INSIDEEl Paso Electric 1President’s Message 2New Mexico Gas Co. 3PNM 4Tucson Electric Power 5PRC Candidate Profile 6-9Arizona Public Service 10 Executive’s Letter 12

CirCulation7000

SECONDQUARTER 2018

Your Vote Matters!Three Public Regulation Commission seats are up for election this year. One of those

seats will be determined in the primary election with no general election challenge.PRC candidate information inside – Please vote June 5, 2018

Save the Date – Annual Meeting October 18, 2018Your membership is important to us!

If you haven’t renewed for 2018, please do so today. (Form on p. 11)

On Tuesday, April 24, 2018, El Paso Electric (EPE) filed for approval for a new Community Solar Program in New Mexico with the New Mexico Public Regulatory Commission (NMPRC). Under the proposed program, EPE’s New Mexico customers will have the opportunity to subscribe, on a voluntary basis, to solar generation from a new 2 megawatt (MW) solar facility to be constructed, owned and operated by EPE located near the intersection of highway I-10 and I-25, in Doña Ana County.

As part of the filing, EPE is reserving solar capacity for a low-income customer option. A low-income customer charge to be made available to qualifying customers will offer a 10 percent discount on the Community Solar capacity charge. To qualify, EPE has proposed to determine a customer’s eligibility based on Federal Poverty, Guidelines, which is the same criteria used for EPE’s low-income energy efficiency program. A total of 200 kW have been set aside for this rate.

“We’ve been very happy with the success of the Community Solar Program in Texas, and

we look forward to bringing this program to our New Mexico customers,” said Mary Kipp, President and CEO of El Paso Electric. “Community Solar is a way to give our customers another option for investment in renewable energy, and by proposing a low income solution, access to renewable energy is now truly available to all residents and businesses in New Mexico.”

The program is available to all New Mexico

El Paso Electric Files for Community Solar Program in

New MexicoLow-income option to be offered to

New Mexico customers

El Paso Electric Community Solar Facility

Continued on page 11

The PRC was created 22 years ago by voters in the 1996 election through a constitutional amendment and just barely passed, 51 percent to 49 percent. It merged two regulatory bodies that had difficult, troubled histories – the State Corporation Commission and the Public Utility Commission.

One of the predecessors of the PRC --- the State Corporation Commission (SCC) -- the three commissioners were elected in state- wide elections. In the other predecessor, the Public Utility Commission (PUC), the three commissioners were appointed by the Governor with the advice and consent of the Senate. The current PRC is made of 5 members-- which took over the duties of both the SCC and the PUC-- are elected one each from five separate districts. Qualification requirements for all SCC commissioners and PUC commissioner were minimal, and like its predecessors, PRC Commissioners were originally required to have no special qualifications for serving. That changed with legislation passed in 2013, which implemented a constitutional amendment that voters approved in 2012. Now anyone seeking to become a PRC Commissioner will be required to have either ten years of professional experience in an area regulated by the PRC or ten years of combined relevant education and professional experience. The 2013 law also requires that all commissioners have ethics training and take 32 hours a year of continuing education. The commission is responsible for the regulation of public utilities, transportation companies, transmission and pipeline companies, insurance companies and other public companies.Commissioners are elected to staggered four-year terms beginning January 1 following their election. The commission currently includes the following members: • District 1: Cynthia Hall (D)• District 2: Patrick Lyons (R)• District 3: Valerie Espinoza (D)• District 4: Lynda Lovejoy (D)• District 5: Sandy Jones (D - PRC Commission Chair)

New Mexico’s Primary Election date is scheduled for June 5, 2018. The following candidates have met requirements to be put on the primary election ballot:

District 2 Current Commissioner Patrick Lyons is unable to run because of term limits.Democrat: Kevin Sanders Republican: Jefferson Byrd District 5 Jerry Partin Democrats: Sandy Jones– Incumbent PRC Commission Chair District 4 Steve FischmannDemocrat: Lynda Lovejoy - Incumbent Republican: Ben L. Hall Theresa Becenti-Aguilar Joseph Bizzell Janene Yazzie Chris MathysRepublican: No Republican candidate filed for election. Be sure and vote in the Primary Election on June 5, 2018.

