How To Be Successful In A Tough Economic Environment

2014 Analyst Day

Introduction

Jimmie Blotter

Leadership Team

Ron Darnell

SVP,

Public Policy

Pat Vincent-Collawn

Chairman,

President,

and CEO

Ron Talbot

SVP and

COO

Patrick

Apodaca

SVP,

General

Counsel

Gerard Ortiz

VP, PNM

Regulatory

Affairs

Terry Horn

VP and

Treasurer

Chuck Eldred

EVP and

CFO

Agenda

Welcome / Introductions

11:00 – 11:05

Strategic Overview

11:05 – 11:25

PNM 2016 General Rate Case

11:25 – 11:45

Stakeholder Engagement

11:45 – 12:05

Q&A

12:05 – 12:15

Break / Lunch

12:15 – 1:00

2015 Guidance / Earnings Power

1:00 – 1:40

Wrap Up / Q&A

1:40 – 2:00

Jimmie Blotter

Pat Vincent-Collawn

Gerard Ortiz

Ron Darnell

Chuck Eldred

Pat Vincent-Collawn

Contact Information and Safe Harbor Statement

Safe Harbor Statement

Statements made in this presentation that relate to future events or PNM Resources’ (“PNMR”),

Public Service Company of New Mexico’s (“PNM”), or Texas-New Mexico Power Company’s

(“TNMP”) (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, PNM, and TNMP assume no obligation to update this information. Because

actual results may differ materially from those expressed or implied by these forward-looking

statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these

statements. PNMR's, PNM's, and TNMP'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.

Non-GAAP Financial Measures

For an explanation of the non-GAAP financial measures that appear on certain slides in this

presentation (ongoing earnings, ongoing earnings per diluted share, and ongoing EBITDA), as well

as a reconciliation to GAAP measures, please refer to the Company’s website as follows:

Strategic Overview

Pat Vincent-Collawn

PNM Resources: Delivering on Strategic Goals

Strategic Goals

Earn Authorized Return on our Regulated Businesses

TNMP continues to earn its allowed return

PNM earned its allowed return in 2012 and 2013

Received three upgrades within two years

Provide Top Quartile Total Return

On track to deliver 10%-13% total return by 2016

PNM Resources: Continuing the Momentum

Create enduring value for customers,

communities and shareholders

•

Enhance the customer experience

•

Focus on stakeholder relationships

•

Continue to improve processes

Build an Efficient,

Customer-Focused

Organization

•

Secure approval of BART

•

Improve pricing structure and rate design

•

Advance rate making approach

Continue to Gain

Positive Regulatory

Outcomes

•

Core infrastructure

•

Environmental, BART, renewables and

reliability

Invest in the

Business

Enhance the Customer Experience

Customer

Satisfaction

High

Reliability

Maintain

Affordability

Community

Partner



The PNM Customer Image Study shows

that customers perceive PNM favorably



In July/August, PNM’s overall satisfaction

index, as tracked by J.D. Power, reached

the highest level in recent years

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% UT CO IL NH DC WA MA ME MN WY CA PN M (2 01 3) NJ RI VT WI _{NM OR IA AK VA NE MI MD CT ND ID MT PA SD K}S NY IN _{MO OK OH DE N}V _WV AZ TX GA FL AR KY NC TN LA SC AL HI MS Est . A ver age 20 13 Resi den tia l E lec tr ic B ill Es t. 2 01 3 M ed ia n H ou se ho ld In co m e

Residential Electric Affordability by State for 2013 (Including PNM)

US Average Indicated by Dashed Line

Focus on Stakeholder Relationships

11

Our Currency is Our Credibility



Continue to strengthen long-term relationships with stakeholders



Maintain reputation as trusted information source

Residential

Customers

Customers

Industrial

Commercial

Customers

Commissioners

Staff

Attorney

_General

Environmental

_Groups

Low Income

_Advocates

Community

Leaders

Advocates

Solar

Governor

Mayors

Legislators

Chambers of

_Commerce

Potential New

_Businesses

Employees

Continue to Gain Positive Regulatory Outcomes: Secure

Approval of BART

12

RSIP and Proposed BART Settlement Key Components

Recovery in:

Installation of SNCR technology on San Juan

Units 1 and 4 ($81M)

2016

Retirement of San Juan Units 2 and 3 and

recovery of half of the 12/31/17

undepreciated investments (expected to be

~$115M)

2018

CCNs for 134 MW Palo Verde Unit 3

($1,650/kW) and 132 MW of San Juan Unit 4

($26M) effective 1/1/18

2018

Other Proposed Power Resources

40 MW solar facility ($79M)

2016

177 MW gas peaker ($189M)

2018

December 20, 2013



PNM submitted filing to

NMPRC

2014 - 2015



December 19, 2014:

Rebuttal testimony due



_{January 5 – 16, 2015:}

Hearing with Hearing

Examiner



Q1 2015: Final Order

expected

RSIP: Revised State Implementation Plan BART: Best Available Retrofit Technology SNCR: Selective Non-Catalytic Reduction

(1) _{Not included in the Proposed BART Settlement}

Continue to Gain Positive Regulatory Outcomes: Improve Pricing

Structure, Rate Design and Advance Regulatory Approach

Address Evolving Regulatory Environment

and Recover Capital Investments

Improve fixed cost recovery

Decrease revenue volatility

PNM 2016 General Rate Case

Gerard Ortiz

PNM 2016 Future Test Year General Rate Case

•

Requested revenue increase of $107 million

•

Based on 2016 future test year and 10.5% ROE

•

Customer bill impact of 7.7%

New Generation:

•

40 MW Solar

•

40 MW La Luz Gas Peaker

SNCR Equipment

Palo Verde Unit 2

Lease Purchases

T&D Reliability and

Core Investments

Depreciation Rate Change

50% Reduction of

Remaining Palo Verde

Lease Payments

Other O&M Changes

Energy Sales

DG Interconnection

Fee

Structural Rate Design

Changes

Decoupling

Rate Base

Operations

Rate Design

Rio Bravo

Generating Station

General Rate Case Drivers

Revenue requirement driven by rate base additions and energy sales

PNM 2016 General Rate Case Drivers

_{(in millions)}

Amount

Rate Base

$99

Energy Sales

22

Other:

50% Reduction of Remaining Palo Verde Lease Payments

(17)

Change in ROE from 10% to 10.5%

6

Re-allocation of Gallup costs

10

Fuel handling (moved to Fuel Clause)

(13)

Other O&M changes

7

Subtotal Other

$(7)

Total Non-Fuel Revenue Deficiency

$114

Projected Fuel Reduction

₍₇₎

Total Revenue Deficiency

$107

General Rate Case Drivers – Rate Base

Rate

Base

Additions

Incremental

Revenue

Requirement

(Retail share, in millions)

Solar (40 MW)

$66

$11

La Luz Gas Peaker (40 MW)

50

9

Rio Bravo Generating Station (138 MW)

33

-

San Juan SNCR Equipment

57

11

Palo Verde Unit 2 Lease Purchase (64 MW)

₁₃₄

_-

Core Rate Base Growth

245

21

Core Depreciation and Property Taxes

24

Update to Depreciation Rates

23

Total increase due to rate base items

$585

$99

(1) _{Acquisition of Rio Bravo Generating Station & 64 MW Palo Verde Unit 2 leases are included}

General Rate Case Drivers – Energy Sales



_{Compared to the last filed retail load forecast, load decline has}

contributed to a $22

million revenue requirement deficiency

•

Residential use per customer has declined, coupled with slow customer growth

•

Commercial customers’ average usage has decreased 10%

•

Large Power customer count has decreased 15%

400 450 500 550 600 650 700 2010 2016E

kW

h

Rate Design

Structural Rate Design Changes

• Cost Allocation Changes

• Improved Fixed Cost Recovery • Economic Development Rate

DG Interconnection Fee

•Fixed monthly charge of $6 per installed solar kW/month for new residential DG customers

•Avg. residential PV system is 3.5 kW

Decoupling

•Addresses energy efficiency disincentive •4-year pilot

Customer Bill Impact

Bill Impact for Major Customer Classes

Customer Class

Bill % Increase

Residential

11.9%

Small Power

9.3%

General Power

3.7%

Large Power

5.9%

Large Power >= 8,000

2.0%

Universities

-1.5%

Manufacturing

-7.3%

System Total

7.7%

PNM Rates Continue to Compare Favorably in the U.S.

