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AMENDED AND RESTATED INTERCONNECTION AGREEMENT <br />BETWEEN <br />CITY OF SAN MARCOS, TEXAS <br />(SAN MARCOS ELECTRIC UTILITY) <br />AND <br />LCRA TRANSMISSION SERVICES CORPORATION <br />This Amended and Restated Interconnection Agreement ("this Agreement") is made and <br />entered Into this 2�' day of 1� 2�, by and between City of San Marcos, Texas (San <br />Marcos Electric Utility or "SMEU" or "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, this Agreement is a restated and amended interconnection agreement from <br />that certain Interconnection Agreement executed as of May 26, 2009, as amended by that <br />certain Amendment No. 1 executed as of April 18, 2013, as amended by that certain <br />Amendment No. 2 executed as of September 26, 2014 ("the 2009 Interconnection <br />Agreement"); <br />WHEREAS, each Party is the owner and operator of transmission and/or distribution <br />facilities ("TDSP") within the Electric Reliability Council of Texas; <br />WHEREAS, the City and the Lower Colorado River Authority also had other previous <br />agreements that addressed TDSP functions including the Substation Purchase and <br />Operating Agreement entered into on June 14, 1994 ("1994 Agreement"), the previous <br />full requirements wholesale power agreement which terminated in June 2016, and the <br />Market Readiness Issues #2 letter agreement executed by the City on January 24, 2001, <br />collectively ("Previous Agreements"); <br />WHEREAS, LCRA Transmission Services Corporation is the assignee of the Lower <br />Colorado River Authority for transmission, transformation, and metering related matters; <br />WHEREAS, the Parties recognize that the 2009 Interconnection Agreement did not fully <br />reflect the TDSP functions from the Previous Agreements that they now desire in an <br />interconnection agreement; <br />WHEREAS, the City will sell the 138 1<-V operating bus at the Ranch Road 12 Substation <br />to LCRA TSC through a bill of sale executed contemporaneously with this Agreement, <br />WHEREAS, the City will be installing a power transformer (PWT) at Hilltop Substation <br />and will sell the 138 kV operating bus to LCRA TSC through a bill of sale executed <br />contemporaneously with this Agreement, and; <br />LCRA TSC — San Marcos Electric Utility Page 2 of 39 <br />