Document:

<PAGE>

                  WHOLESALE POWER SUPPLY AND SERVICES CONTRACT
                     BETWEEN TEXAS NEW MEXICO POWER COMPANY
                                       AND
                       CAP ROCK ELECTRIC COOPERATIVE, INC.

             This WHOLESALE POWER SUPPLY AND SERVICES CONTRACT ("Contract") is
entered into as of April 16, 1997, by and between TEXAS NEW MEXICO POWER
COMPANY, a Texas corporation ("TNP"), and CAP ROCK ELECTRIC COOPERATIVE, INC.,
a Texas corporation ("Cap Rock"). (TNP and Cap Rock each being referred to
herein as a "Party" or jointly as the "Parties").

                                    RECITALS:
             WHEREAS, Cap Rock operates an electric cooperative for the purpose
of providing electric power to its customers ("Customers"); and

             WHEREAS, Cap Rock desires to reduce its total costs for electric
power by entering into new electric power supply arrangements; and

             WHEREAS, TNP is engaged in the business of managing and marketing
electric power and utilizing its management skills and techniques to reduce
electric power costs for its customers;

             NOW THEREFORE, in consideration of the recitals and the
covenants and agreements hereinafter set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties hereto agree as follows:

1.       DEFINITIONS

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         1.1      "ANCILLARY SERVICES" are defined in the ERCOT Operating
Guide as the same may be amended from time to time.

         1.2      "CAP ROCK DEMAND" means the requirements for electric power
imposed on Cap Rock's System by Cap Rock's customers in Cap Rock's
Hunt-Collin Division measured in KW as an average over 30 minute intervals.

         1.3      "CAP ROCK ENERGY" has the meaning in Section 3.2.

         1.4      "CONTRACT INTEREST RATE" means the lesser of: (a) the then
effective prime rate for large U.S. Money Center Commercial Banks, published
under "Money Rates" by the Wall Street Journal plus two percent or (b) the
maximum applicable non-usurious rate in the State of Texas.

         1.5      "CUSTOMERS" has the meaning in the Recitals.

         1.6      "TNP" has the meaning in the introductory paragraph.

         1.7      "ENERGY PAYMENT" has the meaning in section 3.2.

         1.8      "ERCOT" means the Electric Reliability Council of Texas.

         1.9      "Energy Price" has the meaning in Section 3.3.

         1.10     "FIRM" means not subject to interruption in the absence of
Force Majeure.

         1.11     "FORCE MAJEURE" has the meaning in Section 10.1

         1.12     "GOVERNMENTAL REGULATIONS" means any law. statute.
ordinance, or regulation, or any change to any existing law, statute,
ordinance or regulation, which is promulgated, enacted or imposed by any
local, state or federal government, agency or authority including, without
limitation, any environmental law, statute, ordinance or regulation but
excluding any Taxes.

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         1.13     "KV" means kilovolt or one thousand volts.

         1.14     "KW" means kilowatt or one thousand watts.

         1.15     "MWH" means megawatt hour or one megawatt or energy for one
                  hour.

         1.16     "POINT OF DELIVERY" has the meaning in Section 2.3.

         1.17     "PRUDENT ELECTRIC INDUSTRY PRACTICES" means any of the
reasonably prudent practices, methods, and acts engaged in or approved by a
significant portion of the wholesale electric power industry during the
relevant time period, or any of the practices methods and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the
decision was made, could have been expected to accomplish the desired result
at a reasonable cost consistent with good business practices, reliability,
safety, and expedition.

         1.18     "REGULATORY COSTS" means any assessments, charges, fees or
costs incurred by a Party or for which a Party is liable as a result of
Governmental Regulations and which directly affect the cost of electric power
delivered to Cap Rock under this Contract, whether from ownership,
generation, transmission or the purchase, sale or delivery of electric power
or fuel, excluding taxes. "Regulatory Costs" excludes the costs which a Party
incurs in the conduct of its business in general, whether or not this
Contract exists. 1.19 "Swindell Substation" means the Swindell electric
substation located in Hunt County, Texas at the interconnection of the Cap
Rock System and the Texas Municipal Power System transmission system.

         1.20     "SYSTEM" means Cap Rock's Hunt-Collin electric transmission
and distribution system.

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         1.21     "TAXES" shall include, without limitation, any and all
federal, state or local taxes imposed on or measured by sales, use, gross
receipts, consumption or other similar taxes or franchise fees, but shall not
include any taxes imposed on net income or net worth for the privilege of
doing business or exercising a franchise.

         1.22     "TERM" has the meaning in Section 2.5.

2.       TERMS AND CONDITIONS

         2.1      POWER SUPPLY. During the Term and subject to the
limitations set forth in this Contract: (i) TNP shall cause sufficient
capacity to be made available, and sufficient power and energy be delivered,
to Cap Rock at the Point of Delivery on a Firm basis to satisfy Cap Rock's
Demand, (ii) TNP shall have the sole right and obligation to satisfy all of
Cap Rock's Demand at the Point of Delivery (so long as TNP has satisfied its
contractual requirements to Cap Rock), and (iii) Cap Rock shall accept and
pay TNP for all energy which is delivered to Cap Rock by TNP at the Point of
Delivery, to satisfy Cap Rock's Demand. Cap Rock and its Customers shall use
the energy made available by TNP under this Agreement to meet Cap Rock's
Demand and not for resale to persons or entities other than Cap Rock or its
customers.

         2.2      RELIABILITY CRITERIA. TNP shall supply electric power to Cap
Rock in accordance with ERCOT reliability criteria. TNP shall comply with all
ERCOT Operating Guides applicable to generation, scheduling, delivery, metering
and telemetering of demand and energy as the same are in effect from time to
time.

         2.3      POINT OF DELIVERY. The Point of Delivery for capacity made
available and energy delivered under this Contract shall be delivered to the
high side of the transformer at the Swindell Substation located in Hunt
County, Texas.

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         2.4      METERING. The meter shall be placed on the low side of the
transformer at the Swindell Substation. A meter that compensates for
transformer losses will be used.

         2.5      TERM. The term of this Contract ("Term") shall commence at
12:01 A.M. on June 1, 1997 and shall expire at 11:59 P.M. on May 31, 1999,
unless extended by mutual agreement or as otherwise terminated pursuant to
this Agreement.

         2.6      LOAD CONTROL AREA REQUIREMENTS. The Parties agree to
incorporate the load of the Hunt-Collin division of Cap Rock into the TNP
load control area for the Term of this Contract. All capital costs and
expenses associated with required RTUs will be the responsibility of Cap
Rock. All telephone line charges for telemetry between the RTU(s) and TNP's
load control area will be shared 50%-50% by the Parties.

         2.7      EMERGENCY TIES. The Parties recognize that Cap Rock
currently has a normally open emergency interconnection point with TMPA near
the City of Farmersville and is contemplating another with the City of
Greenville. It is Cap Rock's intent to use these and any future
interconnection points solely to accommodate mutual backup energy
arrangements with other utilities in the event of system emergencies. Cap
Rock agrees to coordinate with and inform TNP system operators of any intent
to utilize such interconnection point(s) to receive or-deliver energy.

3.       COMPENSATION, PRICING AND CHARGES

         3.1      COMPONENTS. TNP's compensation for the power supply and
other services it provides to Cap Rock under this Contract shall be the total
of the following components:

                  1.       Energy - the result of (a) The Energy Price (Section
             3.3) times (b) the Energy Amount (Section 3.2)

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                  2.       Substation Lease Payment - if any (Section 3.4): and

                  3.       Planned Transmission Service Charges (Section 3.5).

                  4.       50% of telephone line charges for telemetry between
         the RTUs and TNP's control center.

         3.2      ENERGY AMOUNT. For each month, the Energy Amount shall be
the metered KWH.

         3.3      ENERGY PRICE. The Energy Price per KWH for the energy
delivered to the Cap Rock system is dependent upon the monthly load factor.
The load factor shall be determined by dividing the metered KWH for the month
by the product of the metered KW and the number of hours in the monTh. The
prices shall be according to the following:

<TABLE>
<CAPTION>
                      MONTHLY LOAD FACTOR                            PRICE PER KWH
                     --------------------------------------------------------------
<S>                                                                  <C>
                      LESS THAN 40%                                   2.833(CENT)
            ---------------------------------------------------------------------
                      40% TO 45%                                      2.756(CENT)
            ---------------------------------------------------------------------
                      45% TO 50%                                      2.695(CENT)
            ---------------------------------------------------------------------
                      50% TO 55%                                      2.645(CENT)
            ---------------------------------------------------------------------
                      55% TO 60%                                      2.603(CENT)
            ---------------------------------------------------------------------
                      MORE THAN 603%                                  2.567(CENT)
            ---------------------------------------------------------------------
</TABLE>

         3.4      SUBSTATION LEASE PAYMENT. For each month of the Term, Cap
Rock shall pay TNP an amount equal to lease payments payable by TNP under a
potential substation lease assignment (Section 15,7)

         3.5      PLANNED TRANSMISSION SERVICE CHARGES. Planned transmission
service charges pursuant to Public Utility Commission of Texas Rules and
ERCOT procedures

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will be paid by TNP and reimbursed by Cap Rock. The amount paid by TNP for
such services to accommodate firm energy deliveries to serve the Cap Rock
Demand will be included on the monthly bill to Cap Rock as a separate item.

4.       OBLIGATIONS FOR INTERCONNECTION

         If during the Term of this contract TNP demonstrates to Cap Rock
that the capability of the Point of Delivery or any other point of
interconnection with other utility systems should be upgraded because the
safety, reliability, or the security of the Cap Rock System requires
reinforcement or enlargement of the Point of Delivery, and both Parties agree
such upgrades are necessary, Cap Rock shall pay the amounts required to
upgrade such interconnection facilities, as and when such amounts are
incurred. Otherwise TNP shall be released from its obligations under this
Contract to the extent such obligations are adversely affected by the failure
to upgrade such interconnection facilities.

5.       ACKNOWLEDGMENTS

         Each Party acknowledges and agrees that:

         (a)      the material economic terms of this Contract have been
individually tailored and negotiated by it:

         (b)      the other Party is acting solely in the capacity of an
arm's length contractual counterpart with respect to this Contract;

         (c)      the other Party is not acting as a financial advisor (or in
any similar capacity) with respect to this Contract; and

         (d)      it is entering into this Contract in reliance upon its own
judgment and upon such tax, accounting, regulatory and financial advice given
by its representatives as

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it has deemed necessary and not upon any view expressed by the other Party or
its representatives and with full understanding of all of the material risks
and it is capable of assuming those risks.

6.       REGULATORY APPROVALS

         The Parties agree to cooperate in obtaining all regulatory approvals
necessary to perform its Contract. Each Party shall pay its own costs for any
approvals it is required to obtain. Except as otherwise provided in this
Contract, TNP shall prepare and submit any filings that may be required to
permit full performance of this Contract at TNP cost.

7.       TERMINATION OF CONTRACT

         7.1      The following shall be grounds for termination of this
Contract:

         (a)      Either Party may terminate this Contract if the other Party
fails to make payment of any amounts due under any provision of this
Contract, which failure continues for a period of five (5) days after receipt
of written notice of such nonpayment.

