Investor Presentaiton

New Mexico Supreme Court Appeals - Statement of Issues Four Corners (filed Jan. 21, 2022), case S-1-SC-39152 Merger (filed Feb. 2, 2022), case S-1-SC-39138 ● The NMPRC's denial of abandonment and issuance of financing order was: . • . Contrary to the ETA's language for considering replacement resources and allowing a subsequent case for new resources, and therefore also not sufficient for failing to issue a financing order Unsupported by a determination of public convenience and necessity of the plant, or application of other statutory standards (including net public benefit / no net detriment tests) Inconsistent with the record containing uncontested substantial evidence on adequate potential new resources and acknowledgment of the status of PNM's competitive bid process The determination for further prudency review was: Contrary to the ETA language authorizing recovery of defined undepreciated investments • • . Unresponsive to PNM's legal arguments on litigating prudence for investments already included in rates Contrary to the NMPRC Feb. 2021 order to decide prudence during the current case Unsupported by the case record's calling for evidence on this issue and inclusion of evidence and expert testimony on the issue • The decision was based on inadmissible hearsay evidence and information outside the evidentiary record Examples: written testimony of a witness that was not present for cross examination; public comment and letters to Commissioners that are not evidence; audit materials relating to a non-jurisdictional utility that had no proper foundation; investigative materials from a foreign jurisdiction with a presumption whereby the Commission presumed guilt; and an accusation of an attorney conflict of interest that this Court's Disciplinary Board rejected as unsubstantiated The determination of "public interest" was based on imposing arbitrary standards, improperly weighing benefits and risks, and ignoring the weight of the admissible evidence • Stipulation provided unprecedented benefits, weighed against perceived risks or fears (as opposed to real risks supported in the record) that were contrary to stipulated commitments The handling of matters concerning Avangrid's responses in the discovery process violates due process and was unsupported by the record. PNMResources 28

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