PUBLIC SERVICE CO OF NEW MEXICO

Electric utilities are subject to stringent laws and regulations for protection of the environment by local, state, federal, and tribal authorities. In addition, PVNGS is subject to the jurisdiction of the NRC, which has the authority to issue permits and licenses and to regulate nuclear facilities in order to protect the health and safety of the public from radioactive hazards and to conduct environmental reviews. The liabilities under these laws and regulations can be material. In some instances, liabilities may be imposed without regard to fault, or may be imposed for past acts, whether or not such acts were lawful at the time they occurred. See MD&A – Other Issues Facing the Company – Climate Change Issues for information on GHG. In addition, Note 16 contains information related to the following matters, incorporated in this item by reference:

•PVNGS Decommissioning Funding

•Nuclear Spent Fuel and Waste Disposal

•The Energy Transition Act

•Environmental Matters under the caption “The Clean Air Act”

•Cooling Water Intake Structures

•Effluent Limitation Guidelines

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•Santa Fe Generating Station

•Environmental Matters under the caption “Coal Combustion Residuals Waste Disposal”