         (b)      either Party may terminate this Contract if the other Party
fails to comply with any other material provision of this Contract, which
failure continues for a period of thirty (30) days after written notice of
such noncompliance. unless, in the case of a failure which cannot be cured
within thirty (30) days, the noncomplying Party has commenced to cure such
non-compliance within the thirty (30) day notice period, is thereafter
diligently pursuing such efforts, and the noncompliance is cured within sixty
(60) days following the date that written notice of noncompliance is given.
If during the cure periods under this Section 7.1(b) the noncomplying Party
is, in good faith, attempting to cure its noncompliance then the other Party
shall, to the extent its cooperation is required, co-operate with the
noncomplying Party so long as that

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cooperation does not require the other Party to waive any of its rights under
this Contract make any economic concessions to the noncomplying Party.

         (c)      Either Party may terminate this Contract if the other Party
(i) makes an assignment or any general arrangement for the benefit of
creditors; (ii) files a petition or otherwise commences, authorizes or
acquiesces in the commencement of a proceeding or cause under any bankruptcy
or similar law for the protection of creditors, or has such petition filed
against it; (iii) otherwise becomes bankrupt or insolvent (however
evidenced); or (iv) is unable to pay its debts as they fall due.

         (d)      Either Party may terminate this Contract if the other Party
or its activities become subject to regulation under state or federal law to
a greater or different extent than that existing on the date of this Contract
and such greater or different regulation renders this Contract illegal,
unenforceable, or materially changes the economic benefits to the Parties.

8.       REMEDIES

         8.1      A Party which may and desires to terminate this Contract
pursuant to Section 7.1 or Section 10.2 shall give written notice of its
intention to terminate and the reasons therefor to the other Party, which
termination shall be effective no earlier than the thirtieth (30th) day
following the receipt of said notice from Cap Rock to TNP or no earlier than
the sixtieth (60th) day following receipt of said notice from TNP to Cap
Rock, whereupon the terminating Party shall be excused and relieved of all
obligations and liabilities under this Contract, except those liabilities
incurred before the effective date of termination or as a result of the
termination.

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<PAGE>

         8.2      Each Party shall use every reasonable effort to mitigate
any damages resulting from a breach and/or termination of this Contract.

         8.3      If this Contract is terminated by either Party, each Party
shall cooperate in providing the information, documents, software and other
resources necessary to facilitate the transition of services that terminate
causes.

         8.4      In the event that TNP does not meet the Reliability
Criteria (Section 2.2) for reasons other than a Force Majeure event and Cap
Rock must acquire power and energy from another source to meet the needs of
its System, then TNP shall reimburse Cap Rock to the extent that Cap Rock's
cost of replacement energy will be equal to the applicable Energy Price set
out in Section 3.3

9.       LIMITATION OF LIABILITY

         In no event shall either Party be liable to the other for, and each
of the Parties waive s the right to seek punitive or consequential damages,
whether arising in contract, tort, by operation of law or otherwise. Nothing
in this Contract shall be construed to create any duty to, standard of care
with respect to, or any liability to any person not a party to this Contract

10.      FORCE MAJEURE

         10.1     FORCE MAJEURE. Neither Party shall be responsible or liable
for or deemed in breach of this Contract because of any delay or failure in
the performance of its obligations under this contract (other than the
obligation to pay money) due solely to circumstances beyond the reasonable
control of the Party experiencing such delay or failure, including, but not
limited to, acts of God; unusually severe weather conditions; war, riots,
requirements, actions or failures to act on the part of governmental
authorities

                                                                          10
<PAGE>

preventing performance; accident; fire; damage to or breakdown of necessary
facilities (including, without limitation, the inability to obtain necessary
parts and equipment); or transportation or transmission delays, curtailments
or accidents (such causes hereinafter called "Force Majeure"); provided that:
(a) the nonperforming Party gives the other Party reasonably prompt written
notice describing the particulars of the occurrence; (b) the suspension of
performance is of no greater scope and of no longer duration than is required
by the Force Majeure; (c) the nonperforming Party uses its best efforts to
remedy its inability to perform; (d) when the nonperforming Party is able to
resume performance of its obligations under this contract, that Party shall
give the other party written notice to that effect; and (e) the Force Majeure
was not caused by or connected with any negligent or intentional acts,
errors, or omissions of the nonperforming Party, or the nonperforming party's
failure to comply with any law, rule, regulation, order or ordinance, or any
breach or default of this Contract by the nonperforming Party.

         10.2     TERMINATION DUE TO FORCE MAJEURE. Except as otherwise
provided, in no event will any condition of Force Majeure extend the Term of
this Contract. If any condition of Force Majeure delays a Party's performance
for a time period greater than ninety (90) days, the Party not delayed by
such Force Majeure may terminate this Contract, without further obligation;
provided that the Party not delayed may at its sole discretion extend such
period if the Party delayed by such Force Majeure is exercising due diligence
in its efforts to cure the condition of Force Majeure.

         10.3     REMOVAL OF FORCE MAJEURE. The affected Party shall use all
reasonable efforts to remedy any inability to perform due to Force Majeure.
If within a reasonable time after the occurrence of a Force Majeure the
affected that Party has failed to take such

                                                                          11
<PAGE>

action as that Party could lawfully and reasonably initiate to remove or
relieve either the Force Majeure occurrence or its direct or indirect
effects, the other Party may, in its sole discretion and after written notice
to the affected Party, but at the affected Party's expense, initiate such
reasonable measures as will be designed to remove or relieve such Force
Majeure occurrence or its direct or indirect effects and thereafter require
the affected Party to resume full or partial performance. The affected party
shall reimburse the other Party promptly for the expenses incurred by such
other Party in taking the aforementioned measures.

11.      BILLING AND RECORDS

         11.1     BILLING AND PAYMENTS. For each month of the Term of this
Contract, TNP shall prepare and deliver to Cap Rock as soon as possible
following the end of that month an invoice, setting forth the total charges
due from Cap Rock for that month. Cap Rock shall pay to TNP the undisputed
charges set forth in TNP invoice not later than the due date which shall be
the fifteenth (15th) day from the date of receipt of TNP invoice sent by the
earliest mode of transmittal. TNP invoice may be faxed or electronically
transmitted to Cap Rock in which case a hard copy will be sent by overnight
mail delivery. Cap Rock's payment may be made by check or by electronic wire
transfer of same day available funds to TNP account at:

             Texas-New Mexico Power Company
             NationsBank of Texas, Dallas
             Dallas, Texas
             ABA Routing No. 11000012
             Account No. 5050268201

                                                                          12
<PAGE>

         11.2     LATE PAYMENTS PENALTY. All undisputed amounts invoiced
pursuant to this Section 11 which are not paid by Cap Rock on or before the
due date shall be payable with interest accrued daily from such due date to
the date of payment at an annual rate equal to the Contract Interest Rate
plus 2%, but in no event greater than the maximum rate permitted by law.
Interest shall be calculated from the due date of the invoice to the date of
payment.

         11.3     RECORDS. Cap Rock and TNP each shall keep properly stored
and maintained and shall make available for the inspection, examination and
audit of the other Party, its authorized employees, agents, or
representatives and auditors at all reasonable times, such records as
required by this Contract and all data, documents, and other materials
relating to or substantiating any charges to be paid by or to Cap Rock, for
the minimum period required by the State of Texas for records retention.

         11.4     DISPUTES ON INVOICES. If there is a dispute between TNP and
Cap Rock concerning the amount of any TNP invoice, Cap Rock shall pay the
undisputed portion of the amount stated as due under that invoice. TNP and
Cap Rock shall attempt to promptly and amicably resolve the dispute. Upon
resolution of the dispute the disputed amount shall be paid or refunded. as
the case may be, to the prevailing Party, together with accrued interest at
the Contract Interest Rate from the due date or the date the disputed amount
was paid by the prevailing Party, as the case may be, to the date of payment
or refund, as the case may be.

12.      ARBITRATION

                                                                          13
<PAGE>

         Any controversy or claim arising out of or relating to this Contract
or the breach thereof which cannot be resolved amicably shall be settled by
arbitration. This agreement to arbitrate shall be specifically enforceable
under the prevailing arbitration law. The award of the arbitrators shall be
final, and a judgment may be entered upon it by any court having
jurisdiction. The arbitration shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration Association then
prevailing, and shall be conducted in Dallas, Texas unless the Parties agree
otherwise.

13.      ASSIGNMENT

         13.1     Neither Party shall (by operation of law or otherwise)
assign its rights or delegate its performance under this Contract without the
prior written consent of the other, which consent shall not be unreasonably
withheld, and any attempted assignment or delegation without such consent
shall be void. Subject to the preceding sentence, this Contract and all of
its covenants, terms and provisions shall be binding upon and inure to the
benefit of and be enforceable by the Parties and their respective successors
and assigns.

         13.2     Notwithstanding Section 14.1, (a) TNP may assign its rights
and delegate its performance under this Contract to an affiliate so long as
such affiliate has the legal ability. the financial capability and the
technical experience necessary- to perform the obligations of TNP under this
Contract and (b) Cap Rock may assign its rights and delegate its performance
under this Contract together but not separately to a wholly-owned subsidiary
of Cap Rock provided that Cap Rock provides a guaranty to TNP of the
subsidiary's obligations on terms and in a form reasonably acceptable to TNP.

                                                                          14
<PAGE>

         14. NOTICES Unless otherwise provided in this Contract, any notice,
         consent or other communication required to be made under this Contract
         shall be in writing, shall include an effective date, and shall be
         mailed first class, U. S. Mail, postage prepaid, or delivered to the
         address or sent to the fax number, set forth below:

             Texas-New Mexico Power Company
             4100 International Plaza
             Fort Worth, TX 76109
             P.O. Box 2943
             Fort Worth, TX 76113-2943
             Attn: Manager, Power Resources
             Fax:     (817) 737-1384

15.      MISCELLANEOUS

         15.1     EFFECT OF CONTRACT. This Contract shall not constitute the
dedication of either Party's system or resources or any portion thereof to
the other Party or to the public. Nothing in this Contract shall create any
duty to, any standard of care with reference to, or any liability to any
person not a Party to it. Except with respect to the obligations specifically
set forth in this Contract, nothing contained in this Contact shall be
construed to form a partnership, joint venture, fiduciary, or any other legal
relationship between the parties other than the relationship of independent
contracting parties.

         15.2     GOVERNING LAW. This Contract is entered into and
performable in Hunt County, Texas and shall be governed by and construed in
accordance with the laws of the State of Texas applicable to contracts made
and to be performed in the State of Texas excluding conflicts of laws
principles.

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<PAGE>

         15.3     AMENDMENT AND WAIVER. This Contract may not be amended,
modified, superseded, or canceled, nor may any of the terms hereof be waived,
except by a written instrument executed by both Parties or, in the case of a
waiver, by the Party waiving compliance. Any failure of either Party to
enforce any of the provisions of this Contract or to require compliance with
any of its provisions at any time during the pendency of this Contract shall
in no way affect the validity of this Contract, or any part hereof, and shall
not be deemed to be a waiver of the right of either Party thereafter to
enforce any and each such provision.

         15.4     SEVERABILITY. The invalidity of one or more of the
provisions or Sections contained in this Contract shall not affect the
validity of the remaining portion of this Contract so long as the material
purposes of this Contract can be determined and effectuated. In the event
that any portion or all of this Contract is held to be invalid or
unenforceable, the Parties agree to negotiate in good faith to reach an
equitable agreement on such portion that is void or enforceable which shall
effect the intent of the Parties as set forth in this Contract. If after
sixty (60) days negotiations are unsuccessful, either Party may request
arbitration as allowed under Sections 12 of this Contract.

