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Innovative New LCRA Plants Support Customer Needs Several new power plants grew out of a series of community listening and response sessions that were held in Cap Rock in late 2005 and 2006 ipersonnel and community citizens. These sessions identified the community educational interests as well as a solution to the biggest barrier to meeting those needs – physical facilities for Cap Rock. The former National Guard Armory was identified as the ideal solution to that problem if it could be attained and renovated for educational use. Thanks to Cap Rock that vision has become a reality. We are delighted with the reception and the support that we have received. the people of beneficial. Cap Rock Energy to Receive Refund A fuel-charge adjustment clause in the FERC rate schedules. While other aspects of this case are still being considered, FERC has determined that Cap Rock was indeed overcharged and has ordered SPS to refund $1,038,000 to Cap Rock Energy which will be passed straight through to customers by a reduction in the Power Cost Recovery Factor (PCRF). This is a one time credit, and while it will not be separately noted, it will reduce the PCRF. This refund is occurring because Cap Rock Energy’s staff is continually monitoring fuel prices and generation rates in order to ensure Cap Rock Energy customers pay only the fair price for their electricity. The specifics of this partnership grew out of a series of community listening and response sessions that were held in Gonzales in late 2005 and 2006 involving Victoria College personnel and community citizens. These sessions identified the community educational interests as well as a solution to the biggest barrier to meeting those needs – physical facilities for the college in Gonzales. The former National Guard Armory was identified as the ideal solution to that problem if it could be attained and renovated for educational use. Thanks to the City of Gonzales and GEDC, that vision has become a reality. We are delighted with the reception and the support that we have received. T his refund is occurring because Cap Rock Energy’s staff is continually monitoring fuel prices and generation rates in order to ensure Cap Rock Energy customers pay only the fair price for their electricity. Cap Rock Listens Rest assured that everyone at Cap Rock Energy is constantly working to ensure you pay the fairest price possible for your electricity, and that we provide friendly, personal customer service to each of our customers.sessions identified the the Cap Rock. While there are things each of us can do to do. Expected to be in operation for the summer of 2009, the “peaker” plant will provide a less expensive, quick-start capability to help meet the growing demand for energy, especially during times of peak energy use. CAP ROCK ENERGY S PRING 2010 N EWS FROM C AP R OCK E NERGY

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Innovative New LCRA Plants Support Customer Needs

SeveralnewpowerplantsgrewoutofaseriesofcommunitylisteningandresponsesessionsthatwereheldinCapRockinlate2005and2006ipersonnelandcommunitycitizens.Thesesessionsidentifiedthecommunityeducationalinterestsaswellasasolutiontothebiggestbarriertomeetingthoseneeds–physicalfacilitiesforCapRock.TheformerNationalGuardArmorywasidentifiedastheidealsolutiontothatproblemifitcouldbeattainedandrenovatedforeducationaluse.ThankstoCapRockthatvisionhasbecomeareality. Wearedelightedwiththereceptionandthesupportthatwehavereceived.thepeopleofbeneficial.

Cap Rock Energy to Receive RefundA fuel-chargeadjustmentclauseintheFERCrateschedules.Whileother

aspectsofthiscasearestillbeingconsidered,FERChasdeterminedthatCapRockwasindeedoverchargedandhasorderedSPStorefund$1,038,000toCapRockEnergywhichwillbepassedstraightthroughtocustomersbyareductioninthePowerCostRecoveryFactor(PCRF).Thisisaonetimecredit,andwhileitwillnotbeseparatelynoted,itwillreducethePCRF.ThisrefundisoccurringbecauseCapRockEnergy’sstaffiscontinuallymonitoringfuelpricesandgenerationratesinordertoensureCapRockEnergycustomerspayonlythefairpricefortheirelectricity. ThespecificsofthispartnershipgrewoutofaseriesofcommunitylisteningandresponsesessionsthatwereheldinGonzalesinlate2005and2006involvingVictoriaCollegepersonnelandcommunitycitizens.Thesesessionsidentifiedthecommunityeducationalinterestsaswellasasolutiontothebiggestbarriertomeetingthoseneeds–physicalfacilitiesforthecollegeinGonzales.TheformerNationalGuardArmorywasidentifiedastheidealsolutiontothatproblemifitcouldbeattainedandrenovatedforeducationaluse.ThankstotheCityofGonzalesandGEDC,thatvisionhasbecomeareality. Wearedelightedwiththereceptionandthesupportthatwehavereceived.

This refund is occurring because Cap Rock Energy’s staff is continually monitoring fuel prices and generation rates in order to ensure Cap Rock Energy customers pay only

the fair price for their electricity.

Cap Rock Listens RestassuredthateveryoneatCapRockEnergyisconstantlyworkingtoensureyoupaythefairestpricepossibleforyourelectricity,andthatweprovidefriendly,personalcustomerservicetoeachofourcustomers.sessionsidentifiedthetheCapRock.Whiletherearethingseachofuscandotodo.

Expected to be in operation for the summer of 2009, the “peaker” plant will provide a less expensive, quick-start capability to help meet the growing demand for energy, especially during times of peak energy use.

CAP ROCKENERGY

Spring 2010 newS from Cap roCk energy