Document:

exh1012_123107.htm

     

    
      

    

    EXHIBIT
10.12

     

    EXECUTION COPY

    
      
 

       

      

       

      

       

      TRANSITION
SERVICES AGREEMENT

       

      by
and among

       

      PUBLIC
SERVICE COMPANY OF NEW MEXICO,

       

      PNMR
SERVICES COMPANY,

       

      and

       

      NEW
MEXICO GAS COMPANY, INC.

       

       

      Dated:
January 12, 2008

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
OF CONTENTS

       

      
        	
                SECTION
      1. 

              	
                Definitions.

              	
                1

              
	
                SECTION
      2.

              	
                Interpretation.

              	
                5

              
	
                SECTION
      3.

              	
                Services
      to be Provided.

              	
                6

              
	
                SECTION
      4.

              	
                Term
      and Termination.

              	
                9

              
	
                SECTION
      5.

              	
                Buyer
      Employment Obligations.

              	
                11

              
	
                SECTION
      6.

              	
                Billing
      and Payment of Costs of Services; Invoices for
      Services.

              	
                14

              
	
                SECTION
      7.

              	
                Administration
      of Agreement.

              	
                15

              
	
                SECTION
      8.

              	
                Relationships
      Among the Parties.

              	
                15

              
	
                SECTION
      9.

              	
                Other
      Agreements.

              	
                16

              
	
                SECTION
      10.

              	
                Indemnification;
      Release; Limit on Liability.

              	
                16

              
	
                SECTION
      11.

              	
                Relationship
      between Seller Service Providers.

              	
                18

              
	
                SECTION
      12.

              	
                Headings.

              	
                18

              
	
                SECTION
      13.

              	
                Required
      Insurance.

              	
                18

              
	
                SECTION
      14.

              	
                Force
      Majeure.

              	
                19

              
	
                SECTION
      15.

              	
                Notices.

              	
                19

              
	
                SECTION
      16.

              	
                Successors
      and Assigns.

              	
                20

              
	
                SECTION
      17.

              	
                Signatures;
      Counterparts.

              	
                20

              
	
                SECTION
      18.

              	
                Amendments.

              	
                20

              
	
                SECTION
      19.

              	
                Dispute
      Resolution.

              	
                20

              
	
                SECTION
      20.

              	
                Governing
      Law.

              	
                21

              
	
                SECTION
      21.

              	
                Entire
      Agreement.

              	
                21

              
	
                SECTION
      22.

              	
                Negotiated
      Agreement.

              	
                21

              
	
                SECTION
      23.

              	
                Waiver.

              	
                22

              
	
                SECTION
      24.

              	
                Severability.

              	
                22

              
	
                SECTION
      25.

              	
                No
      Third Party Beneficiaries

              	
                22

              
	
                SECTION
      26.

              	
                Press
      Release.

              	
                22

              
	
                SECTION
      27.

              	
                Further
      Assurance.

              	
                23

              

      

       

    

     

    
      Schedule
1                                                               
Services

      Schedule
2          
                                                 
   Historical Reimbursable Costs

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      TRANSITION
SERVICES AGREEMENT

       

      THIS TRANSITION SERVICES AGREEMENT
(this “Agreement”), dated as
of January 12, 2008, is by and among Public Service Company of New Mexico, a New
Mexico corporation (“Seller”), PNMR
Services Company, a New Mexico corporation (“PNMRSC” and, together
with Seller, “Seller
Service Providers”), and New Mexico Gas Company, Inc., a Delaware
corporation (“Buyer”).

       

      Recitals

       

      WHEREAS, Seller, Buyer and
Parent have entered into the Asset Purchase Agreement, dated the date hereof
(the “Purchase
Agreement”), under which Seller has agreed to sell the assets of Seller’s
regulated gas operations identified in the Purchase Agreement (the “Purchased Assets”)
and Buyer has agreed to purchase from Seller the Purchased Assets identified in
the Purchase Agreement;

       

      WHEREAS, Seller is a
wholly-owned subsidiary of PNM Resources, Inc., a New Mexico corporation (“PNMR”), and is an
affiliate of PNMRSC, which is also wholly-owned by PNMR;

       

      WHEREAS, PNMRSC provides and
has provided certain of the Services to PNMR and its Affiliates including
Seller; and

       

      WHEREAS, the Parties are
entering into this Agreement to provide for certain transition services
following the Closing under the Purchase Agreement and as otherwise provided
herein.

       

      NOW, THEREFORE, the Parties
hereto agree as follows:

       

      SECTION
1. 
Definitions.

       

      Capitalized
terms used, but not otherwise defined, herein shall have the meanings given to
them in the Purchase Agreement or as follows:

       

      “AAA” is defined in
Section 19.

       

      “Accessories” shall
mean, collectively, all tools, special tools, equipment, machines, spare parts
and other materials required for the performance by Seller Service Providers of
the Services.

       

      “Affiliate” has the
meaning set forth in Rule 12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934.

       

      “Albuquerque Meter
Readers” means the Designated Employees corresponding to the 28 FTE on
Schedule 1 for
“ABQ metro Meter Reading”.

       

      “Applicable Laws and
Regulations” shall mean all applicable federal, state, tribal and local
laws, ordinances, rules and regulations, and all duly promulgated orders and
other duly authorized actions of any Governmental Entity having jurisdiction
over the Parties, their respective Affiliates or facilities and/or the
respective Services they provide.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      “Business” means the
business of owning, managing and/or operating the Purchased Assets.

       

      “Buyer
Representatives” means, collectively, the officers, employees, counsel,
accountants, financial advisors, consultants and authorized representatives of
Buyer.

       

      “Buyer Indemnified
Party” is defined in Section 10(a).

       

      “Closing Date Designated
Employees” is defined in Section 5(c)(i).

       

      “Contract Administration
Officers” is defined in Section 7.

       

      “Departed Designated
Employee” is defined in Section 5(c)(iii).

       

      “Designated Employees”
is defined in Section 5(b).

       

      “FERC” means the
Federal Energy Regulatory Commission and any Governmental Entity that succeeds
to the jurisdiction now or hereafter vested in the FERC by Applicable Laws and
Regulations.

       

      “Force Majeure Event”
means an act of God; fire, flood, earthquake, storm, lightning, weather event or
similar disaster or happenstance; a strike, lockout or other industrial
disturbance; an act of the public enemy, sabotage, war, act of terrorism,
insurrection or blockade; riot or other civil disturbance; epidemic; explosions;
or any other similar event that, in each such case, prevents, in whole or in
part, the performance of a Party’s obligations under this Agreement, is not
reasonably within the control of the affected Party and which by the exercise of
commercially reasonable efforts the affected Party is unable to overcome or
prevent, provided however that no Party will be required to settle any labor
dispute.

       

      “Getz Team” means
Gordon Getz and each of the following persons: Michele Curry, Dorothy Elza,
Dorothy Hanttula, Hojat (Jeff) Jafari, Betty Stacey-Leaton, Annie Malone, Stacey
McPherson and Peter Taichert.

       

      “Governmental
Approval” means any consent, authorization, registration, license,
certificate, permit, grant or approval of any Governmental Entity that is
necessary for the operation of the Purchased Assets in accordance with
Applicable Laws and Regulations.

       

      “Governmental Entity”
means the United States of America and any other federal, state, tribal, local,
or foreign governmental or regulatory authority, department, agency, commission,
body, court, or other governmental entity.

       

      “Interest Rate” means,
for any date, the lesser of (a) the per annum rate of interest equal to the
prime lending rate as may from time to time be published in The Wall Street Journal under
“Money Rates” on such day (or if not published on such day on the most
recent preceding day on which published), plus two percent (2%) and (b) the
maximum rate permitted by Applicable Law and Regulations.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “IT Assets” means
those applications, hardware and related systems identified as the “Impacted
Systems/Business Areas” to be set forth in the Migration Plan.

       

      “Loss” is defined in
Section 10(a).

       

      “Management Transition
Team” is defined in Section 5(a).

       

      “Migration Plan” means
that detailed plan for migration of IT Assets to the Buyer to be developed by
the Parties pursuant to Section 3(a)(iv).

       

      “Notice of Claim” has
the meaning set forth in Section 10(a)(iii)(A).

       

      “Party” means Seller,
PNMRSC, Buyer or their respective permitted successors or assigns, as the
context requires.

       

      “Person” means an
individual, partnership, joint venture, corporation, limited liability company,
trust, association or unincorporated organization, or any Governmental
Entity.

       

      “Qualifying Offer”
means an offer of employment by Buyer to each Designated Employee that complies
with Section 7.9(d) of the Purchase Agreement and is for employment at a
location within 50 miles of the location of such Designated Employee’s principal
place of employment with the applicable Seller Service Provider on the date on
which such offer of employment is made.

       

      “Reimbursable Costs”
means, with respect to the Services, any and all costs calculated by use of
accounting and allocation methods currently used by Seller Service Providers in
accounting for and allocating service costs to its Affiliates, incurred or
charged by Seller Service Providers with respect to the provision of Services
pursuant to this Agreement plus Set-Up Costs to the extent contemplated in
Section 3(a)(v); for the avoidance of doubt, such costs shall include any price
increase or change in terms or conditions imposed by any third party vendors
under their contracts with Seller Service Providers (or their respective
Affiliates).  The Reimbursable Costs for each Service may not include
any officer or management oversight costs that exceed 24% of the non-oversight
costs associated with such Service.  Reimbursable Costs shall not
include any Set-Up Costs other than as contemplated by Section 3(a)(v) or any
costs and expenses incurred in connection with the development and
implementation of the Migration Plan, including the provision and extraction of
data as contemplated by Section 3(a)(iv)(B).  Buyer shall be entitled
to see Seller Service Providers’ itemized invoices of costs prior to payment due
dates.  Reimbursable Costs shall not include costs for Services that
are not provided to Buyer for any reason, including any Force Majeure Event,
other than Buyer’s refusal to receive such Services not in compliance with the
provisions of this Agreement.  With respect to the Services and
subject to the prior consent of Buyer, up to $3,500,000 of costs incurred by
Seller Service Providers with respect to obtaining any applicable license rights
may be included as Reimbursable Costs, and any costs above $3,500,000 will be
shared equally between Buyer and Seller Service Providers.  Further,
Buyer will reimburse Seller for New Mexico gross receipts tax incurred by the
Seller Service Providers with respect to the Services.  By way of
example, Schedule
2 sets forth the historical amount of Reimbursable Costs for the Services
for the period from January 1, 2007 through August 31,
2007.  These costs are presented in Schedule 2 for
informational purposes only and will change subsequent to the date of this
Agreement to reflect actual Reimbursable Costs incurred by Seller Service
Providers in connection with the provisions of the Services under this Agreement
as of subsequent invoice dates.

       

       

      
        
          
          

        

        
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      “Seller
Representatives” means, collectively, the officers, employees, counsel,
accountants, financial advisors, consultants and authorized representatives of
Seller Service Providers or their Affiliates.

       

      “Seller Service
Provider” means each of Seller and PNMRSC.

       

      “Seller Service Providers
Indemnified Party” is defined in Section 10(a).

       

      “Seller System” means
the systems and equipment owned or leased by Seller and used by Seller from
December 1, 2007 through the Closing Date in the conduct of the
Business.

       

      “Service Period” means
the term beginning immediately following the Closing on the Closing Date and
ending at 12:00 midnight prevailing Mountain Time twelve (12) months from the
Closing Date, subject to early termination, in whole or in part, in accordance
with Section 4; provided, that such
term shall, unless earlier terminated in accordance with Section 4, be
automatically extended for successive six month renewal terms until such time as
Buyer or Seller Service Providers, as the case may be, provides to such other
Party or Parties written notice of non-renewal no less than thirty (30) days
prior to the expiration of the initial or then-current term of this
Agreement.

       

      “Services” has the
meaning set forth in Section 3(a)(i).

       

      “Service Termination”
means the termination of, or Buyer ceasing to receive, a Service for any reason
during the Service Period, whether by means of early termination of a Service
pursuant to Section 4, the expiration and non-renewal of a Service Term, the
expiration and non-renewal of the Service Period, or otherwise.

       

      “Service Termination Date
Designated Employees” is defined in Section 5(c)(ii).

       

      “Set-Up Costs” is
defined in Section 3(a)(v).

       

      “Taxes” means all
taxes, charges, fees, levies, penalties, or other assessments imposed by any
foreign or United States federal, state, tribal or local Governmental Entity,
including income, excise, property, sales, gross receipts, compensating,
transfer, franchise, license, payroll, withholding, social security, or other
taxes (including any escheat or unclaimed property obligations), including
any interest, penalties, or additions attributable thereto.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      “Unwind Costs” shall
be Termination Costs plus any applicable severance costs relating to termination
of employees contemplated to be paid pursuant to Section
5(c)(iv).  “Termination Costs”
means all of Seller Service Providers’ reasonable costs associated with closing
out its performance of the Service or Services under this Agreement upon
termination or non-renewal of any Service Term or any reduction in the Services
pursuant to Section 4, contractually required termination payments to
subcontractors, rents and lease termination costs associated with facilities and
leased property of Seller Service Providers and their subcontractors used to
support their performance under this Agreement, termination fees for utilities
and data services, the costs of Accessories and other capital expenditures or
items of Seller Service Providers and their subcontractors dedicated to
performance under this Agreement (which costs to be paid as Unwind Costs shall
be decreased by the amount of such costs without duplication previously
recovered through Buyer’s payment of Reimbursable Cost under this Agreement and
by the assumed remaining value allocable to such Accessories, capital
expenditures or items, insofar as not transferred to Buyer), and termination or
modification of software license and maintenance arrangements with respect to
software and office equipment used in providing the Services under this
Agreement, in all cases excluding severance costs relating to termination of
employees. Aggregate Termination Costs shall be no greater than
$500,000.

