SCHEDULE I

PNM RESOURCES, INC.

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF EARNINGS



	Year ended December 31,
	2015			2014			2013
	(In thousands)
Operating Revenues	$	—		$	—		$	—
Operating Expenses	1,221			650			941
Operating income (loss)	(1,221		)	(650		)	(941		)
Other Income and Deductions:
Equity in earnings of subsidiaries	27,352			124,543			116,634
Other income	747			622			769
Other deductions	(8,275		)	(13,650		)	(22,825		)
Net other income (deductions)	19,824			111,515			94,578
Earnings Before Income Taxes	18,603			110,865			93,637
Income Tax Expense (Benefit)	2,963			(5,389		)	(6,870		)
Net Earnings	$	15,640		$	116,254		$	100,507

SCHEDULE I

PNM RESOURCES, INC.

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Cash Flows From Operating Activities:
Net earnings	$	15,640		$	116,254		$	100,507
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	509			680			4,192
Deferred income tax expense	(79,526		)	(69,442		)	(51,820		)
Equity in (earnings) of subsidiaries	(27,352		)	(124,543		)	(116,634		)
Loss on reacquired debt	—			—			3,253
Stock based compensation expense	4,863			5,931			5,320
Changes in certain assets and liabilities:
Other current assets	7,664			22,955			28,460
Other assets	69,443			51,644			46,558
Accounts payable	370			(88		)	620
Accrued interest and taxes	4,823			(7,683		)	(9,266		)
Other current liabilities	—			(1,668		)	(146		)
Other liabilities	4,941			28,704			(27,756		)
Net cash flows from operating activities	1,375			22,744			(16,712		)
Cash Flows From Investing Activities:
Utility plant additions	368			(474		)	(960		)
Investments in subsidiaries	(175,000		)	—			(13,800		)
Cash dividends from subsidiaries	127,688			46,599			158,772
Net cash flows from investing activities	(46,944		)	46,125			144,012
Cash Flows From Financing Activities:
Short-term loan	50,000			—			—
Short-term borrowings (repayments), net	41,000			600			(37,600		)
Long-term borrowings	150,000			—			—
Repayment of long-term debt	(118,766		)	—			(29,468		)
Proceeds from stock option exercise	5,619			6,999			4,618
Purchases to satisfy awards of common stock	(17,720		)	(17,319		)	(13,807		)
Dividends paid	(63,723		)	(58,940		)	(50,980		)
Other, net	(782		)	81			—
Net cash flows from financing activities	45,628			(68,579		)	(127,237		)
Change in Cash and Cash Equivalents	59			290			63
Cash and Cash Equivalents at Beginning of Period	382			92			29
Cash and Cash Equivalents at End of Period	$	441		$	382		$	92
Supplemental Cash Flow Disclosures:
Interest paid, net of amounts capitalized	$	7,559		$	12,152		$	14,510
Income taxes paid (refunded), net	$	(730	)	$	(2,014	)	$	22,378

SCHEDULE I

PNM RESOURCES, INC.

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS



	December 31,
	2015			2014
	(In thousands)
Assets
Cash and cash equivalents	$	441		$	382
Intercompany receivables	102,676			107,619
Income taxes receivable	—			29
Other, net	524			548
Total current assets	103,641			108,578
Property, plant and equipment, net of accumulated depreciation of $11,276 and $10,251	26,707			27,076
Investment in subsidiaries	1,822,593			1,757,650
Other long-term assets	81,168			78,347
Total long-term assets	1,930,468			1,863,073
	$	2,034,109		$	1,971,651
Liabilities and Stockholders’ Equity
Short-term debt	$	191,600		$	100,600
Short-term debt-affiliate	8,819			8,819
Current maturities of long-term debt	—			118,607
Accrued interest and taxes	7,780			2,816
Other current liabilities	18,282			16,320
Total current liabilities	226,481			247,162
Long-term debt	149,860			—
Other long-term liabilities	2,955			2,943
Total liabilities	379,296			250,105
Common stock (no par value; 120,000,000 shares authorized; issued and outstanding 79,653,624 shares)	1,166,465			1,173,845
Accumulated other comprehensive income (loss), net of tax	(71,432		)	(61,755		)
Retained earnings	559,780			609,456
Total common stockholders’ equity	1,654,813			1,721,546
	$	2,034,109		$	1,971,651

See Notes 6, 7, 14, and 16 for information regarding commitments, contingencies, and maturities of long-term debt.

See Notes 6 and 11 regarding reclassifications of December 31, 2014 balances related to the adoption of new accounting standards during 2015.