         15.5     ENTIRE CONTRACT. This Contract constitutes the entire
understanding of the Parties with respect to the subject matter hereof. and
supersedes all prior agreements and commitments with respect thereto. There
are no oral understandings. terms, or conditions and neither Party has relied
upon any representation, express or implied, not contained in this Contract.

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<PAGE>

         15.6     CAPTIONS. All indexes, titles, subject headings, section
titles, and similar items are provided for the purposes of reference and
convenience and are not intended to be inclusive, definitive, or to affect
the meaning of the contents or scope of this Contract.

         15.7     SUBSTATION LEASE ASSIGNMENT. In the event that Cap Rock
enters into a lease financing arrangement for the Swindell Substation, TNP
will accept the assignment under a separate Lease Assignment Agreement. Under
that agreement, TNP would pass through to Cap Rock the monthly debt service
payments and any other payments or charges that are due under the lease.

         15.8     COOPERATION OF THE PARTIES. The Parties agree to each
utilize reasonable diligence and work in good faith to effect the
transactions contemplated in this contract by June 1, 1997. Such efforts
include but are not limited to:

         -        Cooperating with appropriate ERCOT entities in making any
                  required changes to the placed resources depicted in the
                  current ERCOT placing cases to accommodate the transactions
                  contemplated by this contract.

         -        Setting up the necessary telemetry- and metering equipment and
                  communications to incorporate the Hunt- Collin load into TNP's
                  load control area.

         IN WITNESS WHERE OF, the Parties hereto have caused this Contract to
be signed by their respective duly authorized representatives as of the date
first written above.

                                       CAP ROCK ELECTRIC COOPERATIVE, INC.

                                       By: /s/ John D. Parker
                                          -------------------------------------

                                                                          17
<PAGE>

                                       Name: John D. Parker
                                            -----------------------------------

                                       Title: Vice President/Chief
                                              Financial Officer
                                             ----------------------------------

                                       TEXAS NEW-MEXICO POWER COMPANY

                                       By: /s/ Randy Ownby
                                          -------------------------------------

                                       Name: Randy Ownby
                                            -----------------------------------

                                       TITLE: Assistant Vice President
                                             ----------------------------------

                                                                          18<PAGE>

                       SOUTHWESTERN PUBLIC SERVICE COMPANY
                       WHOLESALE FULL REQUIREMENTS SERVICE
                                  RATE SCHEDULE

                         THE UTILITY SUPPLYING SERVICE:

                       Southwestern Public Service Company

                         THE UTILITY RECEIVING SERVICE:

                       Cap Rock Electric Cooperative, Inc.
                             FERC Rate Schedule No.

                     DESCRIPTION OF SERVICE TO BE RENDERED:

                   Sale of firm electric power and energy, for
                       distribution and resale by the full
                             requirements customer.

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                       <C>
RECITALS...................................................................1

ARTICLE I.
         Points of Delivery - Service Specifications.......................2

ARTICLE II.
         Customer's Installation...........................................4

ARTICLE III.
         Contract Power....................................................4

ARTICLE IV.
         Metering..........................................................5

ARTICLE V.
         Connection to Qualifying Facilities...............................6

ARTICLE VI.
         Rates.............................................................8

ARTICLE VII.
         Exceptions To Minimum Demand Billing Units........................9

ARTICLE VIII.
         Conservation And Load Management Measures........................10

ARTICLE IX.
         Payment of Bills.................................................10

ARTICLE X.
         Termination of Agreement.........................................11

ARTICLE XI.
         Access...........................................................11

ARTICLE XII.
         Force Majeure....................................................11

ARTICLE XIII.
         Liability........................................................12

ARTICLE XIV.
         Assignment.......................................................12

ARTICLE XV.
         Approval.........................................................13

ARTICLE XVI.
         Effective Date and Term..........................................13

                                        i
<PAGE>

ARTICLE XVII.
         Conversion To Partial Requirements Service.......................13

ARTICLE XVIII.
         Modifications....................................................15

ARTICLE XIX.
         Governing Law....................................................15

ARTICLE XX.
         Cumulative Remedies..............................................16

ARTICLE XXI.
         Notice...........................................................16

ARTICLE XXII.
         Additional Customer Facilities...................................17

ARTICLE XXIII.
         Lease of Facilities..............................................17

ARTICLE XXIV.
         Mutual Assistance................................................18

ARTICLE XXV.
         Other Agreements.................................................18

ARTICLE XXVI.
         Entirety.........................................................19
</TABLE>

                                        ii
<PAGE>

                       SOUTHWESTERN PUBLIC SERVICE COMPANY
                                  AGREEMENT FOR
               WHOLESALE FULL REQUIREMENTS ELECTRIC POWER SERVICE
                     TO CAP ROCK ELECTRIC COOPERATIVE, INC.

The Parties to this agreement ("Agreement") are Southwestern Public Service
Company, a New Mexico corporation ("SPS"), and Cap Rock Electric Cooperative,
Inc., a Texas corporation ("Customer"). SPS and Customer are also referred to
in this Agreement as "Party" or "Parties".

                                    RECITALS

         SPS is an electric utility engaged in the business of generating,
purchasing, transmitting, and distributing electric power and energy to
customers within the States of Texas, New Mexico, Oklahoma and Kansas.

         Customer is a cooperative corporation engaged in the business of
transmitting and distributing purchased electric power and energy to retail
customers within the State of Texas.

         Customer desires to purchase electric power and energy for resale,
and SPS is willing to sell and deliver to Customer electric power and energy
for such purposes.

         SPS and Customer recognize that all of Customer's substations are now
physically connected with the Electric Reliability Council of Texas ("ERCOT").
In order for SPS to sell and Customer to buy power and energy, it is necessary
for Customer to disconnect from ERCOT and connect with the Southwest Power
Pool ("SPP"). The physical connection of Customer's substations with the SPP
requires the construction of additional transmission facilities by both SPS
and Customer.

         Accordingly, in consideration of the benefits to be realized by the
Parties, their mutual promises, and the specific considerations set forth in
this Agreement, the Parties agree as set forth below.

                                        1
<PAGE>

                                   ARTICLE I.

         POINTS OF DELIVERY - SERVICE SPECIFICATIONS

         The location of the point or points of delivery ("Delivery Point") of
the electric power and energy to be sold hereunder to Customer for its
requirements at each Delivery Point, together with certain additional
information regarding the service at each Delivery Point, are shown on Exhibit
A to this Agreement.

         Changes to Exhibit A, including additions or deletions of Delivery
Points, may be made by written agreement of the Parties and shall be made a part
of this Agreement by amendment of Exhibit A.

         All terms and conditions contained in this Agreement shall apply to
any and all additional Delivery Points which may be established during the
term of this Agreement with the same force and effect as they do to the
initial Delivery Points specifically set forth in Exhibit A.

         SPS shall make available delivery of power and energy to Customer
through no fewer than two transmission (230 kv or higher voltage) lines, one
of which shall originate in the vicinity of Lubbock County, Texas and another
shall originate in the vicinity of Lea County, New Mexico. The lines shall be
located to permit Customer to receive power and energy at 138 kV through new
SPS interchanges at Customer's Vealmoor and Tate substations.

         It is the intent of the Parties that all power and energy delivered
hereunder will be primarily delivered through the Vealmoor delivery point,
with the Tate delivery point as a secondary or backup delivery point. It may
be necessary from time to time for either Party to temporarily take its
transmission lines out of service for maintenance, upgrades, or other reasons,
and the Parties shall, through their operations personnel develop operating
procedures for notice of such outages and operation of the systems in
conformance with standard electric utility practices. However, if due to SPS
system operations, SPS requests Customer to operate its system closed, such
that power and energy is delivered through both delivery points, SPS shall
utilize the coincident peak demand

                                        2
<PAGE>

established at the two delivery points as the measured demand for purposes of
Article VI of this Agreement. Title to electric power and energy transferred
into a Party's system shall pass to that Party at the Delivery Point.

         Customer agrees that, during the term of this Agreement, SPS will
have the right to transmit power and energy from any Delivery Point shown in
Exhibit A over Customer's system to any other Delivery Point shown in
Exhibit A at no cost to SPS, except that SPS shall compensate Customer for
energy losses. Customer shall provide this service to SPS only to the extent
the service does not unreasonably interfere with Customer's system operations.
Such right to transmit with compensation only for losses shall not apply to
SPS transmission of power and energy directly to any wholesale or retail
customer that is served by Customer or that is located in Customer's
certificated service area or that is interconnected with Customer' s system.

         SPS compensation for energy losses shall be in accordance with the
terms of a written agreement with Customer. SPS and Customer shall proceed to
negotiate such an agreement upon execution of this Agreement, and, if a
written agreement is not executed by both Parties by January l, 1993, Customer
shall, on or before that date, file rates and terms and conditions for review
and approval by the Federal Energy Regulatory Commission.

         Customer agrees that, within a reasonable time after Customer gives
notice to terminate this Agreement, Customer will provide SPS with an
agreement specifying terms and conditions for SPS to continue to transmit
power and energy from one Delivery Point shown in Exhibit A over Customer's
system to other Delivery Points shown in Exhibit A. Such terms and conditions
shall provide for such transmission service at fully allocated, embedded
costs, or such other cost basis as may be mutually acceptable. If Customer and
SPS do not reach agreement on transmission service terms and

                                        3
<PAGE>

conditions prior to the effective date of termination of this Agreement,
Customer will, on or before such date, file complete terms and conditions for
review and approval by the Federal Energy Regulatory Commission.

                                  ARTICLE II.

         CUSTOMER'S INSTALLATION

         Any and all apparatus on Customer's facilities, except SPS's metering
equipment, required to properly control the flow of electric energy beyond the
Delivery Points, and to transform it to the voltage desired by Customer, shall
be furnished, installed, maintained and operated by and at the expense of
Customer, subject to the specifications as to the type and capacity of such
apparatus as may be prescribed by standard engineering practice.

         Customer shall, as far as reasonably possible, maintain a power
factor on its system of ninety-five percent (95%) during times of peak load.
Customer shall control the character and installation of apparatus on lines
(whether owned by Customer or by any of its customers) so that the apparatus
or the nature of its operation will not produce undue electrical disturbance
on SPS's system. If the apparatus or installation on the Customer's side of
the Delivery Point produces undue electrical disturbance one or damage t%
SPS's system, Customer shall, at its expense, take such action as is required
to eliminate the problem.

         Under no circumstances shall Customer connect SPS's lines through
Customer's lines with any other supplier of electric power and energy without:
(a) the prior written approval of SPS, and? (b) engineering coordination to
ensure that SPS's system will not be jeopardized by the interconnections.

                                  ARTICLE III.

         CONTRACT POWER

         Subject to the terms of this Agreement, SPS shall provide and
Customer shall purchase all electric power and energy required by Customer at
the Delivery Points set forth in Exhibit A, and at such

                                        4

<PAGE>

other Delivery Points as may be agreed upon.

         The maximum commitment of SPS to deliver electric power-and energy at
each Delivery Point is shown on Exhibit A. Customer shall have the right from
time to time to request an increase in such commitment of SPS, provided that
Customer shall give SPS reasonable notice in writing of its desire to increase
its requirements from SPS, specifying the Delivery Point(s) and the date(s) on
which the increase will be needed. Subject to the terms and limitations of
this Agreement, SPS will make such additional electric power and energy
available to Customer at the specified Delivery Points and on the dates
specified, provided that SPS has sufficient capacity in its existing
facilities. The terms and conditions required to make such additional electric
power and energy available shall be negotiated by the Parties.

