EXHIBIT 10.7.1
MODIFICATION NO. 4
TO
SAN JUAN PROJECT OPERATING AGREEMENT
BETWEEN
PUBLIC SERVICE COMPANY OF NEW MEXICO
AND
TUCSON ELECTRIC POWER COMPANY
This Modification No. 4 to the San Juan Project Operating Agreement
between PUBLIC SERVICE COMPANY OF NEW MEXICO ("New Mexico") and TUCSON ELECTRIC
POWER COMPANY ("Tucson"), hereinafter referred to collectively as the "Parties"
or "Participants," is hereby entered into and executed this 25 day of October,
1984.
WITNESSETH:
WHEREAS, the Parties hereto entered into an agreement described as the
San Juan Project Operating Agreement effective January 1, 1973, as modified by
Modification No. 1 on May 16, 1979, Modification No. 2 on December 31, 1983 and
Modification No. 3 on July 17, 1984 ("Operating Agreement"), which establishes
certain terms and conditions relating to their participation and responsibility
in the operation of the San Juan Project;
- 1 -
WHEREAS, the Parties desire to clarify operation and maintenance cost
responsibilities associated with the San Juan Project as a result of the
contemplated October 31, 1984 conveyance of Tucson's San Juan Unit 3 ownership
interest to Alamito Company ("Alamito") pursuant to the purchase agreement
between Tucson and Alamito dated October 1, 1984 ("San Juan Unit No. 3 Purchase
Agreement").
NOW THEREFORE, the Parties agree that the Operating Agreement is hereby
amended as follows:
1.0 Effective Date. This Modification No. 4 shall become
effective immediately upon Tucson's conveyance of its San Juan Unit
3 ownership interest to Alamito.
2.0 Amended Section 5.38. Section 5.38 shall be amended to
read as follows:
5.38 PARTICIPATION SHARE: Each Participant's and Unit
Participant's percentage ownership in the San Juan Project as set forth
in Section 6 of the Co-Tenancy Agreement. 3.0 New Section 7.3.2. A new
Section 7.3.2 shall be added to Section 7, after Section 7.3.1, to read
in its entirety as follows:
7.3.2 With respect to matters involving and not solely related
to San Juan Unit 3, Tucson, as a Participant holding voting rights on
the Coordination Committee, shall retain such voting rights for
Alamito, with the obligation to consult with Alamito on all matters
involving the San Juan Project with affect San Juan Unit 3 as set forth
in the San Juan Unit No.
- 2 -
3 Purchase Agreement.
4.0 Amended Section 7.7. Section 7.7 shall be amended to read in its
entirety as follows:
7.7 In the event the Coordination Committee fails to reach
agreement on a matter that has earlier been determined to relate solely
to a specific San Juan generating unit, which such committee is
authorized to determine, approve, or otherwise act upon after a
reasonable opportunity to do so, then the Operating Agent (as said term
is defined in this Operating Agreement) shall be authorized and
obligated to take such action as in its discretion it deems to be
necessary to the successful and proper construction, operation and
maintenance of such unit, pending the resolution, by arbitration or
otherwise, of any such inability or failure to agree. 5.0 Amended
Section 17.1. Section 17.1 is amended to read in its entirety as
follows:
17.1 The expense for the operation and maintenance of the San
Juan Project which are chargeable to FERC Accounts 426, 500 , 502, 505,
506, 507 and 510 through 514; 556, 557A; and 924 (when appropriate)
shall be apportioned between the Participants and Unit Participants as
follows:
17.1.1 Prior to the Transfer Date in accordance with the
following percentages:
A. Participants
1. New Mexico - 50 percent
- 3 -
2. Tucson - 50 percent
17.1.2 On and after Tucson's conveyance of its San Juan 3
ownership interest to Alamito, in accordance with the following
schedule:
- 4 -
17.1.2.1 For San Juan Units 1 and 2 and for all equipment and
facilities directly related to Units 1 and 2 in accordance with the following
percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 50 percent
B. Unit Participants
1. M-S-R - percent
2. City of Farmington - 0 percent
3. Alamito - 0 percent
17.1.2.2 For San Juan Unit 3 and all equipment and facilities
directly related only to Unit 3 in accordance with the following
percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 0 percent
B. Unit Participants
1. M-S-R - 0 percent
2. City of Farmington - 0 percent
