EPA Approves Revised State Plan for PNM’s San Juan Generating Station

PNM Resources' (NYSE: PNM) New Mexico utility, PNM, praised Friday’s decision by the U.S. Environmental Protection Agency (EPA) approving a revised state plan to comply with federal environmental rules that calls for closing two of four units at the San Juan Generating Station, a coal-fired power plant located in the Four Corners area of northwestern New Mexico. Implementation of the revised plan would result in a significant reduction of water use and emissions at the plant and a 30 percent reduction of coal in PNM’s portfolio.

“EPA approval is further validation that we are on the right path toward a cleaner and more balanced power supply that will also remain affordable,” said Pat Vincent-Collawn, chairman, president and CEO of PNM Resources. “I thank Gov. Susana Martinez for her strong leadership on this important issue.”

The revised plan was proposed 18 months ago by PNM, the N.M. Environment Department and EPA representatives, with encouragement from N.M. Gov. Susana Martinez and the Navajo Nation President Ben Shelly, as a cost-effective approach for complying with federal haze regulations. Importantly, the revised plan will also put New Mexico well down the path toward compliance with new carbon regulations proposed by the EPA in June.

EPA approval is the second of three regulatory milestones necessary before the revised plan can be implemented. Last year, it won unanimous approval from the N.M. Environmental Improvement Board. N.M. Public Regulation Commission (NMPRC) approval is still required. Settlement discussions with the various parties to the NMPRC case are ongoing.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2013 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,572 megawatts of generation capacity and serves electricity to more than 746,000 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.