REGULAR MONTHLY BOARD MEETING AGENDA

March 18, 2016 1. CALL TO ORDER: 9:00 am 2. PLEDGE OF ALLEGIANCE REGULAR MONTHLY BOARD MEETING AGENDA 3. ROLL CALL/DETERMINATION OF QUORUM 4. APPROVAL OF AGENDA 5. RECOGNITION OF GUESTS 6. BUSINESS WITH MEMBER GUESTS (5 minutes per Guest) a. Information requests by members/outside parties 7. ACTION ITEMS a. Approval of Minutes (minutes are uploaded to the "Extras" folder within Board Book online) b. Approval of February Membership List 3 8. GENERAL MANAGER'S UPDATE - Mr. Joseph Sanchez a. Business Services & Finance - Mr. Ricky Bejarano 1) February 2016 Financials 4 2) Finance Committee Report - Mr. Johnny Jaramillo b. IT RFPs c. SATView Update 9. BOARD REPORTS a. Tri-State Report - Mr. Lucas Cordova 1) Update: Bylaw change proposals b. Statewide (NMRECA) Report - Mr. Charlie Trujillo 10. NEW BUSINESS a. Appointment of NMRECA Directors and Credential of Voting Representative b. BOT Resolution 2016-3; Approval of Jicarilla - JMEC Transaction 11. EXECUTIVE SESSION - Mr. John Tapia 12. ADJOURN 2

MINUTES REQUIRED APPROVAL DURING MARCH S BOARD MEETING (Minutes are uploaded to the EXTRAS tab in BoardBook.org. Executive Session minutes are handed out to each BOT for review) 01/21/16 Special Board Meeting Executive Session 01/22/16 Executive Board Meeting Executive Session 02/04/16 Executive/Finance Committee Meeting 02/08/16 Special Finance Committee Meeting 02/09/16 Policy Committee Meeting 02/19/16 Special Board Meeting 02/23/16 IT Ad Hoc Committee Meeting 02/23/16 Tree Trimming Ad Hoc Committee Meeting 02/24/16 Executive Committee Meeting 02/25/16 Finance Committee Meeting EXECUTIVE SESSION MINUTES REQUIRING REVIEW TO APPROVE AT APRIL S BOARD MEETING n/a 2

NEW MEMBERSHIPS DISTRICTS TOTALS FEBRUARY 2016 DISTRICT 1 9 DISTRICT 2 14 DISTRICT 3 7 DISTRICT 4 43 DISTRICT 5 40 DISTRICT 6 37 TOTAL NEW MEMBERSHIPS 150 REFUNDED MEMBERSHIPS 125 TOTAL MEMBERSHIPS 21229 NET NEW MEMBERSHIPS % OF GROWTH 0.00% MONTHLY TOTALS YTD TOTALS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC NET NEW MEMBERSHIPS -23 25 2 TOTAL NEW SERVICES 16 7 23 TOTAL CONNECTS 181 219 400 TOTAL DISCONNECTS 168 193 361 TOTAL DISCONNECTS FOR NON-PAY 45 51 96 NET NEW CUSTOMERS MONTHLY TOTALS YTD TOTALS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC NET NEW CUSTOMERS -16-18 -34 TOTAL ACTIVE CUSTOMERS 30894 % OF GROWTH 0.00% 0.00% 3