       

      SECTION
2. 
Interpretation.

       

      In this
Agreement, unless a clear contrary intention appears:

       

      (a) reference
to a Party includes such Party’s successors and assigns but, if applicable, only
if such successors and assigns are permitted by this Agreement, and reference to
a Party in a particular capacity excludes such Party in any other
capacity;

       

      (b) reference
to any gender includes the other gender;

       

      (c) reference
to any agreement (including this Agreement), document or instrument means
such agreement, document or instrument as amended or modified and in effect from
time to time in accordance with the terms thereof and, if applicable, the terms
hereof;

       

      (d) reference
to any Article, Section or Schedule means such Article, Section or Schedule to
this Agreement, and references in any Article, Section, Schedule or definition
to any clause means such clause of such Article, Section, Schedule or
definition;

       

      (e) “hereunder”,
“hereof”, “hereto” and words of similar import are references to this Agreement
as a whole and not to any particular Section or other provision hereof or
thereof;

       

      (f) “including” (and
with correlative meaning “include”) means including without limiting the
generality of any description preceding such term; and

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (g) relative
to the determination of any period of time, “from” means “from and including,”
“to” means “to but excluding,” and “through” means “through and
including.”

       

      SECTION
3. 
Services to be Provided.

       

      (a) Services

       

      (i) Services.  Subject
to Applicable Laws and Regulations and the terms and conditions of this
Agreement, Seller Service Providers shall provide or cause to be provided to
Buyer during the Service Period certain services (as described on Schedule 1 attached
hereto which is incorporated herein by reference) (collectively, the “Services” and
individually a “Service”). In
addition to identifying the Services which shall be provided to Buyer, Schedule 1 sets
forth, among other items, (A) the initial term for the provision of each of the
Services (with respect to each Service, a “Service Term”) and
(B) the number of employees designated by Seller Service Providers to perform
each Service. Seller Service Providers will provide the applicable Service for
one Service Term, unless Buyer provides thirty (30) days advance notice
requesting an additional Service Term; provided, that any
additional Service Term may not extend beyond the Service Period and shall be
subject to Seller Service Providers’ ability to terminate Services in accordance
with Section 4(c). Buyer will pay Seller’s Reimbursable Costs with respect to
the Services actually delivered to Buyer.

       

      (ii) Performance of
Services.  In connection with the performance of Services,
Seller Service Providers may: (A) subcontract with a non-Affiliate and/or
personnel of a non-Affiliate to perform any portion of the Services to be
performed hereunder; and (B) utilize personnel who are employees of
Affiliates of Seller Service Providers or may subcontract work to Affiliates of
Seller Service Providers; provided, that all
such personnel and subcontractors utilized by Seller Service Providers shall
(1) be fully qualified to perform the applicable Services under this
Agreement in accordance with all Applicable Laws and Regulations, and the other
terms and conditions of this Agreement, and (2) perform or provide such Services
pursuant to the same standard of care and timeliness and consistent with the
other material terms and conditions applicable to Seller Service Providers under
the provisions of this Agreement.  Seller Service Providers shall
include in their Reimbursable Costs no more than the actual costs Seller Service
Providers incur in connection with such subcontracted or utilized personnel
performing the Services hereunder.  Seller Service Providers shall not
include in their Reimbursable Costs charges for any Services that are carried
out by Buyer’s subcontractor or Affiliates to the extent such Persons are acting
in a subcontracting capacity for Buyer.

       

      (iii) Scope of
Services.  During the Service Period, Seller Service Providers
and Buyer agree to consult with each other at regular intervals and at such
times as may be reasonably requested by the other Party with respect to the
performance by Seller Service Providers of the Services, the continued
desirability of Seller Service Providers providing specific Services, the timing
of the early termination of any Service, the occurrence of any events or
circumstances negatively affecting Seller Service Providers’ continued ability
to provide any specific Service and other matters specifically relating to, or
impacting, the provision of the Services.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (iv) Migration
Plan.  Seller Service Providers and Buyer shall perform their
respective obligations as set forth in the Migration Plan.  The
Parties shall cooperate with each other to develop a mutually acceptable
Migration Plan no later than six (6) months following the date of this Agreement
as follows:

       

      A. Buyer and
Seller Service Providers will provide the appropriate personnel for, and will
start, the development of the Migration Plan within thirty (30) days following
the date of this Agreement.  In connection therewith, Seller Service
Providers will demonstrate and discuss, and Buyer will review and select,
systems, processes and software applications to replace any of the foregoing
that are used by Seller in connection with the Business but which do not
constitute Purchased Assets.

       

      B. The
Migration Plan will state that Seller Service Providers will provide Buyer with
(1) test data for the migration of human resources systems, accounting systems,
customer information and billing systems, and work management systems not later
than thirty (30) days prior to Closing, (2) a complete set of such foregoing
data in connection with the Business for human resources systems and accounting
systems within two (2) Business Days following Closing and (3) a complete set of
such data in connection with the Business for customer information and billing
systems and work management systems within thirty (30) days following
Closing.

       

      C. Buyer and
Seller Service Providers will each pay their costs and expenses incurred in
connection with the development and implementation of the Migration Plan,
including the provision and extraction of data as contemplated by Section
3(a)(iv)(B).

       

      (v) Set-Up
Costs.  Within six (6) months following the date of this
Agreement, the Parties shall develop a mutually acceptable budget that details
the estimated preparation and set-up costs and expenses that will be incurred by
Seller Service Providers in connection with ensuring that Seller Service
Provider systems will permit Seller Service Providers to perform the Services as
of the date the Service Period commences (the “Set-Up
Costs”).  Set-Up Costs incurred by Seller Service Providers
shall be Reimbursable Costs to the extent such Set-Up Costs do not exceed the
levels set forth in the budget contemplated in the foregoing sentence (as such
amounts may be adjusted by mutually  approved change
orders).  Set-Up Costs (A) shall not include any officer or management
oversight costs and (B) shall not include any costs and expenses incurred in
connection with the development and implementation of the Migration Plan,
including the provision and extraction of data as contemplated by Section
3(a)(iv)(B).

       

      (vi) Management
Obligation.  To the extent commercially reasonable, each Seller
Service Provider shall manage the provision of its Services in such a way as to
minimize Unwind Costs associated with the termination of such
Services.

       

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (b) Seller Service Provider
Covenants.

       

      (i) Seller Service Providers’
Ability to Provide Services.  Seller Service Providers shall
maintain sufficient personnel and facilities to provide the Services at all
times in accordance with this Agreement.

       

      (ii) Standards for the Provision
of Services.  The Services will be performed in a commercially
reasonable manner and with at least the same standard of care and timeliness
that the Services were provided to the Business during the period between
December 1, 2007 and the Closing Date.  EXCEPT AS SET FORTH IN THIS
SECTION 3(b)(ii), SELLER SERVICE PROVIDERS MAKE NO REPRESENTATION, WARRANTY OR
GUARANTY, EXPRESS OR IMPLIED, OF ANY KIND CONCERNING THE SERVICES AND ANY
RESULTS OR WORK PRODUCT AND SPECIFICALLY MAKE NO WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, AND NONE SHALL BE IMPLIED.  ALL
OTHER REPRESENTATIONS, WARRANTIES OR GUARANTEES, WRITTEN OR ORAL, EXPRESS OR
IMPLIED IN FACT OR IN LAW, AND WHETHER OR NOT BASED ON STATUTE ARE
EXCLUDED.

       

      (c) Certain
Covenants.  The Parties agree to the following additional
covenants:

       

      (i) General.  Systems,
personnel, infrastructure and applications of Seller Service Providers used by
and under the control of Seller Service Providers to perform the Services
(excluding any of the foregoing that constitute Purchased Assets), shall be
managed by Seller Service Providers.

       

      (ii) Business
Data.  Seller Service Providers shall have the right to move
any data and processing, if necessary, within functionally equivalent equipment
owned or leased by Seller Service Providers so long as such movement does not
adversely impact the performance of the Services.

       

      (iii) Consents.  Seller
Service Providers in cooperation with Buyer shall use commercially reasonable
efforts to obtain appropriate vendor licenses or consents for Seller Service
Providers to use for the benefit of Buyer as part of the Services any Seller
System and software currently utilized and necessary to conduct the
Business.

       

      (iv) Access.  Buyer
shall grant Seller Service Providers access to its computer and other equipment,
hardware, software, employees and premises, including parking space and
workspace, as reasonably necessary for Seller Service Providers to provide the
Services.  Buyer will permit each Seller Service Provider’s employees
and contractors such access to and egress from locations and facilities owned or
controlled by Buyer and records and materials located thereon or therein as are
reasonably necessary or appropriate to perform the Services as well as a
suitable work place at such locations to the extent so necessary or
appropriate.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (v) Seller Service Providers’
Records.  To the extent allowed by Applicable Law and
Regulations, Buyer and its duly authorized representatives may inspect, review,
copy and utilize at reasonable times and during regular business hours, Seller
Service Providers’ files, books, records, accounts, servicing practices,
policies and procedures and quality control policies and procedures relating to
the Services.  Seller Service Providers will maintain complete and
accurate records relating to the Services in accordance with Seller Service
Providers’ standard practices and for so long as required for tax and other
regulatory purposes.

       

      (vi) Records
Retention.  Each Party shall retain all records relating to
this Agreement and for so long as required by any Governmental Entity having
jurisdiction.

       

      (vii) Cooperation.  The
Parties will cooperate in order to facilitate the provision and receipt of the
Services.  The Parties acknowledge that the Services are dependent on
such cooperation.

       

      (d) No
Breach.  Notwithstanding anything to the contrary herein, no
Party shall be deemed to be in breach of its obligations hereunder by reason of
any of the following:  (i) the failure of a Party or any third
party to grant its consent to any matter requiring such consent prior to such
other Party’s performance of its obligations with respect to such matter;
(ii) the failure of a Party to provide funds which are necessary for such
other Party to perform its obligations with respect to such matter;
(iii) any acts of a Seller Service Provider based on reliance upon a
direction of Buyer or a Buyer Representative; or (iv) any acts of Buyer
based on reliance upon a direction of a Seller Service Provider or a Seller
Representative.

       

      SECTION
4. 
Term and Termination.

       

      (a) Term.  The
term of this Agreement shall begin on the Closing Date and continue through the
Service Period.

       

      (b) Option to Terminate Services
Provided by Other Party.  Unless otherwise provided for
hereunder, Buyer may elect, by giving written notice to a Seller Service
Provider forty-five (45) days in advance (“Service Termination
Notice”), to terminate the provision by such Seller Service Provider of
all or any of the Services that it provides to Buyer hereunder, or to have all
or any of such Services performed by its own employees or any other third party
retained by Buyer prior to the expiration of the Service Period; provided, however, that for
Buyer to effect the termination of a Service by any means (including any
termination or nonrenewal of this Agreement), Buyer must pay to Seller Service
Provider providing such Service the applicable Unwind Costs incurred by, or
deemed to be incurred by, such Seller Service Provider in respect of such
termination as well as any other amounts due under this Agreement, including
Reimbursable Costs with respect to such Service, with any accrued interest at
the Interest Rate; provided, however, that Buyer
has no obligation to pay Seller Service Provider providing such Service the
applicable Unwind Costs for the termination of such Service that occurs as a
result of Seller Service Providers’ breach under this Agreement.

       

       

      
        
          
          

        

        
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      (c) Seller Service Providers
Option to Terminate Services.  Seller Service Providers may
elect, by giving sixty (60) days prior written notice to Buyer, to
terminate the provision by any Seller Service Provider of all or any of Services
effective as of the expiration of the initial term or any renewal term of this
Agreement. Upon such termination of Services under this Section 4(c), Buyer
shall pay to the Seller Service Provider providing such terminated Service the
applicable Unwind Cost incurred by, or deemed to be incurred by, such Seller
Service Provider in respect of such termination as well as any other amounts due
under this Agreement, including Reimbursable Costs with respect to such Service,
with any accrued interest at the Interest Rate.

       

      (d) Right to Suspend Performance
or to Terminate the Agreement.  Each Seller Service Provider
shall have the right to suspend the performance of its obligations under this
Agreement in the event of Buyer’s failure to make payments due, owing and not
disputed in good faith pursuant to Section 6 hereof to such Seller Service
Provider as required under this Agreement, and such failure has not been cured
within five (5) days after written notice of such failure to
Buyer.  If Buyer cures such payment default within such five (5) day
cure period, such Seller Service Provider shall not be entitled to suspend
performance under this Agreement thereafter.  The Seller Service
Provider shall have the right to terminate this Agreement with respect to its
provision of Services in the event such failure to make payment has not been
cured within thirty (30) days after written notice of such failure to
Buyer and Buyer is not disputing the payment in good faith. In the case of any
advance termination by any Seller Service Provider due to Buyer’s failure to
make payments owed to such Seller Service Provider under this Section 4(d),
Buyer must pay to such Seller Service Provider providing such Service the
applicable Unwind Costs incurred by, or deemed to be incurred by, such Seller
Service Provider in respect of such termination as well as any other amounts due
under this Agreement, including Reimbursable Costs with respect to such Service,
with any accrued interest at the Interest Rate; provided, however, that Buyer
has no obligation to pay such Seller Service Provider providing such Service the
applicable Unwind Costs for the termination of such Service that occurs as a
result of Seller Service Providers’ breach under this Agreement.

