New Mexico Regulators Vote to Modify Terms of PNM Rate Case Agreement, Subject to Acceptance by Signatories

ALBUQUERQUE, N.M.--(BUSINESS WIRE)--The N.M. Public Regulation Commission today approved a proposed order that would increase annual base revenues for PNM Resources’ (NYSE: PNM) electric utility, Public Service Co. of New Mexico, by $72 million. Because the proposed order modifies terms of an agreement PNM reached in February with several key parties, the modifications are subject to acceptance by the signatories.

“Clearly we are disappointed that the Commission deviated from the $85 million request that was agreed to by several key parties and was deemed justified and reasonable by a hearing examiner and the Commission’s general counsel”

The February agreement, which was reached with parties including the Commission staff and the state Attorney General’s office, which serves as a consumer advocate in rate cases, included an $85 million annual base revenue increase, to be implemented in two phases, and a $20 million capital additions rider. The capital additions rider and the phased implementation of increased base revenues were not included in today’s proposed order.

“Clearly we are disappointed that the Commission deviated from the $85 million request that was agreed to by several key parties and was deemed justified and reasonable by a hearing examiner and the Commission’s general counsel,” said Pat Vincent-Collawn, PNM Resources president and CEO.

The Commission’s written order is not expected to be issued until next week. Until the written order is reviewed, PNM Resources cannot fully assess its impact, Vincent-Collawn said.

PNM and the other signatories will have five days from the entry of the written proposed order to either accept the modified terms or ask for a rehearing. If a rehearing is requested, the Commission then will have 20 days to grant or deny the request.

When available, the order will be posted on the PNM Resources Web site at http://www.pnmresources.com/investors/regulatory.cfm.

BACKGROUND

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2010 consolidated operating revenues of $1.7 billion. Through its utility and energy subsidiaries, PNM Resources has approximately 2,530 megawatts of generation capacity and serves electricity to more than 875,300 homes and businesses in New Mexico and Texas. The company also has a 50-percent ownership of Optim Energy, which owns nearly 1,200 megawatts of generation resources in Texas. For more information, visit the company’s Web site at www.PNMResources.com.