Amendment No. 1
To The
EARLY PURCHASE AND PARTICIPATION AGREEMENT
Between
Public Service Company of New Mexico
and
M-S-R Public Power Agency
Public Service Company of New Mexico (PNM) and M-S-R Public Power Agency
(M-S-R), collectively referred to as the Parties, executed the San Xxxx Unit 4
Early Purchase and Participation Agreement (EPPA) on September 26, 1983,
pursuant to which PNM conveyed to M-S-R an undivided 28.8 percent ownership
interest in San Xxxx Unit 4. Pursuant to Section 4.2.2.2 of the EPPA, the
Parties were to agree on the selection of a municipal bond underwriter to
determine an interest rate to be used in connection with the calculation of the
"levelized debt service cost" component of the Demand Charge calculation. The
purpose of this Amendment No. 1 is to establish a different source for the
needed interest rate other than a municipal bonds underwriter.
Therefore, the Parties agree as follows:
Section 1:
Section 4.2.2.2 of the EPPA is deleted in its entirety and is replaced by the
following:
"4.2.2.2 The annual levelized debt service cost of all Capital
Improvements shall be determined on the assumption that M-S-R borrows money to
pay such costs and repayment is made on a level debt service basis, without
contingency or reserve requirements, over the remaining useful life of the
Capital Improvements (or life of the plant, whichever is less) with levelized
monthly principal and interest payments. The assumed interest rate shall be that
which M-S-R would have paid had tax exempt revenue bonds been issued. Such rate
shall be taken from the "Electric Wholesale" category of the Municipal Bond
Index as published in the Wall Street Journal on the last Friday of each month
(or as may be published on another day if the last Friday is a holiday). If this
index is changed or the publication is discontinued such that it no longer
serves the purposes herein, then the Parties shall choose a replacement interest
rate source."
Section 2:
Except as otherwise provided in this Amendment No. 1, the provisions of the EPPA
shall remain in full force and effect.
IT WITNESS WHEREOF, the Parties have caused this Amendment No. 1 to be executed
as of the 16th day of December 1987.
PUBLIC SERVICE COMPANY OF NEW MEXICO
By: /s/ X. X. Xxxxxxx
-----------------------------
Its: Senior Vice President
Power Supply
-----------------------------
M-S-R PUBLIC POWER AGENCY
By: /s/ Xxxxxxx X. XxXxxxxx
-----------------------------
Its: General Manager
-----------------------------