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BOARD OF DIRECTORS

Officers:Sonia Phillips, President Ed Borchardt, SecretaryDan Lyon, J.D., Treasurer

Directors:Dr. Lenton MalryBill Hagler

Carla J. SonntagExecutive Director

From the President...2

New Mexico Utility Shareholders Alliance | Second Quarter 2018 3

It’s a Wrap for NMGC’s Pipeline Project south of Taos

The work lasted longer than anticipated, but New Mexico Gas Company has completed a $14 million pipeline project in the Rio Grande Gorge. Natural gas began flowing March 15th through the new 12-inch Taos Mainline which delivers to customers in Taos, Questa, Red River and surrounding communities. Pipeline installation was completed in late February and New Mexico Highway 68 between Pilar and Rinconada was fully reopened. It was commissioned after integrity testing confirmed the pipeline was sound. “This was a complex project in a challenging location and I want to commend our contractor and company employees for their commitment to safety,” said Tom Bullard, NMGC’s Vice President of Engineering, Gas Management, & Technical Services. “It is a source of great pride for me that we completed the work with no injuries.”The project initially was slated for completion by the end of November, but crews were challenged with more rock in the highway right-of-way than had been anticipated in addition to the narrow roadway. One side of Highway 68 sits just above the Rio Grande and the other side is only a few feet from a cliff face. That didn’t leave much room for excavators, dump trucks and other heavy equipment.Crews continued work into late spring on minor jobs associated with the project, such as landscaping and other cleanup work. Over the summer, workers will remove the old Taos Mainline in locations where it sits above ground. The

pipeline that is underground will be abandoned in place.The original Taos Mainline was installed on the west side of the Rio Grande between Rinconada and Pilar. Because of shifting soils, NMGC engineers decided to move the pipeline to the east side of the river on the highway shoulder. Three landslide areas were impacting the 8-inch pipeline, which was installed in 1964. Until now, strain gauges were used to monitor the pipeline, which needed periodic readjustments to ensure that natural gas is safely delivered to 16,000 customers in Taos County.“By relocating the pipeline, we are promoting greater service reliability for customers in north-central New Mexico,” NMGC President Ryan Shell said. “And by installing a larger pipeline, we can better position Taos and other communities in the area for future growth.”Careful planning was conducted to ensure no service interruptions during construction. This included the temporary use of trucks hauling Liquified Natural Gas (LNG) to feed the pipeline during the hours needed to connect the new system.Many studies were conducted in the proposed corridors, including assessments of impacts to birds, viewsheds and archaeological and cultural artifacts, as well as the potential biological and human impacts.The environmental team worked to protect archeological sites in the canyon, including ancient Native American petroglyphs and similar markings left on volcanic stones by Spanish colonial explorers.“It required a comprehensive effort by several departments to prepare and execute the project,” Shell said. “We are proud that we demonstrated our ability to tackle a complex engineering problem while simultaneously engaging a diverse array of stakeholder groups.”

New Mexico Gas Company is the largest natural gas utility in the state, serving 520,000 customers and operating in 23 of New Mexico’s 33 counties. After a series of ownership changes since 2009, NMGC is now an affiliate of Emera, Inc.

In July 2016, the Canada-based energy and services firm completed a $10.6 billion acquisition of New Mexico Gas Company. The deal made Emera into one of North America’s 20 largest utility companies.

Workers examine their job site near Rinconada, N.M., shortly after completing the final weld on March 15, 2018, to link the old 8-inch Taos Mainline to a new 12-inch pipeline.

New Mexico Utility Shareholders Alliance | Second Quarter 20184

PNM Looking to the Future

On April 27, PNM Resources released the company’s 2018 first quarter earnings results. While overall earnings were down slightly from last year at this time, the results were anticipated, and the company is on track to have a good year.

2018 First Quarter Review2018 is off to a good start for the company in many ways, despite a few challenges. PNM set an all-time high for overall customer satisfaction, according to the latest JD Power Electric Utility Residential Survey. The survey indicates the score is a result of improved customer service and performance across the company. Work has also begun to repair the San Juan Generating Station’s Unit 1 coal silo, which collapsed in March. No employees were injured in the incident, but Unit 1 has been off-line since it happened to make repairs and take care of some planned maintenance that was originally scheduled for later this year. Unit 1 is expected to come back on line in time for the summer peak demand period. All costs for repairs will be covered by insurance or absorbed into existing operations and maintenance budgets.

