary
	 
	Its
	President

	 
	
	 
	 
	 

	 
	 
	SOUTHERN CALIFORNIA EDISON COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

-12-

		
	7.
	Signature Clause:

		
	7.1.
	The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 10 on behalf of the party for whom they sign.  This Amendment No. 10 is hereby executed as of the _______ day of October, 1985.

	
					
	 
	 
	 
	ARIZONA PUBLIC SERVICE COMPANY

	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT

	ATTEST AND COUNTERSIGN:
	 

	 
	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	 
	SOUTHERN CALIFORNIA EDISON COMPANY

	 
	
	 
	 
	 

	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	Its
	 

	 
	 
	 
	 

-12-

	
					
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 

	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	Its
	Senior Vice President Power Supply

	 
	 
	 
	 
	 

	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	ATTEST:
	 
	 
	 

	 
	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 

-13-

	
					
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	Its
	Senior Vice President

	 
	 
	 
	 
	 

	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	ATTEST:
	 
	 
	 

	 
	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 

-13-

	
					
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	By
	 

	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 

	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	ATTEST
	 
	 
	 

	/s/ [ILLEGIBLE]
	 
	By
	/s/ [ILLEGIBLE]

	Its
	Asst. Secretary
	 
	Its
	President

	 
	 
	 
	 
	 

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	STATE OF ARIZONA
	)
	 
	 
	 

	 
	)
	ss.
	 
	 

	County of Maricopa
	)
	 
	 
	 

On this _21st_ day of __November__, 1985 before me, the undersigned Notary Public, personally appeared ___Keith L. Turley________ who acknowledged himself to be the Chairman of the Board  of ARIZONA PUBLIC SERVICE COMPANY, an Arizona corporation, and that as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as such Chief Executive Officer  .

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
	
					
	 
	 
	 
	/s/ [ILLEGIBLE]

	 
	 
	 
	Notary Public

	My commission expires:
	 
	 
	 

	 
	 
	 

-14-

	
					
	STATE OF ARIZONA
	)
	 
	 
	 

	 
	)
	ss.
	 
	 

	County of Maricopa
	)
	 
	 
	 

On this _5th_ day of __November__, 1985 before me, the undersigned Notary Public, personally appeared ___JOHN R. LASSEN________ and ___PAUL D. RICE________ who acknowledged themselves to be the _____PRESIDENT_____ and _____SECRETARY_____ of SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, an Arizona agricultural improvement district, and that they as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the district by themselves as such ____PRESIDENT_____ and _____SECRETARY_____.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

	
					
	
	 
	/s/ [ILLEGIBLE]

	 
	 
	 
	Notary Public

	My commission expires:
	 
	 
	 

	 
	 
	 
	 

-15-

	
					
	STATE OF CALIFORNIA
	)
	 
	 
	 

	 
	)
	ss.
	 
	 

	County of Los Angeles
	)
	 
	 
	 

On this _21st_ day of __November__, 1985 before me, the undersigned Notary Public, personally appeared ______[ILLEGIBLE]_____ who acknowledged himself to be the Exec. Vice President_ of SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation, and that as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as such Exec. Vice President_.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

	
					
	 
	 
	 
	/s/ [ILLEGIBLE]

	 
	 
	 
	Notary Public

	My commission expires:
	 
	 
	 

	 
	 
	

	 
	 
	 

-16-

	
					
	STATE OF NEW MEXCO
	)
	 
	 
	 

	 
	)
	ss.
	 
	 

	County of Bernalillo
	)
	 
	 
	 

On this _31st_ day of __October__, 1985 before me, the undersigned Notary Public, personally appeared ______J. L. Wilkins_____ who acknowledged himself to be the Senior Vice President_ of PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation, and that as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as such Senior Vice President_.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

	
					
	 
	 
	 
	/s/ [ILLEGIBLE]

	 
	 
	 
	Notary Public

	My commission expires:
	 
	 
	 

	July 1, 1988
	 
	 
	 

-17-

	
					
	STATE OF TEXAS
	)
	 
	 
	 

	 
	)
	ss.
	 
	 

	County of El Paso
	)
	 
	 
	 

On this _1st_ day of __November__, 1985 before me, the undersigned Notary Public, personally appeared ______R. E. York_____ who acknowledged himself to be the SR. Vice Pres._ of EL PASO ELECTRIC COMPANY, a Texas corporation, and that as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as such SR.  Vice Pres._.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

	
					
	 
	 
	 
	/s/ [ILLEGIBLE]

	 
	 
	 
	Notary Public

	My commission expires:
	 
	 
	 

	7-3-89
	 
	 
	 

-18-

	
					
	STATE OF CALIFORNIA
	)
	 
	 
	 

	 
	)
	ss.
	 
	 

	County of Los Angeles
	)
	 
	 
	 

On this _6th_ day of __November__, 1985, before me, the undersigned Notary Public, personally appeared ___[ILLEGIBLE]________ and ___[ILLEGIBLE]________ who acknowledged themselves to be the _____[ILLEGIBLE]____ and ____[ILLEGIBLE]_____ of SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION), a California joint powers agency, and that they as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the agency by themselves as such _____[ILLEGIBLE]____ and ____[ILLEGIBLE]_____.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

	
					
	 
	 
	 
	/s/ [ILLEGIBLE]

	 
	 
	 
	Notary Public

	My commission expires:
	 
	

	 
	 

	 
	 
	 

	 
	 
	 

-19-Exhibit

EXHIBIT 10.01-11

AMENDMENT NO. 11 TO THE
ARIZONA NUCLEAR POWER PROJECT
PARTICIPATION AGREEMENT

APS Contract No: 4172-419.00

Pursuant to Section 4 herein, this Amendment No. 11 has been filed with the Nuclear Regulatory Commission and became effective on the 10th day of January, 1987.