       

      (e) Termination for Breach of
Standards for Services.  If Buyer reasonably believes a Seller
Service Provider has materially failed to meet the standards for the provision
of Services as set forth in this Agreement, then Buyer shall give ten
(10) Business Days notice in writing to such Seller Service Provider
specifying the failure to meet the standards for the provision of
Services.  If the deficient Service has not been corrected after ten
(10) Business Days, then Buyer shall have the right to terminate, in good
faith, any Services that are performed below the standards for the provision of
Services as required hereunder.  No Unwind Costs will be payable with
respect to any deficient Service terminated by Buyer under this Section
4(e).

       

      (f) Service Termination.
For the avoidance of doubt and except as otherwise expressly agreed to by the
Parties in this Agreement, as of the effective date of the occurrence of any
Service Termination, Buyer shall pay to Seller Service Providers the applicable
Unwind Costs incurred by, or deemed to be incurred by, such Seller Service
Provider in respect of such Service Termination as well as well as any other
amounts due under this Agreement, including Reimbursable Costs with respect to
the applicable terminated Service, with any accrued interest at the Interest
Rate.

       

       

      
        
          
          

        

        
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      (g) Effect of
Termination.  Upon termination of the provision of Services
under this Agreement, Seller Service Providers shall transfer to Buyer all
materials and supplies procured in connection with the provision of such
Services, the cost of which has been included in Reimbursable Costs already paid
by Buyer for such Services.

       

      (h) Access.  Buyer
shall grant Seller Service Providers and their respective representatives access
to the facilities of Buyer or its subsidiaries, as the case may be, for a period
of thirty (30) days after the expiration or termination of this
Agreement so that each Seller Service Provider may demobilize its work force,
including the removal of its personal property that was brought to such
facilities by the Seller Service Provider to provide Services.

       

      (i) Survival.  The
Parties’ obligations, other than the obligation to provide Services, shall
survive the expiration, nonrenewal or termination of this Agreement and the
indemnification obligations shall survive as provided in under
Section 10.

       

      SECTION
5. 
Buyer Employment Obligations.

       

      (a) Within
ten (10) days following the date of this Agreement, Seller Service Providers and
Buyer shall work together in good faith to designate a management transition
team (the “Management
Transition Team”) comprised of (i) a “Seller Service Provider
Group” that will be headed by the Chief Financial Officer of Seller (the
“Seller
Chairman”) and will include certain personnel of Seller Service Providers
with relevant expertise and knowledge regarding the scope of, and qualifications
necessary to perform, the Central or Shared Function services currently provided
to the Business which Buyer will provide itself following Closing or which Buyer
has designated on Schedule 1 that
it will receive as Services under this Agreement and (ii) a “Buyer Group” that
will be headed by the Chief Executive Officer of Buyer (the “Buyer Chairman”) and
will include certain personnel of Buyer with operational experience in the gas
business.

       

      (b) During
the sixty (60) day period following the date of this Agreement, the Management
Transition Team shall work together in good faith to update Schedule 1 (i) to
identify by name 275 Seller Service Provider employees who will provide for
effective Central or Shared Functions services to the Business who are at such
time engaged in providing the Central or Shared Functions services to the
Business specified on Schedule 1 and (ii)
to include for each such identified employee, the estimated severance costs
attributable to such employee.  Subject to the provisions of Section
5(c), Buyer, at its sole discretion, will provide Qualifying Offers of
employment to each of the identified 275 Seller Service Provider employees
identified on Schedule
1 either at Closing or upon the occurrence of a Service Termination, as
applicable.  In connection with the update of Schedule 1, Seller
Service Provider Group will provide Buyer Group with employment history, salary
history and estimated severance costs for each such employee.  Schedule 1 as updated
in accordance with this Section 5(c) shall include each member of the Getz
Team.  The 275 Seller Service Provider employees so designated by the
Management Transition Team on updated Schedule 1 shall be
referred to herein as the “Designated
Employees.”  The Parties agree that in connection with any
meeting of the Management Transition Team, whether in person, via conference
call or otherwise, prior written notification of such meeting and the subject
matter relating thereto shall be provided to all members of the Management
Transition Team no later than (2) Business Days prior to the occurrence of such
meeting.  Each of the Seller Chairman and the Buyer Chairman and/or
their respective designees shall have the right to attend each Management
Transition Team meeting.

       

       

      
        
          
          

        

        
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      (c) Buyer
shall make written Qualifying Offers of employment to each Designated Employee
in accordance with this Section 5(c).

       

      (i) Subject
to the last two sentences of this Section 5(c)(i), thirty (30) days prior to the
Closing Date, Buyer shall make written Qualifying Offers of employment to those
Designated Employees (“Closing Date Designated
Employees”) to whom Buyer has indicated on Schedule 1 that it
will offer employment at the Closing; provided, that Buyer
shall not be required to make an offer of employment to any Designated Employee
unless such Designated Employee is continuing to perform the applicable function
(including the applicable Service) specified for such Designated Employee on
Schedule 1 as
of the Closing Date; provided, further, that Buyer
may also condition an offer of employment to a Designated Employee on such
Designated Employee continuing to perform the function (including the applicable
Service) specified for such Designated Employee on Schedule 1 as of the
Closing Date.  Buyer shall be responsible for the severance costs of
any Closing Date Designated Employee to whom Buyer does not make an offer of
employment pursuant to this Section 5(c)(i); provided, however, that Buyer
shall not be responsible for the severance costs of any Albuquerque Meter Reader
to whom Buyer does not make an offer of employment pursuant to this Section
5(c)(i) if as of the date such offer of employment otherwise should have become
effective, Buyer and Seller Service Providers have entered into arrangements for
the provision by Seller Service Providers to Buyer of meter-reading services for
a term ending no earlier than the second anniversary of the Closing
Date.  To the extent Buyer does not make an offer of employment
pursuant to this Section 5(c)(i), Buyer shall (subject to the proviso in the
preceding sentence) pay to the applicable Seller Service Provider on the Closing
Date the amount of actual severance costs attributable to those Closing Date
Designated Employees who are not offered employment pursuant to this Section
5(c)(i).

       

      (ii) Subject
to the last two sentences of this Section 5(c)(ii), at least thirty (30) days
prior to the occurrence of a Service Termination (or upon the date of the
occurrence of a Service Termination under Sections 4(d) or (e)), Buyer shall
make written Qualifying Offers of employment as of the effective date (“Service Termination
Date”) of such Service Termination to those Designated Employees (“Service Termination Date
Designated Employees”) that Buyer has indicated on Schedule 1 that it
will offer employment to as of a particular Service Termination Date; provided, that Buyer
shall not be required to make an offer of employment to any Designated Employee
unless such Designated Employee is continuing to perform the function (including
the applicable Service) specified for such Designated Employee on Schedule 1 as of such

       

       

       

      
        
          
          

        

        
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      Service
Termination Date; provided, further, that Buyer
may also condition an offer of employment to a Designated Employee on such
Designated Employee continuing to perform the function (including the applicable
Service) specified for such Designated Employee on Schedule 1 as of such
Service Termination Date.  Buyer shall be responsible for the
severance costs of any Service Termination Date Designated Employee to whom
Buyer does not make an offer of employment pursuant to this Section 5(c)(ii);
provided, however, that Buyer
shall not be responsible for the severance costs of any Albuquerque Meter Reader
to whom Buyer does not make an offer of employment pursuant to this Section
5(c)(ii) if as of the date such offer of employment otherwise should have become
effective, Buyer and Seller Service Providers have entered into arrangements for
the provision by Seller Service Providers to Buyer of meter-reading services for
a term ending no earlier than the second anniversary of the Closing
Date.  To the extent Buyer does not make an offer of employment
pursuant to this Section 5(c)(ii), Buyer shall (subject to the proviso in the
preceding sentence) pay to the applicable Seller Service Provider on the
applicable Service Termination Date the amount of actual severance costs
attributable to those Service Termination Date Designated Employees who are not
offered employment pursuant to this Section 5(c)(ii).

       

      (iii) If a
Designated Employee ceases employment with a Seller Service Provider (a “Departed Designated
Employee”) after the time of identification as a Designated Employee on
Schedule 1 but
prior to the effective date of Buyer’s Qualifying Offer of employment to such
Designated Employee (either prior to Closing or a Service Termination Date as
contemplated by Section 5(c)(i) or Section 5(c)(ii), respectively), Seller
Service Providers may propose to Buyer another employee of a Seller Service
Provider as a replacement employee for such Departed Designated
Employee.  Any such proposal shall include such employee’s name,
title, function, qualifications, employment history, salary history and
estimated severance cost.  Buyer may by exercise of its reasonable
discretion within thirty (30) days of its receipt of such proposal and the
applicable employment records of such proposed replacement employee either
accept or reject such proposed replacement employee.  Upon Buyer’s
acceptance of a replacement employee under this Section 5(c)(iii), such
replacement employee will become a Designated Employee and Buyer shall make a
written Qualifying Offer of employment to that Designated Employee, effective as
of the Closing Date in accordance with Section 5(c)(i) or the relevant Service
Termination Date in accordance with Section 5(c)(ii) as
applicable.  If, however, in the reasonable exercise of its
discretion, Buyer rejects the proposed replacement employee, Buyer shall not be
obligated to make a written Qualifying Offer of employment to such proposed
replacement employee nor shall Buyer have any responsibility for severance costs
for such employee.  Buyer’s rejection of a proposed replacement
employee does not limit Seller Service Provider’s right to use such employee to
provide any Central or Shared Functions service or Service, as
applicable.

       

      (iv) Seller
Service Providers may hire a new employee (not otherwise an employee of a Seller
Service Provider or any of its Affiliates) as a replacement employee for a
Departed Designated Employee to provide the particular Central or Shared
Functions service or Service, as applicable, which is no longer being provided
by the Departed Designed Employee.  In such case, Buyer may (but is
not required to) make a written Qualified Offer of employment to the replacement
employee effective as of the Closing Date in accordance with Section 5(c)(i) or
the relevant Service Termination Date in accordance with Section 5(c)(ii), as
applicable.  If Buyer does not make a Qualifying Offer of employment
to any such replacement employee pursuant to this Section 5(c)(iv), Buyer and
Seller Service Providers shall share equally the severance costs actually
incurred by Seller Service Providers in connection with termination of
employment of such replacement employee as of the Closing Date or the relevant
Service Termination Date, as applicable.

       

       

      
        
          
          

        

        
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      (v) For
avoidance of doubt, nothing in this Section 5(c) shall be deemed to require
Seller Service Providers to replace Departed Designated Employees with a
replacement employee that is acceptable to Buyer or otherwise and to the extent
any Departed Designated Employees are not replaced in accordance with
Section 5(c)(iii) or Section 5(c)(iv) above with an employee to whom Buyer
has an obligation to make a Qualified Offer of employment or otherwise, Buyer’s
obligation under this Section 5(c) to make Qualifying Offers to 275 Designated
Employees shall be reduced accordingly by the number of Departed Designated
Employees who are not replaced.

       

      (d) Buyer
shall provide to the applicable Seller Service Provider copies of all written
Qualifying Offers of employment made to Designated Employees under this Section
5 within five (5) days of providing such offers to the Designated
Employees.  Buyer shall notify the applicable Seller Service Provider
in writing of the Designated Employees who have accepted Qualifying Offers of
employment with Buyer within five (5) days following the acceptance of such
offers.  Any Designated Employees who accept a Qualified Offer of
employment by Buyer under this Section 5 shall be considered to be a Transferred
Employee.

       

      SECTION
6. 
Billing and Payment of Costs of Services; Invoices for Services.

       

      (a) Payment.  Subject
to the following sentence, on or before the fifteenth (15th) day of each month
commencing with the first such day during the Service Period, the Seller Service
Providers shall provide to Buyer one or more written invoices setting out the
total amount due for Reimbursable Costs provided by such Seller Service Provider
for the prior month, showing for each Service category the Reimbursable Costs
for the period covered by such invoice, together with such supporting
documentation for all such costs as shall be reasonably requested by
Buyer.  Items properly invoiced and not disputed in good faith by
Buyer are due and payable within fifteen (15) days following the date
of such invoice.  No costs or fees shall be charged for Services
except as provided in the definition of Reimbursable Costs and Unwind Costs;
provided, that
amounts due and properly payable which remain unpaid after their due date shall
bear and be paid together with the interest at the Interest Rate. All applicable
Unwind Costs shall be due and payable by Buyer to Seller Service Providers on
the effective date of a Service Termination.  Reimbursable Costs
incurred prior to the commencement of the Service Period shall be invoiced and
paid on the Closing Date.

       

      (b) Taxes.  In
the event a Seller Service Provider is required by a Governmental Entity to
remit or pay charges and taxes that are Buyer’s responsibility hereunder, Buyer
shall reimburse such Seller Service Provider for such charges and
taxes.  If Buyer is required by a Governmental Entity to remit or pay
charges and taxes that are a Seller Service Provider’s responsibility hereunder,
Buyer may deduct the amount of any such charges and taxes from the sums due such
Seller Service Provider under this Agreement.

       

       

      
        
          
          

        

        
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      (c) Audit
Rights.  Buyer shall have the right, at any time within
six (6) months
after the date of Buyer’s receipt of any Seller Service Provider invoice to
audit those books and records of such Seller Service Provider with respect to
the Services reflected on such invoice, which books and records relate to the
Services covered by such invoice, to verify the Reimbursable Costs and, as
applicable, Unwind Costs reflected on such invoice.  Any such audit
shall be conducted during normal business hours by Buyer or its designated
auditor after ten (10) days prior written notice to such Seller Service
Provider, at Buyer’s sole cost and expense, in the offices of such Seller
Service Provider or at such other location as may be mutually
agreed.  Seller Service Providers shall cooperate with and provide
reasonable assistance to Buyer and/or its auditor in connection with the
performance of any such audit.  Buyer shall assert any claim for
refund of costs of Services under the audited invoice within sixty (60) days
after the completion of the audit.  Seller Service Providers shall
have ninety (90) days from receipt of Buyer’s claim for refund to
respond.  If such Seller Service Provider does not dispute Buyer’s
refund claim, such Seller Service Provider shall offset the overpayment against
future invoices; or, if there are no additional invoices to be paid, such Seller
Service Provider shall pay such refund within such 90-day period; such offset or
refund shall be credited or paid together with interest at the Interest Rate
from the date of  overpayment to such Seller Service Provider until
the date of such offset or refund of such overpayment is credited or
paid.  If such Seller Service Provider disputes the claim and refuses
to pay any refund claim by Buyer resulting from the exercise of Buyer’s audit
rights, each of the Parties shall be entitled to seek any remedy with respect to
such matter available at law or in equity.