RegulatoryIn the first quarter, PNM took steps to continue to expand the use of renewable energy. PNM filed two purchase power agreements (PPAs) with the PRC for authorization to partner with two companies to provide additional wind and solar energy for the Facebook data center expansion. The New Mexico Public Regulation Commission (PRC) acted quickly to approve the plan, meaning an additional 266 MW of renewable energy will be added to the PNM portfolio. Because of this construction, as well as construction of new wind farms in eastern New Mexico for Xcel Energy, The American Wind Energy Association has lauded New Mexico for having the highest wind power growth in the entire country. The agreement will also pave the way for PNM to increase its transmission capacity, which will in turn, help boost the state’s economy by attracting other industries that are looking to increase their reliance on cleaner energy.

In March, the New Mexico Supreme Court issued a ruling rejecting New Energy Economy’s appeal of the PRC order regarding the retirement of two units at San Juan

Generating Station The Court ruled unanimously that there was ample evidence to support the approval of the settlement in the PNM filing and also determined that the decision was reached in a public and transparent process.

As you know, PNM went before the PRC last year with a proposal to replace existing electricity meters with state of the art smart meters. After many months of testimony, the hearing examiner found that the proposal as written did not provide sufficient customer benefit and recommended this spring that the Commission reject the proposal. The Commission accepted the recommendation, but in doing so, required PNM to submit a new proposal as part of its next Energy Efficiency Plan application in 2020.

Community One of the core missions of PNM, beyond providing safe, reliable, and affordable energy, is community service. This spring, the city of Albuquerque recognized PNM for its outstanding community service and volunteer efforts, naming the PNM Community Crew the city’s Corporate Volunteer Group of the Year. Overall in 2017, PNM and TNMP employee donated approximately 10,000 hours to more than 500 projects or events that support nonprofit agencies in their communities.

Looking AheadAs the year progresses, PNM’s parent company, PNM Resources, will be focused on filing a new rate case for its other subsidiary, Texas New Mexico Power, in May. PNM will be rolling out new initiatives to enhance the customer experience. These programs will be prioritized into key areas such as billing and payment, new service offerings, online interaction and employee engagement, and are designed to help PNM continue to build value for customers and shareholders alike.

PNM Resources (NYSE:PNM) is an energy holding company based in Albuquerque, New Mexico. For information about PNM and PNM Resources, visit www.pnmresources.com.

New Mexico Utility Shareholders Alliance | Second Quarter 2018 5

Tucson Electric Power Ranks Among Nation’s Top Utilities for

Expanding Energy Storage

Tucson Electric Power (TEP) has developed energy storage systems at a scale that ranks among the utility industry’s leaders, according to a report released in April by the Smart Electric Power Alliance (SEPA).

TEP was ranked second in the nation for per-capita additions to its energy storage resources in 2017 with 50 watts per customer. SEPA also ranked TEP third in the nation for new energy storage capacity for adding 21 megawatts (MW) of battery storage systems to its local electric grid.

“Energy storage systems are among the technologies we’re using to build a stronger, cleaner and more reliable electric system for our customers,” said David G. Hutchens, TEP’s President and Chief Executive Officer. “We will need both storage and advanced, flexible generating systems to maintain reliable service as we expand our use of renewable resources.”

Energy storage systems can boost power output levels quickly to help maintain the required balance between energy demand and supply. They also can be used to store the output of wind and solar power systems for use during periods of high demand, adding versatility but also cost to renewable resources.

TEP added two 10-MW battery systems last year:

• A lithium nickel-manganese-cobalt storage system at a TEP substation in midtown Tucson, built by a subsidiary of NextEra Energy Resources

• A 10-MW lithium titanate oxide storage facility linked to a 2-MW solar array at the University of Arizona Tech Park southeast of Tucson, built by E.ON Climate & Renewables

Both systems are now helping to maintain reliable service for customers during periods of high energy demand by supporting stable voltage on TEP’s local distribution grid.

