PNM Files for New Mexico PRC Approvals to Move Forward with Changes at San Juan Generating Station

  PNM Files for New Mexico PRC Approvals to Move Forward with Changes at San
  Juan Generating Station

Business Wire

ALBUQUERQUE, N.M. -- December 20, 2013

PNM Resources’ (NYSE: PNM) New Mexico utility,  PNM, today submitted a filing
to the New Mexico Public Regulation Commission (NMPRC) for approvals needed to
make important changes in the way PNM provides power to its New Mexico
customers.

The filing is the company’s next step in moving forward with the Revised State
Implementation Plan (Revised SIP), the result of an agreement among the New
Mexico Environment Department, the U.S. Environmental Protection Agency and
PNM. Actions requested in the filing are necessary for the San Juan Generating
Station (SJGS) to comply with federal visibility regulations under the Clean
Air Act.

“The Revised SIP is the best way forward because it minimizes the cost impact
to customers, creates broad and significant environmental benefits, and
reduces exposure to the anticipated  costs of complying with future federal
regulations,” said Pat Vincent-Collawn, PNM Resources’ chairman, president and
CEO. “In addition, PNM is able to further diversify its fuel portfolio and
integrate cleaner resources, including more natural gas and solar.”

The Revised SIP is expected to save customers more than $780 million over 20
years, compared to the original federal implementation plan.

The PNM filing requests:

  *Permission to retire Units 2 and 3 at SJGS and recover approximately $205
    million in undepreciated costs over 20 years;
  *A certificate of convenience and necessity (CCN) to include PNM’s
    ownership of 134 MW of Palo Verde Nuclear Generating Station Unit 3 to
    serve New Mexico retail customers at a proposed value of $2,500 per kW;
  *An order allowing cost recovery for the installation of SNCR equipment on
    SJGS Units 1 and 4, not to exceed a total cost of $82 million; and
  *A CCN for an exchange of capacity out of SJGS Unit 3 and into SJGS Unit 4,
    resulting in ownership of an additional 78 MW in Unit 4 for PNM. The
    expected net impact of this transaction and the retirement of Units 2 and
    3 will be a reduction of 340 MW in PNM’s ownership of SJGS.

In the filing, PNM identifies two additional sources of power to replace the
balance of the retired SJGS capacity. These include 177 MW of new, natural
gas-fired generation to be built in San Juan County that is an additional
commitment under the agreement, as well as 40 MW of new utility-scale solar
generation. Future regulatory filings will detail the specific costs of the
new facilities and request any needed approvals. PNM would also address rate
increases related to the Revised SIP in future rate cases as they are not
included in today’s proposal.

PNM has asked the NMPRC to issue its final ruling no later than December 2014
to accommodate compliance with the Revised SIP.

An executive summary of the PNM filing with the NMPRC, as well as related
testimony, can be found on the company’s website at
www.pnmresources.com/investors/regulatory.cfm.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque,
N.M., with 2012 consolidated operating revenues of $1.3 billion. Through its
regulated utilities, PNM and TNMP, PNM Resources has approximately 2,538
megawatts of generation capacity and serves electricity to more than 739,000
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 future events or PNM
Resources’ (“PNMR”) or Public Service Company of New Mexico’s (collectively,
the “Company”) expectations, projections, estimates, intentions, goals,
targets and strategies 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. PNMR and PNM assume no
obligation to update this information. Because actual results may differ
materially from those expressed or implied by these forward-looking
statements, PNMR and PNM caution readers not to place undue reliance on these
statements. PNMR's and PNM's business, financial condition, cash flow and
operating results are influenced by many factors, which are often beyond their
control that can cause actual results to differ from those expressed or
implied by the forward-looking statements. For a discussion of risk factors
and other important factors affecting forward-looking statements, please see
the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange
Commission, which factors are specifically incorporated by reference herein.

Contact:

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