       

      SECTION
7. 
Administration of Agreement.

       

      Upon
commencement of the Service Period, Seller Service Providers and Buyer shall
each designate in writing person(s) to act as contract administration
officers (“Contract Administration
Officers”), who shall perform the following functions under this
Agreement for their respective principals: (a) reporting to senior
management of their respective principals with respect to matters relating to
the administration of this Agreement, the provision of Services hereunder and
any outstanding invoice disputes; (b) monitoring the costs of Services; and
(c) serving as sole recipients of notices between the
Parties.  The initial Contract Administration Officers for each Party
shall be their respective Chief Financial Officers.  Each Party may
replace its Contract Administration Officers from time to time upon written
notice to the other Party.

       

      SECTION
8. 
Relationships Among the Parties.

       

      Each
Seller Service Provider shall be an independent contractor with respect to the
Services it performs hereunder.  Nothing in this Agreement shall cause
the relationship between Seller Service Providers on the one hand, and Buyer on
the other hand, to be deemed to constitute an agency, partnership or joint
venture and neither Party has the right to exercise any control over the
employees of the other Party.  The terms of this Agreement are not
intended to constitute a joint employer for any purpose between any of the
Parties and their Affiliates.  No Seller Service Provider shall have
or hold itself out as having, any authority to enter into any contract or create
any obligation or liability on behalf of, in the name of, or binding upon Buyer
or Buyer’s Affiliates except as provided in this Agreement.

       

       

      
        
          
          

        

        
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      SECTION
9. 
Other Agreements.

       

      Seller Service Providers’
Regulatory Covenant.  During the Service Period, Seller Service
Providers will cooperate with Buyer and any Governmental Entity that regulates
Buyer, solely at Buyer’s cost and expense, to satisfy any regulatory
requirements applicable to entities that provide services to Buyer or the
Governmental Entity.

       

      SECTION
10. 
Indemnification; Release; Limit on Liability.

       

      (a) Services.

       

      (i) Indemnification by
Seller Service
Providers.  Seller and PNMRSC shall severally and not jointly
indemnify and hold harmless Buyer, and each of its officers, directors,
employees, agents, and Affiliates (and the officers, directors, employees
and agents of such Affiliates) (each, a “Buyer Indemnified
Party”) if any such Buyer Indemnified Party shall at any time or from
time to time suffer any damage, judgment, fine, penalty, demand, settlement,
liability, loss, cost, expense (including reasonable attorneys’,
consultants’ and experts’ fees), claim or cause of action (each, a “Loss”) arising out
of, relating to or resulting from the performance of Services under this
Agreement, but only to the extent such Loss results from the gross negligence or
willful misconduct of Seller Service Providers, or any personnel or
subcontractors utilized by Seller Service Providers, in performing the
Services.

       

      (ii) Indemnification by
Buyer.  Buyer shall indemnify and hold harmless Seller Service
Providers, and each of their officers, directors, employees, agents, and
Affiliates (and the officers, directors, employees and agents of such
Affiliates) (each, a “Seller Service Providers
Indemnified Party” and, together with each Buyer Indemnified Party, an
“Indemnified
Party”) if any such Seller Service Providers Indemnified Party shall at
any time or from time to time suffer any Loss arising out of, relating to or
resulting from the performance of Services under this Agreement, but only to the
extent any such losses result from gross negligence or willful misconduct of
Buyer.

       

      (iii) Indemnification
Process.

       

      A. Subject
to the terms of this Agreement and upon a receipt of notice of the assertion of
a claim or of the commencement of any suit, action or proceeding that is a third
party claim against an Indemnified Party the Seller Service Providers, pursuant
to (i) above, or Buyer, pursuant to (ii) above (in each case the
“Indemnitor”),
on behalf of such Indemnified Party, will promptly notify Buyer or Seller
Service Provider, as the case may be, in writing of any actual or potential Loss
under this Section 10.  Such written notice is herein referred to as a
“Notice of
Claim”.  A Notice of Claim will specify, in reasonable detail,
the facts known to the Indemnified Party regarding the Indemnified Party’s claim
against the Indemnitor.  Subject to the terms of this Agreement, the
failure to provide (or timely provide) a Notice of Claim will not affect an
Indemnified Party’s rights to indemnification; provided, however, that
Indemnitor is not obligated to indemnify the Indemnified Party for the increased
amount of any Loss which would otherwise have been payable to the extent that
the increase resulted from the failure to deliver timely a Notice of
Claim.

       

       

      
        
          
          

        

        
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      B. Indemnitor
will defend, in good faith and at its expense, any claim or demand set forth in
a Notice of Claim relating to a third party claim, and the affected Indemnified
Party, at its expense, may participate in the defense.  An Indemnified
Party may not settle or compromise any third party claim so long as Indemnitor
is defending it in good faith.  If Indemnitor elects not to contest a
third party claim, the Indemnified Party may undertake its defense, and
Indemnitor will be bound by the results obtained by such Indemnified
Party.  Indemnitor may at any time request that the affected
Indemnified Party agree to the abandonment of the contest of the third party
claim or to the payment or compromise by Indemnitor of the asserted claim or
demand.  If such Indemnified Party does not object in writing within
fifteen (15) days of Indemnitor’s request, Indemnitor may proceed with
the action stated in the request.  If, within that
fifteen (15) day period, such Indemnified Party notifies Indemnitor in
writing that it has determined that the contest should be continued, Indemnitor
will be liable under this Section 10 only for an amount up to the amount which
Client had proposed be accepted in payment or compromise.  This
Subsection (B) is subject to the rights of any insurance carrier of an
Indemnified Party that is defending the third party claim.

       

      C. Indemnitor
will (a) consult with the affected Indemnified Party throughout the
pendency of the third party claim regarding the investigation, defense,
settlement, trial, appeal or other resolution of the third party claim and
(b) afford such Indemnified Party the opportunity to be associated in the
defense of the third party claim.  The Parties will cooperate in the
defense of the third party claim.  The Indemnified Party will make
available to Indemnitor or its representatives all records and other materials
reasonably required by them for use in contesting any third party
claim (subject to obtaining an agreement to maintain the confidentiality of
confidential or proprietary materials in a form reasonably acceptable to both
Indemnitor and such Indemnified Party).  If requested by Indemnitor,
the affected Indemnified Party will cooperate with Indemnitor and its counsel in
contesting any third party claim that Indemnitor elects to contest or, if
appropriate, in making any counterclaim against the person asserting the claim
or demand, or any cross-complaint against any person.  Indemnitor will
reimburse such Indemnified Party for any expenses incurred by the Indemnified
Party in cooperating with or acting at the request of Indemnitor.  Any
such expenses incurred by such Indemnified Party during the Service Period shall
be a Reimbursable Cost or a credit against Reimbursable Costs, as the case may
be.

       

      (b) Survival.  The
provisions of this Section 10 shall survive the termination of this Agreement
for a period of eighteen (18) months except that a Party shall be entitled to
indemnification under this Section 10 beyond such eighteen (18) month period if
a Notice of Claim shall have been delivered to the applicable Indemnitor prior
to the expiration of such eighteen (18) month period.

       

       

      
        
          
          

        

        
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      (c) Limit of
Liability.  Neither Seller Service Providers, on the one hand,
nor Buyer, on the other hand, shall be liable to the other Party, and each
hereby releases the other Party and their Affiliates, and each officer,
director, employee and agent of the other Party and/or any of its Affiliates
from, any Loss arising from any act, omission, or other fault of the other Party
in connection with the Services, except to the extent any such Loss results from
gross negligence or willful misconduct.  NOTWITHSTANDING ANYTHING IN
THIS AGREEMENT TO THE CONTRARY, THE AGGREGATE LIABILITY OF A PARTY (THE “LIABLE PARTY”) TO ANY
OTHER PARTY UNDER THIS AGREEMENT SHALL NOT EXCEED THE AGGREGATE AMOUNT OF
PAYMENTS RECEIVED HEREUNDER BY THE LIABLE PARTY.  IN NO EVENT SHALL
ANY PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE LOSS, DAMAGES OR EXPENSES (INCLUDING LOST PROFITS OR SAVINGS) (“CONSEQUENTIAL
DAMAGES”) ARISING FROM THIS AGREEMENT OR THE PERFORMANCE OR
NON-PERFORMANCE OF SERVICES HEREUNDER.

       

      (d) Information;
Recommendations.  Any technical information furnished or the
recommendations submitted by a Seller Service Provider do not imply or warrant
any responsibility on the part of the Seller Service Provider or any director,
officer, employee, shareholders, contractors and agent thereof.  No
Seller Service Provider nor any of its directors, officers, employees,
shareholders, contractors or agents assume liability with respect to the use of,
or for damages resulting from the use of, any information, method or process
contained in any report issued under this Agreement.

       

      SECTION
11. 
Relationship between Seller Service Providers.

       

      Buyer
acknowledges and agrees that (a) Seller does not guarantee PNMRSC’s payment
or performance of its obligations hereunder, (b) Seller and PNMRSC are
separate entities and the respective obligations of Seller and PNMRSC are
several and neither joint nor joint and several, and (c) Seller shall have
no liability to Buyer in connection with PNMRSC’s performance of its obligations
hereunder.  Buyer shall not assert or seek to enforce any liens,
claims or security interests against Seller that might arise from PNMRSC’s
performance of Services hereunder.  In the event of a breach by Seller
or PNMRSC, any exercise of rights and remedies by Buyer shall be asserted solely
against the breaching entity; the non-breaching entity’s rights and obligations
shall remain unaffected by such breach or exercise of rights or
remedies.

       

      SECTION
12. 
Headings.

       

      The
headings in this Agreement are for reference only, and shall not affect the
interpretation of this Agreement.

       

      SECTION
13. 
Required Insurance.

       

      (a) Coverage.  Until
expiration of the Service Period, Seller Service Providers and Buyer shall
maintain a level of insurance coverage reasonably satisfactory to Buyer with
financially sound and reputable insurance companies, or under a Seller Service
Provider’s self-insurance programs.

       

       

      
        
          
          

        

        
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      (b) Certificates.  Upon
request of Buyer, certificates of insurance evidencing the above-required
insurance shall be provided to Buyer.

       

      SECTION
14. 
Force Majeure.

       

      If by
reason of a Force Majeure Event either Party is rendered unable, in whole or in
part, to perform its obligations under this Agreement, other than the obligation
to make payments of money then due, such Party shall be excused from such
performance to the extent it is prevented by, and during the continuance of,
such Force Majeure Event.  The Party whose performance is affected by
a Force Majeure Event shall (a) give the other Party notice of the occurrence of
such Force Majeure Event as soon as practicable and (b) use all commercially
reasonable efforts to remedy the cause(s) and effect(s) of such Force Majeure
Event with all reasonable dispatch; provided, however, that the affected Party
shall not be obligated to undertake unreasonable costs or burdens in order to
overcome the effects of the Force Majeure Event and reinstate full performance
of its obligations under this Agreement.

       

      SECTION
15. 
Notices.

       

      All
notices and other communications hereunder will be in writing and will be deemed
given if delivered personally or by facsimile transmission, or mailed by
overnight courier or certified mail (return receipt requested), postage
prepaid, to the Party being notified at such Party’s address indicated
below (or at such other address for a Party as is specified by like notice;
provided that notices of a change of address will be effective only upon receipt
thereof):

       

      (a) If to
Seller Service Providers, to:

       

      Public
Service Company of New Mexico

      Attn:
General Counsel

      414
Silver Street, SW

      Albuquerque,
New Mexico 87102

      Fax:
(505) 241-2368

       

      (b) if to
Buyer, to:

       

      New
Mexico Gas Company, Inc.

      Attn:  
J. Russell Triedman

      630 Fifth
Avenue

      30th
Floor

      New York,
New York 10111

      Fax:
(212) 757-5313

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      SECTION
16. 
Successors and Assigns.

       

      This
Agreement and all of the provisions hereof will be binding upon and inure to the
benefit of the Parties and their respective successors and permitted assigns,
but neither this Agreement nor any of the rights, interests, or obligations
hereunder may be assigned by either Party, without the prior written consent of
the other Party, nor is this Agreement intended to confer upon any other Person
except the Parties any rights or remedies hereunder.

       

      SECTION
17. 
Signatures; Counterparts.

       

      This
Agreement, and any certificates and instruments delivered under or in accordance
herewith, may be executed in multiple counterparts (each of which will be
deemed an original, but all of which together will constitute one and the same
instrument), and may be delivered by facsimile transmission, with originals to
follow by overnight courier or certified mail (return receipt
requested).

       

      SECTION
18. 
Amendments.

       

      This
Agreement may be amended, modified or supplemented only by a written instrument
executed by the Parties hereto.

       

      SECTION
19. 
Dispute Resolution.

       

      Any
claim, controversy or dispute between the Seller Service Providers, on the one
hand, and Buyer on the other hand, shall be resolved in accordance with the
following procedures:

       

      (a) No Party
shall challenge the validity, existence or enforceability of this
Agreement.  All other disputes under this Agreement shall be resolved
in accordance with this Section 19.

