R;:~;;;Rative, Inc

cfea Count';! £/ectric Cooperative, .Jnc. P.O. Drawer 1447 1300 West Avenue D Lovington, NM 88260

GARY L HURSE TELEPHONE Executive Vice President For Our Customers' Convenience (575) 396-3631 & General :CVfanager 1-800-510-5232 (LCEC) FAX (575) 396-3634

April 17, 2014

NMPRC Records Management Bureau 1120 Paseo de Peralta P.O. Box 1269, PERA Building Room 406 Santa Fe, NM 87504-1269

Gentlemen:

We are enclosing our completed Annual Report on our New Mexico System for the year ending December 31, 2013, a copy of our 2013 Annual Report, RUS Form 7, and NMAC Rule 17.3.510, Form 1. We have a new Power Requirements Study (load growth forecast), a Ten Year Financial Forecast and a Four Year Work Plan dated 2012 to submit as required by NMAC 17.1.2.51 (A). The report required by NMAC Rule 17.3.510.12(8) is also enclosed. We are a rural electric cooperative and therefore have not engaged in any of the activities covered by NMAC references 17 .1.2.51 (E) and 17 .6.450. l 3(A) and (B).

Respectfully submitted, ;r;:~;;;rative, Inc

Michael L. Faris Manager of Accounting

Enclosures RURAL ELECTRIC COOPERATIVES

Annual Report

7J ::0 c:: ·-o o:;;, ::::0 O r- .. 0 -· N 3:0 Of N ~ 3: ::tJ r -- rn ,-,, (/) G) l ::D O (/) C: < ::3 -· ,- 2 i:i,. ' 4'L- -~ ) 0 z

Lea County Electric Cooperative, Inc. (Exact legal name of Respondent)

Total System

and

New Mexico System

TO THE

NEW MEXICO

PlJBL.I(~ REGULATK)N CC)MMISSION

FOR THE

YEAR ENDED DEC;EMBER 31 l 2013 RURAL ELECTRIC COOPERATIVES

Annual Report

Lea County Electric Cooperative, Inc. (Exact legal name of Respondent)

Total System

TO THE

NEW MEXICO

PUBLIC REGULATION COMMISSION

FOR THE

YEAR ENDED [)E(;EMBER 3·1, 2013 LONG TERM DEBT (Accounts 221-228) To PUC INTEREST FOR YEAR Line Note Whom Decision Date of Date of Principal Amount AMOUNT OUTSTANDING For Balance No. I dent. Issued No. Issue Maturity Sheet Principal Deferred Interest Rate Amount l 4303 RUS Jun-80 Jun-15 $ 236,161 $ 2,665 $ - $ 2,665 2.00% $ 55 2 IB340 RUS Apr-94 Apr-29 $ 2,207.000 $ 778,093 $ - $ 778,093 1.50% $ 12.839 3 [8346 RUS Apr-94 Apr-29 $ 2.207,000 $ 1,115,365 $ - $ 1,115,365 5.12% $ 58.478 4 Total $ 4,650,161 s 1,896,123 (sec Note 1) $ 1,896,123 $ 71,372 5 6 HOOIO FFB May-03 May-38 s 5,970,000 $ 5,026.724 $ - $ 5,026,724 3.96% s 198,907 7 H0015 FFB Sep-05 Dcc-37 s 3,136,000 $ 2,560,213 s - $ 2,560,213 2.38% s 60.933 8 110020 FFB Sep-07 Sep-42 $ 4.833,000 $ 4,149.217 $ - $ 4,149,217 3.33% s 138,169 9 H0025 FFB May-II Dcc-43 $ 10,000.000 $ 9.290,796 $ - $ 9,290,796 2.36% s 219.356 10 H0030 FFB Feb-12 Dcc-43 $ 12,807,000 $ 12,214,268 $ - $ 12,214,268 2.63% $ 321,235 II H0035 FFB Mar-13 Dcc-43 $ 10.938,237 $ 10,773,530 $ 10.773,530 2.66% $ 176,603 12 Total $ 47,684,237 $ 44,014,748 (see Note 2) s 44,014,748 s 1,115,203 13 14 189566 CoBank Mar-I I Sep-16 $ 6,222,482 $ 4.865,964 $ - $ 4.865,964 4.50% $ 235,257 15 Total $ 6,222,482 s 4,865,964 (see Note 3) $ 4,865,964 $ 235,257 16 17 9001 CFC Dec-83 Oct-18 $ 2,741,000 $ 889,020 $ $ 889,020 6.85% $ 64,552 18 9002 CFC Jan-91 Apr-26 $ 2,359,000 $ 1,463,085 $ - $ 1,463,085 2.90% $ 44,665 19 9003 CFC Apr-94 Jul-29 $ 1.892,000 $ 888.667 $ $ 888,667 2.90% $ 27,318 20 Total $ 6,992,000 $ 3,240,772 (sce Note 4) $ 3,240,772 $ 136,535 21 22 23 24 25 26 27 28 29 30 31 Total $ 65,548,880 $ 54,017,607 $ - $ 54,017,607 s 1,558,367 32 Less: Advance Payments Unapplied-Account 227 $ 8,830,522 $ - $ (8,830,522) $ .. :11.11 .,.. ______To1lall $ ,1(5, l 87.,0S.S $ $ 4:;:,n:i:7,iirn:;: I $ ll ,5Sll:.,]IJ,7 ...... ,.... , ..... ,.. , ..., .. ,.,, .... , ...... ,., ... ,., .... , .... ,...... , ..... , ...... , -, . ------··-··---...... """"""" ...... """"""""""""""""'" ····································•············r·· ...... - .... 1···-··---······ i ------·------·------·----·------·--·-· ______,. ____ ,_,_, ____ ,___ ,., ....., ..... ,., .. ,... ,. .,.,.,.

Note I:: l'rinciipal arno1.1nII inch.11.ks $ II 1U.OOO frK pri n1.:ipal paymcnls due wi1Ihii11 12 rr101llh:;:, RI JS II:om1 7 dluc.:·d lice: tbi'is amo11nI· :IIs u 1.:urrc11II liahiliily. Nntc 2:: l'rim:iipal :rnIu11nII includes $11 .. 152.,000 Elr princip:.11I p,I1y111cIIIls due wilhin 12 monlh:;: HUS Fonn 7 cl:issilks tlii:; rnnmmt as :.11 curr,;:11t liabilily. (,Jol.c 3:: l'rini:·iipal am,.1111I,I1 includes $526,000 for priincipal payment:;, due wi liliin ! 2 rnonlhs:: Rl. !S hmn 7 dl.is,,ifies this mnount as a ci..irn;nII I iahiliity. Nole 4: l'rinCipal ,11nounI1 i11cludcs $2 1)4,000 for prii11cipal paym,:nl.::,, due wilhiin 12 1urn1th:,:: RI 1:,; Form 7 da:-,,:iih::-; this mnnunl a c1urcn1I liahiliily.

4/14/201,4 ANN REl'I TOTAL SYSTEM Page 1

ELECTRIC OPERATION AND MAINTENANCE EXPENSES

1. Enter in the space provided the operation and maintenance 2. If the increases and decreases are not derived from pre- expenses for the year. viously reported figures explain in footnotes. Increase or Amount for decrease from Line Account current year preceding year No. la] [b] [c) 1 POWER PRODUCTION EXPENSES 2 STEAM POWER GENERATION 3 Operation 4 500 Operation supervision and engineering $ - 5 501 Fuel $ - 6 502 Steam expenses $ - 7 503 Steam from other sources $ - 8 5 04 Stearn transferred - Cr $ - 9 505 Electric expenses $ - 10 506 Miscellaneous steam power expenses $ - $ - 11 507 Rents $ - $ - 12 Total operation $ - $ - 13 lv!aintenance 14 510 Maintenance supervision and engineering $ - $ - 15 511 Maintenance of structures $ - $ - 16 512 Maintenance of boiler plant $ - $ - 17 513 Maintenance of electric plant $ - $ - 18 514 Maintenance of miscellaneous steam plant $ - $ - 19 Total maintenance $ - $ - 20 Total power production expenses-steam power $ - $ - 21 NUCLEAR POWER GENER<\TION 22 Operation 23 5 ! 7 Operation supervision and engineering 24 518 Fuel 25 519 Coolants and Water 26 520 Steam expenses 27 521 Steam from other sources 28 522 Steam transferred - Cr ( ) 29 523 Electric expenses 30 524 Miscellaneous nuclear power expenses 31 525 Rents 32 Total Operation 33 Maintenance 34 528 Maintenance supervision and engineering 35 529 Maintenance of structures 36 530 Maintenance of reactor plant equipment 37 531 Maintenance of electric plant 38 532 Maintenance of miscellaneous nuclear power 39 Total maintenance 40 Total power production expenses-nuclear power 4'1 MYDRAlll,IC 1'0\VEH GENERATION 42 ( )(.!l!/'/1//0ll 4:~ 515 Op1::rntio11 ,,upcrvioion and l'nginm:ring 44 '.:Uh W,tkr 11.ir power 45 :\37 I lydrnulic (:iqx:nscs 46 5:rn Elcctl'ic c,pcn.,c:, 47 539 M i,,c,.:llnm:rn.1,, I 1ydrn11lic p1.1wi.;r g1 .. :11,.:rn1io11 1,.:xpcn,:1i:, 48 ~i40 Rent:, 49 Tol,il opcnilion 50 Al,1i111e1w11,:e s·I 5-'1-1 M,iinlc11.:111u .. : :,:up,.::rvi:;ic,n ;md engineering S2 :'42. Mai11ll.:nanc1: ol ,,;l.rnct.1m:s

·J/ 14/20 I ,,1 ANN REPT TOTAL SYSTEM Page 2

ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Increase or Amount for decrease from Linc Account current year preceding year No. [a] [bl [c] 1 HYDRAULIC POWER GENER\TION (Continued) 2 543 Maintenance of reservoirs, dams and waterways 3 544 Maintenance of electric plant 4 545 Maintenance of miscellaneous hydraulic plant 5 Total maintenance 6 Total power production expenses-hydraulic power 7 OTHER POWER GENERA TlON 8 Operation 9 546 Operation supervision and engineering 10 547 Fuel 11 548 Generation expenses 12 549 Miscellaneous other power generation expenses 13 550 Rents 14 Total operation 15 Maintenance 16 551 Maintenance supervision and engineering 17 552 Maintenance of structures 18 553 Maintenance of generating and ekctric plant 19 554 Maintenance of miscellaneous other power generation plant 20 Total maintenance 21 I'otal power production expenses-other power 22 OTHER POWER SUPPLY EXPENSES 23 555 Purchased power $ 65_015,094 $ 9,495,502 24 556 System control and load dispatching $ - 25 5 5 7 Other expenses $ - 26 Total other power supply expenses $ 65,015,094 $ 9,495,502 27 Total power production expenses s 65,015,094 $ 9,495,502 28 TRANSMISSION EXPENSES 29 Operation 30 560 Operation supervision and engineering $ 189,126 $ 14,841 31 561 Load dispatching $ 252,443 $ (24,197) 32 562 Station expenses $ 231,058 $ 10,529 33 563 Overhead line expenses $ 42,524 $ (7,796) 34 564 underground line expenses $ 6,158 $ 6,158 35 565 Transmission of electricity by others $ - $ - 36 566 Miscellaneous transmission expenses $ 2,166 $ (1,063) 37 567 Rents $ 6,651 $ 940 38 Total operation s 730,126 $ (589) 39 Maintenance 40 568 Maintenance supervision and engineering $ - $ - 41 569 Maintenance of structures $ - $ - 42 570 Maintenance of station equipment $ 136,551 $ 11,113 43 571 Maintenance of overhead lines $ 5,403 $ (26,703) 44 572 Maintenance of underground lines $ 4,946 $ (4,327) 45 573 Maintenance of miscellaneous transmission plant $ - $ - 46 Tnt:il m11ink11,lll('e $ 1,,16,'100 $ f!9,,'H 7)

47 J'o!al 11~m~•;n1i:•;~•11011 expi.:n:..;c 1,; $ 1!77,02S $ (20,5(Hi) 4!1 DISTl{liH:TIO!'II EXPENSES 4!1 ( 1/'<'1',11/1!1/ p ··~ '7'") '7 5() .'iSO ( )p,.:1:.111011 s1.1p1.:rvis1oi1 :md ,.:11g1111.:1.:rirq~ $ (,til .838 $ '1.:..,J/.. ,J 51 'lfl I I .011d disp11tchinp, :~ 2S~., 1-¼77 $ ;~ .Jo:~ 52 582 Stat1nn expcw~~:s $ 6114. l :iJ $ 106.091) 53 'i8J ( )vcrlte:HI line ,.:.~pcm:c:: $ n:1,711. ~ ( ll.'i.(J29) S4 584 l .'ndergrn1.111d li11c c:,penscs $ :,7,095 $ 7,:.188 ~j!j :;:,c; :~tn:d. l1glil.111g :111d :,ignal sy•:1..:111 cxp1::nsef, $ l.7W7 $ ( I (l)

1!/ ! ,1.1201-l /\NN Rl·'.PT TOTAL SYSTEM Page 3

ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Increase or Amount for decrease from Line Account current year preceding year No. [al [b] [c] 1 DISTRIBUTION EXPENSES (Continued) 2 586 Meter expenses $ 448,387 $ 63,414 3 587 Customer installations expenses $ 5,494 $ (3,829) 4 588 Miscellaneous distribution expenses $ 633,274 $ (10,947) 5 589 Rents $ - $ - 6 Total operation $ 3,471,218 $ 117,405 7 A1aintenance 8 590 Maintenance superv1s10n and engineering $ 92,641 $ 66,511 9 5 9 l Maintenance of structures $ - $ 10 592 Maintenance of station equipment $ 145,693 $ (38,819) 11 593 Maintenance of overhead lines $ 1,047,264 $ (166,480) 12 594 Maintenance of underground lines $ 34,464 $ (9,218) 13 595 Maintenance ofline transformers $ 142,634 $ 129 14 596 Maintenance street lighting and signal systems $ 128,107 $ 9,538 15 597 Maintenance of meters $ 43,492 $ 405 16 598 Maintenance of miscellaneous distribution plant $ 421 $ (29,355) 17 Total maintenance $ 1,634,715 $ (167,289) 18 Total distribution expenses $ 5,105,933 $ (49,884) 19 CVSTOMER ACCOUNTS EXPENSES 20 Operation 21 90 I Supervision $ 254 $ 42 22 902 Meter reading expenses s 60,285 $ (166,589) 23 903 Customer records and collection expenses $ 860.899 $ (25,572) 24 904 Uncollectible accounts s 2 $ (43,984) 25 905 Miscellaneous customer accounts expenses s - $ - 26 Total customer accounts expenses $ 921,440 $ (236,103) 27 CVSTOMER SERVICE & INFORMATION EXPENSE 28 Operation 29 907 Supervision $ - $ - 30 908 Customer assistance s 1,228 $ 108 31 909 Information & instructing adv. $ 45,695 $ 315 32 910 Information member services $ 12,560 $ 7,226 33 912 Demonstrating & selling expenses $ 38,837 $ 5.926 34 913 Advertising expenses $ $ - 35 915 Cost and expenses of merchandising, jobbing and contract work s - $ 36 916 Miscellaneous sales expenses s - $ - 37 Tola! customer service & information expenses $ 98,321 $ 13,576 38 ADMINISTRATIVE AND GENERAL EXPENSES 39 Operation 40 920 Administrative and general salaries s 1,579,525 $ 148,392 41 921 Ot1ice supplies and expenses $ 169,786 $ (42,865) 42 922 Administrative expenses transferred-CR $ - $ - 43 923 Outside services employed $ 327,129 $ 168,493 44 924 Property insurance $ - $ - 45 92:, Injuries and darn~f!c, $ 449,017 $ 43~. 172 46 926 hnploycc p1:n:;io11s and bt:11dil..'i ,.,> (l(i}OJ) $ 1. I ;,::>.,47.01 47 927 1:'r:,1111,:l11::1: H:quircmcnls '); $ .. , 48 •(111 Hcg1ilalnn; coinmi:,sion c.spcn:,t:s $ '?5J,024 1; (II :?.Id) 49 92'.l Dupli,:alc dmrges .. cr 'ii .. , $ 50 1(\() rv1iscdbm:m1:•: gcncrnl c.xpe11::1:s \',, 628.N)I $ 2,6:i'/ 5'1 •n l Hcnt:, $ $ ,.. 52 Totcil opcr:1110n $ 3,J70,W70 $ :'71l,lli7 53 Alainli:'l'.l(ll'l('(' S4 1)35 IV!,rn11crwncc of gl'nernl plant $ '.?.:Fi.OJ(, $ 181:1:i i):'f' I' ,)..) Tnl:.il :.1d111111:,11:11.ivc :rnd ,,:,.:rn:r:d c~p1,:n:,c 1: ,,,! J,609,881) $ S96,2'>2 !:ii:i Tot:1I l'.k,,:tric Up1,:rn1ion and f'vfa1n1rn:111rc 1::~ptm:cs $ 7:'i,627,,(,97 $ '1,798,87:'i

4/ 14/20 l 4 .i\NN l{EPT TOT AL SYSTEM Page 4

ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) SUMMARY OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES

Line Functional Classification Operation Maintenance Total No. la] lb] [c] Id] s s $ 1 Power Production Expenses 2 Electric Generation: 3 Steam power $ - $ - $ - 4 Nuclear power $ - $ - $ - 5 Hydraulic power $ - $ - $ - 6 Other power s - $ - $ - 7 Other power supply expenses $ 65,015,094 $ - $ 65,(ll5,094 8 Total power production expenses s 65,015,094 $ - $ 65,015,094 9 Transmission Expenses $ 730,126 $ 146,900 $ 877,025 10 Distribution Expenses s 3,471,218 $ 1,634,715 $ 5,105,933 11 Customer Accounts Expenses $ 921.440 $ - $ 921,440 12 Customer Service and Information Expense s 98,321 $ - $ 98,321 13 Adm. and General Expenses s 3,370,870 $ 239,016 $ 3,609,886 14 Total Electric Operation and Maintenance Expenses s 73,607,067 $ 2,020,630 $ 75,627,697

NUMBER OF ELECTRIC DEPARTMENT EMPLOYEES

Number of electric department employees, payroll period ending l 0/15/2013 I. Total regular full-time employees 78 2. Total part-time and temporary employees 2

3. Total employees 80

The data on number of employees should be reported for the special construction employees so included. payroll period ending nearest to October 31, or any payroll The number of employees assignable to the electric depart period ending 60 days before or after October 31. ment from joint functions of combination utilities may be de termined by estimate, on the basis of employee equivalents. If the respondent's payrolls for th0 reported period include Show the estimated number of equivalent employees attributed any special construction forces, include such emloyees as part· to the electric department from joint fonctions. time and temporary employees and show the number of such

4/14/201·1 /\NN REPT Page 5

DISTRIBlJTION OF SYSTEM LOAD IN SERVICE AREA

I Information is desired regarding the di,trbution of the system load within the territO'}' served hy the system This information should be li.Jrnished on the basis used by respondent in maintaining load dislnbulmn data, such as by primary substations, operating divisions, comumties, metropolitan areas. or other areas.

2 A sketch map showing the location and the approximate boundmy of each of these areas. together with identification sysmobls. should be furnished.

Annual energy Provided for the Area Estimated Distribution - Percent Designation of Area Public A,.;iual or Estimated (P1irnary sub~tation, Commercial lndust1ial Streets and Other sales Peak Demand of An11ual operating division, or Map Total Residential !000 kVa Over Highway to Public Irrigation Company Unaccounted Arca During the Date of Load community) Symbol (Kilowatt•hours) Sales or less IOOOkVa Lightin8 Authority Sales Use for Yem· (Kilowalts) Peak Factor

Purchas;ed Power 1,252,635,708 106,448,306 505,645,747 348,(174,511 1,337,167 12,771,371 218.637,862 838,466 58.882.278 199,160 Aug-13 71.80%

8.50% 40.37% 27.79% 0.11% 102% 17.45% 0.07% 4.70% l00.00%

L------························------·································································· ...... ,. .... ,...... ,. .. ······ ......

4/ 14/21114 ANN lfrl'T TOTAL SYSTEM Page 6

CONSTRUCTION OVERHEADS-ELECTRIC

1 , Report bt."low the information called for concerning con no overhead apportionments are made, but rather should explain on struction overheads for the year. the lower section of this schedule, that only such engineering, super 2 . List in column (a) the kinds of overheads according to the visor, and administrative costs, etc., which are directly chargeable to titles used by the respondent. Charges for outside professional ser- construction are charged to construction, if this is the case. Engi vices for engineering fees and management of supervision fees ca pi¥ neering, supervision, administrative, and interest costs, etc., which talized should be shown as separate items. are first assigned to a blanket work order and then prorated to con 3 . On the lower section of this schedule furnish the requested struction jobs shall be considered overheads for the purposes of explanatory information concerning construction overheads. formulating a response to this schedule. 4 . A respondent should not report "none" to this schedule if

Line ~ am e of Overhead Total overheads cleared Cost of construction to which Percent overheads to No. to construction overheads were charged (ex construction cost clusive of overhead charges) [al [b] [c] [di s $ % 1 Management, Engineering & 2 Accounting $ 570,695 41.21% 3 Construction Crew Bad Weather $ - 0.00% 4 Transportation $ 274,216 19.80% 5 Warehouse Charges $ 271,323 19.60% 6 Payroll Taxes, lnsuranceiBenefits $ 939,305 67.83% 7 Administrative & General $ 95,799 6.92% 8 9 10 11 12 13 14 TOTAL $ 2.151.338 $ 1,384,742 155.36% GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE

I For each construction overhead for electric plant explain: 2. In addition to other information concerning engineering and (a) nature of the engineering, supervisory, or administrative work, superintendence or other such overheads, explain whether the etc., the overhead charges are intended to cover, (b) the general amounts treated as overheads include all engineering and super procedure for determining the amount capitalized, :fJ the method intendence costs or only such portions as are not directly charge of distribution to construction johs, (d) percentsges applied to dif- able to specific jobs. ferent types of construction, (e) basis of differentiation in percent- 3. For interest during construction state the interest rate used, ages for different types of construction, and (f) amounts capital- the basic charges to ,•rhich applied, in addition to the amounts ized for each overhead for the year for which this report is sub- capitalized for the year for which this report is submitted. mitted.

LINE:

(2) Management, Engineering & Accounting - labor not directly chargeable to specific jobs; allocated to individual work orders by cost oflabor on each work order.

(3) Construction Crew Bad Weather - bad weather or loss time not directly chargeable to specific jobs; allocated to individual work orders by cost of labor on each work order.

(--l) Trallsportal.ion ··· chn1·gcd directly tu work on.kr:-; by liour on daily lilllt'. idwd using a(:tual ,:osl.

(5) W,trchrn.1sc Ch:.11g1 .. ::; allocated b,1scd ,.in nwtcrial iss1.1,,.::; for 111un1l1.

(6) 8: {7) Payroll TC!'l(CS, lnsurnncc, lkndils, Adrninistrnl.ivc & (km:,ral ... al localed tu individual wmk orders by cost of labor on each work on:k:r,

4/14/2014 AN\! Rf])T TOT AL SYSTE'\1 Page 7

ELECTRIC DISTRIBUTION METERS AND LINE TRANSFORMERS

l . Report below the information called for concerning distri meters or line transformers are held under a lease, give name of bution watt-hour meters and line transformers. lessor, date and period of lease and annual rent. If 500 or more 2 \Vatt-hour demand distribution meters should be included meters or line transformers are held other than by reason of sole below but external demand meters should not be included. ownership or lease, give name of co-owner or other party, ex 3 Show in a footnote the number of distribution watt-hour plain basis of accounting for expenses between the parties, and meters or line transformers held by the respondent under lease state amounts and accounts affected in respondent's books of from others, jointly owned with others, or held otherwise than account. Specify in each case whether lessor, co-owner or other by re1ison of sole ownership by th!;' respondent. If500 or more party is an associated company.

LINE TRANSFORMERS Number of watt-hour Line Item meters Number Total capacity (kva) No. laJ !bl le] Id]

1 Number at beginning of year 27,982 21,695 2 Additions during year: 3 Purchases 454 419 4 Associated with utility plant acquired 5 Total additions 454 419 6 Reductions during year: 7 Retirements 2,589 316 8 Associated with utility plant sold 9 Total reductions 2,589 316 10 Number at end of year 25,847 21,798 11 In stock 7,100 1,129 12 Locked meters on customers' premises 13 Inactive transformers on system 14 In customers' use 18,743 20,669 15 In company's use 4 16 Total end of year (as above) 25,847 21,798

ANN REPT Total System Page 8

VERIFICATION

The Foregoing report must be verified by the oath of the office having control of the accounting of the respondent. The oath required may be taken before any person authorized to administer an oath by the laws of the State in which the same is taken.

OATH

(To be made by the officer having control of the accounting of the respondent.)

State of ------~~"------New Mexico ss:

County of ______-=L=e=a ____ _

Michael L. Faris makes oath and says that he is _ ___;..M=an=a=g=e=r---"o~f_A_c~c...co~u_n~ti_n....,g ____ (Insert here the name of the affiant.) (Insert here the official title of the affiant) of ______--=L~e~a~C~'o~u~n~ty;...... =E~le~c~tr~i~c~C~o~o~p:..::e~ra=t~iv~e~,~I~nc=.'------(Insert here the exact legal title of name of the respondent.) that it is his duty to have supervision over the books of account of the respondent and that to the best of his knowledge and belief such books have, during the period covered by the foregoing report, been kept in good faith in accordance with the accounting and other orders of the New Mexico Public Regulation Commission, effective during said period, that he has examined the said report, and to the best of his knowledge and belief the information contained in the said report is, insofar as it relates to matters of account, in accordance with the said books of account; that he believes that all other statements of fact contained in the said report are true, and that the said report is a correct statement of the business and affairs of the above-named respondent in respect to each and every matter set forth therein during the period from and including ------=-J=an=u=a=r....v_l'---' 2013 to and including ------=--~D~e~c...ce_m_b~e_r_3_1__ , 2013 ~

Subscribed and sworn to before me, a \\c.:A-c\..,f' u) Vv~b I \C.... , in and for the State and , ......

County abcive rianH;:cL th's ...... ~\) Y,·\ \ RURAL ELECTRIC COOPERATIVES

Annual Report

Lea County Electric Cooperative, Inc. (Exact legal name of Respondent)

New Mexico System

TO THE

NEW MEXICO

PUBLIC REGULA'"ri()N COMMISSION

FOR THE

YEAR. EN r)ED'"L r)C(""'r:MBERL 1::::::, ,,,,1:::::::, ..,,)''1 1 20'13 LONG TERM DEBT (Accounts 221-228) To PLC INTEREST FOR VEAR l,ine :\otc Whom Decision Date of Date of Principal Amount AMOUNT OUTSTANDING For Halance No. !dent. Issued No. Issue Maturity Sheet Principal Deferred Interest Rate Amount l 2 3 4 5 6 7 s 9 10 II ~;\/\ff AS TOTAL SYSTEM 12 13 14 15 16 17 18 19 n 20 0 21 22 23 24 en 25 26 27 28 29 3(1 31 32 33 Total $ - $ - $ - $ - $ - 34 Less: Advance Payments Una1111Iied-Account 227 $ - $ - $ - $ - 35 Total $ - $ - s - $ -

4/14/2014 ANN_REPT NEW MEXICO SYSTEM Page 9

ELECTRIC OPERATION AND MAINTENANCE EXPENSES

I. Enter in the space provided the operation and maintenance 2. If the increases and decreases are not derived from pre expenses for the year. viously reported figures explain in footnotes. Increase or Amount for decrease from Line Account current year preceding year No. [a] [bl [cl 1 POWER PRODUCTION EXPENSES 2 STEAM POWER GENERATION 3 Operation 4 500 Operation supervision and engineering 5 501 Fuel 6 502 Steam expenses 7 503 Steam from other sources 8 504 Steam transferred - Cr 9 505 Electric expenses 10 506 Miscellaneous steam power expenses 11 507 Rents 12 Total operation $ $ 13 lvlmntena11ce 14 510 Maintenance supervision and engineering 15 511 Maintemmce of structures 16 512 Maintenance ofboilcr plant 17 513 Maintenance of electric plant 18 514 Maintenance of miscellaneous steam plant 19 Total maintenance $ $ 20 Total power production expenses-steam power $ s 21 NUCLEAR POWER GENERATION 22 Operation 23 517 Operation supervision and engineering 24 518 Fuel 25 519 Coolants and Water 26 520 Steam expenses 27 521 Steam from other sources 28 522 Steam transferred - Cr 29 523 Electric expenses 30 524 Miscellaneous nuclear power expenses 31 525 Rents 32 Total Operation 33 Afaintenance 34 528 Maintenance supervision and engineering 35 529 Maintenance of structures 36 530 Maintenance of reactor plant equipment 37 5 3 1 Maintenance of electric plant 38 532 Maintenance of miscellaneous nuclear power 39 Total maintenance 40 Total power production expenses-nuclear power 41 HYDRAULIC POWER GENERATION 42 Operation 43 :135 Opcrnl1on s11puv1;-:ion ::111d cn1•,im11.:ri11g 44 ) 3(1 \\iat,,:r ti.Jr [H.H\CI" 45 5:l'"i' I lydr,nilic ,:,p,:rn,c:,: 46 .\ .·-: ~ 1:.1,.:1:I lie 1,:,,;pc11:s1.\•;

47 r '131) :Vli:,,,,.cll:mi:uu,: h_vdra11lic powc1· !R:Jh:rnlio11 expr.:11,;c,,; 41l .').1() l{n1I:: 1------+------···--··------···--· 4-1:1 ·1 .. ,!iii op,.'Till io11 [i() 1\/al)tlt'iUfiU.'C !l'I :'i,.I I !\fointr:n,1111.·i: :-:11p1::1vi•,1oi1 :111d t:t1g1111.:1::ri11g 52 :-\·12. M:1i11tc11anc,., ill':-:lrnclmc::

•l/14/2014 ANN REPT

mmm1mm11111111111111111111mmmmmmmmmmmmmmmmmmmmmmmmm11111111111111111111111111111111111111111111111111111111111111111111111111111w1111111111111111111111111u1uuuuu1uuuuuuuu1111111111u11u NEW MEXICO SYSTEM Page IO

ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Increase or Amount for decrease from Line Account current year preceding year No. [a] [b] [c] 1 HYDRAULIC POWER GENERATION (Continued) 2 543 Maintenance ofreservoirs, dams and waterways 3 544 Maintenance of electric plant 4 545 Maintenance of miscellaneous hydraulic plant 5 Total maintenance 6 Total power production expenses-hydraulic power 7 OTHER POWER GENERATION 8 Operation 9 546 Operation supervision and engineering 10 547 Fuel 11 548 Generation expenses 12 549 Miscellaneous other power generation expenses 13 550 Rents 14 Total operation 15 Maintenance 16 551 Maintenance supervision and engineering 17 552 Maintenance of structures 18 553 Maintenance of generating and electric plant 19 554 Maintenance of miscellaneous other power generation plant 20 Total maintenance 21 Total power production expenses-other power 22 OTHER POWER SUPPLY EXPENSES 23 555 Purchased power $ 43,880,832 $ 6,408,827 24 556 System control and load dispatching $ - 25 557 Other expenses $ - 26 Total other power supply expenses $ 43,880,832 $ 6,408,827 27 Total power production expenses $ 43,880,832 $ 6,408,827 28 TRANSMISSION EXPENSES 29 Operarion 30 560 Operation supervision and engineering $ 127,647 s 10,017 31 561 Load dispatching $ 170,382 $ (16,332) 32 562 Station expenses $ 155,949 $ 7,106 33 563 Overhead line expenses $ 28,701 $ (5,262) 34 564 Underground line expenses $ 4,156 $ 4,156 35 565 Transmission of electricity by others s $ - 36 566 Miscellaneous transmission expenses $ 1,462 $ (717) 37 567 Rents $ 4,489 $ 634 38 Total operation $ 492,786 $ (398) 39 1\4aintenance 40 568 Maintenance supervision and engineering $ - $ - 41 569 Maintenance of structures $ - $ - 42 570 Maintenance of station equipment $ 92,163 $ 7,501 43 571 Maintenance of overhead Imes $ 3,647 s (18,023) 44 572 Maintenance of underground lines $ 3,338 s (2,921) 45 573 Maintenance of miscellaneous transmission plant $ - $ - 46 Tnl al maint<:nancc $ ')!J,1,:1!:1 $ lU,-HJ) 47 'I 'ulal l.1 an:,:mis::1011 ,:~:pcnsc:,, $ :i'll,i>:.14 $ {IJ,!Ul) 48 msrnllHITION KX,l'ENSES 49 ()/N.'f'i:lf i

11/ I ii /2 0 l 1! /\NN Rl:PT NEW MEXICO SYSTEM Page I l

ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Increase or Amount for decrease from Line Account current year preceding year No. lal lb] !cl 1 DISTRIBCTION EXPENSES (Continued) 2 5 86 Meter expenses $ 302,631 $ 42,800 3 587 Customer installations expenses $ 3.708 $ (2,584) 4 588 Miscellaneous distribution expenses $ 427,4 l 8 $ (7,388) 5 589 Rents $ - $ - 6 Total operation s 2,342,840 $ 79,241 7 A1ainienance 8 590 Maintenance supervision and engineering $ 62,526 $ 44,890 9 591 Maintenance of structures $ - $ - 10 592 Maintenance of station equipment $ 98,333 $ (26,201) 11 593 Maintenance of overhead lines $ 706,833 $ (112,363) 12 594 Maintenance of underground lines $ 23,261 $ (6,221) 13 595 Maintenance oflinc transformers $ 96,268 $ 87 14 5 96 Maintenance street lighting and signal systems s 86,464 $ 6,438 15 597 Maintenance of meters $ 29,354 $ 273 16 598 Maintenance of miscellaneous distribution plant $ 284 $ (19,812) 17 Total maintenance $ 1,103,323 $ (112,909) 18 Total distribution expenses s 3,446,163 $ (33,668) 19 CUSTOMER ACCOUNTS EXPENSES 20 Operation 21 901 Supervision $ 172 $ 29 22 902 Meter reading expenses $ 40,688 $ (112,437) 23 903 Customer records and collection expenses $ 581,049 $ (17,259) 24 904 Uncollectible accounts $ I $ (29,686) 25 905 Miscellaneous customer accounts expenses $ - $ 26 Total customer accounts expenses s 621,910 $ (159,353) 27 CUSTOMER SERVICE & INFORMATION EXPENSE 28 Opera/ion 29 907 Supervision $ - $ 30 908 Customer assistance $ 829 $ 73 31 909 Information & instructing adv. $ 30,841 $ 213 32 910 Information member services $ 8,477 $ 4,877 33 912 Demonstrating & selling expenses s 26,212 $ 3,999 34 913 Advertising expenses $ $ - 35 915 Cost and expenses of merchandising, jobbing and contract work $ - $ - 36 916 Miscellaneous sales expenses $ - $ - 37 Total customer service & information expenses s 66,359 $ 9,162 38 ADMINISTRATIVE AND GENERAL EXPENSES 39 Operation 40 920 Administrative and general salaries $ 1,066,074 $ 100.155 41 921 Otlice supplies and expenses $ 114,594 $ (28,931) 42 922 Administrative expenses transferred-CR $ - $ - 43 923 Outside services employed $ 220,790 $ 113,721 44 924 Property insurance $ - $ - 45 925 Injuries and damages ,,$ 303,056 $ 293,711 46 921;, I ,:mploy1.:e p1,:m:irn1:; 1111d b(:ncli\,; .,, (2,1 .. .'i()2) $ (g2, .. (,21i I 47 9?7 1:r.:.1ni.:hi:,c rcquircn1t::1w; $ - $

48 ~)28 R~~gt1laaory COHilllissitll} C 1(p1.:ilSt;:S ~I 170 .. 774 $ U .602'! 49 929 I )11plicw.c ch,l!'gc:; .. Cr $ $ rm 'HO Mi:;,:dh1m:01.1s gcn~rnl ,:xp,;m;<.:s $ 424,324 $ 1:1 1)J 51 9·, I l~cnls $ $ .. 5:2 Tcil:1I ,.. 1p1,:r:111on s 2.,z75,I HI $ .l90;2I2 t.i:J A/,untenance !i,1 ,n .. ' \.fo111\t:111.rnc,: ol gt:11c1;il pl:.1111 $ I (,I ):'U $ 12,2'.13 55 Tot,1I adrniw,t1ativ1 ..: :md gc11crnl 1.,'·,pc11s1.::, $ 2.,4.!(,,,t\0 $ ,i.0-2,4~:s S6 lo1al l•:icclru: I )p,:rntinn rn1d !'vlainl,.:n:.1111.:(: 1:.. \p,:11.,;,;:; :, I ,O,.U,62/l $ 6.,(, I J,SS2 " ..... ,, ... i/14//.014 ANN REPT NEW '.\1EXICO SYSTEM Page 12

ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) SUMMARY OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES

Line Functional Classification Operation Maintenance Total No. [a] [bl [cl [di $ $ $ 1 Power Production Expenses 2 Electric Generation: 3 Steam power s - $ - $ - 4 Nuclear power $ - $ - $ - 5 Hydraulic power s . $ . $ - 6 Other power $ . $ - $ - 7 Other power supply expenses $ 43,880,832 $ - $ 43,880,832 8 Total power production expenses $ 43.880,832 $ - $ 43,880,832 9 Transmission Expenses $ 492,786 $ 99,148 $ 591.934 10 Distribution Expenses $ 2.342.840 s 1,103,323 $ 3,446,163 11 Customer Accounts Expenses $ 621,910 s - s 621,910 12 Customer Service and lnfomiation Expense s 66.359 s - $ 66,359 13 Adm. and General Expenses s 2.275,110 s 161,320 s 2,436.430 14 Total Electric Operation and Maintenance Expenses $ 49,679,837 s 1,363,791 $ 51,043,628

NUMBER OF ELECTRIC DEPARTMENT EMPLOYEES

Number of electric department employees, payroll period ending 10/15/2013 1. Total regular full-time employees 76 2. Total part-time and temporary employees 2

3. Total employees 78

The data on number of employees should be reported for the special construction employees so included. payroll period ending nearest to October 31. or any payroll The number of employees assignable to the electric depart period ending 60 days before or after October 31. ment from joint functions of combination utilities may be de termined by estimate, on the basis of employee equivalents. If the respondent's payrolls for the reported period include Show the estimated number of equivalent employees attributed any special construction forces. include such emloyees as part to the electric department from joint functions. time and temporary employees and show the number of such

i\NN Rl::PT Page 13

------DISTRIBCTION-- - OF SYSTEM LOAD IN------SERVICE AREA lnfonna11on 1s dcs1red regarding the d1Strbu\10n of the system load within the territory served by the system. This informat10n should be furmshcd on the basis used by respondent in mamtammg load distributmn data, such as by pnmary substations, operatrng d1v1s1ons, comumt1es, metropohtan areas, or other 1------areas------2 A skdch map showmg the locatron and the approximate boundary of each of these areas, together with 1dent1ticat1on sysmobls, should be fomished

_____A_n_n_ua_l_eoergv Provided f~r-the Area 1-----~-----~------"Fc;,s.c.ti'-'m'--a":.1ili~istribution - Pcrcc_n_t ______, Designation of Area Actual or Estimated (Primary substation, Comrn~rcial Industrial Stree1s and Other sales Peak Demand of Annual operating division, or Map 'Iota! Residential !000 kVa Over Highway w Public Company Unaccounted Area During the Date or Load community) Symbol __ Q:S~l.?~at1-hours) Sales or less IOODkVa Ligh1mg Authori1y Use for Ye':1~ (Kilowatts) Peak f.actor

Purchased Power 1,252,635,708

Lcss-T ~xas 409,515,046 .... -~ 83,419,619 351_543,821 312,799,755 !_206576 10,619,909 43,334,354 838,466 39,358,162 120,360 Aug-13 71.80%

9.89~'{) 41 70% 37.10% 0 14% 1.26% 5.14'% 0 10% 4.67% 100.00% 0 NEW MEXICO SYSTEM Page 14

CONSTRUCTION OVERHEADS-ELECTRIC

1 Report below the information called for concerning con- no overhead apportionments are madet but rather should explain on struction overheads for the year. the lower section of this schedule, that only such engineering, super 2 . List in column (a) the kinds of overheads according to the visor, and administrative costsJ etc., which are directly chargeable to titles used by the respondent. Charges for outside profossional ser- construction are charged to construction, if this is the case. Engi vices for engineering fees and management of supervision foes capi neering, supervision, administrative, and interest costs1 etc., which talized should be shown as separate items. are first assigned to a blanke.t work order and then prorated to con 3 • On the lower section of this schedule furnish the requested struction jobs shall be considered overheads for the purposes of explanatory information concerning construction overheads. formulating a response to this schedule. 4 . A respondent should not report "none" to this schedule if

I ,inr Name of Overhead Total overheads cleared Cost of construction to which Percent overheads to No. to construction overheads were charged (ex construction cost clusive of overhead charges) la] lbl [c] [d] $ $ % 1 2 SAME AS TOTAL SYSTEM 3 4 5 6 7 8 9 10 11 12 13 14 TOTAL GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE

1 For each construction overhead for electric plant explain: 2. In addition to other information concerning engineering and (a) nature of the engineering, supervisory, or administrative work, superintendence or other such overheads, explain whether the etc., the overhead charges are intended to cover, (b) the general amounts treated as overheads include all engineering and super procedure for determining the amount capitalized, the method intendence costs or only such portions as are not directly charge of distribution to construction jobs, (d) percentages applied to dif- able to specific jobs. ferent types of construction, (e) basis of differentiation in percent- 3. For interest during construction state the interest rate usedt ages for different types of construction, and (f) amounts capital- the basic charges to which appliedi in addition to the amounts ized for each overhead for the year for which this re1Jort is sub- capitalized for the year for which this report is submitted. mitted.

4/ 1-1/20 1,1 /\f,)N Rl:FI' NEW MEXICO SYSTEM Page 15

ELECTRIC DISTRIBliTION METERS AND LINE TRANSFORMERS

l Report below the information called for conrerning distri- meters or line transformers are held under a lease, give name of 1:mtion w.-1tt-hour meters and line tnrnsformers. les!lor, date and period of lease and 1rnntrnl rent. Jf 500 or more 2 '\\<'att-hour demand distribution meters should be included meter~ or line tnrnsformers are held other than by reason of sole belm,v hut external demand meters should not be indudl~d. ownership or lease, giYe name of co-ownt"r or other jHlrty, ex

3 Show in a footnote the number of distribution watt-hour plain basis of accounting for expenses between the parties1 and meters or line transformers htld by the respondent under lease state amounts and 1u,counts affected in respondent's books of from oihers, jointly ov.,1ied with others~ or held otherwise than account. Specify in each case whether lessor, co-owner or other by reason of sole ownership by the respondent. If 500 or more party is an associated company.

LINE TRANSPORMERS Number of watt-hour Line Item meters Number Total capacity (kva) No. [al !bl [c] Id]

1 Number at beginning of year 22,715 14,288 2 Addi! ions during year: 3 Purchases 418 330 4 Associated with utility plan1 acquired 5 Total additions 418 330 6 Reductions during year: 7 Retirements 2,589 316 8 Associated with utility plan1 sold ---- 9 Total reductions 2,589 316 10 Number at end of year 20,544 14,302 11 In stock 7-100 l,129 12 l ,ocked meters on customers' premises ---- 13 Inactive transformers on system ---- 14 ln customers' use 13,441 13,173 15 In company's use 3 ---- 16 Total end of year (as above) 20,544 14,302

'------''"''""

A\/1\ REPT New Mexico System Page 16

VERIFICATION

OATH

(To be made by the officer having control of the accounting of the respondent.)

State of ------=--'--"-'...:.....::.==-=-==----New Mexico ss:

County of _____---=L=-::e..::.:a ____ _

______;:_;_M.=.::ic::::c.:..ceha""e=l----=L=..: .....:Fc....:a=-r-'-"is'---- makes oath and says that he is _ ___.!_M=an:c.:.:a:,:i;g;;c::e:..o..r--==o"'-f...C.A-"-'c::..:!c'--"o'-=u=n""ti""'n'°g ____ (Insert here the name of the affoml.) (Insert here the official title of the affiant.) of ______---=L~e~a~C~o~u~n~t~y~E~·l~ec~t:..o..r1~·c~C~o~o~p~e=r~at~i,~ 1e~,----=l~n=c~. ______(Insert here the exact legal title of name of the respondent.) that it is his duty to have supervision over the books of account of the respondent and that to the best of his knowledge and belief such books have, during the period covered by the foregoing report, been kept in good faith in accordance with the accounting and other orders of the New Mexico Public Regulation Commission, effective during said period, that he has examined the said report, and to the best of his knowledge and belief the information contained in the said report is, insofar as it relates to matters of account, in accordance with the said books of account; that he believes that all other statements of fact contained in the said report are true, and that the said report is a correct statement of the business and affairs of the above-named respondent in respect to each and every matter set forth therein during the period from and including January 1 , 2013 to and including December 31 , 2013.

<.i ay ol .. ·Bp (' J' { l____ _ '20 ...... 1 ..1 ...

··7 I''" I ,:,.-J:.., .. L) j v,,.,'.J______

(d. \ ~l Zl'I' ..., ...... >.. , ·::,(1,)\:'>~. t.,.... ~:~,J{\.... . ·:'...... e::'...... :~i.~1. (S1gnal1.1n: of otbi..:i .. :r au1horn·.ed In admm1stcr oalhi•,)

·------············· ········------' FORM 1

New Mexico Jurisdictional Information Year Ending December 3 1, 2013

Electric Company Name Lea County Electric Cooperative, Inc.

Address: P.O. Drawer 1447, Lovington, New Mexico 88260

Phone Number: (575) 396-3631

Person Completing Form: ---'-M-'---'-=ic=h=ae=l----=1=-·-'-F--=a_,_,ri=s------

Customer Class Residential Other Total

Number of Customers 6,826 4,512 11,338

KWH Sales (Thousands) 83,420 719,504 802,924

Gross Revenues $ 7,198,068 48,742,124 $ 55,940,192

Avg. Annual KWH per Customer (I) 12,221 159,465 70,817

Avg. Annual Bill per Customer (2) $ 1,054.51 $ 10,802.78 $ 4,933.87

Avg. Monthly Bill per Customer (3) $ 87.88 $ 900.23 $ 411.16

Avg. Gross Revenue per KWH sold (4) $ 0.0863 $ 0.0677 $ 0.0697

Directions for the completion of (1), (2), (3), (4):

(1) Divide KWH sales by number of customers.

(2) Divide gross revenues by number of customers.

(3) Divide (2) by 12 months.

(4) Divide gross revenues by !< \VH sales.

Nl'v1PRC RtJ!,!i 5!0 Effocl ivc Ol /0 I /89

4/ 14/:?.0 14 Count'! f:fectric Cooperative, --9nc. P.O. Drawer 1447 1300 West Avenue D Lovington, NM 88260

GARY L. HURSE TELEPIIONE Executive Vice President For Our Customers' Convenience (575) 396-3631 & General Manager 1-800-510-5232 (LCECJ FAX (575) 396-3634

April 17, 2014

NMPRC Records Management Bureau 1120 Pasco de Peralta P.O. Box 1269, PERA Building Room406 Santa Fe, NM 87504-1269

Gentlemen:

The following information is submitted by Lea County Electric Cooperative to comply with NMAC Rule 17.3.510.12(B):

1. Financial data requested is included in the attached schedule.

2. The attached schedule includes actual figures contained in RUS Form 7 for year 2013 arid the Cost of Service Study prepared for the 2009 year, the year of our last rate case. The explanations of the 2013 jurisdictional allocations used are as follows:

Revenues - Represents actual kWh revenue billed in 2013 by jurisdiction adjusted for accrued unbilled kWh revenue through the last day of 2013. Other electric revenue was allocated to jurisdictions based on total kWh revenue by jurisdiction.

Earnings - These are operating margins that result after deducting all expenses by jurisdiction from revenues by jurisdiction.

Return on Equity - Cooperatives are not regulated on a return on equity basis and records are not maintained in a manner necessary to develop jurisdictional return on equity.

Long Term Debt - Allocated based on jurisdictional depreciable plant.

Crcncration Plant•······ Allocated based on jurisdictional plant This plant is 01·1 cold sta1·1dby [1.11d is frilly depreciated.

l)istribution/ l'ransmiss·ion J)lant •······ /\ I. locati()il based ()n physical local ion of plant according to continuing property records pl.us so.rne adj ustmcnts fi)r property located in one jurisdiction that serves loads in the other jurisdiction. NMPRC

April 17, 2014 Page 2 of 2

Purchased Power - The demand charge of the power supplier was allocated based on metered demand created by each jurisdiction. The remainder of purchased power cost was allocated based on metered kWh delivered to each jurisdiction.

Other O&M Allocated based on kWh sold in each jurisdiction adjusted for unbilled kWh through the last day of 2013.

Peak Demand Allocated based on metered demand created by each jurisdiction at the peak in August 2013.

Net Energy Sales (kWh) Represents kWh billed for each jurisdiction according to billing records.

3. Oil and gas production and recovery accounted for approximately 71 % of total kWh sales in 2013. Obviously, a decline in this load caused by the limited economic life of oil fields will have a material effect on all of the above numbers on a prospective basis. Irrigation accounted for 18% of total kWh sales in 2013. The irrigation load has an effect on all of the above numbers depending on rainfall received during irrigation seasons.

Respectfully submitted, Lea County Electric Cooperative, Inc. /1 A cl • _,f;;r . ,-/- //V~./~-!/,/// Michae1 L. Faris Manager of Accounting

Enclosure LEA COUNTY ELECTRIC COOPERATIVE, INC. NMAC Rule 17.3.510.12(B) CURRENT YEAR 2013 2009 RA TE CASE NEW NEW TOTAL MEXICO TEXAS TOTAL MEXICO TEXAS

A. Revenues $ 83,843,756 $ 55,596,344 $ 28,247,412 $ 63,983,509 $ 42,078,511 $ 21,904,998 B. Earnings (Operating Margins) $ 3,271,920 $ 952,820 $ 2,319,100 $ 1,663,304 $ 1,257,295 $ 406,009 C. Return on Equity 4.02% NIA NIA 2.80% NIA NIA D. Debt: I. Total $ 45,187,085 $ 33,937,851 $ 11,249,234 $ 23,774,910 $ 17,856,194 $ 5,918,716 2. Average Cost of Debt 3.29% 3.29% 3.29% 4.91% 4.91% 4.91% E. Capital Structure: L Equity $ 81,419,609 NIA NIA $ 59,403,263 NIA NIA 2. Long Tenn Debt $ 45,187,085 $ 33,937,851 $ 11,249,234 $ 23,774,910 $ 17,856,194 $ 5,918,716 F. Generation Plant $ 4,613,578 $ 4,613,578 $ - $ 5,489,479 $ 5,489,479 $ - G. Transmission Plant $ 23,240,417 $ 16,287,042 $ 6,953,375 $ 17,007,113 $ 14,062,561 $ 2,944,552 H. Distribution Plant $ 94,239,582 $ 65,874,679 $ 28,364,903 $ 79,965,484 $ 57,402,356 $ 22,563,158 I. Operation & Maintenance: I. Purchased Power $ 65,015,094 $ 43,880,832 $ 21,134,262 $ 47,729,184 $ 29,896,940 $ 17,832,244 2. OtherO & M $ 10,612,604 $ 7,162,796 $ 3,449,808 $ 10,307,484 $ 7,741,456 $ 2,566,028 J. Deferred Tax Reserves NIA NIA NIA NIA NIA NIA K. Peak Demand 199,160 120,360 78,800 189,180 103,797 85,383 L. Net Energy Sales (KWH) 1,192,914,964 802,924,034 389,990,930 1,114,047,716 749,347,108 364,700,608

4/15/2014 NMIAC Ruic 17.3.510.'12(B)i Rcpor1t

NOTICE OF ANNUAL MEETING

TO: All Members of Lea County Electric Cooperative, Inc.

Notice is hereby given that the 2014 Annual Meeting of Members of Lea County Electric Cooperative, Inc. will be held Friday, April 25, 2014, at the hour of 6:00 p.m., MDT, at Pannell Auditorium, 701 West Avenue K, at the Lovington High School in Lovington, New Mexico. Said meeting is in compliance with the adopted bylaws of the Cooperative and is for the purpose of electing Trustees, passing upon reports for the previous calendar year and for the transaction of such other business as may come before the meeting. Registration of members will be held on Friday, April 25, 2014 at the following locations: between 8:00 a.m. and 4:00 p.m., MDT, at the main office of the Cooperative, 1300 West Avenue D, Lovington, New Mexico or at the Tatum district office, 203 South Main, Tatum, New Mexico; between 8:00 a.m. and 4:00 p.m., CDT, at the Plains district office, 507 gvi Street, Plains, Texas; and between 5:00 p.m. and 6:00 p.m., MDT, at Pannell Auditorium. You are encouraged to register early to avoid delays.

The business session of such meeting will address the following: 1) a report of members present to establish a quorum; 2) a reading of secretary's notice of meeting and a proof of mailing to members; 3) approval of minutes of the previous Annual Meeting; presentation and consideration of reports from Officers, Trustees and Committees; and 4) an election by the membership of two Trustees: one from District Four and one from District Seven.

GENERAL INFORMATION: A Committee on Nominations, in compliance with the bylaws, was appointed and met on March 11, 2014 at 5:30 p.m. for the purpose of placing in nomination candidates for the election of one Trustee from District Four and one Trustee from District Seven. A list of said nominations for Trustees has been prepared and posted at the office of Lea County Electric Cooperative, Inc., 1300 West Avenue D, Lovington, New Mexico and at each district office. Other nominations may be made by petition signed by fifteen or more members acting together no less than twenty days prior to the date of the annual meeting of members. A list of any nominations by petition will likewise be prepared and posted. Nominations from the floor shall be limited to candidates whose names have been submitted to the Secretary at least twenty days prior to the date of the Annual Meeting. All nominations, including those by the Committee on Nominations, those by petition, and those to be made from the floor will be submitted to and acted upon by the membership at the 2014 Annual Meeting. A statement of the number of Trustees to be elected and the names and addresses of the candidates (the nominations made by the Committee on Nominations, nominations made by petition, if any, and the names of candidates to be nominated from the floor, if any, being listed separately as required in the bylaws) will be mailed to the members with this Notice of Annual Meeting.

Article 111, Section 5 of the Bylaws states in part: Each Person who otherwise qualifies and who wishes to vote shall register the day of the member meeting and shall be entitled to only one vote on each matter submitted to a vote at the Meeting of Members. Voting persons other than members who are natural persons (e.g. church, business, etc.) shall be allowed by the presentation to the Cooperative, prior to or upon registration at each Member Meeting, of satisfactory evidence entitling the person presenting the same to vote. Voting authorization forms are available at the rnain office of thi,; Cooperative locatE;d at 1300 \Nest Avenuo D, Lovington; nt tho dis!.rict offices in Tirturn and Plains; or by callino blb-:JD6-::J63 ·1 or 1.. aoo .. 5 ·I CJ .. !:J~l..3:?.

It~ WITNF::SS WHER[OF, this r,Jo1ice hns boon iBm .. md by 1.11e Secrntary .. Tn,;asurer of the Lea County Electric Cooperative, Inc .. and it::; corporate snal hereon irnpn=issnd thk, ?fr·1 day of IVlarch, :?.014.

