ML17305A290
| ML17305A290 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 12/31/1988 |
| From: | Geist J PUBLIC SERVICE CO. OF NEW MEXICO |
| To: | |
| Shared Package | |
| ML17305A289 | List: |
| References | |
| NUDOCS 8910190227 | |
| Download: ML17305A290 (12) | |
Text
-NOTICE-THE ATTACHED FILES ARE OFFICIAL RE-CORDS OF THE RECORDS & REPORTS MANAGEMENTBRANCH. THEY HAVE BEEN CHARGED TO YOU FOR A LIMITED TIME PERIOD AND MUST BE RETURNED TO THE RECORDS & ARCHIVES SERVICES SECTION P1-122 WHITE FLINT. PLEASE DO NOT SEND DOCUMENTS CHARGED OUT THROUGH THE MAIL. REMOVAL OF ANY PAGE(S) FROM DOCUMENT FOR REPRO-DUCTION MUST BE REFERRED TO FILE PERSONNEl.
-NOTICE-P UBLIC SERVICE COMPANY OF NEW MEXICO ANNUAL REPORT
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I Tfirough the ages, many different cultures have shaped New Mrocico's growth and devel-opment. Sym6ols of those diverse influences illustrate this report.
Front Cover: Pattern from a Navajo uvdding, basket Page I: Hoptdesign representing the'Plumed Serpnt." ~-
Page 2. 3;.Theedgteanditsfedthers arekfeel by some to possess magical pouvrs, Page 4: Helmet worn by the S pa nish Coiutuistadors, Page 5i A pi7iatd, or "little pot," must be broken opn by a blindfolded pmn tolelslt fis treasurecfcdndy and gifts.
Page 6: Fetishes appar ln many different cut turesThebrarrepresentscourage Page 7: The cactus typifus theSoutliuvst for many popk Page 8. The outcasl coyote is gaining new prominence in sou tfiuvste art.
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TABLE OF CONTENTS OVERVIEW Chairman's Letter .
Electric and Water Operations .
Gas Operations Diversified Subsidiaries ~ ~ ~ ~ ~ ~ ~ o 6 Stockholder Information . ......... 7 Financial Information Index . 8 Directors and Officers ....... . Inside Back Cover FORM 1O-K. .... Enclosed Public Service Company of New Mexico and Subsidiaries OPERATIONS
SUMMARY
l988 f987 Cllange Operating revenues S 84 I,924,000 S 785,224,000 7.2 Operating expenses S 70 I,858,000 S 652,873,000 7.5 Net earnings (loss) S (230, I 37,000) S 95,389,000 N/M Return on average common equity (23.9)% 7.7% N/M Earnings (loss) per common share S (5.78) S 2.00 N/M Dividends paid per common share S I.87 S 2.92 (36.0)
Book value per common share at year<nd S I8.03 S 25.68 (29.8)
Construction expenditures S 97, I8I,000 S f 24,723,000 (22.l)
ELECTRIC:
Total kilowatt-hour sales l93, l84,000 6,938,724,000 I8. I GAS:
Decatherm throughput', 58,203,000 55,434,000 5.0
'Includes 9,I33,000 decatherms and 5, I49,000decatherms of transportation throughput in l988 and l987, respectively.
N/M - Not meaningful The complete 1988 Annual Report to Stockholders consists of tks overvlevv and the copy of the Company's 1988 Annual Report on Form IO-K flie with the Securities and Exchange Commission which Is provided concurrently herewith.
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TO THE STOCKHOLDERS:
"After the rain, the sun comes out."
With these words the New Mexico Public Service Commission concluded its monumental order on PNM's excess capacity, our principal financial problem.
This regulatory decision was so vital to your Company's future that we believed that we could not complete our 1988 financial statements without reflecting the consequences of the Commission's order.
r And, although we now see the sun glimmering through the clouds, this past I I I year it has rained heavily.
For 1988 we recorded a net loss for common stockholders of S241 million, or a loss of S5.78 per share. This compared with net earnings for common I
I stockholders of S83 million, or S2.00 per share, in 1987.
I I The loss is the direct result of actions to eliminate no longer productive assets from our balance sheet. We recognized losses of S329 million in connection with assets which had been devalued by deteriorating market conditions or regulatory treatment.