TEP also is participating in a research and development project with Chicago-based IHI, Inc. Energy Storage (IHI), which completed a 1-MW lithium ion energy storage system at the site of TEP’s Prairie Fire Solar Array, a 5-MW system located southeast of Tucson. The IHI system is charged with energy generated by TEP’s solar array.

Additionally, TEP also announced plans for a new 30-MW battery storage system that will be paired with a 100-MW solar array. Both systems are scheduled to come online by 2019.

TEP is working to deliver at least 30 percent of its power from renewable resources by 2030, doubling Arizona’s 2025 goal. TEP anticipates adding an additional 800 MW of new renewable capacity, boosting its total renewable energy portfolio to approximately 1,200 MW. Nearly 13 percent of TEP’s power came from renewables last year, well above the state’s 7 percent requirement for 2017.

TEP provides safe, reliable electric service to approximately 424,000 customers in Southern Arizona. For more information, visit tep.com. TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc., which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit tep.com.

TEP Prarie Fire Solar Array Storage

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New Mexico Utility Shareholders Alliance | Second Quarter 201866

2018 Public Regulation Commission Candidate SurveyThe candidates for Public Regulation Commission Districts 2, 4 and 5 answers to questions that NMUSA considers important in fulfilling the requirements of their job.

Lynda Lovejoy, Incumbent, Democrat, District 4

Specific qualifications: Served nearly 12 years as PRC Commissioner; 6 years in NM State Senate, 10 years in State House and 20+ years in various management capacities. Associate of Arts – Elementary Education, Bachelor of Science – Public Administration and 22 credit hours towards an MBA. I have functioned in judicial, legislative, advocacy and administrative management capacities over the course of nearly 30 years.

Top priorities: Continue incorporating more renewables into the resource mix while ensuring such incorporations are economical and affordable to consumers. Continue to ensure that utilities maintain system reliability. Continue engagement in public policy discussions and examination of issues related to utility regulation with a view to enhance consumer benefits at state and federal levels.

PRC Commissioner Role: Use my knowledge and experience to bring about common sense solutions by ensuring fair and balanced decisions on

utility cases. Maintain system reliability, consumer protection and utility recovery of costs as a priority. Ensure reliable and affordable home energy services are maintained.

Return on Equity: This would be determined on a case-by-case basis providing that the utility can recover prudently incurred costs to provide adequate, efficient and reliable service to customers. Both regulators and utilities need to continually examine rate design and structure to keep pace with changing technologies.

Improving the working relationship with 1) PRC staff: Improve communication and reliable information exchange, more engagement on both sides is needed. Maintain professionalism on both sides, avoiding any behavior which leads to distrust.

2) PRC Attorneys: The PRC is now advertising to hire a permanent General Counsel which will improve case management and communication overall.

Position on electricity productions from: Coal: New Mexico is transitioning away from coal to renewable sources through established energy targets. It will be in use for a few more years while continuing to provide much needed jobs in the Four Corners area. Nuclear: Nuclear power is a clean source of energy that can be produced at any time. If the price is right, it will continue to benefit the state. Natural Gas: Natural gas prices have become very affordable and lessen the risks of future environmental regulation. It is also an important source of jobs in San Juan County. Wind: Use of wind energy reduces emissions and is a substantial benefit to the public interest. Wind power is on the increase in New Mexico as it enhances important environmental values for consumers. Solar: This is another source of energy that provides substantial benefit to the public interest and enhances environmental values for consumers. Geothermal: The PRC recently approved a utility case that involves use of geothermal energy projects that will also serve as an important environmental benefit to consumers.

New Mexico Utility Shareholders Alliance | Second Quarter 2018 7

Sandy Jones, Incumbent, PRC Chair, Democrat, District 5

Specific qualifications: 30 years small business owner Sandy Jones Construction, Sierra County Flood Control Director, Sierra County Director of Planning and Construction.

Top priorities: 1. To expand on my broadband initiatives and advocate for more

funding for broadband expansion in rural New Mexico.2. To continue to encourage global renewable energy companies,

like Facebook, to do business in New Mexico. Facebook just announced a $1 billion expansion, which translates to thousands of construction jobs and $1 million dollars a month in gross

receipts to Los Lunas.3. Fight for the firefighters and ensure they get their full funding

allotment that the legislature took away when they swept funds for the budget.