3. Alamito - 50 percent
17.1.2.3 For San Juan Unit 4 and for all equipment and
facilities directly related only to Unit 4 in accordance with the
following percentages:
A. Participants
1. New Mexico - 62.725 percent
2. Tucson - 0 percent
- 5 -
B. Unit Participants
1. M-S-R - 28.8 percent
2. City of Farmington - 8.475 percent
3. Alamito - 0 percent
17.1.2.4 For equipment and facilities common only to Units 1
and 2 in accordance with the following percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 50 percent
B. Unit Participants
1. M-S-R - 0 percent
2. City of Farmington - 0 percent
3. Alamito - 0 percent
17.1.2.5 For equipment and facilities common only to Units 3
and 4 in accordance with the following percentages:
A. Participants
1. New Mexico - 56.351 percent
2. Tucson - 0 percent
B. Unit Participants
1. M-S-R - 14.4 percent
2. City of Farmington - 4.249 percent
3. Alamito - 25 percent
17.1.2.6 For the Switchyard Facilities except as otherwise
provided in Section 15 of the Co-Tenancy Agreement, in accordance with
the following percentages:
- 6 -
A. Participants
1. New Mexico - 65 percent
2. Tucson - 35 percent
B. Unit Participants
1. M-S-R - percent
2. City of Farmington - 0 percent
3. Alamito - 0 percent
17.1.2.7 For the SO2 chemical plant system, except absorbers,
and for the chemical laboratory, including neutralizers, in accordance
with the following percentages:
A. Participants
1. New Mexico - 53.741 percent
2. Tucson - 19.8 percent
B. Unit Participants
1. M-S-R - 8.7 percent
2. City of Farmington - 2.559 percent
3. Alamito - 15.2 percent
17.1.2.8 Except as provided in Exhibit III(g), for equipment
and facilities common to all of the units and all project expenses not
identifiable by unit and not otherwise listed above, in accordance with
the following percentages:
A. Participants
1. New Mexico - 53.741 percent
2. Tucson - 19.8 percent
- 7 -
B. Unit Participants
1. M-S-R - 8.7 percent
2. City of Farmington - 2.559 percent
3. Alamito - 15.2 percent
17.1.3 In the event of a shutdown of either of Units 1 and/or
2 of the San Juan Project, the expenses incurred in connection with the
shutdown (including but not limited to removal, salvage, cleanup and
protection service) shall be equally apportioned between the
Participants. In the event of a shutdown of Unit 3, said expenses shall
be allocated as set forth in paragraph 17.1.2.2 above. In the event of
a shutdown of Unit 4, said expenses shall be allocated as set forth in
paragraph 17.1.2.3 above. Expenses which are attributable to equipment
and facilities common to more than one Unit shall be apportioned in
accordance with paragraph 17.1.2. 6.0 Amended Exhibit III. Exhibit III
(a-g) shall be amended to read in its entirety as shown on the
attached.
7.0 Amended Section 31.10. Section 31.10 shall be amended to read in
its entirety as follows:
31.10 Except as modified by the provisions set forth in
Modification No. 4, all of the terms and conditions of this
Operating Agreement, effective as of December 21, 1973, as
modified by Modification No. 1 as of May 16, 1979,
modification No. 2 as of December 31, 1983, and Modification
No. 3 as of July 17, 1984, shall remain in full force and
effect.
- 8 -
IN WITNESS WHEREOF, the Parties hereto have caused this Modification
No. 4 to the Operating Agreement to be executed this 25 day of October , 1984.
PUBLIC SERVICE COMPANY OF NEW MEXICO
Attest: By: /S/ J. L. Wilkins
-------------------------------
/S/ D. E. Peckham Its: Senior Vice President
- -----------------------
Secretary
TUCSON ELECTRIC POWER COMPANY
Attest: By: /S/
-------------------------------
/S/ Jean E. Kettlewell Its: Executive Vice President
- -----------------------
STATE OF NEW MEXICO )
) ss.
COUNTY OF BERNALILLO)
The foregoing instrument was acknowledged before me this 25th day of
October , 1984, by J. L. Wilkins, Senior Vice President of Public Service
Company of New Mexico, a New Mexico corporation, on behalf of said corporation.
/S/ Sherry Leeson
---------------------
Notary Public
My Commission Expires:
July 1, 1988
- 9 -
STATE OF ARIZONA)
) ss.
COUNTY OF PIMA )
The foregoing instrument was acknowledged before me this 22nd day of
October, 1984, by Einar Greve, of Tucson Electric, Power Company, an Arizona
corporation.