June 13. 1986

AMENDMENT NO. 11 TO THE
ARIZONA NUCLEAR POWER PROJECT
PARTICIPATION AGREEMENT
		
	1.
	PARTIES:

The parties to this Amendment No. 11 to the Arizona Nuclear Power Project Participation Agreement, hereinafter referred to as "Amendment No. 11", are: ARIZONA PUBLIC SERVICE COMPANY, a corporation organized and existing under and by virtue of the laws of the State of Arizona, hereinafter referred to as "Arizona"; SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, an agricultural improvement district organized and existing under and by virtue of the laws of the State of Arizona, hereinafter referred to as "Salt River Project"; SOUTHERN CALIFORNIA EDISON COMPANY, a corporation organized and existing under and by virtue, of the laws of the State of California, hereinafter referred to as "Edison"; PUBLIC SERVICE COMPANY OF NEW MEXICO, a corporation organized and existing under and by virtue of the laws of the State of New Mexico, hereinafter referred to as "PNM"; EL PASO ELECTRIC COMPANY, a corporation organized and existing under and by virtue of the laws of the State of Texas, hereinafter referred to as "El Paso"; SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, a joint powers agency organized and existing under and by virtue of the laws of the State of California, doing business in the State of Arizona a SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION, hereinafter referred to as "SCPPA"; and DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES, a municipal 

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corporation organized and existing under and by virtue of the laws of the State of California, hereinafter referred to as "LADWP".
		
	2.
	RECITALS:

		
	2.1
	Arizona, Salt River Project, Edison, PNM, El Paso and SCPPA are parties to a certain agreement entitled Arizona Nuclear Power Project Participation Agreement, dated as of August 23, 1973, as amended by Amendment No. 1, dated as of January 1, 1974, Amendment No. 2, dated as of August 28, 1975, Amendment No. 3, dated as of July 22, 1976, Amendment No. 4, dated as of December 15, 1977, Amendment No. 5. Dated as of December 5, 1979, Amendment No. 6, dated as of September 28, 1981, Amendment No, 7, dated as of March 4, 1982, Amendment No. 8, dated as of June 17, 1983, Amendment No. 9, dated as of June 12, 1984, and Amendment No. 10, dated as of November 21. 1985, hereinafter referred to as the "Participation Agreement", as so amended.

		
	2.2
	By this Amendment No. 11, the Participants desire to amend the Participation Agreement in order to provide for the determination of administrative and general expenses regarding Start-Up and Pre-Operation Costs as agreed to in the letter entitled "Letter of Understanding Concerning Administrative and General Expense Charged to Arizona Nuclear Power Project Start-Up and Pre-Operation Expenses", hereinafter referred to as "Letter of Understanding", which became effective February 21, 1985

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	2.3
	Pursuant to Items D.1, D.2 and D.3 of the Letter of Understanding, the Participants, based upon the recommendation of the Auditing Committee, have determined that it is desirable to implement by this Amendment No. 11 certain changes to the formulas for determining the Operation and Maintenance A & G Ratio, the O & M Ratio and Constrction Ratio, and the Capital A & G Ratio.

		
	2.4
	Pursuant to the Salt River Project - Los Angeles Palo Verde Station Assignment Agreement, dated January 29, 1986, by and between Salt River Project and LADWP, on January 29, 1986, Salt River Project, pursuant to Section 15.3 of the Participation Agreement, assigned and transferred to LADWP, among other things, an undivided 5.7% interest in the Palo Verde Nuclear Generating Station and in the Project Agreements related thereto, and a 5.7% Generation Entitlement Share under the Participation Agreement (all collectively referred to as "LADWP's Palo Verde Interest") and LADWP pursuant to Section 15.5 of the Participation Agreement has accepted said assignment and transfer and has become, and assumed the status and obligations of, a Participant in the Palo Verde Nuclear Generating Station to the extent of LADWP's Palo Verde Interest.

		
	3.
	AGREEMENT:

In consideration of the terms and conditions contained in this Amendment No. 11, the parties agree as follows:

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	4.
	EFFECTIVE DATE:

This Amendment No. 11 shall become effective 10 days following the filing of this Amendment No. 11 with the Nuclear Regulatory this Commission, and shall be as indicated on the cover page to Amendment No. 11. This Amendment No. 11 shall supercede in its entirety the Letter of Understanding.
		
	5.
	AMENDMENT NO. 11 TO THE PARTICIPATION AGREEMENT:

		
	5.1
	A new Section 3.8A is hereby added to read as follows:

		
	"3.8A
	Beginning of Generating Unit Fuel Load: The date on which the first Fuel Assembly is placed in the reactor vessel of each Generating Unit."

		
	5.2
	A new Section 3.8B is hereby added to read as follows: 

		
	"3.8B
	Beginning of Generating Unit Precore Hot Functional Test: The date on which information is first recorded in the Hot Functional Director's Log of Information for each Generating Unit in accordance with Section 8.1 of the PVNGS Manual, Procedure No. 90HF-1ZZ01.

		
	5.3
	Section 3.23 is hereby deleted in its entirety and a new Section 3.23 is hereby added to read as follows:

		
	"3.23
	FPC Accounts: The Federal Energy Regulatory Commission's (FERC) "Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class A and Class B)", in effect as of the date of this Participation Agreement, and as such system of accounts may be in effect from time to time. 