4. Continue to approve large-scale renewable energy projects in New Mexico. 5. Revisit my proposal for an independent ethics review committee.

Return on Equity: I think a fair return should be between nine and fourteen percent based on the risks associated with the utility’s position. Along with the utility’s obligation to serve all customers in its certificated territory, the utility is entitled to receive a fair return on equity. It is important that utilities maintain a healthy debt to equity ratio. A utility’s strong financial position is a key component to providing safe and reliable service. The regulatory model should not change: safe, reliable and affordable.

Improving the working relationship with 1) PRC staff and 2) Attorneys: The current structure at the commission is workable. The challenge is staffing level. Those challenges include attracting and retaining employees. Due to competition in wages with private industry and surrounding states, NMPRC budgets have not allowed the agency to grow with the increase in demand of a rapidly changing market and public policy.

Position on electricity productions from: Coal: The healthiest position a utility can be in is a diverse mix of generation to provide for pricing stability and reliability. Public policy and tax incentives are driving the construction of more renewable energy. Market prices, cheaper renewables, and public policy are driving the closing of coal-fired plants across the nation, as well as in New Mexico. Unless there is some drastic public policy change, most coal-fired plants will soon close. We face a challenge to replace coal-fired in our energy mix. There are many people whose livelihood depends on the coal industry. We must address the economic impact that shutting down the coal industry will have on the workers and communities in the Four Corners and provide resources that will help them adapt to our changing energy economy. Nuclear: New Mexico utilities depend on nuclear as a part of the base-load generation and that commitment needs to remain in place due to the reduction of coal-fired generation. Natural Gas: Natural gas generation can provide base load and peak load and is the only logical back-up source for the renewable energies. Wind: In today’s market, wind is the cheapest renewable energy resource available. Solar: Solar pricing continues to fall and New Mexico certainly is in a good position to expand solar in both the regulated and unregulated markets. Biomass: Biomass has had a hard time competing in the marketplace. There has been one biomass project in my knowledge in New Mexico. Geothermal: We approved a $40 million upgrade to a geothermal energy plant in Hidalgo County to boost output to 10 megawatts, up from four. Unfortunately, New Energy Economy has appealed this decision and other renewable energy projects in the Supreme Court which has jeopardized these projects and PNM’s ability to achieve its RPS requirement.

New Mexico Utility Shareholders Alliance | Second Quarter 20188

Join NMUSA TODAY!If you aren’t a member or haven’t paid dues recently, we hope you’ll join us! Dues are voluntary but help us attend regulatory and legislative meetings to advocate the interests of utility shareholders. Your contribution also helps fund this newsletter, our web site (www.nmusa.org) and membership meetings.

Steve Fischmann, Democrat, District 5

Specific qualifications: Co-founder of Southwest Energy Alliance, Served on Senate Conservation Committee, have intervened or provided analytical support for intervenors on rate cases and IRP’s Chaired Legislative Science and Tech interim committee. MBA from UCLA in Finance & marketing. 20 years of management experience as a Finance, operations and general manager dealing with Transportation and Telecom issues.

Top priorities: Leveling the playing field for consumers. Updating PRC staff expertise in 21st century renewable and storage technologies. Rulemaking that improves transparency from utilities, and shifts the regulatory emphasis from procedural issues to moving forward.

Return on Equity: I have no pat answer. That depends on interest rates, inflation, market conditions, amount of risk regulators ask utilities to assume, and many other factors.

Improving the working relationship with 1) PRC staff: Advocacy staff requires independence, but must have up to date skills particularly in 21st century technologies. Commissioners must create an environment that values up to date expertise, and respects staff input.2) PRC Attorneys: Advocacy staff attorney expertise on fair and due process requires more respect from commissioners.

Position on electricity productions from: Coal: It is a dying industry. The only question is how to treat parties fairly as we transition away. Nuclear: Existing technologies are proving too expensive to build new and uncompetitive in restructured markets. It needs monitoring for potential phase out over a period of time. Need to stay open to new fuel reprocessing technologies. Natural Gas: Price volatility of fuel a long term concern. Cost effectiveness being challenged by wind and solar plus storage. WIND: An economical growth resource, especially with advances in energy storage and grid management. Reduced carbon pollution is a big benefit. Solar: Same as wind. Biomass: Desirable where cost effective. Geothermal: Desirable where cost effective.