         In the event that SPS is unable to provide the additional capacity
requested by Customer, Customer may, notwithstanding any other provision of
this Agreement, shift load, interconnect with other suppliers, and install or
purchase such power supply resources as may be necessary for Customer to meet
such additional requirements; provided that, Customer must comply with the
notice and coordination provisions of the last paragraph of Article II.

                                  ARTICLE IV.

         METERING

         Electric power and energy supplied by SPS to Customer shall be
metered at the Delivery Points and voltages shown in Exhibit A.

         The meters and metering equipment required for the measurement of
electric power and energy delivered to Customer shall be owned, installed,
operated and maintained by SPS.

         Periodic tests shall be made on the metering equipment by SPS at
approximately 12-month intervals after original installation. Prior notice of
each periodic test shall be given to Customer and an opportunity afforded
Customer to have a representative present to witness the test. If, as a result
of the test, the metering

                                        5
<PAGE>

equipment is found to be inaccurate, SPS will restore the metering equipment
to a condition of accuracy. If the inaccuracy exceeds-two percent of 100
percent registration, the readings of the meters taken during the period of 90
days preceding the test (or during such shorter period as may have intervened
since the previous test) shall be corrected and payments adjusted accordingly.
In no event will corrections be made for a period beyond 90 days or the date
of the last preceding test, whichever is the shorter period.

         In addition to the regular periodic tests, Customer or SPS, upon
request in writing given by one to the other, may call for a special test of
the metering equipment. The meter or meters involved in the request shall be
tested by SPS as soon as reasonably practical with representatives of the
Parties present. In the event that the special tests requested by Customer
shall show the meter or meters to be registering within two percent of 100
percent registration, Customer shall bear the expense of the tests. If the
tests show greater than two percent of error, SPS shall bear the costs of the
tests.

         If the meters installed by SPS wholly fail to register the electric
power or energy during any period of time, the amount of electric power or
energy delivered during the period shall be measured by means of check meters
as may have been installed by Customer. If Customer has not installed check
meters, or if check meters have wholly failed to register the electric power
or energy during this period of time, the amounts of electric power or energy
so delivered will be estimated according to the amounts previously delivered
under substantially similar conditions.

                                   ARTICLE V.

         CONNECTION TO QUALIFYING FACILITIES

         In accordance with and subject to the Public Utility Regulatory
Policies Act of 1978 and the Federal Energy Regulatory Commission and state
jurisdictional regulations thereunder, Customer is obligated to purchase power
and energy from qualifying facilities ("Qualifying Facility"). Customer shall
give SPS

                                        6
<PAGE>

reasonable notice of its intention to connect Customer's system to a
Qualifying Facility. Customer also shall give SPS reasonable notice before the
initial energizing or start-up testing of the Qualifying Facility so that SPS
may have a representative present at the test.

         Customer shall furnish SPS such information concerning any Qualifying
Facility to which Customer proposes to connect Customer's system as SPS may
require. The provision of such information to SPS does not relieve Customer
from any liability, nor does it guarantee the adequacy of any Qualifying
Facility to which Customer proposes to connect its system to perform its
intended functions.

         Customer shall cause to be installed at no expense to SPS facilities
or equipment which SPS shall specify as necessary to protect SPS's system from
faults, disturbances or overload conditions resulting from the interconnection
of Customer's system to a Qualifying Facility and require an operating
agreement for conditions related to technical and safety aspects of parallel
generation. Such facilities and equipment shall be installed prior to the
connection of Customer's system to a Qualifying Facility. CUSTOMER AND SPS
DISCLAIM ANY AND ALL REPRESENTATIONS AND WARRANTIES, WHETHER WRITTEN OR ORAL,
EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF FITNESS FOR
A PARTICULAR PURPOSE, DESIGN, OR SUITABILITY, AND ARISING BY CONTRACT OR
STATUTE, RELATING TO ANY PROTECTIVE FACILITIES OR EQUIPMENT THAT SPS MAY
SPECIFY FOR INSTALLATION.

         If, in the sole judgment of SPS, the connection of Customer's system
to a Qualifying Facility results in an unsafe condition, SPS shall have the
right to disconnect Customer's facilities from SPS's system. Any generation
from a Qualifying Facility that produces harmonics of a magnitude or frequency
that could interfere with communications equipment or SPS's system voltage
shall be discontinued until corrective measures have been taken by the
Customer or the owner of the Qualifying Facility.

         Consistent with Article XI, Customer shall supply or shall

                                7
<PAGE>

arrange for the Qualifying Facility to supply, at no cost to SPS, a suitable
location on Customer's or Qualifying Facility's system for SPS to install,
operate, maintain, repair, replace, and remove all of its metering equipment
and facilities to be used for determining the amount of power and energy
supplied by the Qualifying Facility. Customer or the Qualifying Facility shall
provide SPS reasonable means of access to its metering equipment and
facilities.

         Electric power and energy delivered by the Qualifying Facility to
Customer shall be metered by SPS in accordance with Article IV and charged to
Customer by SPS in accordance with Article VI. The measured demand for
Customer's Delivery Point beyond which the Qualifying Facility is
interconnected to Customer, shall be the maximum simultaneous sum recorded
during the billing cycle of: (a) Customer's purchased power on the SPS meter
at the Delivery Point, and (b) the Qualifying Facility deliveries to Customer
recorded on the SPS meter at the Qualifying Facility. SPS shall credit
Customer with an amount determined in accordance with SPS's avoided costs
approved by the Public Utility Commission of Texas. The cost of metering
required for the Customer's interconnection with a Qualifying Facility shall
be borne by the Customer.

         At its sole expense, Customer shall obtain all permits and licenses,
and comply with all fees, rules, regulations, ordinances, inspections, and
other requirements relating to the interconnection of its system to a
Qualifying Facility that may be imposed by any federal, state, county, city,
municipal, or other governmental agency.

                                  ARTICLE VI.

         RATES

         Customer shall pay SPS for electric power and energy delivered by SPS
to Customer at the rate and on the terms and conditions set forth in its
Wholesale Full Requirements Rate Schedule on file with the Federal Energy
Regulatory Commission, a copy of which is attached as Exhibit B. The sum of
the monthly billing demands for

                                        8

<PAGE>

Customer in any calendar year starting with the first whole calendar year of
service, shall not be less than the amount shown in Column (2) of Exhibit C
(Minimum Calendar Year Billing Demand). If in any calendar year, Customer has
not paid for at least the Minimum Calendar Year Billing Demand, then SPS will
bill Customer for the difference between the Minimum Calendar Year Billing
Demand and the billing demand actually paid. Customer will pay the additional
amount billed subject to Article IX, provided, however, that if the additional
amount billed is in excess of $25,000, Customer may, at its option, spread
payment of the additional amount with interest calculated using the same rate
of interest provided in Article IX over a period not to exceed twelve months,
with monthly installments of no less than $25,000.

                                  ARTICLE VII.

         EXCEPTIONS TO MINIMUM DEMAND BILLING UNITS

         Customer agrees to use its best efforts, including diligent pursuit
of all necessary regulatory approvals and construction of any required
transmission facilities, to transfer to SPS all of Customer's load now served
from Customer's transmission level substations. This load now represents
approximately eighty five (85) megawatts of peak demand. In consideration for
Customer's agreement to use its best efforts to transfer all transmission
level substations to SPS, the obligation of Customer to pay for the Minimum
Calendar Year Billing Demand shall not begin if events beyond the control of
Customer, including, without limitation, inability to obtain regulatory
approvals, prevent Customer from completing the transmission facilities
necessary to shift enough of Customer's load from ERCOT to SPS to avoid the
application of Minimum Calendar Year Demand billing unit charges. It is
understood, that if at any time the Customer's actual billing demand equals or
exceeds the Minimum Calendar Year Billing Demand, this exception shall
terminate.

         The Minimum Calendar Year Billing Demand also shall not apply unless
and until SPS has placed in service the transmission

                                        9
<PAGE>

interconnections described in Article I of this Agreement.

                                 ARTICLE VIII.

         CONSERVATION AND LOAD MANAGEMENT MEASURES

         To the extent SPS implements time-of-use pricing or load management
programs for other SPS full requirements wholesale customers, SPS will offer
to Customer the same rates and programs under the same terms and conditions
applicable to the other full requirements wholesale customers. Furthermore,
SPS and Customer shall cooperate in developing and implementing such other
conservation and load management measures as may be practicable and mutually
beneficial.

                                  ARTICLE IX.

         PAYMENT OF BILLS

         SPS shall bill Customer monthly for electric power and energy at
supplied during the billing cycle, and Customer shall make payment at the main
office of SPS in Amarillo, Texas, in accordance with the terms provided on
Exhibit B. In case a portion of any bill is in dispute, the undisputed portion
shall be paid by its due date. After the dispute is resolved, if Customer is
found to owe all or a portion of the disputed amount, Customer shall promptly
pay SPS the amount found owing, together with interest at the lesser of one
and one-half percent per month or the base rate announced by Bank-One N.A. as
of the last business day of the month in which the bill was originally due. If
Bank-One, N.A. (or any substitute index bank) no longer announces a base rate
or ceases to exist, SPS may designate a new index bank by notifying Custom&r
of the selection and the designation shall be effective as of the date the
notice is delivered. A substitute index bank must be a national banking
association that has capital and undivided profits of at least $100 million
and is located in a metropolitan area of the United States of America that has
a population greater than 500,000. All statements, billings and payments shall
be subject to correction of any errors, except meter errors, for two (2) years
after rendition.

                                        10
<PAGE>

                                   ARTICLE X.

         TERMINATION OF AGREEMENT FOR BREACH

         Should either Party violate any material provision of this Agreement,
the other Party may terminate this Agreement by giving written notice that
this Agreement will terminate in thirty (30) days unless the defaulting Party
commences remedying the violation in that time and thereafter diligently
pursues the cure of the violation. Any other remedy or remedies available
under the law for any violation of the terms of this Agreement shall not be
limited in any way because of this provision or the exercise of the right
conferred in this provision.

                                  ARTICLE XI.

         ACCESS

         Customer shall provide, at no cost to SPS, a suitable place
(including means of support) on and access to Customer's property for SPS to
install, maintain, operate, repair, replace, and remove all equipment and
facilities that SPS reasonably deems necessary to perform its obligations
under this Agreement. Customer shall use reasonable diligence to protect all
SPS equipment located on Customer' s property.

                                  ARTICLE XII.

         FORCE MAJEURE

         A Party shall not be in breach because of a failure to perform (other
than a failure to pay when due), if the failure is caused by force majeure.
Force majeure is something beyond a Party's control, and includes, but is not
limited to, acts of God, governmental acts (whether or not within the power of
the government or governmental agency), acts of the public enemy, floods,
epidemics, quarantine restrictions, strikes, labor slowdowns, labor troubles,
freight embargoes, and breakdowns or damages to equipment (including emergency
outages of equipment or facilities used for making repairs to avoid breakdown,
damage, or imminent danger). A Party claiming force majeure shall promptly

                                        11

<PAGE>

notify the other of the occurrence of the event of force majeure, and shall
exercise reasonable business efforts to remove the agent of force majeure.
Nothing in this article shall require a Party to settle or resolve any labor
dispute if it deems the settlement to be contrary to its best interests.

                                 ARTICLE XIII.