------------------------------------
Notary Public
My Commission Expires:
4/14/87
- 10 -
Exhibit III(a)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 1
Operation and Maintenance Costs
NewMexico - 50%; Tucson - 50%; M-S-R - 0%;
City of Farmington - 0%; Alamito - 0%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler, including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Start-up, Unit Auxiliary, and SO2 Scrubber Transformers
11. Bottom Ash System (up to but not including Dewatering Tank or
Ash Water Pump Building and Equipment)
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System
15. Emergency Diesel Generator
16. Electrical and Control Systems
17. SSR Protection System
18. Unit Specific Pumps for all Air Systems, Chemical Feed
Systems, and Hydrogen
- 11 -
Exhibit III(b)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 2
Operation and Maintenance Costs
NewMexico - 50%; Tucson - 50%; M-S-R - 0%;
City of Farmington - 0%; Alamito - 0%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler, including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Start-up, Unit Auxiliary, and SO2 Scrubber Transformers
11. Bottom Ash System (up to but not including Dewatering Tank or
Ash Water Pump Building and Equipment)
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System
15. Emergency Diesel Generator
16. Electrical and Control Systems
17. Unit Specific Piping for all Air Systems, Chemical Feed
Systems, and Hydrogen
- 12 -
Exhibit III(c)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 3
Operation and Maintenance Costs
New Mexico - 50%; Tucson - 0%; M-S-R - 0%;
City of Farmington - 0%; Alamito - 50%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler, including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Unit Auxiliary 3A and 3B Transformers
11. Bottom Ash System including: Hopper, Dewatering Tank,
Settling Tank, Surge Tank, and Pump House
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System
15. Emergency Diesel Generator
16. Electrical and Control Systems
17. Fuel Oil Ignitor Heaters and Unit Specific Piping
- 13 -
Exhibit III(c)
(Continued)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 3
Operation and Maintenance Costs
New Mexico - 50%; Tucson - 0%; M-S-R - 0%;
City of Farmington - 0%; Alamito - 50%
18. Unit Specific Piping for all Air Systems, Chemical Feed
Systems, and Hydrogen
19. SSR Protection System
- 14 -
Exhibit III(d)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 4
Operation and Maintenance Costs
New Mexico - 62.725%; Tucson - 0%; M-S-R -
28.8%; City of Farmington - 8.475%; Alamito - 0%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler including: Air Heaters, Pulverizers, Bunkers and
Feeders
5. Forced Draft Fans & Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Unit Auxiliary 4A and 4B Transformers
11. Bottom Ash System including Hopper, Dewatering Tank, Settling
Tank, Surge Tank, and Pump House
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System
15. Emergency Diesel Generator
16. Electrical and Control Systems
- 15 -
Exhibit III(d)
(Continued)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 4
Operation and Maintenance Costs
New Mexico - 62.725%; Tucson - 0%; M-S-R -
28.8%; City of Farmington - 8.475%; Alamito - 0%
17. Fuel Oil Ignitor Heaters and Unit Specific Piping
18. Unit Specific Piping for all Air Systems, Chemical Feed
Systems, and Hydrogen
- 16 -
Exhibit III(e)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNITS 1 AND 2
Operation and Maintenance Costs
NewMexico - 50%; Tucson - 50%; M-S-R - 0%;
City of Farmington - 0%; Alamito - 0%
1. Bearing Cooling Water System, except Unit Piping
2. Bottom Ash Dewatering Facility, including: Dewatering Tank,
Settling Tank, Surge Tank, Storage Tank, and Pump House
3. Demineralizer System including: Clarifier, Storage Tanks,
and Sump Pumps
4. Fuel Oil System (No. 2 Oil for Ingition and Flame
Stabilization)
5. Instrument Air System, except Unit Piping
6. Chemical Feed System, except Unit Piping
a. Condensate and Feedwater System
b. Boiler
c. Bearing Coding Water System
d. Cooling Tower Systems
e. Chlorination System
7. Plant Air System, except Unit Piping
8. Sootblowing Air System, except Unit Piping
9. Hydrogen Storage System, except Unit Piping
10. Coal Tripper System including Dust Collection System
11. Turbine Lube Oil Storage and Transfer System
12. Control Room, Equipment Rooms, and Associated HVAC System
13. SO2 Back-up Scrubber - Absorber Transformer
14. Turbine Crane South of Column Line 12
15. Fuel Oil, Ash, and Water Pipe Racks
16. Boiler Fill System
17. SAR Multiplexer Control System
- 17 -
Exhibit III(f)
FACILITIES AND EQUIPMENT
COMMON TO SAN JUAN UNITS 3 AND 4
Operation and Maintenance Costs
NewMexico - 56.351%; Tucson - 0%; M-S-R -
14.4%; City of Farmington - 4.249%; Alamito - 25%
1. Bearing Cooling Water System, except Unit Piping
2. Demineralizer System including: Sump Pumps, Filter Beds and
Storage Tanks
3. Fuel Oil System (No. 6 Oil for Ignition and Flame
Stabilization, except Ignitor Heaters and Unit Specific
Piping)
4. Instrument Air System, except Unit Piping
5. Chemical Feed System, except Unit Piping
a. Condensate & Feedwater System
b. Boiler
c. Bearing Cooling Water System
d. Cooling Tower System
e. Chlorination System
6. Plant Air System, except Unit Piping
7. Sootblowing Air System, except Unit Piping
8. Start-Up Transformers and Iso-Phase Bus to Units 3 and 4
Switchgear
9. Hydrogen Storage System, except Unit Piping
10. Coal Tripper System including Dust Collection Systems
11. Turbine Lube Oil Storage and Transfer System
12. Control Room, Equipment Rooms, and Associated HVAC System
