Public Service Company Of New Mexico · OTC:PNMXO
Public Service Company Of New Mexico — Technical Presentation (January 2026)
40 slides from Public Service Company Of New Mexico's technical presentation, Jan 14, 2026
Slide 1: 2026 PNM IRP Facilitated Stakeholder Workshop 2
2026 PNM IRP Facilitated Stakeholder Workshop 2 January 14, 2026
Slide 2: Introduction
Introduction Morning Afternoon Workstations IRP Explained Overview of PNM Resource Mix Planning Requirements PNM’s Demand and Energy Landscape - Evolving Rapidly PNM Modeling Tools Preliminary Modeling Framework Addressing Stakeholder Comments from previous IRP SLIDE 2 | January 14, 2026 PNM 2026 IR
Slide 3: What is an IRP?
What is an IRP? January 14, 2026
Slide 4: Integrated Resource Plan and why it is needed
Integrated Resource Plan and why it is needed • IRP • A plan that defines the most cost-effective portfolio over a 20-year period (2026-2045) • Accommodate load growth and regulatory requirements • Stakeholder process is required by the IRP rule to allow Stakeholder input on: • The development of a
Slide 5: IRP Key Components & Goals
IRP Key Components & Goals • Considers a wide range of options: traditional power plants, renewables (solar, wind, Comprehensive Analysis: geothermal), energy storage, energy efficiency, demand response, and new technologies like transportation electrification management. Reliability & Cost: • Ensur
Slide 6: Key Considerations
Key Considerations Demand and Energy Resource Assessment: Risk Analysis: Integration with other Forecasting: system expansion Predicting future energy needs based Evaluating different technologies to Modeling various scenarios, such as Working toward an integrated system on population growth, econom
Slide 7: Key Objectives
Key Objectives Ensuring there is always enough power Reliability: to meet demand, even during peak usage or system failures. Identifying the most cost-effective path Affordability: for ratepayers to keep electricity bills stable. Meeting government environmental Environmental/Sustainability: mandate
Slide 8: PNM's Resource Mix
PNM’s Resource Mix January 14, 2026
Slide 9: PNM's Current Resource Mix
PNM’s Current Resource Mix SLIDE 9 | January 14, 2026 PNM 2026 IRP Workshop 2
Slide 10: Assessment of Existing Assets in PNM Portfolio
Assessment of Existing Assets in PNM Portfolio Reeves Generating Station Four Corners Power Plant The 2029-2032 RFP evaluation addresses a The 2029-2032 RFP evaluation is likely extension of the Reeves Generating also assessing replacement Station. resources for PNM's planned exit from Four Corners
Slide 11: Pending Activities
Pending Activities 2029-2032 RFP Filing - Q1 2026 Filing • Replacement of PNM’s Four Corners share • Reeves evaluation for replacement or extension • Forecast load growth 345 kV Transmission Line CCN Filing • Transmission upgrade improves grid reliability, delivery of resources and load-serving capa
Slide 12: Affordability-Cost Drivers
Affordability-Cost Drivers Supply chain shortages • Initially Covid related • Ban on foreign power equipment - particularly solar panels. • Unprecedented load growth Tariff Increases on Imports •Impacts are not easily quantified Tax Credits •Loss of tax credits for wind and solar Solar needs more pa
Slide 13: PNM Planning Requirements
PNM Planning Requirements January 14, 2026
Slide 14: IRP Rules and Regulations
IRP Rules and Regulations Legislation NMPRC Rules New Mexico Public Utility Act Integrated Resource Plan for [62-3-1 et. seq. NMSA] Electric Utilities Efficient Use of Energy Act [17.7.3 NMAC] [62-17 NMSA] Renewable Energy for Electric Energy Transition Act Utilities [17.9.572 NMAC] [62-18 NMSA] Ene
Slide 15: IRP Rules and Regulations Cont.
IRP Rules and Regulations Cont. • Additional Rules • Power Purchase Agreements (“PPA”) [17.9.551 NMAC] • Certificate of Public Convenience and Necessity (“CCN”) Cost Overrun [17.3.580 NMAC] • CO2 Emissions Measurement and Compliance [17.9.561 NMAC] • Community Solar [17.9.573 NMAC] • Expanding Trans
Slide 16: Consideration of Reliability in Planning
Consideration of Reliability in Planning What is grid Reliability? Grid reliability is being able to provide the electric grid with adequate, secure and stable flow of electricity as consumers need it. Two Main Components of Reliability • Reliability planning Resource Adequacy Ensuring sufficient re
Slide 17: NERC Planning, Design and Operational Standards
NERC Planning, Design and Operational Standards Standards for maintaining system frequency Grid Operating and balancing generation with load in real time, Standards which are critical for grid stability and interconnection reliability Inverter Based Standards of performance for inverter-based resour
Slide 18: PNM's Demand and Energy Landscape
PNM’s Demand and Energy Landscape January 14, 2026
Slide 19: Economic Development Project Pipeline (2025)
Economic Development Project Pipeline (2025) Average Incremental Potential load In ED Pipeline: ~5,300 MW across all industries, with PNM-assigned probabilities from 1% to 100% (100% = signed service contract or precursor). Data Centers: ~50% of projects and ~85% of potential load. Project size: 1–1
Slide 20: Economic Development Legislation Drivers
Economic Development Legislation Drivers National State & Local One Big Beautiful Bill Act (OBBBA) (2025): NMEDD Strategic Initiative (2025-2026) : Tax Incentives Strategic Development Executive Order 14318 (2025): N.M. Incentives: Regulatory Incentives High-wage Jobs Tax Credit Local Economic Devel
Slide 21: IRP Net Peak Comparison
IRP Net Peak Comparison SLIDE 21 | January 14, 2026 PNM 2026 IRP Workshop 2
Slide 22: IRP Net Energy Comparison
IRP Net Energy Comparison SLIDE 22 | January 14, 2026 PNM 2026 IRP Workshop 2
Slide 23: PNM Modeling Tools
PNM Modeling Tools January 14, 2026
Slide 24: Modeling Tools
Modeling Tools SLIDE 24 | January 14, 2026 PNM 2026 IRP Workshop 2
Slide 25: Modeling Tools Cont.