New Mexico Utility Shareholders Alliance | Second Quarter 2018 9

The following candidates did not reply to our request for information by the deadline:

District 2: Kevin Sanders, Democrat District 5: Joseph Bizzell Jefferson Byrd, Republican Ben Hall, Republican Jerry Partin, Republican

District 4: Theresa Becenti-Aguilar, Democrat Janene Yazzie, Democrat

Chris Mathys, Republican, District 5

Specific qualifications: United States Army, Conservative Republican member of the Fresno City Council, National Rifle Association, New Mexico Right to Life Committee, Knights of Columbus. MBA, University of the Southwest, Hobbs, New Mexico, Bachelor’s Degree in Political Science, Fresno State.

Top priorities: As a businessman, I understand the need for excellent customer service. I realize that the money government spends comes from hard-working taxpayers. I will bring strong, Conservative leadership as your Commissioner. I will fight the environmentalists, progressives and RINOs from leading us to more expensive and unreliable sources of power.

Return on Equity: No response.

Improving the working relationship with 1) PRC staff: Cooperation and respect toward all parties;2) PRC Attorneys: Cooperation and respect toward all parties.

Position on electricity productions from: Coal: good source of power. Nuclear: good source of power. Natural Gas: good source of power. WIND: No response. Solar: effective if commitments are kept in place and reimbursements are fair and equitable. Biomass: No response. Geothermal: No response.

Obama Energy Official Wants Democrats to Support Trump Appointee

According to a May 16th edition of Axios, Amos Hochstein, a former top energy official in President Obama's State Department, is urging Senate Democrats to support the nomination of President Trump's nominee for the same post. Why it matters: Bipartisanship is nearly extinct in Washington, particularly when it comes to Trump's appointees. This support, conveyed in a letter sent to all Senate Democrats May 9 and viewed by Axios, is a sign that energy as a geopolitical issue is less polarizing than most others, even others in the same arena like climate change and coal.

New Mexico Utility Shareholders Alliance | Second Quarter 201810

PALO VERDE CAMPAIGN ADDRESSES NUCLEAR INDUSTRY HEADWINDS

Political posturing is putting pressure on Arizona utilities to increase the percentage of their energy mix that comes from renewable sources, which could force the closure of baseload plants, including Palo Verde Generating Station.

An out-of-state group primarily funded by California billionaire Tom Steyer has filed a ballot initiative to amend Arizona’s State Constitution to require select Arizona investor-owned utility companies to obtain 50 percent of their energy from renewable sources by 2030, less than 12 years from now.

Along with other negative impacts, including doubling electricity costs for the average customer of APS, the state’s largest energy company, and a $15 billion cost to Arizona taxpayers by 2030, this proposed initiative could force the closure of the Palo Verde Generating Station, the nation’s largest source of clean, carbon-free energy, costing 3,000 Arizona families their jobs.

Palo Verde Generating Station generates enough electricity to meet the needs of more than 4 million people in the American Southwest. The nuclear power plant is owned by seven participants located in four different states that have diverse political, market and social environments – Arizona, New Mexico, California and Texas. While each owner has differing ownership percentage, they have equal shares in decision-making. Therefore, the political, market and social forces in any owner territory have the potential to affect Palo Verde’s long-term operation.

On top of the political forces in Arizona and the southwest, the United States nuclear industry already is facing headwinds of low growth in electricity demand, low natural gas prices, state and federal policies to promote renewables, transmission constraints, unfavorable public perceptions and more.

To reinforce Palo Verde’s importance to the entire southwest, the plant is stepping up efforts to solidify public and policymaker support.

One year ago, Palo Verde launched a rebranding campaign, aimed at elevating the station’s image as a national clean-air energy leader. This year, in phase two of the campaign, Palo Verde is working hard to ensure long-term policy support for nuclear energy in states where Palo Verde supplies electricity, including New Mexico.

In addition to meeting with policymakers and other community leaders, the effort features an outdoor and print advertising campaign, “Generation for Generations”; sponsorship of the Albuquerque Isotopes minor league baseball team; sponsorship of National Nuclear Science Week, including ads in the Albuquerque airport; and an updated Palo Verde educational display at the Smithsonian-affiliated National Museum of Nuclear Science and History.