21

PNM rates reflect current rates (2013) and the filed general rate case (2016). All others reflect U.S. Energy Information Administration's Forecasted

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% UT _CO IL NH DC WA MA ME MN WY CA P N M ( 20 1 3 ) NJ RI VT WI _NM P N M ( 20 1 6 ) OR IA AK VA NE M I M D CT ND ID MT PA SD KS NY IN _MO OK OH DE NV _WV AZ TX GA FL AR KY NC TN LA SC AL HI _MS E st . A v e rag e 2 01 3 R es id e n ti a l E le c tr ic B il l E s .t 2 0 1 3 Me di a n Hous e hol d Inc om e

Residential Electric Affordability by State for 2013 (Including PNM) US Average Indicated by Dashed Line

PNM 2016 Future Test Year General Rate Case Timeline

12/11/2014

Rate Case Filed

12/11/2014 thru 10/12/2015

Statutory 9+1 Month Suspension Period

10/12/2015 thru 12/31/2015

Allowance for Additional Consideration by Commission

1/1/2016

Stakeholder Engagement

Ron Darnell

Stakeholder Engagement

Our Currency is

Our Credibility

Customer Satisfaction

Strong Relationships

Effective

Communications

High Quality Regulatory

Filings

NMPRC

BART

Approval

PNM 2016

Rate Case

FERC

Formula

Rate Case

TNMP

TCOS

Filings

TNMP Rate

Case

PNM 2018

Rate Case

Customer Service



_{New pnm.com ranked top of benchmark}

group



_{Customer satisfaction scores have been on}

the rise



_{Highest scores on customer service surveys}



_{Lowest number of NMPRC merited}

complaints in 5 years

Focus on Our Customers

Provide Excellent

Customer Service

Based on post-call surveys in

2014, customers that are

satisfied or completely

satisfied measured at 91%

Strong Relationships

Communicate our approach to affordability, reliability and environmental

leadership

Reinforce our role as a trusted information

source

Focus on engaging

customers

Effective Communications

27



_{The customer is key}

•

Community-level focus

and presence

•

Enhanced information

channels



PNM.com



Proactive outage

notification

•

Integrated

communication

featuring employees

and customers



Proactively share our story

•

Power for Progress

•

Social media

•

Employees as

High Quality Regulatory Filings



File robust documents



Limit errors within the filings



Preview filings and/or concepts with Staff and

other key intervenors



Manage the discovery process

Comprehensive filing process lays the

foundation for successful settlements

PNM Resources: Continuing the Momentum

Create enduring value for customers,

communities and shareholders

•

Enhance the customer experience

•

Focus on stakeholder relationships

•

Continue to improve processes

Build an Efficient,

Customer-Focused

Organization

•

Secure approval of BART

•

Improve pricing structure and rate design

•

Advance rate making approach

Continue to Gain

Positive Regulatory

Outcomes

•

Core infrastructure

•

Environmental, BART, renewables and

reliability

Invest in the

Business

Break/Lunch

2015 Guidance

Chuck Eldred

PNM Resources: Continuing the Momentum

Create enduring value for customers,

communities and shareholders

•

Enhance the customer experience

•

Focus on stakeholder relationships

•

Continue to improve processes

Build an Efficient,

Customer-Focused

Organization

•

Secure approval of BART

•

Improve pricing structure and rate design

•

Advance rate making approach

Continue to Gain

Positive Regulatory

Outcomes

•

Core infrastructure

•

Environmental, BART, renewables and

reliability

Invest in the

Business

$176 $223 $229 $223 $223

Invest in the Business: 5-Year Capital Forecast

2015 – 2019 Total Capital Plan: $2.2B

$222 $308 _$272 $115 _$96 $122 $95 $63 $65 $121 $79 $121 $93 $93 $106 $105 $24 $19 $15 $14 $15