         LIABILITY

         Each Party shall defend, indemnify, and hold the other Party harmless
from and against any and all claims and damages for injury to or death of any
person or damage to or loss of the indemnitee's property arising out of,
relating to, or attributable, directly or indirectly, to the ownership,
operation, or maintenance of the indemnitor's electrical system. As an
indemnitor, SPS's electrical system shall not include the segments constructed
by SPS on Customer's electrical system pursuant to Articles XXII and XXIII.
The indemnifying obligation created by this Article shall also include the
obligation to indemnify against reasonable attorney's fees and other costs of
defense. In no event shall the indemnitor be liable to the indemnitee for
special, consequential, or incidental damages for loss of profits or revenue
or the loss of use of either, costs of replacement power or capital, or claims
of customers of the indemnitee relating to loss of power supply, or other
special, consequential, or incidental damages whatsoever.

                                   ARTICLE XIV.

         ASSIGNMENT

         Either Party may assign this Agreement with the other Party's prior
written consent, which consent shall not be unreasonably withheld. Except as
otherwise agreed in writing by the Parties, no assignment shall relieve the
assigning Party of any liability arising out of or resulting from this
Agreement. Subject to the foregoing, this Agreement shall be binding on and
inure to the benefit of the Parties and their respective successors and
assigns.

                                        12
<PAGE>

                                   ARTICLE XV

         APPROVAL

         This Agreement and any amendments to this Agreement are subject to
approval or acceptance by the Federal Energy Regulatory Commission. If the
Commission should require material modification of this Agreement prior to
acceptance, either Party may withdraw from the Agreement at that time.

                                  ARTICLE XVI.

         EFFECTIVE DATE AND TERM

         This Agreement shall become effective on the date allowed to become
effective by the Federal Energy Regulatory Commission.

         This Agreement shall remain in effect until December 31, 2013, and
year to year thereafter until cancel led by either Party, with the termination
being effective at the end of a calendar year, by giving notice of termination
at least five years prior to December 31, 2013, or any extension therefrom.

         During the period beginning January 1, 2004 and ending December 31,
2013, Customer may elect to terminate this Agreement early, effective at the
end of any calendar year, by giving SPS at least five years notice before the
proposed termination date. However, because Customer has required and SPS has
agreed to construct additional SPS transmission facilities to make the sales
of power and energy contemplated herein, Customer agrees upon early
termination to make additional payments in support of such transmission
investment in accordance with the schedule shown in Column (4) of Exhibit C.

                                 ARTICLE XVII.

         CONVERSION TO PARTIAL REQUIREMENTS SERVICE

         In the event that Customer elects to convert to partial requirements
service under this Article, such partial requirements service shall be
provided in accordance with the terms and conditions of a separate partial
requirements agreement between the Parties that is approved or accepted for
filing by the Federal

                                        13
<PAGE>

Energy Regulatory Commission, provided that any such partial requirements
service agreement shall incorporate the minimum firm capacity provisions
contained in this Article.

         SPS and Customer shall proceed to negotiate a partial requirements
agreement upon receipt by SPS of Customer's notice to convert to partial
requirements service. Even if the Parties have not executed a partial
requirements agreement, SPS shall file, no later than one year in advance of
the effective date of Customer's conversion to partial requirements service,
complete partial requirements service rates, terms and conditions for review
and approval by the Federal Energy Regulatory Commission.

         Customer may elect to become a partial requirements customer
effective as of January 1, 2004, or at the commencement of any calendar year
thereafter, upon three years' prior notice, provided that Customer commits to
purchase firm capacity during the first two years that Customer is a partial
requirements customer at a demand level equal to or greater than the level
shown in Column (3) of Exhibit C for the corresponding years. If Customer's
commitment to purchase firm capacity is less than a demand level equal to or
greater than the level shown in Column (3) of Exhibit C for such years, but is
more than eighty percent (80%) of same, Customer must provide four years'
prior notice. If Customer's commitment to purchase firm capacity is less than
eighty percent (80%) of such demand level, Customer must provide five years'
prior notice. Unless a minimum purchase is required as a result of notice of
less than five years, Customer's purchase obligation for any year shall be
determined in accordance with the partial requirements service agreement
between Customer and SPS.

         If Customer elects to become a partial requirements customer and
desires to avoid payment in support of SPS transmission investment, it shall
commit to purchase firm capacity in each calendar year through the year 2013
at a demand level not below the partial requirements class minimum firm power
commitment shown in Column (3) on Exhibit C. If Customer elects to become a
partial requirements customer and commits to purchase firm capacity in a

                                        14
<PAGE>

calendar year at a demand level below the partial requirements class minimum
firm power commitment shown in Column (3) on Exhibit C, then Customer shall
pay a payment equal to the amount of demand below the partial requirements
class minimum firm power commitment times the payment amount shown in Column
(5) of Exhibit C for the respective year the purchased firm power is below the
partial requirements class minimum firm power commitment. Upon payment, the
partial requirements class minimum firm power commitment for subsequent years
as shown in Column (3) of Exhibit C shall be reduced by the amount of demand
for which a payment has been made.

                                 ARTICLE XVIII.

         MODIFICATIONS

         The Parties may modify or amend this Agreement only by signing a
written amendment. However, nothing contained herein shall be construed as
affecting in any way (a) the right of the Party furnishing or causing to be
furnished service under this Agreement to unilaterally make application to the
Federal Energy Regulatory Commission or other governmental body having
jurisdiction for a change in rates and charges under Section 205 of the
Federal Power Act, or successor statute, and pursuant to the Commission's
Rules and Regulations promulgated thereunder, and (b) the right of Customer to
protest, object to or intervene concerning any such application by SPS or to
make complaint before any governmental body having jurisdiction or petition
for an investigation under Section 206 of the Federal Power Act, or successor
statute, concerning rates and charges, classification or service, or any
provision, term, rule, regulation, condition or contract relating thereto.

                                  ARTICLE XIX.

         GOVERNING LAW

         This Agreement shall be governed by the laws of the State of Texas
excluding conflicts of laws provisions, and is performable in Potter County,
Texas.

                                        15
<PAGE>

                                  ARTICLE XX.

         CUMULATIVE REMEDIES

         Pursuit by either Party of any remedy available for default or breach
of this Agreement shall not constitute a forfeiture or waiver of any amount
due by the defaulting Party or of any damages occurring by reason of the
violation of any of the terms, provisions, or conditions of this Agreement. No
waiver of any violation shall be deemed or construed to constitute a waiver of
any other violation or breach of any of the terms, provisions, or conditions
of this Agreement. Forbearance to enforce one or more of the remedies
available on an event of default or breach shall not constitute a waiver of
that or any subsequent default or breach.

                                  ARTICLE XXI.

         NOTICE

         Any notice to be given by the Parties shall be in writing and shall
be sufficient if delivered in person, sent by U.S. mail, postage prepaid,
other delivery services, or communicated electronically to the following
addresses:

                                        Southwestern Public Service Company
                                        Vice President Marketing
                                        601 S. Tyler (Zip 79101)
                                        P. O. Box 1261
                                        Amarillo, TX 79170

and to:

                                        Cap Rock Electric Cooperative, Inc.
                                        General Manager
                                        West Highway 80
                                        P.O. Box 700
                                        Stanton, Texas 79782

                                        16
<PAGE>

         The designation of address of either Party may be changed at any time
by notice to the other Party.

                                 ARTICLE XXII.

         ADDITIONAL CUSTOMER FACILITIES

         SPS understands that additional facilities are necessary on
Customer's system to enable SPS to sell and deliver electric power and energy
to Customer. Upon request by Customer, SPS or its designee shall assist
Customer in the acquisition, construction and operation of these additional
facilities. The assistance requested may include financing arrangements,
design, construction, operation and maintenance. Customer agrees that it will
repay to SPS the costs incurred in providing the assistance upon the terms and
over the period as may be mutually agreed. Any such arrangements shall be
pursuant to separately negotiated written agreements.

                                 ARTICLE XXIII.

         LEASE OF FACILITIES

         SPS and Customer agree that it may be mutually beneficial for SPS, or
its designee, to lease certain facilities or rights to facilities of Customer.
Under such terms as are agreed, Customer may lease facilities or rights to
facilities, or assign leased facilities, to SPS or its designee, and SPS may
charge Customer for its costs, including but not limited to operations
maintenance, and lease costs. Any such arrangements shall be pursuant to
separately negotiated written agreements.

         SPS and Customer agree that it may be mutually beneficial for
Customer to lease certain facilities owned or controlled by SPS in order for
Customer to purchase capacity and energy from SPS. Any such arrangements shall
be pursuant to separately negotiated written agreements.

                                        17
<PAGE>

                                 ARTICLE XXIV.

         MUTUAL ASSISTANCE

         SPS and Customer agree to render mutual assistance as necessary to
effect the construction of transmission facilities required for the purchases
and sales of electric power and energy contemplated by this Agreement. Such
mutual assistance shall include, without limitation, support of applications
for regulatory approvals necessary for the construction of such facilities.

                                  ARTICLE XXV.

         OTHER AGREEMENTS

         During the term of this Agreement, SPS agrees not to, without the
prior written approval of Customer, seek ownership or control of Customer, or
any of Customer's assets or affiliates, or to advise, assist or encourage any
other entity seeking ownership or control of Customer, or any of Customer's
assets or affiliates without the prior written consent of Customer.

         SPS agrees during the term or at termination of this Agreement to
offer Customer at comparable prices and on comparable terms any electric
utility service that SPS may be providing to any other wholesale customer to
which Customer is similarly situated in relevant respects, and provided it is
economically beneficial to both Parties and it is technically feasible to do
so. However, SPS shall not be required by this commitment to waive or reduce
any obligations that Customer has under this Agreement.

         SPS recognizes that Customer may increase its wholesale power
requirements through mergers, acquisitions, or other joint ventures and will
cooperate with Customer, to the extent feasible and practicable, to arrange
mutually beneficial wholesale power supply arrangements for such additional
loads.

         The Parties recognize the authority of the Public Utility Commission
of Texas and its jurisdiction over certificated service areas and neither
Party will seek to acquire new certificated service areas in the existing
certificated service areas of the other Party without the prior written
agreement of the other Party.

                                        18
<PAGE>

                                 ARTICLE XXVI.

ENTIRETY

         This Agreement contains the entire agreement of the Parties with
respect to its subject matter. No other agreement, statement, or promise made
by any Party, or by any officer, employee, or agent of any Party, that -is not
contained in this Agreement shall be binding or valid unless in writing and
signed by both Parties. Provisions of this Agreement shall be construed as a
whole according to their common meaning, and not strictly for or against
either Party.

         Duly and fully authorized representatives of the Parties have signed
and delivered this Agreement as of 3, July, 1991.

CAP ROCK ELECTRIC                           SOUTHWESTERN PUBLIC
COOPERATIVE, INC.                           SERVICE COMPANY

/s/ David W. Pruitt                         /s/ Coyt Webb
---------------------------                 ---------------------------
David W. Pruitt                             Coyt Webb
Chief Executive Officer and                 President and Chief
      General Manager                            Operating Officer

/s/ Steven E. Collier                       /s/ Gary L. Gibson
---------------------------                 ---------------------------
Steven E. Collier                           Gary L. Gibson
Director of Power Supply and                Vice President,
     Regulatory Affairs                          Marketing

                                        19
<PAGE>

                      SOUTHWESTERN PUBLIC SERVICE COMPANY
                                  EXHIBIT "A"

DELIVERY POINT NO. 1 - VEALMOOR

At a point  LOCATED IN SECTION 12, BLOCK 33, T-3-N, TAP RR CO. SURVEY, BORDEN
COUNTY, TEXAS at three phase 60 cycles, and approximately 138,000 volts up to
a maximum capacity of 100,000 KVA (Substation capacity VARIOUS KVA) Metering
point LOCATED IN SECTION 12. BLOCK 33. T-3-N. T&P RR CO. SURVEY, BORDEN
COUNTY, TEXAS at 138,000 volts.