       

      (b) A Party
that asserts the existence of a dispute shall send notice of the dispute to the
other Party.  The Parties shall in good faith attempt to resolve the
dispute.  In pursuit of an amicable resolution to the dispute, each
Seller Service Provider shall continue to perform the Services, unless it or
Buyer invokes the termination provisions of this Agreement.

       

      (c) If the
Parties cannot informally resolve the dispute within ten (10) days
after the date on which the notice of the dispute was sent, each Party shall on
that date nominate a senior executive who is not directly involved in the
dispute to meet to attempt to resolve the dispute.

       

      (d) If the
senior executives cannot agree on a settlement, either Party may request
arbitration by giving the other involved Party written notice, which notice
shall describe, in reasonable detail, the nature of the dispute, controversy or
claim.  The arbitration shall be governed by the rules of the American
Arbitration Association (“AAA”) and held in
Albuquerque, New Mexico or other mutually agreed upon location.

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      (e) If both
Parties agree upon an arbitrator within thirty (30) days after a request for
arbitration is made hereunder, that arbitrator shall be selected to hear the
dispute in accordance with AAA rules.  If the Parties are not able to
agree upon an arbitrator within such thirty (30) day period, then that Party who
requested arbitration may request that the AAA select an arbitrator who has
business experience in the energy industry similar to the Business and the
selected arbitrator shall hear the dispute in accordance with AAA
rules.

       

      (f) Each of
the Parties shall bear its own fees, costs and expenses of the arbitration and
its own legal expenses, attorneys’ fees and costs of all experts and witnesses;
provided, however, that if the claim of either Party is upheld by the arbitrator
in all material respects, the arbitrator may apportion between the Parties as
the arbitrator may deem equitable the costs incurred by the prevailing
Party.  The fees and expenses of the arbitration procedures, including
the fees of the arbitrator, will be shared equally by the Parties.

       

      (g) Any award
rendered pursuant to an arbitration proceeding shall be final, conclusive,
non-appealable and binding upon the Parties, and any judgment thereon may be
entered and enforced in any court of competent jurisdiction.

       

      SECTION
20. 
Governing Law.

       

      This
Agreement is governed by and construed in accordance with the laws of the State
of New Mexico (regardless of the laws that might otherwise govern under
applicable principles of conflicts of law) as to all matters, including but not
limited to matters of validity, construction, effect, performance and
remedies.

       

      SECTION
21. 
Entire Agreement.

       

      This
Agreement and the Purchase Agreement and all Schedules attached thereto
constitute the entire agreement between the Parties hereto relating to the
subject matter hereof and supersede all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the
Parties, and there are no general or specific warranties, representations or
other agreements by or among the Parties in connection with the entering into of
this Agreement or the subject matter hereof except as specifically set forth or
contemplated herein or therein.

       

      SECTION
22. 
Negotiated Agreement.

       

      This
Agreement has been negotiated by the Parties and the fact that the initial and
final draft will have been prepared by either Party will not give rise to any
presumption for or against any Party to this Agreement or be used in any respect
or forum in the construction or interpretation of this Agreement or any of its
provisions.

       

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      SECTION
23. 
Waiver.

       

      Except as
otherwise provided in this Agreement, any failure of any Party to comply with
any obligation, covenant, agreement, or condition herein may be waived by the
Party entitled to the benefits thereof only by a written instrument signed by
the Party granting such waiver, but such waiver or failure to insist upon strict
compliance with such obligation, covenant, agreement, or condition will not
operate as a waiver of, or estoppel with respect to, any subsequent or other
failure.

       

      SECTION
24. 
Severability.

       

      Any term
or provision of this Agreement that is invalid or unenforceable in any situation
in any jurisdiction will not affect the validity or enforceability of the
remaining terms and provisions hereof or the validity or enforceability of the
offending term or provision in any other situation or in any other
jurisdiction.

       

      SECTION
25. 
No Third Party Beneficiaries

       

      Except as
set forth in Sections 10 and 16, nothing in this Agreement is intended or shall
be construed to give any person, other than the Parties hereto, their successors
and permitted assigns, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained
herein.  Notwithstanding the foregoing, no provision of this Agreement
creates any third party beneficiary rights in any employee or former employee of
Seller Service Providers or Buyer Service Provider (including any
beneficiary or dependent thereof) in respect of continued employment or resumed
employment, and no provision of this Agreement creates any rights in any such
Persons in respect of any benefits that may be provided, directly or indirectly,
under any employee benefit plan or arrangement.

       

      SECTION
26. 
Press Release.

       

      Except as
required by Applicable Law or Regulation or applicable stock exchange rules,
neither Party shall issue any press releases or any other public disclosure
relating to or arising out of the performance of this Agreement without the
prior written consent and approval of the content of such statement by the other
Party.  The disclosing Party shall notify the other Party of any such
requirement to disclose and shall promptly provide a copy of the relevant
disclosure to the other.

       

      
        
          
          

          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      

       

      SECTION
27. 
Further Assurance.

       

      Each
Party agrees at any time and from time to time during the Service Period, upon
the request of the other Party, to do, or to cause to be done, all such further
acts and assurances as may be required to carry out the terms and conditions of
this Agreement.

       

      

       

      [Remainder
of Page Intentionally Left Blank]

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      IN WITNESS WHEREOF, the
Parties have caused this Agreement to be executed and delivered by their duly
authorized officers as of the date first above written.

       

       

      PUBLIC
SERVICE COMPANY OF NEW MEXICO

       

      By:      /s/ Patricia K.
Vincent                                          

       

      Name:       Patricia K.
Vincent                                         

       

      Title:         Utilities
President                                             

       

      

       

      PNMR
SERVICES COMPANY

       

      By:       /s/ Charles N.
Eldred                                            

       

      Name:   Charles N.
Eldred                                               
 

       

      Title:     Executive Vice
President & Chief  Finacial Officer 

       

       

      

       

      NEW
MEXICO GAS COMPANY, INC.

       

      By:                                                                                     

       

      Name:                                                                               
 

       

      Title:                                                                                     

       

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

    

     

    
      
        SCHEDULE
1

        Services

         

         

        Services - Shared Services

        
          	 
      	 
      	 
      	
                   

                	
                	
                  Qualified
      

                
	 
      	 
      	 
      	
                  
                    Services
      provided

                  

                  to
      Buyer Under TSA?

                	
                   

                  Qualified
      Offer

                	
                  
                    Initial

                  

                  Term
      to Use

                	
                  Offer

                  Following

                
	
                  Service1

                	
                  DEPARTMENT

                	
                  FTE2

                	
                  Yes/No

                	
                  at
      Close

                	
                  Service

                	
                  Service
      Period

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Accounts
      Payable

                	
                  7028Accounts
      Payable

                	
                  2.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Accounts
      Payable Total

                	 
      	
                  2.00

                	 
      	
                  0

                	 
      	
                  2

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Communications
      Services

                	
                  7100Community
      Relations

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Communications
      Services Total

                	 
      	
                  1.00

                	 
      	
                  1

                	 
      	
                  0

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Environmental
      Services

                	
                  7045Environmental
      Services

                	
                  3.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Environmental
      Services Total

                	 
      	
                  3.00

                	 
      	
                  0

                	 
      	
                  2

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Financial
      Modeling and Budgeting

                	
                  7005Modeling
      and Forecasting

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Financial
      Modeling and Budgeting Total

                	
                  1.00

                	 
      	
                  0

                	 
      	
                  1

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Financial
      Risk Management

                	
                  7061Corporate
      Financial Risk Mgmt

                	
                  3.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Financial
      Risk Management

                	
                  7074Claims

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Financial
      Risk Management Total

                	 
      	
                  4.00

                	 
      	
                  1

                	 
      	
                  2

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Fixed
      Asset Accounting

                	
                  7076Construction,
      Plnt & Asst Acctg

                	
                  3.00

                	
                  Y

                	
                  0

                	 
      	
                  3

                
	
                  Fixed
      Asset Accounting Total

                	 
      	
                  3.00

                	 
      	
                  0

                	 
      	
                  3

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Gas
      Accounting

                	
                  7263Revenue
      & Gas Accounting

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Gas
      Accounting

                	
                  7273Division
      Accounting

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Gas
      Accounting Total

                	 
      	
                  2.00

                	 
      	
                  0

                	 
      	
                  2

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  General
      Ledger and Reporting

                	
                  7079Enterprise
      Reporting

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  General
      Ledger and Reporting

                	
                  7242Corporate
      Accounting

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  General
      Ledger and Reporting

                	
                  7245Close-G/L
      Administration

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  General
      Ledger and Reporting

                	
                  7249Consolidations

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  General
      Ledger and Reporting

                	
                  7251External
      Reporting

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  General
      Ledger and Reporting Total

                	 
      	
                  5.00

                	 
      	
                  0

                	 
      	
                  5

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Graphics

                	
                  7089Graphics
      & Office Svcs

                	
                  2.00

                	
                  Y

                	
                  0

                	
                  12
      months

                	
                  0

                
	
                  Graphics

                	
                  7089Graphics
      & Office Svcs

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  12
      months

                	
                  0

                
	
                  Graphics
      Total

                	 
      	
                  3.00

                	 
      	
                  0

                	 
      	
                  0

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  HR
      Comp and Benefits

                	
                  7555Dir
      Compensation and Benefits

                	
                  4.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  3

                
	
                  HR
      Comp and Benefits

                	
                  7556Business
      Systems

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  HR
      Comp and Benefits

                	
                  7557People
      Services

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  HR
      Comp and Benefits Total

                	 
      	
                  6.00

                	 
      	
                  0

                	 
      	
                  5

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  HR
      Staffing

                	
                  7554Metro
      Operations

                	
                  5.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  4

                
	
                  HR
      Staffing Total

                	 
      	
                  5.00

                	 
      	
                  0

                	 
      	
                  4

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Information
      Technology Services

                	
                  7124ITSupport
      Services

                	
                  7.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  7

                
	
                  Information
      Technology Services

                	
                  7125Data
      Center Services

                	
                  2.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Information
      Technology Services

                	
                  7126Enterprise
      Systems & Storage

                	
                  2.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Information
      Technology Services

                	
                  7128Data
      Services

                	
                  2.00

                	
                  Y

                	
                  0

                	
                  12
      months

                	
                  2

                
	
                  Information
      Technology Services

                	
                  7130Quality
      Compliance Management

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Information
      Technology Services

                	
                  7132IT
      Project Mgmt and Quality

                	
                  2.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Information
      Technology Services

                	
                  7133BTS
      Telecom

                	
                  3.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  3

                
	
                  Information
      Technology Services

                	
                  7137Window
      Systems

                	
                  3.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  3

                
	
                  Information
      Technology Services

                	
                  7139BTS
      Account Management

                	
                  3.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  3

                
	
                  Information
      Technology Services

                	
                  7140Customer
      Svc Applications

                	
                  12.00

                	
                  Y

                	
                  0

                	
                  12
      months

                	
                  12

                
	
                  Information
      Technology Services

                	
                  7188BTS
      Market Ops-Texas

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Information
      Technology Services

                	
                  7559Infrastructure
      Admin-Security

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Information
      Technology Services

                	
                  7560Corporate
      Systems

                	
                  7.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  7

                
	
                  Information
      Technology Services

                	
                  7128Data
      Services

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Information
      Technology Services

                	
                  Total

                	
                  47.00

                	 
      	
                  0

                	
                  3
      months

                	
                  47

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  1
      Services indicated in bold text are services that will be provided to
      Buyer under this Agreement and are defined as "Services" under Section
      3(a)(i).

                  2
      This column will be updated in accordance with Section 5(b) of the
      Agreement to identify the 275 Designated Employees to whom
      Buyer,  subject to Section 5(c) of the Agreement, will make
      Qualified Offers of employment as indicated
  herein.

                

        

         

         

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

         

          SCHEDULE
1

          Services

        

         

        Services - Shared Services

         

        
          	
                	 
      	 
      	
                   

                	
                	
                  Qualified
      

                
	 
      	 
      	 
      	
                  
                    Services
      provided

                  

                  to
      Buyer Under TSA?

                	
                   

                  Qualified
      Offer

                	
                  
                    Initial

                  

                  Term
      to Use

                	
                  Offer

                  Following

                
	
                  Service1

                	
                  DEPARTMENT

                	
                  FTE2

                	
                  Yes/No

                	
                  at
      Close

                	
                  Service

                	
                  Service
      Period

                

        

         

        
          	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Governmental
      Affairs

                	
                  7042Govermental
      Affairs

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Governmental
      Affairs Total

                	 
      	
                  1.00

                	 
      	
                  1

                	 
      	
                  0

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Legal

                	
                  7090VP
      Legal Support

                	
                  2.00

                	
                  N

                	
                  2

                	 
      	
                  0

                
	
                  Legal
      Total

                	 
      	
                  2.00

                	 
      	
                  2

                	 
      	
                  0

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Payroll

                	
                  7260Payroll

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Payroll
      Total

                	 
      	
                  1.00

                	 
      	
                  0

                	 
      	
                  1

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Procurement

                	
                  7048Capabilities
      Development

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Procurement

                	
                  7092Sourcing

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Procurement

                	
                  7304Enterprise
      Capability

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Procurement
      Total

                	 
      	
                  3.00

                	 
      	
                  3

                	 
      	
                  0

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Regulatory
      Services

                	
                  7184Pricing
      & Regulatory Services

                	
                  1.00

                	
                  N

                	
                  1

                	 
      	
                  0

                
	
                  Regulatory
      Services Total

                	 
      	
                  1.00

                	 
      	
                  1

                	 
      	
                  0

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Tax
      Services

                	
                  7922Tax
      Compliance

                	
                  3.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Tax
      Services Total

                	 
      	
                  3.00

                	 
      	
                  0

                	 
      	
                  2

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Treasury
      Services

                	
                  7066Treasury
      Services

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Treasury
      Services

                	
                  7068Trust
      and Corporate Investment

                	
                  1.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  1

                
	
                  Treasury
      Services

                	
                  7155Remittance
      Processing

                	
                  5.00

                	
                  Y

                	
                  0

                	
                  3
      months

                	
                  2

                
	
                  Treasury
      Services Total

                	 
      	
                  7.00

                	
                  Y

                	
                  0

                	 
      	
                  4

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Grand
      Total

                	 
      	
                  100.00

                	 
      	
                  9

                	 
      	
                  80

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

        

      

    

     

    
      
        	
                1
      Services indicated in bold text are services that will be provided to
      Buyer under this Agreement and are defined as "Services" under Section
      3(a)(i).

