El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. The company owns or has significant ownership interests in 6 electrical generating facilities providing it with a net dependable generating capability of approximately 1,785 megawatts (MW). Facilities Palo Verde Station: The company owns a 15.8% interest, or approximately 633 megawatts, in the 3 nuclear generating units and Common Facilities at Palo Verde, in Wintersburg, Arizona. The Palo Verde Participants include the company and 6 other utilities, including Arizona Public Service Company (APS), Southern California Edison Company (SCE), Public Service Company of New Mexico (PNM), Southern California Public Power Authority, Salt River Project Agricultural Improvement and Power District (SRP) and the Los Angeles Department of Water and Power. Newman Power Station: The company’s Newman Power Station, located in El Paso, Texas, consists of 3 steam-electric generating units and 2 combined cycle generating units, including a 278 megawatts combined cycle generating unit designated as Newman Unit 5. The aggregate net capability of the Newman Power Station is approximately 752 megawatts. Rio Grande Power Station: The company’s Rio Grande Power Station, located in Sunland Park, New Mexico, adjacent to El Paso, Texas, consists of 3 steam-electric generating units with an aggregate net capability of approximately 229 megawatts. The units operate on natural gas. Four Corners Station: The company owns a 7% interest, or approximately 104 megawatts, in Units 4 and 5 at Four Corners, located in northwestern New Mexico. Each of the 2 coal-fired generating units has a total net capability of 770 megawatts. Copper Power Station: The company’s Copper Power Station, located in El Paso, Texas, consists of a 62 megawatts combustion turbine used primarily to meet peak demands. The unit operates on natural gas. Hueco Mountain Wind Ranch: The company’s Hueco Mountain Wind Ranch, located in Hudspeth County, east of El Paso County and adjacent to Horizon City, consists of 2 wind turbines with a total capacity of 1.32 megawatts of which a portion can be used as net capability for resource planning purposes. Transmission and Distribution Lines and Agreements The company owns or has significant ownership interests in four 345 kilovolts (kV) transmission lines in New Mexico, three 500 kV lines in Arizona, and owns the transmission and distribution network within its New Mexico and Texas retail service area and operates these facilities under franchise agreements with various municipalities. The company is also a party to various transmission and power exchange agreements that, together with its owned transmission lines, enable it to deliver its energy entitlements from its remote generation sources at Palo Verde and Four Corners to its service area. Springerville-Luna-Diablo Line: The company owns a 310-mile, 345 kV transmission line from Tucson Electric Power Company’s (TEP) Springerville Generating Plant near Springerville, Arizona, to the Luna Substation near Deming, New Mexico, and to the Diablo Substation near Sunland Park, New Mexico. West Mesa-Arroyo Line: The company owns a 202-mile, 345 kV transmission line from PNM’s West Mesa Substation located near Albuquerque, New Mexico, to the Arroyo Substation located near Las Cruces, New Mexico. Greenlee-Hidalgo-Luna-Newman Line: The company owns 40% of a 60-mile, 345 kV transmission line between TEP’s Greenlee Substation near Duncan, Arizona to the Hidalgo Substation near Lordsburg, New Mexicol approximately 57% of a 50-mile, 345 kV transmission line between the Hidalgo Substation and the Luna Substationl and 100% of an 86-mile, 345 kV transmission line between the Luna Substation and the Newman Power Station. Eddy County-AMRAD Line: The company owns 66.7% of a 125-mile, 345 kV transmission line from the company’s and PNM’s high voltage direct terminal at the Eddy County Substation near Artesia, New Mexico to the AMRAD Substation near Oro Grande, New Mexico. Palo Verde Transmission and Switchyard: T