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INTERCONNECTION AGREEMENT <br />BETWEEN <br />SAN MARCOS ELECTRIC UTILITY <br />AND <br />LCRA TRANSMISSION SERVICES CORPORATION <br />This Agreement is made and entered into this 2-. day of M co/ 20 , by and <br />between San Marcos Electric Utility ("City") and LCRA Transmission Services Corporation <br />("LCRA TSC") each sometimes hereinafter referred to individually as "Party" or both referred to <br />collectively as "Parties". <br />WITNESSETH <br />WHEREAS, each Party is the owner and operator of transmission and/or distribution <br />facilities and is engaged in the business of transmitting electric energy to the general public <br />within the Electric Reliability Council of Texas; and <br />WHEREAS, the Parties desire to interconnect their respective transmission and/or <br />distribution systems in the respects, and under the terms and conditions set forth below. <br />NOW, THEREFORE, in consideration of the premises and of the mutual covenants and <br />conditions herein set forth, the Parties agree as follows: <br />ARTICLE I - EFFECTIVE DATE AND TERM <br />1.1 This Agreement and any subsequent addendum to this Agreement shall become <br />effective on the date of execution by both Parties. Unless otherwise mutually agreed, this Agreement <br />shall remain in effect initially for a period of thirty (30) years from the effective date, and shall <br />continue in effect thereafter for periods of five (5) years each unless canceled after such initial period <br />or any subsequent period either by mutual agreement or by either Party upon at least thirty-six (36) <br />months written notice to the other party. <br />ARTICLE II - OBJECTIVE AND SCOPE <br />2.1 It is the intent of the Parties, by this Agreement, to state the terms and conditions <br />under which the Parties' transmission and/or distribution systems will be interconnected and to <br />identify the facilities and equipment provided by each Party at the Points of Interconnection <br />between their systems. <br />2.2 This Agreement shall apply to the ownership, construction, operation, and <br />maintenance of those facilities which are specifically identified and described in the Facility <br />Schedules which are attached hereto and incorporated herein. <br />LCRA TSC - San Marcos Electric Utility Page 2 of 35