Public Service Company Of New Mexico · OTC:PNMXO
Public Service Company Of New Mexico — Technical Presentation (February 2026)
75 slides from Public Service Company Of New Mexico's technical presentation, Feb 11, 2026
Slide 1: 2026 PNM IRP Facilitated Stakeholder Workshop 3
2026 PNM IRP Facilitated Stakeholder Workshop 3 February 11, 2026
Slide 2: Load and Resources
Load and Resources February 11, 2026
Slide 3: Load and Resource Table (L&R)
Load and Resource Table (L&R) Shows the expected peak demand (load) to be served A load and resource table: Shows resources expected to serve the peak demand Margin of resources above peak demand This part of the workshop provides an overview of PNM’s load and resource positions over the next few ye
Slide 4: Accredited Capacity
Accredited Capacity ELCC – Effective • Utilized to calculate the capacity amount for a particular technology type Load Carrying • Values are dependent on the type and amount of existing Capability and planned resources. • All resources have an installed capacity (ICAP) • UCAP is value based on ELCCs
Slide 5: IRP Forecasts Used in Modeling
IRP Forecasts Used in Modeling Futures (discussed in more detail later in presentation) • CTP (Current Trends and Policies) – Reference Load Forecast • LEG (Low Economic Growth) • HEG (High Economic Growth) Statement of need is based on CTP SLIDE 5 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 6: Demand For CTP Forecast
Demand For CTP Forecast Description 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Forecasted System Peak Demand 2,273 2,502 2,726 2,997 3,077 3,127 3,180 3,213 3,270 3,314 Forecasted Incremental Energy Efficiency (16) (35) (53) (70) (95) (118) (140) (153) (170) (184) Forecasted Incremental Custo
Slide 7: PNM Resources by Technology
PNM Resources by Technology Description 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total Coal Resources (MW) 160 160 160 160 160 160 0 0 0 0 Total Nuclear Resources (MW) 282 282 282 282 282 282 282 282 282 282 Total Natural Gas Resources (MW) 966 966 977 1,314 1,314 1,354 1,354 1,354 1,354 1,
Slide 8: Overall Position Based on CTP Reserve Margin
Overall Position Based on CTP Reserve Margin Description 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Reserve Margin (MW) - Resources less Net Peak Demand 342 384 458 760 669 825 648 612 583 546 Reserve Margin (%) - based 15% 16% 17% 26% 23% 28% 22% 20% 19% 18% Targeted Reserve Margin (%) 16% 1
Slide 9: High and Low Economic Growth Forecast Margin
High and Low Economic Growth Forecast Margin High and Low Forecast Demand Comparison to CTP (MW) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Current Trends and Policies (MW) 2,250 2,448 2,641 2,882 2,924 2,936 2,952 2,988 3,018 3,038 Low Economic Growth (MW) 2,026 2,078 2,130 2,323 2,365 2,416
Slide 10: Carbon Emissions Progress
Carbon Emissions Progress SLIDE 10 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 11: Resource Position Outlook
Resource Position Outlook • Load Serving Adequacy • For LEG and CTP forecasts, capacity is adequate thorough 2035 • HEG forecast shows deficiencies in 2030 and beyond • Environmental Compliance • Renewable Portfolio Standard • Currently 40%, Increasing to 50% by 2030 • PNM portfolio was about 57% re
Slide 12: PNM's Demand and Energy Landscape
PNM’s Demand and Energy Landscape February 11, 2026
Slide 13: Demand Forecast (MW)
Demand Forecast (MW) SLIDE 13 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 14: Forecasts for IRP Analysis - Demand
Forecasts for IRP Analysis - Demand Annual Peak Demand by Future Prior to EE Adjustments (MW) 4,600 Legend ̶ (HEG) High Economic Growth HEG 4,400 4,200 ̶ (CTP) Current Trends and Policy ̶ (LEG) Low Economic Growth 4,000 3,800 CTP 3,600 3,400 3,200 3,000 LEG 2,800 2,600 2,400 2,200 2,000 2026 2028 20
Slide 15: Energy Forecast (MW)
Energy Forecast (MW) SLIDE 15 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 16: Forecasts for IRP Analysis - Energy
Forecasts for IRP Analysis - Energy Annual Energy by Future Prior to EE Adjustments (GWh) Legend 25,000 Legend ̶ (HEG) High Economic Growth 24,000 ̶ (HEG) High Economic Growth HEG ̶ (CTP) Current Trends and Policy 23,000 ̶ (CTP) Current Trends and Policy ̶ (LEG) Low Economic Growth 22,000 ̶ (LEG) Lo
