PNM Renews Support for Discussion of Alternative to Address Regional Haze at San Juan Generating Station

  PNM Renews Support for Discussion of Alternative to Address Regional Haze at
  San Juan Generating Station

Business Wire

ALBUQUERQUE, N.M. -- January 18, 2013

PNM Resources’ (NYSE: PNM) New Mexico utility,  PNM, today announced renewed
support for discussions that have resumed with the N.M. Environment Department
(“NMED”) and the U.S. Environmental Protection Agency (“EPA”) to consider an
alternative for San Juan Generating Station to comply with federal visibility
rules.

Following the Nov. 29 expiration of the EPA’s 45-day administrative stay
extension, PNM announced it would work to comply with the federal rule that
requires installation of selective catalytic reduction (“SCR”) technology on
all four units of SJGS.

Confidential discussions have since resumed. As a result, PNM has taken
additional steps to push costs related to SCR installation into later phases
of the project by temporarily suspending the work of its engineering,
procurement and construction contractor. In addition, PNM’s plan to file a
request with N.M. Public Regulation Commission for approval of the SCR project
has been put on hold.

There is no timeline established for the discussions to reach a definitive
agreement, although the September 2016 deadline for installation of SCRs
underscores the importance of moving forward quickly.

“We are prepared to install the federally mandated technology, but believe
renewed discussions hold potential for agreement on an alternative that could
position New Mexico for broader environmental benefits, while also reducing
the cost impact for PNM customers,” said Pat Collawn, PNM Resources Chairman,
President and CEO. “We are hopeful that the current discussions with NMED and
EPA ultimately result in an agreement that can move the state’s energy future
forward in a positive fashion.”

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque,
N.M., with 2011 consolidated operating revenues of $1.3 billion, excluding
First Choice Power. Through its regulated utilities, PNM and TNMP, PNM
Resources has approximately 2,530 megawatts of generation capacity and serves
electricity to more than 738,000 homes and businesses in New Mexico and Texas.
For more information, visit the company’s Web site at www.PNMResources.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:

Statements made in this news release that relate to PNM's expectations,
projections and estimates are made pursuant to the Private Securities
Litigation Reform Act of 1995. Readers are cautioned that all forward-looking
statements are based upon current expectations and estimates, and PNM assumes
no obligation to update this information.

Contact:

PNM Resources
Analysts
Jimmie Blotter, 505-241-2227
Media
Valerie Smith, 505-241-2892
 
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