2015

2016

2017

2018

2019

(In millions)

PNM Generation PNM T&D PNM Renewables TNMP Other Depreciation

$569

$514

$444

$300

$337

PNM Rate Base CAGR: 5

-

7%

TNMP Rate Base CAGR: 5

-

7%

Consolidated Guidance (Ongoing)

$1.50 Consolidated EPS $1.62

PNM

$1.14- $1.21

TNMP

$0.45 - $0.48

Corp/Other

($0.09) – ($0.07)

$1.44 Consolidated EPS $1.51

2014 Guidance Range

2015 Guidance Range

New Mexico Economic Conditions

NM and Albuquerque Metro

Employment moves back into positive territory

2015 Load Projection (2.0%) - 0.0%(2)

2015 Expected Customer Growth 0.5%

(1)_{Excludes Economy Service customers} (2)_{Weather-normalized} 4,000 6,000 8,000 10,000 0 100,000 200,000 300,000 400,000 500,000 600,000 En er gy S al es (G W h) To ta l C us to m er s

PNM Customer Counts and Retail Energy Sales(1)

Energy Sales Customers

-5% -3% -1% 1% 3% 2007 2008 2009 2010 2011 2012 2013 Oct. 2014

Employment Growth Rates

(Year-end measurement, except 2014)

PNM Guidance (Ongoing)

37

2014E – 2015E Key Performance Drivers Year-over-Year _{∆ EPS}

Palo Verde Unit 1 leases at half price $0.13

2014 Weather $0.04

AFUDC $0.04

Refined coal $0.02 - $0.03

2003-2008 IRS Settlement $0.02 Palo Verde Nuclear Decommissioning Trust gains $0.00 - $0.02

Rio Bravo Purchase $0.01

Palo Verde Unit 3 $0.01

Load ($0.10) - $0.00

Outage costs ($0.06)

Depreciation and property tax ($0.06) - ($0.04) O&M increases ($0.04) - ($0.02) FERC Generation Gallup contract ($0.03)

2013

2014E

2015E

Texas Economic Conditions

Strong Employment Growth

Continues in Texas

2015 load projection 2-3%(2)

2015 expected customer growth 1%

(1)_{Excludes Transmission Service end-users} (2)_{Weather-normalized} 2,000 3,000 4,000 5,000 6,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 En er gy S al es (G W h) To ta l C us to m er s

TNMP Customer Counts and Retail Energy Sales(1)

TNMP Guidance (Ongoing)

$0.36

2013

2014E

2015E

$0.45 - $0.48

$0.43 - $0.45

TNMP EPS

2014E – 2015E Key Performance Drivers Year-over-Year _{∆ EPS}

TCOS rate relief $0.05 - $0.07

Load $0.02 - $0.03

Depreciation and property tax ($0.06) - ($0.05)

Interest expense ($0.01)

PNM Resources Projected Earnings Growth

On track to meet Total Return goal by 2016

$1.31

$1.41

$1.44

$1.50

$1.91

$1.72

2012

2013

2014

2015

2016

$1.62

$1.51

PNM Resources Projected Earnings Growth

Earnings growth of 7% - 9% from 2014 through 2019

$1.44

$1.50

$1.51 $1.62

2014

2015

2019

7%-9% Earnings Growth

Liquidity and Capital Structure

PNM TNMP Corporate/ Other

PNM Resources Consolidated Financing Capacity as of November 28, 2014

Total Capacity(1) _{$450.0 $75.0 $300.0 $825.0}

Less short-term debt(1) _{and LOC balances (28.2) (0.1) (7.7) (36.0)}

Plus invested cash - - 6.9 6.9

Total Available Liquidity as of 11/28/14 $421.8 $74.9 $299.2 $795.9

Target cap structures: 50/50 at PNM, 55/45 at TNMP

(1)_{Not included are PNM’s fully drawn $175M term loan due 9/4/15 and Corporate/Other’s fully drawn $100M term loan due 12/26/14.}

