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SMALL GENERAL SERVICE RATE Page 1 of 5 APPLICABILITY: This rate schedule is available to all customers for electric lighting, power, and heating service where facilities of adequate capacity and suitable voltage are adjacent to the premises to be served. The Customer and the Company will determine whether a new Customer qualifies for this rate schedule. Service under this rate shall be limited to customers whose maimum thirty (30) minute kilowatt (kw) load does not eceed 50 kw. If the Customer's monthly maimum demand eceeds 50 kw for two (2) consecutive months, the Customer shall no longer be eligible for service under the Small General Service Rate, but shall immediately become eligible for service under the General Service Rate or Large Power Service Rate, as applicable. The Customer shall not be eligible for service under the Small General Service Rate for a period of twelve (12) consecutive months thereafter. TERRITORY: Areas served by the Company in Dona Ana, Sierra, Otero and Luna Counties. TYPE OF SERVICE: Service available under this rate schedule will be determined by the Company and will normally be single or three phase 120/240 volt at the option of the Company and at a standard Company-approved voltage. All service will be taken at a single point of delivery designated by the Company. MONTHLY RATES: STANDARD SERVICE MONTHLY RATE: IL~~u~s~to~m~e~r~C~h~a~~~e~(p~e~r~m~e~te~r~p~er~m~on~t~hL) -L ~$~1~4~.0~0~ l Demand and Energy Charges Summer Winter (May through October) (November throuah April) Demand Charge per Billing kw $17.36 $15.11 Energy Charge per kwh $0.03553 $0.02543 Advice Notice No.."..._----:2::.=3:.::9~..-- JUL -1 2016 r" SignaturelTitle ~'(. ;C[d.

Page 2 of 5 ALTERNATIVE SERVICE MONTHLY RATE I_C_u_s_to_m_e_r_C_h_a~~~e_(~p_e_r_m_e_te_r~p_er_m on_t_h)~: ~ ~$~1_4_.0_0 l Energy Charges Summer Winter (May throuqh October) (November throuqh April) Enerqy Charqe per kwh $0.10089 $0.09079 If a Customer on the Alternative Monthly Rate meets or eceeds 7,000 kwh or 15 kw during any billing month, the Customer will immediately be transferred to and remain in the Standard Service Monthly Rate. OPTIONAL TIME OF USE (TOU) SERVICE MONTHLY RATE This optional rate is available to any customer that does not own distributed generation facilities at the premise served under this rate schedule. I_C=-u:...;s-'-to'-m_e_r_C'-h_a~rg""-e_(.>.Lp_e_r _m_e_te_r~p_er_m on_t_h)~: ~ ~$~1_4_.0_0 I Demand and Energy Charges Summer Winter (June through September) (October through May) Demand Charqe per Billinq kw $12.51 $10.89 Enerqv Charqe per kwh: On-Peak $0.10060 ------ Energy Charge per kwh: Off-Peak $0.04339 $0.04339 BY The On-Peak period shall be from 12:00 P.M. to 6:00 P.M., Mountain Daylight Time, Monday through Friday, for the months of June through September. The Off-Peak period shall be all other hours not covered in the On-Peak period. MONTHLY MINIMUM CHARGE: The Customer Charge plus the applicable Demand Charge and Ta Adjustment. DETERMINATION OF BILLING DEMAND: Maimum demand will be defined as the highest thirty (30) minute average kilowatt load JUL -1 2015 Advice Notice No. -=2,:;39:...-. _ SignatureITitle!'?cd-: 1. 7L-.::-f- Senior Vice President", CFO

