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<span id="c14889exv10w2.htm"></span><html lang="en-US"> <HEAD> <title>Form 10-Q filed by on 2011-04-29</title> </HEAD> <BODY bgcolor="#FFFFFF"> <!-- PAGEBREAK --> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit 10.2</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">AMENDMENT AND SUPPLEMENT NO. 3 </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">TO </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">SUPPLEMENTAL AND ADDITIONAL INDENTURE OF LEASE </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">BETWEEN </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">THE NAVAJO NATION </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">AND </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARIZONA PUBLIC SERVICE COMPANY, </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">EL PASO ELECTRIC COMPANY, </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">PUBLIC SERVICE COMPANY OF NEW MEXICO, </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">AND </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">TUCSON ELECTRIC POWER COMPANY </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">Dated: March 7, 2011 </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>AMENDMENT AND SUPPLEMENT NO. 3 TO<BR> SUPPLEMENTAL AND ADDITIONAL INDENTURE OF LEASE</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Amendment and Supplement No. 3 to the Supplemental and Additional Indenture of Lease dated March 7, 2011 (this “<U>Amendment</U>”) is by and between the Navajo Nation (formerly known as The Navajo Tribe of Indians), acting through the Navajo Nation Council for and on behalf of the Navajo Nation (hereinafter referred to as the “<U>Nation</U>”), as lessor, and Arizona Public Service Company (“<U>APS</U>”), El Paso Electric Company, Public Service Company of New Mexico, Salt River Project Agricultural Improvement and Power District, and Tucson Electric Power Company (formerly known as Tucson Gas & Electric Company) (hereinafter, collectively, together with their successors and assigns, referred to as the “<U>Lessees,</U>” and each individually referred to as a “<U>Lessee</U>”). The Nation and the Lessees are hereinafter collectively referred to as the “<U>Parties</U>.” </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Parties agree as follows: </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">1</TD> <TD width="1%"> </TD> <TD><U><B>BACKGROUND</B></U>.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">1.1</TD> <TD width="1%"> </TD> <TD>APS has leased certain premises from the Nation under that certain Indenture of Lease dated December 1, 1960 between APS and the Nation, as supplemented and amended by that certain Supplemental and Additional Indenture of Lease dated July 6, 1966, between the Nation, APS, and the other Lessees, as further supplemented and amended by that certain Amendment and Supplement No. 1 to Supplemental and Additional Indenture of Lease dated April 25, 1985, between the Nation, APS and the other Lessees (the “<U>1985 Lease Supplement</U>”; and such Indenture of Lease, as supplemented and amended, the “<U>1960 Lease</U>”).</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">1.2</TD> <TD width="1%"> </TD> <TD>Lessees have leased certain premises from the Nation under that certain Supplemental and Additional Indenture of Lease dated July 6, 1966, between the Nation, Southern California Edison Company (“<U>SCE</U>”), and the Lessees, as supplemented and amended by the 1985 Lease Supplement (such Supplemental and Additional Indenture of Lease, as supplemented and amended, the “<U>1966 Lease</U>”).</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">1.3</TD> <TD width="1%"> </TD> <TD>The Parties desire to extend the respective terms of and otherwise amend the 1960 Lease and the 1966 Lease to reflect certain new terms and conditions.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">1.4</TD> <TD width="1%"> </TD> <TD>The 1960 Lease and the 1966 Lease are amended only as set forth in this Amendment. To the extent, however, that there is any conflict between the 1960 Lease and this Amendment or the 1966 Lease and this Amendment, this Amendment shall govern<B>.</B></TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">1.5</TD> <TD width="1%"> </TD> <TD>This Amendment is not intended to and does not merge the leasehold estates of the 1960 Lease and the 1966 Lease, or the rights, liabilities, or obligations (collectively, “<U>Rights</U>”) of the Parties set forth in the 1960 Lease and the 1966 Lease. Further, in no event shall the Lessees (except for APS) have any Rights under the 1960 Lease or with respect to the leasehold estate demised to APS under the 1960 Lease. Rather, except for APS, all the Lessees’ Rights are limited only to the Four Corners Project, as set forth in the 1966 Lease.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">2</TD> <TD width="1%"> </TD> <TD><U><B>DEFINITIONS</B></U>.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.1</TD> <TD width="1%"> </TD> <TD>“<U>§ 323 Grant” or “§ 323 Grants</U>” — One or more grants of rights-of-way and easements under the Act of February 5, 1948 (62 Stat. 17, 18, 25 U.S.C. §323-328), the Act of March 3, 1879 (20 Stat. 394, 5 U.S.C. § 485), as amended, and the Acts of July 9, 1832, and July 27, 1868 (4 Stat. 564, 15 Stat. 228. 25 U.S.C. §2) and such regulations promulgated thereunder, as are applicable, including 25 C.F.R. §1.2 and 25 C.F.R. Part 169.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.2</TD> <TD width="1%"> </TD> <TD>“<U>§ 323 Grant Land</U>” — Has the meaning set forth in Section 5.2.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.3</TD> <TD width="1%"> </TD> <TD>“<U>Affiliate</U>” — With respect to any Lessee hereto, any entity, including but not limited to a corporation, company, partnership, LLC/LLP or joint venture that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with such Lessee. For purposes of this definition, the term “control” (including “controlled by” and “under common control with”) shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, regardless of percentage by written contract, or otherwise.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.4</TD> <TD width="1%"> </TD> <TD>“<U>Annual Payment</U>” — Except for (i) payments owed to the Nation under the existing Settlement and Closing Agreements that the Nation has executed with each individual Lessee (ii) the payments that will be owed to the Nation under the Settlement and Closing Agreements set forth in Section 14; (iii) the negotiation premium set forth in Section 3.4; and (iv) the payment set forth in Section 4.5, the total and sole payment that shall be made by (X) APS to the Nation, in consideration for the rights set forth in the 1960 Lease, including, but not limited to, (a) all leasehold rights, (b) the Existing § 323 Grants, and (c) the Renewed § 323 Grants; and by (Y) the Lessees to the Nation, in consideration for the rights set forth in the 1966 Lease, including, but not limited to, (a) all leasehold rights, (b) the Existing § 323 Grants, and (c) the Renewed § 323 Grants.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.5</TD> <TD width="1%"> </TD> <TD>“<U>Communication Sites</U>” — The communication sites and related facilities identified within item 5 of Exhibit B.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.6</TD> <TD width="1%"> </TD> <TD>“<U>Existing § 323 Grants</U>” — The § 323 Grants set forth on Exhibit B.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.7</TD> <TD width="1%"> </TD> <TD>“<U>Four Corners Project</U>” — Has the meaning set forth in the 1966 Lease.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.8</TD> <TD width="1%"> </TD> <TD>“<U>Initial Four Corners Plant</U>” — Has the meaning set forth in the 1966 Lease.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.9</TD> <TD width="1%"> </TD> <TD>“<U>Plan</U>” — Has the meaning set forth in Section 7.1.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.10</TD> <TD width="1%"> </TD> <TD>“<U>Plant</U>” — For convenience only, and not to merge the leasehold estates under the 1960 Lease and the 1966 Lease, a reference to the Initial Four Corners Plant and the Four Corners Project, respectively.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.11</TD> <TD width="1%"> </TD> <TD>“<U>Renewed § 323 Grants</U>” — Has the meaning set forth in Section 4.2.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.12</TD> <TD width="1%"> </TD> <TD>“<U>Navajo Nation Lands</U>” — Has the meaning set forth in the 1966 Lease for the term “Reservation Lands.”</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.13</TD> <TD width="1%"> </TD> <TD>“<U>Secretary</U>” — The Secretary of the United States Department of the Interior or his or her duly authorized designee, representative, or successor.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.14</TD> <TD width="1%"> </TD> <TD>“<U>Transmission Lines</U>” — The electrical transmission lines and related facilities identified within items 3 and 4 of Exhibit B.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">3</TD> <TD width="1%"> </TD> <TD><U><B>TERM</B></U>.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">3.1</TD> <TD width="1%"> </TD> <TD>This Amendment shall become effective (the “<U>Amendment Effective Date</U>”) upon the earlier of SCE’s sale of its interest in the Four Corners Project or July 6, 2016 (the “<U>Amendment 2 Termination Date</U>,” as defined in the Amendment and Supplement No. 2 to the Supplemental and Additional Indenture of Lease, attached as Exhibit A).</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">3.2</TD> <TD width="1%"> </TD> <TD>The Navajo Nation Council Resolution approving this Amendment, and signature by the Nation’s duly authorized representative, shall be deemed to be sufficient legal approval by the Nation of this Amendment.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">3.3</TD> <TD width="1%"> </TD> <TD>The 1960 Lease and the 1966 Lease (and the Annual Payments payable thereunder) are extended to July 6, 2041, whether or not the Initial Four Corners Plant or the Four Corners Project are operating or the Renewed § 323 Grants are terminated.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">3.4</TD> <TD width="1%"> </TD> <TD>The Nation will engage in good-faith negotiations for an additional extension of both the 1960 Lease and the 1966 Lease beyond 2041, provided that such negotiations begin no later than July 2029 and conclude by July 2031. Any mutual agreement to continue the negotiations beyond July 2031, which such negotiations are not successfully completed, will extend the term of both the 1960 Lease and the 1966 Lease equally beyond July 2041, provided that (i) the negotiation extension period shall not exceed three years; and (ii) APS with respect to the 1960 Lease and the Lessees with respect to the 1966 Lease shall pay the Nation a pre-negotiated premium (above the Annual Payment) for the period the negotiations are extended.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">4</TD> <TD width="1%"> </TD> <TD><U><B>NATION’S CONSENT TO § 323 GRANTS BY SECRETARY FOR THE PLANT, TRANSMISSION LINES, AND COMMUNICATION SITES</B></U>.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.1</TD> <TD width="1%"> </TD> <TD>The Nation has previously consented to, and the Secretary has granted, the Existing § 323 Grants, and the renewal, extension or reissuance of each Existing § 323 Grant will be necessary.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.2</TD> <TD width="1%"> </TD> <TD>The Nation consents and covenants to consent now, and for the terms of each of the 1960 Lease and the 1966 Lease (collectively, “<U>Consents</U>”), that the Lessees shall have the right to obtain, by grant from the Secretary, and the Nation Consents to the grant by the Secretary, of renewed, extended, or reissued § 323 Grants for the rights-of-way covered in the Existing § 323 Grants. (Such renewed, extended, or reissued § 323 Grants are referred to as the “<U>Renewed § 323 Grants</U>”).</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.3</TD> <TD width="1%"> </TD> <TD>The Nation and Lessees will cooperate fully with each other and the Secretary to obtain the Renewed § 323 Grants.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.4</TD> <TD width="1%"> </TD> <TD>The Navajo Nation Council Resolution approving this Amendment shall be deemed to be sufficient legal approval by the Nation for the Renewed § 323 Grants. No further consideration shall be required by the Nation in order for the Secretary to issue the Renewed § 323 Grants.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.5</TD> <TD width="1%"> </TD> <TD>The Lessees shall provide the Nation a copy of applications for the Renewed § 323 Grants, and each application shall be accompanied by a payment of no more than $800 per application.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.6</TD> <TD width="1%"> </TD> <TD>The Existing § 323 Grants and the Renewed § 323 Grants shall be additional and supplementary to, separate and independent from, and not conditioned upon the leasehold rights leased to APS under the 1960 Lease and to the Lessees under the 1966 Lease; and a termination of either the 1960 Lease or the 1966 Lease for any reason shall not terminate any §323 Grant, and a termination of any § 323 Grant for any reason, shall not terminate the 1960 Lease or the 1966 Lease.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.7</TD> <TD width="1%"> </TD> <TD>The Nation agrees to support the renewal, extension, or reissuance of the Existing § 323 Grants as categorically excluded under section 3.2A of the Bureau of Indian Affairs’ 2005 National Environmental Policy Act Handbook. If the Secretary determines that additional environmental impact analysis is required, the Nation hereby grants Lessees access to all Navajo Nation Lands necessary to complete such additional analysis. Lessees will work with the appropriate Navajo Nation agencies to effectuate any necessary access to any Navajo Nation Lands. The Nation also agrees to assist the Lessees in completing such analysis and to take reasonable actions to reduce the time and cost required to complete such analysis.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.8</TD> <TD width="1%"> </TD> <TD>Except as set forth in the 1960 Lease, APS shall not change the voltages of the Transmission Lines without the Nation’s prior approval.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">4.9</TD> <TD width="1%"> </TD> <TD>Under no circumstances shall any § 323 Grant be interpreted as granting a fee simple interest to the Lessees or any other property interest, except as set forth in the § 323 Grant.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">5</TD> <TD width="1%"> </TD> <TD><U><B>ADDITIONAL TERMS REGARDING § 323 GRANTS FOR TRANSMISSION LINES</B></U>.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.1</TD> <TD width="1%"> </TD> <TD>The provisions of Section 5.2 through Section 5.7 and Section 10 and Section 12 below constitute a separate agreement between the Nation and APS. In no event shall any default, action or omission by APS under Section 5.2 through Section 5.7, Section 10, or Section 12 below have any effect on any other Parties’ rights, privileges, duties, obligations and liabilities under the remainder of this Amendment.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.2</TD> <TD width="1%"> </TD> <TD>The Navajo Nation Lands subject to an Existing § 323 Grant or a Renewed § 323 Grant and pertaining only to the Transmission Lines shall hereinafter be referred to as “<U>§ 323 Grant Land</U>.”</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.3</TD> <TD width="1%"> </TD> <TD>The use of the § 323 Grant Land shall be strictly limited to constructing, reconstructing, replacing, repairing, operating and maintaining the Transmission Lines. Any other use of the § 323 Grant Land shall require the consent of the Nation. The consent of the Nation may be given, given upon conditions, or denied at the sole discretion of the Nation.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.4</TD> <TD width="1%"> </TD> <TD>The Nation shall be under no obligation to forego the use of the § 323 Grant Land or any portion or lands burdened by the § 323 Grant Land, or to refrain from authorizing any use of said lands by any third party, including but not limited to, the exploration for and development and transportation of coal, oil, gas, or other natural resources located within or beneath said lands, except to the extent that such use physically interferes with the operation and maintenance of the Transmission Lines or interferes with the purposes of the § 323 Grants.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.5</TD> <TD width="1%"> </TD> <TD>Upon the Nation’s proposed authorization of the use of the § 323 Grant Lands by any third party, which new use may occupy the § 323 Grant Lands or otherwise burden the § 323 Grant Lands, the Nation agrees to notify APS and commence good faith consultation with APS prior to the Nation’s final approval of said third party use. Prior to the Nation’s final approval, the Nation shall require the third party to enter into an agreement with APS, which agreement must be acceptable to APS, to indemnify, defend, and hold APS harmless from any and all liability arising from the third party’s use, interest, and activities within the § 323 Grant Land.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.6</TD> <TD width="1%"> </TD> <TD>Five years prior to the expiration of a Renewed § 323 Grant, or as soon as practicable after any earlier termination of a Renewed § 323 Grant, APS and the Nation shall meet to discuss whether APS will leave in place all, some, or none of the Transmission Lines. If APS and the Nation cannot agree to terms regarding the disposition of one or more of the Transmission Lines, APS shall remove the Transmission Line(s) for which no agreement is reached, in accordance with the Lease and applicable laws and requirements, and shall leave the § 323 Grant Land in good condition. On the expiration date of a Renewed § 323 Grant, APS shall have ninety (90) days to peaceably and without legal process deliver the possession of the § 323 Grant Land, with or without the Transmission Lines, as the case may be. In the event a Renewed § 323 Grant is terminated early, APS shall have six months to peaceably and without legal process deliver the possession of the § 323 Grant Land for such terminated § 323 Grant, with or without the Transmission Lines, as the case may be. If delivery cannot be performed on or before such 90-day period or six month period, as the case may be, APS and the Nation shall commence good faith negotiations for compensation, fees or damages to be paid to the Nation for prospective periods of occupation, use, or burden of the § 323 Grant Lands.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">5.7</TD> <TD width="1%"> </TD> <TD>Holding over by APS after the expiration or early termination of a Renewed § 323 Grant shall not constitute an extension/renewal thereof, or give APS any rights in or to the § 323 Grant Lands. Holding over after expiration or early termination of a Renewed § 323 Grant shall not give APS any rights via a Renewed § 323 Grant. Following expiration or early termination of a § 323 Grant, the act of applying for a § 323 Grant from the Secretary shall not give APS any rights to the § 323 Grant land.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">6</TD> <TD width="1%"> </TD> <TD><U><B>NATION’S SUPPORT OF ENVIRONMENTAL REVIEWS AND § 323 GRANTS</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The Nation shall work with the Lessees to obtain the necessary regulatory approvals and to advocate on behalf of the Lessees in support of any National Environmental Policy Act, Endangered Species Act, or National Historic Preservation Act analyses; § 323 renewals or extensions; or any other requirements of the Department of the Interior (“<U>DOI</U>”) or the Nation that are prerequisites necessary to conduct the operations of the Plant, Transmission Lines, and Communication Sites. In its interactions with the DOI, the Nation shall support the interests of the Lessees and advocate positions that support the continued operations of the Plant, Transmission Lines, and Communication Sites. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">7</TD> <TD width="1%"> </TD> <TD><U><B>EMPLOYMENT AT THE FOUR CORNERS GENERATING STATION</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Section 19 of the 1960 Lease, Section 24 of the 1966 Lease and Section 25 of the 1966 Lease (as amended by Section 12 of the 1985 Lease Supplement) are deleted in their entirety and replaced as follows: </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">7.1</TD> <TD width="1%"> </TD> <TD>Without limiting the scope or effectiveness of the provisions of Section 17 of the 1960 Lease (Operation of Power Plant) or Section 22 of the 1966 Lease (Operation of Enlarged Four Corners Generating Station), APS and the Lessees shall comply with the terms of the Four Corners Generating Station Preference Plan (the “<U>Plan</U>”), attached as Exhibit C.