,, ( \ I' ' .,-/,,,(t,II ,I'' I(,, , • '·""<::I,,.,tr r I I

Dan Hardin, Secretary Tn.1m,.,un=,r

I OF RESPECTED BOARD MEMBER AND PROMINENT LEADER

William V. Palmer, Lea County Electric Cooperative (LCEC) Trustee, distinguished businessman, community leader, devoted husband, loving father, and a friend of many, passed away unexpectedly on May 14, 2013. Will was elected by the membership to serve on the LCEC Board of Trustees in April 2002. He was an outstanding Trustee who helped navigate the Cooperative through a pivotal period of transition. As a member of the LCEC Board of Trustees during the planning and building of the new LCEC Generation, LLC, Will was appointed to serve on the LCEC Generation Board. He contributed his expertise and knowledge to matters relating to the Cooperative with prudence and made decisions with integrity and foresight. Will began his career in Rule, Texas at Amoco Productions. During his time in Rule, he served as the Mayor. He later moved to Midland to work at Plains Petroleum before relocating to Lovington. At the time of his passing, he was Operations Manager for Read & Stevens. As a citizen of Lovington, Will was committed to community service and civic duty with unrivalled energy. He was a prominent public figure involved in organizations and causes dedicated to improving the quality of life for all. Will was an active member of First Baptist Church of Lovington. He was Past President Will greeting a member at the 2013 LCEC Annual Meeting of the Lovington Rotary Club where he also served on the Board and had been honored as a two-time Paul Harris Fellow. In addition to serving on the LCEC Board for almost 12 years, he also served on the Board of the Lovington Chamber of Commerce and New Mexico Oil and Gas Association. Will was a loyal member and Past Master of Lovington Masonic Lodge# 46. Will was involved in theater and film productions. He was an avid Texas Rangers fan, cyclist, a talented public speaker and enjoyed politics. He was in the process of researching and writing a book about his own father's experiences as a soldier during World War II. Will leaves a lasting legacy as a distinguished community mentor, respected leader, generous, and good-humored man. His passion for life was contagious and he rarely passed up the opportunity to make someone smile. He ser-mrl his family ::md corT1rnunity well .. Will was an alurnnus of Texas Ti)ch University.. Will married Shelley ,Jackson in '1982. They liavo two (.:liildren: Matt and his wifn, l<.risten; and Micah Dlair and Gmy Hurse nm! \/Viii F','1lrnm ,11 thr'• I CFC Will F-'almm at f~ead aml Stevens. Gun1,rnlion, L1.C prrnmdbreakir19. h1::;r· husband, Auslin .. They also have two nrandchildren. LEA COUNTY ELECTRIC BOARD OF DIRECTORS

JOHNINGLE DEAN KINSOLVING President Vice President Spouse: Karen Board member since 1983 Board member since 1986 Representing District 6 Representing District 3 Occupation: Ranching Occupation: Retired Superintendent of Tatum Schools/Ranching

WADE ROBERTS ROBERT CAUDLE Spouse: Shelley Spouse:Joyce Board member since 2003 Board member since 1984 Representing District 7 Representing District 1 Occupation: Banking Occupation: Landman

RAMON HILBURt4 JOHN GRAHAM Spouse: Marcia Spouse: Jeanine Board member since 2011 Board member since 2012 Representing District 5 Representing District 1 Occupation: Ranching Occupation: Businessman/ Newspaper Publisher

DAN HARDIN KENNETH WALLACE Secretary-Treasurer Spouse: Elaine Spouse: Sandy Board member since 2013 Board member since 2004 Representing District 1 Representing District 4 Occupation: Businessman/ Occupation: Finance Oil & Gas Services

TERRY DAVIS Spouse: Wadonna Board member since 1984 Representing District 8 Occupr1tion: Farming

DISTRICT

l<,1,:nny VV,1!!1H:c R,Hn::.>11 Hdix1t 11

~---, }.'!hn (ii ,1h,1.n1 IJ 1)1~<1r1 ~~:n~o!',11111; John !ngi(-' li~~} VV11rif~ Reih1:n'; a D,1n H.ndin D r,~ny D.WIS

, , 1._ ,::our.; 1 Y 1-1 H.: rri:c 1,.1Ju1--T Hh 1 iVL·. 20 u 3 1:::d,,t~,li111; 66 ';lf,,,u,i- MESSAGE FROM MANAGEMENT

Lea County Electric to be more beneficial to our membership. Cooperative, Inc. (LCEC) The LCEC Board places high priority in is celebrating 65 years of maintaining and improving the LCEC system to ensure service to the members in our reliability and performance. These improvements are southeastern New Mexico accomplished through our established USDA Rural and West Texas service Utilities Service (RUS) funded work plan funded at a territories. We take pride in lower interest rate available to electric cooperatives. the safe and reliable electric LCEC has just completed a four year $28 million work service we have provided since plan. One of the projects funded in the work plan John Ingle 1949. Our membership has is the pole-change out program. Over a seven year grown to approximately 6,800 rotation, every pole in the LCEC system is tested. consumers and 15,770 meters. The poles identified as substandard are replaced. LCEC is a progressive LCEC is seeing growth in our oil field load. To distribution cooperative who accommodate our growth and expansion, there is looked for innovative and a need to build new substations along with added sound solutions to our future transmission and distribution lines. In 2013, LCEC power supply requirements. In energized a new transmission switching station 2010, we became a member which will provide increased reliability in Gaines of Western Farmers Electric County, Texas. Planning and design began on a Cooperative (WFEC) located one mile tie line between the new switching station in Anadarko, Oklahoma. That and our existing KCM substation which is expected Gary L. Hurse same year, a new power supply to be complete in 2014. New distribution lines that contract was negotiated with Xcel requiring LCEC were built totaled 35 miles of new distribution lines. to reduce capacity and energy requirements in four LCEC experienced an increase of approximately phases that will result in full power supply requirement 6560 horsepower of combined oilfield, irrigation and from WFEC in 2026. Early in the second quarter of commercial load. 2011, we began construction of the LCEC Generation Our master communications plan is also covered Plant which was completed by end of 2011. LCEC under the work plan. North American Electric successfully completed the first step from the Xcel Reliability Council (NERC) requires dependable system by reducing 42 megawatts (MW) with the communications with all substations. LCEC is in the LCEC Generation Plant and the Wildcat Wind Farm. process of replacing the antiquated analog system The transfer of our generation plant to WFEC as part with an efficient, updated system. This will improve our of our equity in membership should be complete in communications to our remote locations and provide 2014. Over time, LCEC will be moving all our power remote offices with more efficient communication supply contracts to WFEC. wrththeheadquarteffi. When the power plant was built, LCEC took the Active community citizenship is important to opportunity to join the Southwest Power Pool (SPP) LCEC with representatives active on the Chamber of which is an energy market covering all of Kansas Commerce Board, Lovington Economic Development and Oklahoma and portions of New Mexico, Texas, Committee, Lovington MainStreet and in numerous Arkansas, Louisiana, Missouri, Mississippi and civic organizations. We participate in sponsoring Nebraska. As a rnember, ·we are able to purchase events \Nhich include !he t. .. ea County Museum ·'On our power at a more economical price as the LCEC tho Plaza" .surrnrmr sedes evonts, f'"riends of the Generation plant hedr,Jes the rnarket when applicablo. l...ibrary, ihn Loa County Fair and FlodHo, the Yoakum Tho plant c,JE.:1nerate1:; enerqy when the co.st o"I' n.mninq County Wa1:errnelon Festival and the livestock :,;.1los in tho plant is lom,, them tho 1r1,:irkol. pril..:t.i of unurqy, Wh1==:n l..e.::i, Yoakurn and Gaines countim, .. the rnarfrnt price 1'all:=, br:=,low rnn crn:rl·:=, of qeneratinq lnvestinq in our youth ii,; ol siqnific:ant irnportance electricity, we pun:::hase the power frorri SPP. The to LCEC. In w·1:3, lhu I CFC Education Foundation cost of ener9y 1:hrouqh the SPP rnarket will continue increw:;ud th1.i nurnber o-f annual scholarships

4 1:/,,J,,g,,otiny 6G '.i/,,"-'" awarded to eighty. Each scholarship is worth $1000 cover approximately 50 acres of land. While the per semester and renewable up to eight semesters. expense of solar energy is not competitive with the Funding for these scholarships is provided from other resources, LCEC is taking the opportunity unclaimed capital credits that would otherwise be to understand the development of this abundant returned to the state of New Mexico. Since 1987, resource as a potential energy source for the future. LCEC has invested over $1.3 million for members and LCEC is vigilant to stay current on any other their dependents in scholarship funding. legislative and regulatory issues both on the state LCEC continues active participation in the annual and national levels. As a member of New Mexico Government-In-Action Youth Tour in Washington, Rural Electric Cooperative Association (Statewide), D.C. Four area high school students are sent WFEC and Texas Electric Cooperatives (TEC), we to Washington where they learn about electric have a responsive group of professionals who cooperatives, American history and U.S. government, keep us informed of legislative issues that affect and visit with their representatives in the House and our membership. The Board and Management will the Senate. continue to monitor proposed legislation to achieve LCEC is a partner in education to many schools. an acceptable balance regarding the environment LCEC is a long-time sponsor of the "Character and the cost incurred with such issues. Counts" program at Ben Alexander Elementary LCEC lost our friend and board member in May school. Safety is taught to school children through with the sudden passing of Will Palmer. All of us who the electric arcing demonstration, the electrical safety knew him appreciated his commitment, thoughtful board and the annual Safety Poster Coloring Contest. guidance and the knowledge he contributed. Will LCEC was able to coordinate a grant with New represented LCEC District 1 and was re-elected to Mexico State University (NMSU) in utilizing a lighting a third term on the Board in 2012. Kenny Wallace program in 2011. LCEC was able to pair the grant was appointed by the Board to serve the remainder with both Lovington and Tatum schools in retrofitting of Will's term as a Trustee. dated lighting with energy efficient LED lighting. The As you will notice on the following pages, the grant was completed in 2013 with the completion of LCEC Board, Management and employees continue the Tatum schools retrofit. to practice sound financial discipline. We are happy Environmental stewardship is another priority to report operating margins are healthy at $3.2 to LCEC. We have demonstrated our leadership in million and kilowatt sales at just over 1.1 billion. Our continuing to search for plausible renewable energy assets and liabilities total $177.6 million. The Board resources. LCEC purchases wind energy from the returned a total of $1,944,990 in capital credits to the 27 megawatt (MW) Wildcat Wind project owned by membership in 2013. Exelon Wind. The wind capacity for 2013 was at 42 % As we mark the 55u, year of LCEC, we celebrate which exceeded the initial projection of 38%. LCEC the privilege of serving our members. The Board, members will benefit from a second wind project to Management and dedicated employees will continue be completed in 2014 in the Maljamar area. This to take pride in our day-to-day work on behalf of project will consist of seven turbines with a total our members. We are all committed to our focused output of 15 MW. The Wildcat Wind Farm and the strategy-providing safe, reliable energy for today Anderson Farm (Maljamar) will provide the necessary and in the future. Ronowablo Enerqy Cmdits (REC) to satisfy tho Stato ol Nflw Mexic() require1·1·1ent::;. ·rhe slate l,:iw req11i1·ns an electric cooperative lo purchase five percent (b(J{,) of enet\W sales frorn a renewable pn:iject. The requirement increases by one percent per year tor a John Ingle Gary L. Hurse total of ten perc1,.mt ("1Ql;1i,) in 20;~0. Preside11t [::

Management Team

Gary Hurse Alma Griffin Executive Vice President Executive Assistant to the and General Manager General Manager

F',ack row llrom left): ,Jot·m Be1rnrd, M,1nager of [)i::,tribution Fr19i11corino/lnfonrn1tio11 Ti::chnolo\.1)''. Suzie 8mwn, Manaqer of Me111bf,r Sen/ices. 1::·ront 1:fow: ,.. lane!te F1:1ds, r•,/lan1:1oe1· of /ldministrative Srm1ices: Bobby f(irntm:i, /\i;sislant General M,mai;ier/Manaoer of Systern:,, Or.mrffUons nm.I Planninr;i; Mille hu•ii•,, !vlana9,·1r· of ,~.ccmrntin[i.

f1 LC·:-<. ('.C.) 1,JJ,~ Fl FC; f?l(: c:1.)C)F)[~·~.f\-[ lVi.:: 207.:J' t!_.t,_,/:,~,liw1 6/j ';lj.,,.,,,,, LEA COUNTY ELECTRIC DEPARTMENTS

System Operations and Planning

Bobby Kimbro Assistant General Manager/Manager of System Operations and Planning

Top row (from left) Line Personnel: Mike Caudillo, Joe Garcia, Skyler Boroughs, Daniel Utajara, Brad Harrison, Jarran Chesser. Second row from top: Manuel Gutierrez, Stuart Graham, Jason Neff. Jorge Lozoya, Arthur Pando, Doug Gruenewald. Adam Marquez, Omar Pinon. Steve Pebsworth, Gary Jones, Alfredo Melendez. Director of Line Operations. Front Row: Scott Boldt, Orlando Espinosa, Jeff Redman

Back (from leH): Delton .Jones, svstem Operator: Frorn lelt l::.dw,ml ll/lcl3ride, Substatio1·1 Foreman: Edward 1\mwla, Supen1isor ol r;tobm·t CoK. Cmnpliance Coordinator; G1·e9 f'aith, Substation Opera!iom,: Georoe Morri:;, Apprentice Corrn1·11.mic.aliorn,:; l:,al'I Davis, Director ot System Opfm1tiorn, ,'md F'la11nint;1; Subs.tat.ion T1,crmician; Darrel Ful:,1,,rnl1s, Safety Coo1di11al.01: Kelvin Wood 11• l

7 LEA COUNTY ELECTRIC DEPARTMENTS

Administrative Services

Janette Faris Manager, Administrative Services

From left: Rosie lnsilan, Administrative Assistant/Benefits Coordinator; Erminia Alvarado. Utility Person; Mari Valencia, Customer Care Representative/Receptionist

Member Services

Suzki Brown Mana9er, M1,,1nber Se1vices

f:-'rom left: ,Jessica Corte~'. Customer Service r,;tf~pr(JSf::ntative ((~SF~); Micah St·1orler, C~SF~; April LUrli't Merr1ber Smvices; Cherol f\utry, Tatum Office cs1:1; Joyce Connolly, Director o'! Cuslorner Service: Sarah Maker, Collection,; Coordinator; Nellie Garz,i, CSR; /\nnelte Alvm-;cido, Pl,1ins Office CSR

a '[',:/\ (,::,;t)l\lI\1,' Fi.:·:c·:·r;~!C COU/)l-.h',C\t 11/r:. ?O"r'.J' 6~f"f.,.,N111; 66 \Ye"'"· LEA COUNTY ELECTRIC DEPARTMENTS

Distribution Engineering

John Benard Manager of Distribution Engineering/Information Technology

From left: Floyd Chrisman, Staking Technician; Erik Hernandez, Staking Technician; Manuel Quiroz, Supervisor of Staking Technicians; John Cartwright, Staking Technician

From left: Rick Porras and Britt Kerby, Mapping Technicians

Information Technology

r·:rorn lelt Bern::m.l r.lutcher ancl r;:oy 1.izmdo, Jr., ri/tetc,r Ti•,ch11ici1111s

Frorrr lefl: Shawndee r·;:_aburn, Director of IT: .Justin 1\/lunoz, IT T,•ichnician; Sean I3uthrie. Network Administrator1Sy1.,tern i\m1lyM; Kyl,,i Colernan, F'n:i9mrnrnerl System l\nnlys!

9 (Melil'llti11.~f 6{; ':lie,.w,,. LEA COUNTY ELECTRIC DEPARTMENTS

Accounting

Mike Faris Manager, Accounting

Back (from left) Robert Capps, Purchasing Agent; Nelly Dominguez, Accounts Payable; Sheryl Glanton. Bookkeeper; Jane Salcido, Billing/Payroll; Ruben Aguilar, Serviceman; Mike Salas, Warehouseman. Front: Denise McDaniel, Accountant; Judy Ragland, Billing.

Gary "Butch" Taylor Retires After Jackie McDonnell Retires After 22 Years of Service 35 Years of Service

Gary "Butch" Taylor Jackie McDonnell of retired in December 2013 Plains, Texas retired in May after 22 years of service of 2013. He began his to Lea County Electric career as an Apprentice Cooperative (LCEC). Butch Lineman in August 197 4 was the Chief Mechanic at and throughout his almost the time of his retirement. 35 year career served in the He was one of the grill Line Department and Meter masters at the annual LCEC Reading Department. Jackie Member Appreciation Days also served the Cooperative in each District. Butch was r1s a contract Meter Reader Gary "Hui.ch' layk,r Jackie McDonnell instrurnental in the buildinq of for over four years, '\Jackie's all 1.. CFC 1l(lal.s. He was selected by his collear1t1es h:nowlodqe of 1:he Held and hard work were a 9mat as thi::1 L.. CEC Au9ust :;)007 Er1·1ployoi:i ol the Month, c:ont.1·ibu1:ion to the Cooperative. His keer1 observance ''Hutch was a dedic,:iti::id prolessional anc! of conditions in the field rrnedin9 at!errl.ion was vrny was truly a vital rnernber of the LCLC learn,'' said beneficial to the c:ooporative's hazard rHcoqnition Gimy Hurne, LCFC Cieneral Manqer. "Elutch did a and safety proorarn, said Gary Hurse, LCEC General trernendous .iob in keepin9 our fleet and trt1cks in ~/1ana!:ier." excellent co1·1cJition .. '' ,Jackie .:=ind his wile, Gail, are thankful for the lirne Hutch and his wilD, Diana, havt'i relocated to they have to enjoy their grandchild1·en., Indiana to enjoy their 1·etirernent

10 .(l,,f,,/:,~,li11q 66 'H.-w111 AWARD GIVEN TO LCEC GENERATION

Back row: Robert Peltier, Editor in Chief of Power Magazine; Gary L, Hurse, LCEC General Manager: the late Will Palmer, LCEC Trustee; Chris Marks, Burns & McDonnell principle; and Grant Grothen, Burns and McDonnell principle. Front row: John Ingle, LCEC Board President; Joe Broadwater, LCEC Generation Plant Manager; John Graham, LCEC Trustee and Robert Caudle, LCEC Trustee,

Lea County Electric Cooperative (LCEC) Generation, LLC was awarded with POWER Magazjne's 2012 Top Plant of the Year at the 2013 Electric Power Conference held in Chicago in May. LCEC General Manager Gary Hurse and LCEC Board President John Ingle accepted POWER Magazine's 2012 Top Plant Award on behalf of the LCEC Generation Plant. Trustees who accompanied Hurse and Ingle to the awards ceremony in Chicago were Robert Caudle, John Graham and the late Will Palmer along with LCEC Generation, LLC Plant Manager ,Joe Broadwater. This award recognized a plant that had entered into commercial service within the past one to two vean;; and lead !he industry in HH,1 s1 ...1ccessl'ul deploy1r1r:int of advanced technoloqy and eHicirn1cy with 1ninirnal environrnental irnpact LCEC was profiled in tho S1,:ipte1r1ber ·1, :?CJ'1 :? issue of POWEF/ /'vlagazirw, LC[C Generation is a 47 Me9awatl: (MW) qrn;;,,,fi1·ed pl.'lnera1'ion plant that was co1T1pleted in 2(r!:?. l! consists of live VVdrisilii rnciprocati119 en9ines with the ability to brinq the plant to full capacity in live mi1·1ute,:.. The plant is tied directly to a 27 MIN wind farm owned by Exelon 1Nhich is located soulJH,iast of the plant This is the first qerwration p1·oject in IJ1fl United States to pair the Wiirtsi!Ei qonsets 1,A1ith wind t,Jner9y, /.\ward finalists and winners were dntennined by P()VVEFI f'.,1agozim,1 editors frorn norninalions submitted by dl"1siqners, conslructors, operators, nnd suppliers ol' power pkints,

'11 (i;,f,,11, ... ri,,y 65 '.Yem•,) AND FIGURES

2013 Consumer Sales 48.00%______

40.00%______,

32.00%______-I. !ill>------

24.00%______-!ifu._------

16.00%______... ,illE' 1 8.00% j; !J ' 0.00% ~~~-f-,lilli======~~~~:,\ f':. :======~~~~:::======~--19 __ _ Residential Irrigation Small Large Other Sales Commercial Commercial to Public 2013 Operating Expenses

2% 4% • Purchased Power

• Transmission expenses

~1, Distribution expense - Operation • Distribution expense - Maintenance • Customer Accounts Expense

1:11i Administrative & General Expense ?, Depreciation & Amortization

Interest on long Term Debt

KWH Sales & Purchases 0.0900 ______0.0800 ______/', 0.0700 ______~,-----•'-•••••M,_= ✓''½~', /'"\, ' , Retail Sales \ """"-•« ..,,w.,,,.,,,,_,,,,,,,,,"J/"" ..... r- 0.0(3(10 "

u.rnioo ..... Wholesale O.OWU F'urchases C,0:300 0 0200 0.(1100 ''' i.r:~ (""':r ~, •": t> t·:, ii~ (:) Z CJ

'! 2 ,e,.f.,{~,"''·"i' 66 "H,,.,1,,, 140,000,000

120,000.000 2012

100,000.000

2013 80,000,000

60,000,000

40,000,000

20,000,000

158001______,,..,..,..------

15000

jl)9()()

3 4 a D 10 ·1·1 1')

1 1- /\ (.:·· i •i 1 : r Wi 1!'/i. 20'/J 1 STATEMENT OF INCOME

Years Ended December 31, 2013 2012 Increase Amount % Amount 0/o 1Decrease)

OPERATING REVENUES Residential s 9,149,176 10.8 $ 7,986.971 10.7 $ 1,162,205 Irrigation 16,627,103 19.8 15,954.393 21.4 672,710 Commercial and Industrial 57,423,586 68.4 51,383.674 69.0 6,039.912 Public Buildings and Other Authorities 1,213.824 1.4 1,059.382 1.4 154,442 Accrued Unbilled Revenue 325.001 0.4 216.906 0.3 108.095 Power Cost (Over) Under Collected (1,208,195) (1.4) (2,636,808) (3.5) 1.428,613 Other Operating Revenues 467,643 0.6 533,959 0.7 !66 316) Total Operating Revenues $ 83 998,138 100.0 $ 74,498,477 100.0 $ 9,499.661

OPEFVUING EXPENSES Purchased Power $ 58.792,007 70.0 $ 51,820,294 69.6 $ 6,971,713 Generation 1.684,067 2.0 1,370,839 313,228 Transmission 876,970 1.0 897,381 1.2 (20,411) Distribution ~ Operation 3.471,273 4.1 3,353,964 4.5 117,309 Distribution - Maintenance 1.634,715 1.9 1,802.005 2.4 (167,290) Customer Accounts 921,440 1.1 1,157,542 1.6 (236,102) Customer Service and Information 59,484 0.1 51,833 0.1 7,651 Sales 38,837 0.0 32,911 0.0 5,926 Administrative and General 4,637,111 5.5 3,748,561 5.0 888,550 Depreciation and Amortization 4,667,927 5.6 4,579,730 6.1 88.197 Cost of Removal 1,303,923 1.6 1,237.149 1.7 66.774 Interest Credit Cost of Removal Restricted Funds Earnings (1,023,506) (1.2) (1,252,637) (1.7) 229.131 Taxes 50,049 0.1 45,158 0.1 4,891 Other Interest and Deductions 25,222 0.0 39,128 0.1 !13,906) Total Operating Expenses $ 77,139,519 91.8 $ 68,883,858 90.7 $ 8,255,661

OPERATING MARGINS - Before Fixed Charges $ 6,858.619 8.2 $ 5,614,619 9.3 $ 1.244.000

FIXED CHARGES __1_.7_ 1,084,225 Interest on Long-Term Debt 2,362.934 ~ 1,278,709

OPERATING MARGINS -After Fixed Charges $ 4,495.685 5.4 $ 4,335,910 7.6 $ 159,775

Capital Credits 221,148 0.3 131,057 0.2 90,091

NET OPERATING MARGINS $ 4,716,833 5.7 $ 4.466.967 ~ $ 249,866

NONOPERATING ITEMS Interest Income $ 516.295 0.6 $ 374.572 0.5 $ 141,723 Collection of Western Farmers Equity Requirement 2,205,958 2.6 2,205.958 3.0 0 $ 2,722,253 3.2 $ 2,580 530 3.5 $ 141.723

NET MARGINS $ 7,439,086 8.9 $ 7,047.497 ·11.3 $ 391,589

OTHER COMPREHENSIVE INCOME (LOSS) Current Year APBO Valuation Adjustment 1,033,300 (29,100) Post-Retirement Benefit Amortization 132,095) (37,205)

C<'.JMl"l',EHENSIVI:' II-ICOM[ B. .:1•10.2Cf'! s 6,~)~J'!. H}2

l-'ot~t-r~o1in;m(;ni t::cnt1fit 1\dIu~:.trne11t ; 1 no 1,2u~~! GG,:>tlS

PA·:· P. () 1'-~tV·i f:: C1\f''IT!\L. IJF, Gll'•,NINU (JI YCi\1'1 7? t·,'17.'i)I·)!) 67,50'!,4'!1

11·<1\N:·IFH·< ·1 U Ort·IU·< H)UITlo:S (24'.\ 573) 1·,,1,rH0I·,11ni:: C/1,F'i'II\L !-~E:T!H[D 12 .ODH, ·I4:~t i 1,C87.:.Ht))

P,1\T H.( )(\l/\0 ~:· CN'IT/1L. [ND 01' Y[/\1, :·:;::::.-/ g,1'./1:!_?,[}(~!~-.....-.

'14 f/ei',,f:t'f.difl~:I 66 '}liPON. ·--·II BALANCE SHEET

DECEMBER 31, 2013 AND 2012

ASSETS

December 31 , 2013 2012 rlLITY PLANT AT COS! Utility Plant In Service $ 217,960,254 $ 210,995,584 Construction V'✓ork in Progrt~ss 2,533,386 4,399,445 Contributions in Aid al Construction (28 3G3 145 (27,205.964) $ 192.130,495 $ 188.189,065 Less: Accumulated Provision for Depreciation 63,963,311 61,154,068 $ 128.167,184 $ 127,034,997 rHER PROPEFffY AND INVESTMENTS Non-Utility Property (At cost) $ 46,482 $ 46,482 Investments in Associated Organizations 7,200,611 4,956,350 Other Investments 5,342,883 7,644,916 Special Funds - Restricted 35,'.158,026 35,327.834 Postretirement Reneflts 2,267,000 1 170,700 $ 50,215.002 $ 49,146,282 JR RENT ASSETS Cash $ 1.596,984 $ 3,701,382 Temporary Investments- Cash Equivalents 4,222,002 1,750,826 Temporary Investments- Other 3,488,000 3,691,000 Casl1- Restricted Reserve f'unds 3,308,041 3,304,950 Accounts and Notes R,iceivable (Less allowance for uncollectibles of $275,824 in 2013 and $301,313 in 2012) 7.508,171 4,665,737 Power Cost - Under Collected 2,655,512 1,657,749 Accrued Unbilled Revenue 6.219,923 5 894,923 Materials and Supplies 3,320,142 3,818,613 Other Current and Accrued Assets 558,416 541,398 $ 32,877,191 $ 29,026,578

:FERRED DE.BITS $ 4,154,270 s 1,826,162 lTALASSETS $ 215,413,647 s 207 034,019

EQUITIES AND LIABILITIES ,UITIES Membersl11ps $ 34,505 $ 33,920 Patronage Capital 78,047.908 72,617,965 Accumulated Other Comprehensive Income 1,240.500 239,295 Other Equ1,1es 2,096 G96 2,086,696 $ 81.419,609 $ 74,987,876 )NG-TERM DEBT RUS Mortgage Notes Less Current rvlatunt1es $ 1.753,123 $ 1.881,287 FFB Notes Less Current Matunt1es 78.420,908 69,521,660 CFC Mortgage Notes Less Current Maturities 2,946,772 3,241,142 CoBank Mor1gage Notes Less Current Maturities 4,339,964 4,864,630 RUS Advance Payments (8,830,522i (3,557,169) $ 78,630,245 $ 75,951,550

)ST OF REMOVAL LIABILITY $ 35,263,967 $ 35,023,249

JRRENT LIABILITIES Current Maturities of Long-Term Debt $ 3.089,000 $ 3,057,000 Lines of Credit 1,534,243 3,417,031 ,t\Cl'.'01,Jflt'.~;, ray.-;ihrr., .. :-i1.1rch.~~S{-~d row'(•r '.l 840,930 3,604,161 f\ccrn.. mt~-;. f 'ayf1hle - ( mwr '1 _()f>7, 7~:~4 ·i .DOO.G4'., (~on:,1Jr1wr 2.676,873 2 .:JfH:i,82·~ 0!)"'11.)t 'I (:1 1:l!'.i.Gilt.'. ~ .324,20:~ ~li ·11.l.~HM,:372 $ 1~i.GU8,t~t1·1

$ ~),70!\~~)4 ~ c) ·:11~\41n

l!Al. LOUITl[S Al'iLi LIAi:IILIIIF ,;

""' 15 STATEMENT OF CASH FLOW

December 31, 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES Net Margins $ 7439,086 $ 7,047,497 Adjustments To Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities Depreciation 4,979,347 4,850,656 Cost of Removal Accruals• Gross 1.303.923 1.237,151 Post-Retirement Benefit (Expense) 15,105 97,305 Capital Credits (2,385467) (2,337,015) Deferred Debits (2,328,108) 1,835,917 Deferred Credits 332.971 405,919 Accounts and Notes Receivable (4,165,197) 1,047,070 Inventories and Prepaid Expenses 481,453 (895,442) Payables and Other Accrued Liabilities 546,299 (1,089,566) Net Cash Provided by Operating Activities $ 6,209,412 s 12,199.492

CASH FLOWS FROM INVESTING ACTIVITIES Additions to Utility Plant $ (6,244,688) $ (11,095.890) Cost of Removal Incurred (1,138,784) (1,166,559) Contributions and Other Additions to Cost of Removal 75,579 28,085 Salvage and Other Credits 133,154 343,230 Additions to Restricted Cash Reserve Accounts (3,091) (3,304,950) Other Property and Investments 2,626,047 5.345,733 Net Cash Used in Investing Activities $ (4,551,783) $ (9,850,351)

CASH FLOWS FROM FINANCING ACTIVITIES Payments on Long-Term Debt to RUS - Scheduled $ (131,164) $ (194,725) Payments on Long-Term Debt to RUS. Advance Payments (5,273,353) (172,431) Payments on Long-Term Debt to FFB (2,043.090) (1,890,444) Payments on Long-Term Debt to CFC (278,370) (264,209) Payments on Long-Term Debt to CoBank (501,666) (476,462) Payments on CFC Line of Credit (500,000) Advance on Long-Term Debt from FFB 10,938,338 51,357,000 Net Activity 011 Line of Credit CoBank (1,882,788) 3,417.031 Net Advances (Payments) on Line of Credit- NCSC (48,622,673) Payments on Behalf of Retirees (110,200) (130,800) Retirement of Patronage Capital {2,009,143) (1,687,376) Memberships 585 205 Net Cash Provided by (Used in) Financing Activities $ (1,290,851) $ 835,116

INCREASE IN CASH AND CASH EQUIVALENTS $ 366,778 $ 3,184,257

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 5,452,208 2,267,951

CASH AND CASH EQUIVALENTS - END OF YEAR $ 5,818 986 $ 5,452,208

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash Paid During the Year for: Interest on Long-Term Debt $ 2,307,890 $ 1,602,230 Income Taxes $ 0 $ 0

During the year ended Dec<'lmber 31, ?013 and 2012. the adJustment for the application of the Employers' Accounting for {lelined Elem:.,fit 1::iensinn anr:.1' OtrJe1 Po,'.-;t .. f~ 1(i/irnmc,,id 1:=i;;:n1s c("1a1·1~:WG U1e ac~.'.n~~=~d pm>t .. retirf~•nh::n1: l:H.=::·1i1:;fit b~/ $1,001,~'.0S a11el \'.hi:~i.-1,::;u.1:,) riino chHnoed er:pntIe~:~ tiy n·1e s,~Hne ar:"1otInt :n ~!01'..~ tH'1(t :;0-12, n~,:·{pect.ivo!y.

Hi l!,,f,,/,,,nli111J 61':i ',/;/,,w•o THE SEVEN COOPERATIVE PRINCIPLES

1. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2. Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.

3. Members' Economic Participation Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

5. Education, Training and Information Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public-particularly young people and opinion leaders-about the nature and benefits of cooperation.

6. Cooperation Among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, nationnl, reqionr-il anrl international structures ..

7. Conc,nn for Cornrnunity While focusinq on rnernbor r1eed~. cooperatives work for tr1e sustainable developr-r1ent of their communities throu9h policies accepted by lhoir· rnnrT1hnrs. PRESORTED STANDARD U.S. POSTAGE PAID LOVINGTON, N.M. PERMIT No. 47

Drawer 1447 New Mexico 88260 ;\;:'.co1 ding to the Paperwork Redllclion Act of 1995, an agency may not conduct or sponsor. and a pcr~on is not required ~o respond to, a collection of information unks:; fr displays a valid Ol'dil control number. The vfilid 0~.;113 control number for this infonnation collection is 0572-0032. Thu time required to complete this infonn,~tion co\ki::tion is estimated lo average- IS hours pe1 response. including the time fr;r reviewing i11stn1ciioi1.s:. searching existing d:..Ha sources, .!!atheri1~g and maintaining th~ dara needeci and comple1ing and reviewing 1hc collection ofinfonnation. UNITED ST,\TES DEPARTMF.NTOF .:,GRTCULTURE BORROWER DESIGNATION RURAL UTILJTIES SERVICE NM0023

FlNANCfAL AND OPERA TING REPORT PERlOD ENDED December, 2013 {Prepared with Audited Data) ELECTRIC DISTRIBUTION llORROWER NA!v!E Lea County Electric Cooperative, Inc. INSTRUCTIONS - Sec help in theonlinc applirntion. This inli:lrmation is analyzed and used to determine the s!J!:,mittcr·s fimmci,! s,tuation and foasibility for loans and guarantees. You are required by contract and applicable regulations to provide lhe information. The infomiation provided is subjc-c: to the Freedom of Information Acl (5 U.S.C. 552) CERTIFICATION

We recognize that statements contained herein concern a matter within the jurisdiction of an of the United States and the making of a false, fictitious or fraudulent statement may render tht m:d,cr sub.iect to prosecution under JS, L'nited Sta tcs Code Scdion 1001. r:.-::', We hereby cc1tity that the entries in this report are in ;;ccord,rncc with the accounts and other records ':j;, r, of the system and reflect the status of the system to the besl of our knowledge and belief. 0 ·:£ ,. -~ ,-,; ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, RUS, WAS IN FORCE DIJRING nm REPORTING ,,- PERIOD ANO RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES DURING THE PERIOD COVERED r{\ BY THIS REPORT PURSUM~T TO PART 1718 OF 7 CFR CHAPTER XVII ~ (c!,eck one ofthefbiiow/ng)

D All of the under the RUS loan documents There h8s been a default in the fulfillment of the obligations have· been in all material respects. ltndcr the RUS Joun documents. Said dcfoult(s) is/are 6 spc·cifically descnbed in Part D of this report_ (.~

DATE

PART A. STATEMENT OF OPERATIONS YEAR-TO-DATE ITE.M LAST YEAR THISYFAR BlJDGET TIIISNIONTH (aJ (b) (c) (,() I. Operating Revenue and Patronage Capital 74,268,404 83,8,13,756 78,819,464 6,636,897 2 Power Production Expense 3. Cost of Purchased Power 55,519,592 65,015,093 59,099,871 4,768,542 4, Transmission Expense 897,531 877,025 1,011,000 101,956 5_ Regional Markel Expense 6 Distribution Expense - Operation 3,353,814 3,471,218 4,009,414 355,978 .., /, Distribution Expcns•a - Maintenarn;e 1,80.2;005 11634,715 1,351,158 203,790 8_ Cu,,torner Account, F,,pensc 1,157,543 921,140 981,215 '18,347 9_ Customer Servic·e "'-d lnforrnational Expense 51,833 59,484 67,787 10,614 lO. Sales Expense 32,911 38,837 45,634 6,384

I I. Adrninistrntivc and General Expense 3 l 013,594 3,609,885 3,537,603 699,732 12. Total Operation & Maintenance Expense (2 Ihm II) 65, 82,3, 823 75,627,697 70,703,682 6(225,343 13. Depreciation and /\n,mtization Expense 3,107,919 3,310,501 3,546,412 291,055 14_ ·fax Expense Propnly & Gross Receipts 15 Tax Expense • Other 45, 158 50,049 4':i, 415 3,956 16. Interest 011 Long-Tcrn1 Debt 3_:,,3 ,694 1,558,367 1,230,317 163,462 1'/ lnkrest Charged to Cotistruction - Credit 18_ lnlerest Expense -- Other 39,128 19,178 23,264 1,802 19. Other Deductions 6,044 6,0'14 20. Tobtl Cost of Electric Serl'itc (12 thru lY) 69,964,722 80,571,836 75,549,090 6,691,662 2L Patronage Capital & Opcrnting Margin;(/ 111i11us 20) 4,303,682 3,271,920 3,270,37,1 (54,765) 22. Non Opera! ing Margins . Interest 3501227 488,493 403,972 66,495 23. Allowance for Funds UseLI During Construction 24. lncc:mc (Loss) from Equity lnvcstrnents 55,572 1,283,206 1,283,206 25. Non Operating Margins - Other 2,205,958 2,205,958 2,205,956 183,830 26. Gene,Aion and Transmission Capital Credits 27. Other Capi la! Credits and l\1tronage Dividends 131,057 189,509 183,442 28. Ext,·,,ord,11cuy Items 29. PatI·onagc Capital or Margins (2/ tlm1 21/) '/, 047, 496 7,439,086 6,063,744 1,478,766 RIJS Financial and Operating Report Electric Distribution Revision Date 2013 UNITED STATES DEPARTMENT OF AG:,lCULTURE BORROWER DESK,NAT!ON RURAL UTILITJES SERVICE NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED Decer:tber, 2013 INSTRUCTIONS See help in the online application.

PART B. DATA ON TRANSM.ISSlON AND DISTRIBUTION PLANT YEAR-TO-DATE YEAR-TO-DATE ITEM LAST VEAR THIS YEAR rri;M LAST YEAR THIS YEAR (11) (b) (a) (b) I New Services Connected 311 271 5. lvlilcs Transmission 338.31 338.31 6. Miles Distribution - 2. Services Retired 33 36 3,762.89 3,788.69 Overhead 7. Miles Distribution• 3. Total Services in Place 18,775 19,010 105.09 105.53 Underground 4. Idle Services 8. Total Miles Energized 3,176 3,321 4,206.29 4,232.53 (Exclude Seasonals) (5+6+7) PART C. BALANCE SHEET ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS 1. Total Utility Plant in Service 136,289,302 30. Memberships 34,505 2. Construction Work in Progress 2,533,385 31. Patronage Capital 70,608,822 3. Total Utility Plant (l + 2) 138,822,687 32. Operating Margins • Prior Years 0 4. Accum. Provision for Depreciation and AmorL 60,869,144 33 Operating Margins - Current Y car 6,955,675 5. Net Utility Plant (3 - 4) 77,953,543 34. Non·Operating Margins 2,580,107 6. Non.Utility Property (Net) 46,482 35. Other Margins and Equitjes 1,240,500 7. Investments in Subsidiary Companies 16,281,722 36. Total Mar2ins & Equities (30 thru 35) 81,419,609 8. lnvest. in Assoc. Org. Patronage Capital 743,875 37. Long.Term Debt• RlJS (Net) 1,896,123 9. Invest. in Assoc. Org. - Other - General Funds 6,067,814 38. Long•Term Debt FFB • RUS Guaranteed 43,245,552 10. Invest. in Assoc. Org. - Other - Nongenernl Funds 146,383 39. Long-Term Debt - Other• RUS Guaranteed 0 IL Investments in Economic Development Projects 150,000 40. Long.Term Debt Other (Net) 7,287,454 12. Other Investments 7,609,883 41. Long-Term Debt - RUS • Econ. Devel. (Net) 0 13. Siiecial Funds 35,358,026 42. Payments Unapplied 8,830,522 Total Other Property & Investments Total Long-Term Debt 14. 66,404,185 43. 43,598,607 (6 tltm 13) (37 thru 41 -42) 15. Cash • General Funds 1,559,960 44. Obligations Under Capital Leases· Noncurrent 0 Accumulated Operating Provisions 16. Cash - Construction Funds - Trustee 1,000 45. 0 and Asset Retirement Ob '~"""'"'' 17. Special Deposits 0 46. Total Other Nonc11rrent Liabilifa,s (44 + 45) 0 18. Temporary lnvestmenls 7,710,002 47. Notes Payable 0 19. Notes Receivable (Net) 112,209 48. Accou1;ts Payable 6,011,868 20. Accounts Receivable - Sales of Energy (Net) 6,824,846 49. Consumers Deposits 2,676,873 2 l. Accounts Receivable Other (Net) 3,226,629 22. Renewable Energy Credits 0 50. Current Maturities Long-Tenn Debt 1,588,478 Current Maturities Long.Tenn De]?t 23. Materials and Supplies - Electric & Other 2,932,707' 51. 0 - Economic Development 24. Prepayments 55,032 52. Current Maturities Capital Leases 0 25. Other Current and Accrued Assets 6,681,856 53. Otber Current and Accrued Liabilities 4,262,087 Total Current and A.ccrucd Assets Total Current & Accrued Liabilities 26. 29,104,241 54. 14,539,306 (TS tftru 25) (47thru 53) 27. Rc.,,ulatory ,~, s:,ets 91, OH. SS. R(:gulntory l .. inbiliti,,s 35,263,966

1 ),8 Olhcr D,:.fo1Tcd fk:hil·,.: ,11uc;J 1 ).~:i :~i\ ()llier Lkf,:rrccl l.)r.dit·s ;~ / 'f ~,)4 I '/ ,)() ·1·01:il ;\:m:ls ,mil OHu:T Ddlih Tot11.l li:,1hililil:s :rnd 01h1~,· Crcilits l7?,616,23H 2\1. ]_'"/'/, ()l.f:; I 23!3 ~7,, (, I /4+36 l'fim 28) (M 1,t; 1-/'6 +51 lhrn S6)

IU.iS l·fo:rnd:d :rnd Opcrnti.«1,i Hqmrt l':iedric l);,;lrihulion UNITED STATES DEPARTMENTOF AGRICULTURE BORROWER DESIGNATION RURAL UTILITIES SERVICE NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application, PERIOD ENDED December, 2013

PART D. NOTES TO l

rn IS T'in:mcinl 1111d Or,.r,:1:11 ing Rcpurt Fk,/ric Disl,t ihulmu l{Gvisir,n D:iie 2,() 13 UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATION RURAL UTILITIES SERVICE NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. PERIOD ENDED December, 2013

PART D. CERTIFICATION LOAN DEFAULT NOTES

[-:.I JS Fim1ncinl :1:1d Ope1al.mg l!.q11n t. Ek,:I1 it.: Dis11·,IJution UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATION RURAL UTlL!TiES SERVICE NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DJSTRIHUTION PERIOD ENDED December, 2013 INSTRUCTIONS Sec belp in the online application. PART E. CHANGES IN VTILITY PLANT BALANCE AD,JUSTMENTS AND BALANCE PLANT ITEM BEGINNING OF VEAR ADDlTIONS RETIREMENTS TRANSFERS END OF YEAR (fl) (b) (c) (d) (e) L Distribution Plant 92,263,813 3,377,575 1,221,556 94,419,832 2. General Plant 9,833,468 830,370 987,748 9,676,090 3. Headqum1ers Plant 4,064,596 4,064,596 4. [nlangibles 671 671 5. Transmission Plant 19,572,035 3,857,999 93,954 23,336,080 6. Regional Transmission and Market Operation Plant 7. All Other Utility Plant 4,792,033 4,792,033 8. Total Utility Plant in Service (l thru 7) 130,526,616 8,065,944 2,303,258 136,289,302 9. Construction Work in Progress 4,399,445 (1,866,059) 2,533,386 IO. Total Utility Plant (8 + 9) 134,926,061 6,199,885 2,303,258 138,822,688 PART F. !VIATERIALS AND SUPPLIES BALANCE BALANCE ITE:VI BEGJNNll'iG OF YEAR PURCHASED SALVAGED us1,;n (NET) SOLD ADJUSH,IENT END OF YEAR (11) (b) (c) (ti) (e) (j) (g) I. Electric 3,395,134 916,552 54,287 1,261,544 206,201 4,726 2,902,954 2. Other 39,423 56,328 65,998 29,753 PART G. SERVICE INTERRUPTIONS AVERAGE MlNUTES PER CONSUMER BY CAUSE ITKVI POWER SUPPLIKR MA.JOR EVENT PLANNED ALL OTHER TOTAL (a) (b) (c) (1[) (e) I. Present Ycar .850 73.240 6.150 144.790 225.030 2. Five-Year Average 1.140 57.140 13.010 101.900 173.190 PART 11. EMPLOYEE-HOUR AND l'A YROLL STATISTICS l. Number of Full Time Employees 84 4. Payroll - Expensed 3,874,271 2. Employee - Hours Worked - Regular Time 160,431 5. Payroll -- Capitalized 1,006,749 3. Employee Hours Worked Overtime 8,696 6. Payroll - Other 676,834 PART I. PATRONAGE CAPITAL THIS YEAR ClJ/HULA TIVE ITEM DESCRlPTlON (11) (b) L Capital Credits - Distributions a. General Retirements 1,682,990 31,307,255 b. Special Retirements 259, 133 4,203,455 r. Total Retirements (11 + b) 1,942,123 35,510,710 2. Capital Credits - Received a. Cash Received Fronv Retirement of Pc;trornige Capital by 1 Suppliers of Electric Power 22,975

). Cash Recdvcd From Retirement of Patronage Capital by Lenders for Credit Exicndcd to the Electric System r. Tola I Cash Received (11 + b) 22,975 PART .J. DlH~ FROi\-l CONSUMERS FOR ELECTRIC SERVICE ,, I .r\1n11un! Due ( )vn (~0 !Xiy~; b, '.i:15 ,f 9.l_-)(; 2 1\111ount Wrillcn Off 11nn?,Ycnr ,, 3~),3~i3 UNITED STATES DEPARTMENT OF AGR!CUL TURE BORROWER DESIGNATION RURAL UTILITIES SERVlCE FINANCIAL AND OPERATING REPORT NM0023 ELECTRIC DISTRIBUTION

INSTRUCTIONS - See help in the online application PERIOD ENDED December, 2013

PART K. kWh PURCHASED AND TOTAL COST No ITEM SUPPLIER RENEWABLE RENEWABLE kWh TOTAL AVERAGE INCLUDED IN INCLUDED IN CODE ENERGY FUEL PURCHASED COST COST TOTAL COST- TOTAL COST- PROGRAM TYPE (Cents/kWh) FUEL COST WHEELING NAME ADJUSTMENT AND OTHER CHARGES (a) (b) (c) id) fel (f) fr,) /h) (il l Southwest Public 800365 997,837,705 48,935,652 4.90 Service Comoanv 2 Western Area Power 27000 13,852,000 311,215 2.25 Admin 3 Southwest Power 800403 240,946,000 14,617,940 6.07 Pool 4 Western Farmers 20'147 I, 150,286 0.00 Elec Coop, lnc (OK0032) Total 1,252,635,705 65015,093 5.19

Rl!S Fi1uwd:1l an,.! Op,".rali11;~ Report Fleetrk His!rilrnl.io11 UNITED STATES DEPART:VlENT OF BORROWER DESIGNA T!ON RURAL UTILITIES NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION

INSTRUCTIONS - See help in the online application PERIOD ENDED December, 2013

PART K. kWh PURCHASED AND TOTAL COST No Comments 1 2 3 4 UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNAT!ON RURAL UTILITIES SERVICE NM0D23 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. PERIOD ENDED December, 2013

PART L. LONG-TERM LEASES No NAME OF LESSOR TYPE OF PROPERTY RENTAL THIS YEAR (al /bl (cl TOTAL UNITED STATES DEPARTMENT Or AGRICULTURE BORROWER DES IGNATlON RURAL UTILITIES SERVICE NM0023

FINANCIAL AND OPERATING REPORT PERIOD ENDED ELECTRIC DISTRIBUTION December, 2013 INSTRUCTIONS - Sec help in the onlinc application. PART c't1. ANNUAL MEETING AND BOARD DATA I. Date of Last Annual Meeting 2. Total Number of Members 3. Number of Members Present at Meeting 4. Was Quorum Present'?

4/26/2013 6,973 424 y

5. Number of Members Voting 6. Total Number of Board Members 7. Total Amount of Fees and Expenses 8. Does Manager Have by Proxy or Mail for Board Members Written Contract?

0 9 $ 204,778 N

RUS Financial and Operating Report Electric Distribution Revision Date 2013 UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESJGNA TION RURAL UTILITIES SERVICE NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. PERIOD ENDED December, 2013

PART N. LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS No ITEM BALANCE END OF INTEREST PRJNCIPAL TOTAL YEAR (Billed This Year) (Billed This Year) (Billed This Year) (a) (b) (c) (d) J Rural Utilities Service (Excludes RUS - 1,896,123 71,372 128,606 199,978 Economic Development Loans) 2 National Rural Utilities Cooperative Finance 2,947,270 136,535 278,370 414,905 Comoration 3 CoBank, ACB 4,340,184 235,257 501,665 736,922 4 Federal Financing Bank 43 ?45 552 1,115,203 l 002 194 2,117.397 5 RUS - Economic Develonrnent Loans 6 Pavments UnaoDlied 8 830,522 7 Principal Payments Received from Ultimate Recioients of !RP Loans 8 Principal Payments Received from Ultimate Recipients ofREDL Loar,s 9 Principal Payments Received from Ultimate Recipients of EE Loans TOTAL 43,598,607 1,558,367 1,910,835 3,469,202 ITI! \TATES DEPARTtvlENT UI· .\UIUCULTUln, BORROW LR Dl'SIGNATION RURAL UTILITIES SEK VICE NM0023 FINANCIAL AND OPERATING REPORT PERIOD ENDED ELECTRIC DISTRIBUTION Dece:nber, 2013 INSTRUCTIONS - Sec hc 1o in the online application. PART 0. POWER ImQt:IREMENTS DATABASI, - A'\NlIAL SlJMi\lARY AVER,\CF NO. TOTAL Crn ✓ SU!FB SALES & ('L\SSIFICo\TION llE(.'LMBlm CONSUMERS s1,:HVlm Yf:AR TO l>ATV lll:VENIJF: DATA {11) (/,) (c) R-.",id,Ti::d :-;:lie; (,:,:duding a ND L\•11::uu1,.,1:; Served ll,411 St:.;d:,..:011:11,1 b 106,4413, ll6 -··--··------1 C. F~evrnue 9,273,435

a. ~Jt..). Con~umcr5 Served b. kWh Sold c Rtvenuc J. [rrigation Sales a. No. Consui,1crs Serve-d 2,595 2,608

1,. k \Nit Suki 218, 6:t'/ 1 H(,;~

16, 8'/ ,

4. Co1rn1. :11:.J !1Jd. I 0:10 KVA or Less Nr,. C'ori:;uriH'rs Served ,J, 653 11'

h. hVh 505, 6•Vi, '/•17

c. ReYcnue 37,891,92S

5. Comm. and Ind Over I 000 K VA a No. Consumc,s Served 20 21 b. kWh Sold 3•18, 0'/4, 511 Rcvcn1:c- ?.O, 466, 80•1

,1 4

1,3

7. Otl1u l'1tl,l1c Authorities 6 '""" 12,7?11371.

C 8. Sales for Re,::lc - RLS Borrowers a. I b. k\Vh SolJ c. Revenue 9. Sak, :'ur Resale - Other a. No. Consumers Served I

IO. T"l:1I 1'./n. of Consumers (fines tr, 1/m1 'Iii) 1s, 689 I 1 1;, 690 11. !,11:d l;\\ll Sold (lines lb t!,m 9b), 1,192, 91·1, 'H;.1 12. 1·,,1:d ll,•v(•1>11r Received From Sak,, of 85,73C,4':,0 Lkctrir hm1-sy (fiues 1c thru 9c) 13. r:·,m:--:nissio:1 Revenue 14, Ut:-1er E!tctri~ Revenue (1,892,695)

838 1 1166 16. Total kWh i'urchasccl 1,252,635,708 17. Told kWh Generated I:-: Cost of Purchase., 111d i';,.-,r,·rlll i(ln 6':;, G92, 118 " I•! Interchange - kWI·, . Nd ..:o Peak - Sum All k\V lnpt1! {l'dc,cr,,,11 199,160 Non-coincidem ..... r.\11111·lll,·1·1. HUS Financial and Or1c·c1lin:; H.q1orl !~lectric Distribution UNlTED STATES DEPARTMENT OF AGRICULTURE BORROWER DESlGNAT!ON RURAL UTJUTIES SERVICE NM0023 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED December, 2013 INSTRUCTIONS - Sec help in the onlinc application. PART I'. ENERGY EFFICIENCY PROGRAMS ADDED THIS YEAR TOTAL TO DATE of CLASSIFICATION No. of Amount Estimated No. Amount Estimated Consumers Invested IVl!VlBTU S~vings Consumers Invested l\lMBTIJ Savings (a) (b) (c) (d) (e) (f) l. Residential Sales (excluding seasonal) 2. Residential Sales - Seasonal 3. Irrigation Sales 4. Comm. and Ind. 1000 KVA or Less 5. Comm. and Ind. Over 1000 KVA 6. Public Street and Highway Lighting 7. Other Sales to Public Authorities 8. Sales for Resale -- RU S Borrowers 9. Sales for Resale - Other IO. Total RlJS Financial and Operating Report Electric Distribution Revision Date 2013 lH

FINA:\'CIAL AND OPERATl:\'G REPORT ELECTRIC DISTRIBUTIO;'I; PERIOD ENDED INVESTi\U::'iTS, LOAN GUARA:-.iTEES A:\D LOANS December, 20!3 INSTRUCTIONS - Reporting of investments ;s required by 7 CFR I 717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an 'X' in column (e). Both 'Included' and 'Excluded' Investments must be reported. Sec help in the online apolic111i,m. PART Q, :-;E( flON I. INVESTMENTS (See 1n,1rndio11s fol' ,k!"initions oflncome or I ,nss1 No DESCRIPTION INCLUDED 10::CUJDED INCOMF OH! .OSS RURAL ($) ($) DEVELOPMENT (11) (b) (() (,I) (e) 1 N1m· l ,iililv l'rnpcrtv (NET) Lam! ~6.482 Totals 46;l82 IO Commi!mcn1s lo Invest Within 12 Months hut not ac!uallv purchased

Tot,ls 2 I,n esl ,nen1,, i11 ;\:s,,ociated Oreanizations l':.1l.11,11:,,,1: (:,p1lal i'IRUCFC 190 283 14,068 l'aliun:1•"·' Capital FRMCO Jb:; Tex:1c; Ht.·c11 ic Coup Membership j(J NRUCFC ''-'lt.'111l1t'.1:·:hio 1,000 Ll-U\lCO ,,k1ubc.1sliio IUO l\RUCFC Capital Tenn Certific.ates 145 383 Patronap-, Capital Federated 319,808 81,301 Other 1\lkmbnshios 280 1,CF.C Cic:nernlion I ,I .C 16.28 I ,773 Patwna",c Capital TX Electric Coop 200,149 :JS,035 l':111·011,11•.i: t\1pi1c1I. Arkansas Electric I ,S 11·0 lbnk lvlc-n:bc1c;hjp I 000 lnv,.";1n•,c.nl i11 ',V.,.·c.t J{,,.'.[jreinenl. 2,267.,000 (;.,__,i1i.::r:.li Flectric. 474.215 ! IVklLife 31(, 'ilO .v,,m:,·,11 52U(il, St~!.te Bc.:1k of India CD 253,807 - Cash V

-- JP ;v1organ Chase 524 693 BP Capital ~. 515,139 Goldman Sachs Ba11k CU !il),000 ...... ·- New Century E11er1.,c1"·: 4 331 - Totals 1,,\(,2 076 /17:'10'/ ·- 5 Special Funds ,_ Proctor & Gamble t'o I .DDl.662 ·- Total Cao 995,930 Fet!eral Natl ~Ilg Assn 500,844 Cnited Parcel Service 500,166 Shell Intl Fin BV 499,980

IUiS Financial and Op('r;ili1H~ Hq.>nrl Fkc!ric Distribution - l!!Vt\lninlh ,,,,,, 11NlTLD STATES DEPARTMFNT()l,' /\(inf( ULTURE llOl

FINANCIAL AND OPERA TI:XG REPORT ELECTRIC DISTRIBUTION PERIOD ENDED December, 2013 liWESTMENTS, LOAN GUARA:-iTEES AND LOANS INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reported on this Part corresrond to Balance Sheet items in Part C, Tde.ntify all investments in Rural Developmer,t with an 'X' in column (e). Both 'Included' and 'Excluded' Investments must be reported. See help in the online applic:11 ion. PART 0. SH.Tl ON I., IN VESTMENTS /See h1:,h·11rforn•, r.,,. ddinitions oflncome or Loss) I_ll. P lllll1lnn Fln USA Ltd I 004/lgJ - '' l lnitcd St:ik.:; T1·e,1::ary Note I 001 830 -· ' - n:_;r::;_t~i.H!: J-lMJ-:1r.1w:1y Inc 1 001,Hl0 Federal Horne Loan tv1tg Corp 1,002 823 X General Electric: Ccp Corn l ,637,001 lnternctin1'al Businass Machines 1,078,757 McDnnalds Corn 499,327 Johnson & John.son 505,714 Wal-Mart Stores In~ 1,033,447 S1:1t1.'1ii ASA 49')514 \·lc!lili 1,097}';1

i ;r:,w:rr,1 l':it-clri,,. ( \1p Corp 98 11,lll 1 Fs:cr:lsior Ciovt fonds 947 048 I lrnlcd Sllir-1 Trcll:'UTY Notes 994,598 Federal Home Ln \Hg Corn 1,000,299 JP Morgan Ch3sc 51.\,282 Pepsico Inc ! ,074,763 BB'--~TCorp 507.746 UnitcJ Staks Trc,1st:ry :'iote 597,657 JP M,!t1:c111 Ch:ss,i 1.000,ri,s

\lv'esln;ic lll,:- 0, Con, 1,041,)lil B,mk Arnnic::i C'rn p 996,'/fl4 Berk:J1irc Lh!l-i:nv;iy Fin Coro 998,tllU I.Jr,iled :;1:.11c,; Treasurv Notes 1 147,856 F,,._h:r,1I Nalion;il IVltg Assn 250,357 l!SBC Holdings Pie 1,161,089 Goldmc:n Sachs 1,122,057 Cisco Sys Inc 501,469 HSBC Holdinf!s Pie I,l !7,899 Chubb Corp 536,798 l11ln 1i::liu11,il llu:c:iness Machines 64})L~O {]uldrn:_ni ->~;1chs 99').'Y! I F-L-11ik oi'Nnv ,r'urk Inc 996,(ill I C:.:.1.,,, 1:ill:11 1:i11:'111cial Services 250, IS.' F::,.k1 :II Hu1111.: I u:111 Mtg Grouo 498,425

AT&Tl:ic - 1,009,163 Un,,ed S'.2tcs Treasury Notes 603,755 Totals 26,812,53,1 8 545 492 6 Cash - General Lea County State Bank 96,865 198,877 , ..... \Vestem Commerce Bar.k Plains State Bank ~u.;,_fj(~()

Wells Fargo 1i99JU)

Totals j -<~ .:·1 9 /}(10 I! Temoorary Inves1".1n1 ts Lea Countv State C.l'cdedly ln.-:111 1.:rlJ\epo) L,U\I ',P Edward Jones (Gov·t \!o:~cv Fur.d,) 542,226 \tferrill Lynch (Gcv't \'loncy Funds) l()J85 !\'!organ Si2nley (Gm,'t Mm~ey h:m!) 34,825

I< I IS Financial and Opcrnlit1r•, Hqwrl Electric Distribution - l11vc·slmrnls Hrvisimi lhk 2013 UNITED ST ATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATION RURAL UTILITIES SERVICE NM0023

FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED December, 2013 INVESTMENTS, LOAN GUARANTEES AND LOANS INSTRUCTIONS - Reporting of investments is required by 7 CFR \ 717, Subpart N. Investment categories reported on this Pait correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an 'X' in column (e). Both 'Included' and 'Excluded' Investments must be reported. See help in the online application. PART Q. SECTION I. INVESTMENTS (See Instructions for definitions of Income or Loss) American Express Centurion CD 247,000 Hewlett Packard 506,368 Independent Bank CD 247,000 SBC Communications 515,557 Wetern Union 504,550 Wells Fargo 510,470 Wal-Mart 500,684 Discover Bank CD 247:000 Bar Harbor CD 247,000 Wells Fargo [nsured Repo 1,915,605 Totals 2,537,629 5,172,373 9 Accounts and Notes Receivable - Nll:"f Accounts Receivable Employees 2,322 Accounts Receivable Aid-to-Construction 494,040 Accounts Receivable Other 2,683,514 Notes Receivable Energy Conservation 44,467 Accm;nts Receivable-LLC 46,753 Notes Receivable Other 67,742 Totals 3,338,838 11 TOTAL INVESTMENTS(] thru JO) 62,649,687 16,363,298 189,509 U:~iTl:.Ll STATES DEPARTMENT OF N,RICULTURE l:lOfH

FINANC:l:\L AND OPERATING REPORT PERIOD ENDED ELECTRIC DISTRIBUTION December, 2013 INVESTl\lENTS, LOAN GUARANTEES AND LOAt",S lNSTR\JCTIONS - Reporting of investments iS required by 7 CFR 1717, Subpart N, Investment categories reported on this Part correspond to Balance Sheet items in Pa11 C, Identify all i11vest111rnls in Rural Dcvelop111ent with an 'X' in column (e), Both 'Included' and 'Excluded' lnvest111enis must be reported. Sec help in the online app]icution. PAHT 0. SECTION II. LOAN GUAH1\NTEES No ORGANIZATION MATURITY DATE OIUGINAl. i\lVIOUNT LOAN Bi\lANCE RURAL {S) DEVELOPMENT (a) (bl (cl );;; (el TOl'AL TOTAL (Included Lo,,n GuJrantees Onlv)

H tis Financial and Opu:,!i11,: Hqiool. U,ctric Distribution - Lo:rn (;11:u:1111,c,, UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATION . RURAL Ul_'ILITiES SERVICE NM0023

FINANCIAL AND OPERATING REPORT PERIOD ENDED ELECTRIC DISTRIBUTION December, 2013 INVESTMENTS, LOAN GUARANTEES AND LOANS INSTRUCTIONS - Reporting of investments is reqpired by 7 CFR 1717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an 'X' in column (e). Both 'Incl:.ided' and 'Excluded' Investments must be reported. Sec help in the onlinc application. SECTION III. RATIO RATIO OF INVESTMENTS AND LOAN GUARANTEES TO UTILITY PLANT I 45.13 % [Total of Included Investments (Section I, 11 b) and Lo2n Guarantees - Loan Balance (Section ll, 5d) to Total Utility Plant (Line 3, Part C) of this teoort l SECTION IV. LOANS No ORGANIZATION MATURITY DATE ORIGINAL AMOlJNT LOAN BALANCE RURAL ($) DEVELOPMENT /al {b) )!{ (dl /el 1 Employees, Officers, Directors 2 Energy Resources Conservation Loans 44,467 X 3 ASTWest 250,000 150,000 X TOTAL 250,000 194,467 POWER REQUIREMENTS STUDY Subject VVFEC Load Forecast

From: Alma Griffin fo: Mike Faris Date: 05/06/201312:07 PM

MINUTES OF A MONTHLY MEETING OF THE . BOARD OF TRUSTEES OF LEA COUNTY ELECTRIC COOPERATIVE, INC. TUESDAY, JANUARY 22, 2013

A meeting of the Board of Trustees of Lea County Electric Cooperative, Inc. was held on Tuesday, January 22, 2013 at 5:Q0 p. m. at the principal office of the Cooperative, in Lovington, New Mexico with the following Trustees and other interested parties present.