Page 3 of 5 determined by measurement. The billing demand will be the highest of: (a) the maimum measured demand, or (b) 60 percent of the highest measured demand established during the billing months in the twelve (12) month period ending with the current month, or (c) a minimum demand of 15 kw. FUEL AND PURCHASED POWER COST ADJUSTMENT CLAUSE (FPPCAC): All service taken under this rate schedule is subject to the provisions of the Company's Rate Schedule No. 18 (FPPCAC). EFFICIENT USE OF ENERGY RECOVERY FACTOR (EUERF): All service taken under this rate schedule is subject to the provisions of the Company's Rate Schedule No. 17 (EUERF). TA ADJUSTMENT: Billings under this rate schedule may be increased by an amount equal to the sum of taes payable under the Gross Receipts and Compensating Ta Act and of all other taes, fees or charges (eclusive of ad valorem, state and federal income taes) payable by the utility and levied or assessed by any governmental authority on the public utility service rendered, or on the right or privilege of rendering the service, or on any object or event incidental to the rendition of the service. VOLUNTARY RENEWABLE ENERGY (VRE): This rate schedule is subject to the provisions of the Company's Rate Schedule No. 32 (VRE). TERMS OF PAYMENT: All bills under this rate schedule are due and payable when rendered and become delinquent BY 0 Advice Notice No, --=2::.::3:.::9~ _ JUL-1 2016 SignaturelTitle --/4f:t...... (, )/ :C?

Page 4 of 5 twenty (20) calendar days thereafter. If the twentieth day falls on a holiday or weekend, the net Company business day will apply. TERMS AND CONDITIONS: Service supplied under this rate schedule is subject to the Company's Rules and Regulations on file with the New Meico Public Regulation Commission and available for inspection at Company offices. The Company at its option shall install metering equipment to measure the customer's thirty (30) minute average kilowatt-demand for purposes of determining the applicable rate schedule. In addition to the above, the Optional TaU Monthly Rate is available under the following conditions: 1. Under TaU, a meter will be installed at the Customer's location that allows the Customer to pay for electricity based on the time of day it is used. The meter will record the amount of electricity used during two mutually-eclusive time periods. These periods are an On-Peak period of 12:00 P.M. to 6:00 P.M., Mountain Daylight Time, Monday through Friday, for the months of June through September, and an Off-Peak period that includes all other hours not covered in the On-Peak period. 2. The Customer agrees to remain on the TOU rate for a minimum of twelve (12) consecutive months. At any time after the initial twelve (12) consecutive months, the Customer may request removal from the TaU rate. 3. The Customer agrees that TaU billing will become effective with the first complete billing cycle following installation of the TaU meter. CHURCH RIDER: This rider is applicable only to the place of worship such as a church, synagogue or sanctuary. The rider is not applicable to separate offices, meeting halls, schools or other ancillary buildings which may be associated with the religious organization. Only "religious organizations" as defined by the Charitable Solicitations Act ( 57-22, 2010 NMSA 1078) qualify under this rider. This rider is not available to any customer that owns distributed generation facilities at the premise served under this rate schedule. BY, Advice Notice No.. -=--_-..:2:!3:.!::9~_..,.._-...,..,-- JUL-1 2016 SignaturelTitle 1L.ft(.~

Page 5 of 5 This rider provides a credit on the Customer's monthly bill when the average rate per kwh for a billing month within a calendar year from the table below eceeds the applicable maimum rate per kwh for the same calendar year. The credit is calculated based only on the demand and energy charge components of the bill and is equal to the demand plus energy charges minus the energy consumed times the maimum rate per kwh using the formula: CR = (BD + BE) - (EC MR), where CR = Credit Amount BD = Billed Demand Charge BE = Billed Energy Charge EC = Energy Consumed (kwh) MR = Maimum Rate per kwh Maimum Rate per kwh for Calendar Year 2016: $0.18 Maimum Rate per kwh for Calendar Year 2017: $0.19 Maimum Rate per kwh for Calendar Year 2018: $0.20 This Rider will remain in effect until the effective date of a change to this rate schedule as a result of a general rate case, but will terminate no later than the end of the December 2018 billing month. BY Advice Notice NO._----::- --:2:.:3;=:9 _ JUl -1 2016 SignaturelTitle ~/. )w-