-4-

References in this Participation Agreement to any specific FPC Account number shall mean the FERC Account number in effect as of the effective date of this Participation Agreement or any successor FERC Account."
		
	5.4
	Section 3.28 is hereby deleted in its entirety and a new Section 3.28 is hereby added to read as follows:

"3.28    Generation Entitlement Share: The percentage entitlement of each Participant to the Net Energy Generation and to the Available Generating Capability. Each Participant's percentage entitlement is as follows:	
				
	38.28.1
	Arizona
	=
	29.1 percent

	 
	 
	 
	 

	3.28.2
	Salt River Project
	=
	17 .49 percent

	 
	 
	 
	 

	3.28.3
	Edison
	=
	15.8 percent

	 
	 
	 
	 

	3.28.4
	PNM
	=
	10.2 percent

	 
	 
	 
	 

	3.28.5
	El Paso
	=
	15.8 percent

	 
	 
	 
	 

	3.28.6
	SCPPA
	=
	5.91 percent

	 
	 
	 
	 

	3.28.7
	LADWP
	=
	5.7 percent"

		
	5.5
	A new Section 3.45A is hereby added to read as follows:

		
	"3.45A
	Power Ascension Level 50%:  That point at which each Generating Unit is certified at the fifty percent (50%) "Reliable (Power Level) Power Operation During Power Ascension Testing" level by the Engineering and Operating Committee pursuant to the Engineering and Operating Committee's Procedure 

-5-

No. 7."  
		
	5.6
	A new Section 3.53A is hereby added to read as follows:

		
	"3.53A
	Start-Up and Pre-Operation Costs: The costs of start‐up and pre-operation of ANPP as described in Section 10A."

		
	5.7
	A new Section 10A is hereby added to read as follows:

		
	"10A.
	START-UP AND PRE-OPERATION COSTS:

		
	10A.1
	For purposes of computing the allowance for start-up and pre-operation administrative and general expenses beginning on October 1, 1984, and through the Date of Firm Operation of each respective Generating Unit, Start-Up and Pre-Operation Costs of ANPP for each Generating Unit, including its one-third share of common facilities, shall consist of all payments made and obligations incurred by the Project Manager and the Operating Agent as follows:

		
	10A.1.1
	 Costs of pre-operational Operating Work, as such costs are described within Appendix G, Section G.7.1;

		
	10A.1.2
	 Costs of training personnel for Operating Work, as such training expenses are described within Appendix G, Sections G.7.3 and G.7.4; 

-6-

		
	10A.1.3
	Costs of all operation and maintenance performed by any contractor.

		
	10A.2
	Start-Up and Pre-Operation Costs shall not receive an allowance for administrative and general expenses except as provided pursuant to Appendix L, attached hereto and made a part hereof."

		
	5.8
	A new Section 38.1.7 is hereby added to read as follows:

		
	"38.1.7
	Department of Water and Power

  of the City of Los Angeles
c/o Chief Electric Engineer and
  Assistant Manager
P. O. Box 111
111 North Hope Street
Los Angeles, California 90015"

		
	5.9
	Section E.6 of Appendix E is hereby deleted in its entirety and a new Section E.6 is hereby added to read as follows: 

"E.6    Operation and Maintenance A & G Ratio:
		
	E.6.1
	The Operation and Maintenance A & G Ratio shall be the percentage computed by dividing (i) the sum of (a) the total amounts charged to FPC Accounts 920 and 921 multiplied by the O & M Ratio computed in accordance with Section E.8 hereof, (b) the total amounts charged to FPC Accounts 923 (except any amounts directly chargeable to ANPP) and 935 (formerly 932), (c) the product of the portion of labor charges included within (a) and (b) above multiplied by the Payroll Tax 

-7-

Ratio computed in accordance with Section E.4 hereof, (d) the product of the labor charges included within (a) and (b) above multiplied by the Benefits Ratio computed in accordance with Section E.5 hereof, and (e) the product of the labor charges included within (a) and (b) above multiplied by the Compensation Insurance Ratio computed in accordance with Section E.7 hereof, less (f) the one percent (1%) portion of the administrative and general expenses charged to FPC Accounts 920 and 921 allocable to contract operation and maintenance by (ii) the direct labor (i.e. total labor less labor charged to clearing accounts) chargeable to operation and maintenance accounts (exclusive of A & G), to include O & M labor billed to Participants and the labor portion of Start-Up and Pre-Operation Costs subject to the Operation and Maintenance A & G Ratio pursuant to Section L.1.3. and to exclude the labor portion of Start-Up and Pre-Operation Costs subject to the construction administrative and general expense percentage of one percent (1%) pursuant to Section L.l.3.

-8-

		
	E.6.2
	The following example sets forth the method to be employed by the Operating Agent to determine the Operation and Maintenance A & G Ratio:

EXAMPLE COMPUTATION
OF OPERATION AND MAINTENANCE A & G RATIO
(Based on the Operating Agent's 1984 Experience)

	
										
	 
	Labor
	 
	Total

	Administrative and General Salaries
   charged to FPC Account 920
	

$   17,408,542
	 
	 
	

$   17,406,779
	

	Office Supplies and Expenses
   charged to FPC Account 921
	

   
	 
	 
	

   7,208,084
	

	Total
	17,4087,542
	 
	 
	$
	24,614,863
	

	Total FPC Accounts 920 and 921,
   multiplied by O&M Ratio @ 68.481%
	

$   11,921,544
	 
	 
	$
	16,856,504
	

	FPC Account 923
	   
	 
	 
