NMPRC Orders Extension in PNM General Rate Case Schedule

ALBUQUERQUE, N.M., May 18, 2016 /PRNewswire/ -- The New Mexico Public Regulation Commission (NMPRC) today ordered a 30-day extension to the procedural schedule for the general rate case filing submitted by PNM Resources' (NYSE: PNM) New Mexico utility, Public Service Co. of New Mexico (PNM). This order represents the second extension to the schedule and extends the suspension period through August 31, 2016, delaying the earliest implementation of new rates to September 1, 2016.

"While today's extension is within the suspension period allowed by state law, it is disappointing that the implementation date will now be a full year after our filing," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "It is unfortunate that after three weeks of evidentiary hearings, additional bench requests to provide information on past regulatory actions on Palo Verde that do not ultimately change the amount of our request have resulted in a further delay. We do not believe the delay is necessary and our filings more than adequately address the questions regarding Palo Verde."

PNM filed its request on August 27, 2015 for an increase in electric rates of $123.5 million, reflecting a $655 million increase in rate base since its previous general rate case filing in 2010. Hearings on the request were held during the month of April. The bench requests relate to the 64 MW purchases of previously leased Palo Verde Nuclear Generating Station Unit 2 capacity included in the rate filing. The associated leases were set to expire in January 2016 and were purchased at fair market value to secure the capacity currently serving retail customers. These purchases were consistent with both prior NMPRC approvals and all of PNM's previously filed Integrated Resource Plans. An additional hearing has been scheduled on June 27, 2016, which allows the information supplied to be included in the record of the hearing.

On December 18, 2015 the company issued its 2016 earnings guidance. At that time, the company provided earnings sensitivities that describe the effects of timing delays on the rate case. Those sensitivities continue to apply and can be found at http://www.pnmresources.com/~/media/Files/P/PNM-Resources/events-and-presentations/2015/2016-earnings-guidance-presentation-and-appendix.pdf. Revised earnings guidance is expected to be issued during the third quarter and incorporate any preliminary or final decision in PNM's general rate case.  

Certain documents related to PNM's rate filing can be found at http://www.pnmresources.com/investors/rates-and-filings.aspx.

Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2015 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and Texas-New Mexico Power Company (TNMP), PNM Resources has approximately 2,787 megawatts of generation capacity and provides electricity to more than 760,000 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, Inc. ("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.

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SOURCE PNM Resources