Slide 17: Peak Day (July 2045)
Peak Day (July 2045) SLIDE 17 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 18: Questions
Questions SLIDE 18 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 19: 2026 IRP Modeling Framework
2026 IRP Modeling Framework February 11, 2026
Slide 20: 2026 IRP Timeline: Environmental Targets
2026 IRP Timeline Environmental Targets 400 200 lbs/MWh 50% 80% CO2 Free lbs/MWh CO2 RPS RPS by 2045 CO2 (begins 2023) 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Existing/New Resources Proposed Approved • 2026 IRP will be focused on resource R
Slide 21: 2026 IRP Analytical Approach
2026 IRP Analytical Approach Stakeholder Feedback throughout the FSP Define Data Modeling Analyze SON & Modeling MCEP Collection Results Results Action Plan Framework • Load Forecast • EnCompass • Expansion plans • Resource mixes • Best portfolio • Type & Timing of (Feb) (zonal & nodal) • Projected
Slide 22: 2026 IRP Analytical Approach Cont.
2026 IRP Analytical Approach Cont. Stakeholder Feedback throughout the FSP Stakeholder Feedback via IRP docket IRP File SON & Issue RFP for RFP Bid IRP is Filed Comments & Resource Action Plan Resources* Evaluation* Response Application* • Type & Timing • Sept 2026 (9 • Public • Draft RFP • Receive
Slide 23: 2026 IRP Analytical Approach – Futures & Sensitivities
2026 IRP Analytical Approach – Futures & Sensitivities Futures No Current Trends & Policy (CTP) High Economic Growth (HEG) Low Economic Growth (LEG) 1 None None None 2 High Electric Vehicles TOU TOU 3 TOU Extreme Economic Development ETA 400 thru 2044, Zero CO2 by 2045 4 Transmission Project - Rio S
Slide 24: 2026 IRP Analytical Approach – Modeling Run List (CTP)
2026 IRP Analytical Approach – Modeling Run List (CTP) Future Sensitivity Description Current Trends & Policy (CTP) None none Current Trends & Policy (CTP) High Electric Vehicles High EV Forecast impact to CTP Current Trends & Policy (CTP) TOU TOU Forecast Impact to CTP Current Trends & Policy (CTP)
Slide 25: 2026 IRP Analytical Approach – Modeling Run List (HEG/LEG)
2026 IRP Analytical Approach – Modeling Run List (HEG/LEG) Future Sensitivity Description High Economic Growth (HEG) None none Low Economic Growth (LEG) None none High Economic Growth (HEG) TOU TOU Forecast Impact to CTP High Economic Growth (HEG) Extreme Economic Development Increased level of Econ
Slide 26: 2026 IRP Analytical Approach – Detailed 1 of 4
2026 IRP Analytical Approach – Detailed 1 of 4 Modeling Parameters for CTP, HEG, LEG Futures • 20-year optimization window (2026-2045) • 16% Planning Reserve Margin (“PRM”) target • CO2 Emission Limits • 400 lbs/MWh (2026-2031), 200 lbs/MWh (2032-2044), 0 lbs/MWh (2045) • Renewable Portfolio Standar
Slide 27: 2026 IRP Analytical Approach – Detailed 2 of 4
2026 IRP Analytical Approach – Detailed 2 of 4 Current Trends & Policies High Economic Growth Low Economic Growth • Use CTP future load • High customer growth, EV, • Low customer growth, EV, forecast electrification and electrification and • Reference EV, BTM economic development economic development
Slide 28: 2026 IRP Analytical Approach – Detailed 3 of 4
2026 IRP Analytical Approach – Detailed 3 of 4 Current Trends & Policies High Economic Growth Low Economic Growth • All generic candidate resources • All generic candidate resources • All generic candidate resources available beginning 2033 available beginning 2029 available beginning 2033 except; e
Slide 29: 2026 IRP Analytical Approach – Detailed 4 of 4
2026 IRP Analytical Approach – Detailed 4 of 4 Perform Modeling Evaluate Portfolio Determine Best Determine Most Analysis Results Performing Cost-Effective • Futures & • Portfolio capacity Portfolios Portfolio (“MCEP”) Sensitivities and energy • Select low-cost • Identify portfolio • Stakeholder com
Slide 30: 2026 IRP Analytical Approach – Detailed 5 of X
2026 IRP Analytical Approach – Detailed 5 of X Stakeholder Feedback Stakeholder Feedback via FSP via IRP Docket If accepted & necessary Statement of Need Draft RFP Issue RFP (“SON”) Most Cost- Effective Portfolio If accepted & necessary (“MCEP”) Action Plan Actions to perform RFP Bid Evaluation (“AP