	919,166
	

	FPC Account 932 (presently 935)
	1,555,913
	 
	 
	3,127,002
	

	Subtotal
	$
	13,477,457
	 
	 
	$
	20,902,672
	

	Payroll Taxes @ 7.126%
	 
	 
	960,404
	

	Pensions and Benefits @ 13.512%
	 
	 
	1,821,074
	

	Compensation Insurance @ 0.451%
	 
	 
	60,783
	

	Less that 1% portion of A & G allocable to
   Contract Operation and Maintenance
	 
	 
	

   1,483,314
	

	Total administrative and general expenses
   allocable to operations and maintenance
	 
	 
	

$   22,261,619
	

	 
	 
	 
	 

	Labor Base
	 
	 
	 

	Direct labor charged to system operations
   and maintenance, as further defined in Section E.6.1
	 
	 
	

   148,557,953
	

	Less direct labor charged to administrative
   and general expenses (FPC Accounts 920-931 and 935)
	 
	 
	

   13,160,635
	

	Labor Base
	 
	 
	$
	135,397,318
	

	Operation and Maintenance
	 
	 
	 

	   A & G Ratio for 1984 $22,261,169 ÷ $135,397,318 = 16.442%
	 
	 
	 

Note:  All labor figures include loading for allowed time."
		
	5.10
	Section E.8 of Appendix E is hereby deleted in its entirety and a new Section E.8 is hereby added to read as follows:

		
	"E.8
	O & M Ratio and Construction Ratio:

		
	E.8.1
	The O & M Ratio set forth below shall be applied to the amounts chargeable to FPC 

-9-

Accounts 920 and 921 for the purpose of determining one component in the computation of the Operation and Maintenance A & G Ratio as provided in Section E.6 hereof.
	
		
	O & M Ratio =
	O

	L

		
	Where:
	O =     The Operating Agent's direct labor chargeable to operation and maintenance accounts (exclusive of A & G), to include O & M labor billed to Participants and the labor portion of Start‐Up and Pre-Operation Costs subject to the Operation and Maintenance A & G Ratio pursuant to Section L.1.3, and to exclude the labor portion of Start‐Up and Pre-Operation Costs subject to the construction administrative and general expense percentage of one percent (1%) pursuant to Section L.1.3. 

		
	L =
	The operating Agent's direct labor distributed, including accruals, less direct labor 

-10-

chargeable to FPC Accounts 920 through 931 and 935.
		
	E.8.2
	The Construction Ratio set forth below shall be applied to the amounts chargeable to FPC Accounts 920 and 921 for the purpose of determining one component in the computation of the Capital A & G Ratio as provided in Section E.9 hereof.        

	
		
	Construction Ratio =
	C

	L

		
	Where: C = 
	The Operating Agent's direct labor in construction accounts (exclusive of A & G), to include construction labor billed to Participants, including the labor portion of Start-Up and Pre‐Operation Costs subject to the construction administrative and general expense percentage of one percent (1%) pursuant to Section L.1.3, and excluding the labor portion of Start-Up and Pre-Operation Costs subject to the Operation and Maintenance A & G Ratio pursuant to Section L.1.3.

-11-

		
	L =
	The Operating Agent's direct labor distributed, including accruals, less direct labor chargeable to FPC Accounts 920 through 931 and 935.

		
	E.8.3
	Estimated and actual O & M Ratios and Construction Ratios shall be determined, adjusted and used in the manner set forth in Section E.10 hereof.

		
	E.8.4
	The following example sets forth the method to be employed by the Operating Agent to determine the O & M Ratio and the Construction Ratio:

EXAMPLE COMPUTATION
O & M RATIO AND CONSTRUCTION RATIO
(Based on the Operating Agent's 1984 Experience)

	
							
	Total direct labor in operation and maintenance
	 
	 
	 
	 

	   Accounts
	 
	 
	$
	148,557,953
	

	 

	Less:  direct labor charged to administrative
	 
	 
	 
	 

	   and general expense FPC Accounts 920
	 
	 
	 
	 

	   through 931, inclusive and FPC Account 935
	 
	 
	13,160,635
	

	 

	Net labor in O & M Accounts
	 
	 
	$
	135,397,318
	

	 

	Total direct labor charged to General Ledger
	 
	 
	 
	 

	   Accounts
	 
	 
	6,255,648
	

	 

	Total direct labor in construction Accounts
	 
	 
	 
	 

	   (exclusive of A & G)
	 
	 
	56,061,726
	

	 

	      Total Labor Base
	 
	 
	$
	197,714,692
	

	 

	Ratio of net O & M labor to direct labor
	 
	 
	$   135,397,381
	

	= 68.481%

	 
	 
	 
	$
	197,714.692
	

	 

	Ratio of construction labor to direct labor
	 
	 
	$   56,061,726
	

	= 28.355%

	 
	 
	 
	$
	197,714,692
	

	 

Note: All labor figures include loading for allowed time.

		
	5.11
	Section E.9 of Appendix E is hereby deleted in its entirety 

-12-

and a new Section E.9 is hereby added to read as follows:
		
	"E.9
	Capital A & G Ratio:

E.9.1 The Capital A & G Ratio shall be the percentage computed by dividing (i) the amounts equal to (A) the sum of (a) the total amounts charged to FPC Accounts 920 and 921 multiplied by the Construction Ratio computed in accordance with Section E.8 hereof, and (b) the product of the portion of labor charges included in (a) above multiplied by the sum of the Payroll Tax Ratio, the Benefits Ratio and the Compensation Insurance Ratio less (B) the one percent (1%) portion of administrative and general expenses charged to FPC Accounts 920 and 921 allocable to contract construction (including the administrative and general expenses (i) recovered on Start‐Up and Pre-Operation Costs subject to the construction administrative and general expense percentage of one percent (l%) pursuant to Section L.1.3, (ii) recovered on ANPP construction expenses. and (iii) allocable to other contract construction) by (ii) the direct labor in construction accounts (exclusive of A & G), to include 

-13-

construction labor billed to Participants, excluding the labor portion of Start-Up and Pre-Operation Costs subject to the Operation and Maintenance A & G Ratio pursuant to Section L.1.3, less the labor portion of construction expenses to which the one percent (1%) portion of administrative and general expenses is applicable, and less the labor portion of Start-Up and Pre-Operation Costs subject to the construction administrative and general expense percentage of one percent (1%) pursuant to Section L.1.3.
		