(in millions) Dec 31, 2013 Sep 30, 2014

PNM $1,339.8 $1,390.6 TNMP 336.0 365.8 Corporate/Other 218.8 218.8 Consolidated $1,894.6 $1,975.2

Total Debt

Long-term Debt Maturities

(In millions)

PNM Resources PNM TNMP

(2) _{Includes short-term debt, but excludes inter-company debt} (3) _{Excludes unamortized balance of discounts/premiums}

Dividend Growth: Continued Dividend Increases



_{The annual common stock dividend}

raised by 8% in December 2014 to

$0.80 per share



Long-term target: 50% - 60% payout ratio

•

Expect above industry average dividend

growth while staying in the target payout

ratio range



_{The Board will continue to evaluate the}

dividend on an annual basis, considering:

•

Sustainability and growth

•

Capital planning

•

Industry standards



Next dividend review in December 2015

Dividend rate:

$0.80

(1)

Payout ratio:

51%

(2)

Dividend yield:

2.8%

(3)

(1) _{Indicated annual rate}

(2) _{Assumes mid-point of the 2015 guidance range} (3) _{Based on 12/12/14 stock price of $28.58}

$0.58 $0.66 $0.74 $0.80

Wrap Up

Pat Vincent-Collawn

PNM Resources: Continuing the Momentum

Create enduring value for customers,

communities and shareholders

•

Enhance the customer experience

•

Focus on stakeholder relationships

•

Continue to improve processes

Build an Efficient,

Customer-Focused

Organization

•

Secure approval of BART

•

Improve pricing structure and rate design

•

Advance rate making approach

Continue to Gain

Positive Regulatory

Outcomes

•

Core infrastructure

•

Environmental, BART, renewables and

reliability

Invest in the

PNM Resources Summary

Continued earnings and dividend growth make PNM Resources an

attractive investment



_{Expect to meet 2016 total return target of 10% - 13%}



_{Annual earnings growth of 7% - 9% through 2019}



_{Potential investments beyond 2018:}

•

Renewable resources

•

Transmission investments

•

Grid enhancements

•

Purchase remaining 114 MWs of Palo Verde leases



_{Continued above industry-average dividend growth}

•

Option to increase target payout ratio range after heightened capital spending

is complete

2016 Potential Earnings Power

49

(1) _{The 2016 Future Test Year Rate Case proposes a 10.5% ROE. As this rate case has not yet been approved, the currently authorized 10% ROE has been used for this}

presentation.

(2) _{2016 earnings potential is based on FERC formula rate methodology which uses 2015 average rate base and assumes mid-year rate increases. Earnings}

are reflective of returns adjusted for mid-year increases. 2016 Potential Earnings Power assumes returns of 5%-6%.

(3) _{The potential earnings power assumes a 2016 forward market price of $37/MWh. A price of $43/MWh is required to break even in 2016.}

(4) _{Consists primarily of Palo Verde Nuclear Decommissioning Trust gains and losses, AFUDC, refined coal, certain incentive compensation and pension-related costs}

associated with the sale of PNM Gas.

(5) _{Includes $0.02 of Competitive Transition Charge (CTC) recovery.} (6) _{PNM Resources’ $119 M 9.25% debt matures May 15, 2015.}

This table is not intended to represent a forward-looking projection of 2016 earnings guidance.

