EXHIBIT 10.13-01

   
                                          December 19, 1996



Mr. John Horne
Vice President, Power Supply
El Paso Electric Company
303 North Oregon
El Paso, TX 79960-0982
            
                                         Re:     Partial Requirements Service


Dear Mr. Horne:

Southwestern Public Service Company ("SPS") has an interconnection agreement
with El Paso Electric Company ("EPE"). Service Schedule E attached to this
interconnection agreement provides for firm power service from SPS to EPE. This
service schedule currently provides for EPE to purchase a minimum of 75,000 KW
during the contract year of 1997.

This letter agreement shall modify Service Schedule E, attached to the
interconnection agreement in order to change EPE's purchase requirement to a
minimum of 35,000 KW for the 1997 contract year. Specifically, SPS shall modify
Service Schedule E as follows:

   Section 2.2   This Service Schedule E shall remain effective through
   December 31, 1997, and shall be extended month to month thereafter until
   canceled by either Party upon a minimum of thirty (30) days prior written
   notice to the other Party.

   Section 3.1.  The minimum Firm Power Commitment for Contract Years
   beginning on the Effective Date through December 31, 1997, shall be as
   follows:


                                  Minimum Firm
             Contract Year      Power Commitment  
             -------------      ----------------
                             
                 1992              50,000 KW
                 1993              50,000 KW
                 1994              50,000 KW
                 1995              50,000 KW
                 1996              75,000 KW
                 1997              35,000 KW


December 19, 1996
Page 2

 
If these changes to our existing Service Schedule E are acceptable to EPE,
please execute this letter at the bottom and return to me at your earliest
convenience.


                                AGREED TO AND APPROVED BY:

                                Southwestern Public Service Company



                                       /s/ GARY L. GIBSON
                                ------------------------------------
                                Gary L. Gibson
                                Vice President - Marketing


AGREED TO AND APPROVED BY:

El Paso Electric Company



   /s/ JOHN C. HORNE
- ---------------------------------
Signed


Vice President - Power Generation
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Title


December 20, 1996
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Date