	E.9.2
	The following example sets forth the method to-be employed by the Operating Agent to determine the Capital A & G Ratio:

EXAMPLE COMPUTATION OF CAPITAL A & G RATIO
(Based on the Operating Agent's 1984 Experience)

	
								
	 
	Labor
	 
	Total

	Administrative and General Salaries
	 
	 
	 

	   charged to FPC Account 920
	$
	17,408,542
	

	 
	$
	17,406,779
	

	Office Supplies and Expenses
	 
	 
	 

	   charged to FPC Account 921
	   
	 
	7,208,084
	

	Total
	$
	17,408,542
	

	 
	$
	24,614,863
	

	Total FPC Accounts 920 and 921, multiplied
	 
	 
	 

	   by Construction Ratio @ 28.355%
	$
	4,936,192
	

	 
	$
	6,979,544
	

	Payroll Taxes @ 7.126%
	 
	 
	351,753
	

	Pensions and Benefits @ 13.512%
	 
	 
	666,978
	

	Compensation Insurance @ 0.451%
	 
	 
	22,262
	

	Less that 1% portion of A & G allocable to
	 
	 
	 

	   Contract Construction, as further defined in
	 
	 
	 

	   Section 9.1
	 
	 
	3,634,919
	

-14-

	
						
	Total A & G allocable to Construction
	 
	 
	$
	4,385,618
	

	 
	 
	 
	 

	Construction Direct Labor
	 
	 
	56,061,726
	

	Less the labor portion of Construction Work,
	 
	 
	 

	   Start-Up and Pre-Operational Costs subject
	 
	 
	 

	   to the construction administrative and general
	 
	 
	13496,824
	

	   expense percentage of one percent (1%)
	 
	 
	 

	 
	 
	 
	 

	Total Construction Direct Labor Base
	 
	 
	$
	42,564,902
	

	 
	 
	 
	 

	Capital A & G Ratio for 1984 $4,385,618 ÷ $42,564,902 =
	 
	 
	10.303
	%

Note: All labor figures include loading for allowed time."

		
	5.12
	A new Appendix L is hereby added to read as attached.

		
	5.13
	Except as provided herein, the Participation Agreement, as amended by this Amendment No. 11, shall remain in full force and effect.

		
	6.
	EXECUTION BY COUNTERPARTS:

This Amendment No. 11 may be executed in any number of counter- parts, and upon execution by all Participants, each executed counterpart shall have the same force and effect as an original instrument and as if all Participants had signed the same instrument. Any signature page of this Amendment No. 11 may be detached from any counterpart of this Amendment No. 11 without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Amendment No. 11 identical in form hereto but having attached to it one or more signature pages.
/
/
/
/

-15-

		
	7.
	SIGNATURE CLAUSE:

The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 11 on behalf of the party for whom they sign. This Amendment No. 11 is hereby executed as of the 8th day of September, 1986.

	
									
	 
	 
	 
	 
	 
	ARIZONA PUBLIC SERVICE COMPANY

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	SALT RIVER PROJECT AGRICULTURAL

	 
	 
	 
	 
	 
	IMPROVEMENT AND POWER DISTRICT

	ATTEST AND COUNTERSIGN:
	 
	 
	 
	 
	 

	 
	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	SOUTHERN CALIFORNIA EDISON COMPANY

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	 
	Its
	 

	/
	 
	 
	 
	 
	 
	 
	 
	 

/
/
/
/
/
/
/

-16-

		
	7.
	SIGNATURE CLAUSE:

The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 11 on behalf of the party for whom they sign. This Amendment No. 11 is hereby executed as of the _____ day of __________, 1986.
	
									
	 
	 
	 
	 
	 
	ARIZONA PUBLIC SERVICE COMPANY

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT

	 
	 
	 
	 
	 
	 

	ATTEST AND COUNTERSIGN:
	 
	 
	 
	 
	 

	/s/ [ILLEGIBLE]
	 
	By
	/s/ [ILLEGIBLE]

	Its
	SECRETARY
	 
	Its
	PRESIDENT

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	SOUTHERN CALIFORNIA EDISON COMPANY

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	 
	Its
	 

	/
	 
	 
	 
	 
	 
	 
	 
	 

        
/
/
/
/
/
/
/

-16-

		
	7.
	SIGNATURE CLAUSE:

The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 11 on behalf of the party for whom they sign. This Amendment No. 11 is hereby executed as of the _____ day of __________, 1986.