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MONTHLY ENERGY REVENUES 2016 ACTUAL VARIANCE 2016 2016 TO BUDGET AS% CLASS ACTUAL BUDGET VARIANCE OF BUDGET 2015 ACTUAL RESIDENTIAL 2,374,017 2,470,027 (96,010) -3.89% 2,184,396 SMALL COMMERCIAL 1,438,833 1,555,529 (116,696) -7.50% 1,394,412 LARGE COMMERCIAL 278,350 688,013 (409,663) -59.54% 381,818 LIGHTING 24,545 25,685 (1,140) -4.44% 23,315 PUBLIC AUTHORITIES 60,243 68,533 (8,289) -12.10% 57,541 REVENUE FROM SALE OF ELECTRIC ENERGY 4,175,989 4,807,786 (631,798) -13.14% 4,041,482 SERVICE CHARGE FEES 9,300 10,000 (700) -7.00% 9,015 FOLLOW-UP NOTICES 23,445 38,000 (14,555) -38.30% 34,470 WHEELING 9,723 6,500 3,223 49.58% 8,988 5 APPLICATION FEES - 150 (150) -100.00% JOINT POLE USAGE (starts in March) 13,601 20,000 (6,399) -31.99% RETURN CHECK FEE 982 650 332 51.06% 690 REVENUE FROM OTHER ELECTRIC SERVICES 57,051 75,300 (18,249) -24.23% 53,163 OPERATING REVENUE - ACTUAL TO BUDGET 4,233,040 4,883,086 (650,047) -13.31% 4,094,645 RATE RIDER - SYSTEM Total 59,259 69,210 (9,951) RATE RIDER - PUEBLO (OHKAY OWINGEH) 27,890 42,799 (14,909) RATE RIDER - PUEBLO (POJOAQUE) 953 1,088 (135) RATE RIDER - PUEBLO (SANTA CLARA) 10,110 10,735 (625) RATE RIDER - PUEBLO (NAMBE) 7,003 6,560 443 RATE RIDER - PUEBLO (SAN 1) 7,678 7,803 (125) RATE RIDER REVENUE 112,893 138,195 (25,302) 96,711 18,760 10,894 11087.65 4,850 3,901 146,204 14066.69 18760.03 32704.65 10894.49 23913.07 11087.65 8794.58 4849.53 17232 3901.27 joperating REVENUE PLUS RATE RIDER REVENUE 4,345,933 5,021,281 (675,348) -13.45% 4,240,849

6,000,000 ELECTRIC REVENUE 5,203,629 5,000,000 4,668,522 '> 4,679,794 4,000,000 4,041,482 3,808,048 3,929,102 3,681,598 3,389,899 3,781,316 3,550,047 3,468,885 3,000,000 6 2016 Budget 2016 Actuals 2015 Actuals 2,000,000 1,000,000 Feb '16 - $4,175,989 Feb '15 - $4,041,482 YTD 2016 - $8,854,272 YTD 2015 - $8,486,470 $367,802 increase 2016 v 2015 0

OTHER REVENUE 120,000 114,053 100,000 95,335 76,245 80,000 75,300 75,300 75,300 75,300» 75,300 TSt^OO 75 73,795 30Q 7D,300 + 7 5 ' 3 0 0» 70,510 73,154 75^3C 82,378 75,300 75,300 7 60,000 65,25 57,051 50,516 53,163 54,180 53,234 40,000 2016 YTD-$122,307 2015 YTD-$103,679 $18,628 increase 2016 vs. 2015 20,000 2016 Budget 2016 Actual 2015 Actuals Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

$500,000 KINDER MORGAN 2015 and 2016 REVENUE $450,000 $400,000 $451,196 A $350,000 8 $300,000 $250,000 $200,000 \ / \ $266,598^^-*^ / \69i91 $287,8^8 / \ $25^529^^4^^ / 4 \ $226,227 / \ > ^ ^$233^ 4 2015 At $185,785 J $2^58 / l< 2016 Actual $150,000 $100,000 $50,000 W07F; 2016 Feb-$226,227 TilRFrh <1fi7fi/n $43,448 decrease in revenue in 2016 vs. 2015 $0

6 ; 000,000 ENERGY ACCOUNTS RECEIVABLE-2016 5,000,000 4,000,000 9 3,000,000 4-2016 Actual 2015 Actual 2014 Actual 2,000,000 +- 1,000,000

ACCOUNTS RECEIVABLE AGEINS TOTAL = $4,575,643 FUTURES CURRENT 10 30+ DAYS 60+ DAYS i i 90+ DAYS

OTHER ACCOUNTS RECEIVABLE CURRENT 259,193 PAST DUE 260,384 IN DISPUTE/NEGOTIATIONS 1,810 521,387 1,810 11 CURRENT PAST DUE IN DISPUTE/NEGOTIATIONS

25,000 BAD DEBT WRITE-OFF 21,143 20,000 15,000 14,704 12 10,000 10,000 10,000 7,664 6,31 5,000 5,247 4,942 2016 Budget 2016 Actual YTD Total -$11,254 >2015 Actual JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

BAD DEBT AS A % OF REVENUE 0.70% T 13 0.00% -I JAN

3,500,000 COST OF POWER 2016 Budget 2016 Actual 2015 Actual 2014 Actual 3,000,000 2,500,000 m 1X1 oo _rs_ (N rs o <-( rn I 1 s 5 u t r- H *a ] en u: l 1 I r~ 2,000,000 4-14 1,500,000 4-1,000,000 500,000 o ID Jan