                2
      This column will be updated in accordance with Section 5(b) of the
      Agreement to identify the 275 Designated Employees to whom
      Buyer,  subject to Section 5(c) of the Agreement, will make
      Qualified Offers of employment as indicated
  herein.

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    
      SCHEDULE
1

      Services

       

      Services - Common Utility Services

    

    

    
      	 
      	 
      	 
      	
              Service
      Provided to

            	
               

            	
               

            	
               

            
	 
      	 
      	 
      	
              Borrower
      Under TSA?

            	
              
                Qualified

              

              Offers
      at

            	
              
                Initial

              

              Term
      to Use

            	
              
                Qualified
      Offers

              

              Following

            
	
              Service1

            	
              DEPARTMENT

            	
              FTE2

            	
              Yes/No

            	
              Close

            	
              Service

            	
              Service
      Period

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              ABQ
      metro Collections

            	
              6162Internal
      Collections

            	
              4

            	
              Y

            	
              0

            	
              12
      months

            	
              4

            
	
              ABQ
      metro Collections Total

            	 
      	
              4

            	 
      	
              0

            	 
      	
              4

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              ABQ
      metro Customer Call Center

            	
              6157Customer
      Care Ctr

            	
              64

            	
              Y

            	
              0

            	
              12
      months

            	
              64

            
	
              ABQ
      metro Customer Call Center Total

            	
              64

            	 
      	
              0

            	 
      	
              64

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              ABQ
      metro Customer Care

            	
              6160Customer
      Care Center

            	
              12

            	
              Y

            	
              0

            	
              12
      months

            	
              4

            
	
              ABQ
      metro Customer Care Total

            	 
      	
              12

            	 
      	
              0

            	 
      	
              4

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              ABQ
      metro Customer Service

            	
              6170Dir
      Prod Opts

            	 
      	
              Y

            	
              0

            	
              12
      months

            	
              0

            
	
              ABQ
      metro Customer Service

            	
              6171
      Quality Assurance

            	
              6

            	
              Y

            	
              0

            	
              12
      months

            	
              2

            
	
              ABQ
      metro Customer Service Total

            	
              6

            	 
      	
              0

            	 
      	
              2

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              ABQ
      metro Exception Processing

            	
              6159Exception
      Processing

            	
              14

            	
              Y

            	
              0

            	
              12
      months

            	
              14

            
	
              ABQ
      metro Exception Processing Total

            	
              14

            	 
      	
              0

            	 
      	
              14

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              ABQ
      metro Meter Reading

            	
              6158Meter
      Reading

            	
              28

            	
              Y

            	
              0

            	
              12
      months

            	
              28

            
	
              ABQ
      metro Meter Reading Total

            	 
      	
              28

            	 
      	
              0

            	 
      	
              28

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Belen
      Customer Service

            	
              6411Belen
      Customer Service

            	
              8

            	
              Y

            	
              0

            	
              12
      months

            	
              8

            
	
              Belen
      Customer Service Total

            	 
      	
              8

            	 
      	
              0

            	 
      	
              8

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Bernalillo
      Customer Service

            	
              6174Bern,
      Valencia, Alb Cust Serv

            	
              10

            	
              Y

            	
              0

            	
              12
      months

            	
              10

            
	
              Bernalillo
      Customer Service Total

            	
              10

            	 
      	
              0

            	 
      	
              10

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Field
      Collections

            	
              6156Field
      Collections

            	
              8

            	
              Y

            	
              0

            	
              12
      months

            	
              8

            
	
              Field
      Collections Total

            	 
      	
              8

            	 
      	
              0

            	 
      	
              8

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Market
      Services

            	
              6330Customer
      Contact

            	
              3

            	
              N

            	
              3

            	 
      	
              0

            
	
              Market
      Services

            	
              6360Business
      Analysis/Planning

            	
              1

            	
              N

            	
              1

            	 
      	
              0

            
	
              Market
      Services Total

            	 
      	
              4

            	 
      	
              4

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              North
      Central Customer Operations

            	
              1423North
      Central Customer Service

            	
              16

            	
              Y

            	
              0

            	
              12
      months

            	
              16

            
	
              North
      Central Customer Operations Total

            	
              16

            	 
      	
              0

            	 
      	
              16

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Operations
      Services

            	
              5465Service
      Techs and Dispatch

            	
              1

            	
              Y

            	
              0

            	
              6
      months

            	
              1

            
	
              Operations
      Services

            	
              5876Northern
      Gas-Elec Operations

            	
              1

            	
              Y

            	
              0

            	
              6
      months

            	
              1

            
	
              Operations
      Services

            	
              6008Technical
      Services PNM & TNMP

            	
              1

            	
              Y

            	
              0

            	
              6
      months

            	
              1

            
	
              Operations
      Services Total

            	 
      	
              3

            	 
      	
              0

            	 
      	
              3

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              SC
      NM Customer Service

            	
              6206SCNM
      Customer Service

            	
              9

            	
              Y

            	
              0

            	
              12
      months

            	
              9

            
	
              SC
      NM Customer Service Total

            	 
      	
              9

            	 
      	
              0

            	 
      	
              9

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              SW
      NM Customer Service

            	
              6207SWNM
      Customer Service

            	
              5

            	
              Y

            	
              0

            	
              12
      months

            	
              5

            
	
              SW
      NM Customer Service Total

            	 
      	
              5

            	 
      	
              0

            	 
      	
              5

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              W
      NM Customer Service

            	
              6208WNM
      Customer Service

            	
              7

            	
              Y

            	
              0

            	
              12
      months

            	
              7

            
	
              W
      NM Customer Service Total

            	 
      	
              7

            	 
      	
              0

            	 
      	
              7

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Grand
      Total

            	 
      	
              198

            	 
      	
              4

            	 
      	
              182

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              1
      Services indicated in bold text are services that will be provided to
      Buyer under this Agreement and are defined as "Services" under Section
      3(a)(i).

              2
      This column will be updated in accordance with Section 5(b) of the
      Agreement to identify the 275 Designated Employees to whom
      Buyer,  subject to Section 5(c) of the Agreement, will make
      Qualified Offers of employment as indicated
  herein.

            

    

     

     

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

         

    
      Schedule 2

       

      HISTORICAL REIMBURSABLE COSTS

      for the Period

      January 1, 2007 through August 31,
2007

    

     

    A. Shared
Services

     

    

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                Accounts
      Payable

              	
                7028
      Accounts Payable

              	
                2.00
      FTEs

              	 	$	37.68	 	 	 	 
	 
      	 
      	
                324Freight
      Postage and Courier

              	 	 	$	10.13	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	3,351.31	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	860.87	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	9.97	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	21.57	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	7,601.88	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	101.94	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	268.53	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	32.35	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	284.93	 
	
                Accounts
      Payable Total

              	 
      	 
      	 	$	37.68	 	 	$	12,543.48	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                Environmental
      Services

              	
                7045
      Environmental Services

              	
                3.00
      FTEs

              	 	$	64.22	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	290.60	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	2,229.14	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	1,826.17	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	117.95	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	30,657.42	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	994.58	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	159.45	 
	 
      	 
      	
                500Utility
      Payments

              	 	 	 	 	 	 	203.23	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	11.72	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	14,398.02	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1,929.07	 
	 
      	 
      	
                554Social
      Club Dues

              	 	 	 	 	 	 	16.17	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	460.53	 
	 
      	 
      	
                560Dues
      Fees Fines

              	 	 	 	 	 	 	17,291.51	 
	
                Environmental
      Services Total

              	 
      	 
      	 	$	64.22	 	 	$	70,585.57	 

      

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                Financial
      Modeling & Budgeting

              	
                7005
      Modeling & Forecasting

              	
                1.00
      FTE

              	 	$	71.75	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	142.54	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	409.18	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	11,438.99	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	248.16	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	1,948.71	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	3,476.20	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	308.55	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	7.33	 
	
                Financial
      Modeling & Budgeting Total

              	 
      	 
      	 	$	71.75	 	 	$	17,979.66	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                Financial
      Risk Management

              	
                7061
      Corporate Financial Risk Mgmt

              	
                3.00
      FTEs

              	 	$	69.81	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	227.83	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	2,241.27	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	422.59	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	33,799.40	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	3,570.06	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	496.67	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	13,464.53	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	27,353.64	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1,770.52	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	323.10	 
	
                Financial
      Risk Management Total

              	 
      	 
      	 	$	69.81	 	 	$	83,669.61	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                Fixed
      Asset Account

              	
                7076
      Construction, Plnt &Asst Acctg

              	
                3.00
      FTEs

              	 	$	47.85	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	2.42	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	46.54	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	171.49	 
	 
      	 
      	
                450Insurance
      Premiums

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	12.53	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	2,445.30	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	418.47	 
	
                Fixed
      Asset Accounting Total

              	 
      	 
      	 	$	47.85	 	 	$	3,096.77	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                Gas
      Accounting

              	
                7263
      Revenue & Gas Accounting

              	
                1.00
      FTE

              	 	$	47.17	 	 	 	 	 
	 
      	 
      	
                Employee
      Expense

              	 	 	 	 	 	 	328.62	 
	 
      	 
      	
                Reproduction

              	 	 	 	 	 	 	506.26	 
	 
      	 
      	 
      	 	 	 	 	 	$	834.88	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7273
      Division Accounting

              	
                1.00
      FTE

              	 	$	47.17	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	22.21	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	225.60	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	241.97	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	67.65	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,423.32	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	41.95	 
	 
      	 
      	 
      	 	 	 	 	 	$	2,022.70	 
	
                Gas
      Accounting Total

              	 
      	 
      	 	$	47.17	 	 	$	2,857.58	 

      

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                General
      Ledger & Reporting

              	
                7079
      Enterprise Reporting

              	
                1.00
      FTE

              	 	$	60.18	 	 	 	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	$	247.58	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	7,671.09	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	165.49	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1.62	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	121.18	 
	 
      	 
      	 
      	 	 	 	 	 	$	8,206.96	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7242
      Corporate Accounting

              	
                1.00
      FTE

              	 	$	60.18	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	140.88	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	467.54	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	139.61	 
	 
      	 
      	 
      	 	 	 	 	 	$	748.03	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7245
      Close-G/L Administration

              	
                1.00
      FTE

              	 	$	60.18	 	 	 	 	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	73.23	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	31.59	 
	 
      	 
      	 
      	 	 	 	 	 	$	104.82	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7249
      Consolidations

              	
                1.00
      FTE

              	 	$	60.18	 	 	 	 	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	$	437.60	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	291.56	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	7.04	 
	 
      	 
      	 
      	 	 	 	 	 	$	736.20	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7251
      External Reporting

              	
                1.00
      FTE

              	 	$	60.18	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	0.36	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	31.04	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,710.18	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	173.15	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	417.86	 
	 
      	 
      	 
      	 	 	 	 	 	$	2,332.59	 
	
                General
      Ledger & Reporting Total

              	 
      	 
      	 	$	60.18	 	 	$	12,128.60	 

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                Graphics

              	
                7089
      Graphics & Office Svcs

              	
                3.00
      FTEs

              	 	$	28.57	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	2,457.11	 
	 
      	 
      	
                324Freight
      Postage and Courier

              	 	 	 	7,414.36	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	5,852.94	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	133.22	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	30,740.69	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	4,882.85	 
	 
      	 
      	
                472Leases

              	 	 	 	 	 	 	11,868.40	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,490.61	 
	 
      	 
      	
                548Overtime
      Meals

              	 	 	 	 	 	 	112.70	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	29.84	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	588.07	 
	 
      	 
      	
                724Fuel
      - Gasoline

              	 	 	 	 	 	 	9.78	 
	
                Graphics
      Total

              	 
      	 
      	 	$	28.57	 	 	$	65,580.57	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                HR
      Comp & Benefits

              	
                7555
      Dir Compensation and Benefits

              	
                4.00
      FTEs

              	 	$	64.97	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	8.45	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	805.30	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	179.85	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	73.94	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	39,234.14	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	25,654.40	 
	 
      	 
      	
                450Insurance
      Premiums

              	 	 	 	 	 	 	(38,565.81	)
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	4,186.45	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1,499.49	 
	 
      	 
      	
                554Social
      Club Dues

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	2,850.92	 
	 
      	 
      	
                560Dues
      Fees Fines

              	 	 	 	 	 	 	71.37	 
	 
      	 
      	 
      	 	 	 	 	 	$	35,998.50	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7556
      Business Systems

              	
                1.00
      FTE

              	 	$	64.97	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	78.13	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	245.01	 
	 
      	 
      	
                450Insurance
      Premiums

              	 	 	 	 	 	 	397.91	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	2,031.38	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	282.04	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	89.72	 
	 
      	 
      	 