	
									
	 
	 
	 
	 
	 
	ARIZONA PUBLIC SERVICE COMPANY

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT

	 
	 
	 
	 
	 
	 

	ATTEST AND COUNTERSIGN:
	 
	 
	 
	 
	 

	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	SOUTHERN CALIFORNIA EDISON COMPANY

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	 
	 
	Its
	VICE PRESIDENT

	/
	 
	 
	 
	 
	 
	 
	 
	 

        

-16-

    
	
								
	 
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	 
	 
	SENIOR VICE PRESIDENT

	 
	 
	 
	 
	Its
	POWER SUPPLY

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	 
	 
	 
	 
	 
	 
	 
	 

	ATTEST:
	 
	 
	 
	 
	 
	 

	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BY
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	and
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

-17-

	
								
	 
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	 
	Its
	VICE PRESIDENT

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	 
	 
	 
	 
	 
	 
	 
	 

	ATTEST:
	 
	 
	 
	 
	 
	 

	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BY
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	and
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

-17-

	
								
	 
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	/s/ [ILLEGIBLE]

	 
	 
	 
	 
	Its
	PRESIDENT

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	 
	 
	 
	 
	 
	 
	 
	 

	ATTEST:
	 
	 
	 
	 
	 
	 

	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BY
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	and
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	Secretary

    

-17-

    
	
								
	 
	 
	 
	 
	PUBLIC SERVICE COMPANY OF NEW MEXICO

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	EL PASO ELECTRIC COMPANY

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By
	 

	 
	 
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, doing business in the State of Arizona as SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ASSOCIATION

	 
	 
	 
	 
	 
	 
	 
	 

	ATTEST:
	 
	 
	 
	 
	 
	 

	 
	 
	By
	 

	Its
	 
	 
	Its
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	BY
	/s/ [ILLEGIBLE]

	 
	 
	 
	 
	Its
	 

-17-

	
			
	STATE of ARIZONA
	)
	 

	 
	)
	ss.

	County of Maricopa
	)
	 

On this _8th_ day of __September__, 1986 before me, the undersigned Notary Public, personally appeared ___E. E. Van Brunt ____ who acknowledged himself to be the Executive Vice President  of ARIZONA PUBLIC SERVICE COMPANY, an Arizona corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such Executive Vice President .

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	
		
	/s/ [ILLEGIBLE]

	Notary Public

	
		
	My commission expires:

	April 6, 1987

	
			
	STATE of ARIZONA
	)
	 

	 
	)
	ss.

	County of Maricopa
	)
	 

On this ______ day of ___________, 1986 before me, the undersigned Notary Public, personally appeared ______________________ and ______________________ who acknowledged themselves to be the ___________________________ and ___________________________ of SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, an Arizona agricultural improvement district, and that they as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by themselves as such _____________________ and ______________________.

IN WITNESS WHEREOF, I have set my hand and official seal.

	
		
	 

	Notary Public

	
		
	My commission expires:

	 

/
/

-18-

	
			
	STATE of ARIZONA
	)
	 

	 
	)
	ss.

	County of Maricopa
	)
	 

On this ______ day of ___________, 1986 before me, the undersigned Notary Public, personally appeared ______________________ who acknowledged himself to be the ______________________ of ARIZONA PUBLIC SERVICE COMPANY, an Arizona corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such ______________________.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	
		
	 

	Notary Public

	
		
	My commission expires:

	 

	
			
	STATE of ARIZONA
	)
	 

	 
	)
	ss.

	County of Maricopa
	)
	 

On this _29th_ day of _July______, 1986 before me, the undersigned Notary Public, personally appeared _JOHN R LASSEN__________ and ___PAUL D RICE_____ who acknowledged themselves to be the _____PRESIDENT_____________ and _____SECRETARY_____________ of SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, an Arizona agricultural improvement district, and that they as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by themselves as such _____________________ and ______________________.

IN WITNESS WHEREOF, I have set my hand and official seal.

	
		
	/s/ [ILLEGIBLE]

	Notary Public

	
		
	My commission expires:

	April 29, 1987

-18-

	
			
	STATE of CALIFORNIA
	)
	 

	 
	)
	ss.

	County of Los Angeles
	)
	 

On this _26th_ day of __August__, 1986 before me, the undersigned Notary Public, personally appeared ___G. J. Bjorklund____ who acknowledged himself to be the __Vice President  of SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such __Vice Officer  .

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	
		
	/s/ Vera Montemayor

	Notary Public

	
		
	My commission expires:

	Aug. 19, 1987

[Notary Seal]
	
			
	STATE of NEW MEXICO
	)
	 

	 
	)
	ss.

	County of Bernalillo
	)
	 

On this ______ day of __________, 1986 before me, the undersigned Notary Public, personally appeared ______________________ who acknowledged himself to be the ____________________________  of PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such ______________  .

IN WITNESS WHEREOF, I have set my hand and official seal.
	
		
	/s/ [ILLEGIBLE]

	Notary Public

	
		
	My commission expires:

	 

/
/
/

-19-

	
			
	STATE of CALIFORNIA
	)
	 

	 
	)
	ss.

	County of Los Angeles
	)
	 

On this ______ day of __________, 1986 before me, the undersigned Notary Public, personally appeared ______________________ who acknowledged himself to be the _______________________  of SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such ______________  .

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	
		
	 

	Notary Public

	
		
	My commission expires:

	 

	
			
	STATE of NEW MEXICO
	)
	 

	 
	)
	ss.

	County of Bernalillo
	)
	 

On this _25th_ day of __September__, 1986 before me, the undersigned Notary Public, personally appeared ____J. L. Wilkins____ who acknowledged himself to be the ____Senior Vice President_  of PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such __Senior Vice Officer  .

IN WITNESS WHEREOF, I have set my hand and official seal.

	
		
	/s/ SHERRY LEESON

	Notary Public

	
		
	My commission expires:

	July 1, 1988

[Notary Seal]
/
/
/

-19-

	
			
	STATE of TEXAS
	)
	 

	 
	)
	ss.