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">7.2</TD> <TD width="1%"> </TD> <TD>In the event that, in the opinion of their counsel, federal law develops in the future, to permit APS and the Lessees, respectively, to grant a preference in employment based on tribal affiliation, as distinguished from a “Native American Indian” preference in employment, APS and the Lessees shall practice a Navajo preference in employment at the Plant in accordance with the requirements of this Section 7 and the Plan.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">7.3</TD> <TD width="1%"> </TD> <TD>If, at any time, APS’s then current Collective Bargaining Agreement (which governs labor at the Plant), as negotiated by APS, in its sole discretion, conflicts with this Section 7 or the Plan, then APS’s Collective Bargaining Agreement shall take precedence.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">8</TD> <TD width="1%"> </TD> <TD><U><B>ADVISORY COMMITTEE</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">APS, the Lessees, and the Nation shall establish a Four Corners Advisory Committee for the purpose of promoting open dialogue between them regarding operations of the Plant. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">8.1</TD> <TD width="1%"> </TD> <TD>The Committee shall consist of two members of the Navajo Nation Government with experience in energy-related matters, one from the executive and one from the legislative branch, and two senior officials representing APS and the Lessees, who shall be tasked to work together and in consultation with their respective leaderships to resolve concerns raised by APS and the Lessees or the Nation in a mutually beneficial manner. The Committee shall meet regularly, but no less than two times a year. Discussion topics and updates may include voluntary compliance agreements, the impact of plant operations on the Nation’s members and surrounding communities and emerging issues.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">8.2</TD> <TD width="1%"> </TD> <TD>APS and the Lessees or the Nation may submit disagreements and disputes to the Committee for discussion and possible resolution. Decisions of the Committee shall be in the nature of recommendations and shall not be binding on APS and the Lessees or the Nation.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">9</TD> <TD width="1%"> </TD> <TD><U><B>ANNUAL PAYMENT</B></U>.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.1</TD> <TD width="1%"> </TD> <TD>The Annual Payment shall replace all compensation for rents, rights of way, or otherwise, set forth in the § 323 Grants (as to the § 323 Grant Land), the 1960 Lease and the 1966 Lease, as applicable. All sections of the aforementioned documents imposing a payment obligation on APS and the Lessees are hereby deleted.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.2</TD> <TD width="1%"> </TD> <TD>The Annual Payment shall be $7,000,000, as adjusted from the April 2011 CPI (defined below), and shall begin on the Amendment Effective Date. All subsequent Annual Payments shall be subject to annual adjustments, based upon changes in the April Consumer Price Index U.S. City Average for All Urban Consumers, published by the U.S. Bureau of Labor Statistics (“<U>CPI</U>”). The annual CPI adjustment for the Annual Payment shall be as set forth in Exhibit D.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.3</TD> <TD width="1%"> </TD> <TD>On or before July 6 of each year, APS and the Lessees shall submit one check for the Annual Payment to the Nation and indicate the adjustment required by the CPI.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.4</TD> <TD width="1%"> </TD> <TD>No Lessee shall be responsible or liable to the Nation for the payment of any portion of such Annual Payment of any other Lessee. In the event that one or more Lessees fails to pay the Nation its portion of such Annual Payment at the time such Annual Payment is submitted to the Nation, APS (or the then operator of the Plant) shall inform the Nation of the name of the Lessee(s) failing to make the Annual Payment and the specific amount of each such Lessee’s shortfall. In the event the Nation incurs costs associated with obtaining the required Annual Payment owed, the Nation shall be entitled to recover from the defaulting Lessee(s) its associated costs, including, but not limited to, attorney’s fees, filing fees and interest accrued. A list of each Lessee’s portion of the Annual Payment shall be provided to the Nation.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.5</TD> <TD width="1%"> </TD> <TD>The Nation agrees that the Annual Payment payable by APS and the Lessees constitutes fair and adequate consideration for the rights granted in the 1960 Lease, the 1966 Lease, the Existing § 323 Grants and the Renewed § 323 Grants.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.6</TD> <TD width="1%"> </TD> <TD>Upon agreement between the Lessees, the percentage of the Annual Payment owed by each of APS and the Lessees, respectively, may be changed without the consent of the Nation. But in no event shall the amount due be less than 100% of the Annual Payment, as calculated in accordance with Section 9.2. In the event of a change in payment percentages, an updated list of each Lessee’s portion of the Annual Payment shall be provided to the Nation. In consideration of the Annual Payment made by APS and the Lessees, respectively, the Nation releases APS and the Lessees from all and any kind of claims, suits, actions, causes of action, rights, liabilities, and obligations (the aforementioned, collectively referred to as “<U>Claims</U>”), whether past, present, or future, known or unknown, for or related to compensation due under the 1960 Lease or 1966 Lease, or compensation for the Existing § 323 Grants and the Renewed § 323 Grants.</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.7</TD> <TD width="1%"> </TD> <TD>In consideration of the Annual Payment made by APS and the Lessees, respectively, the Nation releases APS and the Lessees from and settles all outstanding issues and potential Claims, under the 1960 Lease or 1966 Lease, or under the Existing § 323 Grants. Notwithstanding the foregoing, the release set forth in this Section 9.7 shall not apply to any claims arising under Section 10 of this Amendment.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">9.8</TD> <TD width="1%"> </TD> <TD>APS and the Lessees release the Nation from and settle all outstanding issues and potential Claims under the 1960 Lease or the 1966 Lease, or under the Existing § 323 Grants. Notwithstanding the foregoing, the release set forth in this Section 9.8 shall not apply to any claims arising under Section 10 of this Amendment.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">10</TD> <TD width="1%"> </TD> <TD><U><B>APS’S 230kV LINES</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">APS and the Nation disagree as to whether the provisions of Section 17 of the 1960 Lease (Operation of Power Plant) or Section 22 of the 1966 Lease (Operation of Enlarged Four Corners Generating Station) apply to the Existing §323 Grants listed on Exhibit B for the 230kV lines identified as (a) Flagstaff to Leupp and (b) Cholla to Leupp (collectively, the “<U>Leupp Lines</U>”). APS and the Nation each reserve the right to assert that the aforementioned sections apply or do not apply to the Leupp Lines, as the case may be. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">11</TD> <TD width="1%"> </TD> <TD><U><B>DECOMMISSIONING</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Upon the decommissioning of the Initial Four Corners Plant, the Four Corners Project or any part of either facility, the final decommissioning obligations of APS as to the Initial Four Corners Plant and of the Lessees as to the Four Corners Project shall be limited to the requirements under the applicable federal environmental laws existing at the time of such decommissioning. All or any part of any such decommissioning may occur at any time during the term of either the 1960 Lease or the 1966 Lease, as applicable. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">12</TD> <TD width="1%"> </TD> <TD><U><B>MOENKOPI SUBSTATION</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">In the event that there is a future expansion of the Moenkopi Substation, it shall be subject to an increase in APS’s portion of the Annual Payment by $1500 per acre (in April 2009 dollars) for up to 100 acres. The $1500 per acre payment shall be adjusted annually by the CPI (in April 2009 dollars). The expansion shall be subject to all applicable regulatory requirements. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">13</TD> <TD width="1%"> </TD> <TD><U><B>ASSIGNMENTS</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The second paragraph of Section 19 of the 1966 Lease is deleted and replaced as follows: Except as set forth in the first paragraph of Section 19 of the 1966 Lease and in Section 9.6 of this Amendment, and except for any assignment, sublease or other transfer by a Lessee to its Affiliate, all other assignments, subleases, or other transfers of rights (including operating rights) of APS related to the 1960 Lease or the Lessees related to the 1966 Lease shall be subject to the prior written consent of the Nation, which consent shall not be unreasonably withheld, nor conditioned on any payments or changes to the terms and conditions of the respective leases, other than nominal administration fees. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">14</TD> <TD width="1%"> </TD> <TD><U><B>SETTLEMENT AND CLOSING AGREEMENTS</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Each Party shall execute a new Settlement and Closing Agreement in form and substance substantially similar to the proposed sample Settlement and Closing Agreement attached as Exhibit F. Once executed, the Settlement and Closing Agreement will be effective as of July 6, 2016. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">15</TD> <TD width="1%"> </TD> <TD><U><B>NO CROSS DEFAULT</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Notwithstanding anything to the contrary in this Amendment, the 1960 Lease or the 1966 Lease, a default by APS under the 1960 Lease, as amended by this Amendment, shall not constitute a default by Lessees under the 1966 Lease, and a default by Lessees under the 1966 Lease, as amended by this Amendment, shall not constitute a default by APS under the 1960 Lease. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">16</TD> <TD width="1%"> </TD> <TD><U><B>PRIMARY FUEL</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The primary fuel used at the Plant shall be coal. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">17</TD> <TD width="1%"> </TD> <TD><U><B>THIRD PARTY BENEFICIARIES</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The 1960 Lease and the 1966 Lease are not intended to confer upon any third person any rights, privileges, waivers, obligations, or remedies granted hereunder. If, on or before July 6, 2018, SCE has sold its share of the Four Corners Project (“<U>SCE’s Share</U>”), the Nation agrees that, without any additional consent or compensation, such buyer(s) of SCE’s Share (“<U>Buyers</U>”) shall (a) automatically, upon the closing of such a sale, become a Lessee(s) under the 1966 Lease and (2) assume the portion of the Annual Payment attributable to SCE’s Share. Upon the closing of such transaction, all such Buyers shall be express third party beneficiaries under this Section 17, and such Buyers and the Nation shall have first party rights to enforce full performance of this Section 17 against each other. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">18</TD> <TD width="1%"> </TD> <TD><U><B>EXECUTION IN COUNTERPARTS</B></U>.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">This Amendment may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument and as if all of the Parties to the aggregate counterparts had signed the same instrument. Any signature page of this Amendment may be detached from any counterpart thereof without impairing the legal effect of any signatures thereon, and may be attached to other counterparts of this Amendment identical in form hereto but having attached to it one or more additional signature pages. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Amendment has been executed by the duly authorized representatives of the Parties, effective as of the Amendment Effective Date. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left"><B>THE NAVAJO NATION</B></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">By:</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">/s/ Ben Shelly</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" nowrap>Printed Name: </TD> <TD> </TD> <TD align="left" valign="top">Ben Shelly</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" colspan="3">Its: President </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">State of Arizona<BR> County of Apache </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing instrument was acknowledge before me this 7th day of March, 2011 by <U>Ben Shelly</U> the <U>President</U> of <br><font style="margin-left: 68%"><B><I>(Name) </I></B></font> <font style="margin-left: 6%"><B><I>(Title) </I></B></font><br> <B>THE NAVAJO NATION</B>, on behalf of The Navajo Nation. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="48%"> </TD> <TD width="2%"> </TD> <TD width="40%"> </TD> <TD width="2%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">/s/ Angela Cody <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Notary Public </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">My Commission Expires:<BR> <IMG src="https://cdn.kscope.io/2ab1dc201727f8a3a8435f61bc1c11ca-c14889c1488907.gif" alt="(SEAL)"> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left"><B>ARIZONA PUBLIC SERVICE COMPANY</B>, an Arizona corporation, in its individual capacity and as a Lessee</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">By:</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">/s/ Mark A. Schiavnoi</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" nowrap>Printed Name: </TD> <TD> </TD> <TD align="left" valign="top">Mark A. Schiavnoi</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" colspan="3">Its: Senior Vice President, Fossil </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">State of Arizona </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">County of Maricopa </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing instrument was acknowledge before me this 8th day of November, 2010 by <U>Mark A. Schiavnoi</U> the <br><font style="margin-left: 74%"><B><I>(Name) </I></B></font> <br> <U>Senior Vice President, Fossil</U> of <B>ARIZONA PUBLIC SERVICE COMPANY,</B> an Arizona corporation, on behalf of the corporation.<br> <font style="margin-left: 7%"><B><I>(Title) </I></B></font> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="48%"> </TD> <TD width="2%"> </TD> <TD width="40%"> </TD> <TD width="2%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">/s/ Norann Asciutto <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Notary Public </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">My Commission Expires: <BR> 2-27-14 </DIV></TD> <TD> </TD> <TD align="left" valign="top"><IMG src="https://cdn.kscope.io/2ab1dc201727f8a3a8435f61bc1c11ca-c14889c1488908.gif" alt="(SEAL)"></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="43%"> </TD> <TD width="5%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top">My Commission Expires:</TD> <TD> </TD> <TD colspan="5" valign="top" align="left">Notary Public</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <tr><td> </td></tr> <TR valign="bottom"> <TD valign="top"><B>Reviewed and Approved</B></TD> <TD> </TD> <TD colspan="5" valign="top" align="left"><B>EL PASO ELECTRIC COMPANY</B>, a</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><B>Legal Department</B></TD> <TD> </TD> <TD colspan="5" valign="top" align="left">Texas corporation</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top">/s/ [ILLEGIBLE]</TD> <TD> </TD> <TD align="left" valign="top">By:</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">/s/ David W. Stevens</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000; border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" nowrap>Printed Name: </TD> <TD> </TD> <TD align="left" valign="top">David W. Stevens</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" colspan="3">Its: CEO </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">State of Texas </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">County of EL PASO </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing instrument was acknowledge before me this 8<SUP style="font-size: 85%; vertical-align: text-top">th</sup> day of November, 2010 by <U>David W. Stevens</U> the <U>CEO</U> of <br><font style="margin-left: 73%"><B><I>(Name) </I></B></font> <font style="margin-left: 6%"><B><I>(Title) </I></B></font><br> <B>EL PASO ELECTRIC COMPANY</B>, a Texas corporation, on behalf of the corporation. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left">/s/ Carolina Pena</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left">Notary Public</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top">My Commission Expires: <BR> 3-24-2011</TD> <TD> </TD> <TD colspan="5" valign="top" align="left"><IMG src="https://cdn.kscope.io/2ab1dc201727f8a3a8435f61bc1c11ca-c14889c1488909.gif" alt="(SEAL)"></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left"><B>PUBLIC SERVICE COMPANY OF NEW MEXICO</B>,</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left">a New Mexico corporation</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">By:</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">/s/ Patricia K. Collawn</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" nowrap>Printed Name: </TD> <TD> </TD> <TD align="left" valign="top">Patricia K. Collawn</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" colspan="4">Its: President & CEO </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">State of New Mexico </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">County of Bernalillo </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing instrument was acknowledge before me this 8<SUP style="font-size: 85%; vertical-align: text-top">th</sup> day of November, 2010 by <U>Patricia K. Collawn</U> the <U>President & </U> <br><font style="margin-left: 73%"><B><I>(Name) </I></B></font> <font style="margin-left: 10%"><B><I>(Title) </I></B></font><br> <u>CEO</u> of <B>PUBLIC SERVICE COMPANY OF NEW MEXICO</B>, a New Mexico corporation, on behalf of the corporation. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left">/s/ [ILLEGIBLE]</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left">Notary Public</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"> My Commission Expires:<BR>September 12, 2012 </div> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left"><B>TUCSON ELECTRIC POWER COMPANY</B>,</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD colspan="5" valign="top" align="left">an Arizona Corporation</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">By:</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">/s/ Michael J. Deconcini</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" nowrap>Printed Name: </TD> <TD> </TD> <TD align="left" valign="top">Michael J. Deconcini</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" colspan="3">Its: Chief Operating Officer </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">State of Arizona </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">County of Pima </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing instrument was acknowledge before me this 8<SUP style="font-size: 85%; vertical-align: text-top">th</sup> day of November, 2010 by <U>Michael J. Deconcini</U> the <br><font style="margin-left: 73%"><B><I>(Name) </I></B></font><BR> <U>Sr. Vice President & Chief Operating Officer</U> of <B>TUCSON ELECTRIC POWER COMPANY</B>, an Arizona corporation, on behalf of <br><font style="margin-left: 8%"><B><I>(Title)</I></B></font><BR> the corporation. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="48%"> </TD> <TD width="2%"> </TD> <TD width="40%"> </TD> <TD width="2%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">/s/ Janice Spencer <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Notary Public </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">My Commission Expires: <BR> 8/8/11 </DIV></TD> <TD> </TD> <TD align="left" valign="top"><IMG src="https://cdn.kscope.io/2ab1dc201727f8a3a8435f61bc1c11ca-c14889c1488910.gif" alt="(SEAL)"></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, </B>an agricultural improvement district organized under the laws of the State of Arizona. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="38%"> </TD> <TD width="10%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="40%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left"><B><I>Reviewed by SRP Legal Services</I></B></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: </DIV></TD> <TD> </TD> <TD align="left" valign="top">/s/ David Rousseau <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> David Rousseau, President or<BR> John R. Hoopes, Vice President </TD> <TD> </TD> <TD align="left" valign="top">By: </TD> <TD> </TD> <TD align="left" valign="top">/s/ Kanlee Ramaley <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Signature </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">/s/ Kanlee Ramaley <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: </DIV></TD> <TD> </TD> <TD align="left" valign="top">11/23/2010</TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top" nowrap>Printed Name</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Date: </TD> <TD> </TD> <TD align="left" valign="top">11/23/2010</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Attest and Countersign:</I></B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="38%"> </TD> <TD width="1%"> </TD> <TD width="60%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: </DIV></TD> <TD> </TD> <TD align="left" valign="top">/s/ Terrill A. Lonon <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Terrill A. Lonon, Secretary or </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">Stephanie K. Reed, Assistant Secretary</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: </DIV></TD> <TD> </TD> <TD align="left" valign="top">11/23/2010</TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">State of Arizona </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">County of Maricopa </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing instrument was acknowledge before me this 23<SUP style="font-size: 85%; vertical-align: text-top">rd</sup> day of November, 2010 by <U>David Rousseau</U> the <U>President</U> of <br><font style="margin-left: 74%"><B><I>(Name) </I></B></font> <font style="margin-left: 7%"><B><I>(Title) </I></B></font><br> <B>SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT</B>, an agricultural improvement district organized under the laws of the State of Arizona. </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="48%"> </TD> <TD width="2%"> </TD> <TD width="40%"> </TD> <TD width="2%"> </TD> <TD width="10%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">/s/ Stephanie K. Reed <DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Notary Public </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">My Commission Expires: <BR> August 5, 2011 </DIV></TD> <TD> </TD> <TD align="left" valign="top"><IMG src="https://cdn.kscope.io/2ab1dc201727f8a3a8435f61bc1c11ca-c14889c1488911.gif" alt="(SEAL)"></TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXHIBIT A </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">See Amendment 2 </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif"> <!-- LANDSCAPE --> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit B</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="14%"> </TD> <TD width="2%"> </TD> <TD width="44%"> </TD> <TD width="2%"> </TD> <TD width="12%"> </TD> <TD width="2%"> </TD> <TD width="5%"> </TD> <TD width="2%"> </TD> <TD width="5%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD nowrap align="center"><B><I>Existing</I></B></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center"><B><I>APS</I></B></TD> <TD> </TD> <TD nowrap align="center"><B><I>Grant</I></B></TD> <TD> </TD> <TD nowrap align="center"><B><I>Expiration</I></B></TD> <TD> </TD> <TD nowrap align="center" colspan="2"> </TD> <TD> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B><I>Item</I></B></TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B><I>§ 323 Grants</I></B></TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B><I>Property or Facility</I></B></TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B><I>File #</I></B></TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B><I>Date</I></B></TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B><I>Date</I></B></TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B><I>Acres</I></B></TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1</DIV></TD> <TD> </TD> <TD align="center" valign="top">Plant Site</TD> <TD> </TD> <TD align="left" valign="top">Amended Original Lease (Units 1-3)</TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom">12/01/60</TD> <TD> </TD> <TD align="center" valign="bottom">07/06/16</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">New Lease (Units 4-5)</TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom">07/06/66</TD> <TD> </TD> <TD align="center" valign="bottom">07/06/16</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD align="right">3,466.42</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2</DIV></TD> <TD> </TD> <TD align="center" valign="top">Ancillary Facilities</TD> <TD> </TD> <TD align="left" valign="top">Utah Mine Haul Road (Communication Lines and Access Road)</TD> <TD> </TD> <TD align="center" valign="bottom">IN-13</TD> <TD> </TD> <TD align="center" valign="bottom">07/2861</TD> <TD> </TD> <TD align="center" valign="bottom">07/28/11</TD> <TD> </TD> <TD> </TD> <TD align="right">19.25</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Plant — Coal Lease Area — 69 kV</TD> <TD> </TD> <TD align="center" valign="bottom">IN-15</TD> <TD> </TD> <TD align="center" valign="bottom">12/15/61</TD> <TD> </TD> <TD align="center" valign="bottom">12/15/11</TD> <TD> </TD> <TD> </TD> <TD align="right">3.75</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Pumping Station to Plant Access Road & Pipeline</TD> <TD> </TD> <TD align="center" valign="bottom">IN-12</TD> <TD> </TD> <TD align="center" valign="bottom">04/02/62</TD> <TD> </TD> <TD align="center" valign="bottom">04/02/12</TD> <TD> </TD> <TD> </TD> <TD align="right">40.91</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">River Pumping Station to Plant — 69 kV</TD> <TD> </TD> <TD align="center" valign="bottom">IN-11</TD> <TD> </TD> <TD align="center" valign="bottom">04/02/62</TD> <TD> </TD> <TD align="center" valign="bottom">04/02/12</TD> <TD> </TD> <TD> </TD> <TD align="right">21.74</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Plant — EPNG Bridge / Access Rd</TD> <TD> </TD> <TD align="center" valign="bottom">IN-16</TD> <TD> </TD> <TD align="center" valign="bottom">07/03/63</TD> <TD> </TD> <TD align="center" valign="bottom">07/03/13</TD> <TD> </TD> <TD> </TD> <TD align="right">37.57</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Pumping Station to Plant Access Road & Pipeline Addition</TD> <TD> </TD> <TD align="center" valign="bottom">IN-92</TD> <TD> </TD> <TD align="center" valign="bottom">04/21/69</TD> <TD> </TD> <TD align="center" valign="bottom">04/21/19</TD> <TD> </TD> <TD> </TD> <TD align="right">10.36</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.58</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">3</DIV></TD> <TD> </TD> <TD align="center" valign="top">500 kV ROW</TD> <TD> </TD> <TD align="left" valign="top">El Dorado 500 kV (Navajo portion only)</TD> <TD> </TD> <TD align="center" valign="bottom">IN78 INH-79, INH-80</TD> <TD> </TD> <TD align="center" valign="bottom">03/22/67</TD> <TD> </TD> <TD align="center" valign="bottom">03/22/17</TD> <TD> </TD> <TD> </TD> <TD align="right">3,959.29</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top">345 kV ROW</TD> <TD> </TD> <TD align="left" valign="top">Four Corners to Cholla</TD> <TD> </TD> <TD align="center" valign="bottom">IN-17</TD> <TD> </TD> <TD align="center" valign="bottom">05/26/61</TD> <TD> </TD> <TD align="center" valign="bottom">05/26/11</TD> <TD> </TD> <TD> </TD> <TD align="right">5,658.91</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top">230 kV ROW</TD> <TD> </TD> <TD align="left" valign="top">Flagstaff to Leupp</TD> <TD> </TD> <TD align="center" valign="bottom">IN-4</TD> <TD> </TD> <TD align="center" valign="bottom">09/12/57</TD> <TD> </TD> <TD align="center" valign="bottom">09/12/07</TD> <TD> </TD> <TD> </TD> <TD align="right">102.82</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Cholla to Leupp</TD> <TD> </TD> <TD align="center" valign="bottom">IN-7</TD> <TD> </TD> <TD align="center" valign="bottom">09/21/60</TD> <TD> </TD> <TD align="center" valign="bottom">09/21/10</TD> <TD> </TD> <TD> </TD> <TD align="right">249.16</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">4</DIV></TD> <TD> </TD> <TD align="center" valign="top">Substation Sites</TD> <TD> </TD> <TD align="left" valign="top">12 kV line and Roadway to Moenkopi Switchyard</TD> <TD> </TD> <TD align="center" valign="bottom">INH-88</TD> <TD> </TD> <TD align="center" valign="bottom">04/24/70</TD> <TD> </TD> <TD align="center" valign="bottom">04/27/95</TD> <TD> </TD> <TD> </TD> <TD align="right">1.12</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Leupp Substation</TD> <TD> </TD> <TD align="center" valign="bottom">IN-5</TD> <TD> </TD> <TD align="center" valign="bottom">05/06/59</TD> <TD> </TD> <TD align="center" valign="bottom">05/06/09</TD> <TD> </TD> <TD> </TD> <TD align="right">.43</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Moenkopi Switchyard</TD> <TD> </TD> <TD align="center" valign="bottom">INH-83</TD> <TD> </TD> <TD align="center" valign="bottom">04/09/68</TD> <TD> </TD> <TD align="center" valign="bottom">04/09/18</TD> <TD> </TD> <TD> </TD> <TD align="right">211.09</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD align="center" valign="bottom"> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">5</DIV></TD> <TD> </TD> <TD align="center" valign="top">Communication Sites</TD> <TD> </TD> <TD align="left" valign="top">Preston Mesa Communication Site</TD> <TD> </TD> <TD align="center" valign="bottom">IN-1182</TD> <TD> </TD> <TD align="center" valign="bottom">12/30/96</TD> <TD> </TD> <TD align="center" valign="bottom">12/30/14</TD> <TD> </TD> <TD> </TD> <TD align="right">0.23</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Jacks Peak Communication Site</TD> <TD> </TD> <TD align="center" valign="bottom">IN-1181</TD> <TD> </TD> <TD align="center" valign="bottom">04/16/02</TD> <TD> </TD> <TD align="center" valign="bottom">04/15/17</TD> <TD> </TD> <TD> </TD> <TD align="right">1.75</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Dezza Bluff Communication Site</TD> <TD> </TD> <TD align="center" valign="bottom">IN-1357</TD> <TD> </TD> <TD align="center" valign="bottom">12/15/97</TD> <TD> </TD> <TD align="center" valign="bottom">12/14/17</TD> <TD> </TD> <TD> </TD> <TD align="right">0.08</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Zilnez Mesa Microwave Site, Navajo Reservation</TD> <TD> </TD> <TD align="center" valign="bottom">IN-113</TD> <TD> </TD> <TD align="center" valign="bottom">01/03/73</TD> <TD> </TD> <TD align="center" valign="bottom">01/03/23</TD> <TD> </TD> <TD> </TD> <TD align="right">2.40</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Roof Butte Communication Site</TD> <TD> </TD> <TD align="center" valign="bottom">IN-85</TD> <TD> </TD> <TD align="center" valign="bottom">07/07/70</TD> <TD> </TD> <TD align="center" valign="bottom">07/07/20</TD> <TD> </TD> <TD> </TD> <TD align="right">0.02</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD align="center" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Marsh Pass Communication Site</TD> <TD> </TD> <TD align="center" valign="bottom">IN-116</TD> <TD> </TD> <TD align="center" valign="bottom">01/03/73</TD> <TD> </TD> <TD align="center" valign="bottom">01/03/23</TD> <TD> </TD> <TD> </TD> <TD align="right">3.90</TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR style="font-size: 6pt"> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="96%"> </TD> </TR> <TR valign="top"> <TD nowrap align="left"><B><I>*</I></B></TD> <TD> </TD> <TD><B><I>Certain of the terms used to describe the listed property or facilities have the meanings given to them in the 1960 Lease and 1966 Lease.</I></B></TD> </TR> </TABLE> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit C</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FOUR CORNERS GENERATING STATION</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PREFERENCE PLAN</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>March 7, 2011</B> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Table of Contents</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="94%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">I. INTRODUCTION</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">1</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom"> <TD><DIV style="margin-left:15px; text-indent:-15px">II. PREFERENCE POLICY STATEMENT</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">1</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">III. SELECTION</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">1</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom"> <TD><DIV style="margin-left:15px; text-indent:-15px">IV. GOALS</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">2</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">V. TRAINING</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">3</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">VI. RECRUITMENT/ADVERTISING FOR REGULAR EMPLOYEES</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">3</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">VII. ADVERTISING/RECRUITING FOR TEMPORARY EMPLOYEES</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">4</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom"> <TD><DIV style="margin-left:15px; text-indent:-15px">VIII. CONTRACT LABOR/SERVICES</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">4</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">IX. CROSS CULTURAL COMMUNICATIONS PROGRAM</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">4</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom"> <TD><DIV style="margin-left:15px; text-indent:-15px">X. DISPUTE RESOLUTION FOR EMPLOYEES</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">4</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">XI. ENTIRE AGREEMENT; NO THIRD PARTY BENEFICIARIES</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">5</TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>I. INTRODUCTION</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The purpose of this Preference Plan is to clarify and delineate Arizona Public Service Company’s (“APS”) Indian Preference Plan for the Four Corners Generating Station (“Four Corners”) and specifically, the procedures for giving preference in employment to Indians. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>II. PREFERENCE POLICY STATEMENT</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Employment at Four Corners is based on qualifications without regard to race, color, creed, religion, national origin, sex, or age, except that preference will be given to qualified Indians, provided, however, that to the extent allowed by law (as set forth in Section 7.2 of the Amendment, to which this Preference Plan is attached), APS will give preference to qualified Navajos rather than to Indians. Each member of APS’s management is responsible for implementing this policy in his/her areas and is held accountable for it in the same way each manager is held accountable for other company policies. In particular, the Plant Manager for Four Corners has overall accountability and responsibility for implementation of this Preference Plan. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>III. SELECTION</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In order to conduct operations at Four Corners in a safe and effective manner, all positions must be filled by persons qualified to perform the work required. APS has procedures to evaluate the qualifications (knowledge, skills and abilities) required for each job position. In general, these job qualifications are documented in “job descriptions” maintained by APS’s Human Resource Department. Employees may also obtain a copy of their job descriptions by contacting their supervisors. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Job requirements consist of standards which identify the<U> </U>skills, education, and experience<U> </U>necessary to perform a particular job. These job requirements are the basis for hiring decisions and are also used to formulate employee training programs for job classifications with few incumbent-Indian employees. Hence, it is important that the job descriptions describe the true requirements of the job. For this reason, APS will review its job descriptions to assure that the job qualifications are relevant to the job requirements. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Qualifications are assessed on the basis of performance reviews, skills evaluations, experience and education, as appropriate for the position under consideration. Supervisors (and previous employers, in the case of external applicants) may be contacted. Skills may be evaluated by written tests, skill demonstrations, or by supervisory interview. Tests will be validated for job relevancy. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">APS is committed to Indian preference in employment. Preference will be given to Indians who possess the skills and abilities to fulfill the job requirements established above. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>IV. GOALS</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The purpose of this Preference Plan is to provide a means to increase the employment of Indians at Four Corners, in both regular full-time and temporary positions. In particular, APS intends to focus on increasing the overall employment of Indians at Four Corners and promoting Indians into management positions. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Analysis of Indian employment levels by job classification will lead to establishing goals for job placement and training. These goals will be reviewed annually to evaluate the progress made toward the objective, and revised as necessary. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The commitment of APS is to offer available job opportunities to Indians who satisfy job requirements, whether the person is a current employee or a non-employee identified through recruitment and advertising. Through the adoption and implementation of training programs at Four Corners, the long-range goal is to develop a pool of Indian candidates qualified for all positions. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Openings created through resignation, discharge, transfer, promotion, or a newly created position cause the posting of an internal “bid” and create opportunities for internal movement through the bid process. Bidding is the established process by which job vacancies are announced, advertised and filled. When vacancies occur, employees, who feel they have the qualifications for a particular job, may submit their internal applications (bids) for consideration. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The bid process frequently creates a cascading effect, as employees vacate existing jobs to fill positions that result from another employee accepting a bid to fill the original vacancy. When an Indian bidder accepts a position vacated by another Indian, the net effect on the overall percentage of Indian employment is zero. While Indian bidders will be given preference in accordance with this Preference Plan, an increase in the total percentage of Indian employees at Four Corners can be expected only when the cascading effect of the bid system results in the employment of external Indian candidates. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Nevertheless, the potential for increasing the number of Indian employees is greater in certain job classifications than in others. Some of these job classifications are: </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>First and second level supervision</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Operations (Operator Trainee through Control Operator)</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Machinist</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Plant Mechanic</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Electrician</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Equipment Operator</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Plant Chemist</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left"><B>•</B></TD> <TD width="1%"> </TD> <TD>Scheduler</TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Four Corners management will give these job classifications particular attention to increase employment of Indians. Additionally, technical and professional recruiting will be increased to locate, identify, and employ suitable Indian candidates for engineers, technicians, and professional positions. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>V. TRAINING</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">When there are too few qualified Indian bidders, internal training programs to increase the availability of Indian bidders may be appropriate. Training programs should focus on raising the level of skills, knowledge and abilities of Indians in “feeder jobs.” These are jobs which typically provide employees for higher level jobs, particularly when the lower level job has skill, knowledge and ability requirements that are prerequisites for a higher level job. Training should continue until the goal has been met. Other “in-place” training programs, such as apprenticeships and operations training, are on-going and continue to provide trained replacements for journeymen. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Indians will be encouraged to enhance their careers at APS by taking advantage of on-the-job training, apprenticeships, and in-house and off-the-job educational courses. As a specific part of this Preference Plan, the following actions will be taken to provide opportunities for Indians to advance to journeyman-level and supervisory positions. </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">1.</TD> <TD width="1%"> </TD> <TD>New apprenticeships will be awarded only to qualified Indians.</TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="4%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">2.</TD> <TD width="1%"> </TD> <TD>Currently employed Indian journeymen will be selected for supervisory training to make them better qualified for future opportunities in foreman positions.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Because of the magnitude of the work and its accompanying time constraints, virtually everyone at Four Corners is affected by an overhaul. Four Corners has chosen to supplement the knowledge, skills and experience of its regular full-time employees with those of temporary workers with job specific skills. During an overhaul, where possible, regular full time employees are upgraded to higher level skill positions including supervisory positions. In this manner, employees may further expand the practical application of their technical and supervisory skills. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>VI. RECRUITMENT/ADVERTISING FOR REGULAR EMPLOYEES</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Recruitment is any activity that causes individuals to apply for employment. Advertising is one method of recruitment. Examples of other methods include meetings with graduating college seniors, participation in trade fairs, and day programs. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Since most regular full-time jobs at Four Corners are filled internally, a large recruitment effort is not needed. Thus, recruitment of regular full-time employees should be limited to those positions which are not filled by Indians internally. For purposes of this Preference Plan, recruitment will concentrate on jobs in which Indians are underutilized. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In an effort to attract qualified Indian applicants, contacts with key organizations throughout the Navajo Reservation will be maintained, although contacts within the Western Navajo Agency will be emphasized. In addition, Four Corners will work with appropriate tribal agencies to develop other potential recruitment sources. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Universities, vocational schools, Joint Training and Partnership Act classroom training programs, the Navajo Division of Education, the ONLR, and employment service offices located in the vicinity of Four Corners will be included in the recruitment and advertising efforts of Four Corners. Technical and professional jobs will be emphasized in recruitment efforts at colleges, universities, and in periodic advertisements to attempt to locate and identify suitable Indian candidates for employment opportunities. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Advertising and recruiting efforts will include a statement that APS at Four Corners recognizes Indian preference in employment. The following statement will be included in all advertisements for employment opportunities at Four Corners and on bid sheets posting jobs at Four Corners: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">APS follows a policy of giving preferential treatment to Indians in connection with employment at the Four Corners Generating Station. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>VII. ADVERTISING/RECRUITING FOR TEMPORARY EMPLOYEES</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each year, temporary employees are hired for certain specific assignments at Four Corners. Only when no qualified Indian applicant is found, after a thorough review of returning Indian applicants, existing files on temporary Indian employees, and new applications from Indians (generated by advertising), will a temporary position be filled by a non-Indian. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>VIII. CONTRACT LABOR/SERVICES</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">APS will select qualified Indian-owned businesses, when available, to provide contract labor or services at Four Corners. APS will notify its vendors (a) of the employment and contracting preference policy at Four Corners; and (b) that they are expected to comply with applicable laws and regulations. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>IX. CROSS CULTURAL COMMUNICATIONS PROGRAM</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">APS will develop and implement a cross-cultural program designed to provide a forum for Indian and non-Indian employees to openly examine and discuss the culturally significant customs, beliefs, values, and social mores that all individuals bring with them to the workplace. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>X. DISPUTE RESOLUTION FOR EMPLOYEES</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">APS acknowledges the value of maintaining a work environment free of prejudice and discrimination. Nevertheless, despite even the best of intentions, complaints do arise, and the parties have determined that complaints of whatever nature are best handled internally, without the involvement of external agencies. Therefore, employees are encouraged to take advantage of APS’s existing internal processes. Through this approach, a wide variety of employment related complaints may be addressed and resolved. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If Navajo Nation officials become aware of an employment concern at Four Corners, the Navajo Nation must bring the issue to the Advisory Committee, formed pursuant to the Lease (to which this Preference Plan is attached), for resolution. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>XI. ENTIRE AGREEMENT; NO THIRD PARTY BENEFICIARIES</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Preference Plan is the entire agreement between the Parties concerning its subject matter and supersedes all prior agreements and understandings, whether or not written, including without limitation the letter agreement dated March 8, 1985 between APS and the Navajo Nation and signed by G. Mark De Michele and Peterson Zah. This Preference Plan also is not intended to confer upon any person other than the Parties any rights, privileges, waivers, obligations or remedies granted hereunder. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit D</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Annual Payment for 2016 and all subsequent years:</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="35%"> </TD> <TD width="25%"> </TD> <TD width="40%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="middle" rowspan="2" align="right"><DIV style="margin-left:0px; text-indent:-0px"><I>7,000,000.00 x</I> </DIV></TD> <TD align="center" valign="top"><FONT style="white-space: nowrap"><U><I>CPI for April in year which Annual Payment is due</I></U></FONT></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="center" valign="top"><I>CPI for April 2011</I></TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit E</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt">This exhibit intentionally not used. </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit F<BR> (Includes Exhibits A-D of the Restated and Amended Settlement and Closing Agreement)</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>DRAFT<BR> 11/4/2010 3:30 PM</B> </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Restated and Amended Settlement and Closing Agreement</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Restated and Amended Settlement and Closing Agreement (the “<B>Restated Agreement</B>”) amends the Settlement and Closing Agreement dated August 15, 2002 (“<B>Original Agreement</B>”) and is entered into as of the Effective Date (as defined in Section 18) by Arizona Public Service Company (“<B>APS</B>”) and the Office of the Navajo Tax Commission (“<B>ONTC</B>”), acting on its own behalf and, pursuant to Section 103 of the Navajo Nation Uniform Tax Administration Statute (“<B>UTAS</B>”), on behalf of the Navajo Nation. APS and the ONTC may be referred to herein individually as a “Party” or collectively as the “Parties.” </DIV> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Recitals</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">A. Pursuant to Section 105 of UTAS, the ONTC, on behalf of the Navajo Nation, issued an assessment to APS on [Date] seeking to assess the Possessory Interest Tax (“<B>PIT</B>”) on APS in connection with its ownership and operation of the Four Corners Power Plant (the “<B>Plant</B>”), switchyards, and transmission and distribution facilities within the Navajo Nation (hereinafter, the Plant, switchyards, and transmission and distribution facilities within the Navajo Nation are collectively referred to as the “<B>Facilities</B>”). Pursuant to Regulation 1.125 of the ONTC Tax Administration Regulations, the ONTC also issued on [Date] a private ruling asserting that it has jurisdictional authority to impose the Business Activity Tax (“<B>BAT</B>”) upon APS’ activities related to the Facilities. Pursuant to Section 133 of UTAS, the ONTC is entering into this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">B. APS and the other participants in the Plant (collectively, the “Participants”) assert that neither the Navajo Nation nor the ONTC has jurisdictional authority to impose any tax on APS, the Participants or the Facilities based on (i) certain agreements between the Navajo Nation, APS and Participants, including without limitation, certain covenants in leases entered into by APS, the Participants and the Navajo Nation and approved by the United States (“<B>Leases</B>”) and in federal grants of rights-of-way issued to APS and the Participants by the United States (“<B>Grants</B>”), (ii) the location of the Facilities on federally granted rights-of-way, (iii) the non-Indian character of APS and the Participants, and (iv) relevant case law. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">C. The ONTC asserts that it possesses jurisdictional authority to administer taxes enacted by the Navajo Nation with respect to the Participants, including APS, and the Facilities based on (i) certain agreements between the Navajo Nation, APS and the Participants, including without limitation, certain covenants in the Leases and Grants, (ii) the location of the Facilities on lands held in trust by the United States for the benefit of the Navajo Tribe, and (iii) relevant case law. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">D. The Parties entered into the Original Agreement for purposes of settling the dispute and to avoid litigation over the question of the jurisdictional authority of the Navajo Nation and ONTC to tax the Facilities and APS, based on its ownership interest in and operation of the Facilities. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">E. The Parties desire to restate, amend and extend the Original Agreement and are thus entering into this Restated Agreement in accordance with the express terms set forth below. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>WHEREFORE, THE PARTIES AGREE AS FOLLOWS:</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1. <U>Settlement Payments</U>. Subject to the terms and conditions contained in this Restated Agreement, APS will make settlement payments as specified below (“<B>Settlement Payments</B>”): </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">a. <U>PIT Settlement Payments</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) Beginning with calendar year 2001 and continuing through July 7, 2041 (the “<B>Amended Term</B>”), APS will pay to ONTC the following amount as a PIT Settlement Payment for the APS-owned Facilities, subject to adjustment as provided in subsection a(ii) of this Section 1: </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"> </TD> <TD width="5%"> </TD> <TD width="47%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Calendar Year</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">PIT Settlement Payment</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD align="center" valign="top">2001 </TD> <TD> </TD> <TD align="center" valign="top">$2,993,515.00</TD> </TR> <TR valign="bottom"> <TD align="center" valign="top">2002 – 2003 </TD> <TD> </TD> <TD align="center" valign="top">$5,987,030.00 per year</TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD align="center" valign="top">2004 – 2040 </TD> <TD> </TD> <TD align="center" valign="top">$6,342,600 per year</TD> </TR> <TR valign="bottom"> <TD align="center" valign="top">2041 </TD> <TD> </TD> <TD align="center" valign="top">$3,171,300.00</TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) Beginning July 8, 2016 and continuing through July 7, 2041, the PIT Settlement Payment is subject to reduction in the event APS and/or the Participants permanently shut down any of the Facilities and/or unit(s) of the Plant in which APS has an ownership interest, including but not limited to the permanent shut down of the entire Plant (the “Permanently Shut Down Facilities”). For any Permanently Shut Down Facilities salvage value will be determinative of value, and salvage value will be based on 5% of original or acquisition cost of the Permanently Shut Down Facilities in question. In the event of any permanent shut down under this Section 1a(ii), the PIT Settlement Payment will be recalculated in two steps: </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">a.</TD> <TD width="1%"> </TD> <TD><U>Step One</U>: PIT Settlement Payment will be proportionally reduced by multiplying the PIT Settlement Payment by a factor that represents the ratio of the original or acquisition cost of the APS-owned Facilities within the Navajo Nation that are not Permanently Shut Down Facilities divided by the total original or acquisition cost of the APS-owned Facilities.</TD> </TR> </TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">b.</TD> <TD width="1%"> </TD> <TD><U>Step Two</U>: The proportionately reduced PIT Settlement Payment derived under Step One will then be increased by adding the product of a 3% in-lieu-of tax rate and the salvage value (i.e., 5% of original or acquisition cost) of the Permanently Shut Down Facilities. A sample calculation in included as Exhibit D to this Restated Agreement.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii) In the event APS constructs a new unit or units at the Plant during the Amended Term, the PIT Settlement Payment will be proportionally increased by an amount that represents the product obtained by multiplying the original or acquisition cost of the new APS-owned unit or units by the following factor: </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">a.</TD> <TD width="1%"> </TD> <TD>The PIT Settlement Payment of $6,342,600 divided by the original or acquisition cost of the APS- owned Facilities within the Navajo Nation as of the Effective Date of this Restated Agreement. A sample calculation in included as Exhibit 1 to this Restated Agreement</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv) APS will pay the PIT Settlement Payment specified above (as may be adjusted pursuant to Section 1a(ii) or Section 1a(iii), above) for calendar years 2002-2040 on a semi-annual basis, with the first half for each calendar year due November 1 and the second half due May 1 of the following year. APS will pay the PIT Settlement Payment specified above for calendar year 2041 on or before November 1, 2041. On or before June 1 of each calendar year during the term of this Restated Agreement, APS will provide to the ONTC, for informational purposes only, the form attached as Exhibit A. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(v) Interest on any late payment of the PIT Settlement Payment will be computed from the date the PIT Settlement Payment was first due to the date such payment is received by the ONTC. The rate of interest on any late payment will be equal to the rate then being used by the Internal Revenue Service for an underpayment of taxes by an individual. If APS fails to timely pay the PIT Settlement Payment, APS also will pay an additional amount equal to 5% of its PIT Settlement Payment. For each full month the payment is overdue, APS will pay an additional amount equal to 0.5% of its PIT Settlement Payment; provided, however, that the maximum additional amount APS must pay for the failure to timely pay shall not exceed 10% of the PIT Settlement Payment amount due. If APS fails to timely provide the Report for PIT Settlement Payment, attached as Exhibit A, as required by Section 1(a)(iv) of this Restated Agreement, APS will pay an additional 5% of its PIT Settlement Payment due for the period for each month or fraction thereof that the Report for PIT Settlement Payment is not provided; provided, however, that the minimum additional amount to be paid for failure to timely provide such Report for PIT Settlement Payment shall be $50 and the maximum additional amount shall not exceed 25% of APS’ PIT Settlement Payment for that period. For good cause shown, the ONTC may in its discretion relieve APS from all or part of the requirements imposed under this Section 1.a(v). </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(vi) APS will provide, within six (6) months of the Effective Date of this Restated Agreement, a schedule of original or acquisition cost for the Facilities in which APS has an ownership interest (including the Permanently Shut Down Facilities) for use in connection with the calculations provided for in Section 1.a(ii). In addition, if APS constructs a new unit or units at the Plant for purposes of Section 1.a(iii), APS will provide a schedule of original or acquisition cost for such new unit or units within six (6) months after its/their completion, for use in connection with the calculations provided for in Section 1.a(iii). </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(vii) The ONTC expressly agrees that APS is hereby released from any obligation and will not be required or requested to make any other payment with respect to any other amounts that the ONTC asserted or could have asserted were payable prior to execution of this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">b. <U>BAT Settlement Payment</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) Effective as of July 6, 2001 and continuing through the Amended Term, APS will calculate its BAT Settlement Payment amount using the following formula: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">BAT Settlement Payment = </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">[ (R * AI * Net KWhrs) less (Deductions) less (10% Standard Deduction) ] * 5% </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where R = $.0256 / KWhr. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where Net KWhrs = APS’ share of actual net kilowatt hours generated from the Plant during the quarterly period. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where Deductions = (1) Salaries and/or other compensation paid to members of the Navajo Nation; (2) Purchases of Navajo goods and services; and (3) Any payment made to the government of the Navajo Nation, except for the BAT Settlement Payment paid pursuant to this Restated Agreement and any penalties or fines. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where Standard Deduction = an amount equal to the greater of ten percent of (R * AI * Net KWhrs) or $125,000.00. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">As set forth on Exhibit C, APS will include in its Operating Report provided to the ONTC a statement of actual net generation for each quarter. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where AI = an adjustment calculated in the 3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Quarter of each year based upon a 5-year rolling average of Producer Price Index data published by the Bureau of Labor Statistics. Annual adjustments shall be cumulative, i.e., the total current year adjustment shall be equal to the incremental current year adjustment multiplied by the previous year’s adjustment. The incremental adjustment shall be calculated utilizing the following methodology: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">AI = (75% * Cost Index) plus (25% * Revenue Index). </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where Cost Index = </DIV> <DIV align="right"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="92%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="8%"> </TD> <TD width="2%"> </TD> <TD width="90%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">42.3% </DIV></TD> <TD> </TD> <TD align="left" valign="top">* Bituminous Coal and Lignite: West (BLS Series PCU1211#214) </TD> </TR> <tr><td> </td></tr> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">plus </DIV></TD> <TD> </TD> <TD align="left" valign="top">0.9% * Natural Gas (BLS Series PCU1331#A2) </TD> </TR> <tr><td> </td></tr> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">plus </DIV></TD> <TD> </TD> <TD align="left" valign="top">7.6% * Other Heavy Construction (BLS Series PCUBHVY#) </TD> </TR> <tr><td> </td></tr> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">plus </DIV></TD> <TD> </TD> <TD align="left" valign="top">49.2% * Unit Labor Costs: Non-Farm Business (BLS Series PRS85006112) </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Where Revenue Index = </DIV> <DIV align="right"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="92%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="8%"> </TD> <TD width="2%"> </TD> <TD width="90%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">65.2% </DIV></TD> <TD> </TD> <TD align="left" valign="top">* Electric Power and Natural Gas Utilities, Other, Mountain (BLS Series PCU4981#148) </TD> </TR> <tr><td> </td></tr> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">plus </DIV></TD> <TD> </TD> <TD align="left" valign="top">34.8% * Electric Power and Natural Gas Utilities, Other, Pacific (BLS Series PCU4981#149) </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">If any of the BLS indices used in this calculation are discontinued, the Parties shall mutually agree upon an equivalent substitute BLS index. The Parties agree that, beginning January 1, 2002, the Bituminous Coal and Lignite: Surface Mining (BLS Series PCU1211#1) will be substituted into the calculation in place of Bituminous Coal and Lignite: West (BLS Series PCU1211#214). </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">A calculation of AI for the 3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Quarter 2001 through the 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Quarter 2002 BAT Settlement Payments is attached as Exhibit B. The 5-year average of index data for 1996 through 2000 is used to develop this initial adjustment. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Each subsequent annual adjustment will be made for the 3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Quarter BAT Settlement Payment using the 5-year rolling average of index data through the end of the previous year. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">A sample calculation of AI for the 3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Quarter 2002 through 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Quarter 2003 BAT Settlement Payments using estimated data is included in Exhibit B. Calculations in subsequent years will follow this same formula. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) APS will make its BAT Settlement Payments on a quarterly basis, with payments due 45 days after the end of each calendar quarter. APS will, at the time of making such payments, provide to the ONTC an Operating Report containing the following information used to calculate APS’ BAT Settlement Payment: </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">(a)</TD> <TD width="1%"> </TD> <TD>APS revenue requirement, as adjusted by AI;</TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">(b)</TD> <TD width="1%"> </TD> <TD>Net KWhrs for the quarter;</TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">(c)</TD> <TD width="1%"> </TD> <TD>Deductions as defined above; and</TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="16%" style="background: transparent"> </TD> <TD width="3%" nowrap align="left">(d)</TD> <TD width="1%"> </TD> <TD>Standard Deduction.</TD> </TR> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The format for the Operating Report is set forth in Exhibit C. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii) Interest on any late payment of a BAT Settlement Payment will be computed from the date the BAT Settlement Payment was first due to the date such payment is received by the ONTC. The rate of interest on any late payments will be equal to the rate then being used by the Internal Revenue Service for an underpayment of taxes by an individual. If APS fails to timely pay the BAT Settlement Payment, APS will pay an additional amount equal to 5% of the BAT Settlement Payment due. For each full month the payment is overdue, APS will pay an additional amount equal to 0.5% of the amount of its BAT Settlement Payment; provided, however, that the maximum additional amount that APS will be required to pay for the failure to timely pay shall not exceed 10% of the BAT Settlement Payment amount due. If APS fails to timely provide to the ONTC an Operating Report required by this Restated Agreement, APS will pay an additional 5% of its BAT Settlement Payment for each month or fraction thereof that the Operating Report has not been provided to the ONTC; provided, however, that the minimum additional amount to be paid for APS’ failure to timely provide such Operating Report will be $50 and the maximum additional amount will not exceed twenty-five percent (25%) of APS’ BAT Settlement Payment for that period. For good cause shown, the ONTC may in its discretion relieve APS from all or part of the requirements imposed under this Section 2.b(iii). </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv) The ONTC expressly agrees that APS is hereby released from any obligation and will not be required or requested to make any other payment with respect to any other amounts that the ONTC asserted or could have asserted were payable prior to execution of this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">2. <U>Releases</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">a. APS hereby releases and forever discharges the ONTC, its predecessors, successors, affiliates, and assigns, of and from any and all claims, demands, damages, actions, causes of action, or suits of whatsoever kind and nature, existing as of the Effective Date of this Restated Agreement, whether now known or unknown to the Parties, or whether asserted or unasserted, related, either directly or indirectly, to any and all PIT and BAT tax assessments and taxes, and interest and penalties thereon, allegedly owed by the ONTC, its predecessors, successors, affiliates, and assigns, to APS arising from APS’ ownership interests or operation of the Facilities. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">b. The ONTC hereby releases and forever discharges APS, its predecessors, successors, affiliates, and assigns, of and from any and all claims, demands, damages, actions, causes of action, or suits of whatsoever kind and nature, existing as of the Effective Date of this Restated Agreement, whether now known or unknown to the Parties, or whether asserted or unasserted<U>,</U> related, either directly or indirectly, to any and all PIT and BAT tax assessments and taxes, and interest and penalties thereon, allegedly owed by APS, its predecessors, successors, affiliates, and assigns<U>,</U> to the ONTC or Navajo Nation arising from APS’ ownership interests or operation of the Facilities. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">c. The ONTC expressly covenants that it will not seek to apply or assess the Navajo Sales Tax, approved by the Navajo Nation Council pursuant to Resolution No. CO-84-01 on October 18, 2001 (as amended), with respect to any electricity generated at, from or by the Plant except for retail sales of electricity to persons who purchase electricity for that person’s own use, including use in that person’s trade or business and not for resale, redistribution or retransmission, within the Navajo Nation. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">3. <U>Case Closure</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The Parties agree that the following cases shall be closed: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Possessory Interest Tax: Case No. 01-042 </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Business Activity Tax: Case No. 01-056 </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">4. <U>Preservation of Rights</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">It is understood and agreed that this is a settlement of disputed claims, whether asserted or unasserted, and that nothing contained herein shall be construed as an admission of liability, guilt, or wrongdoing by or on behalf of any of the undersigned Parties, all such liability, guilt, or wrongdoing being expressly denied. The Parties acknowledge and agree that this Restated Agreement shall not prejudice or limit in any way the rights or contentions of any Party. The Parties further agree that this Restated Agreement shall not in any way be deemed a waiver or amendment of any provisions of any other agreement between the Navajo Nation, APS and/or any of the Participants, including but not limited to the Leases and Grants. This Restated Agreement, and the actions of the Parties contemplated hereunder, are not intended, nor shall they be deemed, to constitute any waiver, consent or admission with respect to the existence or lack of regulatory, taxing, or adjudicatory authority or jurisdiction of the Navajo Nation or the ONTC over the Facilities or any Party hereto. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">5. <U>Enforcement and Judicial Review</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">a. Neither Party shall commence any judicial or administrative action challenging the validity of this Restated Agreement or any Party’s authority to enter into it. Any commencement of such an action by a Party shall constitute a material breach of this Restated Agreement by that Party. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">b. <U>Challenge to Validity of the Restated Agreement</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(i) If the ONTC, or any of its representatives, officers, employees, departments or agents (a) commences any judicial or administrative action challenging this Agreement or the ONTC’s authority to enter into it, or (b) otherwise in any manner invalidates or breaches this Restated Agreement or takes any action contrary to this Restated Agreement, APS may, in its sole discretion, elect to seek specific performance of or terminate this Restated Agreement. If the ONTC, or any of its representatives, officers, employees, departments or agents, repeals the PIT or BAT and enacts a replacement tax that the ONTC seeks to assert against APS or the Facilities, APS may terminate this Restated Agreement. The ONTC agrees and recognizes that if APS terminates this Restated Agreement, APS shall have no further obligation or liability to make any Settlement Payments from the date of termination forward. The ONTC further agrees and recognizes that in such circumstance, APS has preserved its rights to contest the jurisdiction of the ONTC or the Navajo Nation to assert or assess any taxes against APS with respect to the Facilities, APS’ activities at the Facilities, or with respect to any other properties or activities within the Navajo Nation. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(ii) If APS, or any of its representatives, officers, employees, departments, or agents (a) commences any judicial or administrative action challenging this Restated Agreement or APS’ authority to enter into it, or (b) otherwise in any manner invalidates or breaches this Restated Agreement or takes any action contrary to this Restated Agreement, the ONTC may, in its sole discretion, elect to seek specific performance of or terminate this Restated Agreement. APS agrees and recognizes that, if the ONTC elects to terminate this Restated Agreement, the ONTC has preserved its rights to assert jurisdiction to assess taxes against APS from and after the date of termination with respect to the Facilities, APS’ activities at the Facilities, or with respect to any other properties or activities of APS within the Navajo Nation. If the ONTC elects to terminate this Restated Agreement, the ONTC shall be under no further obligation to accept Settlement Payments in satisfaction of APS’ obligations. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iii) If any person or entity not a Party to this Restated Agreement or the Navajo Nation, or any of their representatives, officers, employees, agencies, departments or agents, commences any judicial, administrative or other action challenging in any way the Restated Agreement’s validity, the Parties shall jointly request that the court, tribunal, agency, or official before which the action is pending dismiss the action. If the action is not dismissed, either Party may file an appropriate responsive pleading, or otherwise act as reasonably necessary to respond to the action or to otherwise protect such Party. If any person, including the Navajo Nation or ONTC, brings an action or proceeding to assert or challenge the jurisdictional authority of the Nation or ONTC to tax the Facilities or activities at the Facilities with respect to such other person other than APS, each Party agrees not to rely on any ruling in such action or proceeding for purposes of challenging the validity of this Restated Agreement as long as the other Party is not in material breach hereof. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(iv) If any court, tribunal, agency or official determines that this Restated Agreement is non-binding on the ONTC or the Navajo Nation, APS may elect to terminate this Restated Agreement, and if so terminated, APS shall have no further obligation or liability to make any Settlement Payments from the date of termination forward. The ONTC agrees and recognizes that in such circumstance APS has preserved its rights to contest the jurisdiction of the Navajo Nation and ONTC to assert or assess any taxes against APS with respect to the Facilities, APS’ activities at the Facilities, or with respect to any other properties or activities within the Navajo Nation. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(v) If any court, tribunal, agency or official determines that this Restated Agreement is non-binding on APS, the ONTC may elect to terminate this Restated Agreement, and if so terminated, APS agrees and recognizes that in such circumstance, the ONTC has preserved its rights to assert jurisdiction to assess any taxes against APS with respect to the Facilities, APS’ activities at the Facilities, or with respect to any other properties or activities within the Navajo Nation. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">c. <U>Other Taxes</U>. Nothing in this Restated Agreement affects the rights, if any, of (i) the Navajo Nation or ONTC to seek to enforce taxes other than the Sales Tax (except as otherwise provided in Section 2(c) above), PIT or BAT on APS or the Facilities or (ii) APS to challenge any such action by the Navajo Nation or ONTC, including when permitted by federal law, bringing such an action in federal court. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">d. <U>Enforcement of the Restated Agreement</U>. Enforcement of this Restated Agreement by either Party shall be pursuant to this Restated Agreement and not pursuant to any Navajo Nation or other law independent of this Restated Agreement. Nothing in this Restated Agreement shall or may be deemed to limit a Party’s right to seek enforcement of this Restated Agreement or defend any claim in federal or tribal court where otherwise permitted by law. Nothing in this Restated Agreement shall or may be deemed as a consent to federal or tribal court jurisdiction by either Party. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">6. <U>Assignment</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">APS may transfer or assign, without the consent of the Navajo Nation or ONTC, all or any portion of its interests and obligations under this Restated Agreement to any parent, subsidiary, affiliate or successor in interest of APS by merger, acquisition, or consolidation or to any other current or future owner of the Facilities, provided that the assignee assumes in writing all of APS’ obligations under this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">7. <U>Representations</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Party represents and warrants as of the Effective Date of this Restated Agreement as follows: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">a. It has full legal right, power and authority to execute, deliver and perform this Restated Agreement; </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">b. It has taken all appropriate and necessary action to authorize the execution, delivery and performance of this Restated Agreement; </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">c. It has obtained all consents, approvals and authorizations necessary for the valid execution and delivery of this Restated Agreement; </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">d. This Restated Agreement constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or insolvency laws or by limitation upon the availability of equitable remedies; </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">e. It is not in violation of any applicable law promulgated or judgment entered by any federal, state, local or other governmental body, which violations, individually or in the aggregate, would adversely affect the performance of its obligations under this Restated Agreement; and </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">f. The execution, delivery and performance by it of this Restated Agreement, the compliance with the terms and provisions hereof and the carrying out of the transactions contemplated hereby, (i) do not conflict with and will not conflict with or result in a breach or violation of any of the terms and provisions of its organizational documents, and (ii) to the best of its knowledge, do not conflict with and will not conflict with or result in a breach or violation of any of the terms and provisions of any law, rule or regulation, or any order, writ, injunction, judgment or decree by any court or other governmental body against it or by which it or any of its properties is bound, or any loan agreement, indenture, mortgage, note, resolution, bond or contract or other agreement or instrument to which it is a party or by which it or any of its properties is bound, or constitute or will constitute a default thereunder or will result in the imposition of any lien upon any of its properties. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">8. <U>Successors and Assigns</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Restated Agreement shall be binding on and inure to the benefit of the Parties hereto and their successors and assigns. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">9. <U>Entire Agreement</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Except for any separate agreement of the Parties settling disputed claims related to applicability of the BAT to certain transmission and distribution facilities within the Navajo Nation, this Restated Agreement reflects the entire agreement of the Parties relating to taxation of the Facilities and no other agreement written or oral shall be used to effect any changes of the provisions retained herein. No amendment of this Restated Agreement shall be valid unless in writing and signed by all Parties. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10. <U>Counterparts</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Restated Agreement may be signed in counterparts, each of which shall be deemed an original. Facsimile signatures shall be as valid as original signatures until each Party receives a fully signed counterpart with original signatures. Each Party shall provide the other Party with original signatures so that each Party shall have a fully signed counterpart within five business days after the date of the last signature. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">11. <U>Relationship of Parties</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Nothing herein may be construed to create an association, joint venture, trust, or partnership, or to impose a trust or partnership covenant, obligation or liability on or with regard to any one or more of the Parties. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">12. <U>Severability</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Subject to the provisions of and except as otherwise provided in Section 5, Enforcement and Judicial Review, of this Restated Agreement, if any term or condition of this Restated Agreement is held to be invalid, void, or unenforceable by any court or tribunal of competent jurisdiction, that holding shall not affect the validity or enforceability of any other term or condition of this Restated Agreement, unless either Party determines in its sole discretion that enforcing the balance of the Restated Agreement would deprive that Party of a fundamental benefit of its bargain. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">13. <U>Adjustment of PIT and BAT Settlement Payment Amounts; Termination</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">a. One year prior to the expiration of the Amended Term, the Parties shall commence good faith negotiations to establish PIT and BAT Settlement Payment amounts for APS to run concurrently with any extension of the Leases and Grants. If the Parties are not able to reach agreement upon new PIT and BAT Settlement Payment amounts before expiration of the Amended Term, the Parties will either continue this Restated Agreement in effect with the PIT and BAT Settlement Payment amounts set forth in Section 1 above, or either Party may elect to terminate this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">b. The Parties recognize and agree that, upon termination or expiration of this Restated Agreement for any reason, (i) each Party has preserved all of its rights and arguments regarding the question of the jurisdictional authority of the Navajo Nation and ONTC to tax the Facilities and/or APS and its successors and assigns based on ownership interests in and operation of the Facilities; (ii) this Restated Agreement shall not in any way be deemed a waiver or amendment of any provisions of any agreement between the Navajo Nation, APS and/or any of the Participants, including but not limited to the Leases and Grants; and (iii) neither Party may assert any claim, demand, damages, action, cause of action, or suit of whatsoever kind and nature, whether known or unknown to the Parties, or whether asserted or unasserted, related, either directly or indirectly, to any and all PIT and BAT tax assessments and taxes, and interest and penalties thereon, that arose or may have arisen while this Restated Agreement was in effect. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">14. <U>No Third Party Beneficiaries</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Nothing herein, either express or implied is intended or may be construed to confer upon or to give to any person or entity other than the Parties any rights or remedies under or by reason of this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">15. <U>Limited Responsibility</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Parties acknowledge and agree that it is their mutual intent that the obligations, representations, warranties and undertakings under this Restated Agreement or as a result of the transactions contemplated by this Restated Agreement are limited to only those expressly set forth herein, and not enlarged by implication, creation of law, or otherwise. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">16. <U>Survival</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The provisions of Sections 2(a) and (b), 4, 7 and 13.b of this Restated Agreement survive expiration or termination of this Restated Agreement. Provided that the Restated Agreement remains in effect through the Amended Term, APS’ obligation to make the calendar year 2041 PIT Settlement Payment specified in this Restated Agreement and APS’ obligation to make BAT Settlement Payments for any periods prior to expiration or termination of this Restated Agreement also shall survive expiration or termination of this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">17. <U>Notices</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Notices shall be deemed to have been given if in writing and (a) hand delivered, (b) delivered by a reputable overnight courier service (such as but not limited to FedEx and UPS), (c) mailed by certified or registered mail, return receipts requested, first class postage prepaid, or (d) transmitted by telecopy or electronic mail, followed within 24 hours by transmittal under option (a), (b) or (c) above addressed as follows: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">If to ONTC: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">President<br> The Navajo Nation<br> P.O. Box 9000<br> Window Rock, Arizona 86515 </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">With a copy to: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Attorney General<br> Navajo Nation Department of Justice<br> P.O. Drawer 2010<br> Window Rock, Arizona 86515 </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Executive Director<br> Office of the Navajo Tax Commission<br> P.O. Box 1903<br> Window Rock, Arizona 86515 </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">If to APS: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Arizona Public Service Corporation<br> 400 North 5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Street<br> Phoenix, Arizona 85004<br> Attn: Corporate Secretary </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">With a copy to: </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Pinnacle West Capital Corporation<br> 400 North 5th Street<br> Phoenix, Arizona 85004<br> Attn: Executive Vice President and General Counsel </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">or at such other address as the Parties may, from time to time, designate in writing. Service by overnight courier or mail shall be deemed made on the first business day delivery is attempted or upon receipt, whichever is earlier. Service by telecopy or electronic mail shall be deemed made upon confirmed transmission. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">18. <U>Effective Date; Effect of this Restated Agreement</U>. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Restated Agreement is effective upon the date when duly executed by both Parties (the “<B>Effective Date</B>”). It is the Parties’ intention that through the Effective Date of this Restated Agreement, the terms and conditions of the Original Agreement in effect at the date of execution of this Restated Agreement shall continue to govern the Parties’ rights and obligations thereunder. Upon and after the Effective Date of this Restated Agreement, the Parties’ right and obligations shall be governed by the terms and conditions of this Restated Agreement. </DIV> <P align="center" style="font-size: 10pt; text-indent: 4%"> <P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt">By signing, the undersigned certify that they have read and agreed to the terms of this Restated Agreement. </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Arizona Public Service Company </B></U></FONT> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="38%"> </TD> <TD width="1%"> </TD> <TD width="10%"> </TD> <TD width="1%"> </TD> <TD width="30%"> </TD> <TD width="1%"> </TD> <TD width="20%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Donald G. Robinson </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Date </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">President</TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD colspan="3" valign="top" align="left"><FONT style="font-variant: SMALL-CAPS"><U><B>Navajo Nation </B></U></FONT></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Martin Ashley, Executive Director </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Date </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">Office of the Navajo Tax Commission</TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD colspan="3" valign="top" align="left"><FONT style="font-variant: SMALL-CAPS"><U><B>APPROVED:</B></U></FONT></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Louis Denetsosie, Attorney General </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000"> </DIV> Date </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">Navajo Nation Department of Justice</TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SETTLEMENT AND CLOSING AGREEMENT</B> </DIV> <DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT A</B> </DIV> <DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>REPORT FOR PIT SETTLEMENT PAYMENT</B> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">1.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Company Name: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">2.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Mailing Address: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">3.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Contact Name: <U> </U><U> </U> Contact Phone Number: <U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">4.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Name of Power Generating Facility: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">5.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Name of Plant Operator: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">6.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Location of Facility/Power Plant (Sec. Twp, Rng): <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">7.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Term of Lease: ____________ Lease Expiration Date: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">8.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Percent Participation of Total Plant: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">9.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Number of Units: <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> </DIV></TD> </TR> </TABLE> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="35%"> </TD> <TD width="5%"> </TD> <TD width="9%"> </TD> <TD width="5%"> </TD> <TD width="18%"> </TD> <TD width="5%"> </TD> <TD width="9%"> </TD> <TD width="5%"> </TD> <TD width="9%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center">Production (KWH or MWH)</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center">Year Placed</TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Unit #</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Capacity (KWH.MWH)</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">for Calendar Year</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">% Interest</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">in Service</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">Total</TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">10.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Type of fuel in use for each unit (coal, gas, etc.): <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">11.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">What is the cost per ton of coal used and purchased by the plant: <U> </U><U> </U><U> </U><U> </U></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">12.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Total area of plant site including cooling ponds, coal storage, ash disposal area (acres): <U> </U><U> </U><U> </U></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">13.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Operating cost($): <U> </U> ($/KWH)<U> </U> Capital cost($): <U> </U> (S/KWH)<U> </U><U> </U></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">14.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Original cost of entire plant($): <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U> <br> (Original cost means the actual cost of the asset before depreciation/Refer to the attached New Mexico Property Tax Report)</DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">15.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Material & Supplies($): <U> </U><U> </U> Construction Work In Progress($): <U> </U><U> </U><br> (Refer to the attached New Mexico Property Tax Report) (Refer to the attached New Mexico Property Tax Report)</DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">16.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Book value of entire plant($) <U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><U> </U><br> (Book value means the original cost less depreciation./Refer to the attached New Mexico Property Tax Report.)</DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">17.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">What is the % rate of return allowed by the state regulatory agency? <U> </U><U> </U><U> </U><U> </U><br> (Only for those companies whose customer rates are regulated by a corporation commission or public utilities commission)</DIV></TD> </TR> </TABLE> </DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR style="font-size: 6pt"> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="96%"> </TD> </TR> <TR valign="top"> <TD colspan="3"><DIV style="text-align: justify"><I>**Note**</I></DIV></TD> </TR> <TR style="font-size: 3pt"><TD> </TD></TR> <TR valign="top"> <TD nowrap align="left"><B><I>**</I></B></TD> <TD> </TD> <TD><DIV style="text-align: justify"><B><I>The amounts reported for items #13 through #16 are reflective of each individual Participant’s ownership share and are not intended to depict Total Plant **</I></B></DIV></TD> </TR> </TABLE> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Transmission & Distribution Property Information</B> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">1. Transmission Lines </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="40%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> </TR> <TR style="font-size: 10pt; font-weight: bold" valign="bottom"> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center">Width of</TD> <TD> </TD> <TD nowrap align="center"> </TD> </TR> <TR style="font-size: 10pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">KV Rating</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Year Built</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Miles</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Right-of-Way</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Acres</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">2. Distribution System </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="40%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center">Width of</TD> </TR> <TR style="font-size: 10pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Chapter</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Urban Meters</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Rural Miles</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">KV Rating</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Right-of-Way</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">3. Substations & Switching Stations </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="40%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> <TD width="5%"> </TD> <TD width="10%"> </TD> </TR> <TR style="font-size: 10pt; font-weight: bold" valign="bottom"> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center">Transformer</TD> <TD> </TD> <TD nowrap align="center"> </TD> <TD> </TD> <TD nowrap align="center"> </TD> </TR> <TR style="font-size: 10pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Voltage Rating</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">KVA</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Year Built</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Acres</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> </TR> <TR style="font-size: 1px"> <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> <TD> </TD> <TD align="left" valign="top" style="border-top: 1px solid #000000"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Additional Information for Operating Report</B> </DIV> <DIV style="margin-top: 10pt"> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">1.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Copy of the previous calendar year annual report or the 10-K filed with the Securities and Exchange Commission</DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">2.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Copy of the previous calendar year FERC Form No. 1 <I>(Only for those companies that are required to file this report with FERC)</I></DIV></TD> </TR> <TR style="font-size: 8pt"> <TD> </TD> </TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <TD width="3%" nowrap align="left">3.</TD> <TD width="1%"> </TD> <TD><DIV style="text-align: justify">Copy of the New Mexico Property Tax Report</DIV></TD> </TR> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit B<BR> Calculation of AI (BAT Index) for 2001 and 2002</B> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Price Indexes: Year-to-Year Change</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="28%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="7%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Electric Power-</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Bituminous</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Unit Labor</TD> <TD> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Other-</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Electric Power-</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Coal and</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Heavy</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2">Cost: Non-Farm</TD> <TD> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Mountain</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Other <I>-.</I>Pacific</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Lignite: West</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Natural Gas </TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Construction</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Business</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">105.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.3</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.8</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">136.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.5</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.8</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.4</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.3</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">111 .5</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.8</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.9</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.0</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.4</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">96.4</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">82.5</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.0</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.7</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.6</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">98.4</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">108.8</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.0</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">104.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">97.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">170.4</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.7</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.1</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001 (estimated)</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">105.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">111.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.0</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">110.7</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.8</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002 (estimated)</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">97.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">52.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">97.7</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.4</TD> <TD nowrap>%</TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Note:</U> Each entry is calculated as the annual average of the appropriate index for the current year divided by the annual average of the same index for the previous year. </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>BAT Index Calculation</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="44%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Revenue Index</B></TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost Index</B></TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total BAT Index</B></TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5-Year Average</B></TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD> </TD> <TD align="right">—</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.0</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.4</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.8</TD> <TD nowrap>%</TD> <TD> </TD> <TD> </TD> <TD align="right">—</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.6</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.7</TD> <TD nowrap>%</TD> <TD> </TD> <TD> </TD> <TD align="right">—</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.8</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.5</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.3</TD> <TD nowrap>%</TD> <TD> </TD> <TD> </TD> <TD align="right">—</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.7</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.5</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.5</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.9</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001 (estimated*)</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">107.3</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">104.