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3.10 Point(s) of Interconnection shall mean the points where the electrical systems of <br />the Parties are connected or may, by the closure of normally open switches, be connected. <br />3.11 PUCT shall mean the Public Utility Commission of Texas or its successor in <br />function. <br />ARTICLE IV — ESTABLISHMENT AND TERMINATION <br />OF POINTS OF INTERCONNECTION <br />4.1 The Parties agree to comply with NERC Reliability Standards as they relate to the <br />interconnection of their facilities at the locations identified and described in the Facility <br />Schedules which are attached hereto and incorporated herein. <br />4.2 The Parties agree to interconnect their facilities at the locations, and in accordance <br />with the terms and conditions, specified in the attached Facility Schedule(s). All Points of <br />Interconnection shall be specified in Exhibit "A" and the Facility Schedule(s) attached hereto <br />and made a part hereof. The Facility Schedule(s) shall specify the responsibilities of the Parties <br />with respect to ownership, control, operation, and maintenance of the interconnection facilities. <br />4.3 Unless otherwise provided in a Facility Schedule, each Party shall, at each Point <br />of Interconnection, at its own risk and expense, design, install, or cause the design and <br />installation of the transmission or distribution facilities (including all apparatus and necessary <br />protective devices) on its side of the Point of Interconnection, so as to reasonably minimize the <br />likelihood of voltage and frequency abnormalities, originating in the system of one Party, from <br />affecting or impairing the system of the other Party, or other systems to which the system of such <br />Party is interconnected. The Parties agree that all Points of Interconnection will be established in <br />conformance with operating guidelines of ERCOT and the ERCOT Protocols, as the same may <br />be amended hereafter. The Parties agree to cause their systems to be constructed in accordance <br />with specifications at least equal to those provided by the National Electrical Safety Code, <br />approved by the American National Standards Institute, in effect at the time of construction. <br />Except as otherwise provided in the Facility Schedules, each Party will be responsible for the <br />equipment and facilities it owns on its side of the Point of Interconnection. <br />4.4 From time to time, a Point of Interconnection may be added, changed, modified, <br />or deleted from this Agreement as mutually agreed by the Parties and/or as ordered by a <br />regulatory authority having jurisdiction thereof. Any such change, addition, or deletion shall be <br />recorded in Exhibit A and a Facility Schedule in such a way that the numbering of the other <br />Facility Schedules is not changed. <br />4.5 Subject to regulatory approval, if required, unless mutually agreed, neither party <br />shall have the right to disconnect from the other Party at any Point of Interconnection specified <br />on Exhibit A and a Facility Schedule, originally attached to this Agreement or added subsequent <br />to the execution of this Agreement, except for reason of a material violation of the terms of this <br />Agreement, for which opportunity to correct such violation was given under Paragraph 15.1 of <br />this Agreement and such violation was not corrected in accordance with said Paragraph 15.1. <br />LCRA TSC — San Marcos Electric Utility Page 5 of 39 <br />