Investor Presentaiton
•
PNM New Mexico Supreme Court Appeal
September 30, 2016: PNM filed Notice of Appeal with New Mexico Supreme Court
May 16, 2019: New Mexico Supreme Court affirmed the disallowance on each of the
items below, but did not affirm the disallowance of future Palo Verde Nuclear
Decommission Costs
Appealed Item
Palo Verde Nuclear Generating Station:
64 MW Unit 2 capacity purchase
and Units 1 and 2 lease
extensions
Leasehold Improvements related
to previously leased 64MW
capacity
San Juan Generating Station:
Conclusion
Purchase and extension deemed
imprudent
Included in net book value of
purchased 64MW capacity
Resulting Impact
Fair market value disallowed; future
responsibility for decommissioning
shifted to shareholders
Leasehold improvements rate base
disallowed
Balanced Draft
Air permit rejected and
investment deemed imprudent
Rate base disallowed
Note: As of March 31, 2019, the asset value of the Palo Verde and balanced draft investments pending
appeal with the New Mexico Supreme Court were reduced by $15.3 million pre-tax to reflect a
minimum of 34 months disallowed recovery during appeal. The Supreme Court ruling results in a non-
cash write-off for the remaining values of these assets during Q2 2019 totaling $104 million, comprised
of $149 million pre-tax and $45 million of income tax impacts.
PNMResources
24View entire presentation