New Mexico Environmental Improvement Board Unanimously Approves Revised Plan for San Juan Generating Station

  New Mexico Environmental Improvement Board Unanimously Approves Revised Plan
  for San Juan Generating Station

                State to Submit Plan to EPA for Final Approval

Business Wire

ALBUQUERQUE, N.M. -- September 5, 2013

PNM Resources’ (NYSE: PNM) New Mexico utility,  PNM, today praised a decision
by the New Mexico Environmental Improvement Board approving a state plan that
provides a new path forward for San Juan Generating Station to comply with
federal environmental rules.

Following a public hearing, the state board unanimously approved a proposal
from the N.M. Environment Department that would lead to the retirement of two
of San Juan’s four coal-fired units by the end of 2017, and the installation
of nitrogen-oxide reducing technology on the remaining two units in early
2016. The plan still requires approval from the U.S. Environmental Protection
Agency before it becomes final. That process is expected to take about a year.

PNM currently is required to comply with a costly federal plan that would
require installation of more expensive technology on all four units. While
there is a cost associated with implementing the state plan approved today, it
will cost customers less than the federal plan. In addition, the state plan is
more forward looking and reduces seven different power plant pollutants,
compared to the one reduction addressed by the federal plan.

“The state plan is better for New Mexico because it reduces the cost impact on
our customers and allows us to replace a significant amount of coal-fired
generation with cleaner fuels,” said Pat Vincent-Collawn, PNM chairman,
president and CEO. “The plan would reduce not only haze-forming emissions but
also carbon emissions, water usage and coal combustion byproducts, which puts
the plant ahead of new and tougher environmental regulations we know are
coming. We appreciate the leadership N.M. Gov. Susana Martinez provided on
this issue to allow us to reach today’s milestone.”

With the encouragement of Gov. Martinez, details of the plan approved today
were developed through negotiations earlier this year with the N.M.
Environment Department, EPA and PNM and comments from other stakeholders. The
terms of the plan focus on how San Juan would meet a federal visibility rule.
In connection with the implementation of the plan, PNM plans to build a
natural gas plant in San Juan County that will operate primarily during times
of peak demand. Detailed replacement power strategies will be finalized
separately from the haze plan and are expected to be filed with the N.M.
Public Regulation Commission in December and could include various sources,
including the possible inclusion of existing nuclear.

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 2,550 megawatts of generation capacity and serves
electricity to more than 735,000 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
Pahl Shipley, 505-241-2782
 
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