	County of El Paso
	)
	 

On this _18th_ day of  July, 1986 before me, the undersigned Notary Public, personally appeared J. E. Wasiak who acknowledged himself to be the Vice President  of EL PASO ELECTRIC COMPANY, a Texas corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such Vice President.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	
		
	/s/ CECILIA R. SHEA

	Notary Public

	
		
	My commission expires:

	July 3, 1989

	
			
	STATE of CALIFORNIA
	)
	 

	 
	)
	ss.

	County of Los Angeles
	)
	 

On this ______ day of ___________, 1986 before me, the undersigned Notary Public, personally appeared ______________________ and ______________________ who acknowledged themselves to be the ___________________________ and ___________________________ of SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (doing business in the State of Arizona as SOUTHERN CALIFORNIA POWER AUTHORITY ASSOCIATION), a California joint powers agency, and that they as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by themselves as such _____________________ and ______________________.

IN WITNESS WHEREOF, I have set my hand and official seal.

	
		
	 

	Notary Public

	
		
	My commission expires:

	 

/
/

-20-

	
			
	STATE of TEXAS
	)
	 

	 
	)
	ss.

	County of El Paso
	)
	 

On this ______ day of ___________, 1986 before me, the undersigned Notary Public, personally appeared ______________________ who acknowledged himself to be the ______________________  of EL PASO ELECTRIC COMPANY, a Texas corporation, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such ______________________.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	
		
	 

	Notary Public

	
		
	My commission expires:

	 

	
			
	STATE of CALIFORNIA
	)
	 

	 
	)
	ss.

	County of Los Angeles
	)
	 

On this _30th_ day of _July______, 1986 before me, the undersigned Notary Public, personally appeared __Gale A. Drews_______ and __Frank Salas_________ who acknowledged themselves to be the ___President_______________ and _Asst Secretary____________ of SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (doing business in the State of Arizona as SOUTHERN CALIFORNIA POWER AUTHORITY ASSOCIATION), a California joint powers agency, and that they as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by themselves as such __President__________ and __Asst Secretary______.

IN WITNESS WHEREOF, I have set my hand and official seal.
	
		
	/s/ Raul A. Mora

	Notary Public

	
		
	My commission expires:

	 

[Notary Seal]
/
/

-20-

	
			
	STATE of CALIFORNIA
	)
	 

	 
	)
	ss.

	County of Los Angeles
	)
	 

On this _29th_ day of _October___, 1986 before me, the undersigned Notary Public, personally appeared Eldon A. Cotton who acknowledged himself to be the Assistant Chief Engineer – Power of DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES, a California municipal corporation, and that he as such officers, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the company by himself as such Assistant Chief Engineer – Power.

IN WITNESS WHEREOF, I have set my hand and official seal.

	
		
	/s/ Sally Morrison Fick

	Notary Public

	
		
	My commission expires:

	November 18, 1988

[Notary Seal]

/
/
/
/
/
/
/
/
/
/
/
/
/
/

-21-

APPENDIX L
START-UP AND PRE-OPERATION ADMINISTRATIVE AND GENERAL EXPENSE
		
	L.1
	Calculation of Start-Up and Pre-Operational A & G Expense

		
	L.1.1
	For the period from October 1, 1984 through completion of start-up and pre-operation activities for ANPP, the administrative and general expense associated with such activities for each Generating Unit shall be determined by the following formula: (An example calculation is shown in Exhibit L-A.)

		
	AGE =
	[(SUPO) x (OMF) x (OMAG)] ÷ [(SUPO) x (1-OMF) x (CFAG)]

Where:
		
	Age
	=    Monthly start-up and pre-operation administrative and general expenses for each Generating Unit.

		
	SUPO
	=    Monthly Start-Up and Pre-Operation Costs for each Generating Unit.

		
	OMF
	=    Percent (expressed as decimal of the total monthly Start-UP and Pre-Operation Costs for each Generating Unit to be allocated to the operation and maintenance administrative and general expense formula, as determined in Section L.1.3.

		
	OMAG
	=    Operation and maintenance administrative and general expense percentages as determined and applied in Section E.1.7 and E.1.9 of the Participation Agreement.

		
	CFAG
	=    Construction administrative and general expense percentage of one percent (1%) as applied pursuant 

L-1

to Section D.1.14 of the Agreement.
		
	L.1.2
	Start-Up and Pre-Operation Costs for ANPP common facilities shall be allocated by apportioning one-third (1/3) of these expenses to each ANPP Generating Unit prior to determining the administrative and general expense associated with each Generating Unit.

		
	L.1.3
	To determine start-up and pre-operation administrative and general expense (AGE) in Section L.1.1 the monthly total Start-Up and Pre-Operation Costs for each ANPP Generating Unit, including its common facilities share, shall be allocated between construction and operation & maintenance in accordance with the benchmark time periods and percentages shown below. If a benchmark time period begins in the middle of a month, the change in percentage allocation to construction and operation & maintenance expenses shall take place on the first day of the calendar month following such benchmark.

	
					
	 
	 
	Benchmark Time Period
for Each Generating Unit
	 
	Percent Allocation Between
Operation & Maintenance
and Construction
OMF/(1-OMF)

	 
	 
	 
	 
	 

	a.
	 
	10/1/84 to eight (8) months
prior to Beginning of Gen-
erating Unit Precore Hot
Functional Test.
	 
	25% O&M/75% Construction

	b.
	 
	Eight (8) months prior to
Beginning of Generating
Unit Precore hot Functional
Test to Beginning of Gen-
erating Unit Precore Hot
Functional Test.
	 