A year ago the Board of Directors reduced the quarterly dividend from S.73 per share to S.38 per share. This Aprilwe announced suspension of the dividend through the fourth quarter of 1989. A proposed accounting reorganization, if implemented, may facilitate resumption of future dividend payments.
Our employees, often stockholders themselves, have shared our stock-holders'sacrifice. In August we cut our workforce by 800 positions as part of the JERRY D. GEIST company-wide Project Turnaround. We laid off almost thirty percent of all CHAIRMANAND PRESIDENT executives, temporarily froze salaries, reduced benefits, and ended certain PUBUO SERVICE COMPANY OF NEW MEXICO executive incentive plans.
After such a financial downpour why do I share the view that the sun is breaking through the clouds?
There are four reasons:
o major progress in resolving the excess capacity issue; the quality of the Palo Verde nuclear plant; "Despues de la lluvia, sale el sol." o growth in retail utility sales, our core business; and o our decision to get back to the basics.
New Mexico Public Service Commission Orderon Case2146-Apnl5, 1989 RESOLVING THE EXCESS CAPACITY PROBLEM "PNM's excess capacity problems are now to severe for this Commission to fashion a solution in which everyone is considered a winner," the Commission said in its April 5 order. "Both ratepayers and investors must share in the economic consequences caused by too much capacity."
Of PNM's excess capacity the Commission decided that 260 MW of Palo Verde Units I and 2, 147 MWofthe San juan 4 coal plant, and up to 200 MWof purchased power will be included in our customers'uture power supply. The
~~~~....',.",future rate impact. representsctFie ratepayers,'share of:resolving the. excess
>~;. '~; c'apaclty problem, The'Commission 'excluded 130 MW of Palo Verde Unit 3, 130, r,".-.': -': ..',MW"of San -'luan'Unit'4;.a'nd:105 'MW 'of, purchased power,'The financial X> >> '-..:. :,; conseguenuc'es of this'exclusioen repre'sent, in'part,'thestockholders'share of the
~;'I,', " ';, -:":=. .".'".T}jeCommission deferred.,any'e'cision on" rate impact to a new, rate case
',;;,";,-"" "..'...'whichweplan'fofilebylateMa'yTheCommissionshou!dissueitsratedecision
'-:,";~6 March l990.::..' '*. ':~.:
In addition. inta nuary t987 the commission docketed a palo verde prudence review. That proceeding still continues. The Commission must determine what impact both an Arizona construction audit and the Commission's own excess capacity decision will have on the prudence review.
In short, the Commission has decided only what power plants will supply future retail customers. They must still decide when and at what price.
PALO VERDE A QUALITYNUCLEAR PLANT Although the Board will determine Our billion dollar, ten percent interest in Palo Verde is the heart of PNM's the actual level of dividends in the financial problems. Yet, unlike some other nuclear investments, Palo Verde is a future, it will establish a payout based well-built, well-run plant. This was confirmed in March when a two-year audit by on a relatively conservative payout a national accounting firm found that of the S5.9 billion brick-and-mortar cost, ratio, which willprovide the opportunity only S60 million about I percent was unreasonable. Authorized by the for above average growth. The Board Arizona Corporation Commission, the audit also determined that exceptional believes that stockholders deserve a management performance at the plant ended up saving between S279 million competitive current return on their in-and S307 million in construction costs. vestment as well as future growth. We Palo Verde's problem is the market for its power. As its three units were hope to accomplish the accounting completed in 19864, neither New Mexico nor the regional wholesale market reorganization by theannualstockholders needed this new power supply. By their recent action, the New Mexico regu- meeting scheduled for May 16.
lators have decided that New Mexico customers will indeed need Palo Verde Your Board of Directors feels very Units I and 2; however, timing and level of recovery must still be determined. deeply the losses experienced by our And while the wholesale power market remains soft, we anticipate that the stockholders. Falling stock values, demand for Unit 3's power should improve over time. reduced common equity, loss of divi-dend income are not abstract decisions GROWTM IN UTILITYSALES to your directors. They represent the Our core utilitybusiness is solid. Our operating revenues in 1988 were S842 loss of real wealth and real income of million, up 7.2 percent from S785 million in 1987. real people.