Now more than ever, the U.S. nuclear faces challenges, and it’s vital that thought leaders and policymakers in the Southwest view nuclear – and Palo Verde, in particular – as a critical part of a clean energy mix.

APS serves about 2.7 million people in 11 of Arizona’s 15 counties, and is the Southwest’s foremost producer of clean, safe and reliable electricity. Using a balanced energy mix that is nearly 50 percent carbon-free, APS has one of the country’s cleanest energy portfolios, including both Palo Verde Generating Station and renewable energy. The company is also a proven leader in introducing technology and services that offer customers choice and control over their energy consumption. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp.

Sample artwork from Palo Verde’s Generation for Generations campaign.

customers - homeowners, renters and business owners without distributed generation; and the subscription is portable anywhere within EPE’s New Mexico service territory. Customers are able to subscribe to solar generation in 1 kW blocks and will pay a fixed rate of $18.55 per kW for this capacity, with solar and fuel credits offsetting the price. Low income customers would pay $16.52 per kW for the capacity, reflecting the proposed 10 percent discount. There is no penalty for leaving the program, and the rate is fixed as long as customers remain in the program.

About El Paso Electric’s Texas Community Solar Program

The Texas Community Solar 3 MW facility, located in Far East El Paso, TX, began operating in June of last year. The

pilot program was fully subscribed in just one month since the opening of subscriptions in mid-March of 2017, with about 1,500 customers enrolled, and several hundred Texas customers on the waiting list. In March of this year, EPE filed to expand the Texas Community Solar Program from a 2 MW facility, and the petition is currently undergoing the approval process with EPE’s Texas regulators.

El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 418,900 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico.

New Mexico Utility Shareholders Alliance | Second Quarter 2018

If you aren’t a member or would like to renew your dues for 2018, please complete and return this form today! Dues are voluntary but help us attend regulatory and legislative meetings to advocate the interests of utility shareholders. Your contribution also helps fund this newsletter, our website (www.nmusa.org) and membership meetings.

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Mail to: NMUSA, P.O. Box 95735, Albuquerque, NM 87199Email: carla@nmusa.org TEL: (505) 836-4223 FAX: (505) 836-4522

I OWN SHARES OF STOCK IN: (Ownership required. Please check all that apply). El Paso Electric Pinnacle West (Arizona Public Service) PNM Resources Other ______________

Emera, Inc. (New Mexico Gas Co.) Fortis, Inc. (Tucson Electric Power) Xcel Energy (Southwestern Public

Service)

El Paso Electric continued from Cover

We hope you find the Shareholder News useful and informative. We work hard to provide current information on gas and electric companies operating in New Mexico and to keep you informed of important issues that may require your attention. This issue has important candidate information for the upcoming NM Public Regulation Commission (NMPRC) races. We were disappointed that many candidates did not respond by the deadline for this issue. We understand, however, they are very busy with their campaigns.

The NMPRC is one of the most important government agencies in New Mexico. The Commission operates autonomously with little direct oversight. In fact, they answer to the Legislative body for funding, but decisions can only be challenged by filing a case with the New Mexico Supreme Court. Because the NMPRC is a Constitutional body, it would take a vote of the people to make substantive changes to its structure. That’s why voting for Commissioners to represent your interests is so important.

Here are the major consumer issues regulated by the NMPRC’s five commissioners:

Utilities: Natural gas, propane, investor owned water and sewer, public utilities and electric co-ops; Transportation: ambulances, limos, taxis, towing, and intrastate motor vehicle registrations; Telecom; Pipeline Safety; and the State Fire Marshall.

Commissioner seats are staggered for election so that not all five are up for election at the same time. This year, there are three open races. One seat is being vacated by Pat Lyons who has served the limited two terms and two seats with incumbent Commissioners, Sandy Jones and Lynda Lovejoy, who are being challenged while they seek re-election.

We encourage you to learn about the candidates and VOTE on JUNE 5, 2018!

My best,

From the Executive Director...Carla J. Sonntag

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PAIDPermit 1893Albuq. NM

P.O. Box 95735 Albuquerque, NM 87199