      	 	 	 	 	 	$	3,124.17	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7557
      People Services

              	
                1.00
      FTE

              	 	$	64.97	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	499.65	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	1,118.09	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	73.94	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	1,787.49	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	403.07	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	33.30	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	7.55	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	9,084.97	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	3,062.00	 
	 
      	 
      	
                554Social
      Club Dues

              	 	 	 	 	 	 	241.07	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	206.28	 
	 
      	 
      	 
      	 	 	 	 	 	$	16,517.42	 
	
                HR
      Comp & Benefits Total

              	 
      	 
      	 	$	64.97	 	 	$	55,640.09	 

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                HR
      Staffing

              	
                7554
      Metro Operations

              	
                5.00
      FTEs

              	 	$	57.47	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	2,197.58	 
	 
      	 
      	
                324Freight
      Postage and Courier

              	 	 	 	22.37	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	7,434.21	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	1,105.44	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	182.87	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	44,063.57	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	74,915.63	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	22.20	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	17,288.84	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1,930.24	 
	 
      	 
      	
                554Social
      Club Dues

              	 	 	 	 	 	 	9,661.61	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	1,917.16	 
	
                HR
      Staffing Total

              	 
      	 
      	 	$	57.47	 	 	$	160,741.72	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                Information
      Technology Services

              	
                7124
      IT Support Services

              	
                7.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	1,775.27	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	289.67	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	194.28	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	142.48	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	18,625.12	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	32,900.02	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	10.99	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	35,017.70	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	8,589.13	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1,841.43	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	312.31	 
	 
      	 
      	
                560Dues
      Fees Fines

              	 	 	 	 	 	 	41.38	 
	 
      	 
      	
                724Fuel
      - Gasoline

              	 	 	 	 	 	 	8.78	 
	 
      	 
      	 
      	 	 	 	 	 	$	99,748.56	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7125
      Data Center Services

              	
                2.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	0.00	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	1,508.61	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	0.65	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	2,628.24	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	9,645.33	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	17,374.23	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	70,735.73	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	10.75	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,860.31	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	459.44	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	0.06	 
	 
      	 
      	
                560Dues
      Fees Fines

              	 	 	 	 	 	 	246.13	 
	 
      	 
      	 
      	 	 	 	 	 	$	104,469.47	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7126
      Enterprise Systems & Storage

              	
                2.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	0.00	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	57.67	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	165.56	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	926.34	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	12,305.30	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	30,787.07	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	289,415.41	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	1,198.40	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	(13,282.79	)
	 
      	 
      	
                472Leases

              	 	 	 	 	 	 	124,310.09	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	42.08	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	3,960.61	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	354.15	 
	 
      	 
      	 
      	 	 	 	 	 	$	450,239.89	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	 
      	
                7128
      Data Services

              	
                3.00
      FTEs

              	 	$	60.14	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	92.86	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	85.42	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	(1,449.64	)
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	191,637.29	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	18,300.60	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	220,989.95	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	26.87	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,903.99	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	328.63	 
	 
      	 
      	
                610Expenses
      - General

              	 	 	 	 	 	 	16.69	 
	 
      	 
      	 
      	 	 	 	 	 	$	431,932.63	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7130
      Quality Compliance Management

              	
                1.00
      FTE

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	80.28	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	5,804.72	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	34,562.97	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	980.76	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	1,078.13	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,947.33	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	192.65	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	340.29	 
	 
      	 
      	 
      	 	 	 	 	 	$	44,987.14	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7132
      IT Project Mgmt and Quality

              	
                2.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	17.13	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	123.55	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	41.35	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	41.93	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	5,918.12	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	405.74	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	52,062.33	 
	 
      	 
      	
                472Leases

              	 	 	 	 	 	 	1,758.34	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	978.22	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	133.00	 
	 
      	 
      	
                554Social
      Club Dues

              	 	 	 	 	 	 	31.98	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	12.83	 
	 
      	 
      	 
      	 	 	 	 	 	$	61,524.51	 

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	 
      	
                7133
      BTS Telecom

              	
                3.00
      FTEs

              	 	$	60.14	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	6,437.63	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	45,807.58	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	25.09	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	3,398.56	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	43,137.45	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	13,569.40	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	18,810.81	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	1,218.29	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	15,422.14	 
	 
      	 
      	
                472Leases

              	 	 	 	 	 	 	65,186.59	 
	 
      	 
      	
                500Utility
      Payments

              	 	 	 	 	 	 	44.26	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	289,703.39	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	15,753.85	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	729.77	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	11.77	 
	 
      	 
      	
                560Dues
      Fees Fines

              	 	 	 	 	 	 	29.29	 
	 
      	 
      	 
      	 	 	 	 	 	$	519,285.86	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7137
      Window Systems

              	
                3.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	52.91	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	834.28	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	634.24	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	1,181.50	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	3,283.18	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	46,118.06	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	10,953.29	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	11,379.60	 
	 
      	 
      	
                472Leases

              	 	 	 	 	 	 	3.97	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	17.45	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	2,763.08	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	367.11	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	19.67	 
	 
      	 
      	 
      	 	 	 	 	 	$	77,608.34	 

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	 
      	
                7139
      BTS Account Management

              	
                3.00
      FTEs

              	 	$	60.14	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	8.83	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	650.11	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	11.40	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	424.62	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	486.35	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	1,227.93	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	80.61	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	3,387.33	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	628.85	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	295.48	 
	 
      	 
      	
                610Expenses
      - General

              	 	 	 	 	 	 	673.36	 
	 
      	 
      	
                724Fuel
      - Gasoline

              	 	 	 	 	 	 	4.71	 
	 
      	 
      	 
      	 	 	 	 	 	$	7,879.58	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7140
      Customer Svc Applications

              	
                12.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                200Fleet
      Vehicle Maint-Rental

              	 	 	 	 	 	$	1.36	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	204.58	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	348.04	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	(238.32	)
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	1,261.62	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	3,029.62	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	283,079.58	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	401.32	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	19,008.11	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	4,827.64	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	517.50	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	149.41	 
	 
      	 
      	 
      	 	 	 	 	 	$	312,590.47	 

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	 
      	
                7188
      BTS Market Ops-Texas

              	
                1.00
      FTE

              	 	$	60.14	 	 	 	 
	 
      	 
      	
                324Freight
      Postage and Courier

              	 	 	$	0.00	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	12.88	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	2,739.18	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	0.00	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	3,908.52	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	12.60	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	762.35	 
	 
      	 
      	
                500Utility
      Payments

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	2,340.40	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	420.76	 
	 
      	 
      	 
      	 	 	 	 	 	$	10,196.70	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7559
      Infrastructure Admin-Security

              	
                1.00
      FTE

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	435.44	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	0.00	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	(2,551.14	)
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	3,377.31	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	514.15	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	7,735.78	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	429.97	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	7.75	 
	 
      	 
      	 
      	 	 	 	 	 	$	9,949.27	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7560
      Corporate Systems

              	
                7.00
      FTEs

              	 	$	60.14	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	406.64	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	476.90	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	(416.84	)
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	2,847.51	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	3,536.28	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	20,151.45	 
	 
      	 
      	
                428Computer
      Software

              	 	 	 	 	 	 	105,024.60	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	1,435.13	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	38.84	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	9,466.16	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	1,144.29	 
	 
      	 
      	 
      	 	 	 	 	 	$	144,110.95	 
	
                Information
      Technology Services Total

              	 
      	 	$	60.14	 	 	$	2,274,523.35	 

      

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                Payroll

              	
                7260
      Payroll

              	
                1.00
      FTE

              	 	$	42.70	 	 	 	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	$	15.98	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	23.79	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	303.25	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	10.98	 
	
                Payroll
      Total

              	 
      	 
      	 	$	72.70	 	 	$	354.00	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                Tax
      Services

              	
                7922
      Tax Compliance

              	
                3.00
      FTEs

              	 	$	63.91	 	 	 	 	 
	 
      	 
      	
                324Freight
      Postage and Courier

              	 	 	$	161.66	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	 	1,042.91	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	1,196.75	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	25.56	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	271,678.60	 
	 
      	 
      	
                429Computer
      Hardware

              	 	 	 	 	 	 	8,984.76	 
	 
      	 
      	
                501Phones

              	 	 	 	 	 	 	20.17	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	6,850.39	 
	 
      	 
      	
                548Overtime
      Meals

              	 	 	 	 	 	 	17.21	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	664.92	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	9.95	 
	 
      	 
      	
                560Dues
      Fees Fines

              	 	 	 	 	 	 	71.71	 
	 
      	 
      	
                622Contributions
      and Donations

              	 	 	 	2,017.00	 
	
                Tax
      Services Total

              	 
      	 
      	 	$	63.91	 	 	$	292,741.58	 

      

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                Service

              	
                 

                Department

              	
                 

                Cost Type & Description

              	 	
                Hourly
      Labor

                Rate per FTE

              	 	 	
                Non-Labor

                Amounts 1

              	 
	
                Treasury
      Services

              	
                7066
      Treasury Services

              	
                1.00
      FTE

              	 	$	33.73	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	998.63	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	(1,672.01	)
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	5,236.73	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,610.61	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	390.37	 
	 
      	 
      	 
      	 	 	 	 	 	$	6,564.34	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7068
      Trust and Corporate Investment

              	
                1.00
      FTE

              	 	$	33.73	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	564.23	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	4.53	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	10,815.70	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	1,302.03	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	43.24	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	376.17	 
	 
      	 
      	 
      	 	 	 	 	 	$	13,105.89	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
                7155
      Remittance Processing

              	
                5.00
      FTEs

              	 	$	33.73	 	 	 	 	 
	 
      	 
      	
                331Supplies
      and Equipment

              	 	 	 	 	 	$	5,136.81	 
	 
      	 
      	
                350Material
      Issues-Major

              	 	 	 	 	 	 	8.20	 
	 
      	 
      	
                359Non-Stock
      Materials

              	 	 	 	 	 	 	691.85	 
	 
      	 
      	
                370Outside
      Services

              	 	 	 	 	 	 	1,026.35	 
	 
      	 
      	
                377Outside
      Services-Temp Labor

              	 	 	 	575.09	 
	 
      	 
      	
                406Computer
      Maintenance

              	 	 	 	 	 	 	16,350.71	 
	 
      	 
      	
                530Employee
      Expense

              	 	 	 	 	 	 	242.88	 
	 
      	 
      	
                550Meals

              	 	 	 	 	 	 	81.17	 
	 
      	 
      	
                555Repro
      and Printing - Internal

              	 	 	 	69.10	 
	 
      	 
      	
                610Expenses
      - General

              	 	 	 	 	 	 	94.78	 
	 
      	 
      	 
      	 	 	 	 	 	$	24,276.92	 
	
                Treasury
      Services Total

              	 
      	 
      	 	$	33.73	 	 	$	43,947.16	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
                1 Non-Labor
      Amounts include the aggregate amount of costs for each cost type for the
      period January 1, 2007 through August 31, 2007. Non-Labor Amounts
      also include costs associated with officer oversight of the particular
      service provided as well as system charges, including depreciation and
      amortization, with respect to those systems used to provide the particular
      service.

              	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

     

    Schedule 2

     

    HISTORICAL REIMBURSABLE COSTS

    for the Period

    January 1, 2007 through August 31, 2007

     

    B.  Common Services
 

    
      	
               

              Service

            	
               

              Department

            	
               

              Cost Type & Description

            	 	
              Hourly
      Labor

              Rate per FTE

            	 	 	
              Non-Labor

              Amounts 1

            	 
	
              ABQ
      Metro Collections

            	
              6162Internal
      Collections

            	
              4.00
      FTEs

            	 	$	32.78	 	 	 	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	$	193.37	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	29,005.33	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	2,117.05	 
	 
      	 
      	
              406Computer
      Maintenance

            	 	 	 	 	 	 	1,722.47	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	36.79	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	75.58	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	360.00	 
	
              ABQ
      Metro Collections Total

            	 
      	 
      	 	$	32.78	 	 	$	33,510.59	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              ABQ
      Metro Customer Call Center

            	
              6157Customer
      Call Ctr

            	
              64.00
      FTEs

            	 	$	30.08	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	293.00	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	4,799.25	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	424.23	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	211.31	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	15,091.90	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	11,768.30	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	1,783.60	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	29,658.33	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	4,599.00	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	1,534.64	 
	 
      	 
      	
              560Dues
      Fees Fines

            	 	 	 	 	 	 	173.63	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	(68,359.47	)
	
              ABQ
      Metro Customer Call Center Total

            	 
      	 	$	30.08	 	 	$	1,977.70	 

    

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Service

            	
               

              Department

            	
               

              Cost Type & Description

            	 	
              Hourly
      Labor

              Rate per FTE

            	 	 	
              Non-Labor

              Amounts 1

            	 
	 
      	 
      	 
      	 	 	 	 	 	 
	
              ABQ
      Metro Customer Care

            	
              6160Customer
      Care Center

            	
              12.00
      FTEs

            	 	$	31.76	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	4,773.48	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	2,468.43	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	372.34	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	43,428.78	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	732.59	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	16,184.98	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	1,806.78	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	1,527.42	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	385.44	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	1,371.53	 
	
              ABQ
      Metro Customer Care Total

            	 
      	 
      	 	$	31.76	 	 	$	73,051.78	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              ABQ
      Metro Customer Service

            	
              6170Dir
      Prod Opts

            	
              1.00
      FTEs

            	 	$	52.04	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	(145.07	)
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	658.61	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	2.80	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	1,928.53	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	14,573.92	 
	 
      	 
      	
              428Computer
      Software

            	 	 	 	 	 	 	1,088.34	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	330.98	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	370.23	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	19,109.10	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	315.84	 
	 