13. Boiler Fill System
14. Auxiliary Cooling Systems including Auxiliary Cooling Tower
No. 1 and Pumps, but excepting No. 4 Tower Pumps and Piping
which is Unit Specific
- 18 -
Exhibit III(f)
(Continued)
FACILITIES AND EQUIPMENT
COMMON TO ALL SAN JUAN UNITS 3 AND 4
Operation and Maintenance Costs
NewMexico - 56.351%; Tucson - 0%; M-S-R -
14.4% City of Farmington - 4.249%; Alamito - 25%
15. CO2 Storage System, except Unit Piping
16. Start-Up Boiler Feed Pump, except Unit Piping
17. Turbine Bay Crane North of Column Line 12
18. Fuel Oil, Ash, and Water Pipe Racks
19. Fire Water Booster and Jockey Pumps
20. Halon Fire Protection System
21. Cooling Tower Multiplex Control System
- 19 -
Exhibit III(g)
FACILITIES AND EQUIPMENT
COMMON TO ALL SAN UNITS
Operation and Maintenance Costs
New Mexico - 53.741%; Tucson - 19.8%; M-S-R -
8.7% City of Farmington - 2.559; Alamito - 15.2%
1. River and Raw Water System including:
a. Diversion and intake structures, including all equipment
and pump building
b. Raw water line to reservoir
c. Reservoir, pump building, and all equipment
d. Raw water lines to plant yard
e. All above and underground fire protection system to each
vendor supplied fire protection system
2. Auxiliary boiler
3. SO2 System Chemical Plant, except Absorbers
a. Double effect evaporator train systems
b. Fly ash filter system
c. Absorber product and feed tanks
d. Condensate collection, storage, and transfer systems
e. Soda ash storage, mixing, and distribution systems
f. Sulfur plant
g. Sulfate purge system including: crystallizers,
centrifuges, evaporators, and salt cake system
h. Sulfuric acid plant system including: storage tanks and
load out system
i. Auxiliary No. 2 cooling tower, pumps, and systems
4. Spare Main Transformer 345/24 kV, for all Units
5. Maintenance, Office, and Warehousing Facilities
6. Chemical Laboratory
- 20 -
Exhibit III(g)
(Continued)
FACILITIES AND EQUIPMENT
COMMON TO ALL SAN UNITS
Operation and Maintenance Costs
New Mexico - 53.741%; Tucson - 19.8%; M-S-R -
8.7% City of Farmington - 2.559; Alamito - 15.2%
7. Coal and Ash Handling Control Facilities
8. Roads and Grounds Such as Fencing, Yard Lighting, Guard
Facilities, Drainage, and Dikes
9. Potable Water System
10. Environmental Monitoring including: Air, Water, and Ground,
excluding Stack Monitoring Systems
11. Transportation such as trucks, cars, and dozers (not otherwise
charged)
12. Water Management System
a. Wastewater Recovery System - Northside
(1) Neutralization system including: premix tanks,
neutralization tank, clarifier/thickener, and
pumps.
(2) Reverse osmosis system including line/soda
softening clarifier system
(3) Brine concentrator Nos. 4 and 5
(4) Centrifuge dewatering system
(5) Effluent Ppond No. 3 and pump system
(6) North evaporation ponds 1, 2, and 3
b. SO2 Waste Treatment System - Southside
(1) Effluent ponds 1A, 1B, 2 and pumping system
(2) Premix tank and clarifier system
(3) Oxidation towers
(4) Brine concentrator Nos. 1, 2, and 3
(5) Centrifuge dewatering system
(6) South evaporation pond Nos. 1, 2, 3, 4, and 5
c. Data Acquisition System
d. Plant Sludge Pit
- 21 -
Exhibit III(g)
FACILITIES AND EQUIPMENT
COMMON TO ALL SAN UNITS
Operation and Maintenance Costs
New Mexico - 53.741%; Tucson - 19.8%; M-S-R -
8.7% City of Farmington - 2.559; Alamito - 15.2%
13. Coal Handling Equipment - All equipment from all reclaim hoppers ending
at the chutes to the tripper conveyors. This includes: hoppers,
feeders, feeder belts, reclaim conveyors, plant conveyors, belt scales,
fire protection systems, dust suppression systems, magnetic separators,
all electrical and controls, and heating and ventilation systems.
14. Maintenance Bay Facilities including: Bay Bridge Crane, all
Offices, and Support Facilities
15. Sewage Treatment Facilities
- 22 -
EXHIBIT 10.7.2
MODIFICATION NO. 5
TO
SAN JUAN PROJECT OPERATING AGREEMENT
BETWEEN
PUBLIC SERVICE COMPANY OF NEW MEXICO
AND
TUCSON ELECTRIC POWER COMPANY
This Modification No. 5 to the San Juan Project Operating Agreement
between PUBLIC SERVICE COMPANY OF NEW MEXICO ("New Mexico") and TUCSON ELECTRIC
POWER COMPANY ("Tucson"), hereinafter referred to collectively as the "Parties"
or "Participants," is hereby entered into and executed as of the 1st day of
July, 1985.
WITNESSETH:
WHEREAS, the Parties entered into an agreement described as the San
Juan Project Operating Agreement effective January 1, 1973, as modified by
Modification No. 1 on May 16, 1979, Modification No. 2 on December 31, 1983,
Modification No. 3 on July 17, 1984, and Modification No. 4 on October 25, 1984
("Operating Agreement"), which establishes certain terms and conditions relating
to their participation and responsibility in the operation of the San Juan
Project; and
- 1 -
WHEREAS, on December 28, 1984, New Mexico and the Incorporated County
of Los Alamos, New Mexico ("Los Alamos County") entered into the Amended and
Restated San Juan Unit 4 Purchase and Participation Agreement ("County PPA"),
whereby Los Alamos County agreed to purchase from New Mexico a 7.20 percent
undivided ownership interest in Unit 4; and
WHEREAS, the County provides, among other things, that Los Alamos
County, upon closing of the transaction provided for in the County PPA, will
have the voting rights and obligations of a Unit Participant on San Juan Project
Committees as said rights and obligations are set forth in the Project
Agreement; and
WHEREAS, New Mexico and Tucson desire to clarify the rights and
responsibilities of Participants and Unit Participants in the San Juan Project
as a result of Los Alamos County's purchase of a 7.20 percent undivided interest
in Unit 4 pursuant to the County PPA.
