San Juan Mine Sale Finalized

Customer Savings Included in Bills Starting Feb. 6

Feb 01, 2016, 16:20 ET from PNM Resources

ALBUQUERQUE, N.M., Feb. 1, 2016 /PRNewswire/ -- PNM Resources' (NYSE: PNM) New Mexico Utility, Public Service Co. of New Mexico (PNM), today announced that customer savings have been secured through the finalization of the new coal supply and participant restructuring agreements for the San Juan Generating Station (SJGS). Combined savings from the agreements are expected to reduce customer costs by more than $300 million over six years. This will reduce customer bills by approximately five percent, with retroactive savings implemented as if the new coal contract had become effective in the month of January.

"Reaching this important milestone means that PNM can now move forward with its commitment to deliver these cost savings to our customers," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "Collectively, the elements of the plan for SJGS will provide significant environmental benefits while minimizing the impact to PNM customer bills, as well as the impact to jobs and the New Mexico economy as a whole.  Now that the new coal supply and participant restructuring agreements are finalized, we can begin to deliver those benefits to our customers."

The sale of the San Juan Coal Company, the owner of the San Juan Mine, from BHP Billiton to Westmoreland San Juan, LLC, a subsidiary of Westmoreland Coal Company, has been completed, and resulted in the finalization of the new coal supply and participant restructuring agreements.  Westmoreland San Juan began operating the mine Feb. 1, 2016.  To facilitate the closing and secure PNM customer savings, PNM Resources established a new subsidiary, NM Capital Utility Corp, which assisted Westmoreland with the financing to complete their acquisition of the San Juan Coal Company.

"The addition of the San Juan Mine to our portfolio of mine mouth, contracted business is an overwhelming success for PNM, its customers and Westmoreland," said Kevin A. Paprzycki, Westmoreland Coal Company's CEO.  "We look forward to continuing to build a solid, long-lasting relationship with the SJGS owners and are pleased to welcome the employees of the San Juan Coal Company to the Westmoreland family." 

Based in Englewood, CO, Westmoreland Coal Company (NASDAQ: WLB) is the oldest independent coal company in the U.S.  Westmoreland's coal operations include surface and underground mining operations, a char production facility, and a 50 percent interest in an activated carbon plant.  Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, a publicly-traded coal master limited partnership with six mining complexes.  Its power operations include ownership of the two-unit ROVA coal-fired power plant.

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, Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP), PNM Resources has approximately 2,787 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.

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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.

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