,John Ingle, President Will Palmer, Trustee Dean Kinsolving, Vice President Wade Roberts, Trustee Dan Hardin, Secret-ary-Treasurer Ray Hilburn, Trustee Terry Davis, Trustee John Graham, Trustee Robert Caudle, Trustee

Gary Hurse, Executive Vice President and General Manager Michael T. Newell, Attorney

Absent:

Guest: John Tindall- U.S. Trust

At 5:00 p.m., President Ingle called the monthly hoard meeting.to order. Following the iiwocntion, President lugk asked for revicv1 and additions to the agenda.. There being .no additions to lhe agenda., Trustee Caudle moved that fhe agenda be approved .. The lVlol:inn vi1a11 St:co:nded and approved 1.1nan.i1noudy.

A. APPROVAL O.F vVFEC I .()AD Ji'OREC;/\ST S'llHYY 2012:

C,eneral tvl.anager I 11.:irse prcsenled u recent WFEC'. Loacl Forecast perfin11.1.cd by Y\/"o,'l:,'(' . Y" '" , 'P.. ., K r(•t .,.-.. 1'.I.L, •... ).•'··•·b()IHh.c-1 lC,:LCt. ·· I·· t· . ·l .. 1O,.ilLL. .. (·',r··1(····.. , ,,,,,),:, ,., .. CHL '--1·1 \.,_l)!U\IC.Lt.111.U!IUddUH.ll!., ..... ,.: ··j ., ···I ... ·1:· ...... ' • ...... ·11· lL-~ report related to load growth within different rate classes and projected growth for the future. Trustee Palmer moved to approve the report as presented. The Motion was seconded and approved unanimously. USDA ==::ry

United States Department of Agriculture Rural Development

MAR 7 2013

Mr. Gary Roulet Chief Executive Officer Western Farmers Electric Cooperative P.O. Box429 Anadarko, Oklahoma 73005-0429 ·

Dear Mr. Roulet:

We have reviewed the 2012Load Forecast for Western Farmers Electric Cooperative (WFEC) and its members. The studies and board resolutions were submitted to the Rural Development Utilities Programs (the agency) on January 28, 2013, and prepared pursuant to the 2012 work plan approved by the agency on August 13, 2012. A certified resolution, dated December 19, 2012, from WFEC's Board of Directors approvinp the lo.fld forecast and its uses was received by the agency.

The load forecast was effectively coordinated with all of WFEC's members, and the methods and assumptions used are reasonable. This letter documents agency approval of WFEC's 2012 Load Forecast. Member studies developed in coordination with this forecast are also approved. The agency will consider the 2012 studies current, pursuant to 7 CFR 1710 Subpart E, Load Forecasts. WFE C• rs must use these forecasts in all engineering, environmental, financial forecasts, and in C;my studies in support of loan applications.

A copy of this letter is being sent to each of Western Farmer

Sincerely, Lad orecast Stu 2012

Lea County Electric Cooperative

Compiled & Coordinated by

Sharad Rastogi, P.F.. Western farmers Electric Cooperative Anadarko, OK 73005 Dec .. 2012

-••••...... ••••••••••"" ••••••••••••m•••••••••••••••••••""•"""•••""""""'""••• TABLE OF CONTENTS SUMMARY- Medium Forecast

1. SERVICE AREA DESCRIPTION - Background & Development Location Geography Economy Weather Recreation Potential Growth Residential Irrigation Small Commercial Large Commercial General Comments Load Management Load Factor Distribution Losses Di;mibution of consumer by County · 2. CONSUMER SURVEY - Summary of Results Specific 2007 Survey Results ·

3. LOAD FORECAST STUDY - Technical Discussion & Development ·scope of the Project General Description of Tables Compierits General Effect ofDeregulation Sensitivity Analysis Load Management & Efficiency Programs

Various Tables 1-22 and Charts 4. CONCLUSIONS

5. ECONOMETRIC MODELS - Statistical Description & Forecast Suffix · 1:1.conomchfo Variable Acronyms Models & Forecast 6. APPKNDIX RUS Form 7 Possibl.e :new L. CoJ111nercial f ,oads Load. ~danagoment IiJfort

SUMMARY Lea County Electric cooperativ Historical & Projected Energy & Demand ------1990-2041 YEAR Totar Purchased Sales Power Summer Demand NCP MWH MWH Medium High Low ------.., _____ 1990 552,940 600,623 98,300 * * 1991 579,545 631,694 104,930 * * 1992 607,157 663,050 111,220 * * 1993 670,732 723;444 119,9QO * 1994 * 673,209 729,366 119,970 * * 1995 734,374 ,. 797,447 133,470 * 1996 769,039 825,869 131,710 * * 1997 778,325 832,927 137,910 * * 1998 819,668 872,911 139,820 1999 " * 743,732 808,692 138,000 * 2000 842,318 897,207 147,100 * 2Q01 * 830,863 896,232 151,210 * 2002 866,469 937,700 154,600 * * 2003 917,650 990,278 158,390 * * 2004 954,705 1,009,098 164,900 * * 2005 976,535 1,038,445 173,650 * • 2006 1,029;104 1,101,923 177,200 ,.* * 2007 977,279 1,051,807 170,400 • 2008 1,103,765 1,183,649 183,350 " * 2009 1,114,048 1,198;226 189;180 • . 2010 1,128,281, 1,213,926 192,000 , * * 2011 1,202,077 1,276,0-17 198,995 211,107 194,219 2012 1,201,141 1;283,665 203,524. ?12,373 195,383 2013 1,212,204 1,295,489 205,398· 214,329 197,182 2014 1,223,743 1,307,821' 207,354 216,369 199;059 2015 1,234,479 1,319,294 209,173 218,267 200,806 2016 1,244,276 1,329,764 210,833 219,999 202,399 2017 1,253,694 1,339,&29 212,428 221,665 203,931 2018 1,262,348 1,349,078 213,895 223,19? 205,339 2019 1,271,628 1,358,995, 215,467 . 224,835 206,849_ 2020 1,280,632 1,368,618 · 216,993 226,427 208,?13 2021 1,289,350 1,377,935 218,470 227,969 209,731 2022 1,297,840 . 1,387,008 219,909 229A70 211,112 2023 1,306,060 1,395,793 221,302 230,923 212,449 2024 1,31{057 1,404,339 222,657 232,337 213,750 2025 1,321,820 1,412,636 223,972 233,710 215,013 2026 1,329,376 1,420,711 225,252 235,046 216,242 2031 1,366,032 1,449,199 229,769 239,759 220,578 2036 1,379,552 1,472,955 233,535 243,689 224,194 2041 1,401,394 1,496,275 237,233 247,547 227,744 ---...... -...... "'"'"'""''"" ·-·~--- .... l\V,YHLY.ING ;1.oa--21 l.l,727 ·10,·1£12 1,(MH 1,G8G 1,f:i51 :?.011,2041 l.l,(.)4<1 7,34:~ ·1,;27fi 1 ,;?.·I ti 'l,1'17 /\NNIJ/\L COMl-'OIJND CftOWl'H 20'11-21 0.70 0,77 DSM 0.77 0,77 ;m:,i·t ::11:14·1 0.,1? 0.41 0.4'1 0.4'1 0.4! ?O ! ·t-21 0,51 LUi3 o.c;B {U=i3 0.D3 ••••--•-•••••••••m•""""""""••• ...... -...... ""······------··• ..... , ...... No111 · ('!) /\bove Fo1ecast mprnsenl11 normal population urowl:h basnd on Tabki G, ·1 :; 8,. ??. (2) Hinh m1(i low Go--op dernrnid rq:ire1,,ents e::dmrne weal!ier conditions. (3) l\ny new laqJe: cornrrmn::ial road will have direci impacl: on the forec:.'1:,;;i:, (4) For o!I 11:r population i:irowth scr:,nerios n=:l'er Tablo G, ·1 ::i & 22, (llint, & low) (5) h:ir other iniu:.=11.ion ::;ceneri1x: refer Table ·lti & 22 (dry II wet. yea1) Lea County EJ·ectrlc Cooperative . 2012 .· Summer Peak (NCP)

I ! ' I I I I i I I ¢ \ i I I II Im A A,

I 1 i i I ; I i:i ' ----Medium , -¢-High ·, .._+-----+-----I---i----+--1---' ~ IJ 1 •~ ..+-+-+-++-+-++-+--l--+-+-+-+-l----1----'--+-l-+-+----l-+--l-i-+-\---l-+-1--\-..+-!~:.-.l-l 0 150.000 I --&-Low llbl · . ., l!l!li j -£!-Actual ,~: I .-.. ' - ~!'

..., I Cl)

' -~ .. SC,000 I I I

I I : . 1 · . i . . 0 90 0 10 20 30 YEAR Lea County Electric Cooperative 2012 Annual sales/purchases

1 4C<),00J

z 1,000,000 r;') --II- Energy Sales G) (t ~ Energy Purchases C/) 800,JOCJ ~Actual Sales -a-Actual Purchases 6CC,OOO

C ~ 400,000

200,000

0 90 5 20 35 ,YEAR 1. Load Forecast Study 2012 LEA COUNTY ELECTRIC COOPERATIVE

1. SERVICE AREA DESCRIPTION -Background & Development

A. History

Lea County Electric Cooperative, Inc. had its beginning in May of 1946, at ameeting of Lea County Citizens who were interested in creating an electric cooperative as a means of obtaining electric service to areas not receiving central station service. An RUS loan in the amount of $775,000.00 was granted in 1947, but not released for lack of feasib~lity until 1949.. In 1948, the Inland Utilities Company advised they were interested in selling their Lovington property. To shorten· the story, the Cooperative was able to obtain monies from the Rural Electrification Administration to purchase the Inland Utilities Compa:µy, Lovington District, thus becoming an operating entity, having overcome the feasibility problems in March of 1949. The facilities jmrchased served Buckeye, Tatum and Lovington. Th(;) commercial utility had decided to sell its Lovmgton :holding rather than invest additional capital to keep pace with rapidly expanding power needs· rn the booni:ing Lea County area. The purchased facilitie~ consisted of· a small office bJJilding and miscellaneous equipment, a power plant with one 250 horsepower and two 450 horsepower Fairbanks-Morse diesef electric generating units. Thfa plant had a total 600-kilowatt capacity and approximately 136 miles of elec1rical distribution lines serving ·some J,250 consumers. ·Altho\lgh purtjrasing 1,000 ·kilowatts fro~ outside sources to add to the maximum production, Lea County Electric Cooperative was still unable to supply enough power to meet consumer demands. · Faced with the consistent demand for electric service for consumers already on tlie system, and the need for additional power for the building program to serve those without electrical service, Lea County Electric started immediately to expand the facilities for future demands. An electrical generating plant was designed for the purpose of meeting the present and anticipated demands for electric energy. A plant site was selected on State Highway 18, three miles north of Lovington. Contracts were awarded as rapidly as possible for diesel generator sets, power plant building, and an electric control system. . Actual construction of the generating plant began January 1, 1950., A series of new distribution lines extending throughout the areas. not receiving service were also constructed. These included some new lines in the western portions of three cotmtics in Texas. By ! 95 l,, 1.he first e;ngi:nes wt:rc operating befrire construction \Vas co111vleted by n1nning ternporary cables out of the huildi ng 'Windows to tic fnto tlm systern, pending m:rival and. instaHalirn1 or the necessary ::,Wil.chgear, .'~orne relief ~vas had.,, however, by IJw ternporm·y use of new generating cnpacily nrtd the ,r1/aHability of the 11c1vv office focilitfo:, in late 195L 1 rliT1·1··t11·1··. .-'· vv,t, ,~,•;i·1+·111·l1t:·'(·1~,,.'I.,, .t...... '· l·,·i~-·t, .;,..,KX~.~ ...... ,.~.~.,1 , .. ,,,,::1w·~ .. ~)1\,, ...•·11·1 ,··1·11K.. '"1V{,tJj,.,;::~-KKt,.,).P/l()·,••;· ....,,., q:{·''I., .. ,,"'('~('' ••. y ,,",·e"-"' ·wJ-,...t ..·1(,..l·•1 .. nece,',:::it::ikd the: expansio.n of tl1c prnposcd vlanl., rc:sulfing in a contmcl: with fi':::iirhanlG❖-Morsc :fr1r the fourth and fifth d.iesel gcm::rafrng; uni.ts of :J,SOO horsepower each. This resnH:ed "in a Y r • 1• ·i I. O.,Lll\•\.,··lllJLLdJ,dLI-.}I 'I .f:·. ,... ,, · '·1 --· .:·•1 U1 .\ 1.,0 ~) ()f).. 1.. ·1· J.Ul.,t;JJOWLI. ,. ·,· ··, • • ··· ., .. ,... The end of 195.2 needed more generating capacity needed because more power line had been energized and the deniand was growing. Additional units were installed as rapidly as possible. The first 69,000-volt transmission line was built to serve the Tatum area, which had outgrown its available facilities demand-wise. The Cooperative also acquired the old Plains . Power m1d Light Company in order to best serve its patrons on the Texas side an

B. Service Area

The boundaries of the service area have been well established for many years. In New Mexico, the New Mexico Public Service Commission has jurisdiction over all electrical utilities, including this Cooperative. The regulatory agency in Texas is the Public Utility Commission of Texas, and it exerts jurisdiction over the portion of the service area, which lies in Texas. lbese regulatory agencies in New Mexico and Texas enforce the territorial integrity of all utilities mthin their jurisdiction. · Roosevelt Co1ll1ty Electric Cooperative with headquarters at Portales, New Mexico, joins Lea County Electric Cooperative on.the north. On the extreme northeast is located Bailey County Electric Cooperative with headquarters at Muleshoe, Texas. Also on the northeast, Southwestern -Public Service Company serves an area, which Joins this Cooperative. On the east, Lyntegar Electric Cooperative, with headquarters at Tahoka, Texas; serves an area adjacent to Le~ County Electric Cooperative. To ·the southeast, in Texas, Southwestern Public Service Company serves additional area. Southwestern Public Service Company in Hobbs, serves the southern portion of Lea County, and join the Cooperatjve at that point. O.q. the west, Central Valley Cooperative, with headquarters at Artesia, serves the area. Geographically, the area lies within the Brazos and Colorado River Basins. The area is further described as lying in the Great Plains Region of the United States, and in the Southern High Plains area of Eastern New Mexico and West Texa,;_ The Caprock and breaks of the-Pecos River Basin bmnid the service area on the west. To the north,· east and south lays the Plains area, which is also called the "Staked Plains" of Eastern New Mexico and West Texas; ·

C. Climate

The climate in this section of Southern High Plains is semi-arid and continental with warm summers, cool dry winters, abundant slID.Shine and a large range of daily and annual temperatures. Elevations of the land surface increase from about 3,000 feet in the Southeast section to about 4,300 feet in the Northwest section of the service area. Average annual precipitation ranges from about 12 inches along the southern boundary of the service ar~a to 11early 16 inches .in the northern section. Over 80%, of 1:hc annual rainfaU occur,': during the Pl\>Wing season, i.. e .. ApriI through October. The average annual n.1.infolt nmgcs from ahm:it 10 inches lo .l 6 inches throughout the region; !101;,vcver, there is wide varintion in precipitation :i-nHnr· year to year. ··1···1. . 1e average :::nuw:m'° ll tot.a::;1· range f'Torn .twout1 4 1nc1.1es·· 1 to a ·1)out l {). "mct1cs 1 .. 1 BfrnrmJ,.,J,J., . .,,. .. ~-~( 'HT•. ,,~.ii f"'Uf'... _.,,~(.,,., 'HHl HlO''i".. ,.~,, ~'now.. I..... rn,,t,,,, ·,f-1<:•.. ~1.>'I\.. ''')Ot' ,•11,tJ.,,,' ··1· ·'t(T ,.tF-1/linP ",i:•:i" lCf'.,,,,,,,,,) ,·form<: .•..,l.~t JCCll'" ...... t infn~<1rwnny,, ,.. .,.,r •. ., ..In this section of the Southern High Plains,, the sumnwrs are wann with tcrnpcrnl:ures frorn 90 degrees or higher ocnirring two-1:hirds of the days. lJnring wiutcr 1nonths., freezing

tcrn1·-i(:n11:nrc:·•'• :· •...... ,.. ,.'\!. oc1·1ir ,.,,.. __ on,..• ,,.°i"hnnt ...... i·,·o···lhird'' vv .... jJ} cflh, , J... , chy,.,,.... ", ~--,'HI t I -.,t:'-'··ldorn ...... do"~'-' t,.~. Ow "' trrn1i•~r1t11r(''... , ... , .. y.~ (, ...., t:~·on l-,elcw( ,,. J1 zero or fail to rise above freezing during the day. Extreme temperatures in Lea County, New Mexico, have been 113 degrees at Maljamar on Jillle 12, 1947 and -32 degrees at Tatum on February 8, 1933. The growing season averages nearly seven months, e.arly April through October, or ab_out 190 days to 210 days throughout the region.

D. Commerce

About 90% of the land in Lea Cotmty is devoted to the raising of cattle, sheep, horses, swine and poultry. In the High Plains area, two types of fanning are practiced - a small amount of dry-land.farming and a considerable amount of irrig-dtion ·farming. The irrigated land, which are permitted by the State Engineer, amount to about 119,240 acres. For the most part soils, which are now under irrigation, are productive under sound ·irrigation farm management. It appears ·that the potential for expanding irrigation is limited by the State Engineer. This is to prevent over-development, and to insure that the ground water supply will last for approximately an additional forty years. Within Gaines and Yoakum Counties soils, which are now under irrigation, are productive lillder ·sound irrigation farm management. There are over 248,800 acres of irrigated land in Gaines county, 89,700 acres of irrigaied land in Yoakum county and 79,600 acres of irriga,ted land in Cochran county. Practically all lands are irrigated using the sprinkler type of water application. There is a fairly high percentage of rangeland remaining within these counties. lt is possible that in the future some of these lands vvill be subdivided and cultivated, and may well be irrigated within the next :fifteen years. Ranch]ands occupy much of th~ service area :in Cochran County. The ground water supply is somewhat limited and irrigated lands are also limited a:t the time. - The Ogallala Formation, or ground water reservoir, is continuous throughout much of · the Southern High Plains, and this is true within the service area. According to the Johnson study, the thickness oftb.e zone saturation of the Ogallala varies anywhere from 43 feet to over 67 feet within the .service area Notwith~tanding the fact that water tables are declining ~d that withdrawal of the water supply· from this formation exceeds the rate of recharge, ·considerable water remains in storage for all 1:1ses; including irrigation, public supply, industrial, rural-domestic, and stock watering purposes.

E. Load Description

The requirements for irrigation service are increasing rapidly. 1be growth has been from 7,000 connected horsepower in 1973 to over 157,967 in 2007. Because of this increased activity, an Engineering Technician has been assigned to work with these customers on a fu11 time basis. Lea County Electric currently serves over 14,624 customers in three counties in

,::onthc·rntcrn'"'' '' ' •...... ·\\kw, ,.M("Xiro ....,., '.,,' ~-'UHi·•· three.. .,, .,.. cmmtit>'"•. . ,, .•. , in,,, T("X'I''.,... (.~J. The. --~ Coo1)1'rnfrve-· '• ·.t. ..-.. i ' ... ,,)<'etve•' "· ~-') oil-1">nrn1'lino--- '.,.' ""'···: .. r.::, opcn1tions and related su:pport servfr:c cornpa11ies ·which account .frir over 74 percent of the Coopernlivc's total KW.H purchases and revenue. 'The oil comes frorn the rich Pcrnrian Bwfrn. 'The gas related portion of the basin has a negligible effect on tlw overall system. requirmncnL',: .. In ::'.OW .LCEC c:Kpccl.s to see an increase in K.WU sales due to the addition of two rrwjor .loads. First,, an im::rense in oilfield pumping kmd is e~J)tclcll by Sandridge Midi~tremn,, k1catcd in the Cbincs County, '.l'cxas area. Sa:ndridgc p(:rsonnel have indicated oil production in this area has increased due to recent market increases. Secondly, additions to the ConocoPhillips' CO2 compressor station will greatly increase load in the> 1000 KVA class. Additional developments in the gas fields in the Cooperative's service area have also started to affect load growth. The growth rate started to increase due a a perceived price stabilization in the $65 ~ $75/BBL range. The Glorieta and Lea-Mex Fields are being evaluated for water-flood projects at the pre:'ient time. As an ever increasing amount of water is pumped to the surface along with the oil, submersible pumps (100 to 300 horsepower each) have replaced the surface pumpjac.ks. Along with water flooding, the Vacuum and Maljamar Grayburg/San Andres fields have been subjected to carbon dioxide flooding. The requirements for CO2 flooding .have remained steady over the last 10 years, however, should petroleum prices hold steady at current rates, the possibility of additional compression HP is high. ConocoPhillips has announced a plan to add approximately 200 new wells in this area. 111is would have a significant effect on future load requirements. · Over the last 11 years the petroleum industry has experienced both high and low economic extremes. In 1998 when oil prices dipped to an all tjme record.low (accounting for inflation}, exploration for new oil all but ceased and overaU energy usage decreased by approximately IO percent. During that period, small producing wells were being plugged (and sometimes abandoned) due to their low production rates and high water content. In late 1999, petroleum prices rebounded to the $3 0/barrel level and by the first quarter of 2000 had stabilized at the mid twenties level. In 2003 the petroleum industry encountered boom unlike any seen in recent history with petroleupi prices starting at the $30/barrel level and climbing steadily for the last 5 years, peaking in J11.ly 2008 at $145/barrel. Following the boom, prices dropped to the $ 30 range then climbed back and appear to have · stabiUzed in the $65 - $7 5 range. A sense ofstabilization has resulted in a substantial escalation of exploration and a significant reinstatement of abandoned assets. ·

There have been signs of a leveling off point, due to the :increase in operating costs such as labor and equipment. LCEC forecasts a steady load :increase should the prices level at the seventy to eighty range.

ll. Energy Conservation and Community Action

Lea County Electric is actively pursuing energy conservation plans. These plans include the Home Energy Audit, and Energy. Conservation Library, and selling energy efficient water heaters. In addition LCEC offers assistance in obtaining grants through the Farmers Home Administration. Conservation and weatherization ideas are stressed through local radi_o and newspaper, regional television, and the back page of "Enchantment", the statewide· cooperative publication. Considerable time and effort are expended to provide the best · possible energy conservation services to our members. It is anticipated ·that the mnnber of members taking advantage of these services will continue to increase. There is no charge for the audit or the library service. The Cooperative has taken an active role in the commmrities of Lovington, Tatum, Plains, and the snrronnding rural area. These activitie:s inclurk: ·v ;I 'I'' l('' i ·t{) J')' \ 1 • • 1·1 1 1 ·1 ~- oui 1 , our \ .rnK c:s ·· .~) - /. n essay contest tlJHi .1..ntcrv1cw on na .i.orn.t a.no. wor1t. energy 1 .j,,,,;-uc:•· ,.,, .. , . ,) ',.>j,• U'-'(':d. " .. ' In... t·1ick ,. ''I, ... J'l'trlicirnnl' '" . .I' ...... in. tlw. .,, C<1v··mmen1.l ., ;;;; ..,...... fn .. ,/\e!i1>n' . ' . Yonih...... ' ' Tour.. in.. W·i,··hini:ihin,.. ,, .. '" ' ... , f).C. in June of each year. ( ' I. ,• (0 ( ... , t ., .. ,.• (i"' ,, .. ·1 .. ,,, ,"'I /f') U, •1 • ,,'. ,.... ,,., " .. , ,'. '· iJ:'J (.)() \!'"/' ,... '

A number of community support programs are aided by Lea County Electric. These include 4- H, civic groups, county fair, etc.

G. Alternative Energy Services

Lea County Electric submitted a contract-winning proposal to the Department of Energy in May 1978, for the design of a photovoltaic solar generating facility. The Cooperative was teamed with New Mexico Solar Energy Institute in Las Cruces, Solar Power Corporation in Wobmn, Massachtrsetts, and Stone and Webster Engineering Corporation in Boston, Massachusetts. The design started September 30, 1978, and was completed March 1, 1979. The design was approved and construction of the $2.5 million facility began in June; 1980. All but approximately $50,000 of the amount was funded by the Department of Energy. The Lea CoUhty Electric 100 Kilowatt Photovoltaic Generating Facility was completed and began producing electricity on March 17, 1981. This photovoltaic power project demonstrated the practicality of solar electric technology today. LCEC is continuing to- study renewable energy projects such as solar and wind. In addition to the gas-fired plant, plans are being developed to contract with a wind power entity as part of the generation portfolio.

H. Computer Development

Twenty six years ago, the Cooperative began developme~ of a comprehensive computer based management information system. A strategic plan was prepared and approved by the Board of Trustees detaining the phases of development and the incorporation of the distributed, systems into the information network over the next few years. Increased - produc~ivity, reliability and response times have already been achieved in the system. In 198l a third mainframe computer was added to handle the entire relational database while the existing computer provide backup. The capacity of the technical computer was increased to enable the Cooperative to perform more co:i;nplex-statistical and engineering analysis with the present system. · The development of a data information network complete with documentation, embedded audit routines and flexibility has been a challenge. Over the past twenty five years LCEC's computer needs have grown to include several new systems such as Automated Meter Reading (AMR), Geographical Information System (GIS), web hosting and others. LCEC's computer infrastructure has expanded from three to twelve servers. In addition, LCEC employs over ninety personal computers on its system. Almost all computers are tied together via a local area network to enhance business interactions and to provide access to the mainframe computer system. 2. '-

General - about home

1993 I '001 2007 ·- ¾Ov.ln 953 95.9 95,5 Residentiaj. Consumer Sun"ey •--- I ¾Rent 4.7 4.1 '------I 3.5 · 2007 ¾Mobile&aie 14.7 I0.1 143 Average l"a:yrn.enr,, $ 417.4 402,6 470-2-- Western Farmers Electric --- Av.Age-.,yra. ~-- Cooperntive 30~6 33.3 35.2 ~-~E:ome Sq_ ft. 17l5 1755 1808 Household Size 2.41 2.16 1.88 I 5y.r old % I. l.ess than home... 7.7 8.5 7.8

Ownership

... - 1998 2001 2007 ¾Computer ---- 38.4 54.4 64,0 A veraP-e Mont hlIv B"llI ¾Internet ---- - 39,3 54.,; 1998 ·---,______2001 2007 %H-s""\'UY 102 12.1 145 $Electric 111.3 124.l' 155.1 %Wntcrl¼nifia- 17.4 19.0 19.9 S Gas/ Propane 522 51.5 79.3 %GasLloe 155 15.2 ., $Water 28.7 24.l 34.5 ¼S.w•geSys>= to.G . 10,6 1- $Telephone 65.3' 60.7 55.4 % Portable Generator - - JU 70.2(ccll) !~o_nc:Lmes l.Z L3 U(rell) $Internet -- 14.7 28,7 Television sets 20 - - $ Satellite/ Cable • 37.3 35,1 57-9 Antoi:nob!le.s 2.3 - - $ Scwa,,oe/Garbage IG.2 ll-3 22.9

W'..... fiwa-.~'g ec...,.,•h:xlCl7

American Customer Satisfaction Given an opportunity in the :future, would you Index( ACSI) change yOID:' prescat electiic supplier'! Nolo: Qu,...., ~td-•loACSI(l-l Ye,,"4-6 Ml)'Bo,. 7-IO!lo)

90 aol.l------, ·rn-. ti,i}. f Sl"i~·,..,-1,,fied ..,,.·,iJ1 C'o--~;·, 1 ~~H '• Sl:int +,f~:.a.Jw•,1:1tfo• ~ij ,. !r:1 (:\::?t>•.•r~:~--~-~.t.(~)d<•~i~- -•-•- ::;~;;d'"t::::;.;; ,~,. :;~ f ~,,, G1md(7:1 :~) F,,.,.fo"{•i• 6) fli;i:10--3} "!,,.,,.______H~

7,•,:.~l<,1>1 Lm>li,n, 1:'.]c-~·tL"/t, 1•,,,_,gv:1~t!'1< Wiil V',\.~Y.1rr,.•-',,r1·11~~ ,--.-f,•rtrk c.-...-.-;,.·.:,,!!1'1,:2001 Percent Electric Heat Saturation Percent Water Heater Saturation

1919 1985 199? 1995 2001 2007 1979 1985 1992 19.95 2001 ~007 w--.,.,-...r:~. C.QOpud1'tlCJ'J1

Age of the head of the household Education level of the head of the household 40~------, JS+----- 30 25 20 15 10 .s 0 les.1tltan Bi1ll!choel Sol'.llie: high s:cbonl Diplcim-. College v;r.._i..~u,m.. C«.,011:r:i1•1JOOl lO

Estimated Family Income Percent Household Employment

Husband Wife 1998 21JD! 20D7 1993 2001 F..,.i,,g 2007 24.0 23.8 21.9 9.B 9.I Stll:,nl ~ystem 8.7 2..4 '..1:.6 2.2 ').J u fhw~:rn.1t1:H:·ot 7.1 8.1 6,;f 6.4 5.. 9 ti.',t )'Ji Dnki: Worker 2 ~I 'Z..4 1.9 .IL I JO.'l ''!.il fodu1,t..:y \-,,'m~:1.:r 9J' ~~ 9.:.1 RS 2.'7 '.1'.3 ?,O 1 .~1:.tft;mpfo:1•'1!1.1 rn.~! "16.4 15.2 ~24 "HlA W.:~ So,~'.ltl w(xt.e.-/Vc-!nnteer r.u ()A 0.4 1.il 2.2 1,7 lhitir,d ::ui ..'JI 31:~ 35,S 2~.'.-i J.,J,C+ N.n OU11:r:~ Rl b,s, tfom 2.U,OO~l - ;~S,,04:-0- .~tn,nirx; .. "l.!1,,UrnH 6.0 7A n_:;i rn.'l Hl.4 211',fflXi :~~Vil'.!' ,~9_:,1_951 f ,~s,~;~~

'A't,>1e:ui",.t,11n1:11-.,.h~1. Jl i"'1tiiwr·~1·~. ~'l'..~1·,, •11,,,~·1M,,,, f",wrm.:•, f.b.ii ,,:, •------"""""'•••-...... """"-a.... 1(';1:,1.<)l

3. LOAD FORECAST STUDY -Technical Discussion & Development

Scop of the Project: The purpose of the study is to provide realistic load forecast · necessary for electric system planning and operation of Lea County Electric Cooperative (LCEC) for the period the period 2012 through 2041. This study will be used in long range construction and financial planning, filing loan requests, and other planning functions. In· addition, the study will be used to inform neighboring utilities about our facility expansion or modification plans so that future changes could be well integrated into the interconnected power system to provide services in the most reliable and economical manner possible. The Load Forecast Study will also be 1,1sed for ·rate design, marketing, load management, consumer service planning and budgetary process.

General: This electric cooperative has long tepn all power requiremenJ:s contract with Western Farmers Electric Cooperative (WFEC) - a generation and transmission cooperative. The cooperative service area and WFEC transmission network: and delivery points are shown in the Figure 1 and 2.

This study is part of the 2012 Load. Forecast Study ofWFEC.. The methodology employed in the development of the 2012 load forecast is described :iJi 2012 Load Forecast Study Work Plan for the WFEC. The Work Plan was developed jointly among WFEC, its members and RUS's Energy Forecasting Branch. The Worlc Plan was approved by WFEC board on November 8, 2011 and Rural Ptilities Services (RUS) on Aug. 13, 2012. Econometrics has been used_ to determine the expected annual usage of kWh for the different class of consumers. Trending, averages, and judgment. have also been used for mark-ups, losses, miles of Hnes, load factor, and diversity ifreq~d.

The following economic, demographic, and weather factors affecting the load requirements are considered in economic model development:

1111 County Population 111 County Per-capita Income • County Farm Employment • County Total E~ployment • County Total Mining Empfoyment 1111 .Arca Heating l.kgrce f)ays • Area Cooling Degree :Days· o Area IIvapon1fo.JJ1 • Area Pn;:eipi!ation "' Price of I•:lectrieity 0 Price ofL.P gas ,i, !)rice uf Oi I • Electric Heat Saturation • Air-conditioning Saturation • Household Size

County level data were converted to service area data using appropriate weights to representing county participation. The historical and projected data were obtained from Woods & Poole. Weather data were obtained from the weather station representing the co-op from the National Climatological Survey monthly publications. Historical Oil and LP gas prices were obtained from Petroleum Marketing Mon1bly and Natural Gas Monthly published by-DOE/ EIA. Saturation and household size data were obtained from co-op consumer surveys conducted from time to tiine. Price of electricity and various markups and other infurmation were obtained from RUS Form 7. The determination of various projected data is explained explicitly in the Tables.

According to the residential consumer survey results, household size has decreased by from 2.41 in 1998 to 1.88 in 2007 within Westem's area. Tiris trend is in accordance to United States and Southwest. It is expected ihat this trend will continue in the future. Since this decline is inherent in the data~ therefore, projected data were not modifi.cd to reflect this. ·

Over the time efficiency of electric appliances have improved and is included in historical energy use therefore future efficiency improvements are not explicitly modeled.

The geographieal location of the co-op service area is shown in Figure 1 and various substations and transmission network: (power delivery points- and network) through which distribution cooperative is served by Western Farmers - its power supplier, is described in Figure 2. The complete methodology for the development of power requirements is described in Figure 3.

Description of Tables: Table 1 determines the county weights which were used to estimate the service area population in Table 2, per capita income in Table 3 and farm, total and employment in Tables 4, 5 and 6.

Table 7 describes the historical and projected number of consmners served in a different class of consumers. In order to determine the projected number of residential c.onsumers, a regression analysis was done between the historical number of residential consumers and the service area population. High and low consu:nier count was also c.levcloped based

0;1. .• ..hi1··.-h,,fo1,•••. ·,':_:) , . 1I1 .,re

Table 8.a determines the average mark-up to its member in different class of consumers. In.Table 8.b the average difference in WFEC's expected cost and the co-op is detennined and, finally, the ultimate retail consumer price in Table 9.

Tables 10, 11 and 12 show historical average annual heating, cool degree-days in the co op's service area and precipjtation and evaporation for the southwest area.

Tables 13 and 14 show historical and projected cost ofrefiner's acquisition of oil and the price of LP gas.

Table 15 is the consolidation of the final sales by the co-op. Based on these sales, projected distribution losses are calculated in Table 17 using kWh sales/mile, REA standard losses from Table 18 and actual losses. These losses also include energy used for the co-op's own use, ifthere is any. Table 16 describes the percentage distribution of annual sales and number of consumers of the total. -

Tables 19, 20 and 21 show the average annual smnmer and winter lqad factors, and the diversities for summer and winter coincidence at WFEC's peak.

Finally, Table 22 describes the annual co-op sales, purchases, and non-coincidence arid coincidence demands. High and low scenarios have also been detennined to take care of the weather related variance. ·

At the end, various econometric· models developed are · described along with the projections of the dependent variables: In some situations, these might have been modified to reflect more realistic projections.

New Mexico co-ops have certified service territories with no competition for loads above lOO0KVA.

Effect of deregulation: Currently there are no deregulation activities in the State of Oklahoma and New Mexico and there are no pending regulations or rules in the legislation.

C:o.mn:1.cnl.s:

Residential: Co-op area popuJation estirnates are pretty stable at. 17,000 and dues not suggests any growth in nm11ber of rc.:/i.dcntial ;:1ccom:rls. But n1nnbcrs of consun:iers in this class have increased historica.lly. ·ro caplure '!his, rcgress:ion analysis with population ,vus conducted and the resulted oLttcorn,:: of res.idential consurncr was used fi.n· rnedium forecast. High and low increases were estimated by realistic maximum and minimum of historical gains during high and low economic periods.

For residential usage several econometric models were developed suggesting exponential increase, and increase in usage but decreasing after 2024. First one was discarded while second one was kept until 2024 and then adjusted by increase obtained from linear regression.

Irrigation: Farm employment in LCEC area is actually decreasing - a national trend but historically mnnber of irrigation consumers have been increasing so is annual energy usage. Increase in numbers irrigation consumer is partially due to irrigation conversion from gas and more irrigation sites on an existing fann. Studies have shown that water table in the area is decreasing which means more energy is needed to pump water for irrigation.

Historically ~ual irrigation energy usage is increasing, but econometric model did not support. Therefore, combinations of econometric and trending were used- to estimate realistic usage.

Small commercial: According to previous studies conducted by Dr. Scott Fraley indicated a steady decline in petroleum reserve for the LCEC area. Birt technological advance for the petroleum industry and economics will support for more exploration and extraction for the next 10-20 years and therefore usage is kept at the cun:ent level. It is also the feeling that mnnber of small a,ccounts will tend to increase if not at least compensate for the increased use of energy for this class.

Large commercial: Number of large commercial is hard to predict, current number is considered to stay at current level for the fu,ture. Any addition of large commercial wiII · impact the study. 1here· is a possibility of some load growth in the area due to expansion of Sandridge and Conoco co2 compressor station.

Others: This class is also unpredictable and assumed at the current level.

Sensitivity Analysis: Various scen?,rios have been produced to account for consumer growth and weather externalities. However, extreme summer / winter season may impact additional 10% energy requirement for residential class individually.

An irnpact of dry and wet yem.- on irrigaliou energy requfrcnlcnt was conducted, H resuHcd .in +7.,000KWl.1 !'or dry year aml -- 12,00OK\Vli l1r wet year at. the crmenl. average usage of 90,000KWh. Tltis esl.imnte should. stay at !his lcvcJ. · fi .. 1r next fi.:w yearn and then be revisited fi::ir H(tjustrnents.

Load Mimagement & hjjh:iem:y Progrums: At present, Western Fanners Electric Cooperative, the power supplier, has no strict load management program is in existence. However, cmrently a rebate program for heat pumps and education kits for energy saving tools are offered by WFEC.

1. Curtailable load tbro rate desi : Through this rate design, 0.0 MW of coincidence load can be controlled at the suppliers' peak. ·

This program is designed· to improve the appliance efficiency of the existing customer by offering cash incentives fo replace the old, less efficient appliances with new, high efficiency appliance~. Currently, this program is available to water heater and heat pumps for replacement, conversion or new for more efficient units.

J_._ Efficiency· p ovement through ene gy audit and low interest·prog Through energy audits, consumers are advised on how to conserve energy through various. options, and sometimes, financial· assistance is available through a low interest program called Energy Resource Conservation (}}RC).

· 4. Load man gement: Curtailable Load: none, except through rate incentive. CFL: about 2500 CFL distributed since 2007. h-rigation: not applicable. Over 2:500 accounts in the q>-op. Ground Source Heat Pump: current market penetration is not available. Loss Reduction: Loss reduction since 1990 is 1% which corresponds to 2.0 MW of peak reduction. FIGURE 1 West1;;rn Farmers Electric Cooperative Service Territory

,·,[. ,., ( =~~-- .. :_i·-.:·.·.... _:-'· r - . 1· i' ! ' ·! •\ I ~~------, \ CIMARRON \ \

WFEC System Service Area 1·--·····---·· Okf ahoma & New Mexico i Figure ·· 2

STHWY214

91lZAMH FIGURE - 3 LOAD FORECAST

STUDY LOADFACTOR

. .'LOAD METHODOLOGY FOR ... FACTOR MEMBER SYSTEMS

,: TRENL> ,,, ANALYSIS,

. #OF SMALL COMMERCIAL CONSUMERS

smu. COMMER(:LU.

SMALL ~ AVG.ELEC. COMMERCIAL ~----+ USAGEPER CONSUMER ENERGY SALES LARGE COMMERGAL AVG. ELECTRICITY USEAGEPER ENERGY SALES. CONSUMER #CHARGE COMMEROAL

lioF IRRIGATION ·coNSUMERS

r.mm:i.11:1·10N

( , ' .. ' ...... l .. 1:11::(,i~;:,:i:i~,.. t l:.M:,.(cof .. ,/,U:,:, ij · ~ '.'"" .. ,... -.·--·,··::·:::~.-.-.-.--.~·.:·.-, ,; •" .... ,,f',

, ( ...... /:ARM ...... , .... \ EMf'I.UYMENT )J '\•• ' '. ··:" :'.'."••;,· ,'."~•·i".';.':'.. :-·.•-•.1: r:".:::' ' TABLE-1

SUMMARY OF Lea County ELECTRIC COOP. AREA CONSUMERS, POPULATION AND THEIR PERCENT SHARE DATA OBTAINED FROM RUS, WFE;C, AND CONSUMER SURVEY ·rota! 2009 NO. STATE NO. COUNTY NO. COOP. Consumers % tot Res. Con (1) (2) (3) NEW MEXICO CHAVES Lea County 148 0.98% 79 TEXAS COCHRAN Lea County 40 0.26% 21 NEW MEXICO EDDY Lea County 31 0.21% 16 TEXAS GAINES Lea County 2238 14.83% 1189 1! NEW MEXICO LEA Lea County 10615 70.32% 5639 TEXAS YOAKUM Lea County 2024 13.41% 1075

TOTAL------> 15096 100.00% 8020

NO, STATE NO, COUNTY NO. COOP. County ----Coop. Area---- Population % pop .. hh size (4) '(5) (6) NEW MEXICO CHAVES Lea County 63.937 0.25% 2 TEXAS COC0HRAN Lea County 51.77 0.08%: 2 NEW MEXICO EDDY Lea County 59.623 0.06% 2 TEXAS GAINES Lea County 2,954 80.50% 2 NEW MEXICO LEA Lea County 16.128 74.66% 2 TEXAS YOAKUM Lea County 7.575 28.39% 2

TOTAL------..;;, 200.987 7.98% 2 ('I) DAU1 OBTAINED FHOM HUS/ 'NFIE:ClGOOP, (:2:) COUNTY CONSUME:Fr PE1:1c1::NT OF THE TOTAL , (::1} E:STIMA'rl::D HESIDENTIA,L CONSl.lMif:RS S[:HVEID !:IY THE COOP. DATA OBTAINl::D FROM m.is FOHM 7. (4'1 HISTOlfl:IC:AL COUNTY POPI.Jt.ll!TIION IIN 'IOGOS OltlTAIIIJEFflOM VVOODS ll, POOLE

1~1,J,,,.:, PFPCFIIJT~.1, ..1H 01':..,r ('l'"ll...... "INTY POPI...... JI ,1 /ITll'"II .... ,,! ,:•i::p,.. > .. ~,~-·~·· IFD "F'F'';~1 ..,·1.:::i ....r-ni,.,,.1,., i<:•,•l•') .. j,,.1, ,. HH.1.~~,,ii ('•J'''IE'..... !\l,'f'I1r·our ..., .. \, ITY .· f''OP... •\l4)• (fl) HOt31E:HOLD SilZE as:;1.1m1"'d as 2.0 11\61.E•l 11:0TORICAL & PRoJEClED l'OPULATION Of Lu c,..., ELECTRIC COOP, SEHVICEMEA iOOi-2040 ~-----· ------·------·-----·------TOTAL --- CHAV-C;Z.,._NM ECDY_,NM LE.\NM COCIIIWLTX .007 O.OC21 63.5i7 o,ooeo 61,923 o,ooao 61,059 C,6050 3,184 0.749 1S.1B7 U,2B19 7,568 18.841 0,21)0 7,765 Zil7,lf!7 1a~oai5 .006 IJ.002[i 64.378 o,•oao 52.Sua 0.0000 82.73'/ o:mo 3.1 0.1456 211,m 18,504 11,1e• ~.2138 7.900 200::i O.CO;!!i 65,11 o.oaeo (iJ,57• 0,ClafiQ 54AS3 D.l.\O.® 3.0Sll C.7•S 312, ... 111,8110 C,OCGO o.aosr> 3.i37 0.7 1.itl 17,5ij4 0.24-38 7.866 201~ O,QOZ:io a,.ns 0,UOI.IO 53.8~ 04,69• • 214.e!lll 11,aoo · 0,00IJQ C5,2Sa 0.101, 3,113 0.7~58 17.&Ei 0.lfll9 7,872 201\ 0,002~ oG,627 o,ouno 54.35 2,881 0.7456 18,113 • 7.1145 21;1r, 0,0025 71.819 0,0000 57,350 o.ooao 8B.923 0.BC!.0 ...... 228,46& 11,270 0,0050 2.08 0.74SB 18,194 ll.21139 7,958 :ZOHl 0.0025 72,018 o,4Joe0 0·1.a74 0.DOUO 68.S5 2:11,SSS ,..... Q,7 56 18.276 C.2039 7.874. ~,, 0,002!.i 73:64 (),VC!lO 56,381 O.D080 ?0,18 0,S!JSO 2.9:39 • 213,7511 1813118 16.3fi0 0.21U 7.939 2021.l O.OQ2:i 74.763 o.caao 56,911 o.:::iaso 70.814 0,-'0.SO 2.816 0.7•56 235,812 181447 2,!ro7 0.74.SG 18.44 8.004 202< O,OD ✓-5 75.696 a,coao oe.43 0,0DC-0 71-445 0.8050 ...... 2$1,0113 1....., 18,524 D,28U 8.0.2 2022 C,00::?S 76,620 O,OOllQ 5s.952 (),COBO 72,081 Q.13050 2,877 0.1 .. ais 2411,264 10,atil 2.B5a a.74GS 1s.eo1 0,2838 8.031! :1a2~ 0.00.::i.!i 77.564 o.oceo 60,474 o.ocoo 72,717 o.aoao 242A21 19,&20 2,818 0.7ffl 18.691 Q,.2,!139 8,051 20.14 o.oc;:o 70,501 O,OC•aG ijJ,887 o,o::rn.o 73-353 o.aoso 244,111 10~9(1 tl.2e39 8.057 0,0025 76.441 O.OCIU 61.521 c.o::Bo 73.992 CUl050 2.815 0.7•58 18,775 1•,740 ::ow !8,1158 c..i.eu 8.003 2'110.762 20::!6 0,0025 80,37!:! 0.00$0 02.042 o.coe.c 14,S2U 0.e0110 2,795 0,741$8 248,948 19,&10 2,7'/J. 0.1~,, 18.&41 (.2030 8,0SQ ,027 0,002S U1.~15 o.ooeo 62,561 o.ooco 75.259 o.o~o 21;1,102 1i,a!8 0.UObO D,7-4!i0 19,023 a.11a 202!.I O.OC:r!J. CZ.248 !J.OUBO 03.077 0.0080 75.887 2.754 c.2e:• 2-53,267 11:,w..a O,flOOO 18.106 D.21!:!~ 6.128 • ;;:-J:;:1:1 a-.J[l25 B3.1LI2 Q,0-0{ID 83.593 :.0000 76.516 2.733