      	 
      	
              724Fuel
      - Gasoline

            	 	 	 	 	 	 	36.02	 
	 
      	 
      	 
      	 	 	 	 	 	$	38,269.29	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
              6171Quality
      Assurance

            	
              5.00
      FTEs

            	 	$	52.04	 	 	 	 	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	$	5,071.57	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	1,606.81	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	15.81	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	596.13	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	195.15	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	2,563.45	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	696.83	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	3,120.25	 
	 
      	 
      	
              560Dues
      Fees Fines

            	 	 	 	 	 	 	61.68	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	(1,789.13	)
	 
      	 
      	 
      	 	 	 	 	 	$	12,138.56	 
	
              ABQ
      Metro Customer Service

            	 
      	 
      	 	$	52.04	 	 	$	50,407.84	 

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Service

            	
               

              Department

            	
               

              Cost Type & Description

            	 	
              Hourly
      Labor

              Rate per FTE

            	 	 	
              Non-Labor

              Amounts 1

            	 
	 
      	 
      	 
      	 	 	 	 	 	 
	
              ABQ
      Metro Exception Processing

            	
              6159Exception
      Processing

            	
              14.00
      FTEs

            	 	$	32.43	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	409.12	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	1,406.98	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	77.26	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	36.49	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	1,894.13	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	884.39	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	324.79	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	209.56	 
	
              ABQ
      Metro Exception Processing Total

            	 
      	 	$	32.43	 	 	$	5,242.71	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              ABQ
      Metro Meter Reading

            	
              6158Meter
      Reading

            	
              28.00
      FTEs

            	 	$	27.89	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	81,801.46	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	2,815.99	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	393.68	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	3,729.91	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	68,794.23	 
	 
      	 
      	
              429Computer
      Hardware

            	 	 	 	 	 	 	2,772.62	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	43,968.38	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	200.80	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	14,437.06	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	4,706.81	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	204.08	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	406.80	 
	
              ABQ
      Metro Meter Reading Total

            	 
      	 
      	 	$	27.89	 	 	$	224,231.83	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              Belen
      Customer Service

            	
              6411Belen
      Customer Service

            	
              8.00
      FTEs

            	 	$	30.27	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	26,998.79	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	2,916.46	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	0.74	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	11,447.69	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	3,028.90	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	4,560.67	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	1,085.23	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	2,511.83	 
	 
      	 
      	
              548Overtime
      Meals

            	 	 	 	 	 	 	158.13	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	793.97	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	237.04	 
	 
      	 
      	
              560Dues
      Fees Fines

            	 	 	 	 	 	 	0.00	 
	
              Belen
      Customer Service Total

            	 
      	 
      	 	$	30.27	 	 	$	53,739.46	 

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Service

            	
               

              Department

            	
               

              Cost Type & Description

            	 	
              Hourly
      Labor

              Rate per FTE

            	 	 	
              Non-Labor

              Amounts 1

            	 
	 
      	 
      	 
      	 	 	 	 	 	 
	
              Bernalillo
      Customer Service

            	
              6174Bern,
      Valencia, Alb Cust Serv

            	
              10.00
      FTEs

            	 	$	30.56	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	37,165.08	 
	 
      	 
      	
              324Freight
      Postage and Courier

            	 	 	 	 	 	 	4.18	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	3,294.53	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	1,510.95	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	13,645.85	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	15,254.37	 
	 
      	 
      	
              429Computer
      Hardware

            	 	 	 	 	 	 	6,223.12	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	16,180.50	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	786.74	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	(8.24	)
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	3,969.87	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	713.57	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	133.41	 
	 
      	 
      	
              560Dues
      Fees Fines

            	 	 	 	 	 	 	21.48	 
	 
      	 
      	
              807Non
      Refundable Contribution

            	 	 	 	 	 	 	(27.06	)
	
              Bernalillo
      Customer Service Total

            	 
      	 
      	 	$	30.56	 	 	$	98,868.37	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              Field
      Collections

            	
              6156Field
      Collections

            	
              8.00
      FTEs

            	 	$	35.04	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	35,895.94	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	884.26	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	8,341.87	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	4,450.65	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	5,473.87	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	3,875.28	 
	 
      	 
      	
              429Computer
      Hardware

            	 	 	 	 	 	 	(4,196.22	)
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	3,171.62	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	432.68	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	5,304.56	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	832.68	 
	
              Field
      Collections Total

            	 
      	 
      	 	$	35.04	 	 	$	64,467.20	 

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Service

            	
               

              Department

            	
               

              Cost Type & Description

            	 	
              Hourly
      Labor

              Rate per FTE

            	 	 	
              Non-Labor

              Amounts 1

            	 
	 
      	 
      	 
      	 	 	 	 	 	 
	
              North
      Central Customer Operations

            	
              1423North
      Central Customer Service

            	
              16.00
      FTEs

            	 	$	32.43	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	69,814.62	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	10,046.97	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	23.44	 
	 
      	 
      	
              359Non-Stock
      Materials

            	 	 	 	 	 	 	160.42	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	46,800.52	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	42,183.34	 
	 
      	 
      	
              429Computer
      Hardware

            	 	 	 	 	 	 	65.89	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	34,991.93	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	3,218.70	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	4,242.11	 
	 
      	 
      	
              548Overtime
      Meals

            	 	 	 	 	 	 	7.53	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	744.17	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	358.26	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	75.30	 
	
              North
      Central Customer Operations Total

            	 
      	 	$	32.43	 	 	$	212,733.20	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              Operations
      Services

            	
              5465
      Service Techs and Dispatch

            	
              1.00
      FTEs

            	 	$	60.36	 	 	$	0.00	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
              5876Northern
      Gas-Elec Operations

            	
              1.00
      FTEs

            	 	$	60.36	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	3,101.21	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	5,325.70	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	38.24	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	28,142.71	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	8,107.64	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	91.38	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	2,069.33	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	1,786.53	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	24.75	 
	 
      	 
      	 
      	 	 	 	 	 	$	48,687.49	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	 
      	
              6008Technical
      Services PNM & TNMP

            	
              1.00
      FTEs

            	 	$	60.36	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	3,136.16	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	311.55	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	1,146.19	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	7,015.47	 
	 
      	 
      	
              428Computer
      Software

            	 	 	 	 	 	 	295.14	 
	 
      	 
      	
              429Computer
      Hardware

            	 	 	 	 	 	 	542.29	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	15,702.15	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	9,114.01	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	2,072.66	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	253.05	 
	 
      	 
      	
              560Dues
      Fees Fines

            	 	 	 	 	 	 	0.00	 
	 
      	 
      	
              770Revenue-General

            	 	 	 	 	 	 	0.00	 
	 
      	 
      	 
      	 	 	 	 	 	$	39,588.68	 
	
              Operations
      Services Total

            	 
      	 
      	 	 	 	 	 	$	88,276.17	 

    

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Service

            	
               

              Department

            	
               

              Cost Type & Description

            	 	
              Hourly
      Labor

              Rate per FTE

            	 	 	
              Non-Labor

              Amounts 1

            	 
	 
      	 
      	 
      	 	 	 	 	 	 
	
              SC
      NM Customer Service

            	
              6206SCNM
      Customer Service

            	
              9.00
      FTEs

            	 	$	34.55	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	13,468.82	 
	 
      	 
      	
              324Freight
      Postage and Courier

            	 	 	 	 	 	 	702.27	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	3,635.27	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	10,854.10	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	1,126.66	 
	 
      	 
      	
              429Computer
      Hardware

            	 	 	 	 	 	 	127.84	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	16,871.49	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	3,740.32	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	84.12	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	3,249.67	 
	 
      	 
      	
              548Overtime
      Meals

            	 	 	 	 	 	 	1,021.17	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	1,265.17	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	337.32	 
	 
      	 
      	
              581Bad
      Debt Uncollectible

            	 	 	 	 	 	 	727.32	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	1.17	 
	 
      	 
      	
              722Fuel
      Costs

            	 	 	 	 	 	 	187.96	 
	
              SC
      NM Customer Service Total

            	 
      	 
      	 	$	34.55	 	 	$	57,400.68	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              SW
      NM Customer Service

            	
              6207SWNM
      Customer Service

            	
              5.00
      FTEs

            	 	$	32.04	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	9,596.87	 
	 
      	 
      	
              20STransportation
      (Miles)

            	 	 	 	 	 	 	0.00	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	1,803.37	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	91.32	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	6,912.15	 
	 
      	 
      	
              472Leases

            	 	 	 	 	 	 	2,478.87	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	568.62	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	642.41	 
	 
      	 
      	
              548Overtime
      Meals

            	 	 	 	 	 	 	749.02	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	343.74	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	0.78	 
	
              SW
      NM Customer Service Total

            	 
      	 
      	 	$	32.04	 	 	$	23,187.15	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              W
      NM Customer Service

            	
              6208WNM
      Customer Service

            	
              7.00
      FTEs

            	 	$	33.51	 	 	 	 	 
	 
      	 
      	
              200Fleet
      Vehicle Maint-Rental

            	 	 	 	 	 	$	13,491.87	 
	 
      	 
      	
              324Freight
      Postage and Courier

            	 	 	 	 	 	 	204.46	 
	 
      	 
      	
              331Supplies
      and Equipment

            	 	 	 	 	 	 	2,551.62	 
	 
      	 
      	
              345Consumables
      - Nonloading

            	 	 	 	 	 	 	23.36	 
	 
      	 
      	
              350Material
      Issues-Major

            	 	 	 	 	 	 	875.53	 
	 
      	 
      	
              370Outside
      Services

            	 	 	 	 	 	 	35,059.19	 
	 
      	 
      	
              377Outside
      Services-Temp Labor

            	 	 	 	 	 	 	1,796.12	 
	 
      	 
      	
              436Equipment-Safety

            	 	 	 	 	 	 	111.55	 
	 
      	 
      	
              500Utility
      Payments

            	 	 	 	 	 	 	2,192.70	 
	 
      	 
      	
              501Phones

            	 	 	 	 	 	 	77.27	 
	 
      	 
      	
              530Employee
      Expense

            	 	 	 	 	 	 	4,539.20	 
	 
      	 
      	
              548Overtime
      Meals

            	 	 	 	 	 	 	84.71	 
	 
      	 
      	
              550Meals

            	 	 	 	 	 	 	1,330.93	 
	 
      	 
      	
              555Repro
      and Printing - Internal

            	 	 	 	 	 	 	311.75	 
	 
      	 
      	
              560Dues
      Fees Fines

            	 	 	 	 	 	 	539.48	 
	 
      	 
      	
              581Bad
      Debt Uncollectible

            	 	 	 	 	 	 	50.52	 
	 
      	 
      	
              610Expenses
      - General

            	 	 	 	 	 	 	221.99	 
	 
      	 
      	
              622Contributions
      and Donations

            	 	 	 	 	 	 	25.13	 
	
              W
      NM Customer Service Total

            	 
      	 
      	 	$	33.51	 	 	$	63,487.40	 
	 
      	 
      	 
      	 	 	 	 	 	 	 	 
	
              1 Non-Labor
      Amounts include the aggregate amount of costs for each cost type for the
      period January 1, 2007 through August 31, 2007. Non-Labor Amounts
      also include costs associated with officer oversight of the particular
      service provided as well as system charges, including depreciation and
      amortization, with respect to those systems used to provide the particular
      service.

            	 

    

     

     

     6exh1022_123107.htm

    
      

    

    

     

    Exhibit
10.22

     

     

     

     

     

    Change
in Director Compensation

     

     

    Non-employee
directors of PNM Resources, Inc. (the “Company”) receive their annual retainer
in the form of cash and stock-based compensation as determined by the Company’s
Board of Directors.   At the December 2007 Board meeting, the
only change made by the Board for the 2008 annual retainer from the 2007 annual
retainer reported in the Company’s 2007 Proxy Statement was to approve
increasing the amount of restricted stock rights from 1,050 to
1,750.  Thus, the 2008 annual retainer for non-employee directors is
as follows:

     

    
      	
              Annual
      Retainer:

            	 
      	
              $35,000,
      1,050 stock options* and 1,750 restricted stock rights*

            
	 
      	 
      	 
      
	
              Annual Committee Chair
      Fee:

            	 
      	
              $ 
      4,000 paid in quarterly installments (in addition to meeting
      attendance fees), except that the Annual Audit and Ethics Committee Chair
      Fee is $10,000

            
	 
      	 
      	 
      
	
              Attendance
      Fees:

            	 
      	
              $        0  per
      Board meeting

              $
      1,250 per Board Committee meeting

            

    

     

    * Stock
options and restricted stock rights granted under the Company’s Omnibus
Performance Equity Plan (“PEP”) each vest in three equal annual installments
beginning on the first anniversary of the grant date.  These awards
are typically made at the annual meeting of directors, unless the meeting occurs
during a black-out period for trading in the Company’s securities as specified
in the Company’s Insider Trading Policy.  As set forth under the
Company’s Stock Option Grant Policy, under those circumstances, the Board will
either (a) schedule a special meeting after the expiration of the black-out
period, (b) make awards pursuant to a unanimous written consent executed after
the expiration of the black-out period, or (c) pre-approve the equity awards
with an effective date after the expiration of the black-out
period.  The date of the awards is the date on which the Board
approves the awards, unless (i) the approval date is a non-trading day, in which
case the date is the immediately preceding trading date or (ii) in the case of
pre-approval during a black-out period, in which case the grant date is the
first trading date after the expiration of the black-out period.  The
exercise price of the stock option is equal to the closing price of the common
stock on the New York Stock Exchange on the date of the
grant.   The PEP prohibits option re-pricing.

     

     

    Directors
are also reimbursed for any Board-related expenses.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]