NMPRC Orders Extension in PNM General Rate Case Schedule

ALBUQUERQUE, N.M., Aug. 24, 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 third extension to the schedule and extends the suspension period through Sept. 30, 2016, the 13-month maximum suspension period allowed by law, delaying the implementation of new rates to Oct. 1, 2016.

Following the 30-day suspension of rates, management affirmed its 2016 consolidated ongoing earnings guidance of $1.55 to $1.65 per diluted share.

The NMPRC also proposed to reopen the case and extend the suspension period to Dec. 15, 2016 and ordered PNM to respond to this proposal by Monday, Aug. 29, 2016. PNM is evaluating the request, given the extensive existing record in this case and the potential appeal process. PNM anticipates that the NMPRC will issue an order on this matter at its Aug. 31, 2016 open meeting.

Today's orders are available at http://www.pnmresources.com/investors/rates-and-filings.aspx.

General Rate Case Background:
PNM filed its request on August 27, 2015 for an increase in electric rates of $123.5 million (including $2 million of fuel costs), 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. Following the hearings, a bench request was issued regarding the 64 MW purchases of previously leased Palo Verde Nuclear Generating Station Unit 2 capacity included in the rate filing and additional hearings were held in June. On Aug. 4, 2016, the Hearing Examiner issued a recommended decision in the case, proposing an increase in non-fuel revenues of $41.3 million versus the modified non-fuel request of $121.5 million.

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.'s ("PNMR"), Public Service Company of New Mexico's ("PNM"), or Texas-New Mexico Power Company's ("TNMP") (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, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP'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.

Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized impairments on available-for-sale securities, and certain non-recurring or infrequent items. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings; therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.

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