Slide 31: Questions
Questions SLIDE 31 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 32: Energy Efficiency Programs
Energy Efficiency Programs February 11, 2026
Slide 33: Modeling EE Potential Programs
Modeling EE Potential Programs 1. EE Potential Study* 2. Created Bundles 3. Develop hourly impacts Jan 27 Office Hour Mtg *Source: ICF, PNM Potential Study 2026-2045; October 2025 4. Model bundles in EnCompass Statutory Period Post-Statutory Period 2026-2030 2031-2045 Program Potential n/a Up to $50
Slide 34: Energy Efficiency Impact on the Load Forecast
Energy Efficiency Impact on the Load Forecast Current Program Potential: EE savings that can reasonably be achieved - includes existing or planned EE programs during the statutory period (2026–2030) Incremental Bundles: EE savings available beyond Program Potential - aggregated into selectable cost-
Slide 35: EE Programs and Bundles
EE Programs and Bundles Cost tiers based on the levelized cost of saved energy 2031-2045 EE Bundles EE Bundles EE Bundles ($75/MWh to (up to $75/MWh) $125/MWh) (over $125/MWh) What are the technologies/sectors that make How do we model them in Encompass? * up an incremental bundle? • Modeled as sele
Slide 36: Demand Response Programs
Demand Response Programs February 11, 2026
Slide 37: Modeling DR Potential Programs
Modeling DR Potential Programs 1. DR Potential Forecast* 2. Create – Potential Programs Jan 27 Office Hour Mtg *Source: ICF, PNM Potential Study 2026-2045; October 2025 3. Model Programs in EnCompass 2026-2029 2030-2045 Battery Energy Storage DLC Behavioral (AMI Dependent) Peak Saver Domestic Hot Wa
Slide 38: Behavioral
Behavioral Description: A program that deploys messages to customers to encourage minor adjustments in their residential energy use on peak energy days. Behavioral DR: Potential and Total Cost 5,000 1,200 Assumptions: 4,500 1,000 • Model as an EnCompass candidate resource 4,000 • Summer/Winter resou
Slide 39: Grid Interactive Water Heater
Grid Interactive Water Heater Description: A water heater equipped with communication and control technology that allows utilities to influence when the heater runs. Grid Interactive Water Hear DR: Potential and Total Cost Assumptions: 250 160 • Model as an EnCompass candidate resource • Summer/Wint
Slide 40: Peak Saver
Peak Saver Description: A demand response program for medium and large commercial and industrial customers. It provides load-curtailment during periods of high system demand. Peak Saver DR: Potential and Total Cost 35,000 8,000 Assumptions: • Model as an EnCompass candidate resource 30,000 7,000 • S
Slide 41: Power Saver
Power Saver Description: a direct load control (DLC) program for residential, small, and medium commercial customers. It controls air-conditioning equipment or connected thermostats to reduce demand during peak periods. Power Saver DR: Potential and Total Cost* 44,500 20,000 44,000 18,000 Assumption
Slide 42: Battery Energy Storage Direct Load Control (DLC)
Battery Energy Storage Direct Load Control (DLC) Description: A demand response program where internet-enabled home or commercial batteries receive utility dispatch signals to discharge or reduce charging during grid-stress events. Assumptions: • Model as an EnCompass candidate resource • Program ba
Slide 43: Domestic Hot Water Heater (DHW) DLC
Domestic Hot Water Heater (DHW) DLC Description: A program where the utility installs a DLC switch on a customer’s electric water heater, allowing it to temporarily interrupt heating during system peak periods. Assumptions: • Model as an EnCompass candidate resource • Program base: residential custo
Slide 44: Electric Vehicle (EV)-Direct Charge Management
Electric Vehicle (EV)-Direct Charge Management Description: A demand response program that utilities send signals directly to the charger to curtail or postpone charging during peak hours. Assumptions: • Model as an EnCompass candidate resource • PNM can adjust when charging happens • Program base:
Slide 45: Electric Vehicle Time-of-Day (TOD)
