NORTHERN RIO ARRIBA COOPERATIVE, INC.
SEVENTH REVISED RATE NO. 15
CANCELING SIXTH REVISED RATE NO. 15

TIME OF USE – COMMERCIAL
(Schedule “TOU-C”)

                                                     Page 2 of 7

NET RATE PER BILLING PERIOD: (or part thereof, per service) (Continued)

    The Cooperative will work with the individual Consumer load to determine the hours other than those specified above, The Off-peak hours will be variable and each consumer's use of Off-peak hours is limited to a maximum of twelve hours per day.

    This rate is voluntary, subject to meter availability and installation, and shall be applicable with the first complete billing cycle after receipt of a customer's written request.

    The system charge covers a portion of the customer metering and billing expenses and a portion of the operation and maintenance expenses of the consumer's service equipment.

ANNUAL RATE:

    Upon request of the consumer and for his convenience, provided the consumer has received service from the Utility at the same location for the preceding twelve (12) months, the Utility will render one bill annually payable in advance. The annual prepayment will be based on the consumer's preceding twelve (12) month's usage. The annual rate per year will consist of twelve (12) billing periods. At the end of each billing period, the Utility Will read the consumer's meter and will compute the charges for that billing period according to the provisions of this rate schedule, including applicable purchased power and tax adjustments. The calculated amount for the billing period will be subtracted from the consumer's prepaid balance. Following the twelfth billing period, or the billing period ending in May of each year, which-ever occurs earlier, the

NORTHERN RIO ARRIBA COOPERATIVE, INC.
SEVENTH REVISED RATE NO. 15
CANCELING SIXTH REVISED RATE NO. 15

TIME OF USE – COMMERCIAL
(Schedule “TOU-C”)

                                                     Page 3 of 7

ANNUAL RATE: (Continued)

consumer will be rendered a reconciling bill showing the consumer's amount due to the Utility or credit balance. The bill will also reflect the consumer's following year's prepayment, should the consumer elect to continue under the program.

MINIMUM CHARGES:

    The minimum charges per billing period shall be the highest of the following!~

    (1) $25.00 System Charge per billing period (no kWh allowance).

    (2) Minimum charges established in accordance with Line Extension Policy.
            No kWh allowance for the first $25.00.

    (3) All consumers requiring more than 10 kVA transformer capacity shall be charged an additional $1.25 per kVA of transformer capacity in excess of 10 kVA for which power usage will be allowed at the foregoing rates. This charge shall be in addition to the $25.00 System Charge. No kWh allowance for the first $25.00,

    (4) Minimum charges established by special contract between the consumer and the Utility. This charge shall be in addition to the $25.00 System Charge. No kWh allowance for the first $25.00.

NORTHERN RIO ARRIBA COOPERATIVE, INC.
SEVENTH REVISED RATE NO. 15
CANCELING SIXTH REVISED RATE NO. 15

TIME OF USE – COMMERCIAL
(Schedule “TOU-C”)

                                                     Page 4 of 7

MINIMUM CHARGES: (Continued)

      Any capacity and energy allowance shall be made only during the billing period in which they occurred, unless otherwise specified by contract.

FUEL AND PURCHASED POWER COST ADJUSTMENT:

    The utility shall, if 'the fuel and purchased power expense is increased or decreased above or below the base fuel and purchased power cost of $.05106/kWh sold, flow through to the users such increases or decreases, in accordance with New Mexico Public Regulation Commission Rule No. 550 (17.9.550 NMAC).

DEBT COST ADJUSTMENT:

    Billing under this schedule may be increases or decreased by amount in the cost of debt capital incurred pursuant to securities, the issuance of which has been approved by the New Mexico Public Regulation Commission ("Commission"), of the debt cost utilized to establish these rates. The base cost of debt capital is $282,889 as determined by an annualized year-end 2003 study. The applicable debt cost expense shall be determined every calendar quarter by adding the actual changes in the base cost to or, as the case may be, subtracting these changes from incurred after the end of the period used to determine the Base Cost. In accordance with Rule 540, demand allocation factors, based upon the Cooperative's current rates as established in the

NORTHERN RIO ARRIBA COOPERATIVE, INC.
SEVENTH REVISED RATE NO. 15
CANCELING SIXTH REVISED RATE NO. 15

TIME OF USE – COMMERCIAL
(Schedule “TOU-C”)

                                                     Page 5 of 7

DEBT COST ADJUSTMENT: (Continued)

annualized cost of service study for 1999, will be used to allocate to each class of service. These allocation factors are as follows:

    The Debt Cost Adjustment amount will be allocated to each class of consumers for the next succeeding calendar quarter by multiplying the applicable debt cost expense by the demand allocation factors. The distribution of the Debt Cost Adjustment amount among the consumers within each class of service will be based on kWh sales.

NORTHERN RIO ARRIBA COOPERATIVE, INC.
SEVENTH REVISED RATE NO. 15
CANCELING SIXTH REVISED RATE NO. 15

TIME OF USE – COMMERCIAL
(Schedule “TOU-C”)

                                                     Page 6 of 7

TAX ADJUSTMENT:

    Billing under this schedule may be increased by an amount equal to the sum of the taxes payable under the Gross Receipts and Compensating Tax Act and of all other taxes, fees, or charges (exclusive of Ad Val Orem, State and Federal Income Taxes) payable by the Utility and levied or assessed by any governmental authority, including the Supervision and Inspection Fees payable to .the NMPUC, 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.

TERMS OF PAYMENT:

    All bills are due and payable in full within 20 days of the bill rendition date.

BILLING PERIOD:

    The billing period shall be approximately 1/12 of a year but not necessarily a calendar month.

BUDGET BILLING:

    Upon the request of the consumer and for his convenience, the Utility will provide budget billing in accordance with the rules and regulations filed by the Utility and approved by the New Mexico Public Regulation Commission.

NORTHERN RIO ARRIBA COOPERATIVE, INC.
SEVENTH REVISED RATE NO. 15
CANCELING SIXTH REVISED RATE NO. 15

TIME OF USE – COMMERCIAL
(Schedule “TOU-C”)

                                                     Page 7 of 7

TEMPORARY OR UNUSUAL SERVICE:

    Temporary or unusual service will be covered by the Utility's rules and regulations. In such cases, the minimum charges, conditions of furnishing substation equipment, connection and disconnection of service and special conditions will be covered by special agreement with the customer. The customer shall pay for all expenses involved in furnishing the temporary service.

CONDITIONS OF SERVICE:

    (1) The Utility's rules and regulations, filed with the New Mexico Public Regulation Commission shall apply.

    (2) All wiring, pole lines and other electrical equipment electrically on the load side of the metering point shall be considered the distribution system of the consumer and shall be furnished and maintained by the consumer.

    (3) The consumer's installation shall conform to City, State, and National Electrical Codes and Electrical Safety Codes,

    (4) The consumer shall not resell or share electric Service with others.

    (5) Special conditions of service shall be covered by contract.