DELIVERY POINT NO. 2 - TATE (Backup delivery point)

At a point LOCATED NEAR THE BOUNDARY OF SECTIONS 8 AND 17, BLOCK 4FL, T-1-S
T&P RR CO. SURVEY, MIDLAND COUNTY, TEXAS at three phase 60 cycles, and
approximately 138,000 volts up to a maximum capacity of * KVA (Substation
capacity VARIOUS KVA) Metering point LOCATED NEAR THE BOUNDARY OF SECTIONS 8
AND 17, BLOCK 40. T-1-S. TAP RR CO. SURVEY, MIDLAND COUNTY, TEXAS at 138,000
volts.

*There is no additional capacity for the Tate Delivery Point. However, any
portion of the Vealmoor capacity may be taken through Tate as system
conditions allow.

DELIVERY POINT NO. _________

At a point ____________________________________________________________________
_______________________________________________________________________________
at three phase 60 cycles, and approximately _____________________________ volts
up to a maximum capacity of _____________________ KVA (Substation capacity
_____________________ KVA) Metering point _____________________________________
_______________________________________________________________________________
at _________________________ volts.

DELIVERY POINT NO. _________

At a point ____________________________________________________________________
_______________________________________________________________________________
at three phase 60 cycles, and approximately _____________________________ volts
up to a maximum capacity of _____________________ KVA (Substation capacity
_____________________ KVA) Metering point _____________________________________
_______________________________________________________________________________
at _________________________ volts.

DELIVERY POINT NO. _________

At a point ____________________________________________________________________
_______________________________________________________________________________
at three phase 60 cycles, and approximately _____________________________ volts
up to a maximum capacity of _____________________ KVA (Substation capacity
_____________________ KVA) Metering point _____________________________________
_______________________________________________________________________________
at _________________________ volts.

<PAGE>

                                    EXHIBIT B

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                       WHOLESALE FULL REQUIREMENTS SERVICE

                                  RATE SCHEDULE

AVAILABILITY: Available in the territory in which SPS operates, to full
         requirements Wholesale Customers for resale and distribution. Service
         under this rate schedule is subject to the terms and conditions
         specified in the contract for electric service in effect between the
         Parties as of the effective date of this rate schedule.

CHARACTER OF SERVICE: Service under this rate schedule shall be firm, and shall
         be 3 phase, 60 hertz electric energy at the available standard
         transmission voltage, 69 kV or above.

MONTHLY RATE:
         Customer Charge:          $178.00 per delivery point and

         Demand Charge:            $6.00 per kW for all kW of billing demand and

         Energy Charge:            0.34 cents per kWh for all energy used.

MEASUREMENT OF DEMAND: The measured kW demand on transmission delivery points
         shall be shall be the maximum thirty (30) minute period of Customer use
         during the month at each delivery point.

         The measured kW demand on distribution delivery points (service voltage
         below 69 kV) shall equal 1.074 times the maximum thirty (30) minute
         period of use during the month at each such delivery point.

DETERMINATION OF BILLING DEMAND: The billing demand for Customer shall be the
         sum of the non-coincident measured demands from all delivery points,
         but not less than 65 percent of the highest sum of the non-coincident
         measured demands established in the preceding eleven months.

DETERMINATION OF ENERGY FOR DISTRIBUTION POINTS OF DELIVERY: The kWh use for
         billing purposes for all distribution system points of delivery
         (service voltage below 69 kV) shall equal 1.032 times the measured kWh
         delivery at each such delivery point.

FUEL COST ADJUSTMENT: The above energy charges will be increased per kWh of
         sales equal to the estimated fuel cost per kWh of sales in the current
         month and adjusted for the preceding month's estimate error.  The
         energy charge adjustment shall be calculated in compliance with the
         formula and conditions set forth in the Wholesale Fuel Cost Adjustment
         Clause contained in Attachment 1 to this Rate Schedule. Base period
         fuel cost per kWh of net generation is equal to zero cents.

                                        -1-
<PAGE>

TAX ADJUSTMENT: Billings under this schedule may be increased by an amount
         equal to the sum of the taxes payable under federal, state and local
         sales tax acts, and of all additional taxes, fees or charges,
         (exclusive of ad valorem, state and federal income taxes) payable by
         the utility and levied or assessed by any governmental authority on the
         public utility services rendered, or on the right or privilege of
         rendering the service, or on any object or event incidental to the
         rendition of service as the result of any new or amended laws after
         January 1, 1990.

MINIMUM BILL: The customer charge and the demand charge for the
         month.

PAYMENT: SPS shall bill the Customer monthly for electric power and energy
         supplied during the previous billing cycle, and the Customer shall make
         payment at the main office of SPS in Amarillo, Texas, or by wire
         transfer, within fifteen (15) days after the bill is mailed or
         otherwise transmitted to Customer.

         Nothing contained herein shall be construed as affecting in any way the
         right of the party furnishing service under this rate schedule to
         unilaterally make application to the Federal Energy Regulatory
         Commission for a change in rates under Section 205 of the Federal Power
         Act and pursuant to the Commission's Rules and Regulations promulgated
         thereunder.

                                        -2-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 1

                      WHOLESALE FUEL COST ADJUSTMENT CLAUSE

1.       The charges for actual wholesale service rendered during the
         current billing period shall be increased or decreased by an
         adjustment amount, per kilowatt-hour of sales (to the nearest
         0.0001c), equal to the difference between the ESTIMATED fuel
         cost (eF) per kilowatt-hour of ESTIMATED sales (eS) in the
         current, or billing, period (m) and the base period (b), as
         adjusted to allow for wholesale losses (L), with the total
         charges adjusted by a dollar amount to correct for prior
         wholesale over or under collections:

                  Adjustment Factor = eFm - eFb
                                      ---   ---   (L)
                                      eSm   eSb

2.       Fuel costs (F) shall be the cost of:

                  (i)      Fossil and nuclear fuel consumed in Company's own
                           plants, and Company's share of fossil and nuclear
                           fuel consumed in jointly owned or leased plants.

                  (ii)     PLUS, the actual identifiable fossil and nuclear fuel
                           costs associated with energy purchased for reasons
                           other than identified in (iii) below. INCLUDED
                           therein shall be the portion of the cost of purchases
                           from Qualifying Facilities at or below Company's
                           avoided variable energy cost.

                  (iii)    PLUS, the net energy cost of energy purchases,
                           exclusive of capacity or demand charges (irrespective
                           of the designation assigned to such charges), when
                           such energy is purchased on an economic dispatch
                           basis. INCLUDED therein may be such costs 85:

                           (1)      charges incurred for economy energy
                                    purchases and

                           (2)      charges incurred as a result of scheduled
                                    outages,

                           all such kinds of energy being purchased by the
                           Company to substitute for its own higher cost energy.

                  (iv)     LESS, the cost of fossil and nuclear fuel recovered
                           through inter-system sales, INCLUDING the fuel costs
                           recovered from economy energy sales and other energy
                           sold on an economic dispatch basis.

3.       Sales (S) shall be equated to:

         (i)      the sum, measured at the bus-bar or interconnection point, of
                  (1) generation, (2) purchases, and (3) interchange-in,

                                        -1-
<PAGE>

         (ii)     LESS (1) inter-system sales, as referred to in 2.(iv)
                  above, and (2) inter-system losses.

4.       "L", the adjustment for wholesale losses, determined at the
         wholesale delivery points, shall be equal to:

         1.039 =                  1
                              ----------
                              1 - 3.754%

5.       The current month adjustment for prior wholesale over or under
         collections shall be calculated as:

                  (i)      the first prior month's (p) ACTUAL fuel costs (aF)
                           DIVIDED by ACTUAL sales (aS),

                  (ii)     MINUS that month's (p) ESTIMATED fuel costs (eF)
                           DIVIDED by ESTIMATED sales (eS),

                  (iii)    TIMES the wholesale loss adjustment (L),

                  (iv)     TIMES actual wholesale sales (W) in that month (p)
                           for each customer.

                           Adjustment Amount = aFp - eFp
                                               ---   ---   (L) (Wp)
                                               aSp   eSp

                           The adjustment amount shall be debited or credited to
                           the current month's billing.

6.       (i)      The fuel cost adjustment factor calculation shall NOT include:

                  (1) the net energy cost of electric energy purchased from
                      Celanese Corporation and,

                  (2) the kilowatt-hours generated at the Celanese Corporation
                      chemical plant, not to exceed the amount of electric
                      energy consumed at that plant.

         (ii)     The fuel cost adjustment factor calculation SHALL include
                  both the net energy cost of energy purchased from Celanese,
                  and the kWh generated at its plant, for any amount of energy
                  which does exceed the amount consumed at that plant.

                                        -2-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 2

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                           WESTERN SYSTEMS POWER POOL
                    EXPERIMENTAL SALES BENEFITS CREDIT RIDER

         To credit seventy-five percent of the benefits derived from
transactions under the Western Systems Power Pool (WSPP) Experiment, the total
billings for wholesale requirements service rendered during each billing month
shall be decreased by a dollar amount calculated as follows using actual data
from the month just prior to the current billing month.

         WSPP Credit = .75 (B-A) * L * Wc
                       ---------
                           S

Where:

         B = the actual benefits from WSPP transactions for the prior month
             defined as WSPP sales revenues less WSPP sales fuel cost, variable
             supervision and engineering maintenance expense (account 510) of
             .10 mills/kWh, variable boiler plant maintenance expense (account
             512) of .35 mills/kWh, and variable electric plant expense (account
             513) of .25 mills/kWh;

         S = the total actual applicable Sales for the prior month is defined as
             the sum of generation, purchases, and interchange-in less inter-
             system sales, with losses, and energy generated at the Celanese
             Corporation chemical plant.

         A = the actual out-of-pocket administrative expenses incurred in the
             prior month because of Southwestern's participation in the WSPP
             Experiment. This expense shall include applicable filing fees,
             outside services fees and direct expenses paid to the WSPP for data
             processing, interconnection fees, report preparation, etc. If
             administrative expenses exceed the benefits of sales in- the month,
             no credit will be given and expenses above benefits will be accrued
             and applied in subsequent months to preclude application of
             negative credits.

         L = the loss adjustment factor for wholesale level losses equal to
             1.039; and

        Wc = the wholesale requirements customer's total kilowatt- hours of
             purchases for the prior month.

                                        -1-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 3

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                               COORDINATION SALES
                              BENEFITS CREDIT RIDER

         To credit seventy-five percent of the benefits derived
from coordination transactions, the total billings for wholesale requirements
service rendered during each billing month shall be decreased by a dollar
amount calculated as follows using actual data from the month just prior to
the current billing month.

         Credit =             .75 (B) * L * Wc
                              -------
                                 S
Where:

         B = the actual benefits from coordination transactions for the prior
             month defined as coordination sales revenues less coordination
             sales fuel cost and variable supervision and engineering
             maintenance expense of .7 mills/kWh;

         S = the total actual applicable Sales for the prior month is defined
             as the sum of generation, purchases, and interchange-in less
             inter-system sales, with losses, and energy generated at the
             Celanese Corporation chemical plant.