TA8LE•4 rllSTORIOAL & PROJECTED FARM EMPOLYMENT OF I.Ila C.unly !cl.iCTRIC COOP, SERVICE AREA tS~ll-2040 ·----·--- ~------••.-.---·· -----·------·-______..__ ---.., ____ ------· ,.,. ____ ------•------TOTAL---- Yl;AR CNAVeZ_NM ECDYJ~M LEA~M COCHIW<_TX GAlNS_'lX YOAKUM_,TX FEMP COUNTY LCE ARicA WEIGriT FEMr WEIGll"r F!O.MP WEIGHT F5MP 1,Y!;IGHT Fl!MP welGHT FEMP WUIGIHT , ., ...... __ ------...... ------·- _____ .... ----~- ______------· ------_...,_ -----_ _------· ------(3) -----(4) (j) (2) (l) (2) ('1) (:!) (1) (2) (1) (2) (1) (2) 1,047 2,518 1.201 0,1456,. 1.737 0,2839 0.1178 -1909 U.0025 1,672 ,0,0000 1.21. 0.0006 1,144 o.eosa 7,720 2,524 1.715 0.21139 M113 1970 a.002; 1,745 0.000~ 1,092 O,OOC6 1.066 0.6050 1.1a2 0.1,oe 7,540 2,447 1.124 0,7450 1,753 0.2839 C.eoll 11i"f1 0.002.1 1,714 o.ocos 1.044 O,OOCB 1.oeo o.e,.so 7,e18 2.539 0.7458 1.812 0.2a'.18 a.an 1072 0.002~ 1,767 o.ocoa 0.999 a.coo~ 1,044 o.a::mo 1.14S 7,477 2,,re 19'/3 0.002~ 1,703 o.oooa 0,954 o.coo, 1.035 o.aoso 1,089 0,7456 1.~• 0.2138 o.m 0,713 7.601 2,541 1 a74 0,0025 1,835 0.0008 C,11.25 0.0006 1,042 0.8060 I.Olla 0,7456 1JJ31 0.2838 7,163 2,332 0,902 0.0000 0,9fl2 o.ao,o o.o5a 0.7456 1,8Q3 ~.28119 0,7"2 1>75 o.oo:•w 1.700 o.ocoa 01e21 2,~98 0,871 0,7458 1.727 0.2839 0.718 1870 (J,002.C• 1.711 o.ocoa 0.076 0.0000 0.824 0,BD50 2,094 1.1171 o.zaao 0.704 e,eo~ 1977 0,0025 1.e12 o.ccoa 0.b66 0,0000 0.89 0.8050 0.799 0.7•S6 8,351 1.964 1078 o.002u 1,63':l 0.0008 0.864 o.oooe 0.861 0.6050 0.723 0.7456 ua, 0.2839 o.aM G,GaO 1,907 0.2839 0.8H 1971:1 C.002.S 1.805 o.oooa 0,1)1!5 0.0000 0.929 MO/lO 0,698 0,7456 1.65 8,337 1,670 0,7456 1.532 0,2939 0,634 1990 0.002f.i 1.673 o,oaoa c.afi-4 o.oc•o o.ai' Q,S(lO'O 0.074 1,!48 o.,u 0.74S6 1.525 o.2eae 0.613 8,1•9 1981 0,0025 l.55U o.oooa o.soe 0.0006 o.aae 0.8060 5,736 1,702 0,74S8 1.41B Q.283& o.asa 1SEi~ 0.0025 1.433 o.oooa o.~32 0.0006 0.787 0.8~0 0,698 8,132 1,7'113 1,5 0.IIBB 1913:l 0.002Ei 1,570 0.0008 0.683 0.0006 0.848 0.,050 0.025 o.1•i;e o.2aaa 1,0!i1 O.G42 ~.1,2 HIU4 0,0025 1.5oa 0.0001 0,933 0.0016 0,815 0.8Cli0 0.51 o.1•se ,1.386 0.21139 t.zeg 0.21139 0.509 5,20:I 1,~9 1985 0.0025 1,299 0.0008 0.829 o.ooco 0,767 0.6050 0.521 0,7•611 4,909 1,392 1,177 0.2839 0.488 1~88 D.0025 1.2es 0.0000 0.796 0.0008 0,736 o.aoao 0.409 0,745il 5,ZJ2 1,450 0.-479 10U7 0,002:i UH o.oooe o.aaa 0,0000 o:n; 0.8050 OA83 0,7456 U43 D.21139 .c,ses 1,343 1.1ij C.2839 0.445 19fl{i 0.0025 1,3gj u.uooa 0.130t\ 0,0006 0,7:).2 O,OCSD 0.44 0.7458 1,261 0.423 4,7ae 1'89 0.002a 1,365 0.0008 0.715 0.0001 0,721 0.8050 0.,109 0,7•6ti 1.~ 0.2889 v.28311 0.424 4,887 1,269 1:J~O c:'.0025 1,445 0.0006 o:ras O.OOOB o.711 0.6050 0.405 0,741iti 1,097 1,244 1.0112 0.2638 0.417 4,894 10M 0.002s 1.506 o.oao, 0.706 0,0006 0,712 o.aoeo C.39 0.746& 5,100 1,216 19,2 0,0025 1.666 0.0001 0.827 o.oooa 0,733 0.5050 O.illll! 0,74ll8 1,094 une 0.414 0,418 5,288 1,384 1903 0.002, ,.064 o.oooe 0.5~1 0,0005 0.781 0.0050 0,434 0,745U 1.203 0.2839 1,397 1.202 o.zesa Q.476 6,374 1094 0.0025 1.612 0.0009 0.805 O.OOOB 0.602 0.8050 0.448 0.7458 5,-144 1,449 1005 0.0025 1 ..se!i a.oooa U.027 o,ooae o,817 0,8050 0,473 0,7486 1.237 o.iaas 0A95 0,528 B,800 1,531 109~ :J.002~ i,631 0.0006 0.041 o.ccoe 0,855 0,8050 0.507 0.7456 1.296 0.211:19 0.648 5,653 UB4 1~0'/ 0,0025 1.501 o,oooa 0.,19 0,0008 o.p• 0.6060 0.5a3 0,7-loB 1.334 0.2839 ,0,21138 D.51' 5,773 1,509 !008 0,002.5 1.60 o.oooa 0.102 0.0006 0.127 O.BOSO C.SOil 0,7•5S 1.27• 5,493 1,"51 0,7458 1.2:l.6 a.2esa UB3 10,i 0,0025 1,634 o.ouos 0.861 0.0006 0.899 0.8050 0.49 6,e.l4 1,s~a 0.529 0.7466 1.313 0.2839 a.sos 2000 0.0026 1,$.24 o.oooe D.8'/6 o.coae 0,017 o.oosc e,12• 1,0113 2CJU1 o.oo:is Uee O,OOOG o.m O.OOC6 1.020 0.SC!0 0,575 D.7~5Ci 1,429 0.2839 0.627 1,296 0.2839 5,519 1,5?.9 2002 0,0025 1.435 0.0006 0.87 o.ooca 0-817 0,&050 0.526 0,7456 o.m 1,405 0.2.939 0.•59 S,421 2C•03 0.0025 1.462 Q.0008 C.9 o.ooce 0,1110 0.6050 0.453 0.74Sa 1,1'1 1,302 0.211\19 0.41i8' 5,123 2C04 0,0025 l.43 o.aaoa o.e,a o.ooca 0.851 o.eoso 0.446 0.7466 1.063 1,312 1,079 0.2838 0.405 5,148 2C05 0,002~ 1.416 0.CJG08 Q.958 0,0000 0.91"/ o.eollll C,4113 •0,7456 4,787 1,183 C.2113S 0,481 20M 0.0026 U76 0,0008 0.61 0,00()0 o,74e 0.6000 0,409 0,7456 0.1104 4,991 1,248 0."33 0,7456 1.004 Q,2U9 0.515 2007 0.002> \.412 0.0008 0.65EI MOOG 0,771 o.aas0 4,748 1,240 0,727 Q.8050 Q.43 0.1,00 0.8119 0.283$ 0.511 200U 0,0025 1.2aa o.oaoa 0,7tl$ 0.0006 •,838 1(Jll8 2009 0.002!i 1.334 o.oooa 0,115 0.0006 0,74 0.8080 0.454 0,7456 1,05 0,2889 0.5"5 0.2130 0.529 4,1125 1,232 2010 o.002u 1.328 a.coos 0.B1a O.OOOG 0.74 0.5050 0,406 o.745e 1,000 1,175 0,971 0.2e:18 U14 4,743 2011 0.0026 1.31~ o.oooa o.813 0.0000 0,780 0.6050 tl.>74 0,74H 4,755 1,170 0,7458 'o.867 0.2H8 0,507 2012 0,0025 1.318 0.0008 o.a12 O.OOCG 0,757 0,6060 0.374 4,72& 1,108 0,374 0,7-458 a.ea• 0.211811 0.499 2013 0.0025 1,322 o.oooa 0.81 o,ooaa 0,769 o.soso 4,719 1,101 201, 0.002S l,325 o.cooe o,aoa 0,0000 0,76 0.8050 0.374 0,74~S G.96 0.2839 OAH OMO -4,710 11156 0,00.2;:i 1,328 0.000, o.eoe o,oooa 0,781 0.eoso 0,37,j Q,74EG 0:95<1 0,2e89 401L 0,28311 D.478 4.702 1,1-61 2016 u.OOZti 1.331 o.oooe 0,804 C,0006 0.752 D,0050 0.374 G.745& o.9S:! 1,1,ia 0.2839 4,090 2017 0.0026 l.33• o,uooa o.eoa MOOG a.1ea o.soso· 0.374 0,7450 0.947 o.41 1,140 D.2a39 D.483 4,881 2010 O.OOZt, 1,336 o,oooe o.eo1 O,OCOG D.7M o.aoso 0,374 0.745a 0,943 0.211311 G,458 41BBQ 1,134 2011 0.0025 1,338 0.0008 0,798 o,oooa 0,755 Q,C060 0.:17• 0,7456 0.838 1,128 0.449 •,e.. 2020 0.002S 1.34 o.ocos 0,798 0.0000 0,78$ o.eoao 0.374 0.745& 0.834 0.28311 4,1-4£1 1,123 0,82" 0.2IISII OM:! 2021 D.OCZS 1,342 o.odos 0,7ij,4 0.0006 0.788 0,4050 0.373 0,7456 1,117 Q.2838 0.43!1 •,833 2022 0.00.2.!5 1,344 o.oooc 0.101 0,()006 0.76G 0.8050 0.378 0,7456 U24 0.21l/19 4,822 1,111 2023 0,0025 1,146 0.0001 0.789 O.OOC6 0,7&7 o.soso 0.37.1 0,7456 0.918 0.•28 0,914 0.2839 a.~1 4,007 1,105 2024 Cl.0025 1,:l47 o.oooe 0.786 o,c0c6 0,767 o.aoso 0.372 0.7456 1,099 0,745B 0.909 O.l~ 0.414 •,504 2025 0.0026 1.340 o.oooa 0.763 o.oo•a 0.767 O.B350 0.372 4,aao 1,093 0.0025 us o.:iooa 0.78 o.oooa 0,767 0.8050 0.071 0,7456 0.904 0,211a8 Q.408 2ne 0,2a3e 0,,!01 4,fiGS 1.0~ .20:2.7 c.0025 1,351 0.000, 0,778 0.0000 •.761 0.6050 0.37 .0.74Se o.aaa 4,551 1.oao 0,7458 Q.89'! 0,2ll:l9 0.3S4 2028 0.0025 1.352 0.0003 0.775 o.ocoa 0.767 o.aow 0.37 4,534 1,073 o.36$ 0.7456 0.867 0.2630 0,:!88 2029 0.0025 1.$52 0.0000 0.771 o.•coa 0.767 O,!W50 4,518 1,006 0,7400 0.8'!1 0.2839 o.sa, 2030 0.0025 1.:j$.3 0.000, 0.768 o.oooa 0.767 O.SOoC o.aea 4,501 ·i,059 O.ll76 0.2830 0.374 2031 0,0025 1.353 0,0006 0,76~ MOOS 0.700 0.6050 ll.a67 o.,:455 4,486- 1,053 0,$7 0.7456 M7 0.21!39 0.388 :2032 O.Ci::J26 1.353 0.0003 0.752 o.o::,oa 0.756 0,0050 4,4118 1,04!! (l.8050 0.3M 0.74.58 o.ee,; D.2839 o,:wi 203~ 0,0025 1.353 0.0006 o.755 0.0C06 0.765 4,450 1,039 0.$5 • 0,7458 C.BSB 0.21139 0.3.15 2034 0,002.5 1.,50 o.ooc~ P.755 o.Jo•a C:.764 Q.8050 4,433 1,(132 0,3!M 0,7¼6 O.!ffiZ 0.2839 0,349 20:J5 0.0025 1.J53 o.ooca 0.751 0.0006 C.7a4 C.S05• 4,415 1,025 0,7468 0.846 0.2839 0,343 .2038 0.00.::!5 1.3,.2 Q.0008 0.748 0.0006 a.763 C.OOS!l 0.383 1,018 0,2839 0.337 4,397 2037 0.0025 1.352 o.oo•,s 0.744 0.0006 0.1"2 0.8050 0,362 0,7456 D.IU 4,378 1,011 0,7<00 G.03+ 0.2038 0.531 :2.DJ£! o.ou~o i.351 o.oocw 0.74 0.0006 0.101 0,8050 0.3S1 4,359 1,003 0,3.5~ 0.328 Q,2838 0.325 2039 0.00213 1.35 o.oooe 0.737 o.ooos 0.76 o.aosa 0.7456 4,339 995 l040 0,0025 1.349 0.0000 0,703 o.oooa Q.759 0.501;0 n.Me C.7456 0.821 0.2839 o.a19 •-•~•---, ---~------• -•-•------~-• _M _____ ----•--•----~------•-•--• ------•------~r--•• NOTC:: {1) WE!GHIG ARE OBTAINED FROM TA.Sl..E-1. (2) HISTORICAL & PROJECTi:DARe FR.OM WOODS POOU: oA'rA &eRVl~l!S, INC. (IN THOUSANDS) (3) SUW. Of' ALL THE CO.JNTIE3 FARM EMP'~OYrAENT (2) (4) WEIGHTED FARM EMPLOYMENT FOR TrlEA'lEA O SUM OF PRODUCT (1) & (2) 1AllLE-6 HJ6toH:lCAL & PROJ!ECTEO Mlnln" l=MPLOYME.'.IT OF Lea C11unly ELECTRIC oo~. GlilWICl; AREA 1:iiliV..2a.lO -·-----·-· ·------··-·------· ----· ------t;A/Nll_TX ------YOAK\JM,..TX ------TOTAL YCTAA CI--AV£1 ...NM EDPY_NM UiA__ NM OOCJJRAN_TX LCeAA2 WEIGHT Mlolng COUNTY WEIQHr 1\/tt\!n~ WEIGHT Miolng w.:1~11r MlnlnJ WEICHT Milllog WEIGlff Mirting --- -~------· ·--····- -·------(2) (2) f-1) (41 (2) {\) (2) (1) I"! (1) (2) (1) (11 l'i O,'lll3 ....4 ,:,es 0,0D:?5 a.57S 0.0QOI 2.809 0,0000 i.~41 0.60$0 0,02!l 0,749 o.::;07 0,2839 •• a.sos 0.283S Q,ll:i1 9,472 1070 0.0025 o.on 0,000., ~.93B V.0006 •,107 0.8060 !.l,049 0.74511 D..f5D •• o.... n 0.283.!i 0..78U. 1J71 0.00::15 0.04& 0,0008 :l,U81 -0.0006 '1,523 O.OOGO tl,0'/4 o,7•5a D,090 O. 1977 G,OOW 1.0,,, 11,47;2 O.QC2!l, 0.131 o.oooe ~.2;ie, o.ocoe S,7H 0.8050 o.m 0.74/ll 0.571 0.2~9 1978 0.2aaa O,G38 12,002 i!}79 0.0026 O.S41 0,0008 3,JS:1 O,C(l(lfl 0,1711 0,8050 C•.112 0.7<® o,H• 1a.:i1 C·,C96 U.7"1S6 0,li60 0.2u1a • i980 0.00'1S · 1.'0:18 0,000(1 3,7C2 o.oooe 7,188 a,oo:io o.oa• 16,7£17 0 8 0,715B 0.72 '0,21:'Al 1,0JG • 1 ~91 0,0·1'.0:6 1.cmJ O,OOOB 4,328 a.oooe 8,416 D.B~O !l.1~ 16,1GB 1,020 0,17; 0.762 o.2a:;a t.Ob'3 1!iB:2 0.00~5 '.,1G 0.0000 4.36' 0.0005 1.err 0,SOllQ 0.7,451.l 13,32li (l,S,050 !l,147 0.11112 0.2Blll 1.01:: Hi83 0,0025 1.1SG 0',01'.l•S 3,60,S o..acoo 6.56SI 0.74'lO 13,15 646 o,ogo 0.7400 M/4 D.283li 0.723 Hi87 0,0025 1.~fS o.oooa 3,325 o.ooce 6,047 0.iOSO 10, 62 807 0,0111 0,14 0.lllr.!9 Q,894 • 19eo O.C0.25 1.243 o.Ooce. ~.11< o.coca 4.BS/l o.aoro 0.7•5B •"7 1L"98 o,ac:cs 1.1,e o.oooa 2,aea 0.0005 4.209 o.ec.;o 0.09 0.7•58 0All3 0.283D o.m 0.2130, 1D,l8S"·'"° 642 2COO 0,01.l~fl 1.176 o.ooaa :a,£Hl6 0.0006 6.1&4 0,8060 0.08 0.7<1il 0.<121 O.A3 0.7466 0.'18 0.2839 Q.UD f:i,!1•3 .. , 2001 0,0025 1,1,~ 0,0009 3.0 Z 0.0006 6.484 0.6060 0.0•1 • o.:iau. 0.1121 1,:"41 7.«i 20112 0,002G 1,04 o.oooe 2.940 O,CQ05 UB3 n.eoso 0,101 D.7•58 0,11•3 1-,,s:i, 703 0.745a 0.26~• 0,086 2003 0,CC.25 1,039 o.ooou 8,CQ3 -0.0000 5.0'3 o.aoao O.iO• 0- 10,874 061 D.098 0.001 0.2539 D.7G5 2004 {J,00:i:S c.~rn ,.0000 3,211 0.0000 6.3ei ~oo,;o 0.7o4Sel 1.:!,Dl7 714 0.529 11.211$9 0.803 2005 o,oc~r,; 1.C!t:iQ 0,0000 1,34> 0.0006 o.~4 o.oosa 0,103 0,7400 13,771 770 0,0025 1.254 3,747 0,/JIJl:IU 7.203 0.$060 O,cQlil C.7•511 ... ., o::ta3• 200fl o,ccoa ..... 807 O,IJHI 0.2" .. o.es; 14,874 2007 0,002$ 1,321 O,COOB 4,(l/(1 o.aoaa 'J.ll:?1 0.8060 0.0llll 0.7•6ll 1B,D"42 ,., G,211'19 1.DS:! 200S 0,002, 1,7:lS o.ooos 4.7~• Q.0006 8.BS UUISO 0.083 0.7•56 0.71 1101 0.2131l o.naa 111.ffl 2009 0,0025 2.205 0.0000 4,832 0.0000 7,¢.!8 O,fOllll o.oee 0.7<5" 0.7211 678 0,74 .. 0.211ae o.ea7 I0,<187 2llHi o.oo,s 2,.2:;!2 Ct,OCIO~ 6.014 o.acco 7,'/28 0.6060 0.08'/ 0.711 • ,1 861 0.)'456 O,CS-8 0.2839 0.91' .... 2·J'\1 QJ).~?:_6 2.:.!13 o.oou~ 6.aoe. o:ogaa Ui• o.aooo 0.082 1lfl,G11 0.7 a.21139 0.112 ... 2012 O,ot.1.2/5 2.216 0.00C13 8,03 0,00013 7.901 o.nosb O.OIH o.7.il~e • 871 0,7458 0.702 0.21131,1 0.831 10.m 20,-a o.oo:in ~.219 0.000-9 ~.aei O.OOOG Ull1 o:eoao 0.016 17,0lll 878 .0.7o\65 ~ IU3B 2U14 0,002'5 2-~-21 :1,oooe Ei.068 0.000~ ~019 uo~o 0.0BB .0.70S 17,0117 881 ~015 0,0025 2.~23 O,Oll!'..18 5.0~6 0.0:006 6.045 O,IS060 0,09 0.746S 0.705 Q.2830 u.e 0.115 11,148 685 .010 0,0020 2.224 o,ooon G,10.5 D.000& a,oolil Q,0080 a.DZ! o.74SS 0.70II 17,197 aeo W17 0.0•25' 2.'2'25 a.ooeia 6.12 0.000l1 8,0Q2 0.80$0 O,oe4 0,74•• 0.707 '0,2838 0.858 0,2830 M

75 807 o.2838 o.eee :lC22 o.oo,a 2,22 o.oooe 5,181 0.0006 ll.174 0.8080 o.10~ 0.74!.001'.ll:! 5.101 O,DD•B S,i'12 o.aoco 17,3!Jti Q23 0./450 0-"'39 1,023 203'.l 0.C025 7.,i6i'l o.nooa 5.~0J 0,00-00 S.1133 0,8050 0,128 o.esa 17,374 0.2839 1.025 .,. w:J:1 C.D025 2.•,[l o.ooaa 5.196 0.0G06 8.172 c.a-oso 0,126 D.7-'166 Mill 17,34S ,m G,1S. 0..7456 c.eaa 0.2'139 1.0:.,, 20d4 U.IJ02G 0.0006 5_1Gl'I 0,0006 a.1Q\J 0,!!.050 17,31J ,m Q122 0.7450 D.2838 1.IY.l7 2035 O. •o:;15 0.0005 e.10~ 0,0006 8.i.lJ4 o.scsc ..... 17,274 822 O.BC5C 0,134 0.7-456 0.611 D,;!B39 1.C28 203/J o.oc::;c, !l.173 O.ODOB A.1W 17,233 ..-.a 0.137 0.7-468 D,678 D.2l39 1.02Q 20J7 'J.0025 2,121 5,162 o.orno a.1oa C.6050 17,100 8:21 0.6053 D.745<1 0.574 ll.21139 20:J:J 0.0026 21', o.coos ~.15 o.occe a.oss 0.1"9 1.= 17,1JG 81S '.?()JI] 0.0025 :.'.GOU o,oane !,i.137 O,OGGS 8,031 O.S:Jf:.J 6.14"1 0.7400 0,67 0.2B39 1.025 {.,ffl 0.21139 1.t2B 171000 2040 U,0025 ::z.oar (),DUOS ,.122 0.0006 6.G)..J O,IJO!:O CI.VIJ 0.7455 "" ---~~-----~------'-· ------i\OTE: (1/ WEIGHTS AR£ OST,\!NED r'HCM TAGLE ·1. (2) HlGTORio.Al.. & PRO.JECTEDf1RE FROM WOOOG a !='Cole 0A1A SERVICES, INC. ,1t-JT.-iOlJSAN• 8) (J} {J10 35.897 0.0006 36,600 0.0006 42.Q•J o.eoso 1.<171 0,745~ 8.986 0.213~ 131,339 g,aee 2026 36.362 • .9•2 0.0025 o.oooa 31:l.127 0,0006 •U01 o.eooo 1.+1e 0.1,00 i,073 D.21531.1 1,i,ag7 Q,•3• 2027 0.0025 w.a,(2 0,0006 3:iil.Slil4 0.0005 4U03 0.0060 1..48:.il 0.7 0e i.150 0.2&351 il,,•65 Q.611 :2028 0,0026 • 0111··""" 31.336 o.ooce •0.00,! 0,000!) •4.003 o• .ao(:;o 1.488 t,7•00 11,230 o.~es11 5.014 138,0<7 Q,588 :;m.7.Gl O.OC1;;1S :,1',/,1)3 1 1 0.t!Uf.li! ,m~;:1,4 O.MOtl •l~.10;,;i:r (,l,(IO(iCI '1"4"12 a.7~1:~1J: I~,:~:~~ ll.:~e1;1:~ ~Ul:ltl ·i :J,; ,,!,! l~1 ~,O{i:2 ;w:;o o.oo,~!!:i JU,~l•~J tl,01.}0!J 41',0,00 tl.CIOD~I ,u,1~!:•:~ c,.c:mw ·j,41.'ti ,o.Nta U,•~:i,, l),:!1<111 ~t,C):3,1 'l~(l,2-fl:I ~.7~(1) :20::11 0,0:J~!ij ,!U,t::!)7 !,.(),!IU~, O.Cll'IC!I 41.!)'li O,ClfJ1:,w •II~.IJ~~I C,ll,(J::50 ·1,i;c,11 10.·7~,!i1~ (i,A:;1~1 1l:Il!~!I~ ~i,UI)~ :~i~1 :z :~ci:1,11 ci,n,ni; :3tit.~()1 tl.0111111 •I 1.. ~~•2 o,.c:io1J£:1 ~115,1! 1~I ,o,acmn ·(,!i,•"( il,:r4til) u,emi1 o,~?e~10 !i.'l(J~ "1•4~:,CIU,tl li1 11,e1!J :~, :1 J. o,ou:, 1tl :J\J,QtlO {'1,(10,0fl •l:U:l'O C,,O·Cil,)lli •,;r:1,,u iD.OCilJO ·:1 ,.(l 1~1 jJ,J•!i1, U,li!:ia, 0.,:!,0~1!~ ~,, 1:r1fl '1,4•1-n:;, 1,,1,H.i!i :20~1,+ O,OO~!!i ,io .. ~uu Ct,Q()I:)~; 1·,,~:.,a,:1,~ .:i.:urnn ,o,,fJrnH! 4?.mw IJ,,ac1S1D 11.~i,1e: l),;r.4t~O !l'/'46 Q,,~!1)W a.1~,:z 11),llll, ;10:1::1 (I ,(Hl,~) ,11,m1-1 1 ~,X,\)IJ~ ,itJY 0, :}(1(ki 4u,:1;~;: 1),1J01Sll Ul:21 (),jr,4!1(~ ~1,,1,:,;1,5 Cl,~:1J~n j dl7',~JO 7 rn,·lrn ·;iG~,O fl,UO,~ti ,f f ,1,1·1~1 (J, tfl•• •rn)e ~-:l.U •tl 1J,1wrn:~ 4~1. i'(i• o.Born:i: 1.~i:~,~ (l.7•1!1(! ~1,G;:·1 c1,::1aJ,1 ,!.HIil 1-19 1WO Hl,,'l:~~I 203? C:,t1iJW ,t?,~,i, ~1 ,~.,0,,1,.e 4,1,:1:Z'I O.ilOOB 4Il,W)3 O.l~OGO 1,!,:~2 (),i'AS;n ·101,orni o.~!H:·nr :5,:22:·1 ·l!iQ 1 ~:w 1C1,:.m:1 203!j G,tl():lC •ll.lll IJ,IJCl(J,11 4tf.'W~ 1).1)0(11) 411,115 0..ll•J~i() 1S:2,l)Ci0 1(1,:1-111 ;w::m ,:uu:w 1.~1113. Cl,N~~• -1,0,u":; c1.,.!1:ltl 1;,:11,11 • :!,(i2Ci lllJG(Hl 4(,.U1 (l,!),JLIU 15C1.J,tl1~ (l,Ml:i(l u;,1 t,,1•,u~1 Ql,;l~!:~~I 1MAc1:1 ICI,~,:?~ ~(MCI IJ,()(l;~ti · 1c•.1u is.:2u;:: •,t,:1n1 l).IJQGll 4fiJ',13 O.(l1JC,li !)•,9~1:2 · ,1.c11~~0 1,Sti~~ (1,74M i.O,;,/~:jr ,o.:w:rn !s;2ao 1fiU,•l '7~1 HI,~,,,~ "' ,. --··---· ·- ., ., ..... ,.,.,.,. ______,_, ____ . ~------"· ,___ .,_,. _____ , __ ,_,,,_,,, ___ ,___ ----. -·-·-·- _,.,,_,, -···---·-·-•-,-•··~" .'""'""""' """"' """"' .... •••-~-•----•Ho,-•,-~•••---,_,____ "'"""""""'"'" __ ., ___ .,,, ____ ,_, __ ,_, __ ,,. __ ,__ ------f~ll,1,1~,7 '1Ct,e:7,e MOT[:' (1:, \i\lE!l~il·l,":rt1 NSIJ~. 0131",lilt•ll~D r~n,~.1,t ~l''.il1lJLI~ .. ·j' ·--.. ------···-······•'----·-.. -- ... ·•"••------······-·-···-·--,-·-·-·"·"·"'"""-""'"""'"""'"· (~(:1 Htno)ttl:::1~!,, ~l PH1:),J~.t:nt)A~:i: 11,:no~,1 WC)C)l:lli ,5, ~11:11::a.1::: C),t1t;,r:~1 ~)[;,mrl(:E::~. !NC;,, (IIN THOU:8MJIC1:~) (::1) :;:1.m o," ,,.ILL, ·n•m GOUI\IT(I]~~ J:::111 ;:r.i!I eJ,IPL1:::1•(ME:N"'r !~~I

(4) ~~[,GHTJ~l) l•'(J~:M l~M.P1l. 1t/'J'M!:,l~t-r ,~c~H 'rHJ~ ,ilHC:/1, ;:::: ~H.lf~I ('fl f11r,:i: 1t)LJc::"T ("I} I~ ,r;~/ TABLE· 7 Lea County ELECTRIC COOPERATIVE HISTORICAL & PROJECTED POPULATION AND NUMBER OF C:::ONSUMERS

COUNTIES GOOP.AREA 1''ilttlhl>>f;,in>qi',F,:['A PO!'UI.ATIOIII DIVDl;D BY ITS PHOJIE:GT[.:l.J HCIILWEHCILD Sl:1:E (l,,il) HliITOlllC1'.I.. DATi\1IHC Ii-HOM Wf'E'C HECCIHtlS !\ND COCll'"S li:I"'• FOFlM :/ PIKIJ'ECTl::(l DAT,,, Ai':ll:: Cl\l..GUI./\H,tl FRCIM ;,H!, P)i:o;·i;C-rll:'.tl i=V\.ll() :# OI' CCINSUM[;fl:'i 11,' OF FiESIC-1:':I\ITIAIL. COMlUM[flS, ti TABLE- 7,hich Lea County\ ELECTRIC COOPERATIVE HISTORICAL & PROJECTED PQPULATION AND NUMBER OF CONSUMERS

--'---"--~~ ------~ _.....,,.,...,._,. __,._,. __ w ___,_ __ .. .--~-m- .. -••----• ___.,_.,_~------____,__.... --~------~....,,..- ~------•---" ------~------~--~--..---w-~- ..,._.....,...... ,.... • .,.,,,Hi:n NUMBER OF CONSU~,:1ERS riHrl!H·,..._..••"'**IZ!: (A,11]1 1-IISTORIG./\l. CIAO, Al't,i IFfi()M '1\11-"l:'G IIU:CORDS AN!) C:00.P':l fU,A, FOllM i' 1•1,:oJ11::cTL::D I'1Am AHi.: G!\LGl,lAJED tRCIM TIHE PHCl,11:G'IED HATIIO .:# 01'' CONSUl\1[,HS I# (If' HE:SIDt,NTI/\L. CON:J,Uli!''RS, Fmoc~;st ,3,ss,urr11s~~ inc;n:m~11~ of 150 11·,:!:Jfijim'ti~11 Gom11~1m~1r:$ p1or y1tJ:W, TABLE- 7.low Lea County ELECTRJC COOPERATIVE HISTORICAL & PROJECTED POPUL.ATJON AND NUMBER OF CONSUMERS --- .. ~----~~------'------~-,.~~. ---- -.--~-,...... -- ... ------____ ,. __ .. ~ .. ----.. ~., .. ~ ...... --.. ~------~-.. ____ .,_., _____ ., ___ -----~------1"W'1rOHOl\c'lft-1'P""'*"'"'* NUMBER OF-CONSUMERS _,..,.,...,,.,..,..,..,.,...... ,., ...... ,.. COUNTIES COOP.AREA Others YEAR POPU. INCREASE POPU. INCREASE RATIO RES. INCREASE. S.COM RATIO INCREASE L.COMM RATIO IRR. ------~~ ... -~ .. ------~------.. ------~- ___ .,,.,._,,.,. .. __ --.. -~------_...... ~ ...... _,..,.,,. .. __ ...... , -----.. ~ ...... ------~~----·------_____ ,.. ____

(1) ANN. % (2) ANN. %, (2)1(1) (3) ANN. % (4) (4)/(3) ANN. % (5) (5)/(3) •.001 (I #DIVIOI 0 0 1971 160,703 0 15,997 0,0996 0 a 0 #DIV/OI 0 0.00 0 #DIViO! 0 0 1972 161,331 628 0.39 1~,858 ·139 -0.87 0,0983 0 0 #DIV/Of 0 #DIV/0I 0 #DIV/0I 0 #DIV/0I 0 0 1973 159,529 -1802 -1.12 15,810 -249 •1.57 0,0978 a 0 #DIV/0I 0 #DIV/0I 0 #DIV/0I 0 0 0 1974 160,860 1331 0.83 15,653 43 0.28 0,0973 0 0 #DIV/0I· 0 #DIV/01 0 #D!V/0I 0 #DiVIOI #D!V/0I 0 0 1975 1ee,41a 5555 3.45 16,077 424 2.71 0.0966 0 0 #DIV/0I 0 #DIV/0I 0 #DIV/0I 0 1976 171,316 4900 2.04 16,256 180 1.12 0,0949 0 0 #DIV/0! 0 #DIV/0I 0 #DIV/0I 0 #DIV/01 0 a #DIV/0I 0 0 1877 172,520 1205 0.70 16,137 -119 -0.73 0.0935 0 0 #DlV/0I 0 ltDIV/0I 0 #DIV/0I 0 #DIV/0I 0 0 1078 17~.033 2513 1.46 16,2•0 103 0.64 0.0926 0 0 #DIV/0I 0 #DIV/0I 0 #DIV/OJ 0 #DIV/0I 0 0 1979 178,677 3544 2.02 16,566 316 1.95 0.0027 0 0 #DIV/0I 0 #DIV/OI 0 #DIV/OJ • 0 19B0 162,696 4119 2.31 10,984 428 2.68 0.0930 D 0 #DIV/OJ 0 #DIV/0! 0 #DIV/01 0 #D!V/0I 0 1961 107,717 5021 2.75 17,27il 291 1.71 0,0920' 0 a #DIV/01 0 #DIVia! 0 #DIV/0I 0 lfDIV/01 0 0 #DIV/0! 0 0 1982 197,520 9803 5.22 17,73~ 4150 2.66 0.0898 0 0 #D!V/0I 0 #DIV/0! 0 #DIV/Ol 0 Q 0 0 1083 203,676 6156 3.12 17,844 209 1.18 0,0881 0 0 #DIV/0[ 0 #DIV/0! #DIV/01 0 1/DlVIO! 1984 202,364 -1312 -0.04 18,104 160 0,89. 0,0805 0 0 #DIV/01 0 #DIV/0I 0 #DIViOI 0 #DIV/0! 0 0 1985 203,4~8 1104 0.55 18,583 479 2.65 0.0913 0 0 #DIVJOI 0 #DIV/0I 0 #OIV/0! 0 #DIV/01 0 0 0 0 1986 201,eao -1482 -0,73 18,246 -337 -1.61 0,0903 0 0 #OIV/01 0 #OIV/0I 0 #DIV/0I 0 #DIV/DI 0 0 1987 193,941 -8045 -3.98 17,492 -754 -4.13 0.0902 0 0 #DIV/01 0 #DIV/OI 0 #DIV/Ol 0 #DIV/0I 1988 190,201 -3740 -1,03 17,276 -216 -1.24 0.0908 0 a #DIVIO! 0 #DIV/0I 0 11D,IVIOI 0 #DIV/0I 0 0 1989 1811,352 -849 -0.45 17.4411 174 1.01 0,0922 0 0 #DIV/0I 0 #DIV/Oi 0 #DIV/0I 0 #DIV/0I 0 0 0 1990 '189,470 116 0.06 17,380 -70 -0.40 0.0917 6,271 6271 #DIV/0! 4,520 C.7222 4529 #DIV/0I 19 3,02982 1256 1991 190,817 1347 0.06 17,192 -188 -1.0B 0.0901 6,337 66 1.0~ 4,635 · •.7314 106 2.34 22 3.47167 1365 0 D 1992 193,085 2268 . 0.71 17,273 81 0.47 0,0895 6,372 35 0.55 4,735 0.7431 100 2.16 23 3.60954 1409 0 1993 H/4,600 1515 i.17 17,089 -184 -1.08 0,0878 8,SQS 326 6.12 ' 4,380 0.6539 -355 -7.50 22 3.28456 1466 0 1994 196,593 1993 0,78 17,208 119 0.70 0,0875 6,716 18 0,27 4,396 0,6546 16 0,37 23 3.42466 1554 D 1995 196,832 239 0.78· 17,245 37 0.21 0.0876 0,798 82 1.22 4,323 0,6367 -68 -1.55 24 3.53045 1679 0 1996 107,438 606 0.31 17,190 .55 - -0.32 0.0871 S,859 61 0.90 4,304 0.6275 -24 -0.55 24 3.49905 1768 0 1997 197,258 -180 -0,09 17,081 -109 -0,63 0,0866 8,883 34 0,51 4,362 0,6328 58 1.36 24 3.48171) 1823 0.05 3.34029 1900 0 1098 198,094 836 0,42 17,108 77 0.45 0,0866 7,180 292 4,35 4,364 0.6014 2 24 0 1999 196,368 -1726 -0,87 16,872 -286 -1.67 0,086.9 7,16~ -21 -0.29 4,253 0.5937 -111 -2.54 23 3.21060 1937 0 2000 193,434 -2934 -1.49 18,730 -136 -0.80 0,0B65 ,7,201 37 0.52 4,226 Q,6869 -27 -0.63 24 3,33287 2000 0 200\ 192,494 -940 -0.49 18,6Q5 -41 -0.25 0,0867 7,221 20 •.28 4,257 0.6595 31 0.73 25 S.46212 2068 0 2002 1~3,290 802 0.41 16,556 -139 -0.1!3 0.0857 7,240 19 0.26 4,260 · 0.5684 3 O.o7 25 3.45304 2071 2003 19',,399 1103 0.57 16,760 204 1.23 0,0862 730~ 65 0,90 4,298 0.5684 38 0.89 25 3.42231 2133 0 2004 195,904 1505 0,78 16,881 12i 0.72 a.oaa2 7366 61 0.84' 4,324 0.5870 2.6 0,60 25 3,39397 2197 0 2243 0 Historical 2005 197,308 1404 0,73 17,131 250 1,48 0.0868 7432 66 0.90 4,381 a.sees 57 1.32 24 3.22928 2006 199,761 2453 1.26 17,359 228 1.33 0.0869 7591 159 2.14 4,487 0.6911 106 2.42 23 3,02990 2294 0 0 2007 203,537 3776 1.93 17,735 376 2,16 0,0871 7730 •139 1.63 4,420 0.5718 -67 -1.49 23 2,97542 2432 2008 207,187 3650 1.85 18,065 330 1,86 0.0872 8012 282 3.65 4,582 0.5719 162 3.67 22 2.74588 2428 0 2009 211,328 4141 2.07 18,5•4 439 2.43 0.0876 8020 8 0,10 .th53D 0,5648 -52 -1.13 20 2.49377 2439 a 2.362.69 2470 10 2010 212,963 1635 0.80 18,860 356 1.92 0.0888 8041 21 0.26 4,549 0,5657 19 0.42 19 2011 214,892 1929 0.93 18 900 40 0.21 0.0879 8104 63 0.78 4,569 0.5637 19 0.42 20 2.46792 2518 4 2015 223,102 2052 0.96 19,102 51 0.27 0,0856 8,144 10 0.12 4,591 0.5637 6 0,39 21 2.57659 2598 4 4 2020 233,758 2131 0,96 19,388 57 0,30 0,0829 8,194 10 0.12 4,619 0.5637 6 0.32 21 2.56266 2698 2025 244,611 2171 0.93 19,690 60 0,31 0.0005 8,244 10 0.12 4,647 0.6637 6 0,25 · 21 2.54731 2798 4 Projecte~ ;w~io :?.E1!),4·! ~I 2·11~10 0.110 'l~llii)l37 l~;jj 11.:11.1 0,0711:1 u,~i181•i 10 O:l~t 4,ffr!} (L,:5G~l'i (I (l,;21 21 :2.511i!J5 2880 .~ (I :~.fi•11J1;m !~D:J'B ,4 :10:I,, :200.100 ~~1 :.;,u (),.[;1,1 ~!D,.:~~.7fi 1E1lJ D.~![~I (l,[1713:: u,;:!il•l ·10 O.··I~! ,1,rn:i ,cum:17 0.11l ~~ i .,,1, 4,rn-1 [Ujt)~l'1 (i 0.11l :umrn1 :~C)01:> 4 ;20,;o :27t:,la7o ~~1 :5,G (),.,1··1 ~W 1:5,\5tl OJ~SI (),(17,1,1 u.~1!g1.\ 10 o.·1::: ~:1 ... ,.~~ ,.,., , , _ , .,. ~ --""'"'"'•"'"""""'" ,, ,.,., __ ,_,_ -----•,•••~-~ ..... ,.,w,••••••H•• •••----•••••'•'"'"'" --••'•---••---- 0 '"'"'"'"'""Offlffl~---•• .. ,...... ~-····"''"'"'" ------...... ,,.,, ...... -----· ,., •... ~--,~~~~ ..... ,. ~-~, .. ,...... , ____ ... ,.,.,., ...... ------···"' ...... --·-~··· ...... ,. NOTI,: (I) Hl8TORt•::AL J:IATA NU, FflOM f<.l,'GIONAL. J;C:ONDMIC INFORMATION SYSTEM iEILlfll:AI.I OF EGOIIIOMIG NJ/1.I.YBIS. 1"I'<0,.1I,GTl,l:I Ul(T'I\ ARE FfmM W<>t1tls (:1) l·IISTCH:IC./\1.. :!, Pl'I0,11,CTED DATA AHE WEIGi l'fl::ICI FOf, THI, COOP. l:il'.HVIGE: .l\llE/\. (!''HOM TAl:ILJ:: --2) (:1) HltlTORIC:,,,IL. DA!'AAHC: FROM WFi,c 1<.Li:OOHDS ,o,I11r., CCIOP.'S RE:/\ f'Ol<.M '/' FHO,H:C'rt,O l)ATA l!S GAGUI ... I\TED FHOM COOP, ll!,HVIGE: Am,11 l'Ol"illl..ATl:mi IJIVIX':0 IJY ITI,, f'R0,11,:C i"l:D HOUst,HIOLD SIZE l•i,(i) :,·lifirtlHIC:Ali .. D,0,TA Al'tE: f'f!()M Wf'E:C Rl::c:rnws ,o,N[) GOOP'S l'(Ec/\ f'()!i:111 T Pl'(O,IE:Gn,tl DATA Al',t: CI\LCUl.1\.TECI l'ROM Tl,llc! l''IUl,lt:CTt;D R','1'10 :# OF CONSI.IMl,H,S NI OF Rl::SID:,,MTJ.ill. CONI,:UMl::J:tti. F:cJri;,,:•1~~"1:~,t •.1:,:::.1.1nHl5i in,t::,f'i~m~,t:! oF ·10 rn,r:;,h'k::n!l.:.:Jil ,1o·m1umr;1m p1c:r y,1nr, TABLE;· a.a

H[STORICAL AVERAGE MARKUP SY Lea County ELECTR[C COOP. 1969-2011

__ .. ___ ,. __ ,. ~ .., ----~-~-· ...... -----.... ~ ...... COST TO LC.l:.C. COST IN CENTS/KWH TO CONSUMERS ACT\JAL MARK-UP BY CO-OP REA/.. MARK-UP IN CENTS _,._ .. ,._,._, MILLS/KWH __ ...... -...... ,-~-.. - Sf\/lALL LARGE SJ\11ALL LARGE SMALL LARGE YEAR PCE20D5 ACTUAL REAL RES. IRR. COMM. COMM. RES, IRR. COMM. COMM. RES. IRR, COMM. COMM. _.._..,,._.. -~ ..... (1) (2) (3) (3) (3} (3) (4). (4) (4) (4) (5) (5) (5) (5) 1969 22.e2 o.oo o.oo· 0.00 0.00 0.0• 0.00 a.co 0.00 0.00 1970 23,67 0.00 0.00 0.00. 0.00 0.00 0.00 0.00 0.00 0.00 1971 24.08 · 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 1972 25,53 o.oo 0.00 0,00 0,00 0,00 0.00 C.00 0.00 0.00 1073 26.90 0.00 0,00 .. 0,00, ·c.oo 0.00 0,00 o.oa 0.00 0.00 1974 29.70 0,00 o:oo. 0,00 0,00 0.00 0.00 0,00 0.00 0.00 1975 32,iS ·o.oo o.oo' 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1976 33,95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0,00 1977 36.16 0.00 o.oo 0.00 0,00 0.00 (l.00 0.00 0.00 0.00 1978 38.69 0.00 .., O.DD 0,00 0,00 0.00 a.co 0,00 0.00 0.00 1979 42.12 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.0D D.DD 1980 46.64 0.00 0.00 0.00 0.00 0,00 0,00 0.00 0,00 0.00 1981 50.61 0.00 0,00 0.00 0.00' 0,00 0.00 0.00 0,00 o.oo 1982 53.62 0.00 0,00 0.00 o.oo 0,00 0.00 0.00 0.00 o.oo 1983 55,92 0.00 0.00 0,00 0.00 0,00 0.00 0.00 o.oo 0.00 1984 58.04 0.00 0.00 0.00 0,00, 0.00 0.00 0.00 0,00 0,00 1985 69.94 0.00 0.00 0.00 0.00 0.00 0,00 o.oa 0,00 0.00 ';986 61.40 0.00 0.00 0,00 0.00 0.00 0.00 0,00 0,00 0,00 1987 63.59 0,00 0.00 0.00 0,00 · 0,00 0.00 0.00 0.00 0.00 1988 66.12 0,00 o.cio 0,00 0,00 0.00 0,00 0.00 0.00 0.00 1989 68.99 0.00 0.00 0.00 Ii.DO 0.00 0.00 0.00 0.00 0.00 1990 72,15 31.70 43,94 5,80 5,11! 5.43 4.94 2.63 1.99 2.26 1.77 3.64 2.75 3,13 2.46 1991 . 74,76 31.13 41.64 5,69 4,99 5.34 4.84 2.58 1.87 2.22 1.72 3.45 2.51 2.98 2.30 1992 76.96 31.71 41.21 5,74 5.52 6.31 4.74 2.57 2.35 2.13 1.67 3.34 3.05 2.77 2.04 1993 78,64 32.79 41,70 5.83 5.13 5.33 4.85 2.55 1,85 2.05 1.57 3.24 2.36 2.61 2.00 1994 80.27 32,51 40.51 6.25 5.40 5.40 4.71 3.00 2.15 2.15 1.46 3.74 2.68 2.68 1.82 1995 82.04 31.92 38.91 6.26 5.46 5,82 3.35 3.07 2.27 2,63 0.15 3.74 2.76 3.20 0.19 1996 83,83 34.67 41.36 6.48 5.68 6.65 4,35 3.01 2.21 2.18 0,88 3.59 2.64 2.60 1.05 1997 85.40 35.33 41.37 6.53 5,79 5,71 4.39 3.00 2.20 2.17 0.86 3.51 2,65 2.55 1.00 1998 86,21 32.68 37,i:11 6,17 5.56 5.45 3.93 2:eo. 2.31 2.18 0.66 3.37 2.68 2.53 0.77 1999 87.60 30.80 35.16 6.08 5,SO 5.30 3.88 3,00 2.42 2.22 0.80 3.43 2.76 2.54 0,92 2000 89.78 35.32 39,34 6.39 5,71 5.67 4,35 2.85 2.18 2.14 0,81 3.18 2.43 2.38 0,91 2001 91.49 37,31 40.78 6,78 S.29 5.89 4.32 3,05 2.56 2,26 0.59 3.33 2.80 2.47 0,65 2002 92.74 31.84 34.34 a:20 5.57 5.41 4.07 .3.01' 2.39 2.23 0.88 3,25 2.58 2.40 0.95 2003 94,66 36,37 38.42 G.53 6.14 5.75 4.56 2.89 2.51 2.11 0.92 3,06 2.65 2.23 0.97 2004 97.12 42.75 44,02 1.11 6.37 6.33 5.17 :us 2.09 2.06 0.89 -2.98 2.16 2.12 0.92 2005 10C-.00 53.11 53.11 ,B,13 7.0f, 7.62 !fl,::l2 2.87 .2.:2;7 2.2.1 1.01 2,87 ~.37 :2 ...21 ·1.01 :<:00(3 10:?..7~?. !)0.:~'.l61 4ll (Iii ,81.,IJ:2 7,:~i:2: :r.:1:1 :E;.,:3.;? ·:l.(l() .::~ .1 GI :?..ao n.i~4 ~t.:£1;2: :~.~14 :~~.,:~:4 o,o:i :l.'1)0? '!Ci!:i.m) 4,1,74 47.H '1'ilQ i'J':•: :r.-111 1,:.1):l :~J~a ,(,(,l~,U ;~.~m '1.lltl ~:.YB :~.HE~ ·~i .. rn;• 'l.(J"I :WOB ICilJl4 ti!l.:1:l, li'.Ul(i :GUIil u.rn ll.7!1 iSl.,;2.!l !~:7G :~!,.a4 2.H7 ,,().ti~! ~~,,54 2.il6 :,:.7:2: .. [1,4:,: ;ll)Osl 11)0.-17 :1·s1.1s::i :HL4fl 7,.lli5 Ei,1:2: B.!i;~ 4,.1)7 :).(J'i' :~:,,·1-4 :!.ail 0.0!) ~:,.::,·1 'l.flG :,:.1-1 o.ou :?IJ(l(l 1·1·1:111 ,4.(i,:lll' 4().'li' IS-,ll!J 7.. :~14 !Ui11 11;,:21; ll.47 :,:,'/·I '1.(1(1 l),71i ,1.t1. :1.44 1.713 0.(li' :100,1 1·1:urn 41,:,.:,:i 4CU1ci 13:1'1 ,11 .. :s:G El,i'(I 15.ll:l :l.4\1 2.:11 ;~. 1-~: ll.lH! :3i,,IJ4 'Ul4 1.llll O.i7

., ~ ,,,, "~~ ., ~ ,, .. , ,,., ., '"""'""""'"' '" .. ,,. "' ,, ,, ,._., , ~ ,, ,.,.,.., " ~ , ,, , ,., -~" ,., ,,, , , ..,,,,, ,~ '• ., ""'"""""' ,., , , , , ., ...... "''" ...... ,. •...... ,, ...... , ...... _ ., ...... -...... , ...... • ... ". ----··-····-----,. ... ,...... , ..... , tiYR AVEIFl/\.GE: a:14 :2:.44 ~!.212 IJ,46 :2'.,ll!l ~:.2:a 2:1~~ 0.4'1

,.,.,. ., " , , ~-~ ~ , ---····---- .,., .... ,. -.,. ,., ... .. ,.,. -- ., ...... , ...... ,., ...... ,...... , ...... ,.. ,., ...... ,... ~.,. ., .. ,.,., ...... ,...... -~· .. ,., ___ ...... ~-... .. , ' ·•••'• ~ ~-··-""'"'~"'"'""" .... ~ ...... ~ .. -.,., ...... ,,,., ...... ~ .,...... ,.,. """ .,.,.., ... '"''""'"'"'''""'''"""'""'~" __ _., ...... ,• .,~, ..... ,,., • .,, '"'••--••••·••H"'"'"'""""' NOTE:: (1) FF.OM WFl:G BILLING HECOifm:c: El FCIF!M i' (:,:) REAL. GOST" I\GTU,1,:1., GOS1i / PC:E i) (::,) l''RCIM l'll:A FOl,:M 7 1•,ND \/1/f'EC: IEIIL.l.llNG RECORtl::;i (4) ACTUAL M/\l<:KUP "' ACTUI\L (RE:TAIL • WldOll.ES/1.IL.lc:) f:5) HEAL MA.HKl.lf' ".I\CTUAl. (Rl:TAIIL ... WHOU:SAU:}ll:'CI: TABLE-8.b

HISTORICAL WHOLESALE PRICE DIFFERENCE BETWEEN MEMBERS & THE LC.E.C (NM ) 1969-2011

WHOLESALE PRICE PRICEDIFF. IN MILLS/KWH TO MEM.&LC.E.C

YEAR PCE05 MEMBRS LC.E.C ACTUAL REAL

(1) (2) (3) (4) 1969 22.62 S.54 0;00 --6.54 -28.92 1970 23.67 6.59 0.00 --6.59 -27.84 1971 24.68 6.67 0.00 --6.67 -27.02 1972 25.53 6.73 0.00 -6.73 -26.37 1973 26.90 7.16 0.00 -7.16 -26.62 1974 29.70 8.27 0.00 -8.27 -27.84 1975 32.18 9.99 0.00 -9.99 -31.04 1976 33.95 14.14 0.00 -14.14 -41.65 1977 36.16 19.03 0.00 -19.03 -52.63 1978 38.69 21.59 0.00 -21.59 -55.81 1979 42.12 24.10 0.00 -24.10 -57.22 1980 46.64 27.29 0.00 -27.29 -58.51 1981 50.81 31.23 0.00 -31.23 -61.46 1982 53.62 41.81 0.00 -41.81 -77.98 1983 55.92 50.05 0.0!) ..so:05 -89.50 1984 58.04 48.13 0.00 -48.13 -82.93 19_85 59.94 47.94 0.00 -47.94 -79.98 1986 61.40 44.84 0.00 · -44.84· -73.03 1987 63.59 43.n 0.00 -43.77 -68.83 1988" 66.12 43.34 0.00 -43.34 -65.55 1989 68.99 · ·45:39 0.00 -45.;39 -65-79 1990 72.15 45.4~. 31.70 -13.71 -19.00 1991 74.76 45.0S 31.13 -13.92 -18.62 1992 76.95 45.89 31.71 -14.18 -18.43 1993 78.64 . 43.40 3279 -10:61 -13.49 1994 80.27 41.53 32.51 -9.02 -11.23 1995 82.04 40.32 31.92 -8.40 -10.23 1996 83.83 38.97 34.67 -4.30 -5.12 1997 85.40 36.30 35.33 -0.97 -1.14 1998 86.21 33.80 32.68 -1.12 -1.30 1999 87.60 ·JJ.50 30.80 -2.70 -3.08 2000 89.78 40.80 35.32 -5.48 -6.10 2001 91.49 48.72 37.31 -11.41 -12.47 2002_ 92.74 40.61 31.84 -8.77 -9.45 2003 94.66 47.48 36.37 -11.11 -11.74 2004 97.12 47.14 42.75 -4.39 -4.52 2005 100.00 52.84 53.11 0.27 0.27 2006 102.72 59.59 50.26 -9.33 -9.08 2007 105.. 50 60.72 49 .. 74 10.98 .. 10.41 ;)()08 ICJB)H (:i'!.20 5fl:l:l

PROJECTED AVERAGE WHOLESALE AND RETAIL COST OF ELECTRICITY (NM )

2011-2042 ,. ,._,,,. .. _, ,,.,,..,_ ~ ...... ---~--, ___ .,_ .. ___ --- COST% WFEC WHOLESALE PRICE TO LC.E.C MARKUP BY MEMBER IN REAL MILL COST TO CONSUMER IN REAL MILL COST TO CONSUMER IN ACTUAL MILL RELATIVE PRICE MILLS/KWH MILLS/KWH SMALL LARGE SMALL LARGE SMALL LARGE YEAR TO2011 PCE2005 ACTUAL REAL ACTUAL REAL RES. !RR. COMM. COMM. RES. !RR. COMM. COMM. RES. IRR. COMM. COMM. ____ .., __ ., ...... _._ ...... -~-•--- (1) (2) (3) (4) (5) (6) (7) (7) (7) (7) (6) (8) (6) (8) 2011 100.00 11$.58 54.98 46.3Q 46.62 40.&6 30,44 19.44 113.82 7.73 . 71,40 80.40 59.78 48,69 8.11 6,88 6.79 5.53

2012 105.17 116.80 59.44 50,89 50.6Z 43.26 28.59 22.29 21.23 4.11 71.84 65.56 64.49 47.37 8.39 7,66 7.53 5.53 2013 105.43 120.19 61.32 51.02 52.78 43.38 28.59 22.29 21.23 4.11 71.97 65.68 64.62 47.50 8.65 7,89 7.77 5.71 2014 104.85 123.75 62.79 50.74 54.92 44.3/J 28,59 22,29 21.23 4.11 72.97 66,67 65,6', 48.49 9.03 8.25 8.12 6.00 2015 103,76 127.48 64.00 50.21 59.17 45.41 26.69 22.29 21.23 4.11 75.00 68.70 67.65 50.52 9.56 a.1s 8.62 6.44 2016 102.60 131.38 65.22 49.65 60.41 45.98 28,59 22.29 21.23 4.11 74.57 68.27 67.21 50.09 9.80 8,97 8.83 6.58 2017 100.48 135.46 65.86 48.62 64.30 47.47 28.59 22.29 21.23 4.11 7M5 69.76 68.70 51.58 10.30 9.45 9.31_ 6.99 20'18 100.12 139.74 67.70 48.45 66.96 47.91 28.59 22.29 21.23 4.11 76.60 70.21 69.15 52.03 10.69 9.81 9.66 7.27 2019 99.69 144.23 69.57 48.'24 68.44 47.45 28.59 22.29 21.23 4.11 76.1)4 69.74 68.69 51.56 10.97 10.06 9.91 7.44 2020 99.12 148.93 71.43 47.96 69.97 46.98 28.59 22.29 21.23 4.11 75.57 69.27 68.22 51.0S 11.25 10.32 10.16 7,51 2021 105.24 153.86 78.35' 50.92 71.38 48.39 28.59 22.29 21.23 4.11 74.98 68.68 67.62 50.50 11.54 10.57 10.40 7.77 2022 101.07 159.03 17.77 48.90 94.28 59.28 28.59 22.29 21.23 4.11 87,87 81,57 80.52 83.40 13.97 12.97 12.80 10.0B 2023 99.01 164.46 78.78 47.91 100.38 61.04 28.69 22.29 21.23 4.11 89.62 83,33 82.27 66.15 14.74 13.70 13.53 10.71 2024 97.70 170.15 80.44 47.27 101.10 59.42 28,59 22.29 21.23 _ 4.11 88,01 81.71 80.65 63.53 14.97 13.90 13,72 10.81 r, 2025 96.32 176.12 82.08 46.61 103.91 59.00 28.59 22.29 21.23 4.11 87.59 81.29 80.23 63.11 15.43 14.32 14,13 11.11 2026 110,09 182.32 97.12 53,27 91.36 50.11 28.59 22.29 21_23 4.11 78.69 72.40 71.34 54.22 14,35 13.20 13.01 9.89 2027 118.94 188.75 108.63 57.55 97.07 51.43 28.59 22.29 21.23 4.11 80.01 73,72 72.66 55.54 15.10 13.91 13.71 10.48 2028 116.98 195.43 110.63 56.61 99.02 50,67 28.59 22.29 21.23 4.11 79.25 72.96 71.90 54.78 15.49 14.26 14,05 10,71 2028 1"14.56 202.37 112.18 55.43 100.52 49.67 28,59 22.29 21.23 4.11 78,26 71.96 70.90 53.78 15.84 14.56 14,35 10,88 2030 113.GO 209.58 115.20 54,97 102.90 49.14 28.69 22_29 21.23 4.11 77.73 71.43 70.37 53.26 16.29 14.97 14.75 11.16 2031 113,30 217.03 119.00 54.82 106.70 49.16 28.511 22.29 21.23 4.11 77.74 71,45 70.39 53,27 16,87 16.51 16,26 11.56 2032 112.66 224.83 122.57 54,52 110.54 49.17 28.59 22.29 21.23 4.11 77.75 71.46 70.40 53.28 _17,48 16.07 15.63 11.sa 2033 112.02 232.90 126.25 54.21 114.52 49.17 28.59 22.29 21.23 4.11 77.76 71.46 70.40 53.28 18.11 16.64 16.40 12.41 2034 111.37 241.28 130.03 53,69 118.65 49.17 28.59 22.29 21.23 4,11 77.76 71.46 70.41 53.28 18.76 17.24 16.99 12.86 2035 110.72 260,00 133.93 63.57 122.92 49.17 28.59 22,29 21.23 4.11 77.75 71,46 70.40 53.28 19.44 17.86 17.60 i3.32 2036 1'I0.07 259.02 137.95 53.26 127.~5 49.17 28.59 22.29 21.23 4.11 77.75 71Ae 70.40 53.28 20.14 18.51 18.23 13,80 2037 109.42 268,37 142.09 52,95 131.94 49.16 28.59 22.29 21:23 4.11 77.75 71.46 70.39 63.27 20.87 19.18 18.89 14.30 2038 108.77 278.06 146,35 5Z.63 136.69 49.16 28.69 22.29 21.23 4.11 77.74 71.45 70.39 63.27 21.62 19.57 19.67 14.81 2039 108.13 288.10 150.74 52.32 141.61 49.15 28,59 22.29 21.23 4.11 77.74 71.46 70.39 53,27 22.40 20,68 20,28 16.35 2040 107.50 298.50 155.27 52.02 146.71 49.15 28.59 22.29 21.23 4.11 77.74 71.44 70,38 53.26 23.20 21.33 21.01 15.SO 2041 106.66 309.27 159,92 51.71 152.00 49.15 26.59 22.29 21.23 4.11 77.7'3 71.44 70,38 53.26 24.04 22.09 21.77 16.47 2042 106,23 320.44 164,.72 51.41 157.47 49.14 :26.59 22.29 21.23 4.11 77.73 71.43 70.38 53.25 24.91 22,89 22.55 17,06 ~~~ .... -~~ .. ~-... , "--~----~-· ___ ., ___ .,., ____ .,. NOTE: (1) WHOLESALE PRICE (REAL) RELATIVE TO BASE YEAR (2) From Woods & Poole. (:!) FEOM WFf.,C :W·I:! LONG: HANG'E: FINANC:IIAL MODEL (

Table-11 Lea County Weather Data Hi.alln~ D•gre1 dayI. 298713 TATUM 7 HTDD D 1970 823 50.9 569 228, 82 2e a 0 64 333 497 625 3736 298713 ,A':'UM 7 HTDD D 1971 734 648 4~(! 209 43 0 0 0 95 234 500 717 3630 298713 TATUM 7 HT;:JD D 1972 738 596 332 145 50 C 4 2 36 262 756 881 3781 298713 TATUM 7 HTDD D 1973 868 783 587 422 118 4 0 a 46 204 455 703 4270 298713 TATUM 7 HTDD D 1974 709 590 244 149 21 0 0 2 160 2-47 374 666 3152 2SB713 TATUM 7 HTDD D 1975 891 640 458 286 58 5 0 0 77 1QS 492 752 3e64 298713 TATUM 7 HTDD D 1970 ns 414 412 145 69 0 0 0 34 352 757 819 3810 298713 TATUM 7 HTDD IJ 1977 919 568 564 203 14 0 0 0 0 129 437 492 3326 298713 TATUM 7 HTPD D 1978 912 624 403 1Z4 65 12 ·o. 0 53 177 490 813 3673 29871, TATUM 7 HTDD D 1~7Q 946 644 4TT ~,;e 56 21 0 0 27 1,;g 705 7g1 I •OC2 29871, TATUM 7 HTDD 0 1QCO 767 604 514 321 77 0 0 0 85 259 701 e•~ 3g13 298713 TATUM 7 HTDD D 1961 785 602 501 126 55 0 0 0 26 198 388 629 3310 296713 TATUM 7 HTOD 0 19~2 820 682 469 202 87 3 a 0 10 326 586 856 ~131 2987",3 TATUM 7 H7DD D 1ga3 851 627 5•3 479 112 30 0 0 33 159 440 1059 ·',2B3 296713 TATUM 7 HTDD D 1984 863 eas 462 269 61 2 0 3 108 335 ~;12 001 -'1101 J~B713 7ATUM 7 HTDl1 11 108,5 9Cl'i 692 478 178 61 0 0 0 67 266 •61 A32 39•,1 :WE::r1:J TI\IUl\l i' lffDD ll rnrnJ 1rna 15B7 :3a1S1 14Et !37 (l :l fl :2fr0 f.iati ti:?.~~ :Ji1l15,~) :;me,71:) TATUM "{ HTOO [) 10C17 OEIO 01;2 :!:iffl' :3,71 71 1~! I! I) ~~:2 1DG1 fft1 fl4B 407:1 :2\W'/1:i TIITI.IM 7 HTD':l !J 1\lc:ll iJil:l T,W !;ia5, :3[)GI He; (I (I 11l 1,1 1'11 ,4;,1· -t1'14 :3l~~4 wcr,r·l:3 ·rArUM 7 i·ffDI] cl 10.eo 7r:1~r 71'1 ;3f,;:!, 10'7' ~~Cl (I ·I flfl HIIJ ,~;;~·~i ~li~f.l :1,1:3() :W,:~71:$ ~~~i.,TUM i' lffDD D HJ:JO n,1~ (~(l;t, 6~)!) ;~:t.~, 1'l,4 ii 1,1 ·1 :$ :mi ,•:17' u:m :ff,'11: :~01~71:) "'~/ .. TUl11l i' 1-11'1)0 [) Hl'o'I !IS:ll M:~ 4Ei2 ;200, •i?' [I (I tl "/1) im 136,2. (11)1 :~7!3~1 ;~~)137 f~~ 'i"'ATl~/vl Hl'DD [l rn,a~i u,~!i trn:; :J~l1) :21 IJ (15, i' (I I) ~'.7 '1~115 l)!l,j 7'1)4 :ll'il1 ?rnm:1 il,flJM Hr:;ii:1 [l 'llll):I Hl'I fH7 6Cll3 2EiiJ !15 (I (I fl ~IB :ws 15fil9 115(1 4,11,1 !Wi371~l TAfU111t ~-ff DD D rn!~4 tt:~~~ 7i:J7 ~t6C~ :.!./:ii:! €1:/. Cl CJ ~1:~ li'1 ,,1111 ,1.,.1,1 a,e:4·1 ?OiJi"f:I l~ll\Tl.JtJ! cl'l'DD D ·j91)f.) 'TICJ ~r7:~ S10 :2Ei!) !i:l [I ll rr ·!ti/) ,447 1'~?~1 ~ :1,~i(J~I 296/13 TATUM 7 HTDD D 1996 803 560 598 256 4 0 0 0 15 217 496 726 3675 295713 TA,UM 7 HTDD D H1:rr 681 726 422 361 75 0 0 1 14 243 099 874 4196 298713 TATUM 7 HTDD D 1098 705 593 547 335 2 1 0 0 0 139 380 692 3394 298713 TATUM 7 HTDD D 18~~ es1 460 488 253 81 3 5 0 44 112 372 784 3253 298713 TATUM 7 HTDD D 2000 692 425 410 165 38 2 0 0 37 203 7CO 852 3524 29B713 TATUM 7 HTDJ D 2001 652 534 5€1 170 41 0 0 0 9 162 441 748 3518 298713 TATUM 7 I-ITDQ 0 2002 732 889 578 161 41 0 0 0 9 230 573 764 3777 298713 TATUM 7 HTD::l D 2C03 7H) 620 433 165 34 2 0 0 GO 00 451 710 3271 29a713 TATL:M 7 HTDD D 2C04 726 722 360 246 52 0 a 0 32 74 BOO 829 3647 295713 TAT~•A 7 H,DD D 2C05 67'1 609 536 373 120 0 3 1 7 215 489 ace 0830 296713 TA7UM 7 HTDD D 2006 703 e22 407 12a 28 1 0 1 . 61 ·165 468 814 !•84 296713 TATUM 7 HTDD D 2087 979 658 416 367 99 1 0 0 17 182 512 750 ... 3001 208713 TATUM 7 HTDD J 2006 ,878 636 511 257 80 0 0 0 24 219 021 758 3831 Max 4293 286713 TATlc'~ 7 ;-\"'."DD D 2009 753 GOO 405 266 34 0 2 o 42 262 475 925 37C~ Min 31~2 298713 TATU.\1 7 HWD D 2010 88$ 758 549 233 94 0 0 6 0 115 531 707 3682 Avg 374,5.6 295714 TATUM B HTDD D 201'1 854 738 343 30 82 Q 0 a 16 150 495 959 3665 St Dev. 282