Over the last two years annual retail electric sales increased 5.2 percent, I have spent twenty-eight years with about sixty percent faster than the national average. Annual gas volume PNM most of my working career. This increased for the second consecutive year after seven straight declining years. has been by far the toughest year-the Our utilities are literally "doing better with less." Over the last six years, with departure of valued colleagues, long-construction winding down, our electric utilityhas added 59 400 new customers term plans thwarted, hopes dashed while reducing our work force by almost 1,000 employees. Since january 1985, against immovable financial and polit-when we bought Gas Company of New Mexico, our gas utility is serving 28,000 ical realities.
more customers with 74 less employees. Troubled times call for shared In addition, Gas Company has boosted transportation and stand-by service sacrifices a call reiterated in the Com-revenues while securing a S9.9 million rate increase in August for our "full- mission's order. I must personallyshare service" customers. that spirit of sacrifice. My own com-pensation for 1988 represented a one-GETTING BACK TO BASICS third reduction from previous levels, In November 1988 our Board of Directors decided to end our diversification but, in retrospect, it was not com-program. Meadows Resources, Inc. and Sunbelt'Mining Company are discon- mensurate with the Company's actual tinuing operations and selling off their investments. performance in 1988. Therefore, pur-Begun in 1981, our diversification program had winners and losers. In the suant to my initiative, my base salary mid-1980s Meadows and Sunbelt began to generate postitive earnings. But will be reduced to SI.00 for the next they weren' exempt from the Southwest's mining and real estate slump, which twelve month period. The Board of closed hundreds of savings and loans, mines, and land development compa- Directors has directed the Compensa-nies. We could not justify trying to sustain Meadows and Sunbelt through hard tion Committee to consider an incen-times of unknown duration. Thus, we decided to end our diversification tive package for me, based on the program to concentrate on our strength: the core utilityoperations our basic performance of the Company's com-business. mon stock, but no incentive payments All these Board actions and regulatory decisions added up to major short- would be payable in 1989.
term losses S329 million in after-tax writewffs: The worst is behind us. We are o S70 million in inventorying deferrals affected by regulatory actions; concentrating on our strengths. Our o S38 million for the Dinch Power Project,.devalued-by-continued-softr-;-basic business:is.qund and provide marketconditions; .,', -,., ',. -" ~ .:" '.'...",.solidfoundationf r'progress..
o S174 million in operating losses and devaluation ofassetsof Meadows ',
Sunbelt, including Dinch coal leases; and -."',g d'nd o S47 million in other assets for which we will not'rrecover valu'e'. ,
These writea((s reset ted in a nega tive retained earnings ha(antes(tyearwnd-, -.
of S 144 million, which precludes the payment of common stock, dividends. As the Board of Directors hasinst'ructed management to pursue a:,',
a"'esult .-
accounting reorganization. This accounting 'reoer'gantzation w'ould charge the negative retained earnings balance against the additional paid-in capital 1.D. Geist account, which would set the retained earnings account to zero. Chairman and President Dividends may be paid again when the accounting reorganization is corn- APiii l4, i939 pleted, and sufficient retained earnings are accumulated. The Board now anticipates that it will not declare any common dividends through the fourth quarter 1989.
STREAMLINEDOPERATIONS With our plant construction program completed in 1982 we began to reduce our work force. Today we serve 59,400 more customers with approximately 1,000 fewer employees than six years ago. Cutbacks peaked in August I988 with ProjectTurnaround. We laid off 485 employees, eliminated 75 vacant positions, and abolished several management layers. Though we reduced overall employment by twenty percent, the reduction in executive and management ranks was almost thirty percent With no loss in safety or reliability, we cut back or eliminated some utility services. We also reduced the five-year mnstruction budget by 45 percent and cut Sl I million out of the f989 operations and maintenance budget.
IMPROVED MARKET PROSPECTS Continuing strong growth in retail electric sales emphasized the value of our core business. Without the aid of unusual weather conditions, our growth averaged 5.2 percent for the last two years.
To increase sales we worked closely with state and local economic development groups. In December, Solo Cup Co. announced that itwillopen a new plant in Belen that will employ at least 250 area workers; we will supply electric power under a rural economic development incentive rate approved by the Commission.
