Good day and welcome to the PNM Resources First Quarter 2022 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lisa Goodman, Director of Investor Relations. Please go ahead.

Thank you, Vaishnavi and thank you everyone for joining us this morning for the PNM Resources first quarter 2022 earnings call. Please note that the presentation for this conference call and other supporting documents are available on our website at pnmresources.com. Joining me today are PNM Resources’ Chairman, President and CEO, Pat Vincent-Collawn and Don Tarry, our Senior Vice President and Chief Financial Officer. Before I turn the call over to Pat, I need to remind you that some of the information provided this morning should be considered forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995. We caution you that all of the forward-looking statements are based upon current expectations and estimates, and the PNM Resources assumes no obligation to update this information. For a detailed discussion of factors affecting PNM Resources results, please refer to our current and future annual reports on Form 10-K, quarterly reports on Form 10-Q as well as reports on Form 8-K filed with the SEC. With that, I will turn the call over to Pat.

Thank you, Lisa. Good morning, everyone. Before we get started, I would like everyone to join me in congratulating the newly promoted Lisa Goodman, our new Executive Director of Investor Relations and Shareholder Services. Congratulations, Lisa. It’s a surprise for her, too. So thank you all for joining us today on National Super Hero Day. We have all heard the phrase that not all heroes wear capes, and around here that holds true for everyone in our offices and in the field who are holding strong to our values and doing the right thing for our customers and communities. Our successes are the result of each team member contributing to our strategy and goals, and I thank the team here at PNM Resources for making this a reality. On a wider note, it is also national Great Poetry Reading Day. So I have taken a stab at writing a haiku to summarize today’s call. So here we go. Numbers looking good, steadfast and exiting coal, merger continues. Okay. So it is definitely not great poetry, and it’s certainly not what Japan haiku master poets had in mind. So I will promise you to stick with my day job. I’m going to start on Slide 4 with our financial results and company update. Ongoing earnings increased during the first quarter compared to last year coming in at $0.50. We are affirming our guidance for both 2022 and 2023 as we continue focusing on executing our business plans and delivering results. Don will cover the financials in more detail. Before I move into our regulatory update at PNM and TNMP, let me quickly touch on our proposed merger. Earlier this month, we filed our Brief-in-Chief with the New Mexico Supreme Court that makes our arguments on the items previously laid out in…

Thank you, Pat and good morning. I am going to pick up on Slide 8 with year-over-year results for the first quarter, where we saw an increase in each of our segments. PNM and TNMP each increased $0.08 over the first quarter of 2021. At PNM, the increase was largely driven by transmission margins. We continue to see higher network demand and new customers, including the Western Spirit contract that began in December of 2021. At TNMP, recovery of investments through our TCOS and DCOS rate mechanism was the primary driver. In both utility segments, we saw load growth and colder temperatures also contributed to increases and offset came from higher depreciation and property tax expense associated with new investments. At corporate, the refinancing of debt at a lower rate in May of last year provided year-over-year savings for the first quarter. These results are ahead of our expectations for the first quarter and provide a strong start to the year. I will talk about guidance for the full year in a moment. First, let’s turn to Slide 9, and I will show what we are seeing in terms of load growth across our service territories. At PNM, growth in our industrial class is driving our increase, consistent with our assumptions and guidance. This is a result of continued economic development efforts in the state to attract new customers. Some of this growth is coming in a little slower than we expected as customers are experiencing a slower ramp up, although we still expect these load increases to materialize. Remember that these customers have the lowest rate per kilowatt hour and the slower ramp-up has a small impact on our financials. New Mexico continues to invest in economic development and we continue to see benefits with announcements of companies moving…

Thank you, Don. That wasn’t much in terms of poetry, but I will say, it did have its own flare. Vaishnavi, let’s open it up for questions, please.

[Operator Instructions] The first question comes from Paul Fremont with Mizuho. Please go ahead.

Thank you very much. I guess my first question relates to the show cause and the argument for possible refunds. If the commission were to order either refunds for one unit or both units of San Juan, are you able to sort of quantify the impact of that on your income statement for this year?

Good morning Paul, I was kind of hoping you have a haiku for us.

No. Sorry about that. Even though I work for a Japanese bank, not my strength.

Alright. I will turn it over to Don for that call. Thanks.

Good morning Paul. I wouldn’t want to get in front of or speculate what the commission might do. We did file testimony in that case, April 20th. So you could defer to the different questions that the interveners and others asked in that case. I will reiterate what Pat talked about a few minutes ago. We feel like we have a strong legal argument under the ETA and the financing order. And even under a protocol that the commission follows, which is called thesis of rate making. So, again, don’t want to get ahead of any kind of commission decision or the hearings, which will happen in May 22nd, 23rd timeframe.

Great. And then on the timing of your merger with Avangrid, any thoughts on what the timeframe would be for you to potentially consummate the transaction?

So, Paul, we have talked about it. The Supreme Court doesn’t have any statutory time frame on the case. There are – as we have also discussed, there are ways for the commission to ask us to bring the case back. And those would not happen, I don’t think, until next year. So, it will be some time in the beginning of first half of next year.

So, the case was – your interpretation is, the case was not closed with the final NMPRC order in the merger proceeding.

Yes, Paul, that’s exactly right. Moving into the Supreme Court allowed the record to stay in place, and so currently, the record is in place in front of the Supreme Court. So, the case has not been closed.

The record in the stipulation.

Got it.

And Avangrid is still continue to come out. We just support the community in big ways. We just kind of been where the key corporate sponsors of the United States Hispanic Chamber of Commerce first ever energy summit, we had a big Earth Day event. So, we are continuing on with their plans to actually to be able to kind of reintroduce Avangrid into the community now that we have moved. As Dr. Pasi said, we have moved past the pandemic stage into the endemic stage.

And then maybe last question for me. There was supposed to be an initial meeting of the committee to sort of select the new commissioners by July of this year. Is – can you give us any update as to where things stand on the selection process? And when you would think that the candidates would be selected for the committee?

Yes. Paul, the committee actually gets organized in the July, August timeframe. I think kind of the process that you would look at is likely from there. I think by the end of September, early October, they would provide a list of minimum five potential commissioners to the Governor. And then before the end of the year, the Governor would make an announcement of which three she selected.

And Paul, the primary elections here in early June and there is not much of a focus on anything here until the primaries get done. A lot of folks are facing primary challenges, so they are working to get through that.

Great. Thank you very much.

Thank you, Paul.

Thank you, Paul.

This concludes the question-and-answer session. I would like to turn the conference back over to Pat Vincent-Collawn, our CEO, for any closing remarks.

Thank you again for joining us this morning and again, my congratulations to Lisa Goodman. We have really enjoyed seeing some of these face-to-face over the last few months, and we will continue to do so. Please be sure to celebrate the superheroes in your life, and you might want to take some time to enjoy some real poetry tonight. Stay safe, everyone.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.