Tatlo• 12 Lea County Weather Data Proclpi11tloo 298713 TATUM 7 TPCP HI 1870 0 15 115 120 1211 210 200 72 227 110 0 0 11QB 298713 TATUM 7 TPCP HI 1971 0 50 25 74 42 11 145 467 ~o~ 169 141 63 1C14 298713 TATUM 7 TPCP HI 1972 0 0 40 0 75 261 363 684 364 125 55 25 1Q~2 296713 TATUM 7 TPCP HI 1973 132 190 203 1€ 90 113 368 290 92 40 0 0 1532 290713 TATUM 7 TPCP HI 1974 48 0 37 62 10 176 35 982 710 ~26 25 72 2461 298713 TATUM 7 TPGP Hf 1975 14 107 15 67 175 236 398 31 219 ~8 49 57 1395 298713 TATUM 7 TPCP HI :975 o 0 11 33 03 11,4 362 114 57 92 64 0 1010 W8713 TATUM 7 TPCP HI 1977 0 36 117 194 126 . 216 115 387 122 $8 33 4 1•60 296713 TATUM 7 TPC0 HI 1978 40 68 6 208 ew 1e1 119 463 130 199 10 20-41 298713 TATUM 7 TPCP I ii 1979 159 SD 19• 30 1•6 4-42 567 3aa 206 7 10 ·111 21-42 296713 TA-:'Ui,! 7 TPCP HI iSBO 41 31 0 17 135 GO 27 156 821 52 160 18 131• 298713 TATUM 7 TPCP HI 1$81 24 15 15 11g 315 76 164 534 207 a~r 46 15 2C76 20871 ~ TATUM 7 TPCP HI 1962 48 27 35 a 2Q6 111 462 57 344 7 151 68 1622 298713 TATUM 7 TPCP HI 1983 108 62 2 29 170 62 73 56 \77 278 111 14 1142 298713 TATUM 7 TPCP HI 1984 0 0 1~ 0 598 349 179 eea 113 s1a 132 · 146 2511 296713 TATUM 7 TPCP HI 1985 30 17 1Q2 77 167 364 4g2 A~ 437 2113 36 225 23~3 296713 TATUM 7,TPCP HI 1906 0 42 11 8 3~3 419 118 165 307 216 197 228 2oe1 296713 TATUM 7 TPCP HI 11187 15 27 45 45 614 235 186 •21 362 110 33 608 2512 296713 'TATUM 7 TPCP HI 1ai:ia 0 77 0 69 J38 326 419 II~ 245 0 a 2e 101• 298713 TATUM 7 TPCP HI 1909 21 86 35 0 0 126 190 •Q~ ZIO 0 0 0 11re 298713 TATUM 7 TPCP HI 1990 58 74 45 12~ 39 0 102 195 102 12B 101 0 g75 2987' 3 TATUM 7 TPCP HI 1881 41 B 30 0 28 157 637 310 1207 20 1.22 260 2820 298713 TATUM 7 TPCP HI 1992 66 8 5 12 662 149 190 57 139 0 ee 36 1614 296713 TATUM 7 TPCP HI 1993 45 22 68 0 51 106 531 181 312 100 79 0 1495 296713 TATUM 7 TPCP HI 1994 0 0 13 47 445 80 259 17 127 92 70 0 1180 296713 TATUM 7 TPCP HI 1995 38 10 36 37 257 14A 64 240 469 0 0 0 12115 298113 TATUM 7 TPCP HI 1996 10 0 0 75 •7 279 101 442 239 0 41 D 1234 298713 TATUM 7 TPCP HI 1997 21 73 94 252 136 179 217 393 30• 130 6 157 1687 2967: 3 TATUM 7 TPCP HI 1996 0 0 127 16 12 5 126 157 115 228 37 85 908 286713 TATUM 7 TPCP HI 1909 108 0 226 10 337 695 73 4•3 20• 62 0 59 2226 296713 TATUM 7 TPCP HI 2000 0 0 107 25 0 363 150 32 10 ?.59 22• 23 1193 296713 TATUM 7 TPCP HI 2001 159 55 230 12 135 9 56 279 134 61 204 s 1342· 296713 TATUM 7 TPCP HI 2002 84 43 301 93 7 146 193 285 10-4 172 •2 139 1609 298713 TA7UM 7 TPC.0 HI 2003 0 36 11 0 148 269 2e 14 100 37 6$ 1 102 20671"3 TATUM 7 TPC" HI 2004 29 219 133 416 30 231 309 160 1074 229 402 100 3,e1 296713 TATUM 7 TPCP hi 20:15 108 1~4 37 22 327 ·17 96 319 6 160 0 2 1198 :WC7 I :J T/\';"U,\I 7 TP(~P l·'l ~:UOG Cl :w '11:2"1 8:t~ :i '11iJS ;~~, I~ ~(W 'C4~i :rn 11 liil 17(1,j ~OC1?1 :'.i TATUM '/ Tr;ic::.1 Ill ,'ll,17 11lt, '111 ~!,S,!) •~:() i~z:3 r,.s:w:1 :W,i Uf1 0 :~a 74 'lilfl'I lm.1'?'13 '!All.1:\1 -r rr,ic::1 l"':l ~:OC)IJ 0 ,1 1"1 0 'lflD t't1 :3,47 :;i~~,l:J !:it! ~!4S 4 2.15 ·1:iu;~ ,..,1,ri;,, ~1131~1 '1~0~1 ;Wi;i'l1 :.~ TATUM 7 rric.=•1 l·'I rnlll) Cl 60 6:1 s::; 2(1~ 4~~~ :~~i:~ !l'i 1m:, ~:-,~:( ;~~I 'I-Cl'I '17~!'.~ '/11li.n ·,uc,:11:i r11·1.1,11 1-:1 W11J 1~)~ii 11m ,,-m '[.~i:l tta '1tl!J :ii'G t),~, 1;~~1 (5(• ,."' :i 1'.2~1i5 Av1~ 1U~l6.,6· ;w~:,;r1,•1 TArt.lM HI :w·1\ Cl aG () (l IJ .4 nu ·t-i. ·~.O~I !~~I "( '1,4 (5~t:] lSt 1C),C1V, 1~(1~•

n~d i(!;. frrnn nd~1hLi1:ii"i11•1,0 :~te:1U,::w,s. llf ff'lrn:J,1bi~, li!1J•.~ l.';,)~1:,l c1,,tl111.:iludl,

1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 TABLE-13 HISTORICAL & PROJECTED REFINER'S ACQUISITION COST OF OIL (Domestic} ------REFINER'S REFINER'S ACQUISITION ACQUISIT[ON COST ANN. REAL COST YEAR $113ARREL %INC. PCE2005 2005 $/BARREL

1971 3.6.7 (1) 24.66 14.87 1972 3.66 25.53 14.42 1973 4.17 26.00 15.50 1974 7.18 29.70 24.17 1975 8.39 32.16 26.07 197:6 8.84 33.95 26.04 1977 9.55 36.1G 26.41 1978 10.61 38.69 27.43 1979 14.27 4212 33.88 1980 24.23 46.64 51.95 1981 34.33 50.81 67.57 1982 31.22 53.62 58.23 196:) 28.87 55.92 51.62 1984 28.53 58.04 49.16 1985 26.66 59.94 44.48 1986 14.82 61.40 24.14 1987 17.76 63.59 27.93 1988 14.74 66,12 22.29 1989 17.87 68,99 25.90 1990 22.59 72.15 31.31 1991 19.93 74.76 26.66 1992 18.63 76.05 24.41 1993 16.67 78.64 21.20 1994 15.67 80.27 19.52 1995 17.33 82.04 21.12 1996 20.77 83.83 . 24.78 1997 19.61 85.40 22.96 1998. 13.18 86-21 15.29 1999 17.90 87.00 20.43 2000 29.11 89.71! 32.42 2001 24.33 91.49 26.59 2002 24.65 92.74 · 26.58 2003 29.82 94.66 31.50 2004 38.97 . 07.12 40.13 HISTORICAL 2005 52.94 · 100.00 52.94 2006 62.62 102.72 60.96 2007 69.65 105.50 66.02 2008 98.47 109.94 90.39 2009 59.-49 (2) 109.17 54.49 2D10 77.96 111.11 70.16 2011 100.74 11:3 ..;;a 68.69 2012 103.79 3.03% 116.80 88.86 2013 106.58 2.69% 120.19· 88.67 2014 110.64 3.81% 123.75 89.40 PROJECTED 2015 114.51 3.50% 127.48 89.83 2016 118.19 3.21% \31.38 89.96 2017 121.67 2.94% 135.46 B9.82 2018 124.88 2:64% 139.74 89.37 2019 127.98 2.48% 144.23 88.73 2020 130.88 2.26% 148.93 87.88 2021 133.54 2.03% 153.86 86.79 2022 136.03 1.86% 159,03 85,54 · 2023 138.27 1.65% 164.46 84.08 2024 140.38 1.53% 170.15 8251 2025 14230 1.36% 176.12 80.80 2026 144.05 1.23% 182.32 79.01 2027 145.59 1.07% 188.75 7-7.13 W?H '14I:U:l!l /J,,~)0%h ·: ~l!i.4~~ lfa.!I :,w~:i.n 14!].01'1 0.. 7tl')•'~ ')/")?'':Y7' 7:1,-113 :m:m 14!l.O:! 0.55% 209.b!3 n.n 21J,l'I ·i.,m.n 0, fiOt½~ 2rr.rn, <"sl.GD 203~?. 1511:3'/' 0.40% 22.4.a3 ~~i:tm~ :,:O:l,l ·11,1:i1e o.2€~ 1x, ~rn;~.!Xl t.'4 ..7:! ::10:14 1ii2..2.7 ·f .. D0 1:>'i.1 24·1.~:..c3 13'.U1 t~OJ.S 1:'.)3.79 t.00% 2:~0.00 6~.52 :?.D~JB '155 .. :33 l.i)1:Ji¾1 2.bD.0'.2. 5B.U7 :m:u 150.. 1'1::; ·f.00'1/i:, ~!l,~{tJ"/ :i\1H .. 4f;, 2oag ~SnAt> -~.00 1·:10 2.?a.Ofo 50.9~1 ~!rr::~i;~ 100.04 -~ .. 00:~·~i 2muo 5S..55 2040 WI.Ci~ ~ .. 00%w .2mt::;n 54.. ·ffi :>!:141 1 fi~l,?i:i 1.011% :1!1-!l.'.17 t~:?..'/H 204:~~ ·1f"U19 ·u:-0% ~20_,1,,1 Ei·!AG

NOTE; (I) EIN F'ETHOl:.EUM MAHJ,:i::TING MONTHLY, .lune, ::>o·f? (;!) PHO,,)FC'.TFn PHICr:s Ai'{[ rf(OM UA/ANNUI\L 01..111..00K 201 ·1 TABLE-14 HISTORICAL & PROJEC1EO PRlCE OF NATURAL GAS (Wellhead)

. WELLHEAD ANN. REAL COST YEAR . ACTUAL COSl % INC. PCE2005 2005 $/MMBTU

1971 0.130 (1} 24.66 0.53 1972 0.125 25.53 0.49 1973 0.220 26.90 0.82 1974 0.300 29.70 1.01 1975 •.440 32.18 1.37 1976 0.580 33.95 1.71 1977 0.790 36,16 2.19 1978 0.910 38.69 2.35 ·1979 1.180 42.12 2.80 1960 1.590 46.64 3.41 1981 1.980 50.81 3.90 1982 2.460 53.62 4.59 1983 2.590 55.92 4.63 1984 2.660 58.04 4.58 1985 2.510 59.94 4.19 1986 1.840 61.40 3.16 1987 1.670 1)3,59 2.63 1988 1.690 66.12. 256 1989 1.69• 68.99 2.45 1990 1.710 72.15 2.37 1991 1.640 74.75 2.19 1992 1.740 76.95 226 1993 2..040 78.64 2.59 1994 1.850 80.27 2.30 1995 1.550 82.04 1.89 1096 2.170 63.83 2.59 '1997 2.32 85.40 2.72 1998 1.94 86.21 2.25 1999 2.19 87.60 2.50 2000 3.68 69.78 4.10 20•1 4.00 Si.49 4.37 2002 2.95 92.74 3.18 . 2003 · ·4.88 94.66 5.16. 2004 5.46· 97.12 5.62 HlSTORlCAL ,2Q05 7.33 100.00 7.33.. 2006 6.W 102.72 a.22 2007 6.26 105.50 5.92 2008. 7.97 108.M 7.32 2009 3.67 {2) 109.17 3.36 2010 4.48 111.11 4.03 · 2011 3.95 113.51! 3.48 2012 3.67 0% 116.80 3.14 PROJECTED 2013 3.71 1.13% 120.19 3.09 2014 3.75 1.05% 123.75 3.03 2015 3.79 1.03% 127.48 2.97 2016 3.83 1.03% 131.38 2.91 20:17 3.87 1.06% · 135.46 2.86 2018 3.91 1.07% 139.74 2.80 2(119 3.95 1.06% 144.23 2.74 2020 -3.lie 1.05% 148.93 2.6B 2021 4.04 1.07"/2' 153.86 2.62 2022 4.08 1.09% 159.03 2.57 2023 4.12 1.07% 164.46 2.51 2024 4.17 1.06% 170.15 2..45 2025 4.21 1.05% 176.12 2.39 2026 4.26 i.07% 182.32 2.33 2027 4.30 1.06% 166.75 2.28 2028 4.34 1.03% 1B5 .. 43 2.22 ;?.029 4.:m 1.D2% 2D2.::i7 ~:i .. 17 :m:• o 4A,l ·!.1:14% 20:} .. ~'.·fa ;;i:t2 2oa·i 4..4,l 1.01% 2.17.fK; ;/,1:11:l ;>(1.:i:?. ~u)::1 '1,07%1, 22,,i!.83 2.0·1 ;,o:J:l 4 .. 58 ·IJJl'Y, 2~12.1;icr Lff/ :2034 4,1'::! 'I.II/'% ~;~••1'~. 'lt:i ·un. :w:~s 4.l'ii.! -~.07%i :?.I:)0.00 1.Bl 2mw 41:l ·J..()/% '.lSH.0:2 1.ll:! 20::lI 4.7e '1.(J'/% ~'.!·iE!.:~7 '1.78 2036 4.8:l '"l.ntYc, 2"i'B.OC, '1..74 :~.mm 4.lm '1.07% :m110 1.G9 ~;~{MO 4,\1:'I ·tJY/% :.~:.18.GO t.rn·j :m11 4.i.l!l HI/% :1092.l Ul'! 20'-!2 6.cJ/4 I.ff/% ::(:tl4-4 ·t.57 ····--········------~- fH)TI':: ('l) tlAll.. lRAL G/,S MONn ILY, JUii'= 2012. (:!) Fl,OJl.::CTUJ PJ-,!Cl::8 AHi:: HZOM EINANNUAL OUTI.OOK ;m1 ::: B, wrrc 1=i:1:'111ci::1I model TABLE ·-16 :..EA COUNTY ELECTRIC COOPERATIVE · PROJECTED MWH SALES BY CLASS ANN. TOTAL TOTAL TOTAL S. COMM ANN. TOTAL L. COMM ANN. TOTI\L OTHERS RES ANN. TOTAL IRR, ANN. CONS. USAGE CONS. USAGE CONS. !,;SAGE CONS. USAGE CONS USAGE CONS, KWH, MWl-l MWH 111WH KWH MWH # YEAR KWH MWH KWH MWH ··--- ..;...... 12,987 15,220 ------·- ---- ___ 111,641 1509,976 20 16,122 322,440 10 1,298,673 12,438 ~00,798 2,518 101,619 255,877 4,568 2011 8,104 1513,032 20 1!l,500 330,000 10 1,300,000 13,000 15,294 12,778 103,.999 2,636 98,000 241,110 4,587 111,836 2012 8,138 21 16,600 346,500 10 1,305,000 13,05() 15,366 13,062 106,737 2,ess 80,000 ·230,220 4,606 111,aee 515,698 2013 8,171 617,968 21 16,600 348,000 10 1,310,000 13,100 15,436 8,203 13,314 '109,207 2,678 81,105 234,869 4,824 112,027 2014 518,861 21 18,700 350,700 10 1,310,000 13,100 15,502 B,233 13,614 111,256 2,598 92,210 239,662 4,641 112,024 2015 521,366 21 16,800 362,800 10 1,310,000 13,100 15,567 8,261 13,e43 112,711 2,618 93,315 244,:100 4,657 111,959 2016 1522,628 21 16,900 354,900 10 1,310,000 13,100 15,630 8,288 13,763 114,086 2,638 84,420 248,080 4,672 111,834 2017 523;343 21 17,000 367,000 10 1,310,000 13,100 15,692 8,318 13,829 115,000 2,858 95,025 263,905 4,687 111,662 2018 21 17,100 369,100 10 1,310,000 13,100 15,751 116,835 2,676 98,630 268,776 4,702 111,414 523,818 2019 '8,341 14,007 17,200 361,200 10 1,310,000 13,100 16,810 2,age 97,735 263,689 -4,715 · 111,123 623,977 21 2020 8,365 14,185 118,666 10 1,310,000 13,100 15,866 98,640 288,647 4,728 110,780 ~23,814 21 17,300 363,300 ·2021 8,389 14,363 120,489 2,718 10 1,310;000 13,100 15,921 273,649 4,741 110,389 523,379 21 17,400 365,400 2022 8,,411 14,541 122,312 2,738 99,945 13,100 15,975 4,753 109,952 522,638 · 21 17,500 367,500 10 1,310,000 2023 8,433 14,ilB 124,126 2,758 1DM50 278,696 1,310,000 13,100 16,028 283,787 4,765 109,489 1521,632' 21 17,BOO 368,800 10 2024 8,454 14,897 125,93B 2,778 1C2,155 10 1,310,000 13,100 16,079 103,280 288,921 4,778 108,842 e20,s53 21 17,700 371,700 2025 8,474 15,075 127,746 2,7fi8 10 1,310,000 13,1D0 16,129 284,101 4,787 108,376 518,827 21 17,800 373,800 2026 8,493 16,253 129.~49 2,818 104,385 1,310,000 13,100 1e,se4 320,658 4,835 106,026 807,879 21 17,900 375,900 10 2031 8,~79 16,143 138,485 2,918 109,89Q 13,100 16,578 4,877 101,039 482,766 21 18,000 378,000 10 1,310,000 203G 8,652 17,033 147,373 3,018 116,416 348,322 16,784 06,600 474,810 21 18,100 380,100 10 1,310,000 1::i,100 2041 8,720 17,923 166,292 3,118 120,Q40 371,091 4,~15 ------·· ------6644 ANN. iNC 21 183 1850 20.,_ ~ 844 4040 12 -501 -1172 0 66 1922 0 378 4 52 -··--· ~~~;-······ 7.~;~~;al anuual usag;;,pt;;g after reaching 13829 KWh ln 2~;~-;~;~~~; lo the ;del. :rha other ;~~~i-;uh out oil price was reaching t;~-;-~;;K~h (very high -not possible) In 2040 • ---- It was decided fo use nrst model until 2018 end !hen ncallitlng It by 176 KWh per year to be reallstic. 2. Irrigation model showed alight decline In usag, but c11pped at 82000 KWh (2013) for medium preclpltatlon and then escalated as per regression ar.a,ysis. 3. Small commercial usage shewed fiat with sllght decline a!!er 2026. · TABLE" 16.dry year LEA COUNTY ELECTRIC COOPERATIVE PROJECTED MWH SALES BY CLASS .,.,,._., __ ., ...... _...... ~.., ______,,..,p_ ..... ~~-~--.. ~ ..~ ------,-- -- OTHERS ANN. TOTAL TOTAL RES ANN. TOTAL IRR. ANN. TOTAL S.COMM ANN. TOTAL L. COMM ANN, TOTAL CONS. USAGE CONS. COMS. USAGE CONS USAGE CONS. USAGE CONS. USAGE MWH KWH MWH # YEAR KWH MWH KWH MWH KWH MINH MWH ~~~----, ~------.. -~ .. ~ .. 509,876' 20 16,122 322,440 10 1,298,673 12,987 15,220 2011 6,104 12,438 100,798 2,518 101,619 255,877 4,568 111,641 16,600 330,000 10 1,300,000 13,000 15,284 2012 8,138 12,778 103,989 2,538 102,000 258,876 4,687 111,836 613,032 20 16,600 346,500 10 1,305,000 13,0150 15,366 2013 8,171 13,062 108,737 2,568 97,000 248,120 . 4,606 111,865 !!1!!,698 21 16,600 348,600 10 1,310,000 13,100 111,435 2014 8,203 13,314 108,207 2,578 98,106 252,915 4,624 112,027 617,968 21 3eo,100 10 1,310,000 13,100 18,502 2015 8,233 13,5~4 1111286 2,()98 911,210 207,7,4~ 4,841 112,024 SHl,861 21 16,700 10 1,310,000 13,100 113,587 2016 0,261 13,643 112,711 2,818 100,315 282,825 4,657 111,ll59 521,366 21. 1e,eoo 362,600 354,000 10 1,310,000 13,100 16,630 2017 B,28Q 13,'/83 114,086 2,638 101,420 267,546 4,872 111,834 522,528 21 18,900 357,000 10 1,310,000 13,100 \5,692 2C18 8,318 13,829 116,000 2,658 102,625 272,611 4,1187 · 111,662 523,343 21 17,000 17,100 360,100 10 1,310,000 13,100 16,751 2019 6,341 14,007 116,835 2,678 103,830 277,521 4,702 111,414 523,818 21 381,200 10 1,310,000 13,100 1e,a10 2020 6,385 14,185 118,686 2,698 104,736 28,2,117~ 4,715 111,123 1123,877 21 17,200 17,300 363,300 10 1,310,000 13,100 15,666 2021 8,389 14,363 120,489 2,718, 105,640 287,673 4,728 110,780 · 6211,,814 21 365,-400 10 1,310,000 13,100 15,Q21 2022 8,411 14,541 122,3i2 2,738 106,945 202,816 4,741 110,369. 623,379 21 17,400 367,500 10 1,310,000 13,100 15,975 2C23 6,433 14,719 124,1211 2,758 108,060 298,002 4,753 109,962 522,638 21 17,500 3611,800 10 1,310,000 13,100 16,028 2024 8,454 14,897 125,839 2,778 1og,15s 303,233 4,785 108,458 521,632 21 17,600 371,700 10 1,310,000 13,100 18,079 2025 6,474 1M75 127,746 2,788 110,2B0 308,507 4,778 1oe,Q42 520,363 21 17,700 1,310,000 13,100 16,129 2026 6,493 15,253 120,549 2,818 111,385 313,827 4,787 108,376 518,B27 21 17,B00 373,800 10 1,310,000 13,100 16,384 203~ 6,579 16,143 138,495 2,918 11!!,890 :141,08~ 4,83~ 105,026 507,878 21 17,900 376,900 10 10 1,310,000 13,100 16,578 2036 8,652 17,033 147,373 . 3,016 122,415 3sg,44a 4,877 101,031, 492,766 21 1,8,000 378,000 10 1,310,000 13,100 16,784 2041 8,720 17,923 1M,282 3,116 127,940 3$6,917 4,915 !le,eoo ' 474,610 21 18,100 380,100 "----~-~-ww------w-»mmm_.,..,.,.,,.,,~ _, _____ 1922 378 4 52 7371 ANN. ,NC 21 183 1D50 20 877 4768 1,2 -501 -1172 0 66 a -••-- _.,., .. --~~Mm ...... -- ...... ___ ,.,,, ' _,. .. ,. .... _,.,_.,,..,.. ,._M ____,_.,.,_,...... • Note; 1. Resictential anuual usage droplng after reaoh:n11 13629 KWh In 2016 according to lhe model. The other modal with out oil price was reaching to 62684KWh (very high ,not possible) ln 2040 . It was decided to use flr6t model 1.1nm 201B and than esoal11!lng it by 178 KWh par year to be realistic. 2. Irrigation model showed s!ight dccllne iri usage but capped at 82000 KWh (2013) for medium preolpilatlon and th~n escalated as per regression analysis. 3. Small commercial usage 11howed tlaj with slight deciine after 2026. 4, Impact of dry & wet year on annual irrig11lion usage Is +I- 7000KWh/12000KWl1 repeclively. TABLE -16.wet year LEA COUNTY ELECTRIC COOPERATIVE PROJECTED MWH SALES BY CLASS .... -... -~~~~.. --~------~------~,.-~---~.,w ANN. TOTAL TOTAL ------· TOTAL S.COMM ANN. TOTAL L.COMM ANN. TOTAL OTHERS RES ANN. TOTAL IRR. ANN. USAGE CONS. SALES CONS. USAGE CONS. USAGE CONS. CONS. USAGE CONS USAGE # MWH KWH MWH MWH MWH .KWH MWH i, YEAR KWH MWH KWH MWH ---- ~-~-.,,.WW~ ----w~~- ..... 16,122 322,440 10 1,298,673 12,987 16,220 101,619 265,877 4,668 111,641 .509,976 20 2011 B,104 12,438 100,798 2,618 10 1,300,000 13,000 15,294 ·a3,0CO 210,664 4,587 111,836 613,032 20 18,500 330,000 2012 8,138 12,779 103,999 2,638 10 1,306,000 13,050 15,366 199,524 4,606 111,985 111e,ees 21 10,500 340,600 2013 8,171 13,062 100,737 2,558 78,000 1,310,000 13,100 15,435 4,624 112,027 517,968 21 16,600 348',800 10 2014 8,203 13,314 109,207 2,578 79,105 203,93~ 15,502 4,641 112,024 619,881 21 16,700 350,700 10 1,310,000 13,100 2015 8,233 13,514 111,258 2,598 . 80,210 208,386 111,859. 621,388 21 16,800 352,800 10 1,310,000 13,100 15,567 2016 8,261 13,643 112,711 2,618 81,316 212,863 4,e57 111,834 1522,528 21 16,900 384,900 10 1.~10.000 13,100 15,630 2017 8,289 13,76~ 114,086 2,638 82,420 217,424 4,672 82:J,343 21 17,000 367,000 10 1,.310,000 13,100 15,692 8,316 13,829 115,000 2,668 83,626 222,009 4,887 111,652 2018 21 17,100 359,100 10 1,310,000 13,100 15,751 14,007 1~0.835 2,678 84,630 226,639 4,702 111,414 523,818 2019 8,341 17,200 361,200 10 1,310,000 13,100 15,810 118,886 2,688 85,735 231,313 4,715 111,123 623,977 21 2020 8,365 14,185 17,300 363,300 10 1,310,000 13,100 15,866 2,718 88,840 238,031 4,728 110,780 a23;e1-1 21 2021 8,389 14,363 120,-489 366,400 10 1,310,000 13,100 16,921 87,ll45 240,793 4,741 110,36!(/ 623,379 21 17,400 2022 8,411 14,641 122,312 2,738 10 1,3'IO,000 13,100 16,976 245,600 4,763 109,~/52 522,638 21 17,600 367,600 2023 B,433 14,718 124,126 2,758 89,050 1,310,000 13;100 16,028 4,766 100,468 621,632 21 17,800 389,600 10 Z024 8,464 1.4,897 125,Q39 2,776 90,156 250,4ei1 16,079 4,776 108,942 620,3153 21 17,700 371,700 10 113101000 13,100 2025 8,474 15,076 127,746 2,798 91,250 259,345 108,376 516,8~7 21 17,800 373,800 10 . 1,310,000 13,100 16,129 2026 8,493 15,253 129,540 2,818, n,365 260,285 4,787 507,879 21 ·11,eoo 37~,800 10 1,310,000 13,100 16,364 16,143 138,495 2,918 97,890 280,643 4,836 105,026 2031 8,679 21 18,000 378,000 10 1,310,000 13,100 16,578 17,033 147,373 3,016 103,418 312,100 4,Bi7 101,039 . 4si,1se 2036 8,852 21 18,100 380,100 10 1,310,000 13,100 _., 16,784 156,282 3,116 108,9.fO 339,675 4,'11!5 96,600 474,610. _____ 2041 8,720 17,823 .. ______,. .,,,_,.,. __ ------~.. ~q ..~~ ...... ~--~~~ ------·-.. 378 4 52 5397 2793 12 -501 -1172 0 66 1922 0 ANN. INC 2~ 183 1850 20 244 ___...... ,__w~- .,_, ---w-•••------· 1, Residential anuual usage draping after reaching 13829 KWh In 2018 according ta the model. The other model with out oil price was reaching to 62684KWh (very high -not possible) in 2040. Note: It was decided to use first model until 2018 Q!ld then e•calating It by 178 KWh per year to· Ile realistic. _· 2. Irrigation model showed sll~ht dacline in usage but capped at 82000 KWh (2013) ror medium precipitation and then escalated as per regression analysis. :,, Small commercial usage ahowad !tat with ellght declln& after 202!>, 4. Impact of dry & wet year on annual Irrigation u.age Is+/· 7000KWhl12000KWh repec!ively. Based on Table-7. TABLE· 15.hl~h J.EA COUNTY ELECTRIC COOPERATIVE PROJECTED MWH SALES BY CLASS .. _...... ~~ .. -- ...... ----- TOTAL TOTAL -~-~~~-~ .. ~-~-~-ww- --e~- ANN. TOTAL OTHERS ANN. .. -- ~~---· TOTAL S.COMM ANN .•. roTAL L. COMM SALES RES ANN. TOTAL IRR. ANN. USAGE CONS. USAGE CONS. CONS. USAGE , CONS. MWH CONS. USAGE CONS USAGE MWH M\IVH KWH MWH # KWH MWH KWH MWH YEAR KWH MWH _...... ,. .. -_ ...... - ___ ...... _.. 1,298,673 12,ga7 15,220 1,202,077 ---- -.. ----~~~ 4,668 111,641' 60\'l,976 20 16,122 322,440 10 8,104 12.438 100,798 2,518 101,619 266,877 330,000 10 1,300,000 13,000 15,318 1,202,326 2011 4,596, 111,838 514,018 20 16,500 8,1~4 12,77B 104,198 2,538 85,000 241,110 10 1,3M,OOO 13,050 16,417 1,216,800 2012 4,IS:1.4 111,005 517,785 21 '16,700 350,700 13,062 107,166 2,568 :;o,ooo 230,220 1,310,000 13,100 15,616 1,2J3,970 2013 8,204 112,027 621,211 21 16,800 364,900 10 100,891 2,676 91,105 234,869 . 4,653 13,100 15,614 1,248,336 2014 8,254 13,314 624,3GB 21 17,100 369,100 10 1,310,000 2,598 92,210 239,562,' 4,681 112,02-4' 13,100 16,712 1,2(,1,878 20',5 8,304 13,514 112,218 .527,205 21 17,300 3Cl3,300 10 1,310,000 83,316 244,29ij 4,709 111,Q58 · 16,810 1,276,',16 2016 8,354 · .13,643 113,874 2,618 1529,760 21 '17,800 3e1,soo 10 1,310,000 13,100 2,638 94,420 249,080 4,737 111,8~ 13,100 15,1108 1,2B7,671 2017 8,404 13,783 116,687 532,052 21 17,700 371,700 10 1,310,000 :z,e5B Q6,526 283,005 •4.765 111,652 13,100 16,008 1,300,963 2018 8,454 13,828 116,914 aa-4,059 21 17,900 . 376,900 10 1,310,000 96,830 258,77~ 4,793 111,414 18,105 1,31-4,025 2019 8,504 14,007 119,119 2,878 21 18,100 380,100 10 1,310,000 13,1'00 97,736 263,889 4,822 111,123 5315,7Q4 1,326,898 2020 8,554 14,166 121,342 2,600 18,300 384,300 10 1,310,000 13,100 18,203 288,647 -4,8150 110,780 537,266 21 8,804 14,363 123,683 2,718 98,!140 10 1,310,000 13,100 16,301 1,339,673 2021 4,87B 110,389' 53M82 21 18,600 386,600 14,541 125,B42 2,738 99,945 273,649 1,310,000 13,100 16,399 1,352,059 2022 8,654 109,952 838,446 21 18,700 392,700 10 2,768 101,050 278,886 4,908 13,100 18,497 1,364,:359 2023 8,704 14,719 128,118 21 18,900 396,900 10 1,310,000 102,155 283.787 4,Q34 109,469 640,1eo 1fl,5~S ',,s1a,4n 2024 8,754 14,897 130,412 2,778 21 19,100 401,100 10 1,310,000 13,100 103,260 288,821 4,863 106,042 540,833 18,694 1,388,430 2025 8,804 15,075 132,72~ 2,788 19,300 40~,300 10 1,310,000 13,100 294,101 4,981 108,37B 640,B76 21 16,253 135,054 2,818 104,365 10 1,310,000 13,100 17,185 1,446,988 2026 6,854 105,026 838,959 21 20,300 426,300 146,870 2,918 108,890 320,659 6,132 13,100 17,676 1,500,791 2031 9,104 16,143 . 532,737 21 21,300 447,300 10 1,310,000 3,018 116,4111 346,322 6,273 101,039 13,100 18,167 1,553,673 2036 9,364 17,033 169,331 21 22,300 468,300 10 1,310,000 120,940 377,091 8,414 98,600 622,945 2041 Q,604 17,823 172,137 3,118 117i7 ~--~-.. ~~--- .. -~ .... ~---·- ~-.... ·--- .. ~~--_,,.,.,._ .. ---~----- :_50•1 206 4862 0 378 .4 98 -- 644 4040 28 432 0 ·ANN.INC 50 163 2378 20 ------•--"""' ~-m,..,.,.,,.mm"'"""' 1. Residential a:suual usa11e droplng 11fter rei:iohln1113629 KWh In 2018 eooordlng to the model. The other model with out oil price was reaching to 62664KWh (very high -not possible) in 2040. Note: It was decided to use first model untll 2018 and then e,calating it by 178 KWh per ye'iJl:to be realistic. 2. Irrigation model showed sllght decline In uaAge but capped at 82000 KWh (2013) for medllZ!l precipitation and 1hen escalated as per regression analysis. 3. Small ccmmeri:lal usage ahowed flat with alight decline after 2026. Based on Table•7,high. TABLE • 15.hi~h.dry year LEA COUNTY ELECTRIC COOPERATIVE PROJECTED MWH SALES BY CLASS

~--- ~-~~~---"'-- --- TOTAL OTHERS ANN. TOTAi. TOTAL RC:S ANN. TOTAL !RR. ANN. TOTAL S. COMM ANN. TOTAi. L. COMM ANN. CONS, USAGE CONS. CONS. USAGE CONS USAGE CONS. USAGE CONS. USAGE KWH MWH # YEAR KWH MWH KWH MWH KWH MWH MWH MVI/H ------~~~------~~-- 509,978 1e:122 322,440 10 1,298,873 12,987 15,220 2011 8,104 12,438 100,798 2,518 101,619 255,877 4,1586 111,841 20 Hl,600 330,000 10 1,300,000 13,000 15,318 2012 8,154 12,779 104,196 2,538 102,000 258,876 4,598 · 111,838 1514,018 2.0 16,700 360,700 10 1,305,000 1:,,060 15,417 2013 8,204 13,082 107,165 2,668 Q7,000 248,128 4,624 111,985 617,785 21 21 16,900 354,900 10 1,310,000 13,100 15,516 2014 8,264 13,314 109,891' 2,1578 BB,105 252,915 4,8153 112,027 521,211 17,100 35Q,100 10 1,310,000 13,100 16,814 2015 8,304 13,514 112,218 2,598 99,210 267,748 4,!l81 112,024 524,356 21 17,300 363,300 10 1,310,000 13,100 16,712 2016 8,354 13,643 113,974 2,618 100,,115 282,826 4,709 111,Bl'iB 627,205 21 367;800 10 1,310,000 13,100 15,810 2017 8,404 13,763 115,667 2,638 101,420 267,548 4,737 111,834 628,769 21 17,500 17,700 371,700 10 1,310,000 13,100 16,908 2018 e,454 13,829 116,914 2,esa 102,526 272,611 4,765 111,662 532,062 21 17,900 375,900 10 1,310,COO 13,100 16,006 2019 8,504 14,007 119,119 2,878 103,830 277,521 4,793 111,414 634,059 21 18,100 380,100 10 1,310,COO 13,100 16,105 2020 8,564 1-4,18.5 121,342 2,698 104,735 282,5715 4,822 111,123 5:16.,:l'G>4,641 126,842 2,738 106,945 292,816 4,878 110,388 18,700 392,700 10 1,310,000 13,100 16,399 2023 8,704 14,719 128,118 2,7!18 108,050 298,002 4,906 109,952 639,4-45 21 18,000 390,900 10 1,310,000 13,100 1~,-497 2024 8,764 14;as1 130,412 2,778 108,155 303,233 4,934 109,468 540,160 21 401,100 10 1,310,000 13,100 18,598 2025 8,804 15,075 132,724 2,788 110,280 508,507 4,963 108,942 640,633 21 19,100 10,:,00 406,300 10 1,310,000 13,100 16,694 2026 8,854 15,253 135,054 2,816 111,385 313,827 4,901 108,376 640,875 21 20,300 42il,300 10 1,310,000 13,100 17,186 2031 B,104 16,143 146,970 2,018 118,8~0 341,086 5,132 105,026 638,ll5Q 21 21,300 447,30 10 1,310,000 13,100 17,878 2036 9,354 17,033 109,331 3,018 122,415 389,446 5,273 · 101,039 63.2,737 21 • 468,300 10 1,310,000 13,100 18,167 2041 9,604 17,923 172,137 3,118 127,940 ~98,917 5,414 88,600 li.22,~45 21 22,300 ___ ., __ .....,.,,. ______,. 28 -501 432 0 206. 4862 0 378 4 98 12444 ANN. INC 50 183 2378 20 877 4768 ~__, ______.,.,_ ...... ~~ _., ...... -.. ~ .. -~~- ----~--~"""' .,., __ .... _...... - Note: 1, Residential anuual usage droping after reachlr-Q 13629 KWh In 2018 according 10 the model. The other model wlth out oil price was reaching to 62684KWh (very high -not possible) In 2040. II was decided to use first model until 2016 snd then escal•ting It by 176 KWh per year to be reallstlc. 2. Irrigation model showed alight dec:ine in u,i.ga but capped 11! 82000 KWh (2013) for me~Jijm preclpltallan and then escalated as per regression analysis. 3. Small commercial usage ~hawed fiat with 11ight decline after 2026, 4. Impact of dry a wet y.. r on annual lrrlgalion usage Is+/· 7000KWh/12000K'Ml repectlvely. Bao,.d on Table-7.high TABLE-15.IOW LEA COUNTY ELECTR'.IC COOPERATIVE PROJECTED MWH SALES BY CLASS __,..,_w_ w.,.,.,.___,,,.,,,.,m,._ WW~------TOTAL L. GOMM ANN. TOTAL OTHERS ANN. TOTAL TOTAL TOTAL IRR. ANN. TOTAL $.COMM ANN. CONS. RES ANN. • USAGE CONS. USAGE CONS, USAGE CONS, USAGE CONS USAGE CONS. MWH # KWH MWH MWH MWH KWH YEAI~ KWH fl,'.WH KWH MWH -----""~ .. ~ .... ~--.. ~~- •--- -w~~-~----- 20 16,122 322,440 10 1,298,673 12,987 15,220 2,618 101,619 255,877 4,568 111.641 509,976 2011 8,104 12,438 100,798 16,000 320,000 10 1,300,000 13,000 15,265 2,038 96,000 , 241,110 4.~74 111,636 611,496 20 2012 8,114 12,779 103,687 16,200 324,000 10 1,305,000 13,050 16,291 B0,000 230,220 4,579 111,965 612,717 20 2813 8,124 13,062 106,120 2,658 18,4CO 328,000 10 1,310,000 13,100 15,327 91,105 234,868 4,565 112,027 513,~~3 20 2014 e,134 13,314 1oa,2g3 2,678 1a,soo 330,000 10 1,310,000 13,100 15,363 92,210 239,562 4,581 112,024 614,252 20 2015 8,144 13,6'14 110,055 2,588 33j,OOO 10 1,310,000 13,100 16,398 244,299 4,596 111,959 ll14,ll84 20 16,550 2016 8,154 13,643 111,246 2,616 93,315 332,000 10 1,310,000 13,100 15,434 249,080 '4,602 111,834 M-4,6,40 20 18,SOP 2017 8,164 13,763 112,384 2,838 84,"420 ,333,000 10 1,310,000 13,100 15,469 253,805 4,807 111,652 614,4~0 20 1e,B50 2018 8,174 13,B29 113,042 2,8~8 85,525 10 1,310,000 13,100 15,505 4,613 111,414 513,963 20 16,700 33-4,000 2019 8,184 14,007 114,637 2,678 98,6~0 258,775 1,310,000 13,100 15,641 4,819 111,123 513,246, 20 16,750 335,000 10 2020 8,194 14,185 116,235 2,698 97,735 26:5,680 1,310,000 13,100 15,676 110,780 1112,288 20 16,600 338,000 10 14,363 117,838 2,718 ~B,840 288,647 4,824 15,612 2021 8,204 511,103 20 16,B50 337,000 ·10 1,S10,COO 13,100 118,443 2,738 99,845 273.649 4,630 110,388 2022 8,214 14,541 20 16,900 338,000 10 1,310,COO 13,100 15,648 121,053 2,76a 101,050 278,888 -4,836 109,952 509,~97 2023 8,224 14,719 20 16,960 338,000 10 1,310,000 13,1D0 15,683 2,778 102,155 283,787 4,041 109,-469 608,074 2024 6,234 14,897 122,666 17,000 340,000 10 1,310,000 13,100 16,719 103,280 288,921 4,847 100,842 50~,245 20 2025 8,244 15,076 124,282 2,798 17,050 341,000 10 1,310,000 13,100 16,755 104,386 294,101 4,663 108,378 004,22.3 20 2026 8,2M 15,263 126,Q02 2,816 17,100 342,000 10 1,310,000 13,100 15,93$ 109,690 320,069 -4,681 100,02'5 481,699 20 2031 8,304 Hl,143 134,06:5 2,818 343,000 10 1,310,000 13,100 16,111 348,322 4,709 101,039 475,784 ,20 17,160 2036 8,354 17,033 142,287 3,018 115,415 10 1,310,000 13,100 16,289 4,737 ee,_eoo 467,804 20 17,200 344,000 2041 8,404 17,923 100,629 3,118 120,~40 377,081 ___ .. _._,._ ----· 0 378 . 4 S6 4040 6 -601 -174.6 0 36 719 ANN. INC 10 183 1661 2D 644 ____, ___ ----•"~m~"-""" .....,..., ______...... ~~ .. -~~---~- 1. Residential anuual useQe draping after re11chlng 13629 KWh in 2018 according lo the model. The other model v~lh out oil price was reaching tp 62664KWh (very high -not possible) in 2040 . Ncle: It was decided to uas flrat modal until 2018 and 1hen eac11l11tlng It by 178 KWh per yur to be realistic. 2, lrrlgatlon model showed alight decline in uaage but capped at 82000 KWh (2013) for medium precipitation and then escalated as par regresslon analysis. 3. small commercial usage ahcwed flat with alight decline after 2026. Based an Table-7.low, TABLE - 15.low.wet yoar Li';A COUN1YELECTRIC COOPERATIVE PROJECTED MWH SALES BY CLASS ~~~~~~.,---~,... .-~m_. ___ RES ANN. TO;AL lRR. ANN. TOTAL. S. COMM ANN. TO"fAL !..COMM ANN, TOTAL OTHERS ANN. TOTAL TOTAL CONS. USAGE CONS USAGE . C<;JNS. USAGE CONS. USAGE CONS. USAGE CONS. YEAR KWH MWH KWH MWH KWH MWH MWH MWH. KWH W.WH # .. ~--~--- _ .... --~--.. ------2011 8,104 12,438 100,788 2,518 101,619 255,877 4,668 111,841 509,978 20 16,122 322,'440 10 1..298,873 12,887 15,220 2012 8,114 12,779 103,687 2,638 83,000 210,854 4,574 111,838 611,.-496 20 16,000 320,000 10 1,300,000 13,000 15,256 2J13 . 8,124 13,oe2 106,120 2,558 78,000 199,624 4,679 111,966 512,717 20 16,200 324,000 10 1,305,000 13,050 15,291 2014 8,134 13,314 108,2S3 2,578 79,100 203,933 4,656 112,027 513,633 20 1e,4oa 326,000 10 1,310,000 13,100 15,327 2015 8,144 13,514 110,055 2,598 80,210 :i.oe,see 4,591 112,024 514,252 20 16,600 330,000 · 10 1,310,000 13,100 15,363 2016 8,154 13,643 111,245 2,618 81,316 212,683 4,seis 111,969 614,584 20 16,560 331,000 10 1,310,000 13,100 15,398 . 2.017 8,164 13,763 112,364 2,638 82,420 217,424 4,802 111,834 614,840 zo 1e,eoo 332,000 10 1,310,0CO 13,100 . 16,434 2018 8,174 13,829 113,042 2,688 _83,525 222,000 4,607 111,852 · . 151-4,430 20 16,660 333,000 10 1,310,000 13,100 1 e.4e0 2019 8,184 14,007 114,837 2,678 84,630 226,639 4,613 111,414 61~,983 20 16,700 334,000 10 1,310,000 13,100 15,605 2020 8,194 14,185 116,238 2,eee 66,735 231,313 4,91!1 1.11,123 513,245 20 16,750 335,000 10 1,310,000 13,100 16,541 2021 8,204 14,363 117,836 2,718 86,840 238,031 4,824 110,780 512,288 20 16,800 s3e,ooo 10 1,310,000 13,100 15,578 2022 8,214 14,541 119,443 2,7~8 87,945 240,793 4,830 110,368 511,103 20 1e,eso 337,000 10 1,310,000 13,100 15,6",2 2023 8,224 14,719 '.21,053 2,-758 89,0~0 246,800 4,636 109,952 509,697 20 16,900. 338,000 10 1,310,000 , 13,100 16,648 2024 B,234 14,897 122,666 2,778 Q0,165 250,451 4,641 109,469 508,074 20 16,950 339,000 10 1,310,000 13,100 15,683 2025 8,244 15,075 124,282 2,7118 91,260 23M4B 4,647 108,942 608,246 20 17,000 M0,000 10 1,310,000 13,100 15,719 2026 8,264 15,253 126,Q02 2,818 82,386 260,285 4,853 ·108,376 504,223 20 17,060 341,0QO 10 1,310,000 13,100 15,765

2031 8,304 16,143 1341D55 2,918 87,800 285,843 4,581 10!!,026 401,598 20 17,100 342,000 10 1,310,000 13,100 16,033 2036 6,364 17.033 142,297 3,018 103,415 312,106 4,709 101,039 475,784 20 17,160 343,000 10 1,310,000 13,100 16,111 2041 B,404 17,923 150,629 3,118 108,940 339,878 4,737 96,600 467,004 20 17,200 344,000 ·.10 1,310,000 13,100 16,289 --~.,,.,._m~ __..,_ .,..,., _____ .,., .. ______...... -.... -- ..... -...... ANN. lNC 10 183 1661 20 244 2793 6 -501 -1746 0 36 719 0 378 4 36 3431 _,..,~ ...... ,,.,.,. __ , ---...... ------___ _,,. .. ~~ .. ~~ ...... - - .. _~_ .. - Note: 1. Residentiai anuual ~sage droplng after roaching 1~829 KWh In 2018 according to the model. The ether moqel w,th out 01: price was reachtng \O 62684i';Wh (very high-not possible) In 2040. It was decided to use flr~t model until 20181md then escalating it by 178 KWn per year to ibe realistic, 2. Irrigation model showed ellghl deollne In usage but capped at 82000 KWh (201'3) tor medium precipitation and then escalated as per regression analysis. 3. Small commercial usage shqwed l!at wlt.n al!ght 9ocline after 2026, . 4, Impact or dry & wet year on annual Irrigation Ull8ge ls +/• 7000KWl1112000KWh rapectively. 13ased on Tabla-1.low, r, TABLE· 16 LEA COUNTY.ELECTRIC COOPERATIVE PROJECTED DISTRIBUTION OF ·coNSUMERS .& SALES OF T_HE TOTAL ______..,_.., ... _.., ______,...... ,_..,_ ..,.,. ___ .,. .. ,.. _____ ...... _... ___ ..,_ ...... ,.. ___ ...... - ..,. _____ ... ..,_ ... ,...., ... ___ ..,,...... -...... -- __ ,., ... -...... RESIDENTIAL IRRIGATION S. CO_MMERCIAL L. COM.MERCIAL OTH~RS TOTAL ___ .,._,.. ______.., __ .,...,. _,... _____ ,,...,...... - ...... _... ___ YEAR CONS. MWH CONS. MWH CONS. MWH CONS. MWH CONS. MWH CONS. MW ___ ..__ ...... _ ... ..,...... ,_ ... _,..______... ------__ ,., ...... ,_ --- ...... ,...... ---- .... ._ ... ..,.,. ... ______-----+· ...... --- 2011 53.2 8.4 16.5 21.3 30.0 42.4 0.1 26.8 0.1 1.1 100.0 100.0 2012 53:2 8.7 16.6 20.1 30.0 42.7 0.1 27.5 0.1 1.1 100.0 100.0 2013 53.2 8.8 16.6 19.0 30.0 42.5 0.1 28.6 0.1 1.1 100.0 100.0 2014 53.1 8.9 16.7 19.2 30.0 42.3 0.1 28.5 0.1 1.1 100.0 100.0 0.1 1.1 100.0 1 l• 2015 53.1 9.0 16.8 19.4 29.9 42.1 0.1 28.4 2016 53.1 9.1 16.8 19.6 29.9 41:9 0.1 28.4 0.1 1.1 100.0 2017 53.0 9.1 16.9 19.9 29.9.· · 41.7 0.1 28.3 0.1 1.0 100.0 2018 53.0 9.1 16.9 20.1 29.9 41.5 0.1 28.3 0.1 1.0 100.0 2019 53.0 9.2 17.0 20.3 29.8 41.2 0.1 28.2· 0.1 1.0 100.0 2020 52.9 9.3 17.1 20.6 29.8 40.9 0.1 28.2 0.1 1.0 100.0 2021 52.9 9.3 17.1 20.8 29.8 40.6 0.1 28.2 0.1 1.0 100.0 2022 52.8 9.4 17.2 21.1 29.~ 40.3 0.1 28.2 0.1 1.0 100.0 2023 52.8 9.5 17.3 21.3 29.8 40.0 0.1 28.1 0.1 1.0 100.0 2024 52.7 9.6 17.3 21.6 29.7 ·39.7 0.1 28.1 0.1 1.0 100.0 2025 52.7 9.7 17.4 21.9 29.7 39.4 0.1 28.1 0.1 1.0 100.0 2026 52.7 9.7 17.5 22.1 29.7 39.0 · 0.1 28.1 0.1 1,0 100.0 2031 52.4 10.2 17.8 23.6 29.6. 37.5. 0.1 27.7 0.1 1.0 100.0 2036 52.2 10.7 18.2 25.2 29.4 35.7 0.1 27.4 0.1 0.9 100.0 2041 52.0 11.2 18.6 26.9 29,3 33,9 0.1 27.1 0.1 0.9 100.0 ...... ____ ..,.,..., __ ...... ______.., ...... - ____ ...... ,.., ___ ... _,...... ___ .,. __ ,.,.,.... ______.,...... ------_...... - ...... - Lea County Electric Cooperative 2011 2011 2021 2021 # Consumers MWH Ener!:; # Consumers MWH Energy in% in% in% in% Res. 53.25 8,39 52.87 9.34 Irr. 16.54 21.29 0.00 20.84 RComm. 30.01 42.42 29.80 40.63 L.Comm. 0.13 26.82 0.13 28.18 others 0.07 1.08 0.06 1.02

Lea County Electrfc Cooperative 2011

50 p e 40 r C 30 e 20 n t 10

0 Res. Irr. S.Comm. L.Comm. Others

2021 . I 60 I 50 p e 40 r C 30 e n 20 t 10

0 Res. Irr. S .. Comrn .. L.Cornm.. (Jl:l1E.:~rs TABLE-17 LEA COUNTY ELECTRIC COOPERATIVE HISTORICAL AND PROJECTED DISTRIBUTION LOSSES 1990-2041

SALES IN MILES OF KWH SALES STD. ACTUAL LOSS YEAR MWH LINES(1) PER MlLE !NCR. % LOSS(2 %OF SALE

1990 552940 4426 124930 8.5 8.62 1991 579545 4500 128788 3858 8.5 9.00 1992 607157 4302 141134 12346 8.5 9.21 1993 670732 4299 156020 14887 8.5 7.86 1994 673209 4465 150775 -5246 8.5 8.34 1995 734374 4502 163122 12347 8.5 8.59 1996 769039 4526 169916 6794 8.4 7.39 1997 778325 4546 171211 1295 8.4 7.02 1998 819668 4549 180186 8975 8.4 6.50 1999 743732 4551 163422 -16765 8.4 8.73 2000 842318 4561 184678 21257 8.4 6.52 2001 830863 4550 182607 -2071 8.4 7.87 2002 866469 4512 192036 9429 8.4 8.22 2003 917650 4510 203470 11434 8.3 7.91 2004 954705 4522 211125 7655 8.3 5.70 2005 976535 4534 215381 4256 8.3 6.34 2006 1029104 4554 225978 10597 8.3 7.08 2007 9TT279 4135 236343 10365 8.3 7.63 2008 1103765 4153 265775 29432 8.3 7.24 2009 1114048 4164 267543 1767 8.3 7.56 2010 1128281 4178 270053 2510 8.3 7.59 2011 1202087 . 4194 286621 16568 8.3 6.15

2 YR AVERAGE 9539 8.30 6.87 AVG. DIFF. BETWEEN ACTUAL & STANDARD LOSS -1.43

2010 1201141 4204 285720 -901 8.3 6.87 PROJECTED 2011 1212204 4214 287673 1953 8.3 6.87 2012 1223743. 4224 289730 2057 8.3 6.87 2013 1234479 . 4234· 291588 1857 8.3 6.87 2014 1244276 4244 293215 1628 8.3 6.87 2015 1253694 4253" 294.746 1531 8.3 6.87 2016 1262348 4263 296091 1345 8.3 6.87 2017 1271628 4273' 297576 1485 8.3 6.87 2018 1280632 4283 298989 1414 8.3 6.87 2019 1289350 4293 300330 1340 8.3 6.87 2020 1297840 4303 301611 1281 8.3 6.87 2021 1306060 4313 302824 1213 8.3 6.87 2022 1314057 4323 303979 1156 8.3 6.87 2023 1321820 4333 305076 1096 8.3 6.87 2021 1329376 4343 306119 1044 8.3 6.87 ;wzo ·1a::mm2 4:343 3·J:?._;,'_fi(J fl1 ~l1 B.3 fi.ffl 20::14 ·1 :J?!JS!'i,?. 4::·14.3 31 ?fififl 5409 8.2 6.77 203!) '1401394 43,43 :,2268"1 fi022 t.l.2 fi.77

----~.~ ...... ,... •···· ...... , , , , ""'""""'""'"""""""""'"'"... """""""""" ...... ,...... ('I) PROJECTED DATA NU:: LINE/IF{ HCUFff:SSION OF' HIST. D/\TJ\ (;/) FHOM HE/\ ST/\Nl)/\HD SYSTFM LOSS cunM:'; (TAB!.J:: -'1/J) (:3) FHOl\ll rtEA FOHM 1 TABLE-18

RE.A FORH 802! J...?PROVID O~!U Rev. 6/75 HO, 40-RJBi3l ST Ali DA.RD 3i'.'3TE:f LOSS ClJRYS

R!.A ButLE!lH · 4 5~4

ldlh/H l. or I, [ IH" oon 100 100 lQQ. li.00, __.,_500. oao 700 800 900 5,000 l7. 5 17 •.J 17 .1 .16. 9 16 .. 8 L6.6 16.4 i6.J L6.2 16.0

6,000 U.9 15.R 15.6 15.5 15. L: 15.J 15.2 :t 5. l t 5 .. 0 14.9

7,000 14.8 14. 7 14.6 14 • .5 14 .. 4 14..3 · 14,.2 .14.2 14. l 14·. Q

8,000 lJ·. 9 l.].8 lJ.8 lJ. 7 1J. 6- 13.6 tj. 5 13.4 lJ.4 lJ .J

~ ,oao lJ.J U.2 lJ.Z 13.l 13 .o 13.0 12.9 12.9 l.Z.8 ! 2. 8

10,000 12. 7 12 .. 7 12.7 12.6 12.6 12.5 L1.5 12.4 12 .4 12.4

11,000 12.J 12.J 12.2 12. 2. 12.z .12. l 12.1 12.1 12.0 lZ.O -· 12,009 12.0 ti .. 9' 11.9 11.9 11.,8 11.8 11.8 11 ~7 ll.7 1L7

13,000 tl.7 ll.5 U.6 11 .. 6 11·• .s 1L5. ll,.5 11 .. 5.. 11.4 ll.4

14,000 "Ll.4 11.4 Ll.3 ll.J 11 .. J 11..3 tl.J llo2 11.Z ll.2

t.5 .000 l t.2 11. 2 11.1 11.l lLl 1;i..1 lLl a.a 11.0 11.0 . 16,000 11.0. 11.0 10 .. 9 10.9 . 10 .. 9 10.9 10Q9 10.9 10.8 10-.8

17 ;000 10.8 10.8 10.8 10.a 10.7 10. 7 1001 10.7 10.7 iiJ.7

18 1000 10.6 ro .. 5 10.6 10 .6 to.,6 10·.S l.0.5 .. 10 .5 10.• .5 10.5

19,000 L0.-5 10. '.i 10.5 10.5 10.S 10.A 10.L. 10.4 10.4 LO .4 ·

10,000 . l O.L. 10.4 10.4 l0.4 10.J ta.3 10.J lO.J 1.0.J 10.J

21,000 HJ.J tO.) 10.J 10.1 10. 2 to.2 10.2 1.a.2 10.2 L0.2

'y~ ;.rh I ~-1 t " of L irw "22 ,000 2:J ,000 ?/1., 000 2''.i, 000 20.000 2. 7 ,CIOO :ze,ooo 29,000 , '7n ••·' • "-;] ,, J 9, l L\1.2 lO" l., t.0 .. l.} 9 ':) r;1 '>I a \:l ,!l kl.ih/H 1..., ·;o, coo ,c:) f...... L.. t .. n.'\ J11, noo J 'i, onn l,.IJ, 000 1\5,000 so ,000 SS,000 60,DrJO ., •· ...... 8. ':! . iJ. a ,.. ') ,-6 .... ' "1:;· ':I. 2. <;).). ';l. 0 IL) k,\fh/:\ I • o{ Lt l'"\('1. 1:JO IJOO 1.CO,OCG 200,000 . 1,.on, c:co , 600 , ()(!(.J ... -~------•"'••··----- •···••>••··.l. •.... ,...... eoo .... 00Sl...... ,.1,...... '""'""""""""""""""•··•··-·•···· """'""""""" ...... ~ ,.;~ " ·1 d ,, 6 8 •n5 u liy,.,,J :'l 'l e ·•· J.. I.LL .J

·TABLE-19

HISTORICAL LOAD FACTOR OF Lea County Electric Caopera1ive* 1990-2011

ANNUAL ANNUAL{JAN.1-DEG.31) SUMMER{APR.1-SEP.30) WINTER(OCT.1-MAR.31) YEAR MWHPURCH KWDEMAND LOAD FACT. KW DEl\/lAND l.OADFACT. KW DEMAND LOAD FACT.