	50% O&M/50% Construction

L-2

	
						
	 
	 
	 
	Benchmark Time Period
for Each Generating Unit
	 
	Percent Allocation Between
Operation & Maintenance
and Construction
OMF/(1-OMF)

	 
	 
	 
	 
	 
	 

	(Cont'd)
	c.
	 
	Beginning of Generating Unit Precore Hot Functional
Test to Beginning of Generating Unit Fuel Load.
	 
	70% O&M/30% Construction

	 
	d.
	 
	Beginning of Generating Unit
Fuel Load to satisfactory completion of Power Ascension
Level 50%
	 
	90% O&M/10% Construction

	 
	 
	 
	Satisfactory completion of
Power Ascension Level 50%
to completion of start-up
and pre-operation.
	 
	100% O&M

L.2    Adjustments
		
	L.2.1
	The benchmark time periods in Items L.1.3a and L.1.3b require an estimate of the Beginning of Generating Unit Precore Hot Functional Test for a Generating Unit. Should the actual date for the Beginning of Generating Unit Precore Hot Functional Test for a Generating Unit be different than estimated, adjustments shall be made to the amount of administrative and general expense actually charged based on the appropriate allocation of Start-Up and Pre-Operation Costs to construction and operation & maintenance expenses.

		
	L.2.2
	Amount of administrative and general expenses determined pursuant to the Letter of Understanding for the period October 1, 1984 through March, 1985 that were different than the amount actually paid for the same period have, 

L-3

pursuant to the Letter of Understanding appeared as a credit on the request for advancement of Operating Funds for ANPP dated June 14, 1985, Request No. PVO-093. Such expense differences accrued interest at the rate from time to time publicly announced by Citibank, N. A., New York, New York, as its prime interest rate less two percent (2%), from the date of payment of such difference to the date of mailing of the request for advancement of Operating Funds. Any such amounts were allocated to each Participant in accordance with its Generation Entitlement Share, and were clearly delineated on the Operating Agent's request for advancement of Operating Funds.
		
	L.3
	Credit to Future Requests for Advancement of Operating Funds for ANPP

		
	L.3.1
	The Operating Agent shall credit to future requests for advancement of Operating Funds, thirteen million dollars ($13,000,000) plus interest, determined pursuant to Section L.3.2 of this Appendix L, for administrative and general expense charged to Start-Up and Pre-Operation Costs through September 30, 1984. Such credit will be allocated to each Participant in accordance with its Generation Entitlement Share, and is separate and in addition to any adjustment to administrative and general expense necessitated by the routine annual adjustment to the Operation and Maintenance A & G Ratio pursuant to Section E.10.2 of the Participation Agreement. No other 

L-4

adjustment shall be made to change administrative and general expense charged to Start-Up and Pre-Operation Costs through September 30, 1984, except for those related to any future adjustments made to Start-Up and Pre‐Operation Costs incurred through such date.
L.3.2    Interest will be charged on the unpaid balance of the thirteen million dollars ($13,000,000) credit beginning on October 1, 1984. The interest rate to be applied will be the rate from time to time publicly announced by Citibank, N.A., New York, New York, as its prime interest rate, less two percent (2%). The initial credit shall include all interest accrued from September 30, 1984, and subsequent monthly credits will be applied first against accrued interest. In addition to such monthly payments of all accrued interest, the principal balance shall be amortized by crediting monthly an amount equal to not less than one twenty-fourth (1/24) of such amount until the full thirteen million dollars ($13,000,000) principal amount has been credited. Pursuant to the Letter of Understanding, the initial credit hereunder occurred with the first request for the advancement of Operating Funds dated March 1, 1985.
/
/
/
/

L-5

	
												
	EXHIBIT L-A

	SAMPLE CALCULATION of

	MONTHLY ADMINISTRATIVE AND GENERAL EXPENSE FOR

	START-UP AND PRE-OPERATION COSTS FOR

	ANPP GENERATING UNIT NO. 1

	 
	 
	 
	 
	 
	 
	 
	 
	 

	AGE = [(SUPO) X (OMF) X (OMAG)] + [(SUPO) X (1-OMF) X (CFAG)]

	 
	 
	 
	 
	 
	 

	ASSUMPTIONS:
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	SUPO
	=
	$9,500,000 (1)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	OMF
	=
	90%
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	OMAG
	=
	16.442% OF Project Manager's/Operating Agent's ANPP labor, plus 1% of contractor's costs, plus 0% of other costs.

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	CFAG
	=
	1%
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Project Manager's/Operating Agent's ANPP Labor Costs = $4,750,000

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	CONTRACTOR COSTS = $3,800,000
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	OTHER COSTS = $950,000
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	CALCULATION:
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	AGE
	=
	[($9,500,000) X (.9) X (OMAG)] + (9,500,000)(1-.9) X (CFAG)]

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	(4,750,000)(.9)(.16442)
	 

	 
	[($9,500,000) x (.9) x (OMAG) = ÷
	(3,800,000)(.9)(.01) = $737,096
	 

	 
	 
	 
	 
	 
	+(950,000)(.9)(0.0)
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	[($9,500,000) x (1-.9) x (CFAG)] = ($9,500,000)(.1)(.01) = $9,500
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	AGE
	=
	$737,096 + $9,500
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	AGE
	=
	$
	746,596
	

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	(1
	)
	Includes 1/3 of Start-Up and Pre-Operation Costs for common facilities.

	 
	 
	 
	 
	 
	 
	 
	 
	 

	(2
	)
	The OMAG rate will be applied to only the Project Manager's/Operating Agent's ANPP labor incurred for Start-UP and Pre-Operation Costs times the OMF factor in effect.

L-6

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