Wholesale spot-market prices edged slightly upward lastsummer, helping to reduce our surplus capacity problem. Though the market remains soft for longer-term firm-power sales, regional growth projections are stronger now than in recent years.
WILUAMM. EGUNTON In l988 we signed 25-year franchise extensions for Belen, Deming and EXECunVE VICE PRESIOENr Clayton. We are aggressively pursuing renewal of our Albuquerque franchise ANO CHIEF 0~TING OFRCER Albuquerque city government is studying other alternatives, including ELECTRIC ANO WATER OPERATIONS municipalization and alternative suppliers. However, we built, own, and operate the local electric system. We are confident we can meet all competition and will continue to serve New Mexico's largest urban area.
ELECTRIC AND WATER OPERATIONS FOCUS ON CUSTOMERS Despite budget cutbacks, we kept open all six division offices and seven Albuquerque neighborhood offices. In Albuquerque our new neighborhood-level services and improved telephone system resulted in annual customer contacts equal to twice Albuquerque's population. On Easter Sunday f988, a freak snowstorm caused the worst outage in Albuquerque's history, but scores e made of PNM office workers turned out to help line crews restore service. Our tough, pain- Consumer Council continued to guide our efforts to improve customer service.
ful deci-sions in l988 REGULATORY ACTIONS to deal with Over the last year we faced a regulatory agenda unparalleled in size, surplus ca- complexity and significance. After withdrawing our restructuring plan in pacity and August, we participated in seven weeks of hearings and provided tens of competitive thousands of documents in support of our Palo Verde phase-in proposai. We market pres= plan.to.file in.May.a rate case to implement the Commission decision.
lir . Wecutcosts reduced wor k force . The construction audit re po rt on Palo Verde, conducted for the Arizona aurta)iedcommunityactivities.With Corporation Commission, turned oitt favorably when a national accounting a k,C4mmission decision behind us,,
', firm recommended disallowance of about one percent of the S5.9 billion we emnfidentthatourslreainlinedop- construction:cost. The New Mexim Commission's own inquiry into the erapons,Timp7oved market conditions, ', prudencyof our pfanningdecisions regarding Palo Verdecontinued; in january usoncustomerswill helpassure l989 we filed 9J'volumes of testimony and exhibits for this case.
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competitive arid financial success.
Our water utility in Santa Fe continued its own turnaround. We recorded a third consecutive year of profits after several years of losses. Despite a ten percent reduction in staff, Sangre de Cristo maintained excellent service to the state capital's growing population.
GAS OPERATIONS 4 he natural gas industry changed radically since we purchased Gas Company of New Mexico in 1985.
Evolving federal and state regulations turned pipe-line and local gas companies into common carriers.
In New Mexico any customer can now purchase natural gas from any producer and require Gas Company to transport that gas.
Reflecting the national trend, in 1988 Gas Company's "full service" role declined as our "transporter" role increased. At year<nd, 16 percent of the gas moving on our system was for transportation customers.
From 1980 to 1986 total volumes declined dramatically. In 1987 we reversed that decline; in 1988 total volume through our system grew for the second consecutive year. We sold and delivered 49.1 billion cubic feet of natural gas to our "fullservice" customers. We also transported an additional 9.1 billion cubic feet to our "transportation" customers. In fact, our customer base grew by almost two percent over the previous year to 336 000 customers throughout the state.
To enhance system reliability we purchased a pipeline system in southern JOHN T. ACKERMAN New Mexico. We are assessing similar purchases to improve our system. PRESIDENT AND CHIEF OPERATlNG OFFICER By contrast, in February 1989 Los Alamos County purchased our 2,300+us- GAs OFERAmorus tomer White Rock distribution system for three times book value in order to complete its county-wide utility system. For 1989 shareholders will realize a one-time, pre-tax gain of approximately S900 000 from the sale. White Rock will remain a transportation customer.
RATE INCR EASE In August 1988 the Commission granted Gas Company a S9.9 million rate increase, slightly over half the increase requested. Even with this rate increase, Gas Company's rates still ranked below national averages. The Commission also approved unbundled transportation rates, discount pricing for transpor-tation services, and other rate design changes needed to compete in the industry.