Allowed Return / Equity Ratio

2015 Guidance Mid Point

2016 Earnings Potential

Avg Rate

Base Return EPS Avg Rate Base Growth EPS

PNM Retail (1) _{10% / 50% $2.0 B 8.4% $1.02 $2.39 B $0.47 $1.49}

PNM Renewables 10% / 50% $105 M 10.0% $0.07 $100 M ($0.01) $0.06

PNM FERC (2) _{9-10% / 50% $235 M 5.5% $0.08 $235 M ($0.01)-$0.01 $0.07-$0.09}

PV3 (3) _{($0.01) ($0.04) ($0.05)}

Items not in rates (4) _{$0.02 ($0.06)-($0.03) ($0.04)-($0.01)}

Total PNM $2.3 B $1.18 $2.7 B $0.35 - $0.40 $1.53 - $1.58

TNMP (5) _{10.125% / 45% $680 M 10.125% $0.46 $750 M ($0.01) $0.45}

Corporate/Other(6) _{($0.08) $0.00-$0.02 ($0.08)-($0.06)}

2018 Potential Earnings Power

50

(1) _{The 2016 Future Test Year Rate Case proposes a 10.5% ROE. As this rate case has not yet been approved, the currently authorized 10% ROE has been used for this}

presentation.

(2) _{Based on FERC formula rate methodology which uses prior year average rate base and assumes mid-year rate increases. Earnings are reflective of returns}

adjusted for mid-year increases. Potential Earnings Power assumes returns of 5%-6%.

(3) _{PV 3 included in PNM rates starting in 2018.}

(4) _{Consists primarily of Palo Verde Nuclear Decommissioning Trust gains and losses, AFUDC, refined coal, certain incentive compensation and pension-related costs}

associated with the sale of PNM Gas.

(5) _{TNMP Earnings Potential includes $0.02 of CTC, amortizes to zero in 2020.}

This table is not intended to represent a forward-looking projection of 2016 or 2018 earnings guidance.

2016 Earnings Potential

2018 Earnings Potential

Avg Rate Base EPS Avg Rate Base Growth EPS

PNM Retail (1) _{$2.39 B $1.49 $2.5 B $0.07 $1.56}

PNM Renewables $100 M $0.06 $85 M ($0.01) $0.05

PNM FERC (2) _{$235 M $0.07-$0.09 $270 M $0.01 $0.08-$0.10}

PV3 (3) _{($0.05) Included in PNM $0.05 Included in PNM}

Items not in rates (4) _{($0.04)-($0.01) $0.00 ($0.04)-($0.01)}

Total PNM $2.7 B $1.53 - $1.58 $2.9 B $0.12 $1.65 - $1.70

TNMP (5) _{$750 M $0.45 $840 M $0.05 $0.50}

Corporate/Other ($0.08)-($0.06) $0.02 ($0.06)-($0.04)

EBITDA and Quarterly Earnings Distribution Guidance (Ongoing)

Ongoing EBITDA

(In millions)

2014E

2015E

12%

26%

47%

15%

Q1 2015E

Q2 2015E

Q3 2015E

Q4 2015E

PNM Assumptions

amounts shown are before tax

2015

Assumptions

2015 Weather -

Load (2.0%) to 0%

1% = $0.05

Palo Verde Unit 3 sales price ($/MWh) ~$38

O&M increase $3M - $5M

Palo Verde Unit 1 leases at half price $16.5M

Outage costs $21M

PV3 Nuclear Decommissioning Trust gains $12M - $15M

Tax rate 35.4%

TNMP Assumptions

amounts shown are before tax

2015

Assumptions

Corporate and Other Guidance (Ongoing)

($0.11)

2013

2014E

2015E

($0.10) – ($0.09) ($0.09) – ($0.07)

Corporate and Other EPS

2014E – 2015E Key Performance Drivers and Assumptions Year-over-Year _{∆ EPS}

Interest savings on retired 9.25% debt $0.05

Interest expense on higher short-term debt levels ($0.02) - ($0.01)

2003-2008 IRS Settlement ($0.02)

Tax rate 32.5%

PNM Plant EAF and Outages

2015 - 2016 Outage Schedule

San Juan

Four Corners

Palo Verde

12 months ending 9/30/13

12 months ending 9/30/14

Unit Duration _{in Days Period} Time

San Juan 1 46 Q1 2015 4 44 Q4 2015 3 14 Q4 2015 Four Corners 5 75 Q4 2015 4 21 Q1-Q2 2016 5 10 Q4 2016 Palo Verde 3 30 Q2 2015 2 30 Q4 2015 1 30 Q2 2016 3 30 Q4 2016