FEBRUARY 2016 RATIOS ACTUAL BUDGET VARIANCE TIER on EII 3.25 2.14 1.11 3.11 2.00 1.10 OTIER CALCULATION FORM 7 LINE 16 A Interest on Long Term Debt FORM 7 LINE 21 B Operating Margin A + B = C 197,847 417,227 615,073 C/A 3.11 15 YEAR-TO-DATE RATIOS ACTUAL BUDGET VARIANCE REQUIREMENT TIER OTIER RUS ANNUAL MINIMUM 2.34 2.27 0.07 REQUIREMENT IS 1.25 RUS ANNUAL MINIMUM 2.19 2.13 0.06 REQUIREMENT IS 1.10 Y-T-D OTIER CALCULATION FORM 7 LINE 16 A Interest on Long Term Debt FORM 7 LINE 29 B Margins A+B = C 396,395 471,545 867,939 C/A 2.19

Gash Flow Analysis General Fund February 2016 Beginning Cash Balance 6,378,451.47 Customer Cash Collected 3,397,248.06 Customer Credit Card Payments 897,966.72 Customer Echex Payments 181,471.45 Customer ACH Paymemt 577,920.00 Transfer from Savings Transfer from JVCU Transfer from Other Accounts CFC Patronage Capital Western United Patronage Capital Misc Cash Received 83,722.78 RUS Loan Advance - Total Beginning Balance plus Deposits 11,516,780.48 Accounts Payable Disbursements (714,567.78) Transfer to Payroll Acct. (282,295.04) Payroll Taxes Transfer (116,899.08) Gross Receipts Taxes (278,680.42) Tri-State Power Bill Transfer (2,840,251.42) Company Credit Card Payment (54,101.68) Navajo Taxes RUS Quarterly Loan Payment CFC Quarterly Loan Payment Qtr Unemployment Insurance Co-Bank Semi-Annual Loan Payment 401K Contributions/Employee Loan Payment (76,560.00) Returned Checks and Credit Card Pmt. (11,664.95) M&D Refund checks Transfer to Short Term Investments Total Disbursements (4,375,020.37) Balance February 2016 7,141,760.11 All other Accounts 13,514,206.10 TOTAL CASH January 2016 20,655,966.21 Co-Bank Money Market Fund 42,977.55 Community Bank Depository JVCU Depository 942,557.28 Wells Fargo Depository CUBA 2,204,801.58 WF Payroll Account WF Construction Account 10,361,346.99 WF Medical Reimbursement Account 1,316.25 Petty Cash Fund 4,184.00 13,514,206.10 16

JEMEZ MOUNTAINS ELECTRIC COOPERATIVE.INC. KEY RATIO TREND ANALYSIS Feb-16 Feb-15 CONSUMER STATS Number of Consumers 31,112 31,043 Avg. KWH Useage - Residential 684 737 Avg. KWH Useage - Small Commercial 3,304 3,527 Avg. KWH Useage - Large Commercial 757,050 1,062,600 Avg. KWH Useage - Public Authority 1,970 2,008 Avg. KWH Useage - Lighting 1,859 1,756 Connects - Espanola 148 189 Connects - Jemez Springs 8 14 Connects - Cuba 25 14 Total Connects 181 217 Disconnects - Espanola 146 181 Disconnects - Jemez Springs 15 13 Disconnects - Cuba 7 7 Total Disconnects 168 201 Consumers Per Employee 288 290 REVENUE STATS Revenue/KWH Sold $ 0.13 $ 0.13 Revenue Generated per Mile $ 1,210.61 $ 1,132.94 Purchased Power as a % Revenue 57% 57% Operating Expense as a % of Revenue 23% 20% Margins as a % of Revenue 8% 10% PURCHASED POWER STATS KWH Purchased 33,744,557 39,198,532 KWH Sold 33,856,536 37,240,667 Own Use 103,719 119,541 Line Loss (215,698) 1,838,324 Percent Loss -1% 5% Cost/KWH Purchased $ 0.08 $ 0.07 Avg. KWH Cost - Residential $ 0.14 $ 0.13 Avg. KWH Cost - Small Commercial $ 0.13 $ 0.13 Avg. KWH Cost - Large Commercial $ 0.10 $ 0.09 Avg. KWH Cost - Lighting $ 0.18 $ 0.17 Avg. KWH Cost - Public Authority $ 0.14 $ 0.14 PLANT STATS Total Miles of Line 4,120 4,120 Density (# of customers / miles of line) 7.55 7.53 Plant Investment per Mile $ 28,007.40 $ 27,535.04 Depreciation as a % of Plant 43% 41% Plant Per Consumer $ 3,708.87 $ 3,654.68 Inventory as a % of Plant 1.48% 1.50% 0 & M Expense as a % of Plant 2.93% 3.19% % Idle Services (Meters Idle/Total Meters) 0.79% 0.30% DEBT STATS RUS Loans as % of Total Loans 76% 69% Co-Bank/CFC Loans as % of Total Loans 24% 31% FINANCIAL STATS Number of Employees 108 107 TIER (Y-T-D) 2.34 3.48 OTIER (Y-T-D) 2.19 3.35 Net Worth 48% 44% Consumer Expense Per Consumer $ 5.60 $ 4.61 Admin. & General Expense Per Consumer $ 6.35 $ 12.66 17