NOW THEREFORE, the Parties agree that the Operating Agreement is hereby
amended as follows:
1.0 Effective Date. This Modification No. 5 shall become effective
immediately upon the closing of Los Alamos County's purchase of the 7.20 percent
undivided interest in Unit 4 pursuant to the County PPA, currently anticipated
to be July 1, 1985.
- 2 -
2.0 New Section 7.3.3. A new Section 7.3.3 shall be added to Section 7
to read in its entirety as follows:
7.3.3 With respect to matters involving and not solely related
to Unit 4, New Mexico will in good faith solicit the views of the City
of Farmington and Los Alamos County on matters involving the San Juan
Project which affect Unit 4.
3.0 Amended Section 17.1. Section 17.1 shall be amended to read in its
entirety as follows:
17.1 The expenses for the operation and maintenance of the San
Juan Project which are chargeable to FERC Accounts 426, 500, 502, 505,
506, 507, and 510 through 514; 556, 557A; and 924 (when appropriate)
shall be apportioned among the Participants and Unit Participants, as
follows:
17.1.1 Prior to the Transfer Date in accordance with the
following percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 50 percent
- 3 -
17.1.2 On and after Los Alamos County's purchase of the 7.20
percent undivided interest in Unit 4 pursuant to the County PPA, in
accordance with the following percentages:
17.1.2.1 For Units 1 and 2 and for all equipment and
facilities directly related to Units 1 and 2 in accordance with the
following percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 50 percent
B. Unit Participants
1. M-S-R - 0 percent
2. City of Farmington - 0 percent
3. Alamito - 0 percent
4. Los Alamos County - 0 percent
- 4 -
17.1.2.2 For Unit 3 and all equipment and facilities directly
related only to Unit 3 in accordance with the following percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 0 percent
B. Unit Participants
1. M-S-R - 0 percent
2. City of Farmington - 0 percent
3. Alamito - 50 percent
4. Los Alamos County - 0 percent
17.1.2.3 For Unit 4 and for all equipment and facilities
directly related only to Unit 4 in accordance with the following
percentages:
A. Participants
1. New Mexico - 55.525 percent
2. Tucson - 0 percent
- 5 -
B. Unit Participants
1. M-S-R - 28.8 percent
2. City of Farmington - 8.475 percent
3. Alamito - 0 percent
4. Los Alamos County - 7.20 percent
17.1.2.4 For equipment and facilities common only to Units 1
and 2, in accordance with the following percentages:
A. Participants
1. New Mexico - 50 percent
2. Tucson - 50 percent
B. Unit Participants
1. M-S-R - 0 percent
2. City of Farmington - 0 percent
3. Alamito - 0 percent
4. Los Alamos County - 0 percent
- 6 -
17.1.2.5 For equipment and facilities common only to Units 3
and 4, in accordance with the following percentages:
A. Participants
1. New Mexico - 52.739 percent
2. Tucson - 0 percent
B. Unit Participants
1. M-S-R - 14.4 percent
2. City of Farmington - 4.249 percent
3. Alamito - 25 percent
4. Los Alamos County - 3.612 percent
17.1.2.6 For the Switchyard Facilities except as otherwise
provided in Section 15 of the Co-Tenancy Agreement, in accordance with
the following percentages:
A. Participants
1. New Mexico - 65 percent
2. Tucson - 35 percent
- 7 -
B. Unit Participants
1. M-S-R - 0 percent
2. City of Farmington - 0 percent
3. Alamito - 0 percent
4. Los Alamos County - 0 percent
17.1.2.7 For the SO2 chemical plant system, except absorbers,
and for the chemical laboratory, including neutralizers, in accordance
with the following percentages:
A. Participants
1. New Mexico - 51.566 percent
2. Tucson - 19.8 percent
B. Unit Participants
1. M-S-R - 8.7 percent
2. City of Farmington - 2.559 percent
3. Alamito - 15.2 percent
4. Los Alamos County - 2.175 percent
17.1.2.8 Except as provided in Exhibit III(g), for equipment
and facilities common to all of the units, and all Project expenses not
identifiable by unit and not otherwise listed above, in accordance with
the following percentages:
- 8 -
A. Participants
1. New Mexico - 51.566 percent
2. Tucson - 19.8 percent
B. Unit Participants
1. M-S-R - 8.7 percent
2. City of Farmington - 2.559 percent
3. Alamito - 15.2 percent
4. Los Alamos County - 2.175 percent
17.1.3 In the event of a shutdown of any either of Units 1
and/or 2, the expenses incurred in connection with the shutdown
(including but not limited to removal, salvage, cleanup, and protection
service) shall be equally apportioned between the Participants. In the
event of a shutdown of Unit 3, said expenses shall be allocated as set
forth in Paragraph 17.1.2.2 above. In the event of a shutdown of Unit
4, said expenses shall be allocated as set forth in Paragraph 17.1.2.3.
