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• TXNM Energy is like a regional Duke Energy or Southern Company, a regulated utility providing essential electricity services to homes and businesses in New Mexico and Texas.
• Think of TXNM Energy as the AT&T or Verizon of electricity for New Mexico and Texas, but instead of phone signals, they deliver power through a vast network of lines.
• TXNM Energy is similar to a scaled-down NextEra Energy, serving as a full-service utility that generates and distributes electricity, increasingly from renewable sources like solar and wind.

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• Electricity Generation: Producing electricity using a diverse portfolio of energy sources including coal, natural gas, oil, nuclear, solar, wind, geothermal, and battery storage.
• Electricity Transmission Services: Operating and maintaining the high-voltage grid that transports electricity over long distances to load centers.
• Electricity Distribution Services: Delivering electricity from the transmission grid to residential, commercial, and industrial end-users through local power lines.

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TXNM Energy (TXNM) serves primarily individuals and businesses directly as end-users of electricity. Its major customer categories are:

• Residential Customers: Individuals and households consuming electricity for domestic use.
• Commercial Customers: Businesses and organizations using electricity for commercial operations, such as offices, retail stores, and service industries.
• Industrial Customers: Large-scale manufacturing and industrial facilities requiring significant electricity for production processes.

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Don Tarry

President and CEO

Don Tarry became the President and CEO of TXNM Energy, Inc. effective July 1, 2025. He joined the company in 1996 and has held various leadership roles, including President and Chief Operating Officer, Senior Vice President and Chief Financial Officer, Vice President, Controller and Treasurer, and Vice President of Customer Service and Chief Information Officer. He holds a Bachelor of Accountancy from New Mexico State University, graduating with honors.

Henry E. Monroy

Senior Vice President and Chief Financial Officer

Henry E. Monroy was appointed Senior Vice President and Chief Financial Officer of TXNM Energy on May 20, 2025. He joined the company in 2003 and has served as Vice President of PNM Regulatory and Vice President and Corporate Controller (from 2020 to 2023), among other leadership positions in accounting and finance. He is a Certified Public Accountant in New Mexico and holds a bachelor's degree in accounting from New Mexico State University.

Patricia K. Collawn

Executive Chair

Patricia K. Collawn transitioned to Executive Chair of TXNM Energy's Board of Directors effective July 1, 2025, after serving as CEO. She joined the company in 2007 and has over 30 years of experience in the utility industry. Prior to TXNM Energy, she served as President and CEO of Public Service Company of Colorado, a subsidiary of Xcel Energy. She also held management positions with Price Waterhouse and Quaker Oats. She was the first female chairman of the Edison Electric Institute (EEI). She holds a bachelor's degree in journalism from Drake University and an MBA from Harvard Business School.

Brian Iverson

General Counsel, Senior Vice President Regulatory and Public Policy, and Corporate Secretary

Brian Iverson joined TXNM Energy in September 2024. He oversees the legal, regulatory, public policy, and supply chain teams. Before joining TXNM Energy, he spent 20 years at Black Hills Corporation, a publicly traded utility company, where he held various leadership roles, including Senior Vice President, General Counsel, and Chief Compliance Officer. He holds a Juris Doctor, an MBA, and a BSBA in Accounting from the University of South Dakota.

Monique Jacobson

Senior Vice President, Corporate Services

Monique Jacobson joined TXNM Energy in 2025 and oversees the Customer Experience, Human Resources, and Chief Information Officer functions. She has 25 years of experience across public and private sectors. Before joining TXNM Energy, she owned and operated two consulting companies and served as Cabinet Secretary for the New Mexico Tourism Department and the Children, Youth and Families Department.

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Key Risks to the Business:

1. Regulatory and Political Risks: As TXNM Energy, Inc. operates in a heavily regulated industry within New Mexico and Texas, changes in energy policy, rate regulation, environmental regulations, or political decisions can significantly impact its operations, financial performance, and ability to recover costs or make necessary investments. This includes risks related to rate case outcomes, environmental compliance expenditures, and governmental mandates for renewable energy integration.
2. Transition to Clean Energy and Associated Costs: While TXNM Energy utilizes renewable sources, its generation portfolio still includes coal, natural gas, oil, and nuclear fuel. The increasing pressure for decarbonization, stricter environmental regulations, and the eventual retirement of fossil fuel plants will necessitate substantial capital expenditures for new renewable energy infrastructure and may result in stranded asset costs for existing non-renewable generation assets. This transition presents significant investment and execution challenges.
3. Commodity Price Volatility: The company's reliance on coal, natural gas, and oil for electricity generation exposes it to significant fluctuations in the market prices of these commodities. Such volatility can directly impact the cost of fuel for electricity generation, thereby affecting operational expenses and overall profitability, particularly if these costs cannot be fully recovered through regulated rates or existing contracts.