1990 600,623,200 98300 69.75 98,300 69.75 76,750 89.33 1991 631,693,923 104930· 68.72 104,930 68.72 77,900 92.57 1992 663,049,950 111220 68.05 111,220 68.05 86,400 87.60 1993 723,444,421 119900 68.88 119,900 68.88 89,280 92.50 1994 729,365,653 119970 69.40 119,970 69.40 91,800 90.90 1995 797,447,147 133470 68.20 133,470 68.20 98,170 91.79 1996 8215,869,212 131710 71.58 131.710 71,58 101,390 92.98 1997 832,026,996 137910' 68.95 137,910 68,95 103,760 91.64 1998 872,910,780 139820 71.27 139,820 71.27 110,970 89.80 1999 808,692,071 138000 66.90 138,000 66.9[l 101,580 90.88 2000 897,206,694 147100 69.6;! 147,100 69.63 117,690 B6.88 20D1 896,231,822 151210 67,66 151,210. 67.66 115,220 88.79 2002 937,699,681 154600 69.24 15-4,6.00 6924 116,880 91.58 2003 990,277,749 158390 . 71.37 158,390 71.37 124;800 90.58 2004 1,009,097,890 164900 69.86 '164,900 69,86 126,500 91.06 2005 1,038,445,360 · 17365() 68.27 173,650 68.27 133,400 88.86 2006 1,101,922,il21 177200 70.99 177,200 70.99 137,300 91.62 2007 · 1,051,806,600 170400 70.46 170,400 70.46 . 134,800 89.07 2008 1,183,648,800 183:}'50 73.69 1'83,350 73,89 145,600 92.80 2009 1,198,~8,320 189180 72.30 189,180 72.30 147,900 92-48 2010 1,213,9::>B,ODO 192000 72.18 192,000 72.18 .. 144,000 96.23 l;>Ull, Nov. 2011 1,276,024,852 199000 73:20 199,00,0. 73.20 148,000 98A2 Aug,~ov

5 YR. AVERAGE 72.37 72.37 93.80 MAXIMUM 73,69 73.69 98.42 MINIMUM 66.90 ., 66.90· 86.88 Sta. Dev. 1.84 1.84 2.61

· * FROM Form 7 I .

TABLE-20

Lea ELECTRIC COOPERATIVE

SUMMER FACTOR ON WESTERN FARMERS MW PEAK DEMAND

COINCIDENCE PEAK MONTH YEAR CP NCP FACTOR

JULY 2005 169593 JULY. 0.977 175862 177200 0.992 AUGUST 2007 179512 170400 1.053 AUGUST 2008 187176 183350 1.021 JULY 2009 187767 189180 0.993 AUGUST 2010 192000 AUGUST 2011 199000

AVERAGE 1.007 1_053 ·o.977 . : .>cl : . -·•· __ '.I ,_

TABLE-21

Lea County ELECTRIC COOPERATIVE

WINTER COINCJDENCE FACTOR BASED ON WESTERN FARMERS MW PEAK DEMAND

COINCIDEf\!CE PEAK MONTH YEAR CP NCP FACTOR

FEBRUARY 2005 NIA 133400 . #VALUE! DECEMBER 2006 NIA 137300 #VALUE! DECEMBER 2007 N/A 134800 #VALUE! NOVEMBER 2008 NIA 145600 #VALUE! FEBRUARY 2009 NIA 147900 #VALUE! JANUARY 2010 131000 FEBRUARY 2011 140000 AVERAGE \ #VALUE! MAXIMUM #VALUE! MINIMUM #'VALUE! Summer CP is used for the future. 1! TABLE-22 Loa County ELECTRIC POWER REQUIREMENTS (medium) " <--•---··-- (high}---···> <---···· (low) ------~--...... ~~-... -~------_,. ___ ,._,. _____ ------~--..----- .... ~~---- MWH PERCENT MWH 'LOAD FACTOR• • !1/Nv NCP DEMAND • .. GOINGIDENC~ FACT *MW (GP) DEMAND • • • MW (NGP) DEMAND'• MW (CP) DEMAND• • • MW (NGP) DEMAND'• MW (GP) DE YEAR SALES LOSSES PURCHASI SUMMER WINTER SUMMER WINTER SUMMER WINTER $UMMER WINTER ' SUMMER WINTER SUMMER WINYER • SUMMER WINTER SUMMER WNTER -----~-~----.. -----____ ,._,.,.~ .. ------~ ---... -~- ...... ______---,.,..,.,_,..,., __ ,._ ------~--- .. -.--- 2011 1202077 6,15 1276017 73,2 98.42 198,99 148.00 0.98 0.98 195,01 145.04 • 211.11 165,53 210.05 164.70 • 194.22 154.96 188.39 150,31 2012 1201141 6,67 1263665 72 91 203.52 161.03 0,98 0.98 199.45 157.81 . 212.37 166.52 211.31 165.89 ' 105.38 155.89 189,52 151,21 2013 1212204 6,87 1295489 72 91 205.40 162.51 0.98 o.9a 201,29 ·/59.26 • 214.33 168.05 213,26 167,21 . 197.16 157.33 191.27 152.61 2014 1223743 6,87 1307821 72 91 207,35 164.06 0.98 O,QB 203,21 160,78 . 216.37 '169,65 215.29 168,80 • 199.06 158.82 193.09 154.06 2015 1234479 6.87 1319294 12 81 209,17 165.50 0,98 0.98 204.89 1e2.rn . 218.27 171.14 217,18 170,29 • 200.81' 160.22 194,78 155.41 2016 1244276 6,87 1329764 72 91 210.83 166,81 0,98 0,98 206,62 163.48 . 220.00 172.50 218.90 171.64 ' 202,40 151.49 196.33 156,64 2017 1253694 6.87 1339829 72 91 212.43 188.08 0.98 0,08 208.18 164.71 . 221.66 173,81 220.56 172.94 • 203,93 162.71 191',81 157.83 2018 1262348 6,87 1349078 72 91 213.89 169.24 0.98' 0,98 209,62 165.85 • 223.10 175,00 222.08 174.13 . 205.34 163.63 199.18 158,92 2019 1271628 6,87 1358995 72 91 215.47 170.48 0,98 0,08 211.16 167.o7. 224.84 176,29 223,71 175,41 . 206.85 165.04 200.64 160,09 2020 1280632 6.87 1368618 72 91 2.16.99 171.69 0,98 0,98 212.65 168.25 • 226.45 177.54 225,30 176,65 * 208.31 166.21 202.06 161.22 2021 '1209350 6.87 1377935 72 91 216.47 172.86 0.98 o.eB 214.10 169.40 • 227.97 178.75 226,83 177.85 • 209,73 167.34 203.44 162.32 2022 1297840 6,87 1387008 72 91 219.91 173.99 0.96 0.98 215.61 170.51 . 229.47 179.93 228.32 179.03 • 211.11 168.44 204,76 163,39 2023 1306060 6,87 1395793 72 91 221.30 175.10 0.98 0.98 216.88 171.59 • 230.92 181.06 229.77 180,16 • 212.45 169.51 206.08 164.42 2024 1314057 6.67 1404339 72 91 222,66 , 176.17 0,98 0.98 . 218.20 172.64 • 232,34 182,17 231.rn 181.26 • 213.76 170.55 207.34 165.43 2025 1321820 8.87 1412638 72 91 223.07 . 177.21 0,98 0,98 · · 219.49 173.66 • 233.71 183,25 232.54 182,33 • 215.01 171.55 208.56 )66.41 2026 1329376 6.87 1420711 72 91 225.25 178.22 0,98 _ 0.G8 220,75 174.66 • 235,05 164,30 233,87 183.38 • 216.:U 172.53 209.75 167,36 2031 1356032 6.87 1449199 72 91 229,77. 1a1.ao o.~a 0,98 225;17 178.16 • 239.76 187,99 238,56 187.05 .• 220,50 175.99 213.96 170.71 2036 1379552 6.77 1472955 72 91 233.54 i84.78 0.98 , 0,98 226.86 161.08 • 243.69 191.07 242.47 180.12 • 224.19 178,88 217.47 173.51 2041 1401394 6.77 1496275 72 91 237,23 187.70 0,98 . 0,98 232.49 163.95 • 247.55 194.10 246,31 193.13 • 227.74 181.71 220.91 176.26 . 4l)6Q%L.F @.8B¾L.F @.QQ5coln @,ggeooin • @76%LF @94%L.F @,e?coin, @97coin, . Factor Factor Factor Factor . Factor Factor Factor Fa tor ---,...,._.,~,.,~~~~-,.,.- ---,.~a,.-~_.,,..,~ .. ,.,... ------~-.. - ...... "'N"'~ .. ~ .... ~-~ .... AV,YRLY.INC 2011-21 8727 10192 1,946 2.465 1,909 2,436 2011-2041 6644 7342 1.275 1.323 1,249 1.297 ANNUAL COMPOUND GRO\NTH 2011-21 0,70 0,77 0.94 1,56 O,jl,4 1.55 2D2',-2C41 0.42 0.41 0,41 0.41 0,41 0,41 201:-21 0.51 0.53 0,59 0,80 0.59 0.80 -w~~~~-...... --- ' --~---~-' -~~~~~~~~-~~ .. --- -~~---- ~-~~--- . Note : High-low NCP demands are baaed on + or. 3% ol the rnecilum load factor and CP demands are bas.ed on + or - 2% of medium Coin. Factor to !aka care of weather related variance. Any new largo commercial load will have a direct Impact on !he forecast. TABLE -22.dry year lea Cour,ry ELECTRIC POWER REQUIREMENTS

(medium) > <---(high)-----··----> <------(low) .,._,. ______,._ ------~~------~ ------~~------·--~- MWH PERCENTMWH • LOAD FACTOR• • MW NCP DEMAND • COINCIDENCE FACT • MW (CPJ DEMAND • • ~ MW (NCP) DEMAND '• MW (CP) DEMAND • • • MW (NCP) DEMAND ••MW (CPJ DE !AND* YEAR SALES LOSSES PURCHASt SUMMER w:NTER SUMMER W!NTER SUMMER WINTER SUMMER WlNTER . SUMMER WINTER SUMMER WINTER . SUMMER WINTER SUMMER INTER ______,. __ .,_.,. ______.,,.,, ______~--p------. ------~------~ri------~ .. ------~~~-~ 73,2 08.42 198.99 148.00 D.98 0.98 195.01 145.04 . 211.11 165.5S 210,05 164.70 . 194.22 164.96 188,30 150,31 2011 1202077 6:15 1276017 2012 1218B07 6,87 1302652 n· 81 206.53 163.41 0.98 0.9!l 202.40 160.14 . 215.51 168.98 214,44 168.14 . 196.27 158,20 192.32 153.45 2013 1230110 6.67 1314625 72 91 208.43 164.91 0.98 0.98 ·.204.26 161.62 . 217,49 170.54 216.41 161}.68 . 200.10 159,65 194.09 154,86 2014 1241789 6.87 1327106 72 &1 210.41 168.48 0.98 0.08 2oe.20 163.15 . 219,56 172.15 218.46 171.29 . 201.09 161.17 195.94 156,33 2015 1252665 6.87 1338729 72 91 212.25 167,94 0.98 0.98 206.01 164,58 ' 221.48 173.~6 220,36 112.7g . 203.76 162.58 197.65 157,70 2016 1262602 6,87 1349349 72 91 213.94 169.27 0.98 0,98 209.86 165.88 . 223.24 175.04 222,12 17,(16 • 205.38 163.87 199.22 158.95 2017 1272160 6.87 1359564 72 91 215.56 170,55 0,98 0.96 211.25 167,14 . 22~.93 176.37 223,80 175.48 . 205_94 165,11 200,73 160,15 2018 1280954 6.87 1~68962 72 91 217.05 171,73 0,98 0.96 :m.11 168,30 . 226,48 177.58 225,35 176.70 . 208.37 166,25 202.11 161.26 2019 1290374 6.87 1379029 72 91 218.64 172.99 0.98 0,98 2~4.21 1tJg.63 . 228.15 178.Bll 227.01 178.00 . 209.90 167,47 203.60 162.45 2020 1299518 0.87 1366802 72 91 220.19 174,22 0,98 0.86 215.79 170.73 . 229.77 180.16 228.02 179.26 • 211.39 168.66 205.04 163,€0 0.98 0,98 217.26 171.90 . 231.33 181,39 230,18 180.48 . 212.83 169.81 206.44 164,71 2021 1308376 6.87 1398268 72 91 221.69 176,41 2022 1317006 6.87 1407491 72. 91 223,16 176,56 0,9B 0.98 218Jl9 17S.03 • 232.86 182.58 231.69 181.67 • 214.23 170.93 207,80 165.60 2023 1325366 8.87 1416426 12 91 224.57 177.68 0,98 0.98 : 220,06 174.13 . 234.34 183.74 233,17 182.62 • 216.69 172.01 209.12 166.85 2024 1333503 6.87 1425121 72 91 226.95 178.77 0.88 0.08 221.43 175.20 . 235,78 184.87 234.60 163.95 216.91 173.07 210.41 167.88 2025 1341406 8.67 1433568 n 91 227,29 179,83 0,98 0,98 222.74 176.24 . 237.17 1B5.1l7 235,99 185.04 . 218.20 174.09 211,65 168,87 0.96 224.02 177.25 . 238.53 187.03 237.34 186.10 . 219.45 175.09 212.87 169.84 2028 1349102 6.87 1441792 72 91 228.69 160.67 0.98 2031 1376458 6.87 1471028 72 91 233.23 184.53 0,98 0.9$ 228,57 180.84 • 243.37 190.82 242,15 189.87 • 223.90 178.64 217,18 173,28 2036 1400678 6.77 1495511 72 91 237.1! 187.60 0,98 0.98 232.37 183.85 • 247.42 194.00 246,18 193.03 . 227.63 161,62 220,80 176.17 2~41 1423220 6.77 1519579 72 91 240.93 190.62 0,98 0.98 .236.11 186.81 . 251.40 197,12 250.15 196.14 • 231,29 164.54 ~24.35 179,00 . @69¾l.F @.88'MIL.F @.99~coin ®,9Q~ooin • @75%LF @94%LF @,87coln, @ 97coin. . Factor Factor Factor Factor . Fectcr Factor Factor F otar - ~_...~w~~-~~..,_.,,. ---.. --~------~ ------~--- ____ ..., ...... -.. ~--~------• -~~~~~w--~- AV.YRL. Y.INC 2011-21 10530 12225 2.270 2,740 2.225 2.686 2011-2041 7371 8119 1,398 1.421 1.370 1.392 ANNUAL COMPOUND GROWTH 2011-21 0.85 0.92 1.09 1,71 1.09 1,71 2021-2041 0,42 0,42 0.42 0.42 . 0.42 0.42 0,85 2011-21 0.56 0,58 D.64 0.85 0.64 - ,...,_., -m--=---'-'"'-"'" _,__, _____,, ______,______,_,..,,. ______.,_,___,._,._ • ~ •,. ______Nole: High-low NCP demands are based on+ or- 3% or the mectium load factor and CP demands are based on+ or-2% ol medium Coln. Factor lo---- tako care ofwaather related variance, Any cew large commercial load will have a direct Impact on the forecast. Based on Tabl&-15.dry year.

l TABLE. 22.we! year Laa County ELECTRIC POWER REQU!REMCNTS

(medium) <---{high)·-----·-·> <---(low)------····-> --.-- ---~~---_._,.,,.,.,. ---a-.. -'~-~.,,.~..,. ------MWH PERCENTMWH • LOAD FACTOR• • MW NCP DEMAND • COINCIDENCE FACT• MW (CP) DEMAND• ' • MW (NCP) DEMAND'• MW (CP) DEMAND• ' 'MW (NCP) DEMAND '' MW (CP) D MAND' YEAR SALES LOSSES PURCHASE SUMMER WINTER' SUMMER WINTER SUMMER WINTER SUMMER WINTER * S:JMMER WINTER ·SUM'IAER WINTER ' SUMMER WINTER SUMMER INTER ------.. --.,-~• --- . ------. ------2011 1202077 6.15 1276017 73.2 98.42 198,99 .148,00 0.98 0.98 195.01 145.04 • 211.11 165.53 210.05 164,70 • 194.22 154,96 188,39 150,31 2012 1178685 6.$7 1251116 72 91 198.36 156.95 0.98 0.98 194.40 '163.81 . 206.99 162.30 205.95. 161.49 • 190.43 151.94 184,72 147,38 2013 1181508 6,U7 1202684 72 91 200.20 158.40 0.98 0.98 196.19 155.23 . 208,90 163,60 207,86 162,98 .• 192.19 153.34 186,42 148.74 2014 1192807 6.87 1274759 72 91 202.11 159.91 o.ss 0,9!l 198,07 156.71 . 210.9• 165.36 209,B4 164.54 • 194.03 154.81 188.21 150.16 2015 1203303 6.87 1285976 72 91 203.89 161,32 0.98 0,98 199.81 158.09 . 212.75 166.82 211,69 165,99 ' 1116.73 156.17 189.66 151.49 2016 1212860 6.87 1296190 72 91 205.51 162,60 0.98 0.98 201.40 159.35 . 214.44 166.14 213,37 167,30 • 197.29 157.41 191.37 152,69 2017 1222038 6.87 1305998 72 91 207.06 163.83 0.88 0.96 202.92 160.55 . 216,07 169.42 214.99 168.57 • 198.78 158,60 192.82 153,84 2018 1230452 6.87 1314991 72 81 208.40 164.96 0,96, 0.98 204.32 161.66 . 217.56 170,68 2f6.47 169.73 • 2C0.15 159.69 194,15 154,90 2019 1239492 6.87 1324651 72 91 210.02 166.17 0,98 0.98 205,82 162.65 . 219.16 171.84 218.06 170.98 . 201.62 160,67 195.57 15tL04 2020 1248250 6.87 1334018 72 91 211.51 167.35 0.98 0,98 207.28 164.00 . 220.70 173.05 21S,60 172.19 • 203.05 162.01 196.90 157.15 2021 1256734 6.87 1343076 72 91 212.94 166.48 0.98 0.98 208.68 165.11 . 222.20 174.23 221.09 173.36 • 204.43 163.11 198.29 158.21 2022 1264984 6,87 1351895 72 91 214,34 169.59 0.98 Q,QB 210.05 166.20 . 223.66 175.37 222.54 174.49 ' 205.77 164.18 199.59 159.25 2023 1272964 6.87 1360423 72 91 215.69 170,66 0.98 0.98 211.38 167.25 . 226.07 176.48 223,95 175.5e • 207.07 165,21 200.85 .160.26 2024 1280721 6,87 1368713 72 91 217.01 171,70 0.98 0.98 212.67 168.26 . 226.44 177.55 225.31 176.66 . 208.33 166.22 202,08 161,23 2025 1288244 6.87 1376753 72 91 218.28 172.71 0.98 0.Ge 213.92 169.25 . 227.77 178,60 226.63 177.70 • 209.55 167.20 203.26 1132,18 2020 1295560 6.87 1384572 72 91 219.62 173.69 0.08 0,08 216,13 170.21 . 2.29.07 179,61 227.92 178.71 . 210.74 168.14 204.42 163,10 2031 1321016 6,87 1411777 72 91 223.64 177.10 0.98 0,98 21~.36 173.56 . 233,57 183.14 232.40 182.22 ' 214,88 171.45 208.44 166,31 2036 1343336 6,77 1434287 72 9i 221.40 179.92 0,98 0.98' 222,86 176.33 ' 237.29 18M6 236.11 185.13 • 218.31 174.18 211.76 168,96 2041 1363978 6.77 1456326 72 01 230.90 182.69 0.98 0,98 226.28 179.04 . 240,94 188,92 239.73 187,97 ~ 221,66 176.86 215,01 171.55 . @eG%L.F (li/,88~L.F (ffi.996coln @,G9Gooln • . @7~%L.F @94%L.F il1),97ooln . .97coln. . F&ctor Factor Fiictor Fwotor . Factor Factor F"otor F ctor ------~··-.. -~~------AV.YRLY,INC ------2011-21 5466 6706 1.395 2.048 1.367 2.007 2011-2041 5397 6010 1,063 1.156 1.042 1,133 ANNUAL COMPOUND GROWTH 2011-21 Mo 0.51 0.08 1.30 0.68 1.30 2021-2041 0.41 0.41 0.41 0.41 0.41 0,41 2011-21 0.42 0.44 0.50 0.70 0.50 0.70 ...... ~~ .. ~ .. ,.,..., .. ------.. ~~-,.~~~"~------.,~_.,,.,._ --~ ...... ,.,... ,.,.,. ---.. -.·-·""~- Nole : High-low NCP damand» are based on + or• 3% of Ille medium load factor and CP demands are based on + or - 2% or medium Coin. Faatar to------take care of weather related valiance. Any new large cornmercl8I load will have a direct impact on the forecast, Based on Table-15,wat year. '{

TABLE - 22J1igh Lea County ELECTRIC POWER REQUIREMENTS

(medium) <--·------(high)----> <------(low) ______,_, ___ .. .,~ .. ------. ------MWH PERCENTMWH ' LOAD FACTOR• • MW NCP DEMAND • COINCIDENCE FACT• MW (CP) DEMAND• • • MW (NCP) DEMAND'' MW (CP) DEMAND ' • • MW (NCP) DEMAND,. MW (CP) D MAND' YEAR SALES LOSSES PURCHASI SUMMER WINIER SUMMER WINTER SUMMER WfNTER SUMMER WINTER • SUMMER WINTER SUMMER WINTER • SUMMER WINTER SUMMER INTER ~---.. --~~ ---~--~------~-----~-- . ~~-~----~~------~~- -~~~~--¥-~~ 2011 1202077 6.15 1276017 73.2 98.42 198.99 148.00 0.98 0,9B 195.01 145.04 • 211.11 165,53 210.05 164.70 • '194.22 154.96 186.39 150,31 2012 1202326 6.67 1284932 72 91 203.72 161.19 0,98 0.06 199.65 157,96 . 212.58 ' 166.68 211.52 165,85 • 195,58 156,04 189.71 151.36 2013 1218900 6.87 1302645 72 -91 206.53 163.41 0,98 0,98 202.40 160.14 • 215.61 168.98 214.44 168,14 • 198.27 158.20 192.32 153.45 2014 1233970 6.87 1318750 72 91 200.09 165.43 0.96 0,96 204.90 162,12 • 218.'18 171,07 217.09 170,22 ' 200.72 160,16 104,70 155.35 2015 1248335 6.87 1334102 72 91 211.52 167.36 0.98 0.98 207.29 164.01 . 220.72 · 173.06 219.61 172.20 • 203.06 162,02 ' 196.97 157.16 2C"l6 1261878 6.87 1348575 72 91 213.82 169.17 '0,98 0.98 209,54 165,79 • 223.11 174.94 222,00 174.06 • ,20~.26 163.77 199,10 158,86 2017 1275115 6.87 1362722 72 91 218.06 170.95 0.96 0.98 211.14 167.53 • 225.45 176,77 224,32 175.89 • 207.42 165.49 201.19 160.53 2018 1287671 6.87 1376141 72 91 218.19 172.63 0.98 0.98 213,82 169,18 * 227.67 178,52 226.53 177.62 . 209.46 167,12 203.17 162.11 2019 1300953 6.67 1390335 72 91 220,44 174.41 0.98 0.98 216.0~ 170.92 • Zl0.02 '180,36 228,87 179.46 .• 211.62 166.84 206.27 163.78 2020 1314025 6.87 1404305 72 91 222.65 176.16 0.98 0.98 216,20 172,64 • 232,33 182.17 231.17 181.26 . 213.75 170,54 207,33 165.43 202'! 1326896 0.87 141aoao 72 g1 224,83 177.89 0.98 0.98 220.34 174.33 • 2a4.e1 183.95 233.43 183,03 • 215.84 172.21 209.36 167.05 2022 1339573 13.87 1431608 72 91 226,98 179.59 0,98 0,98 222.44 176.00 • 236,86 185.71 235,66 164.78 • 217.90· 173,86 211.36 108.64 2023 1352059 6,87 1444053 72 91 229,10 181.26 0.98 0.98 224.51 177,64 . 239,0'6 187.44 237.86 186.50 • 219,93 175.48 213.33 170.21 2024 1364359 6.87 1458098 72 91 231.18 182.91 0.98 0,98 226,56 179.25 . 241.23 189.15 240.02 188.20 *· 221.93 177.07, 215.27 171.76 2025 1376479 6.87 1471049 72 91 233.23 , 164.54- 0,98 0.98 228,57 180.85 • '243.37 190.83 242.16 189,87 * 223.90 178.65 217.19 173.29 2D2G 1380430 6.B7 1463622 72 91 235.26 186.14 0.98 0.98 230.55 182.42 • 246.49 192.48 244.26 191,52 ' 225.65 160.20 219,07 174.79 203) 1445988 6.67 1545335 72 91 246.01 193.85 0.98 o.sa 240,11 169,98 . 255,86 200.46 254.39 199.46 • 235.21 187,67 228.15 162.04 2036 1500791 6,77 1602402 72 01 254.06 201.01 o.96 0.96 2.46,98 196,99 • 265,11 207,87 263.78 206.63 • 243.90 194,60 236.58 188.76 2041 1553573 6.77 1658757 72 91 262.99 208.08 0,98 0.08 257,73 203.92 • 274.43 215.18 273.06 214.10 • 252.47 201.44 244.90 195.40 . @09'l6L.F @,88%L.F @.~s5coln @.eaacoin • @75%L.F @84'!,.L,F @.87coin. .87coin . . Faotor · Facto( F.aotor Factor . Factor Factor Factor F qtor -~-··----.----- ...... ---~--~ ------AV.YRLY.INC 2011-21 12482 14204 2,564 2.969 2.532 2,929 2011-2041: 11717 12766 2,133 2.003 2,091 1.963 ANNUAL COMPOUND GROWTH 2011-21 0,99 1.06 1.23 i.86 1.23 1.66 2021-2041 0.79 0.79 0,79 0,79 0,79 0,79 2011-21 0.86 0.88 0.93 1.14 0.93 t.14 ., ______---.. -.. ~~--.. --- ••----~- - ~ .... ww.,.,.,.,.,.,.,.,.,,. -- .. ------~~ Note : High-low NCP demands are based on + or. 3% of the medium load factor and CP demands are based on + or• 2% of medium Coin. Factor lo take C'1re of we&ther related va~laliCe. Any new Jargi. commercial load will have a direct Impact on the forecast. ', Based on Table-7 & 15,high. TABLE - 22.high,dryyear L~a County ELECTRIC POWER REQUIREMENTS

(medium) <------(high) ········-··> <------(!cw) ------> ~ .. --.. *~~-~ --~.... ~- --- .. ~-.. ~ . ------MWH PERCENT MWH • LOAD FACTOR• • MW NCP DEMAND • COINCIDENCE FACT• MW (CP) DEMAND• • • MW (NCP) DEMAND'• MW (CP) DE;MAND • • • MW (NCP) DEMAND'' MW (CP) 0 .ANO• YEAR SALES LOSSES PURCHASf SUMMER WINTER SUMMER WINTER SUMMER WJNTER SUMMER WIN_TER • SUMMER .. WINTER SUW.MER WINTER • SUMMER WINTER SUMMER \I' IN1ER ---.------~-~-~-~~ ------=---~~--~ ·-~---. ------~ --··--"-~-- 2011' 1202077 0.15 . 1276017 73.2 96.42 198,99 146,00 0.98 0.98 195.01 145.04 211.11 165.53 210.05 164.70 • 194.22 154.SG 166.39 150.31 2012 1220092 6.57 13039Hi 72 91 206.73 183.57 0,98 0.98 202.60 160,30 . 215.72 169.15 214.64 168,30 ' 198.47 158.35 192,51 153,60 2013 1236806 0,87 1321781 72 91 209.57 165.81 0.98 0.98 206.38 162.60 . 218.88 171.46 217.59 170.61 . 201,18 160.52 '195.15 155,70 2014 1252016 6.87 1338036 72 91 212.14 167.65 0.98 0,98 207.90 164.49 . 221.37 173.57 220.26 172.70 -. 203.66 162.49 197.55 157,62 2G15 1266521 0.87 1353537 72 ll1 214.60 169,79 0.98 0,98 210.31 166.40 . 223.93 175,58 222.81 174.71 206.02 164.38 199.84 159.44 2016 1260204 6.87 1368160 72 91 21s:e2 171.6$ 0.98 0.98 212.58 168.20 . 226.3~ 177.48 225.22 '176,59 • 208.24 166.15 202,00 161.17 2017 '1293581 6.87 1382457 72 91 219.19 173.42 0.98 0.98 214.80 169.95 . 228.72 179.33 227,57 178.44 • 2.10.42 167.89 204.11 162.86 2016 1306277 6.67 1398025 72 91 221.34 175,12 0,98 0,98 216.91 171.62 * 230.96 161.09 229.81 180.19 • 212.46 169.64 206,11 164.45 2019 1319699 6.87 1410369 72 91 223.61 176.92 0.98 0.98 219.14 173.39 . 233.33 182.96 232,17 182,04 ' 2"14.67 171.26 208.23 166,14 2020 1332911 6.87 1424489 72 91 225.85 178,70 0,98 0.911 2:21.33 175.12 • 235 •.67 184.79 ·234.49 18S.88 • 216.82 172.99 210.31 167.80 2021 1345922 6,87 1438394 72 !l1 228,06 160.44 0,98 0.98 223.49 176.83 . 237.97 186.59 236,78 185.66 • 216.93 174,68 212.37 169.44 2022 1358739 6.87 1452091 72 91 230.23 182.16 0,98 0.98 225.62 178.51 * 240.24 168.37 239.04 187.43 • 221.02 176,34 214.39 171.05 1371365 91 232.37 183,85 0.98 . 227.72 180.17 . 242.47 190.12 241.26 189.17 • 223.07 177.98 216.38 172.64 2023 6.87 1465585 72 0.98 , 2024 1383805 6.67 1478880 72 91 234.47 185.52 0.98 o.9a 229.79 181,61 244.67 191.84 243.45 100.88 * 22,.10 . 179,60 218.34 174,21 2025 1396065 6.07 1491981 72 91 236.55 187,16 0.98 0.98 231.82 183,42 . 246.84 193.54 245.60 192.57 " 227.09 181.19 220.28 175,75 2026 1408<56 6.67 1504903 72 91 238.60 18B.16_ · 0.98 0.98 233,83 185,01 .. 248.07 195.22 247,73 194.24 • 229.06 182.76 222.19 177.28 2031 1466414 6.87 1567164 72 91 248.47 19MO 0,98 0.98 ·243.50 192,66 * 259.28 203.30 257,98 202.26 • 238.53 190.32 231.38 184.61 2036 ·!521917 6.77 1624958 72 01 ,257.64 203.'64 0.88 0.98 252,48 199.77 * 268.84 210,79 267.49 209.74 • 247.33 197,34 239.91 191.42 2041 1575390 6.77 1662061 72 91 266.69 211'.01 0.96 0.96 261.38 206.79 . 278.28 218.20 276.69 217.11 . 256.02 204.27 248.34 198.14 . @69%LF @.88%L.F @.996coln @.986coin • ~70%L.F l!Jl04%L.F «!l,lncoin. .97coin. . Factor Factor Factor Factor . Factor Factor Footor F otor --- ·••----~M~~--~- ~-~---~~""'"' - ~ .... ~~~~~55.,_ ..., AV.YRL Y.INC 2011-21 14384 16238 2.906 3.244 2.848 . 3.179 2011-2041 12444 13535 2.256 2.-100 2,211 2.056 ANNUAL COMPOUND GROWTH 2011-21 1.14 1.21 i.37 2.00 1.37 2.00 2021-2041 0.79 0,70 0.79 0.79 0,79 0.79 2011-21 0,91 0.93 ..______0,98 1.19 0,98 1.19 m-mmmm-mm--- mmmm""m_.,,.. ___ _, --- ,.,..,.,,.,._,,..,.,.,,...,_ • ---• ---.,~ __ ,.,._,.,... mmm-, ~-- -.. -----~ Note : High-low NCP demands are based an + or- 3% ol the me~ium load !aot~r and CP demands are based on + or - 2% of medium Coin. Factor to take care of weather related variance. Any new large commercial load wili have a direct Impact on the forecast, Based on Table-7 & 15.hlgh.dry year. TABLE• 22.l•w lea County ELECTRIC POWER REQUIREMENTS

(madium) <--···-(high)·-·---> <--··· (low)---> "' ,. ___ ., . - ______.,.... . ------...... ~------__...... ,.,. __ ------~ ----- . MWH PERCENT MWH • LOAD FACTOR• • MW NCP DEMAND ' COINCIDENCE FACT:. MW (CP) DEMAND• • • WM (NCP) DEMAND'' MW (CP) DEMAND • • • MW (NCP) DEMAND '• NrN (GP) YEAR SALES LOSSES PURCHASI SUMMER WINTER SUMMER .WINTER SUMMER WINTER SUMMER WINTER • SUMMER WINTER SUMMER WINTER • SUMMER WINTER SUMMER _...... ,,..,,. _____ ---_,..., ______., ___ ~------.... ---- 2011 1202077 6.15 1276017 73 ..2 98.42 198.99 148,0• 0,96 0,9B 195.01 145,04 • 211.11 165,53 210.05 164.70 • 194.22 154.96 186.39 150.31 2012 1189294 6.87 1271004 72 91 201.52 159,44 0.98 0.98 197,49 166.25 • 210.28 164.68 209,23 164.05 •" 193.46 154.35 187,65 149.72 2013 i 166106 6.67 1267598 72 91 200,98 159.01 a.ea. o.sa 11)5,96 155.83 • 209,71 164.44 208.61 153,81 . 192,94 153.94 187,15 149,32 2014 1197895 6.67 1280196 72 91 202.97 160,59 o,ga 0.98 198.91 157,38 • 211.BO 166.07 210.74 165.24 • 194,85 155.47 189.01 150.81 2015 1206969 6.87 1269694 72 91 204,tii 161.81 0.68 0,96 200.42 158.57 • 213.40 167.33 212.34 166.49 • 196,33 156.65 190.44 151.96 2016 1214227 6,87 1297651 72 91 205.74 162.78 0.98 0.98 201.63 ·159.53 • 214,69 169.33 213.61 167.40 • 197,51 157.59 191.59 152.86 i! 2017 1221183 0.87 1305084 72 91 206,92 163,72 0,98 0.98 202.78 160,44 • 2iM2 169.30 214,84 168.46 • 198.64 1.58.49 192,68 153,74 2018 12214n 6,87 1311811 72 91 207.99 164,56 0,98 D,98 203,83 161,27 • 217,03 170.17 215.94 16Q.32 • 199.67 159.31 103.68 154.53 2019 1234475 6.87 1319289 72 91 209.17 165.50 0,98 0.98 204,99 162,19 • 218,27 171.14 .217.18 170,28 200,81 160.22 194,78 155.41 2020 1241269 6.87 1326551 72 91 210.32 166.41 0.98 0.98 206.12 163,08 • "219,47 172.08 218,37 171.22 • 201,Q1 161,10 195,85 156.27 2021 1247073 6.87 1333608 72 91 211.44 167.29 0.98 0.98 207.21 163.95 • 220,64 173,00 219,53 172.13 * 202.08 161.96 196.89 157,10 2022 1254296 6.67 1340473 72 91 212,53 166,16 O,j16 o.ss 208.2.S , 164.79 • 221.77 173.89 220.se 173,02 204.03 162,79 197.91 157,91 2023 1260545 6.87 1347151 72 91 213,59 166,99 0.96 0.96 209.32 166.61 . 222,86 174,75 221.76 173.88 • 205,05 163.60. 196.89 158,69 2024 1266626 6.87 ',353650 72 91 214.62 169,81 0,98 0.98 210.33 166.41 . 223,95 175,60 222.83 174.72 • 206,03 164.39 199.85 159.46 2025 1272545 6.87 1359978 72 91 215.62 170.60 0,98 0.98 211,31 167.19 • 225.00 176.42 223,87 175.54 • 207.00 165,16 200.79 160.20 2026 1278325 6.87 1366152 72 91 216.60 171.38 0,98 0,98 212,27 167.95 • 226,02 177.22 224,89 176.33 • 207.94 165,91 201.70 160.93 2031 1301413 6.87 1390827 72 91 220.51 174.47 0.98 0.98 216.10 170.98 • 230.10 180.42 228.95 178.62 • 211.69 168.90 205.34 163.84 2030 1322504 6.77 1412044 72 91 223.88 177.13 0.9B 0.98 219.40 173.59 * 233.61 183.17 232.44 1B2,20 • 214,92 171.48 208.48 166.34 2041 1342424 6,77 1433312 72 91 227.25 179.80 0,98 0.98 222,71 176.21 . 237.13 185.03 235.04 185.00 • 218,16 174.06 211,62 168.84 . C69%L.F @,88%L.F @.OOScoln @,gQ5coln • @75%L,F @9-4% ... ,F @,97coin. .97coln . . Factor Faotor Factor Factor . Factor Factor F~otor F ctor ______,. ,.. .--...... -.. ~----- ·------_., _____ ..... _,.., __ ., __ ~ ___ ,..,~------______AV.YRL Y.INC 2011-21 4580 5759 1.245 1.929 1.220 1,891 2011-2041 4678 5243 0.942 1,060 0,923 1.039 ANNUAL COMPOUND GRDVVTH 2011-21 0.37 0.44 0,61 1.23 0.61 1.23 2021-2041 0.37 0.36 0.36 0,36 0.36 0,36 2011-21 0.37 0,39 0,44 0.65 ().44 0,65

-~~ ,,,..,._ ,. ,._,. -----~-- ...... ______. -~~-..------~~~ ~~~~~WW~~~ Note: High-low NCP demands are based on+ or- 3% of the meqlum load factor and CP demands are based on+ or-2% of medium Coln. Factor to take care of weather related verJance. Any new large commercial load will have a direct Impact on the forecast. Based on Table-7 & i5.low. TABLE - 22.low.wet year Lea County ELECTRIC POWER REQUIREMENTS ---·- (medium) <----- (high) <--·-·-··-· (low)-----·•---> -~--w,. __ -~=-m--~-----~------~---~-~------,.-.,~------. ------~-- ..... ~ ...... ~- MWH PEHCENT MWH • LOAD FACTOR ' • MV'J NCP DEMAND ' COINCIDENCE FACT • MW (CP) DEMAND* • • MW _(NCP) DEMAND '• MW (CP) DEMAND• * * MW (NCP) DEMAND · • MW (GP) DE AND• YEAR SALES LOSSES PURCHASI SUMMER WINTER SUMMEH WINTER SUMMER WINTER SUMMER WINTER • SUMMER WINTER SUMMER. WINTER ------n_,. ______,.,....,,_~-- •, • SUMMER WINTER SUMMER INTER .--- ~--~-----~----- _____ ,. --- 2011 1202077 5.15 1276017 73.2 98.42 198,99 148.00 '0.98 0.98 195.01 145.04' 211.11 165,53 210.05 164.70 . 194.22 154.96 188.39 150.31 2012 1158636 6.87 1238456 72. 91 196,36 155.36 0,98 0.98 192.43 ·152.25 • 204,89 160.65 203,87 150.85 . 188,60 150.40 182.85 145.89 2013 1155410 6.87 1234793 72 91 195,76 !54.90 0,98 0.98 191.86 151.80 • · 204.29 160,18 .203.27 159.38 . 187.94 149.96 182.31 146.46 2014 1166959 6.87 1247135 72 91 197.73 156.45 0.98 0.98 193,78 153.32 • 206,33 161.75 205.30 160,97 . 189.02 151.45 164.13 146.91 2015 1175793 6.87 1256576 72 91 199.23 157.63 0.98 ·0,98 186.24 154.48 • 207.69 163.01 206.65 162.19 . 191.26 152.60 185.52 148,02 2016 1182811 6.87 1264076 72 91 200.42 158.57 0,98 0.98 196.41 · 155.40 " 209.13 163.DS 208.09 163.16 . 192.40 153,51 186.63 148,91 2017 1189527 6.87 1271254 72 91 201.58 159,47 0,98 0.98 , 197,52 158.28 . 210.32 164.91 209.27 164.08 . 193.49 154.38 187.69 149.75 2018 1195561 6.87 1277724 72 91 202.58 160.28. 0.98 0,96 196.53 157,08 . 211.39 165,75 210.33 164.92 . 194.48 155.17 188.64 ',50.51 2019 ·1202339 6.67 1284940 72 91 203.70 161.19 0.96 0,96 199.65 157,97 • 212.58 1613.69 211.52 165.85 . 195.58 156,05 189.71 151.36 2020 1208803 6.87 1291950 72 91 204,84 162.07 0,98 0,98 200.74 158.83 • 213,74 167.59 212.67 166.76 . 196,64 156,90 190.74 152.19 2021 1215257 6,87 1298751 72 91 205.92 162.92 0.98 0.98 201.ea 159.66 •. 214.87 168.48 213.79 187.63 . 197.68 · 157.72 191.75 152.99 2022 1221440 6.87 1305359 72 91 206.98 163.75 0.98 0,98 202.82 160.48 * 215.96 169.33 214.8B 168.49 . 198,68 158.53 192.72 153.77 2023 1227449 6.87 1311781 72 91 207.98 164,56 0;98 0.98 203.62 '161.27 • 217.02 170.17 215,94 169.32 . 199,66 159.30 193.67 154,53 2024 1233290 6,67 1318023 72 91 208.97 165.34 0.98 0.98 204.79 162.03 • 218.06 170.98 216.97 170.12 . 200.61 160.06 194,59 155.26 2025 1238972 6,87 1324096 12 9! 209.93 166,10 0,98 0,98 205.74 162.78 . 219,06 171.76 217,97 170.91 . 201.64 160.80 195.49 155.96 2026 1244509 6.87 1330013 72 91 210,87 160.84 0.98 0.98 206,65 163,61 . 220.04 172.53 218.94 171,67 . 202,44 161,52 196.36 156.67 2031 1266397 6.87 1353405 72 91 214,58 169,78 0.98 0.98 210.29 166.38 • 223.81 175.57 · 222.79 174,69 . 206.00 1e4.3e 199.82 159.43 2036 1286288 6.77 1373376 72 91 217.75 172.28 0,98 Q.98 213.39 168.84 • 227.21 178.16 226.08 177.27 . 209.04 186.79 202.77 161,78 2041 1305008 6.77 1393363 72 91 220.02 174.7Q 0.08 · O.il8 216,$0 ·171.30 • 230.52 160,75 229.37 "179.85 * 212.08 169.21 206,72 164.14 • @61t%L.F @.88%L.F @.996col/J @.(195ooin • @7~%L,F @94%L.F ~.97coln. @97coln. . Factor Factor Filclor Factor . Factor Factor Facio,· Fa tor ---· - ---~5~~~-~~-M- AV.YRL Y.INC ----·---· 2011-21 1316 2273 0.692 1.492 0.678 1'.462 2011-2041 3431 3912 0,731 0.893 0,716 0,875 ANNUAL COMPOUND GROWTH 2011-21 0.11 0,18 0.84 0.97 0.34. 0.ll7 2021-2041 0.36 0.35 0.35 0.35 0.35 0.35 2011-21 0.27 D.29 0.35 0.56 0,35 0.58 ______.,.,., ...... __ .,,.., ____ --- Note : High-low NCP demands are based on + er• 3% of the medium load factor and CP demands are based on+ or• 2% of medium Coln. Factor to take oare of weather related variance. Any new large commercial load will have a direct Impact or, Iha forecast • Based on Table-7 & 15.low.wet year. ..

Load Forecast Study 2012 LEA COUNTY ELECTRIC COOPERATIVE.

4. LOAD FORECAST STUDY - Conclusion

This cooperative serves East Central of New Mexico and is 50 miles west of Lubbock, TX. Co-op service area population has peaked in 1985 to 18,600, nnd currently it is 16,900.

During the last twenty years, number of residential meters has consistently increased, with the exception of 1999 period when it lost a few. It is expected that ~o-op ·service area will see some population growth and should add 10 - 50 residential meters per year in the future (see Table--7). This co-op has also seen inc;rease in residential consumer usage from 8,000 kWh per year in 1990 to 12,000 kWh in 2011. It is expected that annual usage in this class will increase to 17,000 kWh in the future.

Number of irrigation consume:r5 and their annual energy use historically has been increasing historically in spite of weather fluctuations. It is assumed that nµmber of consumers wilhncrease by 20 per year. Annual energy use is assumed to be.90,000 kWh for normal year with some increase per year. · ·

Number of small commereial has increased consistently with' some exception~ of years (1980-1985) when average increase was 120 per year (see Table-7). Annual usage for this class have been erratic with the increasing trend as shown in econometric section but estimated to be stable at 16000-22000KWh for the future.

Large commercial class number and usage is unpredictable. Usually, latest available information is used to predict its load growth. ·

Annual growth rate for energy and demand are shown in Table-22. In the table, high low forecasts as shown are dependent upon extreme weather or some unforeseen conditions. Table-22, high and low are based on high and low consumer growth predictions.

This is co-op has petroleum driven economy followed by fanning. Commercials account for 30% of the consumers with 70% of energy sales. Irrigation consumers make up 16% of total with 20% of energy sales. Residential class constitutes 53% of con..<.'Uillers with nnly·. '" giv" l i) of,. !he", "" frrl·ll, ,. ,(. e1wro)1, ../ ·t:.) '-s-1Ic,·,( ,'). ·

Outlook: Future possibility of grow(h potential is frorn oil/gas related :toads fbUo,vcd by :frmn:ing .. flrowth in lhe near fi.1tmc fa possibk: ducto expansion of CO2 compression statio1\, Sandridge operation8 and. .t'Cllpt·niug of the dairy in Lovington. . . Lea County Electric Cooperative MWH S~les - Forecast Comparision

1,800,000 I I i I I ; I 1,600,000 I ~l I ; !<$, ,_ IA : i • ;;; 1,400,000 !V ,s~f t •• IGj • ~ -0 ,e el. ;~ 2; Ill! I.!! , 11200,000 -a-ACTUAL 1. ii ·t en ·:·• -m-Wet&low (I) I i•··i ro. 1,000,000 l!l!I I_ Econ. ,· Cl) -· ~-Dry & high :c 800,000 • .. •• Econ. s •..., -..-LFS10 ~ II 1. _. • I 600,000 .. •• i i 400,000

!! . 200,000 ' ' i I • j - ...... -· - ... 0 . . I 90 0 10 20 30 Year 5. ! :

Description of Econometric Variables Acronyms

C = Constant RESx = Historical Residential consumers served by the distribution cooperative X = Suffix to designate distribution cooperative ( see Table - Suffix) POPx = Population of the service area · Dxxx = Dummy variable

RESxF = Projected number of consumers served by the distribution cooperative RKWHx = Historical Residential annual KWh use per year HDDx = Annual Heating Degree Days CDDx = Annual Cooling Degree Days RCOSTx = Residential Price ofEleetrioity PCJx = Per Capita Income HSATx ::::: Electric Heat Saturation ASATx = Electric Air-Conditioning Saturation RKWHxF = Projected Residential annual KWh use per year

NFEMPx· = Non-Farm Employment FEMPx = Farm Employment 1-ITNEMPx "" Mming- Employment

SKWHx = Historical Small Commercial annual KWh use per year SCOSTx "" Small Commercial Price of electricity · OIL = Average Refiner's Acquisition Price of crude oil per barrel LP = Average price of LP gas SKWHxF = Projected Small Commercial annual use per year

IRKWHx = Historical Annual Irrigation KWh Energy µse per year PPTx = Total Rainfall (inches) from June - September EVOPx = Total-?vaporation (hundredth.of an inch) SWPPT = Total Southwest Oklahoma Rrunfall (inches) from June - September SWEVOP == Total Southwest Oklahoma Evaporation JRCONx = Total number of Irrigation consumers IRCOSTx = Irrigation class Price of Electric~ty IRKWHxF. = Projected annual Irrigation KWh Energy use per year x:x:xlVIW == Il.oudy peak 1\,1. W xx:(TE.MP === lTou:rly CJ'em1>en1lure. Dl, D2,, D3,, JJ4 and D5 ==== lJumrr1}' Variables ( J .. .S) .for each hour of the day, E and N ::, Dun11ny Vnri!lb!.es frir \:Vcekend And .Nigh!. I ' . I

Dependent Variable: RES22 Method: least Squares Date: 06/21/12 Time: 14:03 Sample(adjusted): 1991 2011 Included observations: 21 after adjusting endpoints Convergence achieved after 8 iterations

Variable Coefficient Std. Error t-Statistic Prob.

C 5343.897 2959.481 ·1.805687. 0.0877 : POP22 0.165466 0.127505 1.297723 0.2108 : AR(1) 0.927551 0.058786 15.77854 0.0000 ' R-squared 0.968829 Mean dependent var 7251.667 ; Adjusted R-squared 0.965365 S.D. dependent var 530.0320 S.E. of regression 98.64122 Akaike info criterion 12.15242 Sum squ?red resid 175141.6 Schwarz criterion 12.30164 Log likelihood -124.6004 F-statistic 279.7269 Durbin-Watson stat 2.654101- Prob(F-statistic) 0.000000

Inverted AR Roots .93

r------.-8500 8000 7500 7000 300 6500 200· 6000

1 0 0 -<-----··

.... ·100 ....

..... ') ('i (') 4- .) ...... t-.---r--,r-,---,---,-.,---,--,----,--,----,----.--,---,---,---,-.,---,----,1 cg. t,1, (IC' t ,.A) 9B 00 02 04 OG 08 '10

1 1·r.: '\. e,.,,,.. ,,:;)<::.' ·1 c•J.. ~ L1, Cl•:::i I 1 A.ct1... ~ """ J·".:11(,.,Ii ...... F..... ·1 lo·1,::::,.cj Ii.:;.: .... I : -.1

RES22F - ... - -- Last updated: 06/21/12 -14:05 Modified: 2012 2040 // forecast(f=actual) res22f

1965 NA 1970 NA NA NA NA NA 1975. NA NA NA NA NA 1980 NA NA NA NA NA 1985 NA NA NA NA NA 1990 6271.000 6337.000 6372.000 6698.000 6716.000 1995 6798.000 · 6859.000 6893.000 7185.000 7164.000 2000 7201.000 7221.000 7240.000 7305.000 7366.000 2005' 7432.000 7591.000 7730.000 8012.000 8020.000 2010 8041.000 8104.000 8138.360 8171.234 8202.841 2015 8232.826 8261.472 8289.140 8315.617 8340.921 2020 8365.343 8388.582 8411.280 8432.813 8453.716 2025 8473.756 8493.071 8511.530 8529.364 8546.488 2030 8563.074 8579.031 8594.606 8609.540 8624.027 2035 8638.324 8652.239 8666.141 - 8679.491 8692.694 2040 8705.961 ,.

9000-,------.

8500.

8000

7500

7000

6500- ,, ,,,.,,·

f3 0 00 ., .... T'T""[""T'""I I I I I I ' I 'T77""1'""'i"""l''"T"T"""f"'T'"T""T"""T'"T'"T"T"T""r·r""l"""l"""i""T""'l"""f"""l"""l"""T'""l"""'l"""l"'"'i"""j"""l""'1""'1"""1""" 90 cg-r;) (')('). . (")F.. ~) ' 1(").. ,·1r ,J ,?')..... I.. ?r, ..... ,) <}0() ... ,·r35 ,.. 4('),, ... Dependent Variable: RKWH22 Method: Least Squares Date: 10/10/12 Time:-14:47 Sample(adjusted): 1991 2011 Included observations: 21 after adjusting endpoints

Variable Coefficient Std. Error t-Statistic Prob.

C 434.7687 726.7878 0.598206 0.5586 RKWH22(-1) 0.867425 0.046437 18.67946 0.0000 RCOST22(-1) -22.46836 _ 4.962742 -4.527408 0,0004 HDD22 0.349795 0.091977 3.803052 0.0017 CDD22 0.628410 0.089386 7.030295 0.0000 OIL 10.85109 2.052443 5.286914 0.0001

R-squared 0.995957 Mean dependent var 9530.767 Adjusted R-squared 0.994609 S.D.dependentvar 1199.278 S.E. of regression 88.05775 Akaike info criterion 12,02882 Sum squared resid 116312.5 Schwarz criterion 12.32725 Log likelihood · -120.3026 F-statistic 738.9331 Durbin-Watson stat 2.556232 Prob(F-statistic) 0,000000.

r------13000 12000 11000 10000 9000 200 8000 100-

O-i-t------"r----+--\::;,,.L------",-'1:---,L---\--+----\-+--~ -100- - -F

-2 QQ · 1--1r--,---,-1 ---,---,--.--.---.--...---,--...... ---.---.----,----.----,-.--...-...--,1 92 94 913 gg 00 02 04 OB oa '10

r·-··-- F~esidua! ...... Actual ...... Fitted I .. !

RKWH22F

Last updated: 10/10/12 -14:47 Modified: 2012 2040 // forecast(f=actual) rkwh22f 1965 NA 1970 NA NA NA NA NA 1975 NA NA NA NA NA 1980 NA NA NA NA NA 1985 NA NA NA NA NA 1990 8059.321 8157.102 8236.577 8252.635 8418.273 1995 8204.837 8499.594 8700.657 8790.368 8769.891 2000 9294.331 9488.066 9635.631 962s:sa2 9760.748 2005 10052.81 10058.16 10474.64 10849.16 10873.05 2010 11563.00 12438.00 12778.82 13062.49 13313.63 2015 13513.69 13643.01 13763.30 13829.44 13869.85 2020 13905.97 13936.11 13961.90 13678.78 13376.82 2025 13132.60 12910.86 12897.86 12835.67 12777.01 2030 12726.25 12671.27 12600.22 12515.03 12423.38 2035 12326.61 12225.94 12122.31 12016.52 11909.27 2040 11801.13

15000--i------.

14000

13000

12000

11000

10000

9000 /,.,...... ,/\,...,/ ,,., ...... BOOO --;-r·-r"T"T"T""T""'l""'T""T""'"l"""1""',,r--r I I I I I I 1 177--r-rr-rr·-·r•·T""T""T"'"T""T'""l"""l'"'T""'l"""l"'T"T'.. ]'"' I"" 1'"'1""1'"'

qo..... , ()t::·,.:;i,J (")()·• .. (')f.:. 0 1 ('). ··1 .,.)1~· ·2"•.... t')\. 25,... ·,J.~() ,35... , '"i"AQ

"•"••··· I\!\.c,11·w11····,n1····-- ...... ::::'.L ... Dependent Variable: RKWH22 _ Method: Least Squares Date: 10/10/12 Time: 14:49 Sample: 1990 2011 Included observations: 22

Variable Coefficient Std. Error t-Statistic Prob.

C -347410.4 24480.61 -14.19124 0.0000 YEAR 178.3925 12.23718 14.57791 0.0000

R-squared 0.913984 Mean dependent var 9463.883 Adjusted R-squared 0.909683 S.D. dependent var 1211.691 S.E. of regression 364.1462 Akaike info criterion 14.71950 Sum squared resid 2652049, Schwarz criterion 14.81868 Log likelihood_ -159.9145 F-statistic 212.5153 Durbin-Watson stat 0.499275 Prob(F-statistic) 0.000000 I ,.

Dependent Variable: RKWH22 Method: Least Squares Date: 10/10/12 Time: 14:43 Sample(adjusted): 1991 2011 Included observations: 21 after adjusting endpoints

Variable Coefficient Std. Error t-Statlstic Prob. ' _c -2165.671 876.6633 -2.470356 0.0251 RKWH22(~1) 1.088988 0.032776 33.22525 0.0000 RCOST22(-1) -16.54857 7.921463 -2.089080 0.0530 HDD22 0.514818 . 0.141756 3.631728 0.0022 CDD22 0.575296 0.145525 3.953240 0.0011

R.'.squared 0.988422. Mean dependent var 9530.767 Adjusted R-squared 0.985527 S.D.dependentvar 1199.278 S.E. of regression· 144.2768 Akaike info criterion 12.98560 Sum squared resid 333052.9 Schwarz- criterio·n 13.23430 Log likelihood -131.3488 F-statistic 341.4751 Durbin-Watson stat 2.037908 Prob(F-statistic) 0.000000

r------,-13000 12000 11000 10000 9000 200 8000 100

0 -+--+-----x-----1---\---1---+-----+------t---f--l -100

'"""'L·'"'00' .....