Credit Ratings

56

PNMR

PNM

TNMP

Debt rating

Baa3

_Baa2

_A2

Outlook

Positive

Positive

Positive

S&P

Moody’s

PNMR

PNM

TNMP

Issuer debt rating

BBB-

_BBB

_A-

Outlook

Positive

Positive

Positive

(1) _{Senior unsecured debt} (2) _{Senior secured debt}

Elected Officials and Commissioners – New Mexico

District

Name

Term

_Ends

Party

District 1 Karen Montoya 2016 Democrat

District 2 Patrick Lyons 2018 Republican

District 3 Valerie Espinoza, Vice Chair 2016 Democrat

District 4 Theresa Becenti-Aguilar, Chairman

Elected: Lynda Lovejoy

2014

2018 Democrat Democrat

District 5 Ben Hall _{Elected: Sandy Jones} 2014 ₂₀₁₈ Republican _Democrat

New Mexico Commissioners and Districts

Name

Office

Party

Current Office

Susana Martinez New Mexico Governor Republican Governor

Hector Balderas New Mexico Attorney General Democrat Auditor

NMPRC Districts and

PNM Service Areas

Elected Officials and Commissioners – Texas

PUCT Commissioners

Commissioners are appointed by Governor of Texas. Length of term is determined by the Governor.

(1)_{Pending Senate confirmation.}

Name

Term Began

_Ends

Term

Party

Donna Nelson

Chairman Aug. 2008 Aug. 2015 Republican

Kenneth Anderson Sept. 2008 Aug. 2017 Republican

Brandy Marty Marquez(1) _{Aug. 2013 Aug. 2019 Republican}

Name

Office

Party

Current Office

Regulatory Update

Filing

Action

Timing

Docket No.

PNM:

BART Filing Filed December 20, 2013 Proposed settlement filed October 1, 2014

Final approval expected Q1 2015 13-00390-UT

2015 Renewable Plan Filed June 2, 2014 Final approval received November 26, 2014 14-00158-UT

2016 Future Test Year

General Rate Case Filed December 11, 2014 Expect rates effective January 1, 2016 14-00332-UT

FERC:

Transmission Formula

Rates Filed December 31, 2012 Settlement discussions are ongoing ER13-685-000 and

ER13-690-000

TNMP:

EPA’s Proposed Clean Power Plan

 Requires each state to develop and implement a state plan to

reduce its CO2 emissions rate to meet state-specific standards

based on 2012 average emissions rates for all affected fossil-fueled units in the state.

• Issued under the authority of section 111(d) of the Clean

Air Act (CAA).

 _{Results in a two-phased program:}

• Interim emission rate goal for “phased-in” period of

2020-2029.

 New Mexico’s required interim reduction of

emissions from 2012 will be 30%.

• Final emissions rate goal must be achieved in 2030 and

beyond.

 New Mexico’s required final reduction of emissions

from 2012 will be 34%.

 _{Assumes an RPS of 21% by 2030 and energy efficiency savings}

of 1.5% annually.

10 New Mexico Facilities Affected

Coal Plants

San Juan (PNM)

Escalante (Tri-State)

Natural Gas Combined Cycle Plants

Afton (PNM)

Luna (PNM)

Bluffview (City of Farmington)

Hobbs (Xcel)

Oil and Gas Steam Plants

Reeves (PNM) Cunningham (Xcel) Rio Grande (El Paso)

Maddox (Xcel)

The goal of the plan is an estimated 30% reduction in CO

emissions from the U.S. electric power sector in 2030,

relative to 2005 levels.

Investor Relations Contact Information

Jimmie Blotter

Director, Investor Relations

U.S. 1-505-241-2227

[email protected]

Lisa Goodman

Investor Relations Analyst

U.S. 1-505-241-2160

[email protected]

Cathy Martinez

Investor Relations Analyst

U.S. 1-505-241-4536