         L = the loss adjustment factor for wholesale level losses equal to
             1.039; and

         Wc = the wholesale requirements customer's total kilowatt- hours of
              purchases for the prior month.

                                        -1-
<PAGE>

<TABLE>
<CAPTION>
                                                     EXHIBIT C

                                             MINIMUM DEMAND AND EARLY
                                                TERMINATION PAYMENT

        (1)                  (2)                    (3)                    (4)                     (5)
                         FRC Minimum                                      Early                    PRC
                          Calendar              PRC Minimum             Contract               Sub-Minimum
                        Year Billing            Firm Power            Termination              Commitment
     Calendar              Demand               Commitment               Payment                 Payment
       Year                 (kW)                   (kW)                    ($)                   ($/kW)
------------------------------------------------------------------------------------------------------------
<S>                     <C>                     <C>                   <C>                      <C>
       1994                530,000                   -                      -                       -
       1995                636,000                   -                      -                       -
       1996                743,000                   -                      -                       -
       1997                743,000                   -                      -                       -
       1998                743,000                   -                      -                       -
       1999                743,000                   -                      -                       -
       2000                743,000                   -                      -                       -
       2001                743,000                   -                      -                       -
       2002                743,000                   -                      -                       -
       2003                743,000                   -                      -                       -
       2004                743,000                63,000              10,000,000                 158.73
       2005                743,000                59,000               9,000,000                 152.54
       2006                743,000                56,000               8,000,000                 142.86
       2007                743,000                52,000               7,000,000                 134.61
       2008                743,000                49,000               6,000,000                 122.45
       2009                743,000                45,000               5,000,000                 111.11
       2010                743,000                42,000               4,000,000                  95.24
       2011                743,000                38,000               3,000,000                  78.95
       2012                743,000                35,000               2,000,000                  57.14
       2013                743,000                31,000               1,000,000                  32.26
       2014                  -0-                    -0-                    -0-                     -0-
------------------------------------------------------------------------------------------------------------
</TABLE>
(1)      Col. (1) represents the calendar year of the Agreement
         beginning with the first whole calendar year of service, 1994.

(2)      Col. (2) represents Customer's minimum calendar year total
         billing demand under full requirements class (FRC) service.

(3)      Col. (3) represents the minimum calendar year firm power
         commitment Customer must contract for if it converts to
         partial requirements class (PRC) service after year ten of the
         Agreement.

(4)      Col. (4) represents the amount Customer must pay SPS if
         Customer terminates the Agreement after year ten and does not
         convert to partial requirements class service.

(5)      Col. (5) represents the amount per kW Customer must pay SPS
         for the amount of Customer's firm power purchase below the PRC
         Minimum Firm Power commitment in Col. (3).

<PAGE>

                                 FIRST AMENDMENT
                                       TO
                       SOUTHWESTERN PUBLIC SERVICE COMPANY
                                  AGREEMENT FOR
               WHOLESALE FULL REQUIREMENTS ELECTRIC POWER SERVICE
                                       TO
                       CAP ROCK ELECTRIC COOPERATIVE, INC.

The Parties to this first amendment dated January 22, 1992 ("Amendment") to
their July 3, 1991 Wholesale Full Requirements Electric Power Service
agreement ("Agreement") are Southwestern Public Service Company, a New Mexico
corporation, and Cap Rock Electric Cooperative, Inc., a Texas corporation.

The Parties agree to amend the Agreement as follows:

         1.       Delete the first and second complete paragraphs on page
                  3.  The first paragraph begins with the phrase "Customer
                  agrees that, ..." and the second paragraph begins with
                  the phrase "SPS compensation for energy losses...

         2.       Delete the phrase "to continue" from the first sentence
                  of the last paragraph on page 3.

         3.       Add the phrase "by the Parties and by applicable
                  regulatory authority." to the end of the second sentence
                  of the last paragraph on page 3 after the phrase "as may
                  be mutually acceptable".

         4.       Delete the word "at" which is the first word on the
                  second line of Article IX PAYMENT OF BILLS on page 10.

         5.       Replace Exhibit B and its Attachments 1, 2 and 3 in their
                  entirety with the Exhibit B and its Attachments 1 and 2 which
                  are attached to this Amendment.

Duly and fully authorized representatives of the Parties have signed and
delivered this Amendment.

CAP ROCK ELECTRIC                                  SOUTHWESTERN PUBLIC
COOPERATIVE, INC.                                  SERVICE COMPANY

/s/ David W. Pruitt                                /s/ Gary L. Gibson
---------------------------                        ---------------------------
David W. Pruitt                                    Gary L. Gibson
Chief Executive Officer and                        Vice President, Marketing
General Manager

<PAGE>

                                    EXHIBIT B

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                       WHOLESALE FULL REQUIREMENTS SERVICE

                                  RATE SCHEDULE

AVAILABILITY: Available in the territory in which SPS operates, to full
         requirements Wholesale Customers for resale and distribution. Service
         under this rate schedule is subject to the terms and conditions
         specified in the contract for electric service in effect between the
         Parties as of the effective date of this rate schedule.

CHARACTER OF SERVICE: Service under this rate schedule shall be firm, and shall
         be 3 phase, 60 hertz electric energy at the available standard
         transmission voltage, 69 kV or above.

MONTHLY RATE:
         Customer Charge:          $178.00 per delivery point and

         Demand Charge:            $6.00 per kW for all kW of billing demand and

         Energy Charge:            0.34 cents per kWh for all energy used.

MEASUREMENT OF DEMAND: The measured kW demand on transmission delivery points
         shall be the maximum thirty (30) minute period of Customer use during
         the month at each delivery point.

         The measured kW demand on distribution delivery points (service voltage
         below 69 kV) shall equal 1.074 times the maximum thirty (30) minute
         period of use during the month at each such delivery point.

DETERMINATION OF BILLING DEMAND: The billing demand for Customer shall be the
         sum of the non-coincident measured demands from all delivery points,
         but not less than 65 percent of the highest sum of the non-coincident
         measured demands established in the preceding eleven months.

DETERMINATION OF ENERGY FOR DISTRIBUTION POINTS OF DELIVERY: The kWh use for
         billing purposes for all distribution system points of delivery
         (service voltage below 69 kV) shall equal 1.032 times the measured kWh
         delivery at each such delivery point.

FUEL COST ADJUSTMENT: The above energy charges will be increased per kWh of
         sales equal to the estimated fuel cost per kWh of sales in the current
         month and adjusted for the preceding month's estimate error.  The
         energy charge adjustment shall be calculated in compliance with the
         formula and conditions set forth in the Wholesale Fuel Cost Adjustment
         Clause contained in Attachment l to this Rate Schedule. Base period
         fuel cost per kWh of net generation is equal to zero cents.

                                        -1-
<PAGE>

TAX ADJUSTMENT: Billings under this schedule may be increased by an amount
         equal to the sum of the taxes payable under federal, state and local
         sales tax acts, and of all additional taxes, fees or charges,
         (exclusive of ad valorem, state and federal income taxes) payable by
         the utility and levied or assessed by any governmental authority on the
         public utility services rendered, or on the right or privilege of
         .rendering the service, or on any object or event incidental to the
         rendition of service as the result of any new or amended laws after
         January 1, 1990.

MINIMUM BILL: The customer charge and the demand charge for the month.

PAYMENT: SPS shall bill the Customer monthly for electric power and energy
         supplied during the previous billing cycle, and the Customer shall make
         payment at the main office of SPS in Amarillo, Texas, or by wire
         transfer, within fifteen (15) days after the bill is mailed or
         otherwise transmitted to Customer.

         Nothing contained herein shall be construed as affecting in any way the
         right of the party furnishing service under this rate schedule to
         unilaterally make application to the Federal Energy Regulatory
         Commission for a change in rates under Section 205 of the Federal Power
         Act and pursuant to the Commission's Rules and Regulations promulgated
         thereunder.

                                        -2-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 1

                      WHOLESALE FUEL COST ADJUSTMENT CLAUSE

1.       The charges for actual wholesale service rendered during the
         current billing period shall be increased or decreased by an
         adjustment amount, per kilowatt-hour of sales (to the nearest
         0.0001c), equal to the difference between the ESTIMATED fuel
         cost (eF) per kilowatt-hour of ESTIMATED sales (eS) in the
         current, or billing, period (m) and the base period (b), as
         adjusted to allow for wholesale losses (L), with the total
         charges adjusted by a dollar amount to correct for prior
         wholesale over or under collections:

                  Adjustment Factor = eFm - eFb
                                      ---   ---  (L)
                                      eSm   eSb

2.       Fuel costs (F) shall be the cost of:

               (i)         Fossil and nuclear fuel consumed in Company's own
                           plants, and Company's share of fossil and nuclear
                           fuel consumed in jointly owned or leased plants.

              (ii)         PLUS, the actual identifiable fossil and nuclear fuel
                           costs associated with energy purchased for reasons
                           other than identified in (iii) below. INCLUDED
                           therein shall be the portion of the cost of purchases
                           from Qualifying Facilities below Company's avoided
                           variable energy cost.

             (iii)         PLUS, the net energy cost of energy purchases,
                           exclusive of capacity or demand charges (irrespective
                           of the designation assigned to such charges), when
                           such energy is purchased on an economic dispatch
                           basis. INCLUDED therein may be such costs as:

                           (1) charges incurred for economy energy purchases and

                           (2) charges incurred as a result of scheduled
                               outages,

                           all such kinds of energy being purchased by the
                           Company to substitute for its own higher cost energy.

              (iv)         LESS, the cost of fossil and nuclear fuel recovered
                           through inter-system sales, INCLUDING the fuel costs
                           recovered from economy energy sales and other energy
                           sold on an economic dispatch basis.

3.       Sales (S) shall be equated to:

           (i)      the sum, measured at the bus-bar or interconnection point,
                    of (1) generation, (2) purchases, and (3) interchange-in,

                                        -1-
<PAGE>

           (ii)     LESS (1) inter-system sales, as referred to in 2.(iv) above,
                    and (2) inter-system losses.

4.       "L", the adjustment for wholesale losses, determined at the
         wholesale delivery points, shall be equal to:

                                  1
                    1.039 =  ----------
                             1 - 3.754%

5.       The current month adjustment for prior wholesale over or under
         collections shall be calculated as:

               (i)         the first prior month's (p) ACTUAL fuel costs (aF)
                           DIVIDED by ACTUAL sales (aS),

              (ii)         MINUS that month's (p) ESTIMATED fuel costs (eF)
                           DIVIDED by ESTIMATED sales (eS),

             (iii)         TIMES the wholesale loss adjustment (L),

              (iv)         TIMES actual wholesale sales (W) in that month (p)
                           for each customer.

                           Adjustment Amount = aFp - eFp
                                               ---   ---  (L) (Wp)
                                               aSp   eSp

                           The adjustment amount shall be debited or credited to
                           the current month's billing.

6.       (i) The fuel cost adjustment factor calculation shall NOT include:

             (1)      the net energy cost of electric energy purchased from
                      Celanese Corporation and,

             (2)      the kilowatt-hours generated at the Celanese Corporation
                      chemical plant, not to exceed the amount of electric
                      energy consumed at that plant.

        (ii) The fuel cost adjustment factor calculation SHALL include both the
             net energy cost of energy purchased from Celanese, and the kWh
             generated at its plant, for any amount of energy which does exceed
             the amount consumed at that plant.