O')'li,,1,i.,.,., ')'"> (')Q 98 00 ('t.... 04 Ofi " t.) 10

Hesidual ...... ·A;;t:-~ .. ;;;I ...... Fitted I -.!

RKWH22F

Last updated: 10/10/12 - 14:44 Modified: 2012 2040 JI forecast(f=actual) rkwh22f

1965 NA 1970 NA NA NA NA NA 1975 NA NA NA NA NA 1980 NA NA NA NA NA 1985 NA NA NA NA NA 1990 8059.321 8157.102 8236.577. 8252.635 8418.273 . 1995 8204.837 8499.594 8700.657 8790.368 8769.891 2000 9294.331 9488.066 9635.631 9628.582 9760.748 2005 10052.81 10058.16 10474.64 10849.16 10873.05 2010 11563.00 12438.00 12935.62 •'13470.23 14050.32 2015 14665.54 15301.87 16001.95 16739.80 17535.88 2020 18410.42 19370.57 · 20425.95 21361.90 22352.15 2025 23457.24 24667.64 26132.88 27706:69 29433.12 20~0 31329.69 33403.78 35662.20 38121.41 40799.37 2035 43715.62 46891.44 50349.93 54116.25 58217.79 2040 62684.37

70Ob6-r------.

60000·

50000

40000

.30000

20000

10000

0 ..... ······rT···r-.,.... r .. r""t"""T'"'!""TT"r·1···r·r·1 I I 6 I I l"""i I l l . I I ""j'"T""l""T"'l"""T"'r--r···-r""'l"""t""T'"r" r···r T"T""ll'f'""[""T"" 90 95 00 05 10 15 20 15 30 35 40

RKVVl·····l22F I I..... _'______,_ Dependent Variable: IRKWH22 Method: Least Squares Date: 10/10/12 Time: 14:51 Sample: 1990 2011 Included observations: 22

Variable Coefficient Std. Error t-Statistlc Prob.

C 169482.6 22366.23 7.577611 0.0000 PPT22 -7.107029 2.527436 -2.811952 0.011"5 IRCOST22 -1466.543 331.1693 -4.428378 0.0003 OIL 297.1283 72.69830 4.087142 0.0007

R-squared 0.700985 Mean dependent var 72198.05 Adjusted R-squared 0.651150 S.O. dependent var 12600.68 S.E. of regression 7442.411 Akaike info criterion 20.83074 Sum squared resid 9.97E+08 Schwarz criterio11 21.02911 Log likelihood -225.1382 F-statistic 14.06591 Durbin-Watson stat 2.512016 Prob(F-statistic)- 0.000058

r------120000

/, 100000 // _,...,,f~-- \ 'JII/ /'• {/,\/ l\ J ,\ ✓ \ A ' / \ I I/ \, ,'\ ,.,\ r_,.c.... , \ ,' \ / ./ ,J 80000 1 20000 r l /' ~\ / ,/ \ , I , 1I / \..,. '/'-' /l \ / ✓ \ \ • / /~'- / /f-----::.,,....,_ ,~ ~-v / // . ', ',, ?,, ·,,1, ~-, //,/ '\~vf, \ / \/ \ >I \ : \. \. \ I ,_,.... ":I. '--"\-✓ / 'l- \/ ,,, \ , 60000 \ , 10000 \ / ------'v···------40000

-10000

0 ') no 02 f)4 .9f~_, ... ;1 s"" O.:~ 04 06 08 10 ,...... I{esidual ...... /\.ctual ...... Fii:1:~;;;ci I IRKWH22F

Last updated: 10/10/12 -14:52 l Modified: 2012 2040 II fit(Factual) irkwh22f

1965 NA 1970 NA NA NA NA NA 1975 NA NA NA NA NA 1980 NA NA · NA NA NA 1985 NA NA NA NA NA 1990 63409.00 63699.71 45023:11 67449.46 81487.22 1995 71580.84 68242.09 59412.38 79665.87 58540.75 2000 81738.60 64554.41 . 73502.14 83375.53 70343.96 2005 63191.61 81745.19 59688.29 84147.96 88757.98 2010 77182.00 101619.D 87745.56 87502.42 86258.62 2015 83403.43 84075.28 81857.55 81065.57 81553.04 2020 81988.72 82533.46 63253.77 60250.89 62153.84 2025 62262.16 74770.41 72279.00 72808.74 73676.22 2030 73841.46 73193.73 72548.07 71901.32 71417.12 2035 70950.45 70495.37 70052.15 69620.11 . 69199.15 2040 68788.87

1·10000

:•.,.....,: 100000

90000

80000

70000

60000

50000

1·· ·························· !HKWr ..:~??~J I '

Dependent Variab[e: IRKWH22 Method: Least Squares Date: 10/10/12 Time: 14:54 Sample: 1990 2011 Included observations: 22

Variable Coefficient Std. Error t-Statist.ic Prob.

G -2139852. 713314.2 -2.999873 0.0071 ✓ YEAR 1105.748 356.5662 3:101103 0.0056

R-squared. 0.324709 Mean dependent var 72198.05 Adjusted R-squared 0.290944 S.O. dependent var 12600.68 S.E. of regression 10610.46' Akaike info criterion 21.46358 Sum squaretl resid 2.25E+09 Schwarz criterion 21.56276 Log likelihood -234.0993 F-statistic 9.616841 Durbin-Watson stat 2.419215 Prob(F-statistic) 0.005631 -.1

o~oo-\Uiage---:.

Year med. ppt. high ppt. Low ppt. dif. {high-medium) r dif. (low-med) ppt. 1990 63409 63409 63409 0 0 1991 53700 63700 63700 0 0 1992 45023 45023 45023 0 0 1993 67449 67449 67449 0 0 1994 81487 81487 81487 0 0 1995 71581 71581 71581 0 0 1996 68242 68242 68242 0 0 1997 59412 59412 59412 0 0 1998 79.,6~6 79666 .79666 0 0 1999 58541 58541 58541. 0 0 2000 81739 81739 81739 0 0 2001 64554 64554 64554 0 0 2002 73502 73502 73502 0 0 2003 83375 83376 83376- 0 0 2004 70344 70344 70344 0 0 2005 63192 63192 63192 0 0 2006 81745 81745 81745 0 0 low pp!:=693 2007 59688 59688 59688 0 0 high ppt=3361 2008 84148 84148 84148 0 0 avg ppt~1655 2009- 88758 88758 88758 0 0 2010 77182 77182 77182 0 0 2011 101619 101519., 101619 0 (l 2012 87746 75870 94831 -11876 7086 2013 87502 75627 94588 -11876 7086 2014 86259 · 74383 93344 -11876 7086 2015 83403 71528 90489, -11876 7086 2016 84075 72199 "91161 -11876 7086 2017 81858 69982 88943 -11876 7086 2018 81066 69190 8'8151 -11876 7086 2019 81553 69677 88639 -11876 7086 2020 81989 70113 89074 -11876 7Q86 2021 82533 70658 89619 -11876 7086 2022 63254 51378 70339 -11876 7086 2023 60251 48375 67337 -11876 7086. 2024 62154 50278 69240 -11876 7086 2025 62262 50386 69348 -11876 · 7086 2026 74770 62895 81856 -11876 7086 2027 72279 60403 _79365 -11876 7086 2028 72809 60933 79894 -11876 7086 2029 73676 618QO 80762 -11876 7086 2030. 73841 61966 80927 -11876 7086 2031 73194 61318 80279 -11876 7086 2032 72548 60672 7963,:1 --U.876 708G 20:.l3 71901 G002S 78987 --ll87fi 71J8(i ?0]4 71417 59:itll 78503 -11876 708G -~.03S 709!'.iO 59075 78036 ··l"187G 7086 203f> 7fJ.1~lS S8620 Tl':i8l --1.187G 7086 · 7.0::!7 700S2 S8l76 l7l38 -l:l876 7086 )038 6!:lfi;>O S"/144 7670G --118/G 7r)8Ci "2039 691'")9 Sl:12,I 7628.r.) -·118/C, 70/36 204() fi87H9 S69'f.3 7S8-/.S --.11876 7086

"'12000 "' 7000 . Dependent Variable: SKWH22 -.• Method: Least Squares Date: 10/10/12 Time: 14:56 Sample(adjusted): 1991 2011 Included observations: 21 after adjusting endpoints

Variable Coefficient Std. Error t-Statistic Prob.

C -23451.78 12640.44 -1.855297 0.0810 HDD22 6.585858 3.224721 2.042303 0.0569 GAS 1073.026 468.8372 2.288697 0.0352 SKWH22(-1) 0.960744 0.084432 11.37895 0.0000

R-squared 0.916829 Mean dependent var 87837.56 Adjusted R-squared 0.902152 S.D.dependentvar 11042.42 S.E. of regression 3454.141 Akaike info criterion 19.30218 Sum squared resid 2.03E+08 Schwarz criterion 19.50114 log likelihood -198.6729 F-statistic 62.46630 Durbin-Watson stat 1.923936 Prob(F-statistic) 0.000000 -

r------1200OO

8000

4000 70000

') (")O D2 94 96 BB 00 O'.~. 04 . ~..) oa '10

-- RcJs1dual ·...... /\ctual ...... f-·· 1tted I : I

SKWH22F

Last updated: 10/10/12 - 14:57 Modified: 2012 2040 II forecast(f=actual) skwh22f

,. 1965 NA 1970 NA NA NA NA NA 1975 NA NA NA NA NA 1980 NA NA NA, NA NA : · 1985 NA NA NA NA NA 1990 77746.90 76235,:99 78457.39 86450.87 81719.11 1995 81816.88 82874.63 82538.56 79353.32 75518.97 2000 75919.76 80249.46 82376.37 85326.12 88990.42 , . 2005 95175.56 91549.61 91105.76 102473.4 106436.7 2010 108379.0 111641.0 111835.8 111964.6 112026.9 2015 112024.2 111958.9 111833.9 111651.6 111413.9 . 2020 111122.5 110780.2 110389.4 109951.7 109468,6 2025 108942.1 108375.5 107771.5 107131.9 106459.1 2030 105756.2 105026.0 104270.7 103492.4 102693.1 2035 101874.7 101039.1 100188.3 99323.98 · 98447.88 2040 97561.58

1-20000-.------,

110000

100000

90000

80000 h

c, KW"""" H')'")r::···1 ··••¥•- , ..-., \ t~,, ,~~. r..

I : .·.

SAMPLE FORM 1. BORROWER DESIGNATION New Mexico 23 Lea 2. NAME OF CONSUMER INDIV1DLIAL LARGE CONSUMER DATA top 10Toa.l 3. DATE -----1 Tiii:i",TRUGTlONS . :,eeinstructions Tat.:, M:.irch 7, )012 4. Typ,:: o'f B1.1si1mss (Gfve details)

s.fi:.1111(! of 81:pp!y Substation(s) 6. Is consun'!er·bii'ied on a demand and energy · 7. l·1ate Applicable type rate? ! f YES NO 8. MONTHLY CONSUMPTION (kWh) AND DEMAND (kW or kVA} PRIOR TWO YEARS BASE YEAR 5 - YEAR PROJECTION 10 - YEAR PROJECTION Month KYJJgP..Q.~=t:%t::#ifit=c: \/fr\:•:=H\'.?0.1_9}@¥@V'/' 2011 tfatf%W&.W)~t1.>f/:?f?Wt

Marcil a o o a 23,7:m,onG 4G,o:,1.1 o 0 0 0 April a o o o 26,673,995 46,897 o 0 0 0 May o o. a o 26,354,854 43,969 o 0 0 0 June o o o a 2s,5oo,54B 43J63 o 0 0 0 July 0 0 0 0 25,637,622 42,926 0 0 0 0 J\uqust ... a a o a 2s,4n:'l,::.inti 41/JB3 o 0 0 0 S·0ptc,ml1Pir 0 0 U · 0 25,S:Jt.i,374 44,::133 0 0 0 0 0 0 0 -1--0___ 2~4,3'./~,/0B •lG, 185 0 0 0 .0 - 0 0 0 0 28,IY!O,f.l4G 52,!J48 0 0 a 0 December o o o a 2s,on,111 4e,as2 o 0 0 0

9. Total Connected Load This Consumer 1 o. 1rans armer ::;12e (Kv111 11. Minimum Bill Per Month 1------...... ------·' 1:2. Corrm,mits (Use an additional shee1 if more space is needed)

Version 4, 12/01/2004 Lond Management Programme Whal Lea County lncentlye Curtallable Loads to List Curtallable load's cutailable demand Curtail Haw many Total Peak in KW and !heir sal'llloe substation: Rate/ at peak daily curtallnble ts ~m~nd Name of Load Subsiallon KW curtailed / on call eto. curtailed 1 Pride Energy Co Dallas 207 $1.66/KW/Month Pasa-through from Xcel Energy 1998 6 22,410 2 Samson Reaources Dallas 761 lli1.85/K\/Y/Month Paaa-through from Xcel Energy 22410 17055 1999 6 22,410 - 3 XTO San Andres 21J4 $1.85/KW/Month Paas-through from Xcel Energy 2 6 2000 6 22,410 4 Apacha Corp. Vacuum 32 $1.85/KW/Month Paaa-through from Xcel Energy 44820 102330 2001 6 22,410 5 Chevron Vacuum 13921 $1.85/KW/Month Pesa-through from Xcel Energy 20U2 6 22,410 6 Phillips Petroleum Lee 5355 $1.85/KW/Momh Pass-through from Xcel Energy 2003 6 22,410 2004 6 22,410 2005 5 17,066 2006 5 17,0~6 2007 5 17,0~0 2008 5 17,01515 2009 5 17,0~0 2010 5 17,055 2011 5 17,055 2012 2013 2014 2015 2016 2017 2018 2019 2020 · TABLE· Flnanci~l.1 LEA COUNTY ELECTRIC COOPERATIVE PROJECTED MWH SALES & REVENUE BY CLASS ------···· -·········-· ------· ----········---·· -----······ ---- ··------·· ---··•·· ····-·-·-·· ····-·-·· ------·-··· ------Residential itwnu ***** Irrigation **"** s.commerctal •***** ***** L. Ccmmerdai Others TOTA SALES Reven e YEAR MWH Mills/KWh Revenue ' MWH Mills/Kwh Revenue $ MWH Mills/Kwl Revenue $ MWH MIiis/kw Revenue $ MWH. MIJ!s/Kwh Revenue$ MWH s ...... -----·······-- ·······--·· ----········-···· ---····-··· ------·····-··-··· ···-·-· ----- ·---.------2011 100798 8.11 8,174,6B1 255877 6,86 17,563,136 509976 6.79 34,627,376 322440 5.53 17,830,932 12987 8.07 i,048,029 1202077 2012 103999 8.39 8,726,496 241110 7.66 18,458,838 513032 7.53 38,642,307 330000 5.53 18,267,297 13000 8.35 1,085,446 1201141 2013 106737 B.65 S,233,067 230220 . 7.89 18,173,103 515698 7.77 40,0~1,786 346500 5.71 19,780,722 13050 8,61 1,123,302 1212204 2014 100207 S.03 9,861,062 234869 8,25 19,378,482 517868 8.i:2

TABLE• Flnanclal.2 LEA COUNTY ELECTRIC COOPERATIVE PROJECTED% DISTRIBUTION OF SALES & REVENUE OF THE TOTAL --~~-_,._.,_,. -~-_,_,__,._, ...... -~-.. ., .... __ .,_,.~ .. - __ ,,,_ ...... -...... _...... ~ .. -...... __ .. _.. - ...... ~ ..... RESIDENTIAL . IRRIGATION S, COMMERCIAL L. COMMERCI, OTHERS TOTAL

YEAR MWH REV. MWH REV. MWH REV. MWH REV. MWH REV. MWH REV. _.,...,,._ .. _,._,. -...... ___ .,,.. _,. __ ~_,._.,_ .. ___ ,.., ...... ,..,_., __.,,.,.,. _,._., ___ mm .,~,. .. _,._,. ___ ,______, __~,.m- 2011 8.39% 10.32% 21.29% 22.15% 42.42% 43.70% 26.82% 22.50% 1.08% 1.32% 100.00% 100.00% 2012 8.66% 10.25% 20.07% 21.67% 42.71% 15,37% :27.47% 21.44% 1.08% 1.27%, 100,00% 100.00% 2013 8.81% 10.45% 18.99% 20.57% 42.54%· 45.33% 28.58% 22.39% 1.08% 1.27% 100,00% 100.00% 2014 . 8.92% 10.66% 19:19% 20.75% 42.33% 45,03% 28.49% 22.40% 1.07% 1.26% 100.00% 100,00% 2015 9.01% 10.61% HM1% 20.92% 42,11"/, 44.70% :28.41% 22.52% 1.06% 1.24% 100.00% 100.00% 2016 9.06% 10.67% 19.63% 21.17% 41.90% 44.49% 28.35% 22.44% 1.05% 1.23% 100,00% 100.00% 2017 9.10% 10.68% 19.87%. 2Ul9% 4UiS% 44.16% 28.31% 22.63% 1.04% 1.22% 100.00% 100,00% 2018 9.11% 10.68% 20.11% 21.64% 41.46% 43.S3% 28.28% 22.55% 1.04% 1.21% 100.00% 100.00% :2'.0''lB O.'l{i% 'i0.7E1 1% ::::'.O.afi% :!'I.DO% 4·1.·1!)% 4:l.!lf;% ~2l3.~M% ~!~:.47 1}t.:1 '1,(),(1% 11.,;to1% '1.C):Cl,,00% 11 (l(l.i:11)% ::::c,:w !:l,;tl% 'IO,f.!:1% 20.~)U% :t?..':16% ,rn.0:1% 4:3,a7% ~2!3.~W% ~~,:. ~1121i~,;:1 ·l,02'% ·11 •. ~ti:1% ~,D0,,00% 1100,.00% ;2:0:2·1 !~.~M% '.llUl,,1% 21J.lJ4% ;~;?..44% 40.!i:!% 4:l,ml% w:.-1e% ~::;:,,::~1·1 %1 ·1.0:~:% "1!,'1!~1% '1CiCl,,CG% ·1100 .. 00% :2:0:12 1).4,!% '.IO.EIO% 2'l.O!l% 2:~.4~!% 40,:l,!% 4:1.:l4% :~H.''lt)% ~:~1.2e% 'I.Cl1% 1: .. 16% 1CI0,1Jll% 11(1(1::1;10% 2c-:2:3 0.60% ilO.Eli:1% :2:·t.a4% 2:?.07% 40.0!~% •l'Ul7% :W.'14% ~:21,:~17%1 ~I.DO% 1:,14% 'I CICl,ilil% 11Clll.CIO% ;,1l:'.4 !/Jjf!% 11Cl..Di9:% ;2"!,60% ~?!?.Hi'% :lll.i'D% A'l"l,B7%i !2H,.~:~1% ~:~1 .. :~11~,% ~I.DO%, 1.,14% 1 DO..lJO% 11CIO .. Oll%

:W~?.b D. 1El1e1% 1 'l.0!3% :?.Ult,% ~rn.,~t.Ei% ~H),87'% 4'1J,~!% 2U.1:2'.% :~::~1.:2,;~% 0.,'~IH% 1.·!:3% 11,,0.()()% 100.llll% :m2G H.7fi% 11..:J,6% !~!?. ,1~~'% 2~1.71%· ~)~l.Oa% 4'1,2~~% 20.·12% ;(.(2,!J7% O.,'S11;·% 1.14% 101),()()% 100.IJ!l% :w"·;1 '!Cl.:~(1 1?{1 11 .. 00% :2:~,fifi'% ~:fi.:a:~l% ~~7A,ei'% aH .. fi~~'% ~?7,7:2'.% :~~2.·1::1% 0,,·:17% 1.,·t:?..%, 11J11),()I)% 100.00%

:W,>ti 'ICl, 1El1el% 12.,4:~%1 2f>.~~e>'% 27.00% at).Y:~i'% a·;r,fi~I'% ~!7AO% :~(·1,l34% 0.,:;:16% 1.. ·tO%, 1GIJ,00% 1Q0,00% :204~1 ·1 ·~1.·1 .~1% 1:,'.,illl% ;~().~)··1,·% ;!,i .. 7:21% ,l,UIEI% ati.t~4'% ~!7."12%1 :~:·1,6H% D,,:~1a%. 1,0l.l% 101J.0()% ·100.00% •••••'""'"'"''"', "•"""'~"''"'' •••""'""""""'"""'"'""'""""" ,.,, ,.,,._,,., ..,~~""" ""''""~""'"'""'"--~•-••'"• .,.,.,.,.,, ___ ,__ ,,.,,., "'"''""''"'"'"'"'"'"'"' ~ •• .,,,ww,.•••••"•'•'•"'"~ '"'"" ~'""""'•~•n•'""'"'H "•••••"'""'""'"'~"' ,.,n.,~••••••••••----••••••.,••- -"•""'"'""'"'''"""'~""'"" '~"'"'"'"'"'""'"'""""'"'"'' ,,.,.,,,,.,,.,o,o,,o1,, ...... , •• TEN YEAR FINANCIAL FORECAST BOARD RESOLUTION

LEA COUNTY ELECTRIC COOPERATIVE, INC.

APPROVAL OF TEN YEAR FINANCIAL FORECAST

WHEREAS, The Ten (10) Year Financial Forecast for the period of 2013 through 2022 as prepared and included with this loan application is an acceptable projection of the financial trend and conditions of Lea County Electric Cooperative, Inc.; and

WHEREAS, the Board of Trustees of Lea County Electric Cooperative, Inc. has reviewed the attached Long Range Financial Forecast prepared by SGS Engineering, LLC and Cooperative's staff; and

WHEREAS, the Financial Forecast includes estimates taken from a previously Board approved Load Forecast and Four Year Construction Work Plan, both of which have been approved by the Rural Utilities Service (RUS); and

WHEREAS, the Long Range Financial Forecast is based upon Board approved policies, operating rules and plans and sets forth appropriate management goals, all of which are acceptable to the Board of Trustees as an overall plan of operations;

NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees of Lea County Electric Cooperative, IJJc. '~qreby approves and accepts the Ten Year Long Range Financial Forecast, as proposed, as a plan of operations, and has -viewed the projected rates which are included in the Forecast and is committed to take whatever action may be necessary to implement such rate changes as may be required, on a timely basis to achieve the goals outlined therein.

CERTIFICATION OF SECRETARY

I, DAN HARDIN, Secretary of Lea County Electric Cooperative, Inc. do hereby certify that the above is a true and correct excerpt from the minutes of the meeting of the Board of Trustees of Lea County Electric Cooperative, Inc. held on the 21sr day of May, 2013, at which meeting a quorum was present.

SEAL 05115/2013 SGS Engineering, LLC Financial Forecast • Ratios - RUS Form 325 A Lea County Electric Coop., Inc. (Base) N 23

•• Last Year•• •• Future Years•• ITEM 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ratios with Additional Revenue 1. Equity 45.1% 42.0% 41. 6% 41. 9% 42.8% 43.6% 44.5% 45.3% 4 6. :;.% 46.8% 47 6% 2. Debt Service Coverage (DSC) 3.97 2.48 2.41 2.19 2.04 1.97 1. 91 1. 94 1.90 1. 86 l. 81 3. Times Interest Earned Ratio (TIER) 8.47 4.02 2.73 2.41 2.32 2.31 2.27 2.29 2.27 2.25 2.23 Revenue Comparison 4. Average Revenue per Mwh $ 61. 45 $ 64.43 $ 66.90 $ 69.48 $ 72.17 $ 75.00 $ 77. 91 $ 81.09 $ 84.37 $ 87.81 $ 91. 42 5. Increase in Average Revenue (Annual) 4.9% 3.8% 3.9% 3.9% 3.9% 3.9% 4.1% 4.0% 4.1% 4.1% 6. Total Utility Plant per Mwh Sold $111. 63 $118 .13 $123.12 $125.50 $125.62 $125.82 $126.15 $126.45 $126. 82 $127.27 $127.79 Ratios to Total Utility Plant 7. Net General Funds 42. 4 % 49.3% 48.2% 48.1% 48.7% 49.2% 49.5% 49.9% 50.2% 50.3% 50.4% 8. Depreciation & Amortization 44. 2% 42.9% 42.0% 42.1% 43.0% 43.8% 44.5% 45.2% 45.8% 46.4% 4 6. 9% Ratios to Consumers 9. Operations & Maintenance $388. 06 $419.37 $439.26 $449.70 $451. 85 $454.18 $456.67 $459.38 $462.33 $465.44 $468.78 10. Administrative & General $193 .19 $193.19 $193.19 $193.19 $193.19 $193.19 $193.19 $193.19 $193.19 $193.19 $193.19 Rate Information 11. Plant Revenue Ratio 7.20 7.46 7.76 7.89 7. 89 7.90 7. 94 7.92 7.93 7. 95 7. 97 12. Rate of Return on Rate Base 6.2% 5.5% 5.2% 5.3% 5.4% 5.4% 5.5% 5.6% 5.6% 5.7% 13. Rate Base= 104% Net Utility Plant/ 1000 $ 84,-977 $ 90, 771 $ 93,173 $ 92,628 $ 92,176 $ 91,821 $ 91,567 $ 91,417 $ 91,377 $ 91,451 14. Required Increase Over Present Rates 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Modified Ratios 15. Modified Debt Service Coverage 2.43 2.38 2.15 2.01 1. 95 1. 89 1. 91 1. 88 1. 84 1. 7 9 16. Modified Times Interest Earned Ratio 3.92 2.66 2.36 2.27 2.26 2.23 2.?4 2.22 2.20 2.:8 17. Operating Times Interest Earned Ratio 2.62 1. 76 1.54 .49 1. 49 1.46 1.48 1.47 l. 4 7 1. 45 18. Operating Debt Service Coverage 1. 86 1. 81 1. 65 l.54 1.50 1. 45 1.47 1. 45 1. 42 1. 39 Pro Forma Balance Sheet - RUS Form 325 B ITEM 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. Assets and Other Debits A Total Utility Plant $134,926,061 $143,200,565 $150,676,835 $154,928,165 $156,311,557 $157,750,284 $159,246,562 $160,802,690 $162,421,063 $164,104,170 $c.65,854,602 59,697,744 61,491,357 63,396,924 6:i, 337,872 67,245,742 69,119,211 70,956,903 72,757,386 74,519,172 76,240,714 77,920,402 B. Accum. Prov. for Depr. ----- C. Net Utility Plant $ 75,228,317 $ 81,709,208 $ 87,279,911 $ 89,590,293 $ 89,065,815 $ 88,631,073 $ 88,289,659 $ 88,045,304 $ 87,901,891 $ 87,863,456 $ 87,934,200 D. Net General Funds 57,186,496 70,558,895 72,626,735 74,474,478 76,083,580 77,556,019 78,806,932 80,205,460 81,487,586 82,625,844 83,607,297 E. General Funds Excludable 146,081 146,081 146,081 146,081 146,081 146,081 146,081 146,081 146,081 146,081 146,081 F. Other Assets and Debits 33,866,080 36,266,091 38,630,082 40,991,585 43,35C,473 45,706,608 48,059,845 50,410,388 52,758,934 55,104,950 57,448,290 -·--·-··,.------G. Total Assets & Other Debts $166,426,974 $188,680,275 $198,, 682,809 $205,202,437 $208,645,949 $212,039,781 $215,302,517 $218,807,233 $222,294,492 $225,740,331 $229,135,868

2. Liabilities and Other Credits A Total Mar1Ji11s &, Equities, 13. l.on9 Ternri D<:1bl: -· HUS ·1. Lono "f ,,,nn D,,,bt -- ;1 11,,, 12, 9'/0 :·::, (it:,fl Cl 0 () () 0 :!. Lonn T,,:rrn Deb:I -- ti%, o () 0 [I (I 0 () IJ :l. Lon,i T!'i 661 1:191, '/4iiJ 6B ,, .l '.i:l, 0 lU 71J, Cl9,, 7911 ·7 l, ti f.11, 14 ·1

0 Tol:al I..On!] T,,,,rrn [),"tit,. HUS :JC, J Ob,r 69:.. Ci~'.j !)tn, ();;o 66 1 BIJlr~,4t1 ;~ 60.,.1~)] 1.0:l,l'.I ti~),F Jf;;;j' 91 ~,) 'i], ,l66,? l.:·j ~~ '/~I., 4'7,1, 1 l.~J

C Lon[I Trnrn Debt CFC l ,: , :HI'-), 3(il L2,3:L"7 1 ~'.]:L 1.1 1 ;~·1.::1 1 :°J!).l 10 1, 1a1,. ·;::1 9,, O:=L]r GJU ·7 ., :'.::;;~ci 1, !5:~'.:0 6, 7]6., ?H 1 :.>, tj/9, 796 4, 4'i'L, 70·1

D Othe1:· Li,EtbiHties ~~ cn~Klits 11 l:i, ~: il 6 ,, (i]',I •~l1Cri9, U(n 41, ()'/ 9, 007 1J1, 0·1:J, 00·1 ~1: .. 1• Oi1 91 OG7 ~[1.,0791'007 41,079,(~07 41,079,007 ,j l, (l"/9, (1(1'/ ,! .I, O'i"', (l(i"/ E. Unarnor1.i,ied Debt Discount I) () () 0 0 u U 0 0 (l F. Total il.iabilities -!, Credits 05/15/2013 SGS Engineering, LLC Statement of Operations - RUS Form 325 C Lea County Electric Coop., Inc. (Base) N 23

ITEM 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. Accural Basis A1. Addit Rev. for TIER & DSC Goals

A2. OpeLRev.&PaLCap(Present Rates) $ 78,114,366 $ 81,872,077 S 85,772,717 $ 89,809,948 S 94,033,133 $ 98,359,761 $103,125,215 $108,053,103 $113,224,599 $~18,656,377 B. Cost of Purchased Power 58,913,0C7 62,447,433 .66,144,960 70,003,391 74,059,993 78,299,708 82,819,173 87,575,822 92,580,621 97,849,6"/4 C. Oper.RevenuelessCostofPower $19,201,359 $19,424,644 $19,627,757 $ ~9,806,557 $ 19,97:3,140 $20,060,053 $20,306,042 $20,477,281 $20,643,978 20,806,703

D. Operations & Maintenance Expense 6,444,026 6,'i80, 458 6,971,767 7,034,020 7,098,763 7,166,095 7,236,121 7,308,947 7,384,688 7,463,458 E. Consumer Acc. & Sales Expense 1,223,729 1,229,305 1,234,640 1,239,737 1,244,754 1,249,692 1,254,471 1,259,010 1,263,550 1,267,929 F. Adm. & Gen. & Other Ded. Expense 2,968, :i81 2,982,104 2,995, om 3,007,412 3,019,583 3,031,561 3,0'13,153 3,054,164 3,065,176 3,075,802 G. Depreciation & Amortization Expense 3,293,613 3,465;567 3,563,348 3,593,166 3,662,671 3,698,462 3,735,684 3,774,396 3,814,656 H. Tax Expense G t! 0 0 0 0 0 0 0 I. Interest Expense 2,011,739 2,847,509 3(175,931 3,32B,6;S9 3,366,058 3,400,623 3,436,814 3,482,186 3,527,751 3,572,813 J. Amortized Gain on Prepayment 0 0 0 0 0 0 0 0 K. Total Cost of Electric Service $ 74,854,695 $ 7 9, S 84,085,694 s 92t4171408 $ 96,810,350 488, 19,1 $106,415,813 $111,596,182 $117,044,332

L. Patronage Capital & Oper. Margins 3,259,671 2,119,701 1,667,023 1,601,533 1,620r725 l, 549,411 1,637,021 1,637,290 1,628,4:-.c_7 1,612,045 M. Nonoperating Margins 2,616,862 2,616,862 2,616,86: 2,616,862 2,616,862 2,616,862 2,616,862 2,616,862 2,616,862 2,616,862 N. G. & T. and Other Capital Credits 131, ooc 131,000 lJl,000 131,000 131,000 131,000 131,000 131,000 .::.31, 000 131,000 0. CFC Capital Credits 63,053 58,560 53,826 48,845 '13,601 38,081 32,626 27,903 23, Jll 17,888 P. Total Accural Margins $ 6,070,586 $ 4 $ 4,488,711 $ 4,398,240 $ 4,412,188 $ 4,335,354 $ 4,417,509 $ 4,413,055 $ 4,399,290 4,377,795 2. Cash Basis A. Cash fromOperationsbeforeO.S. $ 11,181,885 , :1,049,639 $11,043,164 $ 11,142,"~J 5 11,231,902 $ ll,Z29,567 $ 11,389,159 $ 11,472,022 $ 11,547,426 ~ ll,616,376 B. TotalOebtScrvjce 4,594,229 4,665,721 5,138,253 5.,5S'7,"'•'-':J 5;776,454 5,961,459 5,"960,684 6,106,317 6,292,758 6,486,66:

C. Cash MarginsafterDebtService $ 6,587,6S6 ~ 6,383,918 $ 5,904,9ll $ 5,535, 5,455,448 $ 5,268,108 $ 5,428.475 $ 5,365,705 $ 5,254,668 ,;, S,129,715

General Funds Summary - RUS Form 325 D ITEM 2013 2014 2015 2016 20i7 2018 2019 2020 2021 2022 1. Summary of General Funds A.NetGeneralFundsBeginningYear $57,186,496 $70,558,895 $72,626,735 $74,474,478 $ 76,083,580 $ 77,556,019 $ 78,806,932 $ 80,205,460 $ 81,487,586 S 82,625,844 B.CashMarginsAfterDebtService 6,587,656 6,383,918 5,904,911 5,585,241 5, 4!":'i5I 448 5,268,108 5, .;2e, 475 5,365,705 5,254,568 5,129,115 C. O~erProceeds -2,205,958 -2,205,958 -2,20S,958 -2,205,958 -2,205,958 -2,205,958 -2,205,958 -2,205,958 -2,205,958 -2,205,958 D. Sale of Excludable Items O O O 0 0 0 0 8 0 E. Reimbursement of General Funds 12,058, 00J 0 0 0 0 0 • 0 J 0 F. Refund of G. & T. Capital Credits C O C 0 0 0 0 C 0 G. Refund of CFC Capital Credits 0 31,527 29,281 2 6, ;15 :2(,424 21,802 19,041 16,315 13,95] 11,506 H. Refund of Capital Term Certificates 0 0 0 0 0 0 0 0 0

2. Total General Funds Available $ 73,626,194 $ 74,768,382 ,_'.?80,676 $ 79,357,494 $ 80,639,971 $ 82,048,490 $ 83,381,522 . $ 84,550,249 $ 85,561,107 3. Proposed Uses of General Funds A. Purchase of Excludable Items $ 0 $ 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 8. Capital Credit Retirements 1,767,985 1~517,C4·7 1,231,531 1,122,178 1,099,560 1,103,047 1,083,839 1,104,377 1, '.:.03, 264 1,099,823 C. General Funds Invested in Plant 11299,314 624,000 648,960 674,918 701,915 729,992 759,191 7.S9,:J59 821,141 853,987 D. Purchase of Capital Term Certifi. 0 0 0 0 0 0 0 0 0 0 E Purchase of Member Capital Sec. 0 0 0 0 0 0 0 0 0 0 F. Other Uses of General Funds 0 I) 0 0 0 0 0 0 0 C

4. Total Proposed Uses- General Funds ,;, 3,067,299 $ 2,141,647 $ 1, BB0, 01 157,096 $ 1,801,475 $. 1,833,039 $ 1,843,030 $ 1,893,936 $ 1,924,405 $ 1,953,810

5 Net General Funds End of Year $ 70,558,895 $ 72,626,735 $ 14,474, ~ - 083,580 $ 77,556,019 $ 78,806,932 $ 80,205,460 $ 81,487,586 $ 82,625,8~4 $ 83,607,297

Program provided by National Rural Utilities Cooperative Finance Corporation - Compass Version • .Ob 05115/2013 SGS Engineering, LLC Determination of Load - RUS Form 325 E Lea County Electric Coop., Inc. (Base) N 23

•• Previous Years•• ** Future Years•• 1! ITEM 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1. Number of Consumers A. Residential 8,041 8,104 8, 3·31 8,171 8,203 8,233 8,261 .S, 289 8,316 8,341 8,365 8, 38· 8,411 B. Residential • Seasonal 0 0 0 0 0 0 0 a 0 0 0 0 C. Irrigation 2,470 2,518 2,593 2,558 2,578 2,598 2, 618 2,638 2,658 2, 6"/G 2,698 2, 71 2,738 D. Comm. and Ind. 1000 kVA or 4,549 4,568 4, 645 4,606 4, 624 4,641 4,657 4,672 4,687 4,702 4,715 4,72 4,741 E. Comm. and Ind. Over 1000 .9 20 20 21 21 21 21 ·21 21 21 21 2 21 F. Public Street Lights 4 4 4 4 4 4 4 4 4 4 G. Public Buildings 6 6 6 6 6 6 6 6 6 6 6 6 H. Other 1 0 0 C 0 0 0 0 0 0 0 0 0 L Other2 0 0 0 0 0 0 0 0 0 0 0 0 J. Mercury Vapor Lights 0 0 0 0 0 0 0 0 0 0 0 0

K. Total Consumers 15,089 15,220 15,599 15,366 15,436 15,503 15,567 15,630 15,692 15,752 15,809 :s,86 15,921

2. Average Monthly Kwh Usage per Consumer

A. Residential 963 1,036 1,007 1,068 1,109 1,126 1,136 1,146 1,152 1, 167 1,182 J, 19 1,211 B. Residential Seasonal 0 0 0 0 0 0 0 0 0 C. Irrigation 6,431 8,468 7,229 7,500 7,592 7,684 7,776 7,868 7,960 8,052 8, 144 8,23 8,328 D. Comm. and Ind. 1000 kVA or 9,031 9,303 9,405 9,330 9,334 9,334 9,329 9,320 9,304 9,283 9, 26:J 9, 23 9,199 E. Comm. and Ind. Over 1000 1,489,921 1,343,538 1,437,427 1,375,000 1,383,333 1,391,666 1,400,000 1,408,333 1,416,666 1,425,000 1,433,333 1, ~41, 66 1,4501000 F. Public Street Lights 27,970 27,920 27,941 27,920 27,920 27,920 27,920 27,920 27,920 27,920 27,920 27,92 27,920 G. Public Buildings 147,207 161,757 170,791 162,636 163,330 163,330 163,330 163,330 163,330 163,330 163,330 163,33 163,330 H. Other 1 0 0 0 0 0 0 0 I. Other2 0 0 0 0 0 0 0 0 0 J. Mercury Vapor lights 0 0 0 0 0 0 0 0

3. Annual Mwh Sales A. Residential 92,981 100,797 100,739 106,736 109,206 111,256 112,711 114,085 115,000 116,834 118,666 120,488 122,312 B. Residential • Seasonal 0 0 0 0 0 0 0 0 0 0 0 0 C. Irrigation 190,639 255,877 224,952 230,220 234,869 239,56::. 244,299 249,080 253,905 258,774 263,689 268,647 273,648 D. Comm. and Ind. 1000 kVA or 493,017 509,976 524,273 515,698 517,968 519,861 521,366 522,528 523,343 523,817 523,976 523,814 523,379 E. Comm. and Ind. Over 1000 339,702 322,449 344,982 346,500 348,600 350,700 352,800 354,900 357,000 359,lOC 361,200 363,300 365,400 F. Public Street Lights :,342 1,340 1,34 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 G. Public Buildings 10,598 11,646 12, 29"/ 11, 7C9 11,759 11,759 11,759 11,759 11,759 11,759 11,759 11,759 11,759 H. Other 1 0 0 0 0 0 0 0 0 0 0 0 0 0 011'!(:r:? 0 (I [I C () I) () () [I C () ,.I. Mercury Vapor· Li!;ihtG 0 Ci 0 I) (I I) 0 () Cl C ()

4. Annual PowE::r H(~qulrements

f 1 1 r 1 1 / ;:;;],, ·1,:i 1 I ,P ,;:~)] I' ] 1 :l 1 ~?~11., c,:i~1 f 1 1,.:~:~J"lti"j~() /\. rot.,111\/lwh Sold "l. 1:2:] / :w1 l ?O:!.,, 11, :.~OF.11 ~JU:'.:1 l :'.1'.~ ;?0 l ~,-1,'.23~,f479 LI ? 14 i'. ~16 i C Sf:\ 1. 1 ~~C2 1 1B / 6]::(.: 1 ~'.B'J ?1.:J'.) A'I. Tot,,11 11/lwh Sold ·· No l.in,,, l.l [I n u 0 () [I 0 () 0 () 0 B Sy::,lern Own Mwh U:,e "/'Ii 1:1.:,1,) ! ~J I'.~' I) () () [1 I.I () 0 () (I

C. Sys1.i::,nr1 l.oss F1ercenta~Jt~ (t~{)) C. ~lq',t, r," "7 J ~~ ,'.'1. 66\ 6. 4 :1 ~5 (j ',1:::1; fl. ~l] '~ 6. ~ :n 6 ',,3,,. 6. ~I :n 6. <'1]1, f,, 4:JI! 1'.;. ( :~'(, (i , ·~ :~1 '1;

D. ro:ta11 llllwt1 Hc;quimnwnts l, ~'.1], ~l:'.~) :1,, 6, Oi 4 l' ~: u .LI ~):; u l, '.:'.9!=,,, .:.10t) 1,, JC)~/ I 0:"37 i,:n9,:110 1, ]:'.9., '/ uo I,, 339, B•I C l., ] 119, 09 11 l,, '"3~)9 1, C 1 '.:'. 11 3(,:::: f ti]!~ l I J"i ·1, 9~J:; 1,, I Cl:~:.~)

l''rn!Jl'am providml by· lllalion,11 Hurni UtilitiEm Coop1ir.ativ11 Finm1,i::i,, Gorpor,aition .. Comp,1s1; ll1irsim1 •· :J,, )lb 0511512013 SGS Engineering, LLC Determination of Debt & Debt Service RUS (After 6/83) - Form 325 H2 Lea County Electric Coop., Inc. (Base) Page

A. = Note-Date of Note; B. = Amount of Note; C. = Amortization Period I Deferral Period D. = Interest Rate I Loan Type

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

A. 10- 5 I 2003 E. Bal. 1st of Year 5,150,126 5,036,510 4,918,316 4,795,360 4,667,450 4,534,384 4,395,956 4,251,951 4,102,143 3,946,299 8, 5970000 F. Plus: Interest 201,744 197,166 192,404 187,450 182,294 176,932 171,355 165,552 :59,516 153,236 C. 35 / 0 G. Less: Payments 315,360 315,360 315,360 315,360 315,360 315,360 315,360 315,360 315,360 315,360

D. 4.0%1 LO H. Bal. End of Year 5,036,510 4,918,316 4,795,360 4,667,450 4,534,384 4,395,956 4,251,951 4,102,143 3,946,299 3,784,175

2 A. 15- 912005 E. Bal. 1st of Year 2,644,962 2,575,766 2,504,819 2,432,077 2,357,498 2,281,031 2,202,631 2,122,249 2,039,833 1,955,332 f, B. 3136000 F. Plus: Interest 65,336 63,585 61,790 5 9, 953 58,C65 56,132 54,150 52, 116 50,031 47,897 C. 3510 G. Less: Payments 134,532 134,532 134,532 134,532 134,532 134,532 134,532 134,532 134,532 134,532 D. 2.5% I LD H. Bal. End of Year 2,575,766 2,504,819 2,432,077 2,357,498 2,281,031 2,202,631 2,122,249 2,039,833 1,955,332 1,868,697

3 A. 20-9/2007 E. Bal. 1st of Year 4,270,389 4,170,962 4,068,807 3,963,851 3,856,015 3,745,220 3,631,385 3,514,427 3,394,259 3,270,792 8. 4833000 F. Plus: Interest 114,497 111,769 108, 968 106,088 103,129 1.00, 089 96,966 93,756 90,457 87,069 C. 35/ 0 G. Less: Payments 213,924 _213, 924 213,924 213,924 213,924 213,924 213,924 213,924 213,924 213,924 D. 2.7%/ LD H. Bal. End of Year 4,170,962 4,068,807 3,963,851 3,856,015 3,745,220 3,631,385 3,514,427 3,394,259 3,270,792 3,143,937

4 A. 25- 512011 E. Bal. 1st of Year 9,501,414 9,303,468 9,100,799 8,893,294 8,680,841 8,463,318 8,240,605 8,012,581 7,779,ll5 7,540,077 8. 10000000 F. Plus: Interest 222,102 21'1,379 212,543 207,595 202,525 197,335 192,024 186,582 181,010 175,311 C. 35 I 0 G. Less: Payments 420,048 420,048 420,048 420,048 420,048 420,048 420,048 428,048 420,048 420,048 D. 2.4% I LD H. Bal. End of Year 9,303,468 9,100,799 8,893,294 8,680,841 8,463,318 8,240,605 8,012,581 7,779,115 7,540,077 7,295,3,0

5 A. 30- 6 I 2012 E. Bal. 1st of Year 12,511,513 12,272,163 12,026,761 11,775,153 11, 517,182 11,252,686 10,981,501 10,7C3,460 10,418,388 10,126, 1:J7 8. 12807000 F. Plus: Interest 310,058 304,006 297,800 291,437 284,912 278,223 271,367 264,336 257,127 249,735 C. 35 I 0 G. Less: Payments 549,408 549,408 549,408 549,408 549,408 549,408 549,408 549,408 549,408 549,408 D. 2.5%1 LD H. Bal. End of Year 12,272,163 12,026,761 11,775,153 11,517,182 E,252, 686 10,981,501 10,703,460 10,418,388 10,126,107 9,826,434

6 AJ340-4 / 1983 E. Bal. 1st of Year 827,759

[], :2::2:070000 F. PJl.rn,. lnt,,,r,,,st (i, 64 I:~ C. :3::i / 2 G. Les:s: Pclyrnents !J j,1, ~IO'.-)

D, ,·1.b%/ l.D HI, Bal. End ol' YElal

r (1 i' A.·l:MG,.,1 I 190,l l::. IJal .. 1:,,1:ol'Yem l r 1 B(~ 1 ~):)B 1r106,r 'i'Ob 1., Oi'.:'., 61:;,Fi ()j 4, f ~!. 9 (, fi

;,'.tl., (il')O 1 1 ll. 2:107000 F. Plus: Interest ~) :; p :)J.1 ~,4., :·:: 1 7 ~)()I' 110 .~'. •1.!~1, ~I b!j AOr ti6::, :bt '710 JO, JU'.L J_ U I •~) ;1,~1 l ('., ;.;130

C. :rn i :, G, l! .. ess: Payn·1enit:s, ]_:JU ,P ;'.~i ti ~i UtJ,,l:H,11 l:ltl, l.l6~ I]::=:, flli,1 l:J1J, cili4 1]cl, fl c;,, l :ll'i, ,i..164 I Jll,. :,Jliil l :Ill, H bl 'I:.'.,:, fJ !iii

(;]~~j'9,1('. l '7 (I,;~ C) ID. b.•ti.Vi, / LD H. Bal. E:ncJ ofY,:,ar l, 10 (i" 7 () ~J l, ,PO?:~ I' ,:-;'.~:H 93~!, :l fJ,J l, Ofl'I 74:.l, :;,1e ~1:31,1 'J'"/9 ~]'/, 11'.> 96 1 tH C

Prn11rarn prmridml by lllatiorna,11 Hurni Ultilitim; C:Qcip11r,a1til'I! Finan,::i,, Gorpor,aition ., Compass V1Jr:sJ011 - ,I.Cb '! 0511512013 SGS Engineering, LLC Determination of Debt & Debt Service RUS - Form 325 H2 Lea County Electric Coop., Inc. (Base) Page 2

A. = Note-Date of Note; B. = Amount of Note; C. = Amortization Period / Deferral Period D. = Interest Rate/ Loan Type

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

8 A.2013- 7 / 2013 E Bal. 1st of Year 12,058,000 12,058,000 11,993,180 11,856,567 11,712,249 11,559,790 11,398,731 11,228,585 11,048,843 B. 12058000 F. Plus: Interest 331,595 663,190 659,625 656,215 648,510 640,369 631,769 622,682 613,086 602,949 C. 35 / 2 G. Less: Payments 331,595 663,190 724,445 792,828 792,828 792,828 792,828 792,828 792,828 792,828 0. 5.5% I LO H. Bal. End of Year 12,058,000 12,058,000 11,993,180 11,856,567 11,712,249 11,559,790 11,398,731 228,585 11,048,843 10,858,964

9 A.2013-1212013 E Bal. 1st of Year 8,475,190 8,475,190 8,467,597 8,373,716 8,274,538 8,169,767 8,059,CSB 7,942,161 7,818,641 B. 8475190 F. Plus: Interest 52,955 466,135 465,718 463,375 458,078 452,48!:J 446, ST/ 440,329 433,736 426,768

C. 35 / 2 G. Less: Payments 52,955 466,135 473,311 557,256 557,256 557,256 557,256 :.):)7,256 557,256 557,256 0. 5.5%/ LO H. Bal. End of Year 8,475,190 8,475,190 8,467,597 8,373,716 8,274,538 8,169,767 8,059,088 7",942,161 7,818,641 7,688,153

10 A.2014- 912014 E. Bal. 1st of Year 8,412,270 B,412,270 8,382,122 8,287,666 8,187,881 8,082,469 7,971,110 7,853,467 B. 8412270 F. Plus: Interest 167,889 462,675 461,017 458,660 453,33: 447,704 441,757 435,473 428,841 C. 35 / 2 G. Less: Payments 167,889 462,675 491,165 553,116 553,116 553,116 553,116 553,116 553,116 D. 5.5%/ LD H. Bal. End of Year 8,412,270 8,412,270 8,382,122 8,287,666 8,187,881 8,082,469 7,971,110 7,853,467 7,729,192

11 A.2015- 8 I 2015 E. Bal. 1st of Year 5,224,770 5,224,770 5,201,365 5,142,434 5,080,178 5,014,411 4,944,935 B. 5224770 F. Plus: Interest 912 287,362 286,075 284,605 281,280 27"1,769 274,060 270,138 C. 3512 G. Less: Payments 110,912 287,362 309,480 343,536 343,536 343,536 343,536 343,536 0. 5.5%/ LD H, Bal. End of Year 5,224,770 5,224,770 5,201,365 5,142,434 5,0SC,178 5,814,411 4,944,935 4,8711537

12 A.2016-8/2016 E. Bal. 1st of Year 2,395,770 2,395,770 2, 385,_037 2,358,015 2,329,470 2,299,315 B. 2395770 F. Plus: Interest 60,344 131,767 131,177 130,502 128,979 127,369 125,669 C. 3512 G. Less: Payments 60,344 131,767 141,910 157,524 157,524 157,524 157,524 0. 5.5%/ LO H. Bal. End of Year 2,395,770 2,395,770 2,385,037 2,358,015 2,329,470 2,299,315 2,267,460

13 A.2017- 8 I 2017 E. Bal. 1st of Year 2,491,600 2,491,600 2,480,43"8 2,452,338 2,422,652

El. 2491600 F Plus: lnl,!rest r:;;; !' '7 .(~,fl 1]'"/,0J!J 1.:3 6 1 1'['.2 .~ 1:3!), '/~~/~ ,1JH ];··~' 11

C. 3Ei / ~i G. Lt~ss: ~)aymenl:s 6:~i 7 sn :L::, "/, 031:I l ,1J '/ I ::)Db , U:~ il :1. 6.,, n;;,1 1 CJ, u:~ 1i ,, D. :~l,S'% / LD H. Bil.I. Encl of Y1,ar ,.,, 911 i:~ou l~ 1 1191 1 600 ?j' 4:·::o, :2, :JJH :~ I ~l :: :~ , () ~) :: :~:., 391, L~9:~

'.14 A.:20·11J .. :::/,!01EI E. tlal. ·1st of Year 2, !j91 f ::(i!:i ,~: 1 ~1:n, ::6~) :2, ~) '/ '.l .r Cb'/ '.2, j,:)n-1 4 J•l

fl. 215;~·120i::;, F. Plus: llnterest 6!~,f~?60 1.,1:~: f ~);~o J.41, 'Jlll ·; ti l ,, l.b:.l JJ (J ., :.u:~

C. :3,s / 2 G. Less: Payments 6!5 1 ~: r;n 'l4?,~:i~?.O J.:,:J., 4fl'.• J '.10,, ]7 6 l '?O,, 'f76

a- a-111 I ID. ,J.,J/tti l.D H. Ela I. Encl o:r Year ? 1 :) 9 l , ~: {~:) ?, f)9l, ~!6!S 2 f .'.) "/ 9 ,r (:,~)•/ ;~, ,L~1~)(1" ,1 :Jil ;·! r ~; J. 9 ,, 1~1 tiU 05115/2013 SGS Engineering, LLC Determination of Debt & Debt Service RUS (After 6/83) - Form 325 H2 Lea County Electric Coop., Inc. (Base) Page 3

A. = Note-Date of Note; B. = Amount of Note; C. = Amortization Period I Deferral Period D. = Interest Rate I Loan Type

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

15 A2019- 8 I 2019 E. Bal. 1st of Year 2,694,916 2,694,916 2,682,843 B. 2694916 F. Plus: Interest 67,879 148,220 147,556 146,798 C. 35 / 2 G. Less: Payments 67,879 148,220 159,629 177,192 D. 5.5% / LD H. Bal. End of Year 2,694,916 2,694,916 2,682,843 2,652,449

16 A.2020- 8 / 2020 E Bal. 1st of Year 2,802,712 2,802,712 B. 2802712 F. Plus: Interest 70,594 154,149 153,459 C. 35 / 2 G. Less: Payments 70,594 154,149 166,014 D. 5.5% I LO H. Bal. End of Year 2,802,712 2,802,712 2,790,157

17 A.2021- 8 I 2021 E. Bal. 1st of Year 2,914,820 B. 2914820 F. Plus: Interest 73,418 160,315 C. 35/2 G. Less: Payments 73,418 160,315 D. 5.5% I LD H. Bal. End of Year 2,914,820 2,914,820

18 A.2022- 8 / 2022 E. BaL 1st of Year

B. 3031413 F. Plus: Interest 76,354 C. 35 / 2 G. Less: Payments 76,354 D. 5.5% I LD H. Bal. End of Year 3,031,413

19 Total Debt and Debt Serv. RUS - 6/83 A. Debt - First of Year 36,092,721 54,998,764 62,587,620 66,891,748 68,153,018 69,382,915 70, .. 619, 794 71,881,147 73,166,213 74,474,115

B. New Funds -- Advanced 20,533,190 8,412,270 5,224,770 2,395,770 2,491,600 2,591,265 2,694,916 2,802,712 2,914,820 3,031,4:3

C. Interest Exp. 1,363,944 2,245,936 2,622,837 2,826,591 2,917,638 3,008,702 3,100,818 3,194,877 3,290,874 3,388,785

D. Debt Payment 2,991,091 3,069,350 3,543,479 3,961,091 4,179,341 4,363,088 4,534,381 4,712,523 ,897,792 5,090,01 E. Debt • End of Year 54,998,764 62,587,620 66,891,748 68,153,018 69,382,915 70,619,794 71,881,147 73,166,213 74,474,115 75,803,842 05/1512013 SGS Engineering, LLC ·oetermination of Revenue • RUS Form 325 F Lea County Electric Coop., Inc. (Base) Page

•• Previous Years•• •• Future Years••

Estimated Revenue 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1. Residential A. Total Annual Mwh Said 92, 981 100, 79'/ 100,739 106,736 109,206 111,256 112,711 114,085 115,000 116,834 118,666 120,488 22,312 8. Average Rev. per Mwh Sold 79.96 81. 08 79.10 96. 45 96.45 96.45 96.45 96.45 96.45 96.45 96. 45 96. 45 96. 45 C. Monthly Charge I Consumer o.oo o.oo 0.00 0.00 o.oo 0.00 0.00 0.00 o.co 0.00 0.00 0.00 0.00 D. Average Number of Consumers 8,041 8,104 8,331 8,171 8,203 8,233 8,261 8,289 8,316 8,341 8,365 8,389 8,411 E. Rev. less FlowThru AdJ. 7,435,405 8,173,371 7,969,137 10,295,424 10,533,670 10,731,309 10,871,652 11,004,279 11,092,440 11,269,437 11,446,048 11:1621,887 11, 797,726

2. Residential - Seasonal

A Total Annual Mwh Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 B. Average Rev. por Mwh Sold 0.00 0.00 o.oc 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 C. Monthly Charge/ Consumer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 00 D. Avarage Number of Consumers 0 0 0 0 0 0 0 0 0 0 0 0 0 E. Rev. less FlowThru Adj. 0 0 0 0 0 C 0 0

3. Irrigation

A. Total Annual Mwh Sold 190,639 255,877 224,952 230,220 234,869 239,561 244,299 249,080 253,905 258,774 263,689 268,647 73,648 B, Average Rev. per Mwh Sold 72 .39 68.55 67.26 85.81 85.81 85.81 85.81 85.81 85.81 85.81 85.81 85.81 85.81 C. Monthly Charge I Consumer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oc 0.00 D. Average Number of Consumers 2,170 2,518 2,593 2,558 2,578 2,598 2,618 2,638 2,658 2,678 2,698 2,718 2,738 E. Rev. less FlowThru Adj. 13,801,207 :7,541,537 15,132,226 19,757,020 20,155,988 20,558,732 20,965,252 21,375,547 21,789,619 22,207,553 22,629,263 23,054,748 23, 484,010

4. Comm. and Ind. 1000 kVA or Less

A. Total Annual Mwh Sold 493,017 509,976 524,273 515,698 517,968 519,861 521,366 522,528 523,343 523,817 523,976 523,814 ~23,379 B. Average Rev. per Mwh Sold 65.05 67. 87 65.02 82.21 82.21 82.21 82.2: 82.21 82.21 82.21 82.21 82.21 82.21 C. Monthly Charge I Consumer 0.00 0.00 0.00 0.00 0.00 0.00 C.00 0.00 0.00 0.00 0.00 0.00 0.00 D. Average Number of Consumers 4,549 4,568 4, 645 4, 606 4,624 , 641 4,657 4,672 4, 687 , 702 4,715 4,728 4,741 E. Rev. less FlowThru Adj. 32,073,570 34,614,668 34,090,826 42,396,046 42,582,667 ~2,738,293 42,862,020 42,957,549 43,024,551 43,063,602 43,076,673 43,0631273 43, 027,511