According to the Paperwork Reduction Act of 1995. an agency may not conduct or sponsor, and a person is not required to respond to. a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0572-0032. The time required to complete this information collection is estimated to average 15 bouts petresponse, including the lime lor reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completin i and reviewing [he collection ol tntormanon. UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. REPORT BORROWER DES1GN ATION NM0028 PERIOD ENDED February, 2016 BORROWER NAME, This information is analyzed and used to determine the submitter's financial situation and feasibility for loans and gtiarantees. You are required by contract and applicable regulations to provide the information. The information provided is subject to the Freedom of Information Act (5 U.S.C. 552) CERTIFICATION We recognize that statements contained herein concern a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious or frandnlcnt statement may render the maker subject to prosecution undertitle 18, United States Code Section 1001. We hereby certify that the entries in this report are in accordance with the accounts and other records of the system and reflect the status of the system to the best of our knowledge and belief. ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII. RUS, W AS IN FORCE DURING T HE REPORTING PERIOD AND RENEW ALS HAVE BEEN OBTAINED FOR ALL POLICIES DURING THE PERIOD COVERED BY THIS REPORT PURSUANT TO PART 1718 OF 7 CFR CHAPTER XVII {check one oj the following) 1X1 All of the obligations under the RUS loan documents " have been fulfilled in all material respects. D 0 i ^ There has been a default ill the fulfillment of the obligations under the RUS loan documents. Said default(s) is/a re i i specifically described in Part D of this report. DATE' PART A. STATEMENT OF OPERATIONS YEAR-TO-DATE ITEM LAST YEAH THIS YEAR BUDGET THIS MONTH w d>) (O m 1. Operating Revenue and Patronage Capital 8,890,402 9,219,468 10,300,208 4,345,933 2, Power Production Expense 3. Cost of Purchased Power 5,094,988 5,422,013 6,385,838 2,571,916 4. Transmission Expense 8, 687 5. Regional Market Expense 6. Distribution Expense - Operation 453,316 447,190 423,992 178,861 7. Distribution Expense - Maintenance 276,141 446,700 492,603 256,313 8. Customer Accounts Expense 351,207 372,096 396,394 174,116 9. Customer Service and Informational Expense 21,261 6, 644 19,358 4, 280 10. Sales Expense 1 1. Administrative and General Expense 922,309 962,357 999,899 197,645 12. Total Operation <& Maintenance Expense (2 thru 11) 7,119,222 7,657,000 8,726,771 3, 383,131 13. Depreciation and Amortization Expense 556,854 561,027 480,939 280,586 14. Tax Expense - Property & Gross Receipts 122,961 133, 947 133,100 66,973 15. Tax Expense - Other 13 9 16. Interest on Long-Term Debt 418,091 396,395 449,462 197,847 17. Interest Charged to Construction - Credit 18. Interest Expense - Other 504 661 300 303 19. Other Deductions 2, 309 (1,106) (134) 20. Total Cost of Electric Serv ice (12 thru 19) 8,220,080 8,747,924 9,790,572 3,928,706 21. Patronage Capital & Operating Margins (/ minus 20) 670,322 471,544 509,636 417,227 22. Non Operating Margins - Interest 58,513 61,323 60,000 29,016 23. Allowance for Funds Used During Construction 24. Income (Loss) from Equity Investments 25. Non Operating Margins - Other (4,008) (2, 580) 1, 000 (1,724) 26. Generation and Transmission Capital Credits 27, Other Capital Credits and Patronage Dividends 28. Extraordinary Items 29. Patronage Capital or Margins (21 thru 28) 724,827 530,287 570,636 444,519 RUS Financial and Operating Report Electric Distribution Revision Date 2014 18

UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANC IAL AND OPERATING REPORT INSTRUCTIONS - See help in the online application. ITEM BORROWER DESIGNATION ELECTRIC DISTRIBUTION PERIOD ENDED LAST YEAR (n) NM0028 February, 2 016 PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT YEAR-TO-DATE THIS YEAR th) ITEM LAST YEAR m YEAR-TO-DATE T HIS YEAR w 1 New Services Connected 50 31 5. Miles Transmission 185.17 185.17 2 Services Retired 5 5 6. Miles Distribution - Overhead 3,362.33 3,363.23 3. Total Services in Place 31,059 34,347 7. Miles Distribution - Underground 572.52 572.61 4. Idle Services (Exclude Seasonals) 124 247 8. Total Miles Energized (5 + 6 + 7) PART C. BALANCE SHEET ASSETS AND OT HER DEBITS LIABILITIES AND OTHER CREDITS 4,120.02 4,121.01 1 Total Utility Plant in Service 115,390,469 30. Memberships 109,705 2, Construction Work in Progress 3,704,243 31. Patronage Capital 52,045,867 3. Total Utility Plant (1+2) 119, 094,712 32. Operating Margins - Prior Years 0 4. Aceum. Provision for Depreciation and Amort, 50,123,572 33. Operating Margins - Current Year 2,002,104 5. Net Utility Plant (3-4) 68,971,140 34. Non-Operating Margins (9,454) 6. Non-Utility Property (Net) 183,424 35. Other Margins and Equities 1,570,798 7. Investments in Subsidiary Companies 0 36. T otal Margins & Equities (30 thru 35) 55,719,020 8. Invest, in Assoc. Org. - Patronage Capital 16,931,787 37. Long-Term Debl - Rl IS (Net) 0 9. Invest, in Assoc. Org, - Other - General Funds 0 38. Long-Term Debt - FFB - RUS Guaranteed 49,624,008 1G. Invest, in Assoc. Org. - Other - Nongencral Funds 0 39. Long-Term Debt - Other - RUS Guaranteed 0 11. Investments in Economic Development Projects 0 40. Long-Term Debt Other (Net) 13,979,087 12. Other Investments 0 41. Long-Term Debt - RUS - Econ. Devel. (Net) 0 13, Special Funds 0 42. Payments - Unapplied 4,265,516 ^ Total Other Property & Investments (6 thru 13) 17,115,211 Total Long-Term Debt (37 thru 41-42) 59,337,579 15. Cash - General Funds 10,294,619 44. Obligations Under Capital Leases - Noncurrent 0 16, Cash - Construction Funds - Trustee 10,361,347,j Accumulated Operating Provisions and Asset Retirement Obligations 17 Special Deposits 0 46. Total Other Noncurrent Liabilities (44 + 45) 0 18. Temporary Investments 43,193 47. Notes Payable 0 19. Notes Receivable (Net) 1, 990 48. Accounts Payable 2,815,038 20. Accounts Receivable - Sales of Energy (Net) 4,249,613 21. Accounts Receivable - Other (Net) 535,529 49. Consumers Deposits 215,872 22. Renewable Energy Credits 0 50. Current Maturities Long-Term Debt 2,572,736 23. Materials and Supplies - Electric & Other 1,707,802 _ Current Maturities Long-Term Debl - Economic Development 24. Prepayments 2,219,000 52. Current Maturities Capital Leases 0 25. Other Current and Accrued Assets 3,041,829 53. Other Current and Accrued Liabilities 2,338,324 Total Current and Accrued Assets " (15 thru 25) 32,454,922 Total Current & Accrued Liabilities (47 thru 53) 7,941,970 27. Regulatory Assets 5,836,950 55. Regulatory Liabilities 0 28. Other Deferred Debits 12,474 56. Other Deferred Credits 1,392,128 Total Assets and Other Debits (5+14+26 thru 2S) 124,390,697 11 T otal Liabilities and Other Credits ' (36 + 43 +46 + 54 thru 56) 124,390,697 0 0 RUS Financial and Operating Report Electric Distribution Revision Date 2014 19