PNM to Proceed with Regional Energy Market Participation; NMPRC Approves PNM Renewable Plan

Albuquerque, N.M., Dec. 20, 2018 /Prnewswire/ -- The New Mexico Public Regulation Commission (NMPRC) yesterday unanimously approved an order pertaining to plans by PNM, the wholly owned New Mexico utility subsidiary of PNM Resources (NYSE: PNM), to join the Western Energy Imbalance Market (EIM) operated by the California Independent System Operator. The order governs the accounting treatment for costs related to joining the EIM. PNM is planning to join the EIM in 2021 and expects to seek recovery for these costs in future general rate cases, as the benefits from participation will reduce costs for customers under the existing fuel and purchase power clause.

PNM considered the costs and benefits of joining multiple regional organizations and determined that the EIM currently provides the greatest benefit to customers, including expanding opportunities for PNM to integrate additional renewable energy into its service territory. Through coordination with other EIM members, PNM will be able to facilitate greater utilization of renewable resources in New Mexico. When renewable energy production on the PNM system exceeds the amounts needed by its customers, PNM will be able to sell this excess energy to other EIM members and reduce customer costs by the amount of these sales.

The NMPRC also granted PNM unanimous approval of its 2019 Renewable Energy Act Plan on November 29, 2018, incorporating previously approved wind, solar and geothermal energy additions into customer rates. These renewable additions, which include 50 megawatts of solar facilities constructed in 2018, contribute to the 874 megawatts of existing and approved solar, wind and geothermal resources that PNM has planned to serve customers in 2021.

Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2017 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,580 megawatts of generation capacity and provides electricity to more than 773,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website at www.PNMResources.com.

Contacts:

Analysts: Lisa Goodman, 505-241-2160

Media: Ray Sandoval, 505-241-2782

Source PNM Resources, Inc.

Web Site: http://www.pnmresources.com