PNM RESOURCES INC (Form: 8-K, Received: 06/11/2020 16:22:18)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM			8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)			June 11, 2020
			(June 11, 2020)

Name of Registrant, State of Incorporation, Address Of Principal Executive Offices, Telephone Number, Commission File No., IRS Employer Identification No.

PNM Resources, Inc.

(A New Mexico Corporation)

414 Silver Ave. SW

Albuquerque, New Mexico 87102-3289

Telephone Number - (505) 241-2700

Commission File No. - 001-32462

IRS Employer Identification No. - 85-0468296

Public Service Company of New Mexico

(A New Mexico Corporation)

414 Silver Ave. SW

Albuquerque, New Mexico 87102-3289

Telephone Number - (505) 241-2700

Commission File No. - 001-06986

IRS Employer Identification No. - 85-0019030

____________________________________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))

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Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Registrant	Title of each class	Trading Symbol(s)	Name of exchange on which registered
PNM Resources, Inc.	Common Stock, no par value	PNM	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

As previously reported, PNMR’s wholly owned subsidiary, Public Service Company of New Mexico (“PNM”) leases interests in Units 1 and 2 of the Palo Verde Nuclear Generating Station (“PVNGS”) under arrangements entered into in 1985 and 1986 that are accounted for as operating leases. There are currently five separate lease agreements with five different trusts whose beneficial owners are three different institutional investors. Four of those leases, which relate to interests in PVNGS Unit 1 (as amended, the “Unit 1 Leases”), have been extended so that they will expire on January 15, 2023, and one of those leases, which relates to interests in PVNGS Unit 2 (as amended, the “Unit 2 Lease” and together with the Unit 1 Leases, the “Leases”), has been extended so that it expires on January 15, 2024.

The terms of each of the Leases provide that no later than June 15, 2020 for the Unit 1 Leases and January 15, 2021 for the Unit 2 Lease, PNM must give notice to the lessor whether PNM will purchase the assets underlying each of the Leases or return the leased assets to the lessors on the expiration dates. The elections PNM makes under each of the Leases are irrevocable and independent of the elections made under the other Leases.

On June 11, 2020, in accordance with the notice provisions of the Leases, PNM notified each of the lessors of the Unit 1 Leases that it would return the leased assets under each of the Unit 1 Leases upon expiration of the extended Unit 1 Leases term on January 15, 2023. On June 11, 2020, in accordance with the notice provisions, PNM also notified the lessor of the Unit 2 Lease that it would return the leased assets under the Unit 2 Lease upon expiration of the extended Unit 2 Lease term on January 15, 2024.

A copy of the press release discussing the return of the assets leased under the Leases is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific references in such a filing.

Item 8.01 Other Events.

The first three paragraphs of Item 7.01 above are incorporated into this Item 8.01.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit Number			Description

99.1			Press Release, dated June 11, 2020 (furnished not filed)
104			Cover Page in Inline XBRL format

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.


			PNM RESOURCES, INC.
			PUBLIC SERVICE COMPANY OF NEW MEXICO

			(Registrants)


Date: June 11, 2020			/s/ Henry E. Monroy
			Henry E. Monroy
			Vice President and Corporate Controller
			(Officer duly authorized to sign this report)

Exhibit 99.1

For Immediate Release

June 11, 2020

PNM Exits Palo Verde Leases

Optimizing Carbon-Free Resources to Maximize Renewables and Reduce Customer Costs

(ALBUQUERQUE, N.M.) – PNM, the wholly owned New Mexico utility subsidiary of PNM Resources (NYSE: PNM), announced today that it will exit its leases for 114 megawatts of Palo Verde Nuclear Generating Station (Palo Verde) capacity. The replacement of this leased capacity allows PNM to integrate more renewable resources that provide the best value to customers and support the path to emissions-free energy by 2040.

“Today’s announcement demonstrates another way that we are optimizing PNM’s portfolio to deliver additional low-cost renewables to customers,” said Pat Vincent-Collawn, PNM Resources’ chairman, president and CEO. “The increase in renewables combined with ongoing nuclear ownership will maximize cost savings to customers and is essential to achieving our plans of emissions-free energy by 2040.”

Palo Verde produces reliable, carbon-free energy that continues to be an integral part of PNM’s resource portfolio. PNM’s continued ownership in Palo Verde (288 megawatts) provides carbon-free energy to meet customer needs every hour of every day. As part of the transformation of its generation portfolio, PNM is working to balance the appropriate level of baseload generation with additional low-cost renewables and flexible resources that align with intermittent customer usage. The expiration of these leases provided another opportunity to optimize this balance and deliver a low-cost, reliable system that maximizes the benefits to customers and the environment.

PNM plans to issue an RFP in order to replace the capacity from the leases by mid-2023. PNM will request approval for abandonment of the capacity and propose its recommended replacement plan based on the RFP results through a filing with the New Mexico Public Regulation Commission (NMPRC) in the first quarter of 2021.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2019 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,761 megawatts of generation capacity and provides electricity to approximately 790,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website at www.PNMResources.com.

CONTACTS:

Analysts Media

Lisa Goodman Ray Sandoval

(505) 241-2160 (505) 241-2782

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements made in this news release for PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”) and Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act

of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. The Company assumes no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, the Company cautions readers not to place undue reliance on these statements. The Company’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company’s Form 10-K, Form 10-Q filings and the information included in the Company’s Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.

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