Community

TXNM Energy has a long tradition of supporting the communities it serves in New Mexico and Texas. The Company demonstrates our core value of caring through the TXNM Energy Foundation, corporate giving, widespread employee volunteerism, and PNM's low‐income assistance program.

TXNM Energy Foundation

The TXNM Energy Foundation is a separate nonprofit, tax-exempt corporation governed by a board of trustees comprised of PNM employees and retirees. In 2022, the Foundation granted $1.2 million to New Mexico and Texas nonprofits. In 2022, the Foundation was pleased to offer Vision Grants for the third year in a row. These grants focused on improving identified areas of importance in New Mexico that help move the state forward

together. Together with the TXNM Energy Foundation, we have a strong vision for New Mexico having affordable housing, reduced homelessness, safe vibrant communities and cleaner air. A cumulative total of $3 million in grants were awarded by the Foundation in these main areas by the end of 2022. Ongoing programs also include employee matching and volunteer grants which support nonprofits to which employees volunteer their time or monetary donations. Strategic and collaborative impact grants are awarded to organizations that work provide educational opportunities, support economic development or focus on diversity, equity and inclusion.

In 2022, the TXNM Energy Foundation provided Texas nonprofits with TNMP Power Grants totaling $131,000 to support education.

United Way of Central New Mexico (UWCNM) and the Albuquerque Community Foundation (ACF) have joined to form the DEI United Fund to support, promote and advance Diversity, Equity and Inclusion practices in the four counties each organization serves. Initial funding has been provided by the TXNM Energy Foundation, UWCNM and ACF.

The DEI United Fund will identify short- and long-term activities to foster change leading to more equitable, racially just and sustainable solutions for systemic change. The activities conducted by the two organizations will be rooted in community and will include training, educational support, and funding for a range of practices. Training will be offered to community leaders and decision-makers across sectors to strengthen their actions to embed equitable practices in their organizations.

Employee Volunteerism

Employees across the Company demonstrate their involvement and dedication to the communities in which they live and work through their donations of time, money (which the Company may match through our Volunteer Grants or Matching Grants programs) and United Way giving. We also encourage employees to participate in the Company‐sponsored Day of Service event held annually, providing employees the opportunity to take a workday to connect with their communities. In addition, employees are offered eight hours of volunteer time off to support the organizations of their choice. In 2022, approximately 800 PNM and TNMP employees and retirees contributed more than 9,100 volunteer hours serving their local communities.

Low-Income Customer Assistance

For more than a decade, PNM has focused on outreach efforts to connect low‐income customers with nonprofit community service providers offering support and help with such needs as utility bills, food, clothing, medical programs, services for seniors, and weatherization. In 2022, PNM hosted 48 assistance fairs throughout our service territory to help low‐income customers. The PNM Good Neighbor Fund provided $558,318 in utility bill support to 9,171 families in 2022.

American Indian Outreach

PNM continues to collaborate extensively with 23 of New Mexico’s American Indian Tribes to advance PNM’s understanding and engagement in our tribal communities. Through the challenging work and guidance of PNM’s Tribal Government and Customer Engagement Team, PNM respects and acknowledges inherent tribal sovereignty and continues to actively engage tribes, pueblo and nations with key signature programs that have made huge impacts in our tribal communities.

Light Up Navajo

Over 14,000 families in the United States still live without electricity and water and most reside on the Navajo Nation. These homes make up 75% of all un‐electrified households in the United States. Navajo teachings and beliefs tie their people to the land, making it a challenge to provide electricity to families who live in remote areas of the 28,000 square miles of Navajo land.

Light Up Navajo is a mutual aid project between the Navajo-owned utility, Navajo Tribal Utility Authority (NTUA), and member utilities of the American Public Power Association. PNM participates in the project and sends crews to join efforts to connect homes to the electric grid.

In 2022, PNM crews worked along-side NTUA Crews to light up over 300 homes in the northern Navajo area. Crews constructed 65 primary service pole extensions (4.1 miles), 18 secondary service pole extensions, installed 8 utility transformers, retired & installed service lines to connect & electrified 10 homes in a two-week period.

With support of Navajo Nation leaders, the mutual aid project is life changing for families who have waited for electricity their entire lives. This means that they can finally enjoy modern conveniences of lighting, refrigerators, and electronic devices without having to use generators. The Navajo Nation spreads over the largest land area of any Indigenous population in the United States.

PNM Pueblo Endowment

In 2022, PNM made a monumental sustainable legacy investment for New Mexico Pueblo members by creating the PNM Pueblo Endowment Fund. The funds seed $1 million for the creation of the PNM Pueblo Scholarship Fund on behalf of the 19 Pueblo Nations of New Mexico for educational and professional capacity development of Pueblo people and their communities.

The All Pueblo Council of Governors (APCG) and Native Forward Scholars Fund (formerly known as the American Indian Graduate Center) together announced the creation of the new PNM Pueblo Scholarship Endowment Fund to support educational and professional development of Pueblo people. PNM also committed $50,000 annually to the fund for 4 years, to enable immediate scholarship accessibility.

Of the 15 yearly scholarships available, two of the engineering scholarships are named in the memory of the late Everett F. Chavez, a transformative pueblo leader, a resolute family man, and a valued mentor spending much of his professional life advancing the interests of Indigenous people. Governor Chavez was a three-time Governor of Kewa (Santo Domingo Pueblo) and served as the Superintendent of the Santa Fe Indian School (SFIS).

The PNM Pueblo Endowment Fund awarded the first round of scholarships for the fall 2022/spring 2023 semesters and to-date, 27 students from 8 Pueblos received scholarship funding from this program.

PNM Navajo Nation Workforce Training Scholarship Program

In 2013, PNM committed $1 million over five years to train Navajo Tribal members for future job opportunities that began in 2013 with funds going directly to partnering schools, Navajo Technical University (NTU) in Crownpoint, NM and San Juan College (SJC) in Farmington, NM. In 2019, PNM recommitted $500,000 to continue the Program through 2024.

To date, over 700 Navajo students have received funding through the program, resulting in 337 Navajo graduates earning certificates, associates, and bachelor’s degrees. Annual Graduation celebrations are held in May.

The program is designed to ensure New Mexico and the Four Corners area have the trained workforce needed for existing and emerging jobs, and members of the Navajo Nation are well trained for new career opportunities with the recent closure of PNM’s San Juan Generating Station.