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Investor Presentaiton

San Juan Generating Station Ownership and Retirement Total PNM PNM Unit Other Participants/Ownership MW MW Ownership 1 340 170 50% Tucson Electric 50% (170 MW) 4 507 392 77.3% Los Alamos County 7.2% (36.5 MW) City of Farmington 8.5% (43 MW) Utah Associated Municipal Power Systems (UAMPS) 7.0% (35.5 MW) Total 847 562 Abandonment, Securitization and Replacement Power . ⚫ July 1, 2019: PNM filed for abandonment, securitization and replacement after existing participation agreement · and coal supply contracts ended on June 30, 2022 ⚫ January 2020: NM Supreme Court confirmed applicability of Energy Transition Act to PNM's application • Case bifurcated: Abandonment/Securitization approved April 1, 2020, order selecting 950 MW PPA/ESA replacement resources issued July 29, 2020, with final contracts negotiated subsequently • During 2021, each PPA/ESA developer provided notice of inability to meet June 30, 2022 in-service date PNM filed on February 17, 2022 for variance to keep Unit 4 open until September 30, 2022 in response to resource adequacy issues; NMPRC deemed approval not necessary Securitization reduces customer financing costs, supports impacted workers and communities $283M undepreciated investment 29M decommissioning costs 20M job training and severance costs 20M economic development funds 9M financing costs $361M total securitization PNMResources 30
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