Modeling Tools Cont. Optimize long-term resource portfolio Assess system resource adequacy Simulates system operating costs Can define planning targets for reliability Integrated transmission system capability (nodal) Quantifies capacity value for resources SLIDE 25 | January 14, 2026 PNM 2026 IRP W
Slide 26: Modeling Tool Interaction
Modeling Tool Interaction Determine Reserve 0 Margin and Accredited Capacity SERVM EnCompass 1 Capacity Expansion EnCompass EnCompass Detailed Nodal Adjust portfolio 2a Simulation 2b Production Cost if necessary Adjust portfolio if not 3 Validate Reliability achieving reliability SERVM SLIDE 26 | Ja
Slide 27: 2026 IRP Modeling Framework
2026 IRP Modeling Framework January 14, 2026
Slide 28: 2026 IRP Analytical Approach
2026 IRP ANALYTICAL APPROACH Future Scenario Sensitivity A combination of Explores a specific set of Varying a single element forecasts and choices to evaluate to within a given future to projections creating a determine best path understand impacts (vary planning landscape (vary forward (vary sever
Slide 29: 2026 IRP Analytical Approach - Futures
2026 IRP ANALYTICAL APPROACH - FUTURES Assumption Current Trends and Policy High Economic Growth Low Economic Growth Load Forecast Reference High Low BTM Solar Forecast Reference Low High EV Adoption Forecast Reference High Low Building Electrification Forecast Reference High Low Economic Developmen
Slide 30: 2026 IRP Analytical Approach - Scenarios
2026 IRP ANALYTICAL APPROACH - SCENARIOS 2023 IRP 2026 IRP 2026 IRP New Capital Cost Year Resource Options ($/kW) Available Battery Storage (long duration) $2,400/kW 2029 Battery Storage (short duration) $1,700/kW 2029 Compressed Air Energy Storage $4,000/kW 2035 Natural Gas $1,900-$2,500/kW 2030/31
Slide 31: 2026 IRP Analytical Approach - Sensitivities
2026 IRP Analytical Approach - 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 CTP HEG LEG 3 NG Volatility Extreme Economic Development ETA 400 thru 2044 4 TOU Transmission - Rio Sol No ETA
Slide 32: Addressing 2023 IRP Stakeholder Comments
Addressing 2023 IRP Stakeholder Comments January 14, 2026
Slide 33: 2023 IRP Stakeholder Feedback/Comments
2023 IRP Stakeholder Feedback/Comments IRP Process (5) Information requested to better understand topics in IRP FP process IRP Report (3) Information requested that is best addressed in the IRP report PNM agreed to adopt 23 By topic comments (these require specific (4 previously adopted) action) Mod
Slide 34: 2023 IRP Feedback/Comments – IRP Process
2023 IRP Feedback/Comments – IRP Process Topic Comment/Feedback PNM's Response PNM's Task/Activity Provide a better understanding of how TOU rates Provide clarity in reviewing Demand Side IRP Process implementation/customers’ electricity usage Agree options in 2026 IRP stakeholder meetings and behav
Slide 35: 2023 IRP Feedback/Comments – IRP Report
2023 IRP Feedback/Comments – IRP Report PNM's Topic Comment/Feedback PNM's Task/Activity Response PNM will provide clearer information on how tax Clearly articulate how federal rebates and tax credits IRP Report Agree rebates and credits affect the cost of resources in its reduce costs of different
Slide 36: 2023 IRP Feedback/Comments - Modeling
2023 IRP Feedback/Comments - Modeling PNM's Topic Comment/Feedback PNM's Task/Activity Response PNM will hold a special workshop early in the Modeling Include a detailed study of gas price volatility Agree 2026 IRP facilitated process on several topics where stakeholders indicated interest in having
Slide 37: 2023 IRP Feedback/Comments - Transmission
2023 IRP Feedback/Comments - Transmission Topic Comment/Feedback PNM's Response PNM's Task/Activity PNM agrees to include details of neighboring utility Provide detailed information regarding regional plans for transmission expansion that include Transmission Agree transmission planning, opportuniti
Slide 38: Wrap-Up
Wrap-Up January 14, 2026
Slide 39: Utility challenges and opportunities
Utility challenges and opportunities Resilient Extreme Events Design Customer Transmission Economic Transmission Costs Congestion Development Expansion Challenges Opportunities Pace of Regional Unprecedente Emergent Bridge Markets and d Demand Technology Solutions Storage Development Aging Grid Infr
Slide 40: SLIDE 40 | January 14, 2026 PNM 2026 IRP Workshop 2
SLIDE 40 | January 14, 2026 PNM 2026 IRP Workshop 2
Public Service Company of New Mexico (PNM) — Technical Presentation (January 2026) on 6ix