In 1989 the Commission will decide several critical aspects of future gas supply. This case should settle past controversies, shape future gas supply strategies for both Gas Company and Sunterra Gas Gathering Company, and design mechanisms to recover both past and future "take or pay" charges.
PROJECT TURNAROUND
",'P In August 1988 we laid off 100 employees and eliminated 33 vacant positions.
We also eliminated a number of executive positions, upgraded the authority and responsibility of line managers, and'intr'aifzed maiketIn'g.'
Even though our busin'ess, is changing'rapidly, our'bas1c,goal re'mains",.;
unchanged to serve our'gu'stomers safely and.reliably,,WItlt'ou'r. staff.reduc.-",",'-,
and reorganization of responsibility; we;are better prepared today, to,.'~.
"'ions surviveand thrivein today"s increasinglycompetItiy'e natu'ral ga4marketplace, . '!
DIVERSIFIED SUBSIDIARIES In 1988 wedecided to end all diversified n March 1989 Meadows entered a contract to sell operations and get back to our core utility the Montana de Flbra fiberboard business to business. Medite, a wood products subsidiary of Valhi, Inc.
After several profitable years, in the Medite stated it will continue to operate the plant mid-1980's, our investments in the land in Las Vegas, New Mexico.
development business suffered substanlia! Reflecting the decision to end diversification, in losses 1988 with no immediate improve- August Meadows cut staff by more than fifty ment anticipated in Southwest real estate percent as part of Project Turnaround.
markets. Our fiberboard plant lost nioney Several Meadows investments had successful even though operations have improved operating years in l988. Alliance Telecommunications Corporation had record greatly. The outlook remained poor for tfie sales and profits; Alliance also acquired two companies that provide frequency depressed gal mining industry. management services, and controlling interest in Qulntron Corporation, a These problems overwhelnied our more manufacturer of transmitter equipment. Lukens, another Meadows investment, profitable diversified businesses while our opened up a major medical equipment plant in Rio Rancho, New Mexico; inability to obtain approval to form a Lukens expects to hire several hundred workers locally. Meadows continued holding company placed severe limitations successful development of the Santa Fe Ranch Resort and Ontario, California on meeting the diversified businesses'i- real estate projects. These successes should enable us to attract buyers for nancial requirements. these companies at more favorable prices.
Both Meadows Resources, Inc. and Sunbelt Mining Company, Inc., PNM's wholly-owned diversified subsidiaries, are terminating operations and selling assets.
Theseare primarily in manufacturing, real estate, coal mining, and financial services.
unbelt proceeded rapidly to phase out mining operations. Through early termination of our coal sales agreement with San juan Coal Company, we closed our New Mexico coal operations in Novem-ber and laid off 49 employees. We also shut down coal operations in Oklahoma in April and laid off l80 employees. As part of Project Turnaround we laid off forty percent of headquarters employees in August; additional layoffs will occur in 1989.
In I989 Sunbelt will begin the process of mine site reclamation in both Oklahoma and New Mexico. We shall continue efforts to sell certain mineral properties and other assets.
Finally, we are evaluating the future of Sunbelt's subsidiaries, Sunterra Gas Gathering Company and Sunterra Gas Processing Company. These companies will continue to provide service to Gas Company of New Mexico whether they are restructured as direct subsidiaries of Gas Company or sold to independent third parties.
STOCKHOLDER INFORMATION The annual meeting of stockholders of Public Service Company of New TAX REPORTS Mexico will be held in the auditorium of the UNM Continuing Education ON DIVIDENDINCOME Conference Center, 1634 University Boulevard N.E., Albuquerque, New Mexico PNM is required to report to the on May16, 1989 at 9 30 a.m. Mountain Daylight Time. Stockholders are urged Internal Revenue Service the total to attend; however, whether or not attending, proxies should be marked, signed, amount of stockholder dividends paid dated and returned promptly. to each stockholder during the preced-ing year. Form 1099 or 1042, which ABOUT YOUR SECURITIES AND RECORDS contains the information supplied by The common stock of Public Service Company of New Mexico is listed on the PNM to the IRS for each stockholder New York Stock Exchange and is also traded on the Pacific and Philadelphia account, is mailed in lanuary to all Stock Exchanges. A consolidated quote is published in numerous daily stock stockholders.
