Investor Presentaiton

Replacement Power Scenarios Considered PNM Owned Resources PNM Capex Recommended Scenario 1 - Hybrid • 280 MW gas (1) • 70 MW battery Scenario 2 San Juan Location 476 MW gas (1) $331M $298M . • 350 MW solar Third Party Resources ⚫60 MW battery $4,732M (+$54M) Balancing Cost / Environment / Reliability: Incremental cost (NPV) $4,678M CO₂ emission reduction (2) Reliability Other 62% Managed risk, storage capacity ≤5% of energy usage, each battery location limited to 40 MW Partial San Juan property tax base (1) Designates resources located in the San Juan area school district (2) From 2005 levels in alignment with the Paris Agreement 59% Managed risk, storage capacity ≤5% of energy usage, each battery location limited to 40 MW Maximizes San Juan property tax base Scenario 3 No Fossil Fuel ⚫40 MW battery (1) • 110 MW battery $243M 500 MW solar • 260 MW battery $4,834M (+$156M) 65% Increased risk as higher % of system based on unproven battery technology Limited San Juan property tax base Scenario 4 All Renewable $37M ⚫1,059 MW wind • 975 MW solar $5,452M (+$774M) 67% Heightened reliability risks - does not meet federal reliability standards No San Juan property tax base PNM@Resources Note: A PPA for 140 MW of wind energy was requested separately in a June 1, 2019 RPS Filing and was incorporated into all contemplated scenarios 17

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