Expenses which are attributable to equipment and facilities common to
more than one unit shall be apportioned in accordance with paragraph
17.1.2.
4.0 Amended Exhibit III. Exhibit III (a-i) shall be amended to read in
its entirety as shown on the attached.
- 9 -
5.0 Amended Section 31.10. Section 31.10 shall be amended to read in
its entirety as follows:
31.10 Except as modified by the provisions set forth in
Modification No. 5, all of the terms and conditions of the Operating
Agreement, effective as of January 1, 1973, as modified by Modification
No. 1 on May 16, 1979, Modification No. 2 on December 31, 1983,
Modification No. 3 on July 17, 1984, and Modification No. 4 on October
25, 1984, shall remain in full force and effect.
6.0 Amended Section 32. Section 32 shall be amended to read in its
entirety as follows:
32.0 RECOGNITION OF M-S-R , THE CITY OF FARMINGTON, ALAMITO
AND LOS ALAMOS COUNTY ACKNOWLEDGEMENT.
32.1 The Parties recognize that M-S-R, the City of Farmington,
Alamito, and Los Alamos County, each has acknowledged that it is
familiar with the Project Agreements as amended between New Mexico and
Tucson and such agreements govern the activities of the San Juan
Project. Where a specific provision of the EPPA, the Farmington PAPA,
or the County PPA is in conflict with the provision in one or more of
the Project Agreements, then (a) as between New Mexico and M-S-R, the
provisions of the EPPA shall govern, all as provided in Section 5.2 of
such EPPA, and (b) as between New Mexico and the City of Farmington,
- 10 -
the provisions of the Farmington PAPAshall govern, all as provided in
Section 8.2 of the Farmington PAPA, and (c) as between New Mexico and
Los Alamos County, the provisions of the County PPA shall govern, all
as provided in Section 5.2 of the County PPA. "EPPA" shall mean the San
Juan Unit 4 Early Purchase and Participation Agreement entered into by
New Mexico and M-S-R on September 26, 1983. "Farmington PAPA" shall
mean the San Juan Unit 4 Purchase Agreement and Participation Agreement
entered into by New Mexico and the City of Farmington on November 17,
1981. "County PPA" shall mean the Amended and Restated San Juan Unit 4
Purchase and Participation Agreement entered into by New Mexico and Los
Alamos County on December 28, 1984.
IN WITNESS WHEREOF, the Parties hereto have caused this Modification
No. 5 to the Operating Agreement to be executed as of the 1st day of July, 1985.
- 11 -
PUBLIC SERVICE COMPANY OF NEW MEXICO
Attest: By: /S/ J. L. Wilkins
-------------------------------
/S/ M. Mason-Plunkett Its: Senior Vice President,
- ------------------------- Power Supply
Secretary
TUCSON ELECTRIC POWER COMPANY
Attest: By: /S/
-------------------------------
/S/ Its: President
- -------------------------
Assistant Secretary
STATE OF NEW MEXICO
ss.
COUNTY OF BERNALILLO
The foregoing instrument was acknowledged before me this 24th day of
June , 1985, by J. L. Wilkins, a Senior Vice President of Public Service Company
of New Mexico, a New Mexico corporation, on behalf of said corporation.
/S/ Sherry Leeson
--------------------
Notary Public
My Commission Expires:
July 1, 1988
STATE OF ARIZONA)
) ss.
COUNTY OF PIMA )
The foregoing instrument was acknowledged before me this 14th day of
June , 1985, by Einar Greve , an Arizona corporation.
/S/
--------------------
Notary Public
My Commission Expires:
January 9, 1987
- 12 -
Exhibit III(a)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 1
Operation and Maintenance Costs
New Mexico - 50% Tucson - 50%
M-S-R - 0% City of Farmington - 0%
Alamito - 0% Los Alamos County - 0%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Start-up, Unit Auxiliary, and SO2 Scrubber Transformers
11. Bottom Ash System (Up to but not including Dewatering Tank or
Ash Water Pump Building and Equipment.)
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and Flue Gas
Reheat System including the 650-pound Reheat Steam Line and
Desuperheater from the Plant Main Steam Line but not including the
165-pound Control Valve and Branch Line to the Chemical Plant.
15. Emergency Diesel Generator
- 1 -
Exhibit III(a)
(continued)
16. Electrical and Control Systems
17. SSR Protection System
18. Unit Specific Piping for All Air Systems, Chemical Feed
Systems, and Hydrogen
- 2 -
Exhibit III(b)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 2
Operation and Maintenance Costs
New Mexico - 50% Tucson - 50%
M-S-R - 0% City of Farmington - 0%
Alamito - 0% Los Alamos County - 0%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Start-up, Unit Auxiliary, and SO2 Scrubber Transformers
11. Bottom Ash System (Up to but not including Dewatering Tank or
Ash Water Pump building and equipment.)
