SCHEDULE I

PNM RESOURCES, INC.

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF EARNINGS



	Year ended December 31,
	2011			2010			2009
	(In thousands)
Operating Revenues	$	—		$	—		$	—
Operating Expenses	20,547			6,584			8,156
Operating income (loss)	(20,547		)	(6,584		)	(8,156		)
Other Income and Deductions:
Equity in earnings (loss) of subsidiaries	205,215			96,804			76,492
Equity in net earnings (loss) of Optim Energy	—			(15,223		)	(30,145		)
Impairment of equity investment in Optim Energy	—			(188,176		)	—
Other income	59			948			22,916
Other deductions	(34,124		)	(25,772		)	(26,850		)
Net other income (deductions)	171,150			(131,419		)	42,413
Income (Loss) Before Income Taxes	150,603			(138,003		)	34,257
Income Tax Expense (Benefit)	(25,756		)	(92,788		)	(19,258		)
Earnings (Loss) from Continuing Operations	176,359			(45,215		)	53,515
Earnings from Discontinued Operations, net of income taxes of $0, $0, and $36,687	—			—			70,801
Net Earnings (Loss)	$	176,359		$	(45,215	)	$	124,316

SCHEDULE I

PNM RESOURCES, INC.

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Cash Flows From Operating Activities:
Net earnings (loss)	$	176,359		$	(45,215	)	$	124,316
Adjustments to reconcile net earnings (loss) to net cash flows from operating activities:
Depreciation and amortization	7,654			6,767			4,893
Deferred income tax expense	(34,396		)	(73,067		)	(16,957		)
Equity in (earnings) loss of subsidiaries	(205,215		)	(96,804		)	(147,293		)
Equity in net (earnings) loss of Optim Energy	—			15,223			30,145
Impairment of equity investment in Optim Energy	—			188,176			—
Loss (Gain) on reacquired debt	9,209			—			(7,317		)
Stock based compensation expense	6,556			2,894			2,188
Changes in certain assets and liabilities:
Other current assets	42,687			15,171			8,391
Other assets	59,975			31			634
Accounts payable	(1		)	(157		)	(97		)
Accrued interest and taxes	27,348			141			(1,080		)
Other current liabilities	4,765			(8,955		)	1,387
Other liabilities	(12,854		)	18,236			(22,359		)
Net cash flows from operating activities	82,087			22,441			(23,149		)
Cash Flows From Investing Activities:
Investments in subsidiaries	(43,000		)	—			(86,253		)
Investments in Optim Energy	—			(20,279		)	—
Cash dividends from subsidiaries	285,757			47,940			347,012
Other, net	—			—			3
Net cash flows from investing activities	242,757			27,661			260,762
Cash Flows From Financing Activities:
Short-term borrowings (repayments), net	(15,300		)	(8,000		)	(114,667		)
Short-term borrowings (repayments) – affiliate, net	300			1,719			3,200
Repayment of long-term debt	(60,391		)	(2,125		)	(148,422		)
Purchase of preferred stock	(73,475		)	—			—
Purchase of common stock	(125,683		)	—			—
Issuance of common stock	—			—			1,245
Proceeds from stock option exercise	5,622			1,247			—
Purchases to satisfy awards of common stock	(10,104		)	(2,986		)	(951		)
Excess tax (shortfall) from stock-based payment arrangements	—			(580		)	(760		)
Dividends paid	(45,128		)	(45,726		)	(45,701		)
Other, net	(747		)	—			—
Net cash flows from financing activities	(324,906		)	(56,451		)	(306,056		)
Change in Cash and Cash Equivalents	(62		)	(6,349		)	(68,443		)
Cash and Cash Equivalents at Beginning of Period	303			6,652			75,095
Cash and Cash Equivalents at End of Period	$	241		$	303		$	6,652
Supplemental Cash Flow Disclosures:
Interest paid	$	19,215		$	19,078		$	32,092
Income taxes paid (refunded), net	$	5,454		$	(27,018	)	$	116,593

SCHEDULE I

PNM RESOURCES, INC.

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS



	December 31,
	2011			2010
	(In thousands)
Assets
Cash and cash equivalents	$	241		$	303
Intercompany receivables	76,982			80,666
Income taxes receivable	—			42,688
Total current assets	77,223			123,657
Property, plant and equipment, net of accumulated depreciation of $14,340 and $12,628	18,792			20,504
Long-term investments	7,439			12,012
Investment in subsidiaries	1,646,449			1,682,179
Other long-term assets	37,294			64,235
Total long-term assets	1,709,974			1,778,930
	$	1,787,197		$	1,902,587
Liabilities and Stockholders’ Equity
Short-term debt	$	16,700		$	32,000
Short-term debt-affiliate	8,819			8,519
Current maturities of long-term debt	2,387			2,252
Accrued interest and taxes	31,510			3,648
Other current liabilities	7,743			4,455
Total current liabilities	67,159			50,874
Long-term debt	145,123			197,510
Other long-term liabilities	930			17,461
Total liabilities	213,212			265,845
Convertible preferred stock (no stated value; 10,000,000 shares authorized; issued and outstanding none and 477,800 shares)	—			100,000
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 and 86,673,174 shares)	1,193,191			1,290,465
Accumulated other comprehensive income, net of tax	(66,856		)	(68,666		)
Retained earnings	447,650			314,943
Total common stockholders’ equity	1,573,985			1,536,742
	$	1,787,197		$	1,902,587

See Notes 6, 7, and 16 for information regarding commitments, contingencies, and maturities of long-term debt.