Electric Vehicle Time-of-Day (TOD) Description: Customers can shift EV charging from peak hours to lower-cost off-peak periods. Assumptions: • Model as a EnCompass candidate load modifier • Customers can adjust their EV charging from peak TOD to off-peak TOD • Program base: residential customers onl
Slide 46: Time-of-Day (TOD) Rate
Time-of-Day (TOD) Rate Description: A rate design where electricity prices are higher during a peak hours, encouraging customers to shift usage to lower-cost off-peak hours. Assumptions: • Model as a EnCompass candidate load modifier • Customers can change their consumption behaviors based on the TO
Slide 47: Questions
Questions SLIDE 47 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 48: Transmission Modeling
Transmission Modeling February 11, 2026
Slide 49: Locational Treatment
Locational Treatment Previous IRP’s - Zonal Capacity Expansion • Resources added at multiple locations with transmission cost adders • Assumed transmission was a significant restriction but congestion/curtailment costs not quantified • Resources with least cost locational adder always selected • Not
Slide 50: Why Nodal?
Why Nodal? Wholesale transmission utilization is Point-point not captured in zonal modeling and Network customers represents over half of PNM’s total transmission system utilization Legacy Curtailments Provides a means to assess resource Congested Paths portfolio additions while accounting for Conge
Slide 51: Information Needed from Zonal Capacity Expansion Run
Information Needed from Zonal Capacity Expansion Run Capacity Expansion Model Run Outputs Candidate Perform Encompass Zonal Capacity Portfolios Expansion Model Run on a Particular NPV Future and Sensitivity Other – Generation, Fuel Usage, Emissions, Other Candidate Resource Portfolio detail
Slide 52: Nodal Model Steps: Location Assignment
Nodal Model Steps: Location Assignment 1. Select specific locations on the NM transmission system to interconnect each technology identified in the portfolio Capacity Expansion Model Run Outputs 2. Add resources at the selected Candidate locations to the nodal model Portfolio database 3. Perform n
Slide 53: Nodal Model Outputs
Nodal Model Outputs Nodal Model Determine if a Outputs transmission Losses enhancement Resource is warranted Curtailment based on Congested Paths location. Congestion Costs Compare congestion costs and curtailments to annual transmission revenue requirement. Assumptions on location and tra
Slide 54: Resource Location
Resource Location • Albuquerque, San Juan/Four Corners, Belen and Los Lunas, Eastern Solar NM • Eastern NM (Torrance/Guadalupe) Wind • Union, Quay, Curry, Roosevelt will have higher transmission costs. • Potential locations will need to be determined Geothermal • Size is a factor, but optimal geothe
Slide 55: Developing Transmission Additions
Developing Transmission Additions • Develop Transmission System Modifications • Utilize 20-year transmission plan projects where applicable • Cost and Schedule • Capacity Benefits • Mostly 345 kV projects • Utilize recent interconnection studies or 440 filings to get per unit cost for 115 kV and bel
Slide 56: Transmission Sensitivities Included in Modeling
Sunzia Wind Collector System Rio Sol Interconnection Transmission Line • Provides Interconnection interconnection to CAISO. Transmission Sensitivities Included in Modeling Interconnection New Transmission To the Southwest Between Power Pool (SPP) Albuquerque and RTO the Four Corners area SLIDE 56 |
Slide 57: Transmission Project – Rio Sol Sensitivity
Transmission Project – Rio Sol Sensitivity • This project is modeling a new transmission line from PNM’s system in the Albuquerque metropolitan area to a proposed transmission line running from eastern NM to Arizona. o Schedule assumes 4-6 years for planning to construction. o Capital cost estimate:
Slide 58: Transmission Project – Sun Zia Sensitivity
Transmission Project – Sun Zia Sensitivity • This project is modeling a transmission line connecting PNM’s eastern NM system to the Sun Zia wind collector system in east central NM. o Schedule assumes 4-6 yeas for planning to construction. o Capital cost estimate: 219 M$ SLIDE 58 | February 11, 2026