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The clear emerging threat for TXNM Energy is the increasing adoption of decentralized energy generation and storage solutions by its customers. As the cost of rooftop solar panels and battery storage continues to decline, residential, commercial, and industrial customers may increasingly choose to generate a significant portion of their own electricity and reduce their reliance on the utility's grid for energy supply. This trend poses a threat to TXNM Energy's Public Service Company of New Mexico (PNM) segment, which generates electricity, by reducing demand for its traditionally generated power. While the Texas-New Mexico Power Company (TNMP) segment primarily provides regulated transmission and distribution services, widespread customer self-generation can also lead to decreased electricity sales across the system and challenges for utilities to recover fixed grid costs from a potentially shrinking or less reliant customer base.

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TXNM Energy (symbol: TXNM) anticipates several key drivers to fuel its revenue growth over the next two to three years:

1. Significant Capital Investments and Corresponding Rate Base Growth: TXNM Energy plans substantial capital expenditures, with a forecast of $7.8 billion in investments from 2025 through 2029. This is expected to translate into a 12% rate base growth through 2029 from its 2025 base. These investments include projects like the System Resiliency Plan for its Texas-New Mexico Power Company (TNMP) segment, with $546 million planned through 2027, and TNMP's share of ERCOT's Permian Basin Reliability Study projects, estimated at approximately $750 million by 2030. Public Service Company of New Mexico (PNM) also has approved grid modernization investments totaling $344 million, with $291 million expected through 2028. TNMP is projected to be a particularly strong contributor to rate base growth, with an anticipated increase of over 14% annually through 2027.
2. Robust Customer and Load Growth, Particularly in Texas from Data Centers: The company is experiencing strong demand-based load growth, especially in its Texas service territory. TNMP has continued to set new system peak records, with an 18% increase over the 2023 peak recorded in December. A significant portion of this growth is attributed to data centers in the north and West Texas regions, which accounted for over 600 megawatts of demand on TNMP's system by the end of 2024. Furthermore, interconnection requests were up 6% compared to the previous year, signaling continued growth expectations, particularly in the Gulf Coast area. Overall retail load growth across both the PNM and TNMP utilities is expected to contribute to earnings.
3. Timely Recovery of Capital Investments Through Regulatory Mechanisms and Rate Adjustments: TXNM Energy is focused on maximizing its authorized returns on investments and minimizing regulatory lag. In New Mexico, a stipulation for PNM's 2025 Rate Request was recommended for approval, which includes a $105.0 million increase to revenue requirements based on a 9.45% return on equity. This rate increase is scheduled to be implemented in two phases: 50% effective July 1, 2025, and the remaining portion on April 1, 2026. For TNMP in Texas, the company utilizes Transmission Cost of Service (TCOS) and Distribution Cost Recovery Factor (DCRF) mechanisms to allow for more timely recovery of costs between rate reviews. TNMP also filed a general rate proceeding with the Public Utility Commission of Texas in November 2025.
4. Strategic Investments in Clean Energy Transition and New Generation Resources: The company is committed to investing in infrastructure that supports the transition to clean energy and meets customer needs. PNM is planning for new energy resources, including a proposed $220 million capital investment by 2028 that encompasses the extension of a power purchase agreement, the addition of 300 MW of battery storage capacity, and the installation of a 130 MW solar and battery storage facility. TXNM Energy forecasts a need for at least 500 megawatts of new capacity by 2030 and is focused on improving transmission capabilities to deliver clean energy and enhance grid resilience.

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Capital Allocation Decisions (2021-2025)

Share Issuance

• TXNM Energy completed its 2024 equity needs of approximately $100 million through an at-the-market (ATM) program.
• In 2024, the company issued $500 million of 5.75% junior subordinated convertible notes due 2054.
• Blackstone Infrastructure is investing $400 million through the purchase of 8 million newly issued shares of TXNM Energy common stock at $50 per share, via a private placement agreement, expected to close in June 2025.

Inbound Investments

• A proposed $4.3 billion acquisition of PNM Resources by Avangrid (a subsidiary of Iberdrola) was terminated in January 2024, following a protracted legal and regulatory dispute.
• In May 2025, TXNM Energy announced an agreement for Blackstone Infrastructure to acquire the company for $61.25 per share in cash, reflecting a total enterprise value of $11.5 billion, including net debt and preferred stock. This transaction is progressing, having received approvals from the Federal Energy Regulatory Commission and the Public Utility Commission of Texas.

Capital Expenditures

• TXNM Energy has a 5-year capital investment plan (2025-2029) of $7.8 billion, representing a 26% increase over its previous plan and projecting a 12% rate base growth through 2029. Earlier in 2024, the capital expenditure outlook was $6.1 billion, primarily focused on Texas investments.
• The primary focus of capital expenditures includes investments in utility-owned battery storage, grid modernization, and expanding the transmission grid to deliver clean energy, enhance customer satisfaction, and increase grid resilience.
• TNMP's 2025-2027 System Resiliency Plan, approved in March 2025, involves a $545.8 million investment over three years to enhance the safety and reliability of its distribution system, including wildfire mitigation and enhanced operations technology.