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System including the 650-pound Reheat Steam
Line and Desuperheater from the Plant Main Steam Line but not
including the 165-pound Control Valve and Branch Line to the
Chemical Plant
15. Emergency Diesel Generator
- 3 -
Exhibit III(b)
(continued)
16. Electrical and Control Systems
17. Unit Specific Piping for all Air Systems, Chemical Feed
Systems, and Hydrogen
- 4 -
Exhibit III(c)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 3
Operation and Maintenance Costs
New Mexico - 50% Tucson - 0%
M-S-R - 0% City of Farmington - 0%
Alamito - 50% Los Alamos County - 0%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Unit Auxiliary 3A and 3B Transformers
11. Bottom Ash System including: Hopper, Dewatering Tank,
Settling Tank, Surge Tank, and Pump House
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System including the Reheat Steam Line from
the Auxiliary Steam Header
15. Emergency Diesel Generator
16. Electrical and Control Systems
- 5 -
Exhibit III(c)
(continued)
17. Fuel Oil Ignitor Heaters and Unit Specific Piping
18. Unit Specific Piping for all Air Systems, Chemical Feed
Systems, and Hydrogen
19. SSR Protection System
20. Auxiliary Steam Header Piping System:
a. Including the Unit Specific Branch Line to the Reheat
System
b. Not included is the Branch Line to the Chemical Plant
- 6 -
Exhibit III(d)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNIT NO. 4
Operation and Maintenance Costs
New Mexico - 55.525% Tucson - 0%
M-S-R - 28.8% City of Farmington - 8.475%
Alamito - 0% Los Alamos County - 7.20%
1. Turbine Generator
2. Condenser
3. Condensate and Feedwater System
a. Condensate Pumps
b. Feedwater Heaters
c. Boiler Feed Pumps
d. Storage Tanks
4. Boiler including: Air Heaters, Pulverizers, Bunkers, and
Feeders
5. Forced Draft Fans and Primary Air Fans
6. Precipitator
7. Stack and Stack Monitoring System
8. Cooling Tower
9. Circulating Water Pumps
10. Main, Unit Auxiliary 4A and 4B Transformers
11. Bottom Ash System including: Hopper, Dewatering Tank,
Settling Tank, Surge Tank, and Pump House
12. Fly Ash System
13. Building HVAC Systems
14. SO2 Absorbers, Scrubbers, Transfer Pumps, Booster Fans, and
Flue Gas Reheat System including the Reheat Steam Line from
the Auxiliary Steam Header
15. Emergency Diesel Generator
16. Electrical and Control Systems
- 7 -
Exhibit III(d)
(continued)
17. Fuel Oil Ignitor Heaters and Unit Specific Piping
18. Unit Specific Piping for all Air Systems, Chemical Feed
Systems, and Hydrogen
19. Auxiliary Steam Header Piping System:
a. Including the Unit Specific Branch Line to the Reheat
Steam
b. Not including the Branch Line to the Chemical Plant
- 8 -
Exhibit III(e)
FACILITIES AND EQUIPMENT
SPECIFIC TO SAN JUAN UNITS 1 AND 2
Operation and Maintenance Costs
New Mexico - 50% Tucson - 50%
M-S-R - 0% City of Farmington - 0%
Alamito - 0% Los Alamos County - 0%
1. Bearing Cooling Water System except Unit Piping
2. Bottom Ash Dewatering Facility including: Dewatering Tank,
Settling Tank, Surge Tank, Storage Tank, and Pump House
3. Fuel Oil System (No. 2 Oil for Ignition and Flame
Stabilization)
4. Instrument Air System, except Unit Piping
5. Chemical Feed System, except Unit Piping
a. Condensate and Feedwater System
b. Boiler
c. Bearing Cooling Water System
d. Cooling Tower Systems
e. Chlorination System
6. Plant Air System, except Unit Piping
7. Sootblowing Air System except Unit Piping
8. Hydrogen Storage System except Unit Piping
9. Coal Tripper System including Dust Collection System
10. Turbine Lube Oil Storage and Transfer System
11. Control Room, Equipment Rooms, and Associated HVAC System
12. SO2 Back-up Scrubber - Absorber Transformer
13. Turbine Crane south of column, Line 12
14. Fuel Oil, Ash, and Water Pipe Racks
15. Boiler Fill System
16. SAR Multiplexer Control System
- 9 -
Exhibit III(f)
FACILITIES AND EQUIPMENT
COMMON TO SAN JUAN UNITS 3 AND 4
Operation and Maintenance Costs
New Mexico - 52.739% Tucson - 0%
M-S-R - 14.4% City of Farmington - 4.249%
Alamito - 25% Los Alamos County - 3.612%
1. Bearing Cooling Water System except Unit Piping
2. Fuel Oil System (No. 6 Oil for Ignition and Flame
Stabilization except Ignitor Heaters and Unit Specific Piping)
3. Instrument Air System except Unit Piping
4. Chemical Feed System except Unit Piping
a. Condensate and Feedwater System
b. Boiler
c. Bearing Cooling Water System
d. Cooling Tower Systems
e. Chlorination System
5. Plant Air System except Unit Piping
6. Sootblowing Air System except Unit Piping
7. Start-Up Transformers and Nonseg Bus to Units 3 and 4
Switchgear
8. Hydrogen Storage System except Unit Piping
9. Coal Tripper System including Dust Collection Systems
10. Turbine Lube Oil Storage and Transfer System
11. Control Room, Equipment Rooms, and Associated HVAC System
12. Boiler Fill System
13. Auxiliary Cooling Systems including Auxiliary Cooling Tower
No. 1 and pumps, but excepting No. 4 Tower Pumps and Piping
which is Unit Specific
- 10 -
Exhibit III(f)
(continued)
14. CO2 Storage System except Unit Piping
15. Start-Up Boiler Feed Pump except Unit Piping
16. Turbine Bay Crane north of column, Line 12
17. Fuel Oil, Ash, and Water Pipe Racks
18. Fire Water Booster and Jockey Pumps
19. Halon Fire Protection System
20. Cooling Tower Multiplex Control System
- 11 -
Exhibit III(g)
FACILITIES AND EQUIPMENT
COMMON TO ALL FOUR SAN JUAN UNITS
Operation and Maintenance Costs
New Mexico - 51.566% Tucson - 19.8%
M-S-R - 8.7% City of Farmington - 2.559%
Alamito - 15.2% Los Alamos County - 2.175%
1. River and Raw Water System including:
a. Diversion and intake structures, including all equipment
and pump building.
