This excerpt taken from the EE 10-Q filed Aug 7, 2007.
A. El Paso and the Prior Trustee were parties to that certain Credit Agreement dated as of February 12, 1996 (the Credit Agreement) among El Paso and the Prior Trustee as borrowers, Chase Manhattan Bank (successor by merger to Chemical Bank) as issuing bank, as administrative agent and as collateral agent for the financial institutions party thereto as lenders (such financial institutions, the Lenders), and the Lenders. Pursuant to the Credit Agreement, the Lenders agreed to extend credit in the form of loans and letters of credit to the Prior Trustee, in an aggregate amount not to exceed $60,000,000, (i) to finance the purchase of Nuclear Fuel by the Prior Trustee, (ii) to provide backup liquidity for commercial paper issued pursuant to a commercial paper program to be established by the Prior Trustee, and (iii) to pay interest and other amounts payable under the Credit Agreement by the Prior Trustee (the foregoing items (i), (ii) and (iii), the Trust Credit Purposes). Consequently, the Purchase Contract provided in Section 2(g) thereof that El Paso will not permit the total Net Investment of the Prior Trustee, at any one time, in all Nuclear Fuel to exceed $60,000,000.
B. Effective as of February 8, 1999, the Credit Agreement was amended and restated in its entirety, and the lenders thereunder agreed to extend credit in the form of loans and letters of credit to the Prior Trustee for Trust Credit Purposes in an aggregate amount not to exceed $70,000,000. Consequently, El Paso and the Prior Trustee amended Section 2(g) of the Purchase Contract (the First Amendment) to provide that El Paso would not cause or permit the total Net Investment of the Prior Trustee, at any one time, in all Nuclear Fuel to exceed $70,000,000.
C. The Credit Agreement was amended and restated again in its entirety on January 28, 2002, December 17, 2004 and April 11, 2006. The
amended and restated credit agreement dated as of April 11, 2006 (the 2006 Credit Agreement) provided that the $70,000,000 available to the Prior Trustee for Trust Credit Purposes could be increased from time to time pursuant to Section 2.21 of the 2006 Credit Agreement. Subsequent to the execution of the 2006 Credit Agreement but prior to the date hereof, the Trustee succeeded the Prior Trustee as trustee under the Rio Grande Resources Trust II.
D. On May 30, 2007, El Paso delivered a written notice pursuant to Section 2.21 of the 2006 Credit Agreement to JPMorgan Chase Bank, N.A. (in its capacity as the administrative agent for the lenders under the 2006 Credit Agreement), requesting that the amount available to the Trustee in the form of loans and letters of credit for Trust Credit Purposes be increased from a total amount not to exceed $70,000,000 to a total amount not to exceed $120,000,000, such increase to be effective as of July 16, 2007.
E. As a result of the foregoing, El Paso and the Trustee desire to amend the Purchase Contract in the manner set forth below.
F. Capitalized terms used but not defined herein shall have the meanings assigned to them in the Purchase Contract.
This excerpt taken from the EE 10-Q filed Aug 9, 2005.
WHEREAS, on July 27, 1995, the Company, the City and others entered into a Stipulation and Settlement Agreement (the 1995 Stipulation) in Docket No. 12700, Application of El Paso Electric Company for Authority to Change Rates and for Approval of Reacquisition of Palo Verde Leased Assets;
WHEREAS, on August 30, 1995, the Public Utility Commission of Texas (the Commission) issued an Agreed Order approving the terms of the 1995 Stipulation;
WHEREAS, the 1995 Rate Freeze:
WHEREAS, on March 22, 1999, the Company, the City and others entered into a Stipulation Resolving All Issues Related to Fuel Reconciliation and Certain Voluntary Base Rate Reductions and Refunds (1999 Stipulation) in Docket No. 20450, Application of El Paso Electric Company to Reconcile Fuel and Fuel-related Revenues and Implement Certain Voluntary Base Rate Reductions and Refunds, which led to the previously noted Fifteen Million Four Hundred Thousand Dollars ($15,400,000) base rate reduction;
WHEREAS, the Commission approved the 1999 Stipulation on June 8, 1999;
WHEREAS, on June 22, 2004, the El Paso City Council approved a resolution supporting a delay of retail competition for the Company;
WHEREAS, on July 27, 2004, the El Paso City Council decided not to exercise the option to purchase contained in Section 13 of the Companys Franchise Ordinance No. 012539;
WHEREAS, by order dated October 18, 2004 in Project No. 28971, PUC Evaluation of the Readiness of the El Paso Area for Retail Competition in Electricity, the Commission determined that the power region in which the Company is located is unable at this time to offer fair competition and reliable service to all its Texas retail customer classes;
WHEREAS, the Signatories recognize the desirability of continuing the mutual benefits of the 1995 and 1999 Stipulations, including:
WHEREAS, it is in the public interest to provide for cost-based rates which permit the Company a reasonable opportunity to earn a reasonable return on the Companys invested capital used and useful in providing service to the public in excess of the Companys reasonable and necessary operating expenses; and
WHEREAS, resolution on a stipulated basis of the matters set forth herein would conserve resources, avoid the uncertainties inherent in future litigation, and reduce rate case expenses now and in the future.