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Dear CRSP Transmission Customer:

On July 17, 1998, the Federal Energy Regulatory Commission (FERC) approved the firm and non-firm transmission rates for service on the Colorado River Storage Project (CRSP) transmission system.

Rate Schedule SP-PTP5 for firm point-to-point transmission provides for a yearly recalculation of the rate. This recalculation is accomplished by updating (1) the rate denominator (reserved capacity) based upon current contracted reservations, and (2) the net annual transmission credits also based upon FY unaudited 1999 data. This update derives revised averages that are the basis for the 2000-2003 projections. Revision of the firm point-to-point transmission rate formula under Rate Schedule SP-PTP5 results in a rate of $2.18/kW-month, effective April 1, 2000, through March 31, 2001, which is the same rate currently in effect. Enclosed is a table that compares the average components of the current rate with the revised rate.

Rate Schedules SP-NW1 for network transmission service and SP-NFT4 for non-firm transmission service are based upon SP-PTP5. As stated in SP-NFT4, the non-firm point-to- point rate shall not be higher than the firm point-to-point rate. Therefore, this revised firm point- to-point rate results in a maximum non-firm transmission rate of 2.9 mills/kWh for the same period.

The firm point-to-point transmission rate is applicable to existing transmission contracts and future transmission service agreements. Please consider this letter as official notification of the effective transmission rates for all applicable transmission agreements.

If there are any questions regarding the recalculated rate schedules, please telephone me at (801) 524-6380.

Sincerely,

Carol A. Loftin

Rates Manager

Enclosure