                                        -2-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 2

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                               COORDINATION SALES
                              BENEFITS CREDIT RIDER

         To credit seventy-five percent of the benefits derived from
coordination transactions, the total billings for wholesale requirements service
rendered during each billing month shall be decreased by a dollar amount
calculated as follows using actual data from the month just prior to the current
billing month.

         Credit =          .75 (B) * L * Wc
                           -------
                             S
Where:

      B = the actual benefits from coordination transactions for the prior
          month defined as coordination sales revenues less coordination sales
          fuel cost and variable supervision and engineering maintenance expense
          of .7 mills/kWh;

      S = the total actual applicable Sales for the prior month is defined as
          the sum of generation, purchases, and interchange-in less inter-system
          sales, with losses, and energy generated at the Celanese Corporation
          chemical plant.

      L = the loss adjustment factor for wholesale level losses equal to
          1.039; and

      Wc = the wholesale requirements customer's total kilowatt- hours of
           purchases for the prior month.

                                        -1-
<PAGE>

                  SOUTHWESTERN PUBLIC SERVICE COMPANY
                  P. O. BOX 1261  -  AMARILLO, TEXAS 79170  -  806/378-2121

                                                     January 28, 1992

Mr. David W. Pruitt
Cap Rock Electric
P.0. Box 700
Stanton, Texas 79782

Dear David:

         Enclosed is a completed original of the First Amendment to our Electric
Power Service contract. It was filed at the FERC last week.

         Thank you for your prompt attention to this matter.

                                        Sincerely

                                        /s/ Dave Krupnick
                                        Dave Krupnick, Manager
                                        Wholesale Marketing.

db
Enclosure

<PAGE>

                                 FIRST AMENDMENT
                                       TO
                       SOUTHWESTERN PUBLIC SERVICE COMPANY
                                  AGREEMENT FOR
               WHOLESALE FULL REQUIREMENTS ELECTRIC POWER SERVICE
                                       TO
                       CAP ROCK ELECTRIC COOPERATIVE, INC.

The Parties to this first amendment dated January ____, 1992 ("Amendment") to
their July 3, 1991 Wholesale Full Requirements Electric Power Service
agreement ("Agreement") are Southwestern Public Service Company, a New Mexico
corporation, and Cap Rock Electric Cooperative, Inc., a Texas corporation.

The Parties agree to amend the Agreement as follows:

         1.       Delete the first and second complete paragraphs on page
                  3.  The first paragraph begins with the phrase "Customer
                  agrees that, and the second paragraph begins with the
                  phrase "SPS compensation for energy losses..."

         2.       Delete the phrase "to continue" from the first sentence
                  of the last paragraph on page 3.

         3.       Add the phrase "by the Parties and by applicable
                  regulatory authority." to the end of the second sentence
                  of the last paragraph on page 3 after the phrase "as may
                  be mutually acceptable".

         4.       Delete the word "at" which is the first word on the
                  second line of Article IX PAYMENT OF BILLS on page 10.

         5.       Replace Exhibit B and its Attachments 1, 2 and 3 in their
                  entirety with the Exhibit B and its Attachments 1 and 2 which
                  are attached to this Amendment.

Duly and fully authorized representatives of the Parties have signed and
delivered this Amendment.

CAP ROCK ELECTRIC                                    SOUTHWESTERN PUBLIC
COOPERATIVE, INC.                                    SERVICE COMPANY

/s/ David W. Pruitt                                  /s/ Gary L. Gibson
---------------------------                          ---------------------------
David W. Pruitt                                      Gary L. Gibson
Chief Executive Officer and                          Vice President, Marketing
General Manager

<PAGE>

                                    EXHIBIT B

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                       WHOLESALE FULL REQUIREMENTS SERVICE

                                  RATE SCHEDULE

AVAILABILITY: Available in the territory in which SPS operates, to full
         requirements Wholesale Customers for resale and distribution. Service
         under this rate schedule is subject to the terms and conditions
         specified in the contract for electric service in effect between the
         Parties as of the effective date of this rate schedule.

CHARACTER OF SERVICE: Service under this rate schedule shall be firm, and shall
         be 3 phase, 60 hertz electric energy at the available standard
         transmission voltage, 69 kV or above.

MONTHLY RATE:
         Customer Charge:         $178.00 per delivery point and

         Demand Charge:           $6.00 per kW for all kW of billing demand and

         Energy Charge:           0.34 cents per kWh for all energy used.

MEASUREMENT OF DEMAND: The measured kW demand on transmission delivery points
         shall be the maximum thirty (30) minute period of Customer use during
         the month at each delivery point.

         The measured kW demand on distribution delivery points (service voltage
         below 69 kV) shall equal 1.074 times the maximum thirty (30) minute
         period of use during the month at each such delivery point.

DETERMINATION OF BILLING DEMAND: The billing demand for Customer shall be the
         sum of the non-coincident measured demands from all delivery points,
         but not less than 65 percent of the highest sum of the non-coincident
         measured demands established in the preceding eleven months.

DETERMINATION OF ENERGY FOR DISTRIBUTION POINTS OK DELIVERY: The kWh use for
         billing purposes for all distributIon system points of delivery
         (service voltage below 69 kV) shall equal 1.032 times the measured kWh
         delivery at each such delivery point.

FUEL COST ADJUSTMENT: The above energy charges will be increased per kWh of
         sales equal to the estimated fuel cost per kWh of sales in the current
         month and adjusted for the preceding month's estimate error. The energy
         charge adjustment shall be calculated in compliance with the formula
         and conditions set forth in the Wholesale Fuel Cost Adjustment Clause
         contained inAttachment l to this Rate Schedule. Base period fuel costs
         per kWh of net generation is equal to zero cents.

                                        -1-
<PAGE>

TAX ADJUSTMENT: Billings under this schedule may be increased by an amount
         equal to the sum of the taxes payable under federal, state and local
         sales tax acts, and of all additional taxes, fees or charges,
         (exclusive of ad valorem, state and federal income taxes) payable by
         the utility and levied or assessed by any governmental authority on the
         public utility services rendered, or on the right or privilege of
         rendering the service, or on any object or event incidental to the
         rendition of service as the result of any new or amended laws after
         January 1, 1990.

MINIMUM BILL: The customer charge and the demand charge for the month.

PAYMENT: SPS shall bill the Customer monthly for electric power and energy
         supplied during the previous billing cycle, and the Customer shall make
         payment at the main office of SPS in Amarillo, Texas, or by wire
         transfer, within fifteen (15) days after the bill is mailed or
         otherwise transmitted to Customer.

         Nothing contained herein shall be construed as affecting in any way the
         right of the party furnishing service under this rate schedule to
         unilaterally make application to the Federal Energy Regulatory
         Commission for a change in rates under Section 205 of the Federal Power
         Act and pursuant to the Commission's Rules and Regulations promulgated
         thereunder.

                                        -2-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 1

                     WHOLESALE FUEL COST ADJUSTMENT CLAUSE

1.       The charges for actual wholesale service rendered during the
         current billing period shall be increased or decreased by an
         adjustment amount, per kilowatt-hour of sales (to the nearest
         0.0001c), equal to the difference between the ESTIMATED fuel
         cost (eF) per kilowatt-hour of ESTIMATED sales (eS) in the
         current, or billing, period (m) and the base period (b), as
         adjusted to allow for wholesale losses (L), with the total
         charges adjusted by a dollar amount to correct for prior
         wholesale over or under collections:

                  Adjustment Factor = eFm - eFb
                                      ---   ---   (L)
                                      eSm   eSb

2.       Fuel costs (F) shall be the cost of:

               (i)         Fossil and nuclear fuel consumed in Company's own
                           plants, and Company's share of fossil and nuclear
                           fuel consumed in jointly owned or leased plants.

              (ii)         PLUS, the actual identifiable fossil and nuclear fuel
                           costs associated with energy purchased for reasons
                           other than identified in (iii) below. INCLUDED
                           therein shall be the portion of the cost of purchases
                           from Qualifying Facilities below Company's avoided
                           variable energy cost.

               (iii)       PLUS, the net energy cost of energy purchases,
                           exclusive of capacity or demand charges (irrespective
                           of the designation assigned to such charges), when
                           such energy is purchased on an economic dispatch
                           basis. INCLUDED therein may be such costs as:

                           (1)      charges Incurred for economy energy
                                    purchases and

                           (2)      charges incurred as a result of scheduled
                                    outages,

                           all such kinds of energy being purchased by the
                           Company to substitute for its own higher cost energy.

              (iv)         LESS, the cost of fossil and nuclear fuel recovered
                           through inter-system sales, INCLUDING the fuel costs
                           recovered from economy energy sales and other energy
                           sold on an economic dispatch basis.

3.       Sales (S) shall be equated to:

           (i)      the sum, measured at the bus-bar or interconnection point,
                    of (1) generation, (2) purchases, and (3) interchange-in,

                                        -1-
<PAGE>

         (ii)       LESS (1) inter-system sales as referred to in 2. (iv) above,
                    and (2) inter-system losses.

4.       "L", the adjustment for wholesale losses, determined at the
         wholesale delivery points, shall be equal to:

                  1.039 =               1
                                    ---------
                                    1 - 3.754%

5.       The current month adjustment for prior wholesale over or under
         collections shall be calculated as:

               (i)         the first prior month's (p) ACTUAL fuel costs (aF)
                           DIVIDED by ACTUAL sales (aS),

              (ii)         MINUS that month's (p) ESTIMATED fuel costs (eF)
                           DIVIDED by ESTIMATED sales (eS),

             (iii)         TIMES the wholesale loss adjustment (L),

              (iv)         TIMES actual wholesale sales (W) in that month (p)
                           for each customer.

                           Adjustment Amount = aFp - eFp  (L) (Wp)
                                               ---   ---
                                               aSp   eSp

                           The adjustment amount shall be debited or credited to
                           the current month's billing.

6.       (i)      The fuel cost adjustment factor calculation shall NOT
                  include:

                  (1)      the net energy cost of electric energy purchased
                           from Celanese Corporation and,

                  (2)      the kilowatt-hours generated at the Celanese
                           Corporation chemical plant, not to exceed the amount
                           of electric -energy consumed at that plant.

                  (ii)     The fuel cost adjustment factor calculation SHALL
                           include both the net energy cost of energy purchased
                           from Celanese, and the kWh generated at Its plant,
                           for any amount of energy which does exceed the amount
                           consumed at that plant.

                                        -2-
<PAGE>

                                                                   EXHIBIT B
                                                                   ATTACHMENT 2

                       SOUTHWESTERN PUBLIC SERVICE COMPANY

                               COORDINATION SALES
                              BENEFITS CREDIT RIDER

         To credit seventy-five percent of the benefits derived from
coordination transactions, the total billings for wholesale requirements
service rendered during each billing month shall be decreased by a dollar
amount calculated as follows using actual data from the month just prior to
the current billing month.

                           Credit = .75 (B) * L * Wc
                                    -------
                                       S

Where:

     B = the actual benefits from coordination transactions for the prior
         month defined as coordination sales revenues less coordination sales
         fuel cost and variable supervision and engineering maintenance expense
         of .7 mills/kWh;

     S = the total actual applicable Sales for the prior month is defined as
         the sum of generation, purchases, and interchange-in less inter-system
         sales, with losses, and energy generated at the Celanese Corporation
         chemical plant.

     L = the loss adjustment factor for wholesale level losses equal to
         1.039; and

     Wc = the wholesale requirements customer's total kilowatt- hours of
          purchases for the prior month.

                                        -1-

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