Slide 59: Transmission Project – Blackwater DC Tie Sensitivity
Transmission Project – Blackwater DC Tie Sensitivity • This project is modeling a new transmission line that connects SPP to PNM’s system through a AC/DC/AC converter. o Schedule assumes 8–10 year for planning to construction. o Capital estimate: 1.5 B$ SLIDE 59 | February 11, 2026 PNM 2026 IRP Work
Slide 60: Transmission Project – Four Corners Sensitivity
Transmission Project – Four Corners Sensitivity • This project is modeling a new transmission line from Albuquerque to Four Corners. o Schedule assumes 8–10 year for planning to construction. o Capital cost estimate: 448 M$ SLIDE 60 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 61: Nodal Analysis – Transmission Expansion Cost Assumptions
Nodal Analysis – Transmission Expansion Cost Assumptions Sample of projects from 20-year Transmission Outlook or recent estimates. Transmission Project Construction Schedule Years Cost ($M) in 2026 Dollars Rio Puerco – Pajarito 345 kV Line 4–5 $ 92 Pajarito – Prosperity 345 kV Line 3.5 – 4.5 $ 116 R
Slide 62: Questions
Questions SLIDE 62 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 63: 2026 IRP Analytical Approach
2026 IRP Analytical Approach Define Data Modeling Analyze SON & Modeling MCEP Collection Results Results Action Plan Framework • Load Forecast • EnCompass • Expansion plans • Resource • Best portfolio • Type & Timing (Feb) (zonal & nodal) • Projected mixes • Balance cost, of Resources • Supply-side
Slide 64: Typical Modeling Results Reporting
Typical Modeling Results Reporting Example Example Example SLIDE 64 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 65: January 27 Office Hours
January 27 Office Hours th February 11, 2026
Slide 66: January Office Hours Topics
January Office Hours Topics GAS VOLATILITY STUDY THERMAL ELCC EE AND DR POTENTIAL STUDY • PRESENTATION AND DOCUMENTS AVAILABLE ON GRIDWORKS WEBSITE. • COMMENTS CAN BE PROVIDED TODAY IN CHAT IF NOT ALREADY PROVIDED. SLIDE 66 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 67: Sharing Modeling Information
Sharing Modeling Information February 11, 2026
Slide 68: Accessing IRP Modeling Data
Accessing IRP Modeling Data • PNM will provide access to modeling information on a Venue file sharing site. • A form was e-mailed by Gridworks that can be completed to request access. • The form should be completed and e-mailed to irp@pnm.com. If signing NDA, this will need to be scanned and include
Slide 69: Form and Available Information
Form and Available Information • Available Files: • Public Modeling Data • Resource information tables 2026 • Commodity price and load tables 2026 IRP • Modeling Framework and Assumptions 2026 IRP • Underlying data for generic resources • Confidential Modeling Data • EnCompass input database (Excel
Slide 70: Available Information
Available Information • Resource information tables 2026 IRP Workbook • Nuclear and coal – existing • Est. fuel costs - coal & nuc • Fixed O&M – existing • Natural gas – existing • Solar - own, existing • Solar & storage - PPA, existing • Geothermal, wind PPA – existing • New resources options data
Slide 71: Available Information (cont.)
Available Information (cont.) • Modeling Framework and Assumptions 2026 IRP Workbook • Modeling-Financial Assumptions • Futures • Sensitivity cases • ELCC (by Technology) • RPS Requirement • CO2 Emission Targets • Price Multiplier Table (Inflation) SLIDE 71 | February 11, 2026 PNM 2026 IRP Workshop
Slide 72: Available Information (cont.)
Available Information (cont.) • Commodity price and load tables 2026 IRP Workbook • Load - annual peak demand • Load - annual energy • Hydrogen pricing • Annual Market Energy Prices • Natural gas pricing • Carbon pricing SLIDE 72 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 73: Venue Demonstration
Venue Demonstration Time Permitting SLIDE 73 | February 11, 2026 PNM 2026 IRP Workshop 3
Slide 74: Wrap-Up
Wrap-Up February 11, 2026
Slide 75: SLIDE 75 | February 11, 2026 PNM 2026 IRP Workshop 3
SLIDE 75 | February 11, 2026 PNM 2026 IRP Workshop 3
Public Service Company of New Mexico — Technical Presentation (February 2026) on 6ix