5. Comm. and Ind. Over 1000 kVA

A. Total Annual Mwh Sold 339,'i02 322,449 344, 982 346,500 348,600 350,700 352,800 354,900 357,000 359,100 361,200 363,300 : 65, ,oo B. Average Rev. per Mwh Sold 52.80 55.28 51. 94 69.81 69.81 69.81 69.81 69.81 69.81 69.81 69.81 69.81 69.81 C. Mor1lhly Ct1.::.iroc / Cor1sun:1fl1 0.00 0,.00 0.80 C.00 0.00 0 .. 00 o.no 0.00 n.oo 0 ., 00 0.00 O.DO 0.00 ,: l U Avm,1r.:1u· Numbc-r of Cor,:suii:1~,rs 1') ~10 ? .. I. 2.l :n ::1 21 ;; 1 :n :n ~'. 1

t:, H:mr. k~s~, I· kNi1Thn1 Adj. "l '/ / :-J.~i5l1 1:n l 'i ,, B;!:i, CH:: I l "/, ~1:~ l., :3;~9 :~.-JI HI ~,IF L~"l :: ;,:,~1 ;nG, J.:L!J :2,1 1,•lU:'.1'/.lfJ ~'. ,j, f 1;:,:-~ :) J '.\ ~:) :~•1 1 Ti~,, 1·.12,t :·~,.lj' :J:Ll 1 ~1,:n ~I,';,, 0 f):;, 1. ~: ,: ~( ~) r ,:; .l .I') 1 I J~I ;;_~), :1.:H.) .?!)/ f,Of:: 1 '."J:3'.) ti. Public; Strnet. Lii!,rhts

I 11 '.),j Ci "] I ~\/[ :ci,10 l ,. :, 4 ll 1,, ]~, 0 A. · r otul Annual MNh :~iold 11' :·) 4 ~'. l jtif") l, J., I l,. :J.,J (I 1,, .'3 ~: 0 l, J40 l,, ·srn 0 1, :HO

1 ,'/1j " "}ii 1·::,1. :,_;;;J1. 7 4 [I }\ver·,a1Jti r~E:iv, pE;r Mwh Sold J ()·1. o:). 10 ).6:?. 1(1'/.,1!.> 1::il. 'i' ~I :,_;~ •1 • "i 4 1'.11,H J >'./[. 7 .. 1 ·1. ~~ 4 • "/ ~l l '.I! 4 • ·,: ,1 ] ~: /[ C. MonU1ly' Chur~;c / Consun)or 0. OU • l)i) (), o.ou 11.00 O.OIJ o .. no (L:iO 0. 0(') 0. (If) u" IJC• 0. 1:10 C.(10 ll Avo1··n!JIJ Nurnbi-:r of Consur:ni-:rn ,) II ,t II

ti "J ,, I:. l~ov loss Flov1rTl··11 u Adj 4::l., t,Hi( 1.ilf,,:~l ] ,J 1j. J J 3 1 Cl I' •• 00 mo lll'i', l.1:1D 'j I)'// 1 10 167 •' 100 l G"/' 1 ,J 00 '.. G"i' J ::Jo .l. fl"/, l Cl~) 1,:J·1 • .1.ao .1 IIJO 0511512013 SGS Engineering, LLC Determination of Operating Revenue - RUS Form 325 F Lea County Electric Coop., !nc. (Base) Page 2

*• Previous Years** •• Future Years**

Estimated Revenue 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

7. Public Buildings

A Total Annual Mwh Sold 10,598 Li, 646 12,297 11,709 11,759 11,759 11,759 ll,759 11,759 11,759 11,759 11,759 11,759 B. Average Rev. per Mwh Sold 76. 72 77.36 74.23 91.90 91.90 91.90 91. 90 91.90 91. 90 91.90 91. 90 91. 90 91.90 C, Monthly Charge I Consumer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 0.00 0.00 0.00 0.00 D, Average Number of Consumers 6 6 6 6 6 6 6 6 6 6 6 6 E. Rev, less FlowThru Adj, 813,229 901,067 912,857 1,0761145 1,080,740 1,080,740 !,080,740 1,080,740 1,080,740 1,000,740 1,080,740 1,080,740 ,080,740

8. Other 1

A Total Annual Mwh Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 B. Average Rev. per Mwh Sold 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 0.00 0.00 0.00 0.00 C. Monthly Charge / Consumer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 .00 0.00 0.00 0.00 0.00 D. Average Number of Consumers 0 0 0 0 0 0 0 0 0 0 0 0 0 E Rev. less FlowThru Adj, 0 0 0 0 0 0

9. Other 2

A Total Annual Mwh Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 B, Average Rev. per Mwh Sold 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 0.00 0.00 c.oo 0.00 G. Monthly Charge / Consumer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 0.00 0.00 G.00 0.00 D. Average Number of Consumers 0 0 0 0 0 0 0 0 0 0 0 0 0

E. Rev. less FlowThru Adj, 0 0 0 0 0 0 0 0

10. Mercury Vapor Lights

A Total Annual Mwh Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 B. Average Revenue per Mwh Sold o.oo o.co 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 C. Monthly Charge/ Consumer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 D, Average Number of Consumers 0 0 0 0 0 0 0 0 0 a a 0

E. Rev. less FlowThru Adj. 0 0 0 0 0 0 0 0

11. Flow Through Adjustments

A Mwh Sold Subject to Adj. - 1 1,128,281 1,202,087 J.,208,585 l,212,204 1,223,743 1,234,479 1,244,276 1,253,693 1,262,348 1,271,627 1,280,632 1,289,349 1, 97,840 8, Flow Through Adi, - 1 per Mwh 0.00 0.00 0.00 -16.55 -14.12 -11.57 -8.89 -6.08 -3.18 -0.02 3.23 6.65 10.24 C. Revenue from Adjustment - 1 0 0 -20, 066, 963 -17,284,283 -14,286,255 -11, 066, 217 -7, 623,086 -4,Cl7,296 -32,427 4,137,466 8,574,435 13 2901271 D. Mwh So!d Sull:1joc1. to Adj. :i 0 0 0 0 0 0 0 0 0 0 0 C 0 [. f'low Tlirouoh At1i, -- :2 pe,i·· Mwl1 ,.::. Hovom.1G from 1r:i11j'justm,r::1nt - ;: I) 0 ------

G. Tota,11 Hm1. from Adjl.lislt. () - ::!oj' 066, i.:163 -•1.··1,,2B4,~IU:3 ··J (l, ~: f.i b' :;! !>El ... 111 0661 ::~17 ··7 1, 6:i:J 1 U::J 15 -•,4 ,, O"l 7 1 296 . J:21, 4~!'/ •1 1 1 ~I "i , ,1 () (i iJ l ;)"/ tj / ~ 3 _"J J ::, , ::!90 1 ~~-,, l

·1:2,. Hm1, "Eli!Glr.i,c: Emi·rmr '/ 2: I :,~ i,) () I ~~ ; ! ;i '/!)I~! 0,~ r 1:)it? '/GI) "/U, ,HJ!) /'/ I gJ ~. f .3(;6 G1,, E,'1 ~!, ti "/'"J a~), 4 '"/ 2 ,r 'f .I. ',I rl9 1 5UCI, 1:JJ1n •:_i:-:. 1• ".13ti, lJJ s1:i3 ,, O!.i9 1 "/61 J (! ~: / i:J ;;; t~ j' ~'. J. :_j .Un,·/~)jr.lOJ l t:~J' :~?tl 1 ~;,':i9 .lliJ , :-Ji)G 1 J·/·1

·!:l, OU:1,(,r Opnrntin1J1 IR011. •1:37, ]1 (I .. 'i ' 3211• ·" 1 , 9 0 '.~ ,, 0 "/ ~1 '!Oil., 000 :JOO, OUI.I :.~1llOi- 000 30:J, 0[10 JOO, 000 3CO,OiJO ;jC10 1 000 ]00., IJ~)() -~uu, oou 3001 ooc

'14. Total Op!)(,f J'i'/ 0511512013 SGS Engineering, LLC Plant Investment & Loan Fund Requirements - RUS Form 325 G Lea County Electric Coop., Inc. (Base)

•• Previous Years ** •• Future Years ••

ITEM 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1. A. Total Utility Plant (B. of Year) 119,588,579 '126,406,753 132, 7-<2, 726 134, 926·, 061 143,200,565 150,676,835 154,928,165 156,311,557 157,750,284 159,246,562 160,802,690 162,421; 06 164,104,170 B. Plant Addi!. & Replacements 5,193,331 6,707,751 11,380,438 10,754,619 10,016,385 6,853,845 t;, 050, 803 4,212,835 4,381,349 4 / 556, 603 4,738,867 4,928,42" 5,125,558 C, Construction Work in Prog. 3,005,701 2,730,885 -I!, 863,872 0 0 0 0 0 0 D. Contributions in Aid of Const. 0 0 0 980,115 980,115 980, 115 980,115 1,019,320 1,060,092 1,102,496 1,146,596 1,192, 46 1,240,158 E. Retirements 1,380,858 3,102,663 4,333,231 1,500,000 ------1,560,000 1,622,400 1,687,296 1,754,788 1,824,979 l, 897,979 1,973,898 2,052,85 2,134,968 F. Total Utility Plant (E. of Year) 126,406,753 132,742,726 134,926,061 143,200,565 150,676,835 154,928,165 156, 3::.1, 557 1571 750,284 159,246,562 160,802,690 162,421,063 164,104, 17 165, 65.:/q 602

2. Analysis of Priority Funds A. Distribution 4,5681851 5,275,024 7,242,236 7,724,382 032,385 6,204,885 3,3751885 3,510,920 3,651,357 797,,12 3,949,308 4,107,28 4,271,571 B. Headquarters • Loan 0 0 0 C C. Other Needs. Loan 0 0 0 0 0 D. Gen. & Trans .• loan 96,216 1,060,454 J,510,109 2, 237 360,000 0 0 0 0 0 E. Warehouse Loan 0 0 0 0 0 0 0 F. Reimbursement of G. Funds 0 0 12,058,000 0 Q 0 0 0 0

G. Total of Priority Items 4,665,067 6,335,478 lO, 752,345 22,212,619 9,392,385 6,204,885 3,375,885 3,510,920 3,651,357 3,797,412 3,949,308 4,271,571

LESS:H. Contrib. Aid of Const. 980,115 980,115 980,115 980,115 1,019,320 1,060,092 1,102,496 1,146,596 1, 192, ·16 l, 240,158 I. General Funds Invested in Plant 699,314 0 0 0 0 0 0 ---- J. Loan Funds Required for Priority Items 20,533, :90 8,412,270 5,224,770 2,395,770 2,491,600 2,591,265 2,694,916 2,802,712 2,914,82 3,031,413

K. Prior Loan Funds Required 12,058,000 0 0 0 0 0 L. New Joint Loan Funds Req, 81475,190 8,412,270 5,224,770 21395,770 2,491,600 2,591,265 2,694,916 2,802,712 21914,82 3,031,413

M. New Loan Funds - RUS 8,475,190 8,412,270 5,224,770 2,395, TIO 2,491,600 2,591,265 2,694,916 2,802,712 2,914,820 3,031,413

N. New Loan Funds - CFC 0 0 0

3. Analysis of Non-Priority Funds i! A. Headquarters Gen. Funds 0 0 0 0 0 0 0 0 0 B. General Plant Additions 528,264 372,273 628,093 600, 000 624,000 648,960 674,918 701,915 729,992 759,191 789,559 821,14: 853,987 C. Gori. B( Tram;. - G~m. Func1'S ol D. Other illeeds • Gen. Funds () I) o' ...... ------· ------··------·---. (, ()()() 1::. Non•Prioril:y Fund:; l'tequirnd ,,./ :J ,, :~ ,: :r1::, G;·~ 0, ~) :J .J 1:>;;,:, 000 IJ~.l~: 1 96(J c,·; •~ i- !).l.O ·1 i,)J , ~i1 ~, '/ ~: ~) I l'.l '..l ;~ '"/ l)!,1 1 ] ~q ·,1c:s1, ·J1:,9 li:nl, J4J fl !'.d 1 ~}ll ·1

Ll::ss:F:,, Sp13:c.ial Fundt3 Us12tcl

G. Ce1~·1t~ral r:unds !r1v1~i.sti:::d in r~)Jant 'IJ-001 000 C2•1.f 01-'JO 6,113,. 9()0 6'"/4f ~11 ·•J 701., 9·i LS i.~•),, !)qJ! ·1 :) 9, J '.~1 l / ::11) ,, ~,i .(~ 9 u:!'.. / J (; .1 (~:·):;, ~1•J7 1-1. Loan Funds 1;:equi.red - Othen;

rota! /lluw Loan runcl~i. CFC () (I (I

Pro1i1rnm prnvld;,d b:i' Natkma! Rural U!iliti;i,s C!lop,,,rnti11;i Fiiinanc:11 C:,:,rp;J,ration .. C;,,mpa!,!; V1,,rnio11 .. ,I. lb 05/15/2013 SGS Engineering, LLC Determination of Debt & Debt Service - RUS Form 325 H 2% Loan- Lea County Electric Coop., Inc. (Base) NM · 23

ITEM 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1. Determination of Debt Payment RUS 2%

A. Total Pay. Due (1st of Year) $ 10,486 $ 10,486 B. Plus Addit. Principal Pay. on Adv. C. Plus Interest Payments on Advances D. Less Annual Pay. on Notes Paid in Full 0 0

E. Total Payments Due (End of Year) $ 10,486 F. Less Current Interest for Year 184 16 G. Amortization of Outstanding Debt $ 10,302 $ 2,668

2. Determination of Outstanding Debt

A. Outstanding Debt (1st of Year) $ 12,970 $ 2,668 B. Plus Loan Fund Advances C. Less Amortization of Outstanding Debt 10,302 2,668 D. Less Advance Pay. on RUS 2% Debt

E. Outstanding Debt (End of Year) $ 2,668

3. Notes Reaching Basis Date

Determination of Debt & Debt Service - RUS - Form 325 H 5% Loan

1. Determination of Debt Payment RUS 5%

A. Total Payments Due (1st of Year) B. Plus Addi!. Principal Pay. on Adv. C. Plus interest Pay. on Advances D. Less Annual Pay. on Notes Paid in Full

E. Total Payments Due (End of Year) F. Less Current Interest for Year G. Amortization of Outstanding Debt

2. DEJlerrnina1:iion of Ou1tsta11

A Outstandin11 D1,d:;i1:. ,[1 sl of Yc:ar) 1:1. Plus Loan Fund /\dvances C Ums .l\morl'izal.ion of Outi,tandin[! D,,,bt D. Less ,l\dvance Pay. on 1=ius :i% Dell! 05/1512013 SGS Engineering, LLC Determination of Debt & Debt Service CFC • RUS Form 325 I Lea County Electric Coop., Inc. (Base) age

A. =Note-Date of Note; B. = Amount of Note; C.= Amortization Period I Deferral Period D. = Amortization Type; E. =Interest Rate I Loan Type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

A.9001-12 / 1983 F. Bal.1st of Year 1,033,283 893,557 744,010 583,953 412,647 229,303 33,073

B. 2741000 G. Plus: Interest 67,242 57,421 46,911 35,662 23,624 10,738 566 C. 3510 H. Less: Discounts 1,226 1,047 856 650 431 197 10 D. Level Debt I. Less: Payments 205,742 205,921 206,112 206,318 206,537 206,771 33,629 E. 6.85%/ Fix J. Bal. End of Year 893,557 744,010 583,953 412,647 229,303 33,073

A.9002- 1 11991 F. Bal. 1st of Year 1,539,859. 1,467,586 1,390,614 1,308,636 1,221,326 1,128,339 1,029,306 923,831 811,498 691,861 B. 2359000 G. Plus: Interest 96,083 91,384 86,378 81,046 75,369 69,323 62,881 56,023 48,719 40,938

C. 35 / 0 H. Less: Discounts D, Level I. Less: Payments 168,356 168,356 168,356 168,356 168,356 168,356 168;356 168,356 168,356 168,356

E. 6.35% / Var J. Bal. End of Year lr467,586 1,390,614 1,308,636 1,221,326 1,128,339 1,029,306 923,831 Bll,498 691,861 564,443

A.9003- 4 I 1994 F. Bal. 1st of Year 946,000 886,556 825,369 762,388 697,560 630,832 562,147 491,450 418,680 343,776

8. 1892000 G. Plus: Interest 26,792 ·- 25,049 23,255 21,408 19,508 17,551 15,539 13,466 11,332 9,136 C. 35 /0 H. Less; Discounts D. Level Debt I. Less: Payments 86,236 86,236 86,236 86,236 86,236 86,236 86,236 86,236 86,236 86,236 E. 2.90% I Var J. Bal. End of Year 886,556 825,369 762,388 697,560 630,832 562,147 491,450 418,680 343,776 266,676

A.1001- 6 I 2011 F. Bal. 1st of Year 5,367,630 5,C30,831 4,678,619 4,310,287 3,925,099 3,522,282 3,101,031 2,660,500 2,199,809 1,718,035 B. 6222482 G, Plus: Interest 235,913 220,500 204,380 187,524 169,895 151,461 132,181 112,021 90,938 68,890 C. 15 / 0 H. Less: Discounts 6,553 6,125 5,677 5,208 4,720 4,208 3,671 3,111 2,525 :,913 D. Level Debt I. Less: Payments 566,159 566,587 567,035 567,504 567,992 568,504 569,041 569,601 570,187 570,799 E, 4.50% I Fix J. Bal. End of Year 5,03C,831 4,678,619 4,310,287 3,925,099 3,522,282 3,101,031 2,660,500 2,199,809 1,718,035 1,214,213

A.1001- 6 / 2011 F. Bal. 1st of Year 5,367,630 5,030,831 4,678,619 4,310,287 3,925,099 3,522,282 3,101,031 2,660,500 2,199,809 1,718,035 B. 6222482 G. Plus: Interest 235, 913 220,500 204,380 187,524 169,895 151,461 132,181 112,021 90,938 68,890 1 C. Hi/0 H. Less: Diseount~; bJ. ):. :1.'.1 6 ,I 1. ~: ~) ~./ / 6'/ 'j' ~:) I ::o :J ~ f "7 ;~o 1~, ~WB ],, 67:.. :J, 1 ,. I. :~ p ~~i :i :) l, 91 '"J

f ],_ D, l.t)v,,,'1 Debt I. Lesn: P'aymenl.s '.'1(;6 J 1 j~J .~l66,, i.:,d7 ):i{17 I o:J:::1 ::) 6'i' I ~J0•1 (=) 1:_, '"/ 9 ~:; :~ ~)tjB, ~iO'i ,'.)6:J,r bb9 1 tiO.L ',Ill,, ltl"I '.:; ·; 0, ',I'.)::~

1 , 1,,1, 21 E.. 4,,50 ~{) I Fix ,L B,c11. [ncl of Year ~)I, (Jj()I o:~:1 4 1 (i~/~) 1 (:19 ,I, :J10, ;;IJ'/ JI 9'.2.~11 099 3, '.=>:2::~:f ~~B:2 :I, :I.Ill, o:n :2, (i60,, (,()() 1 1111·-1 1 U09 :lr '710,, O'J~) i, ;: J

Total Debt and Df,,b:t S,,,rvke CFC

I\. Debt ~· Fi,r:s,t of Yi:::;~11· 1,1, ?:.~,.~., ,1c:2: :.:J,, :-:091 ]61. l~'., :'Jl''1, ;~~>1 :11., ;;'JL;,, .'.1S1 lO,:.. B:l 1 731 St, O:.l], D3f.l ·1 1 Fi~; G,, 5:'.~iFl 6r '"/~'S~),, ::~:n::. i) I t>:'. :11,) Clfi lj I 4 'l l f '} 0'7 El. lllew hmcls .... Aclvanced

1 1 C, llnt,;,rest bcp. b 1:.,l1 94:~, bl ✓:l I H.!:1,i) :)b!=,, 1 J0 11 :) .l], 1 (iii ii :1D, 29 l 1100, :,34 ':l!l:l,, ·irn :::9·1,r b:)J .. •'• f :'i ?"/ .frl, ~i:~4 ., D, Less Dl:scouni.s 1 !] I =~ 3 :~ Li1 ;;9'") 1'.~,~(10 11, (161) ll'l 1 IJ.,Cl:l :3,:_1L'. 6 ,, :;;: ;:: ~:'. SJ' ObU JI Fi::; C

Pn:i[1ram proviideicl Ill/ l1lational Rural Ulliiiliiltieis GoopElratiiv,,, f'inarn:ii C()rponitiion • Compass V!!l'sion - :ui:, 0511512013 SGS Engineering, LLC Determination of Debt & Debt Service CFC - RUS Form 325 I Lea County Electric Coop., Inc. (Base} age 2

A. = Note-Date of Note; B. = Amount of Note; C. = Amortization Period I Deferral Period D. = Amortization Type; E. = Interest Rate / Loan Type

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

E Debt Payments 1,592,652 1,593, 687 1,594,774 1,595,918 1,597,113 1,598,371 1,426,303 1,393,794 1,394,966 1,396,:90 F. Debt - End of Year 13,309,361 12,317,231 11,275,551 10,181,731 9,033,038 7,826,588 6,736,281 5,629,796 4,471,707 3,259,545 0511512013 SGS Engineering, LLC Determination of Operating Expenses • RUS Form 325 K Lea County Electric Coop., Inc. (Base) NM -23

** Previous Years** ** Future Years •• ITEM 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1,349,094 1,359,012 1,368,635 1,377,952 1,3 7,025 1. A. Total Mwh Requirements 1,213,925 1,276,024 1,281,928 1,290,506 1,307,837 1,319,310 1,329,780 1,339,846 58.03 60.94 63.98 67.18 70.54 B. Cost per Mwh Purchased 44.55 45.86 43.30 45.47 47.74 50.13 52.64 55.27 0.00 0.00 0.00 0.00 B1. Flow Through Adj. per Mwh 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo

9-J f C. Cost of Power 54,081,849 58,521,: 79 55,519,541 58,913,007 62,447,433 66,144,960 70,003,391 74,059,993 78,299,708 82,819,173 87' 5751 822 92,580,621 849,674 1,249,692 1,254,471 1,259,010 1,263,550 1,2 67,929 2.A. Consumer Accts. & Sales 1,366,679 1,326,070 1,242,287 1,223,729 1,229,305 1,234,640 1,239,737 1,244,754 79.63 79. 63 79.63 79.63 79.63 79.63 B. Cost per Consumer Served 90.57 87.12 79.63 79.63 79.63 79.63' 79.63 15,567 15,630 15,692 15,752 15,809 15,866 15,921 C. Average Nbr. of Consumers 15,089 15,220 15,599 15,366 15,436 15,503 7,098,763 7,166,095 7,236,121 7,308,947 7,384,688 7,4 63,458 3.A. Operating & Main!. Exp. 5,831,984 6,100,956 6,053,350 6,444,026 6,780,458 6,971,767 7,034,020 4.50 4.50 4.50 8. Ratio to Total Utility Plant 4.61 4.59 4.48 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3,031,561 3,043,153 3,054,164 3,065,176 3,0 75,802 4. A. Admin. Gen. & Other Exp. 2,576,808 2,791,648 3,013,594 2,968,581 2,982,104 2,995,048 3,007,412 3,019,583 1. 92 1. 91 .90 1. 89 1.88 1. 86 1.85 B. Ratio to Total Utility Plant 2.03 2.10 2.23 2.07 1. 97 1. 93 3,662,671 3,698,462 3,735,684 3,774,396 3,8 14,656 5. A. Depree. & Amortiz. Exp. J,098,239 2,958,266 3,107,919 3,293,613 3,465,567 3,563,348 3,595,166 3,628,257 2.30 2.30 2.30 2.30 8. Ratio to Total Utility Plant 2.45 2.22 2.30 2.30 2.30 2.30 2.30 2.30 2.30 0 0 0 0 6. A. Tax Expense 39,370 4r, 77 9 45,158 0 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 B. Ratio to Total Utility Plant O.C3 0.03 0.03 0.00 0.00 0.00 0.00 0.00 0 0 0 0 0 0 7.A. Discount Early Pay. Debt 0 0 0 0 0 0 0 157,750 159,246 160,802 162,421 :64,104 165,854 8. A. Total Utility Plant/ 1ODO 126,406 132,742 134,926 143,200 150,676 154,928 156,311 Determination of CFC• Transactions• CFC Form 101 L ITEM 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. Equity Investment in CFC (First of Year) 82,095 82,095 82,095 82,095 82,095 82,095 A. Subscription CTC's 82,095 82,095 82,095 82,095 0 0 0 0 A 1. Member Capital Securities-MCS's 0 0 0 0 0 0 0 0 0 0 8. Loan CTC's (Purch. prior 1983) 0 0 0 0 0 0 63,986 63,986 63,986 63,986 63,986 63, 98 6 C. Loan CTC's (Purch. after 1983) 63,986 63,986 63,986 63,986 183,249 246,302 273,335 297,880 319,810 338,987 355,266 368,851 380,439 389,497 D. CFC Patronage Capital ---- ~-----·-~-- 485,C68 501,347 514,932 526,520 535,578 E. Total Equity Investment 329,330 392,383 419,416 443,96: 465,891 14.77 12.29 9.99 '/.75 5.55 F. CFC Debt to Equity Ratio 40.29 24.96 23.06 20. 97 17.75 0.0% .0% 0.0% G. Percentage Loan CTC's Required 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2. Changes in Equity Investment in CFC 0 0 0 0 0 0 A. Purchase of Loan CTC's 0 0 0 0 0 0 0 0 0 0 A 1. Purcha:s,e c,f MC S's 0 0 0 0 () :) [I 0 () B. H1c1fund ot l.mm CTC's I.I 0 0 0 ~)JI' iI (:I ,, ::=, 1:. ~~ ,jJ, 601 Jll, Cli::1 ;;-r ir 9:)3 ~~]' () :.. 1 l '"/ I HH :~·: C. Pa1'.1··onc19t~ Cap1·tal /\ccrual i;,,:::, 0~)] i:io, si:.. o fj :~•: 6 j:;I' :~:] I 1 Ci-]]~) 1:J, Cl.'.1] l l, .:)06 I) Jl,~):~7 ~·: 91 :::e 1 2 6,. 9 J.~:i ~~•1 f ~I ~~4 fj o::~: l 'l, 0,0 l D. f"a1:1·011a[1e Capital Hotation -·---,------···--·· ------··-----······ ····------···--·-- I :.) 16, ',!,'J 9 131, .'.)!:1 ~: 11 1, .Ji',., b i·~ ., O~)!J 1:;,:w:z E. Tolal Equily Cri,ll'l[leS 6jr Ot)3 :~ 7, 0:1] r: ~[ ,1 ,'.'.: /'.1 i- 1~30 19, lT/ :i. lncorrw fron'.1 llrwe:,tmenl:r; in CFC 1j f ~ •• (}I~ !' :1 '~ i' 10:'.:1 4 / 10,:_1 /[ I' J 0'.") 4., lCh A lnte1rnst from Sub. CTC'i; 4, 10:.i 4 r 10!:i ~I I 10 :1 4 Cl t) 4, 10:i (I (I u I) Al. lntcrost from MCS\, 0 0 0 [) I) Cl Cl 0 13, lntor(mt from Pim HlB3 Loan CTC":, () 0 liJ, Ob:l r, :i;:, ~> 60 b3, U:,~6 11Bl H.'l, ~-) ,1:J, 60:L ·::u, OU 1 ~1~; 1 6:~h ;'.'/ j' !JD3 ;,:'J, llll 1 "i, fJUt] C. f'al.ronaoe Cap1t,JI Income ···------·---· .. ------·- ·----·· ('J(l[i ::, 1, ')9 ';; ~) ~~ J' :~: ,=) 0 ;'. I :t 13 fi :'i(i, '/31 '3'.! ,, ?'l,lll.i D. Total Income trorn CFC Equily (}'7 I j ~>0 6?, t)6Li -~~1'71931 47,706

Pr,c111r;aim provklcid by lllationall Hurni Ultiliti11s C:oc)p1:rati1m Fin.mi:."' Corpor:a,llion • C()mpa:,,s V1m,,iion - :3,.,0I) . 05/15/2013 SGS Engineering, LLC Statement of Cash Flow - Indirect Method• CFC Form 101 M Lea County Electric Coop., Inc. (Base} NM 23

ITEM 2013 .2014 2015 2016 2017 2018 2019 2020 2021 2022

Beginning Cash Flow $ 77,556,019 $ 78,806,932 $ 80,205,460 $ 81,487,586 $ 82,625,844 Total Cash - Beginning of Year $ 57,186,496 $ 70,558,895 $ 72,626,735 $ 74,474,478 $ 76,083,580

I. Cash Flows from Operating Activities 3,814,656 $ 3,293,613 $ 3,465,567 $ 3,563,348 $ 3,595,166 $ 3,628,257 $ 3,662,671 $ 3,698,462 $ 3,735,684 $ 3,774,396 $ f! A Depreciation Expense 4,335,3S4 4,417,509 4,413,055 4,399,290 4,377,795 B. Net Margins 6,070,586 4,926,123 4,488,711 4,398,240 4,412,188 0 0 0 C. Materials & Supplies - Electric 0 0 0 0 0 0 0 -2,343,340 D. Other Assets & Debits -2, 400,011 -2,363,991 -2,36l,503 -2,358,888 -2, 356,135 -2,353,237 -2,350,543 -2,348,546 -2,346,016 0 0 0 0 0 E Other Liabilities & Credits -5,367,630 0 0 C 0 ------$ 5,849,111 F. Net Cash Inflows. Oper. Activities $ 1,596,558 $ 6,027,699 $ 5,690,556 $ 5,634,518 $ 5,684,310 $ 5,644,788 $ 5,765,428 $ 5,800,193 $ 5,827,670

Cash Flows from Investment Activities

$ -3,662,671 $ -3,698,462 $ -3,735,684 $ -3,774,396 $ -3,814,656 A. Depreciation Expense $ -3,293,613 $ -3, 465,567 $ -3,563,348 $ -3,595,166 $ -3,628,257 -1, 496,278 -1,556,128 -1,618,373 -1,683,107 -1,750,432 B. Total Utility Plant -8,274,504 -7,476,270 -4,251,330 -1,383,392 -1,438,727 1,800,483 1,761,786 1,721,542 1,679,688 C. Accum, Provision for Depree. 1,793,613 1,905,567 1,940,948 1,907,870 1,873,469 1,837,692 0 0 0 0 D. General Funds Excludable 0 0 0 0 0 0 0 0 0 E. Temporary Invest. - Non Cash 0 0 0 0 0 0 0 0 0 C 0 F. Notes Receivable Net 0 0 0 0 0 0 0 G. Materials & Supplies • Electric 0 0 0 0 0 0 0 ------3,885,400 H, Net Cash Inflows - Inv. Activities -9,774,504 $ -9,036,270 $ -5,873,730 $ -3,070,688 $ -3,193,5:5 $ -3,321,257 $ -3,454,107 $ -3,592,271 $ -3,735,961

Cash Flows from Financing Activities

$ -4,335,354 $ -4,417,509 $ -4,413,055 $ -4,399,290 -4,377,795 A. Net Margins $ -6,070,586 $ -4,926,123 $ -4,,88,711 $ -4,398,240 $ -4,412,188 0 0 0 0 B. Memberships 0 0 0 0 0 0 3,308,678 3,296,026 3,277,972 C, Total Capital or Margins 4,302,601 3,408,476 3,257,180 3,276,062 3,312,628 3,232,307 3,333,670 30,429 171,046 178,581 149,813 117,565 D, Total Long Term Debt 23,318,330 6,594,058 3,262,448 167,450 81,204 () () 0 Cl [I E. fJotes F'a1',,:ibl1,:, " tict () 0 () (.) (i 0 0 0 (I (I ll F. Con~aJrner Deposits 0

,-:-• p ,ij '.1] -··l)-'.l:'. :·!i·::,U -·9'.:>,.l, ,,,, ···1r UlB,, ;~ I' C ';' ~'., (.} 'l u ~; ,--·~11~~ •. ) CiJ :? .. 9;2.:i, "? ()6 --9)):3 1 C. Nc::t Cm;l1 lnflowc1 •· Fin, l\.ctivitie:; i I.,. i.:,t)(1 /' :34 ~) ~-', 07(;, ~l-l "l ~:.,,ei::10 1, i:Jl7 -;r:;n .:3~)6

----········------9,:_: l 1 1l rJ ~·i l, 4. ·,1 ;; ,, .(] ~: 9 ;~ I' 9 ~; l, 39B,. !:;,2B ;~ l, ;~fj:?, '!.~?.6 ,, 1, :l:-iH.1 ?.'.1tl IV. C:1,i:,,l,1 Flows lrom All Ac:tivil:i<,s LJ,, 3"i'?., :3 9 ~l :i, Oi:J'"I, ll4CJ l,, '7 A' 7 '~ 3 1, ;;09, i.o:, :'.'.::::10, "

,, J' "('} I ~-)[) !:I l 1

05/1512013 SGS Engineering, LLC Statement of Debt and Interest Expense - CFC Form 101 N Lea County Electric Coop., Inc. (Base) NM 23

ITEM 2013 2014 2015 2016 2017 2018 2019 2020 2021 022 A LTD - RUS - Beginning of Year 1 Long Term Debt- 2% 12,970 2,668 0 0 0 0 0 0 0 0 2. Long Term Debt 5% 0 0 0 0 0 0 0 0 0 0 3. Long Term Debt- (Post 6/83) 36,092,721 54,998,764 62,587,620 66,891,748 68,153,018 69,382,915 70,619,794 71,881,147 73,166,213 7 4, 4 7 , 115 Total LTD-RUS-8, of Year 36,105,691 55,001,432 62,587,620 66,891,748 68,153,018 69,382,915 70,619,794 71,881,147 73,166,213 7 4, 4 7 , 115 B, Total Interest • RUS Debt 1. Long Term Debt - 2% 184 16 0 0 0 0 0 0 0 0 2. Long Term Debt - 5% 0 0 0 0 0 0 0 0 0 0 1,363,944 2,245,936 2,622,837 2,826,591 2,917,638 3,008,702 3,100,818 3,194,877 3,290,874 3,38 ,785 3. Long Term Debt - (Post 6/83) ------~ Total Interest - RUS Debt 1,364,128 2,245,952 2,622,837 2,826,591 2,917,638 3,008,702 3,100,818 3,194,877 3,290,874 3,38 ,785 C, Principal Payments - RUS Debt 1. Long Term Debt - 2% 10,302 2,668 0 0 0 0 0 0 0 0 2. Long Term Debt- 5% 0 0 0 0 0 0 0 0 0 0 3, Long Term Debt - (Post 6/83) 1,627,147 823,414 920,642 1,134,500 1,261,703 1,354,386 1,433,563 1,517,646 1,606,918 1,70 , 686 ---•------Total Principal - RUS Debt 1,637,449 826,082 1J20, 642 1,13,1,soo 1,261,703 1,354,386 1,433,563 1,517,646 1,606,918 1,70 , 686 D, Advances - RUS Debt 3, LTD - RUS (Post 6/83) 20,533,:90 8,412,270 5,224,770 2,395,770 2,491,600 2,591,265 2,694,916 2,802,712 2,914,820 3,03 ,413 E, Changes in Long Term Debt- RUS 1. Long Term Debt - 2% 0 0 0 a 0 0 0 0 0 0 2. Long Term Debt - 5% 0 0 0 a 0 0 0 0 0 0 3, Long Term Debt - (Post 6/83) 0 0 0 0 0 0 0 0 0 0 -- Total Changes LTD - Buy Out 0 0 0 0 0 0 0 0 0 0 F. Long Term Debt - RUS End of Year 1. Long Term Debt - 2% 2,668 0 0 0 0 0 0 0 0 0 2. Long Term Debt - 5% 0 0 0 0 0 0 0 0 0 0 3. Long Term Debt - (Post 6/83) 54,998,764 ,587,620 66,891,748 68,153,018 69,382,915 70,619,794 71,881,147 73,166,213 74,474,115 75,80 ,842 ------Total LTD - RUS - End of Year 55,001,432 62,587,620 66,891,748 68,153,018 69,382,915 70,619,794 71,881,147 73,166,213 74,474,115 75,80 ,842

G. Long Term Debt - CFC - B. of Year 8,886,772 13,309,361 12,317,231 11,275,551 10,181,731 9,033,038 7,826,588 6,736,281 5,629,796 4,4.7 ,707 H, 1. Total Interest - CFC Debt 661,943 614,854 565,304 513,164 458,291 400,534 343,348 293,531 241,927 18 , 854 2. CFC Discount - Performance -14,332 -13,297 -12,210 -11, 066 -9,871 -8,613 -7,352 -6,222 -5,,050 - ,826 3, CFC Discount Volume 0 0 0 0 0 0 0 0 0 0 4. CFC Discount 100% Borrower 0 0 0 0 0 0 0 0 0 0 Tot Int - CFC Debt Less Discounts 647,611 60:,557 553,094 502,898 448,420 391,921 335,996 287,309 236,877 18 , 028 Principal Payments - CFC Debt 94:,,04 992,130 1,041,680 1,093,820 1,H8,693 1,206,450 1,090,307 1,106,485 1,158,089 1,21 , 162 ,J, Aclv,mce.,, • ci::c Debt (I [I 0 (l ll 0 I) ll I) () 1··,, Cl1c111oes 11'1 I. rD · CFC Buy OUI: '.) r j(;'/ l (;](_) '.I 0 () 0 () () 0

1~1¥ J ,, :~: ~) ) I' ,rj ,Lj EJ L.. L.on(1 Term Debt ·· CFC End of Yoar .,. '1,r j09 J' L\, jJ.7 / '.?.3] . 11, ;~·,:_:,,fib 'l 1.0, lfl ·1 ,, 'i:I.'. 9., 0.'.:13, 03:D i' r 02 ~,:if)B 6 1 7]6,, :::fll [),, G.:~:~> 1 ·;•Jb 4r4?:lr70"r M c1·w.r:,1:;1c:s in l]al,,1illC1,: Slieet. B11y Oul 'I, Unamorti;:ed Gain•· Bll!J. of Y,c:ar :1 :] () (I () u 0 () Cl () ·c () [I () 0 ~~- Amortized Gain on Prepayment C ll ::l, U11arnortized Gair:, .. E:nd of Y,c,,:c1r C (I [I 0 () [I 0 Cl 'I, Genm,il Funds Us,,,d in Buy 01.i:t (J 0 [I C () :1 (', (':I 0 ti!, 01th1~:r Interest E):.pense 0 I,) 0 0 iJ () ,,I C () 0 ::l L)'7 () rot. lnl.ere:sl: b:p. l.es:s. Discour1:t:,, :'., 0 l .1 f "1:J0::.1 ~'.,B.t'"J;~>O!J :3, .i. 7 :) ,. •:)'J l ]I' :J::::U, 613 Cl '], ]6(i, O!:,G , ~100" (i~~] :,,, ,1:J6, 1=)1 ! J,'11'.li,UJC. ] '~);'.'I,,'") ~,:J. 1 I, U l:3

Pw1,1rnm prnvldiid ltoy Nati,,:,n.il Rmal l.ltililim; Coop,,,rnt.lvE! l'i111,u1c:,1 c:,:11rp1i,rntio111 "Gomp,1ss v,,,rnicm ., :,.01, LEA COUNTY ELECTRIC COOPERATIVE, INC. BASE Fuel Adjustment Allocation Factors BASE RATE $0.0651540

Purchased Base Power Base Cost Adjust. Total To al Adjust. Year MWh Sold Power Cost Adjustment Factor Adjustment Factor 2013 1,212,204 $ 58,913,007 $ 78,979,939 $ (20,066,932) $ (0.0165541) $ (18,908,680) $( .0155986) 2014 1,223,743 $ 62,447,433 $ 79,731,751 $ (17,284,318) $ (0.0141241) $ (16,126,066) $( .0131777) 2015 1,234,479 $ 66,144,960 $ 80,431,245 $ (14,286,285) $ (0.0115727) $ (13,128,033) $( .0106345) 2016 1,244,276 $ 70,003,391 $ 81,069,559 $ (11,066,168) $ (0.0088937) $ (9,907,916) $( .0079628) 2017 1,253,693 $ 74,059,993 $ 81,683,114 $ (7,623,121) $ (0.0060805) $ (6,464,869) $( .0051567) 2018 1,262,348 $ 78,229,708 $ 82,247,022 $ (4,017,314) $ (0.0031824) $ (2,859,062) $( .0022649) 2019 1,271,627 $ 82,819,173 $ 82,851,586 $ (32,413) $ (0.0000255) $ 1,125,839 $ .0008854 2020 1,280,632 $ 87,575,822 $ 83,438,297 $ 4,137,525 $ 0.0032308 $ 5,295,777 $ .0041353 2021 1,289,349 $ 92,580,621 $ 84,006,245 $ 8,574,376 $ 0.0066502 $ 9,732,628 $ .0075485 2022 1,297,840 $ 97,849,674 $ 84,559,467 $ 13,290,207 $ 0.0102403 $ 14,448,459 $ .0111327

WFEC A&G PAYMENT

Base Cost Adjust. Cost of Year MWh Sold Adjustment Factor Pur.Power 2013 1,212,204 $ 1,158,252 $ 0.0009555 $ 60,071,259 2014 1,223,743 $ 1,158,252 $ 0.0009465 $ 63,605,685 2015 1,234,479 $ 1,158,252 $ 0.0009383 $ 67,303,212 2016 1,244,276 $ 1,158,252 $ 0.0009309 $ 71,161,643

,., 1 20'17 ~1 J ,:~~ fi ::) II 6 I~;~ :3 ,l«r ·1 , ·11 fiB ,2!:i2 r,Ji 0. 000B:i~:3B f 7 :~S l' :~~ ~1 i:~ :, :~~, 4 fi, 20'18 ''I ,262,::141:l .)r ·1, ·151:1,252 ,),Ir o.ooo:;iI·175 ,,If 7B,3B7,!il60 •Ci• :;!0'IEl 11,27'1,f:>27 .)er 'I, '15B,2!:i2 ,),if o.ooo:;i 1 ·1 oa ,,1 a:3,!:177,,42!:i 2020 11,280,63:i~ .)

II :~:;

LEA COUNTY ELECTRIC COOPERATIVE, INC.

REQUESTING GUARANTEED FEDERAL FINANCING BANK (FFB) LOAN

WHEREAS, it has been determined on the basis of the current Construction Work Plan that financing is needed for electric facilities as shown on RUS Form 740c, Cost Estimates and Loan Budget for Electric Borrowers, as follows:

RUS Guaranteed Federal Financing Bank (FFB) Loan Requested for Facilities $24,508,000

NOW THEREFORE BE IT RESOLVED, that Lea County Electric Cooperative, Inc. makes application to the Rural Utilities Service pursuant to 7 CFR Part 1710 for a guaranteed FFB loan in the approximate amount of $24,508,000 to be used in accordance with the provisions of 7 CFR Part 171 0 to finance the above mentioned facilities.

BE IT ALSO RESOLVED, that the RUS guaranteed FFB loan shall bear a maturity date to cover an approximate period of thirty-five years.

BE IT ALSO RESOLVED, that the Board of Trustees of Lea County Electric Cooperative, Inc. authorizes its officers to execute and attest all necessary papers, documents, and applications related to the foregoing.

BE IT FURTHER RESOLVED, that the manager is authorized on behalf of the Borrower (a) to execute and "liver from time to time advance reqests, maturity extension election notices, prepayment election notices and .-:financing election notices, in the form of such instruments attached to the note payable to FFB, and (b) to specify information and select option as provided in such instruments.

BE IT FURTHER RESOLVED, that the Lea County Electric Cooperative, Inc. hereby authorizes the RUS to release appropriate information and data relating to the application to the FFB and any existing supplemental lenders.

CERTIFICATION OF SECRETARY

I, DAN HARDIN, Secretary of Lea County Electric Cooperative, Inc., do hereby certify that the above is a true and correct copy of a resolution adopted at the meeting of the Board of Trustees of Lea County Electric Cooperative, Inc. on May 21, 2013, ;:it which a quorum wa,-, prrisnnt and voted.

SEAL According to the Papmwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless It displays a valid 0MB control number. The vand 0MB control number for this information collection is 0572-0032. The time required to complete this Information collection is estimated to average10 hours per response, including the lime for reviewing instrcutions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

Tlils data will be used by RUS to review your financial situatlon Your response is required (7 USC 901 et seq) and is not confidential Fonn Approved USDA-RUS 0MB No. 0572-0032

COST ESTIMATES AND LOAN BUDGET BORROWER AND LOAN DESIGNA110N NM 23V8 LEA FOR ELECTRIC BORROWERS To: U.S. Dept. of Agriculture, RUS. Washington, D. C. 20250 COST ESTIMATES AS OF: (Month, Year)

INSTRUCTIONS See tabs "Pgl Instr'' through "Pg4 Instr" Apr-13

SECTION A. COST ESTIMATES LOAN PERIOD 4 YEARS

BORROWER'S l. DISTRJBUTION COST ESTIMATES RUS USE ONLY 100 a. New Line: (Excluding Tie-Lines) Construction ~nsumers Miles IOI Underground 30 8.10 $ 453,600 102 Residential 362 9.00 690,300 104 Oilfield 420 41.00 2,710,100 105 Irrigation 244 19.10 1,264,420 106 Miscellaneous !02 3.70 305,250 Total Consumers. ... 1,158 Total Miles ...... 80.90 Less Contributions ...... ········ $ 3,920,460 Subtotal (New Line - code JOO) . ... ········· ...... ····· $ 1,503,210 200 b. New Tie-Lines Line Designation Miles *200-27 Bronco, Build 10.2 miles ofnew24.9 kV 30 distribution line 10.20 $ 500,000 200-29 Allred, Build 0.5 miles of 556 ACSR 0.50 67,500 200°30 Darby, Build 3.0 miles of 556 ACSR 3.00 270,000 200-3 I Higginbotham, Build 1.0 mile of 556 ACSR 1.00 90,000 200-32 Plains, Build O. l miles of 795 MCM ACSR 0.10 22,000 200-33 Prairieview, Build 2.0 miles of397 ACSR 2.00 140,000

Subtotal from page JA ········ ...... Miles .... ··············· - - Subtotal (Includes subtotals from pages JA). Miles. ········· 16.80 $ 1,089,500 JOO c. Conversion and Line Changes Line Designatioq Miles 300-64 Allred, Convert 0.5 miles of 1/0 ACSR 0.50 $ 67,500 300-65 Ancell, Convert 1.5 miles of#4 ACSR to 4/0 ACSR 1.50 97,500 300-66 Darby, Convert 0.5 miles of 10 #4 ACSR to 30 J/0 ACSR 0.50 37,500 300-67 Darby, Convert 0.8 miles of 10 #4 ACSR to 30 1/0 ACSR 0.80 60,000 300-68 Denton, Convert 0.3 miles of 4/0 ACSR to 795 MCM ACSR 0.30 66,000 300-69 Gaines, Convert 0.8 miles of#4 ACSR to 4/0 ACSR 0.80 78,000 300-70 KCM, Convert 0.5 miles of 10 #4 ACSR to 30 1/0 ACSR 0.50 37,500 300-71 Lovington, Convert 1.6 miles of 4/0 ACSR to 556 ACSR l.60 144,000 300-72 Lovington, Convert 0.2 miles ofV0 #4 ACSR to 30 1/0 ACSR 0.20 20,000 300-73 Lovington, Convert 3.0 miles of#2 ACSR to 4/0 ACSR 3.00 195,000 300-74· Lovington, Convert 3.0 miles of#2 ACSR to 397 ACSR 3.00 210,000 300-75 Lovington, Convert 2.0 miles of2/0 ACSR to 556 ACSR 2.00 180,000 300-76 Lovington, Convert 0.1 miles of#2 IJG to 500 MCM UG 0.10 49,500 300-77 Lovington, Convert 0.4 miles of 10 #4 ACSR to 30 1/0 ACSR 0.40 40,000 300-78 Plains, Convert 0.3 miles of 4/0 ACSR to 397 ACSR 0.30 42,000 300-79 Prairieview, Convert 3.0 miles of 1/0 ACSR to 397 ACSR 3.00 210,000 _l()() .. 81) Prniri,:vii::w, Cmiverl 1.4 miles uf !'/4 AC::;R and l/0 /\CSR In ,110 /I.CSR 1.40 91,000 '\f)f) .. ,1/0 ACSR 2 ()() 130,()()1) ...... JOO fl>! l'rnirieview, Conveil 0.2 miks of 1,:) 114 /\CSR to 'M :1/0 ACSR O.W 20.000 -"\00-K':i Prairicvit:w~, C~~n.Y.~~.~:t"'J.O mile:,; of .i;4 AC'S]{ and i/2 /\CSR !.o 397 /\CSR '!.1)(1 ,190,000 :ioo .. 8ii .!~!:~:~.~ ..~.!cviev'I\ C011vcrt ~:i.o rr1iles of N4 /\CSR L~! .... ~/.\~ .. /\CSR 2 .. 00 i:w,ooo

S'nbMlol frum f.,rage .IA . /vliks ...... Subtotol. (!m.. :lud.. ~s subtota{sji·mn _ria,:_1;es lA) .. Mlle:,, . . HJ. !I) $ =i,,0?.5,51.)(1 ' ✓ \() d. Nt:w Sub:,:tar.hnis, ,'\1-11i'ti;·htn1:i St.r11i1,.'ns, Mclc:riug Points, etc. ~:itiJion .Desi);:,!1at.i9_u t\/A kVto_kV 411., ... 1d NeiN ! ligginbothnm Sul.t~itaiton 20/2(,/33 69/t}) $ 2, 1

Subtotal. . ' ...... '.' ...... 2,100,0110 (l,ev. /(} .. (}/, /12, 21.5/0,!) ...

11 BORROWER AND LOAN DESIGNATION NM23V8LEA

SECTION A. COST ESTIMATES (cont.) BORROWER'S RUS USE ONLY COST ESTIMATES ~(\() ~ - ~ .. , .. "'" -~-~A~~0 -~.... &~ ...... , •• ._.;.,,,..,...... bl ..,_._,.,.., v1.1a11.51i.,.i, Station Designatio11 Description of Changes · ~oo-43 North Sub Independent DC system, SCADA RTU, increase to 25/33/42 MVA $ 1,750,000 500-60 Nev.1ex Sub Replace two breakers and add one new breaker (sElit B2307 circuit) 150,000 500-61 Prairieview Sub New 10 MVA transformer and U£grades 1,100,000 500-62 Allred Sub New Circuit Breakers 50,000

Subtotal From Page 2A ...... Subtotal ...... " ...... $ 3,050,000 600 f. Miscellaneous Distribution Equipment 601 (I) Transfonners and Meters Construction Transformers Meters Overhead 1350 10 Meters 200 $ 2,043,000 Pad Mount 40 30Meters 1200 1,004,000 > lOOkVA 30 PT's&CT's 450 1,191,000 Subtotal code 601. . (included in 600 codes below) $ 4,238,000

602 (2) Sets of Service Wires to increase Capacity lO Sets $ 100 603 (3) Sectionalizing Equipment Assorted Equipment Various System Wide 300,000 604 ( 4) Regulators - Various Locations 240,000 605 (5) - Various locations 631,500 606 (6) Replacements - Poles 1,322 Distr. Poles 1,368,270 606 (7) Crossarm Replacements - 2,000 Distr. Crossarms 340,000 607 (8) Miscellaneous Replacements - 600 miles 692,783 * 609 (9) Miscellaneaous Plant Additions Add gravel to 8 stations 300,000 ,15 (10) Master Communications 3,559,314 Contributions from AT&T for conununications (360,000) Subtotal ALL 600codes ...... $ 11,309,967 700 g. Other Distiibution Items 701 (1) Engineering Fees $ - 702 (2) Security Lights 910 installations 263,900 703 (3) Reimbursement of General Funds (see attached) 0 704 (4) Load Management/ SCADA 75,000 Subtotal ...... $ 338,900

TOTAL DISTRrBUTION••.•..••• s 22,417,077 800 2. Tnmsrnission a. New Line Line Design1:_1tion Yoltage Wire Size Miles 800-01 $ - ...

,, ., - """'" ...... ,

,......

...

)Vuhtola/ ·· ~;ft!e.s,.tl·om Furte 2A ,. .. .. """ -

T1:>/a/ A.fifes . . . " .. S11b101a/ fimn l'agu ?ii .. . " ...... " - iS'-!{btotal ...... $

' NUS Form 7,!0c (Nev. JO 01_ V:1, .:!15/0./) " Loss $81 l to round HUS ft.1mJin9 to lowest $·1,000 .. COST ESTIMATE AND LOAN BUDGET FOR ELECTRIC BORROWERS II I BORROWER AND LOAN DESIGNATION NM23 V8 l RA 1 ··

SECTION A .COST ESTIMATES (cont.) BORROWER'S RUSUSEONLY COST ESTIMATES 900 b. New Substation, Switching Station, etc. Station Designation kVA kV TO kV

*900-01 New Gaines County Interchange 50MVA base 115/69 kV $ 2,900,000 902 - 903 - 904 - 905 - 906 - 907 - 908 - Subtotal From Page 3A ...... - Subtotal ...... $ 2,900,000 1000 c. Line and Station Changes Line/St~~tion Description of Changes *1000-28 a. Diesel North Substation 115 kV - relaying, communications $ 150,000 *1000-32 b. Waits Interchange Replace line relaying and tone equipment & SPS driven relaying 500,000 *1000-34 c. South Lovin!lton Substation Add 69 kV breaker and associate relaying 110,000 *1000-35 d. Famariss Substation Add 69 kV breaker and associate relayins; 110,000 *1000-36 e. Darby Substation Add 69 kV breaker, steel, switchgear and associated rela;ring 140,000 1006 - 1007 - 1008 -

Subtotal From page 3A through 3C ...... - Subtotal ...... $ 1,010,000 !100 d. Other Transmission Items 1101 (1) R/W Procurement $ - 1102 (2) Engineering Fees - 1l03 (3) Replacements, Poles and Misc. - 1104 (4) Reimbursement of General Funds - Subtotal ...... $ -

TOTAL TRANSMISSION...... $ 3,910,000

1200 3. GENERATION (including Step-up Station at Plant) 1201 a Fuel Nameplate Rating kW $ - 1202 b. -

TOTAL GENERATION ...... $ -

1300 ii .. l lE/\DQUARllmS F1\CIIJTll:S 1101 n, New or m:kliliona! Facilities (i\Unch RUS Form 'l40f) $ - '""" Ll02 b,

TOTAi, m:AIH)llAln'irnS FACIUIU,:S .. ' ., . '' ""'' ",, ,, ,, ., ~ ,.. ~~IOIIIIIIIIIIIOO~DDDIC~ IL'lll'MII

······················· I/US Form 740c (Nev. 10--0!. //2, 2/5i0-1) COST ESTIMATI'. /\lm I .OM, BUDGET FOR ELECTRIC l"!Ol(ROWER.'; II BORROWl'R /IND I 01\N DESIGNATION 1,J\! 23 v:1, !.EA

SECTION i\. crnn E'fflMATES l:lORRi'IWFR'S RUS USE ONLY COST ESTIMATES 1400 5. ACQl. HSITJONS 1401 a. Consumers Miles $

·1L, 0. ------TOTAL ACQUISITIONS ...... $

1500 6. ALL OTHER 1501 a. $ 1502 b. 1503 c. 1504 d. 1505 e.

TOTAL ALL OTHER...... s

SECTION B. SUMMARY OF AMOUNTS AND SOURCES OF FINANCING

1. ORA.ND TOTAL .. ALL COSTS ...... $ 26,327.,077 2. FUNDS AND MATERJALS AVAILABI.E FOR FACILITIES a. Loan Fmids ...... $ l,119,763 b. Materials and Special Equipment ...... c. (ic:ncral Funds ...... Purpose l $ 699,314 Purpose 2 $ - Purpo8e 3 $ Purpose 4 $ Total General Funds Applied ...... _$____ 69_9 __ ,3_1_4 __ d. Total Available Funds and :Vfaterials ...... $ 1,819,077 3. NEW FINANCING REQUESTED FOR FACILITIES ...... $ 24.,508,000 4. RUS LOi\t,J RE(,lUESTED FOR FACl.LHlES...... l 00'!1, $ 24,508,000 5; TOTAL SUPPLEMENTAL LOAN REQUESTED ...... $ ... NntignaL,B,gq1t__lJtilities Cooperatiyr'-E_11·1a11cc Ci,rp_!:1.ration Name of Supplemental l.ender ' 6. CAPITAi. TERl\l CERTIFICATE PURCHAS.ES (CFC Loan only) .... . $ ... 7. SUPPLEMENTAL LOAN REQUESTED FOR FACILITIES ...... $ - 8. 100% SUPPLEMENTAL LOANS (SEE RES Bulletin 20-40,Att. c)• $ . • ldentifv rn section A by budget purpose and .separate subtotals. SECTION C. CERTIFICATION

We, the. undersigned, certify that:

I. Upon completion ofthe electricalji1cilities contained herein and any others uncompleted at this lime lmtJbr which .,,.::ur:::"'":;,, is nvailable, the system will he capable ofadequately and dependably serving the prl!/ected luadfi1r the i loan period as contained in our current RUis,' approved Power l?eq,uirement Study and Construction IVork Plan. / 2. Negotiations have been or will be initiated with our power supJ;/ier, where necessmy, to obtain new delivery points ~mdlor additional capacity at existing ones to adequateZv suppf} th1pro}efed load upon which this loan application zs based. / 1 1 I I

3. The daz:i co,1,ained herein and :1;/ '"'Ff/Ut, documents haJe fz,, ,;;le, r:J)nf mv knmrledr;e. be,,: ,·orrect(F I ,, ; ' ' ~ ' , J , L

,md in ac::~-~~:(1:;\ with RUS Bulletin 20-2. •- f/.11'·/~'J; ' \J \ l Ji .

Dah' - --,JI ' ' X!Vllli•z· ,, & General /' /,C/1, .. ;t.Y Dute f' Jl5!m {~;,:.,,..~-ce_n_"t_. _____ ------

LEA COL\,TY ELECTRIC COOPER-\TIVE, INC. Ccrporate 1\/amc o(Borro,rer

GFR Initials

RUS Form 740c (Rev. !0~01, V2, 2/5/0-1) PAGE 4 OF 4 PAGfr;