b. Raw water line to reservoir.
c. Reservoir, pump buildings, and all equipment.
d. Raw water lines to plant yard.
e. All above and underground fire protection system to each
vendor supplied or unit specific fire protection system.
2. Auxiliary boiler
3. SO2 System Chemical Plant except Absorbers
a. Double effect evaporator train systems.
b. Fly ash filter system.
c. Absorber product and feed tanks.
d. Condensate collection, storage, and transfer systems.
e. Soda ash storage, mixing, and distribution systems.
f. Sulfur plant.
g. Sulfate purge system including: crystallizers,
centrifuges, evaporators, and salt cake system.
h. Sulfuric acid plant system including storage tanks and
load out system.
i. Auxiliary No. 2 cooling tower, pumps, and systems.
4. Spare Main Transformer 345/24 kV for all units
5. Maintenance, Office, and Warehousing Facilities
- 12 -
Exhibit III(g)
(continued)
6. Chemical Laboratory
*7. Coal and Ash Handling Control Facilities
8. Roads and grounds such as fencing, yard lighting, guard
facilities, drainage, and dikes.
9. Potable Water System
10. Environmental Monitoring Systems including Air, Water, and
Ground. Excludes Stack Monitoring Systems which are unit
specific
11. Transportation such as trucks, cars, and dozers (not
otherwise charged).
12. Water Management System
a. Wastewater Recovery System - Northside
(1) Neutralization system including premix tank,
neutralization tank, clarifier/thickener, and pumps.
(2) Reverse osmosis system including line/soda
softening clarifier system.
(3) Brine concentrator Nos. 4 and 5.
(4) Centrifuge dewatering system.
(5) Effluent pond No. 3 and pump system.
(6) North evaporation ponds 1, 2, and 3.
b. SO2 Waste Treatment System - Southside
(1) Effluent ponds 1A, 1B, 2 and pumping system.
(2) Premix tank and clarifier system.
(3) Oxidation towers.
(4) Brine concentrator Nos. 1, 2, and 3.
(5) Centrifuge dewatering system.
(6) South evaporation pond Nos. 1, 2, 3, 4, and 5.
c. Data Acquisition System
d. Solid Waste Disposal Pit
*13. Coal Handling Equipment - all equipment from all reclaim hoppers ending
at the chutes to the tripper conveyors. This includes: hoppers,
feeders, feeder belts, reclaim conveyors, plant conveyors, belt scales,
fire protection systems, dust suppression systems, magnetic separators,
all electrical and controls, and heating and ventilation systems.
*Maintenance Only.
- 13 -
Exhibit III(g)
(continued)
14. Maintenance Bay Facilities including: Bay Bridge Crane, all
Offices, and Support Facilities
15. Sewage Treatment Facilities
16. All Demineralizer Systems including: Clarifier, Storage
Tanks, Sump Pumps, Filter Beds, and Control Systems
17. The Chemical Plant 165-pound Control Valve and Branch Line
from each of Units 1 and 2 Unit Specific 650-pound Reheat
Steam Line
18. The Chemical Plant Branch Steam Line from (but not
including) the Unit Specific Auxiliary Steam Header System
on each of Units 3 and 4.
- 14 -
Exhibit III(h)
FACILITIES AND EQUIPMENT
COMMON TO ALL FOUR SAN JUAN UNITS
Operation Costs Only
New Mexico
M-S-R
Tucson Variable split based on generation by unit.
City of Farmington
Alamito
Los Alamos County
1. Coal and Ash Handling Control Facilities
2. Coal Handling Equipment
All equipment from all reclaim hoppers ending at the chutes to the
tripper conveyors. This includes: hoppers, feeders, feeder belts,
reclaim conveyors, plant conveyors, belt scales, fire protection
systems, dust suppression systems, magnetic separators, all electrical
and control, and heating and ventilation systems.
- 15 -
Exhibit III(i)
SWITCHYARD FACILITIES AND EQUIPMENT
Operation and Maintenance Costs
New Mexico - 65% Tucson - 35%