tables carried by many newspapers. The ticker symbol for the common stock is The Internal Revenue Service may PNM. The most common newspaper symbol is PSvNM. require PNM to begin 20% backup PNM and Harris Trust Company act as transfer agents for PNM common withholding from dividends of stock-stock PNM acts as transfer agent for PNM preferred stock PNM maintains all holders who fail to provide a Taxpayer stockholder records of the corporation. PNM and Harris Trust Company act as Identification Number (TIN), or provide registrar for common and preferred stock an incorrect number, or when the IRS has notified PNM that a stockholder STOCKHOLDER INFORMATION has underreported income. You may Stockholders may obtain information relating to their share position, divi- verify the Taxpayer Identification Num-dends, transfer requirements, lost certificates, and other related matters by ber we have on record for your account telephoning PNM Stockholder Services (numbers given below). Stockholders by looking at your dividend check stub.
must provide their tax identification number, the name(s) in which their shares If the TIN is incorrect you can notify the are registered and their record address when they request information. This Stockholder Records Department and a service is available to all stockholders Monday through Friday 7:30 a.m. to 5:00 Form W-9 will be sent to you.
p.m. Mountain Time Zone. Stockholders may also obtain this information by INCIUIR I ES-writing to Stockholder Services, PNM, Alvarado Square, MS@082, Albuquerque, ADDITIONALINFORMATION New Mexico, 87158. AVAILABLETO STOCKHOLDERS Questions concerning stockholder DUPLICATE MAILINGS transactions should be directed to To reduce the overall volume of mailings, the Company makes it a practice to Stockholder Services, PNM, Alvarado combine the mailing of financial information with other stockholder mailings, Square, MS0)82,Albuquerque, NM87158.
such as dividend checks and proxies. If a single household owns stock under TELEPHONE NUMBERS:
several accounts, each account will be sent an individual mailing containing a (505) 848-2I22 (local) check or proxy with the financial information. This results in some households 1-800-432-4494 (New Mexico) receiving duplicate copies of the financial material. When the Company does 1-800-545-4425 (outside New Mexico) not combine a mailing with a check or proxy, the duplicate mailings can be Stockholders should direct questions prevented if the stockholder has notified the Company in writing to mail only about the activities of the Company one copy to a specific address. and operating results to Stockholder Services, PNMiAvarado~uareJA-LOST CERTIFICATES 0082, Albuquerque, NM 87158; or call Stock certificates are valuable pieces of paper that should be kept in a safe '(505) 848-2457.
place. Lost certificates may be replaced only after issuance of an indemnity bond, for which a current premium of about two percent of the market vafue of the stock is charged by an insurance company, Immediately upon the dis-appearance or destruction of a certificate, stockholders should contact Stockholder Services who will provide information on the appropriate steps required to replace the certificate.
FINANCIALINFORMATION INDEX Located In End osed Form l0-K Stock/Dividend Data . 19 Selected Financial Data 20 Management's Discussion and Analysis of Financial Condition and Results of Operations ............ 21 Management's Responsibility for Financial Statements . ~ ~ ~ ~ 26 Auditors'eport . 27 Consolidated Statement of Earnings (Loss) ......... 28 Consolidated Statement of Retained Earnings (Deficit) ~ ~ ~ ~ 29 Consolidated Balance Sheet . 30 Consolidated Statement of Cash Flows 31 Consolidated Statement of Capitalization 32 Notes to Consolidated Financial Statements ........ 33 Consolidated Financial Statement Schedules 48 Quarterly Operating Results 56 Comparative Operating Statistics . 57 Stockholders may obtain copies of the corporation's Form 10-K annual report to the Securities and Exchange Commission by writIng to: J.B. Mulcock, ]r., Secretary, Public Service Company of New Mexico, Alvarado Square, Albuquerque, NM 87158.
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'IRECTORS'AND'OFFICERS
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EL'ECTRIC AND, BOARD OF DIRECTORS CORPORATE WATER OPERATIONS GAS OPERATIONS John P. Bundrant t Jerry D. Geist ~ WIIUam M. Eglinton John T. Ackerman Director since 1983, age 56 (28), age 5f (18),:age 40 (17), age 47
,.Retired former President 'hairit)an and President Executive Vice President and President and Chief Electric Operat(ons Chief Operating Officer Operating Officer Public Service Company James B. Mulcock, Jr.
of New Mexico (16),-age 49 Jeff E.,Sterba DA "Zan" James Senior Vice President, (fi), age.33 (3), age 45 Ashton B. Collins, Corporate Affairs and Senior Vice President, Vice Pi&ident Finance
- since 1979, age 56 Jr.'irector S8xetaiy ., Business Development Group" Planning. Rates .
