The New Mexico Public Regulation Commission (NMPRC) today granted PNM an extension from July 1 until Aug. 1 to file signed ownership restructuring and coal supply agreements for San Juan Generating Station.

“We are grateful that the Commission granted the extension, which will allow PNM to complete the complicated process of ownership restructuring for the plant,” said Pat Vincent-Collawn, PNM chairman, president and CEO.

PNM, PNMR Development, Tucson Electric Power and the City of Farmington expect to sign their final agreements by July 1. These entities represent 92 percent of ownership in San Juan as of Jan. 1, 2018. The remaining owners have committed to signing their agreements by Aug. 1, 2015. Municipal owners have public notice requirements that necessitate additional time to obtain final approval from their governing bodies. PNM will file both the signed copies of the long-term coal supply agreements with Westmoreland Coal Company and the signed restructuring agreements by July 1, 2015. Additionally, PNM has requested a prehearing conference that will establish a procedural schedule, including setting a hearing date. The hearing will provide the opportunity to review all documents, including the cost to customers.

The agreements are necessary for the company to proceed with implementing the Stipulated Settlement Agreement for the San Juan plant, which if approved by the Commission, would provide significant environmental benefits at the lowest cost to customers. The new long-term coal supply agreements, which won’t take effect unless the PRC approves PNM’s plan, will provide $300 million in cost savings over six years that will be passed through to customers beginning Jan. 1, 2016. This would reduce monthly bills for average residential customers by about 5 percent beginning in 2016.

“At the end of the day, the most important consideration in this process is the impact on our customers, and the PNM plan is clearly the best, most cost-effective path forward,” added Vincent-Collawn.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2014 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,707 megawatts of generation capacity and provides electricity to more than 753,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website 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 (“PNM”) (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.