Hearing Examiner Modified Regulatory Commitments

STIPULATED REGULATORY COMMITMENTS

1. Rate Benefits. Joint Applicants1 commit to provide a total of $73 million in rate benefits, deployed in the following manner:
   o $67$50million in rate credits to PNM's customers over a three-year period following the closing of the Proposed Transaction. The rate credits shall be allocated to PNM's customers on a per customer basis.
   o $10$6million for residential customer arrearages forgiveness within 90 days from closing of the Proposed Transaction. The Joint Applicants shall file their plan for apportioning the arrearage relief with the Commission for its approval.
   o $2 million in funds for assisting in providing electricity to new customers in remote areas (as described in Section 11 below); and
   o $15 million for low-income energy efficiency (as described in Section 8 below). o PNM will not file a new general rate case before December 1, 2022, to allow for a
   transition period under the merger terms and recovery from COVID-19 impact on consumers.
2. Economic Development. Joint Applicants make the following commitments regarding economic development:
   o Joint Applicants will create or bring an additional 150 full-time jobs in total to New Mexico over the three-year period following the closing of the Proposed Transaction. At least 130 of the full-timejobs shall be created or brought to New Mexico by the Joint Applicants (other than PNM). At least 100 of the 130 full-time

• Public Service Company of New Mexico ("PNM"), PNM Resources, Inc. ("PNMR"), NM Green Holdings, Inc., Avangrid Networks, Inc. ("Networks"), and Avangrid, Inc. ("Avangrid") are collectively referred to as Joint Applicants.

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jobs shall be created within the Albuquerque-BernalilloCounty metropolitan area.and would not include costs of any of thethose jobs in rates without New Mexico Regulation Commission ("NMPRC" or the "Commission") review and approval.The 150 new jobs will remain for no less than five years thereafter. Joint Applicants commit to file an annual compliance report in this merger proceeding showing the number of full-time jobs created or brought to New Mexico, identifying the employer, job title, annualsalary, location (city or county), date of hire, any period of time during which the job was vacant, adescription of benefits and whether the job is performed remotely or in an office location. No more than 20 of these jobs will be at PNM. PNM will create at least 20 new full-timejobs for electric servicecraftsmen. Joint Applicants will target 20 of these jobs to be electric service business unit craftsmen at PNM, andPNMwill prioritize hiring personnel that have been or will be displaced as a result of San Juan Generating Station closure for those positions. PNM shall not include costs of any of the thosejobs in rates without New Mexico Regulation Commission ("NMPRC" or the "Commission") review and approval. If the Joint Applicants fail to create 150 new full-timejobs in New Mexico within three years after the closing of the Proposed Transaction, they shall pay $80,000 per job shortfall to the PNM Good Neighbor Fund (at shareholder expense). A job shortfall shall exist if the job was not created or if it has remained vacant for more than six months. To count toward the 150 job requirement, a job must be created as an employee of Avangrid, Inc or its affiliated interests and the wages must average at least $88,000 per year.

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1. Joint Applicants commit that they will make contributions to economic development projects or programs in New Mexico, at shareholder expense, totaling $15$7.5million over the fivethreeyears following the closing of the Proposed Transaction. The Joint Applicants commit that these economic development funds will not be used for fossil fuel use or related projects. The $15$7.5million commitment to promote economic development in New Mexico will be disbursed through an independent fund ("Fund") to which shareholders will contribute $3$2.5million per year for a period of 53years. The Fund will be administered independent of Joint Applicants. The funds shall be disbursed through a competitive grant program, and the grants shall be disbursed only to nonprofits proposing economic development projects or

conducting economic development programs in areas served by PNM.

1. Additionally, within 90 days of closing of the Proposed Transaction, Joint Applicants will allocate at shareholder expense $2.5 million each year for five years following closing, for a total of $12.5 million, for the benefit of impacted indigenous community groups in the Four Corners region, as designated by intervening Community Groups. This amount is not related in any way to, and will not impact, the amounts required to be transferred to the energy transition funds pursuant to NMSA 1978, Section 62-18-16(J) in relation to the abandonment of any coal-fired generation facility in New Mexico. The Joint Applicants commit to engage in periodic meetings, at least twice annually, with impacted community stakeholders in the Four Corners region, with the NMPRC Utility Division Staff ("Staff"),and the Office of the Attorney General for the State of New Mexico ("NM

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AG") to discuss community interests regarding Joint Applicants operations and renewable energy and storage development in the Four Corners region.

1. The New Mexico Energy Transition Act ("ETA") requires that 3.35% of the amount securitized from the closure of the San Juan Generating Station be provided to an "energy transition displaced worker assistance fund" run by NM Workforce Solutions. Joint Applicants commit to work with PNM to ensure that this program provides the maximum possible employment opportunities for displaced workers, and will look for opportunities to improve that program. Joint Applicants commit to provide progress reports on the effectiveness of the program each six months following execution of this Stipulation to Staff,the NM AG and other stakeholders that are signatories to this Stipulation until three years following closing of the

Proposed Transaction. The Joint Applicants shall file the progress reports with the Commission.

1. The Joint Applicants shall make a $1 million contribution to create a supplemental scholarship program dedicated to science, technology, engineering and math education in the Albuquerque/Bernalillo County metropolitan area and a $1 million contribution to create or enhance apprenticeships in local high schools and colleges. With respect to the scholarship program, the Joint Applicants shall contribute the $1 million over a two-year period following the closing of the Proposed Transaction. This contribution shall be in addition to any existing contributions committed to by the Joint Applicants and shall not be recoverable in rates. With respect to the $1 million to create or enhance apprenticeships for technical and professional positions for students in local high schools and colleges, the Joint

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Applicants shall use commercially reasonable efforts to ensure that such programs are made available to high schools in an equitable manner. The contribution shall be in addition to any existing contributions committed to by the Joint Applicants and shall not be recoverable in rates.

1. 1. PNM will provide local government entities access to PNM-owned wooden streetlighting poles within 1/2 mile of public schools and government-owned or authorized low-income facilities for the purpose of enabling the installation by the governmental entity of equipment to provide wireless internet access to students and residents of such facilities. Access will be provided pursuant to written agreements identifying the streetlighting poles eligible for attachments and on PNM's standard pole attachment or other applicable terms and conditions, except that annual pole rental fees will not be charged for a period of 3 years from November 1, 2021. All standard charges under PNM's streetlighting rates and tariffs, and for make-ready and other PNM services associated with such access will apply].
2. Albuquerque Streetlighting. Joint Applicants agree to work with the City of Albuquerque to provide park streetlighting. Joint Applicants agree that if there is any failure with respect to that streetlighting, if PNM does not fix it within 24 hours, the City of Albuquerque can contract to fix the streetlighting and submit an invoice to PNM for the repairs.
3. Albuquerque Airport Substation. Joint Applicants commit to work with the City of Albuquerque to complete by July 1, 2022 the construction of a PNM-owned substation that will be a part of PNM's distribution system serving the southeast area of Albuquerque,

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