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I Vubk Service Company <br />of New Mexico <br />Fuels Management <br />Ahfarado Square, MS-0406 <br />Albuquerque, NM 87158 <br />FAX 505 24 1-2340 <br />November 17, 1995 <br />Bulk Pawer Services <br />Mr, Thomas N. Hansen Mi. John Van Egmond <br />Tucson Electric Power Company Century Power Company <br />Mr. Lloyd H. Hawego Mr. Douglas 0. Hunter <br />M-S-R Public Power Agency Utah Associated Municipal Power Systems <br />Mr. William T. Statton Mr. Henryk Olstowski <br />City of Farmington, New Mexico Southern California Public Power Authority <br />Mr. Edward K. Aghjayan <br />City of Anaheim, California <br />Mr. Chris Ortega <br />The Incorporated County of Los Alamos, <br />New Mexico <br />Re: Interim Invoicing Agreement for San Juan Generating Station <br />Gentlemen: <br />As you are aware from discussions between representatives of Public Service Company of <br />New Mexico (PNM) and each of your respective organizations, PNM and Tucson Electric Power <br />Company (TEP) have negotiated and executed with San Juan Coal Company (SJCC) a 1996 <br />Invoicing Agreement (Invoicing Agreement) for the San Juan Generating Station (San Juan). A copy <br />of the Invoicing Agreement is attached to this letter agreement (Attachment No. 1). <br />The Invoicing Agreement sets out certain invoicing procedures to be applied from January <br />1, 1996 through December 31, 1996, with a base price and incremental price based on currently <br />forecasted tonnage levels of coal deliveries. The Invoicing Agreement offers an opportunity for <br />benefits to San Juan participants and unit participants in the form of lower coal prices. A condition <br />for the effectiveness of the Invoicing Agreement, however, is that all San Juan participants, PNM and <br />TEP, and the unit participants, Century Power Corporation, Southern California Public Power <br />Authority, the City of Farmington, New Mexico, M-S-R Public Power Agency, the County of Los <br />Alamos, New Mexico, the City of Anaheim, California, and Utah Associated Municipal Power <br />Systems (Owners), shall have approved invoicing under the San Juan Project Operating Agreement <br />(Operating Agreement), as amended, that reflects the terms of the Invoicing Agreement.