President and Chief Executive Officer Reddy Communications, Inc., Max H. Maerkl ferry L Godwln M. Phyllis Bourque a management consulting (4);age 48 (8), age 45 (2), age 41 and services firm Senior Vice President Vice President, Vice President, Gas Supply Albuquerque, NM and Chief Financial Officer Electric Operation Group Judith A. Zanottl Jerry D. Geist t BillyD. lackey Ellen A. Wilson (3), age 49 .,
Director since 1974, age 54 (15), age 5Z , (I0),age4I Vice President, Human Reso Ufces Chairman and Prhident ~ Vice President and Vice President. and Staff Services Public Service Company 'Corporate Controller Human Resource Group of New Mexim John Renner Joellyn K. Murphy Edwin A. Kraft . (2). age 60, Claude E. (7),age43 . (18), age 40 Vice President, Processing Leyeridecker'irector since 1970, age 66 Vice President, Regulatory . Vice President. and San Juan Operations Chairman of the Board and Business Policy, Customer Service Group United New Mexim Bank 't James A. Hunter Mimbres Valley Mitchell J. Marzec Lawrence D. Ratllff (I), age'46 .
Deming. NM (13)', age 41 (14), age 42 =
. Vice President, Marketing Treasurer
- Vice President, and Public Affairs Arturo G. Power Production since 1985, age 68, Karen A. Knight David J. Davis Ortega'irector
'ttorney. senior member'and . (13), age 49 Michael C. Slota- (5), age 44 president of la@ firm o(, Manager of Stockholder (15). age 41 Vice President, Snead. PA, 'rtega.and Services and Assistant Secretary fice President, ,
Metropolitan Operations, Albuqrierque, NM ' Sales ahd Marketing WIIHam J. Real Robert IL SUBSIDIARIES 'utherW.Reynolds, fr. (10), age 40 (2), age 53 Vice President, Operations Rehder'irector since 1975, age 58 Professor'Of Manageiiient, 'ice President. and Engineering, The Robert 0.'Anderson Graduate schools of Management, University of New Mexim Robert B. Rountree (40), age 64 Chairman,
. Marketing Development Robert M. Wilson (17);age 37
'k Terry D. Rlster
- Albuquerque, NM (11). age 43 Vice President; 4
James F. Jennings, Jr. ~
Controller and Regional Operations
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Robert B. Rountree t (5);age 55 Assistant Secretary since 1983;age,64 Chaiiman of the boards of Sunbelt Mining Company, Inc. and
'irector President and Chief Executive Officer 'arilyn Mason-Plunkett (4), age 40.
Andrew IL Vogt (2), age 38
,Controller and SUNBELT MININGCOMPANY. INC.
Meadows Resources, Inc.. Director Rates and Regulation Assistant Secretary Robert B. Rountree, and Assistant Secreta'/
" Russell H.
Stephens'irector (40), age 64
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since 1970, age 74. Chairman, Retired Realtor '.,
Rociada, NM Martin A. Cllfton age 47
'ember
'16),
INC, of Audit Committee ER Wood t Vice President, Finance t Member of Executive Committee Director-since'1968, age 77 PARAGON RESOURCES. ~
( )YearsofservicewithPNMor
~ Private Investor a PNM controlled affiliate,
'Santa Fe, NM Max H. Maerkl (4), age 48 Ages and years of service as of I Chafrman and President December 31, 1988.
I r S
r PUBLIC SERVICE COMPANY OF NEW MEXICO ALVARADOSQUARE ALBUQUERQUE, NEW MEXICO 87158 TELEPHONE (505) 848-2700 DESIGN:
LYNDA K. CRISPINO PHOTOGRAPHY.
QVAK ARSLANIAN o 1 989 Pvouc SGwee Cow'aNv m Nev Mcaco STUDIO 7