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.3</TD> <TD nowrap>%</TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002 (estimated*)</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">98.7</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">99.1</TD> <TD nowrap>%</TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">101.0</TD> <TD nowrap>%</TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U>Note:</U> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Revenue Index = </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">65.24% * (BLS Index: Electric Power — Other — Mountain)<br> plus 34.76% * (BLS Index: Electric Power — Other — Pacific) </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Cost Index = </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">42.29% * (BLS Index: Bituminous Coal and Lignite: West)<br> plus 0.86% * (BLS Index: Natural Gas)<br> plus 7.58% * (BLS Index: Heavy Construction)<br> plus 49.27% * (BLS Index: Unit Labor Costs: Non-Farm Business) </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Total BAT Index = (75% * Cost Index) plus (25% <B>*</B> Revenue Index) </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><b>AI Calculation</b> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="72%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px"><b>AI for BAT Settlement Payments 2001 Q3 through 2002 Q2 =</b></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Average of BAT Index for 1996-2000 =</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">100.9</TD> <TD nowrap>%</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><b>AI (estimated*) for BAT Settlement Payments 2002 Q3 through 2003 Q2 =</b></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">AI for 2001 multiplied by average of BAT Index for 1997-2001 =</DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD align="right"><DIV style="margin-left:45px; text-indent:-15px">[100.9%* 101.3%] =</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">102.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD colspan="3" nowrap align="center">estimated*</TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><b>AI for BAT Settlement Payments 2003 Q3 through 2004 Q2 =</b></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD align="right"><DIV style="margin-left:30px; text-indent:-15px">AI for 2002 multiplied by average of BAT Index for 1998-2002 =</DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="right"><DIV style="margin-left:45px; text-indent:-15px">[100.9% * 101.3% * 101.0%] =</DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right">103.2</TD> <TD nowrap>%</TD> <TD> </TD> <TD colspan="3" nowrap align="center">estimated*</TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">AI for subsequent year BAT Settlement Payments will follow the same formula. </DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR style="font-size: 6pt"> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="96%"> </TD> </TR> <TR valign="top"> <TD colspan="3"><DIV style="text-align: justify"><U>Note:</U></DIV></TD> </TR> <TR style="font-size: 3pt"><TD> </TD></TR> <TR valign="top"> <TD nowrap align="left">*</TD> <TD> </TD> <TD><DIV style="text-align: justify">The AI for the 2002 BAT Settlement Payments is estimated using actual BLS data through November 2001 and estimated data for December 2001. This calculation should be updated when complete 2001 BLS data is made available. The AI for the 2003 BAT Settlement Payments is a sample calculation using only data available through March 2002.</DIV></TD> </TR> </TABLE> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit B(continued)<BR> BLS Price Index Data for AI Calculation</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PCU1211#214<BR> <b>Industry:</b> Bituminous coal and lignite<BR> <b>Product:</b> West<BR> <b>Base Date:</b> 8112 </DIV> <DIV align="center"> <TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="6%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> </TR> <TR style="font-size: 8pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jan</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Feb</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Mar</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Apr</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">May</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jun</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jul</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Aug</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Sep</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Oct</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Nov</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Dec</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Ann Avg</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1995</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">118.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.8</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">124.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">125.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">127.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">127.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">124.1</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">121.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">125.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">125.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.2</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">113.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.8</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">116.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.9</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">114.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">112.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.4</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">114.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PCU1221#1<BR> <b>Industry:</b> Bituminous coal & lignite surface mining<BR> <b>Product:</b> Unprepared (raw) bituminous coal and lignite shipped from surface operations<BR> <b>Base Date:</b> 0112 </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="11%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="12%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2002 </DIV></TD> <TD> </TD> <TD align="left" valign="top">[ILLEGIBLE] </TD> <TD> </TD> <TD align="left" valign="top">[ILLEGIBLE] </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">[ILLEGIBLE]</TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><b>New Coal Index (see Notes, below)</b> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="6%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="11%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="12%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2002 </DIV></TD> <TD> </TD> <TD align="left" valign="top">[ILLEGIBLE] </TD> <TD> </TD> <TD align="left" valign="top">[ILLEGIBLE] </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="left" valign="top">[ILLEGIBLE]</TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PCU1331#A2<BR> <b>Industry:</b> Crude petroleum, natural gas and natural gas liquids<BR> <b>Product:</b> Natural gas<BR> <b>Base Date:</b> 8406 </DIV> <DIV align="center"> <TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="5%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="4%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 8pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jan</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Feb</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Mar</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Apr</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">May</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jun</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jul</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Aug</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Sep</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Oct</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Nov</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Dec</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Ann Avg</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1995</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">68.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">62.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">61.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">62.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">63.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">64.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">63.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">56.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">57.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">59.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">63.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">68.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">62.6</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">78.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">90.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">80.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">87.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">82.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">74.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">82.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">82.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">72.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">70.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">94.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">85.7</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">149.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">112.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">73.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">71.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">78.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">83.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">80.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">81.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">91.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">95.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">95.5</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">85.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">76.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">81.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">84.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">85.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">76.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">83.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">77.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">65.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">72.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">78.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">78.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">78.8</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">70.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">67.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">63.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">69.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">85.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">83.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">86.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">98.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">107.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">97.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">84.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">85.7</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">92.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">98.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">99.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">107.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">159.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">160.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">142.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">166.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">189.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">173.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">247.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">146.1</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">370.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">246.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">202.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">207.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">191.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">144.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">87.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">68.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">107.2</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PCUBHVY#<BR> <b>Industry:</b> Other heavy construction<BR> <b>Product:</b> Other heavy construction<BR> <b>Base Date:</b> 8606 </DIV> <DIV align="center"> <TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="5%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="4%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 8pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jan</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Feb</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Mar</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Apr</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">May</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jun</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jul</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Aug</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Sep</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Oct</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Nov</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Dec</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Ann Avg</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1995</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">128.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">128.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.3</TD> <TD> </TD> <TD> </TD> <TD align="right">130.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.8</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">130.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">131.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.3</TD> <TD> </TD> <TD> </TD> <TD align="right">132.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.3</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">134.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">135.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">135.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.9</TD> <TD> </TD> <TD> </TD> <TD align="right">135.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.6</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">133.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.9</TD> <TD> </TD> <TD> </TD> <TD align="right">133.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">131.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.3</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">132.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">132.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">133.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">135.7</TD> <TD> </TD> <TD> </TD> <TD align="right">136.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.8</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">137.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.3</TD> <TD> </TD> <TD> </TD> <TD align="right">139.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.8</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">140.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">141.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">141.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">139.7</TD> <TD> </TD> <TD> </TD> <TD align="right">139.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">140.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">137.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">137.1</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <!-- End Table Body --> </TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit B(continued)<BR> BLS Price Index Data for AI Calculation</B> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PCU4981#148<BR> <b>Industry:</b> Electric power and natural gas utilities<BR> <b>Product:</b> Other — Mountain<BR> <b>Base Date:</b> 9012 </DIV> <DIV align="center"> <TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="8%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 8pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jan</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Feb</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Mar</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Apr</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">May</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jun</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jul</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Aug</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Sep</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Oct</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Nov</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Dec</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Ann Avg</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1995</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">112.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.1</TD> <TD> </TD> <TD> </TD> <TD align="right">115.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">112.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">112.9</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">111.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.7</TD> <TD> </TD> <TD> </TD> <TD align="right">123.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.6</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">119.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.8</TD> <TD> </TD> <TD> </TD> <TD align="right">122.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.7</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">118.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.5</TD> <TD> </TD> <TD> </TD> <TD align="right">122.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.7</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">118.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.0</TD> <TD> </TD> <TD> </TD> <TD align="right">122.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.2</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">119.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.6</TD> <TD> </TD> <TD> </TD> <TD align="right">121.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">119.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.1</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">119.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">124.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">124.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">127.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.0</TD> <TD> </TD> <TD> </TD> <TD align="right">130.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">130.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">129.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.3</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <!-- End Table Body --> </TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PCU4981#149<BR> <b>Industry:</b> Electric power and natural gas utilities<BR> <b>Product:</b> Other — Pacific<BR> <b>Base Date:</b> 9012 </DIV> <DIV align="center"> <TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="5%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="3%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="4%"> </TD> <TD width="2%"> </TD> <TD width="3%"> </TD> <TD width="4%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 8pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jan</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Feb</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Mar</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Apr</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">May</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jun</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Jul</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Aug</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Sep</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Oct</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Nov</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Dec</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Ann Avg</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1995</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">103.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">102.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">101.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">101.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.3</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">102.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">102.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">100.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">101.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">102.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.6</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">104.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">102.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.1</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">105.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.5</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">106.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">102.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">102.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">116.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">107.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">107.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">107.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.5</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">106.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">121.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">123.3</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.9</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">126.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">120.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">122:4</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">134.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">136.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">126.2</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><b>Series Id:</b> PRS85006113<BR> <b>Duration:</b> index, 1992 = 100<BR> <b>Measure:</b> Unit Labor Costs<BR> <b>Sector:</b> Nonfarm Business </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="11%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="6%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="6%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="2%"> </TD> <TD width="6%"> </TD> <TD width="2%"> </TD> <TD width="1%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> <TD width="6%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 10pt; font-weight: bold" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Qtr1</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Qtr2</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Qtr3</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Qtr4</TD> <TD> </TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Ann Avg</TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1995</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">103.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.7</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1996</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">103.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">103.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.2</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1997</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">105.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">104.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">106.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">105.1</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1998</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">106.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.6</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">108.0</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">1999</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">109.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">111.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">110.2</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">112.1</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">112.5</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">114.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">115.8</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">113.6</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD> <TD> </TD> <TD> </TD> <TD align="right">117.2</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.0</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.7</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">117.9</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD align="right">118.0</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD colspan="2" align="right">[ILLEGIBLE]</TD> <TD> </TD> </TR> <!-- End Table Body --> </TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Notes:</U> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The PCU1211 series was discontinued at the end of 2001. The new series, PCU 1221#1 (which started at 100.0 in Dec. 2001), will be substituted in the AI calculation beginning Jan. 2002. Monthly values for the coal index will be calculated by taking the value of the old coal index on Dec. 2001, 118.4, and multiplying it by the value of the new coal index in each month, then dividing by 100. For example, in Jan. 2002, the value for the coal index used in the AI calculation will be 118.4 * 96.7 /100 = 114.5. </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The PPI data is updated monthly and made available at the BLS website:<BR> <U>http://data.bls.gov/labiava/outside.jsp?survey-pc</U> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The labor cost data is updated quarterly and is also available at the BLS website:<BR> <U>http://www.bls.gov./lpc/home.htm</U> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><u>Shaded entries denote prelimenary BLS data</u> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Settlement and Closing Agreement</B> </DIV> <DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit C<BR> Operating Report</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="86%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Line No.</TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">1. Revenue Requirement</DIV></TD> <TD> </TD> <TD> </TD> <TD colspan="1" align="right">$X.XXXX /KWhr</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">2.</DIV></TD> <TD> </TD> <TD>x</TD> <TD colspan="1" align="right">AI</TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">3. Subtotal</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">X.XXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">4.</DIV></TD> <TD> </TD> <TD>x</TD> <TD colspan="1" align="right">Net KWhrs</TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">5. Subtotal</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:30px; text-indent:-15px">Less Deductions</DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">6. Salaries and/or other compensation paid to members of the Navajo Nation (See Supplemental Schedule I)</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">7. Purchases of Navajo goods and Services (See Supplemental Schedule II)</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">8. Payments made to the Navajo Nation government (See Supplemental Schedule III)</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">9. Standard Deduction (The greater of $125,000 or 10% of line 5.)</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px">10. Total Deductions</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">11. BAT Settlement Payment Base (Line 5 less Line 10)</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" align="right">XXXXX</TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">12. BAT Settlement Payment Rate</DIV></TD> <TD> </TD> <TD nowrap align="left">x</TD> <TD align="right"> 5</TD> <TD nowrap>%</TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px">13. BAT Settlement Payment</DIV></TD> <TD> </TD> <TD>$</TD> <TD colspan="1" nowrap align="right">XXXXX</TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>SETTLEMENT & CLOSING AGREEMENT</B></U><BR> <U><B>EXHIBIT C</B></U><BR> <U><B>SUPPLEMENTAL SCHEDULE I</B></U> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="57%"></TD> <TD width="5%"></TD> <TD width="30%"></TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="top"> </TD> </TR> <TR valign="bottom"> <TD colspan="2" align="left" valign="top"><B><u>SALARIES, WAGES, AND OTHER COMPENSATION PAID TO NAVAJOS</u></B> </TD> <TD align="right" valign="top"><B>Page _____ of _____ </B></TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="64%"> </TD> <TD width="5%"> </TD> <TD width="31%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Company Name (Employer)</B> </DIV></TD> <TD> </TD> <TD align="right" valign="top"><b>Quarter Ended</b></TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="3%"> </TD> <TD width="3%"> </TD> <TD width="35%"> </TD> <TD width="3%"> </TD> <TD width="11%"> </TD> <TD width="3%"> </TD> <TD width="11%"> </TD> <TD width="3%"> </TD> <TD width="11%"> </TD> <TD width="3%"> </TD> <TD width="11%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD> </TD> <TD> </TD> <TD nowrap align="center">1. Employee</TD> <TD> </TD> <TD nowrap align="center">Navajo Census</TD> <TD> </TD> <TD nowrap align="center">2. Salaries or</TD> <TD> </TD> <TD nowrap align="center">3. Other Compensation</TD> <TD> </TD> <TD nowrap align="center">4. Total of Column 2</TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="center" style="border-bottom: 0px solid #000000">I.</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Name</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Number</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Wages Paid</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">(e.g. fringe benefits)</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">and Column 3</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD align="left">II.</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">Total from any additional pages...</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left">Total Salaries and Wages Paid, total column 2</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD> </TD> <TD> </TD> <TD colspan="3" valign="top" align="left">Total Other Compensation (e.g. fringe benefits), total column 3</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="left">III.</TD> <TD> </TD> <TD colspan="3" valign="top" align="left">Total Salaries, Wages, and Other Compensation, total Col. 4</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>SETTLEMENT & CLOSING AGREEMENT</B></U><BR> <U><B>EXHIBIT C</B></U><BR> <U><B>SUPPLEMENTAL SCHEDULE II</B></U> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"></TD> <TD width="5%"></TD> <TD width="47%"></TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="top"> </TD> </TR> <TR valign="bottom"> <TD align="left" valign="top"><B><u>Purchases of Navajo Goods & Services</u></B> </TD> <TD> </TD> <TD align="right" valign="top"><B>Page _____ of _____ </B></TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="64%"> </TD> <TD width="5%"> </TD> <TD width="31%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><b>Company Name (Employer)</b> </DIV></TD> <TD> </TD> <TD align="right" valign="top"><b>Quarter Ended</b></TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Part A — Detail Purchases of Navajo Goods </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="36%"> </TD> <TD width="5%"> </TD> <TD width="45%"> </TD> <TD width="5%"> </TD> <TD width="9%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Type of Goods Purchased</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Vendor Name and Address</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Amount</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">Total amount</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Part B — Detail of Purchases of Navajo Services </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="36%"> </TD> <TD width="5%"> </TD> <TD width="45%"> </TD> <TD width="5%"> </TD> <TD width="9%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Type of Services Purchased</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Vendor Name and Address</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Amount</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">Total amount</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>SETTLEMENT & CLOSING AGREEMENT</B></U><BR> <U><B>EXHIBIT C</B></U><BR> <U><B>SUPPLEMENTAL SCHEDULE III</B></U> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="47%"></TD> <TD width="5%"></TD> <TD width="47%"></TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="top"> </TD> </TR> <TR valign="bottom"> <TD align="left" valign="top"><B><u>Detail of Payments Made to the Navajo Nation Government</u></B> </TD> <TD> </TD> <TD align="right" valign="top"><B>Page _____ of _____ </B></TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="64%"> </TD> <TD width="5%"> </TD> <TD width="31%"> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Company Name (Employer)</B> </DIV></TD> <TD> </TD> <TD align="right" valign="top"><B>Quarter Ended</B></TD> </TR> <!-- End Table Body --></TABLE> </DIV> <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Detail of Payments Made to the Navajo Nation Government </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="32%"> </TD> <TD width="5%"> </TD> <TD width="39%"> </TD> <TD width="5%"> </TD> <TD width="7%"> </TD> <TD width="5%"> </TD> <TD width="7%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000">Type of Payment</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Payee</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date of Payment</TD> <TD> </TD> <TD nowrap align="center" style="border-bottom: 1px solid #000000">Amount</TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom"><!-- Blank Space --> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top"> </TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="left" valign="bottom"> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> </DIV></TD> <TD> </TD> <TD align="left" valign="top">Total amount</TD> <TD> </TD> <TD align="right" valign="bottom"> </TD> <TD> </TD> <TD align="left" valign="bottom"> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --> <!-- /Folio --> </DIV> <!-- PAGEBREAK --> <P><HR noshade><P> <H5 align="left" style="page-break-before:always"> </H5><P> <DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in"> <DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Restated and Amended Settlement and Closing Agreement</B><BR> Exhibit D — Sample PIT Calculations </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Assumptions:</B></U> </DIV> <DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Original Cost of Facilities on Navajo Nation:</B> </DIV> <DIV align="center"> <TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --><TR valign="bottom"> <TD width="86%"> </TD> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="9%"> </TD> <TD width="1%"> </TD> </TR> <TR style="font-size: 10pt" valign="bottom"> <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B><I>Property Group</I></B></TD> <TD> </TD> <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B><I>Original Cost*</I></B></TD> <TD> </TD> </TR> <!-- End Table Head --> <!-- Begin Table Body --> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Units 1 - 3</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>400,000,000</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Units 4 - 5</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>200,000,000</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Common</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>100,000,000</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>T & D</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>100,000,000</B></TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>TOTAL</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>800,000,000</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Current PIT Settlement Payment:</B></DIV></TD> <TD> </TD> <TD align="left"><B>$</B></TD> <TD align="right"><B>6,342,600</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Salvage Value = Original Cost x 5%</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>In-lieu-of-Tax Rate for Salvage = 3%</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Sample Calculation for Shut Down of Units:</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Assume Permanent Shut Down of Units 1 - 3</I></B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Salvage Value of Units 1 - 3 = Original Cost x 5%</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>$400M x 5% =</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>20,000,000</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>In-lieu-of tax on Units 1 - 3 = Salvage Value x In-lieu-of Tax Rate</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>$20M x 3%=</B></DIV></TD> <TD> </TD> <TD> </TD> <TD align="right"><B>600,000</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Calc. of PIT for Remaining Property in Service:</I></B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Original Cost of Remaining Property In Service/Total Original Cost</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>$400M/800M =</B></DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right"><B>50.00</B></TD> <TD nowrap><B>%</B></TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PIT on Remaining Property</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>0.50 x $6,342,600=</B></DIV></TD> <TD> </TD> <TD align="left"><B>$</B></TD> <TD align="right"><B>3,171,300</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>New PIT After Permanent Shut Down of Units 1 - 3:</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>In-lieu-of tax + PIT on Remaining Property =</B></DIV></TD> <TD> </TD> <TD align="left"><B>$</B></TD> <TD align="right"><B>3,771,300</B></TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Sample Calculation if APS Adds a Unit:</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Assume APS Adds $1B Unit</I></B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Calculation of Increase Factor = Current PIT Settlement Payment/Total Original Cost</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>$6,342,600/$800M =</B></DIV></TD> <TD> </TD> <TD nowrap align="left"> </TD> <TD align="right"><B>0.7928</B></TD> <TD nowrap><B>%</B></TD> </TR> <TR valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Calculation of PIT on New Unit = Original Cost of New Unit x Factor</B></DIV></TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff; padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>$1B x 0.007928 =</B></DIV></TD> <TD> </TD> <TD align="left"><B>$</B></TD> <TD align="right"><B>7,928,250</B></TD> <TD> </TD> </TR> <TR valign="bottom" style="padding-top: 1px"> <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Existing PIT =</B></DIV></TD> <TD> </TD> <TD align="left"><B>$</B></TD> <TD align="right"><B>6,342,600</B></TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000"> </TD> <TD> </TD> </TR> <TR valign="bottom" style="background: #cceeff"> <TD><DIV style="margin-left:15px; text-indent:-15px"><B>New PIT After Addition of Unit</B></DIV></TD> <TD> </TD> <TD align="left"><B>$</B></TD> <TD align="right"><B>14,270,850</B></TD> <TD> </TD> </TR> <TR style="font-size: 1px"> <TD><DIV style="margin-left:15px; text-indent:-15px"> </DIV></TD> <TD> </TD> <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000"> </TD> <TD> </TD> </TR> <!-- End Table Body --></TABLE> </DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <TR style="font-size: 6pt"> <TD width="3%"> </TD> <TD width="1%"> </TD> <TD width="96%"> </TD> </TR> <TR valign="top"> <TD nowrap align="left"><B>*</B></TD> <TD> </TD> <TD><B>Original Costs are not actual original costs, these costs are for illustration purposes only.</B></TD> </TR> </TABLE> <P align="center" style="font-size: 10pt"> <P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio --> </DIV> </BODY> </HTML>