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
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-NOTICE-8.
8 P UBLIC SERVICE COMPANY OF NEW MEXICO ANNUALREPORT
'I S910190227 S5'1011 PDR ADOCK 05000528 I
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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."
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Page
- 2. 3;.Theedgteanditsfedthers arekfeel by some to possess magical
- pouvrs, Page 4: Helmet worn by the Spa 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 cutturesThebrarrepresentscourage 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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TABLEOF CONTENTS OVERVIEW Chairman's Letter Electric and Water Operations Gas Operations Diversified Subsidiaries Stockholder Information.
Financial Information Index Directors and Officers.......
FORM 1O-K.
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. 8 Inside Back Cover Enclosed Public Service Company of New Mexico and Subsidiaries OPERATIONS
SUMMARY
l988 f987 Cllange Operating revenues Operating expenses Net earnings (loss)
Return on average common equity Earnings (loss) per common share Dividends paid per common share Book value per common share at year<nd Construction expenditures S
84 I,924,000 S
785,224,000 7.2 S
70 I,858,000 S
652,873,000 7.5 S
(230, I37,000)
S 95,389,000 N/M (23.9)%
7.7%
N/M S
(5.78)
S 2.00 N/M S
I.87 S
2.92 (36.0)
S I8.03 S
25.68 (29.8)
S 97, I8I,000 S
f 24,723,000 (22.l)
ELECTRIC:
Total kilowatt-hour sales GAS:
Decatherm throughput',
l93, l84,000 6,938,724,000 I8. I 58,203,000 55,434,000 5.0
'Includes 9,I33,000 decatherms and 5, I49,000decatherms oftransportation throughput in l988 and l987, respectively.
N/M-Not meaningful The complete 1988 Annual Report to Stockholders consists oftks overvlevv and the copy of the Company's 1988 Annual Report on Form IO-Kfliewith the Securities and Exchange Commission which Is provided concurrently herewith.
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TO THE STOCKHOLDERS:
"Afterthe 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.
And, although we now see the sun glimmering through the clouds, this past year it has rained heavily.
For 1988 we recorded a net loss forcommon stockholders ofS241 million,or a loss of S5.78 per share. This compared with net earnings for common stockholders of S83 million, or S2.00 per share, in 1987.
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.
Ayear ago the Board of Directors reduced the quarterly dividend from S.73 per share to S.38 per share. This Aprilwe announced suspension ofthe 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. InAugust we cut our workforce by 800 positions as part ofthe company-wide Project Turnaround. We laid off almost thirty percent of all executives, temporarily froze salaries, reduced benefits, and ended certain 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; o
growth in retail utilitysales, our core business; and o
our decision to get back to the basics.
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JERRY D. GEIST CHAIRMANAND PRESIDENT PUBUO SERVICE COMPANYOF NEW MEXICO "Despues de la lluvia, sale el sol."
New Mexico Public Service Commission Orderon Case2146-Apnl5, 1989 RESOLVING THE EXCESS CAPACITYPROBLEM "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 willbe included in our customers'uture power supply. The
~~~~....',.",futurerate impact. representsctFie ratepayers,'share of:resolving the. excess
>~;. '~; c'apaclty problem, The'Commission 'excluded 130 MWof 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 ofthe
~;'I,', " ';, -:":=..".'".T}jeCommission deferred.,any'e'cision on" rate impact to a new, rate case
',;;,";,-"" "..'...'whichweplan'fofilebylateMa'yTheCommissionshou!dissueitsratedecision
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'-:,";~6 March l990.::..'
In addition. inta nuary t987 the commission docketed a palo verde prudence review. That proceeding stillcontinues. The Commission must determine what impact both an Arizona construction audit and the Commission's own excess capacity decision willhave on the prudence review.
In short, the Commission has decided only what power plants willsupply future retail customers. They must still decide when and at what price.
PALO VERDEA QUALITYNUCLEAR PLANT Our billiondollar, ten percent interest in Palo Verde is the heart of PNM's financial problems. Yet, unlike some other nuclear investments, Palo Verde is a well-built,well-run plant. This was confirmed in March when a two-year audit by a national accounting firm found that of the S5.9 billionbrick-and-mortar cost, only S60 millionabout I percent was unreasonable.
Authorized by the Arizona Corporation Commission, the audit also determined that exceptional management performance at the plant ended up saving between S279 million and S307 million in construction costs.
Palo Verde's problem is the market for its power. As its three units were completed in 19864, neither New Mexico nor the regional wholesale market needed this new power supply. By their recent action, the New Mexico regu-lators have decided that New Mexico customers willindeed need Palo Verde Units I and 2; however, timing and level of recovery must still be determined.
And while the wholesale power market remains soft, we anticipate that the demand for Unit 3's power should improve over time.
GROWTM IN UTILITYSALES Our core utilitybusiness is solid. Our operating revenues in 1988 were S842 million, up 7.2 percent from S785 million in 1987.
Over the last two years annual retail electric sales increased 5.2 percent, about sixty percent faster than the national average. Annual gas volume increased for the second consecutive year after seven straight declining years.
Our utilities are literally"doing better with less." Over the last six years, with construction windingdown, our electric utilityhas added 59 400 new customers while reducing our work force by almost 1,000 employees. Since january 1985, when we bought Gas Company of New Mexico, our gas utilityis serving 28,000 more customers with 74 less employees.
In addition, Gas Company has boosted transportation and stand-by service revenues while securing a S9.9 million rate increase in August for our "full-service" customers.
GETTING BACKTO BASICS In November 1988 our Board of Directors decided to end our diversification program. Meadows Resources, Inc. and Sunbelt'Mining Company are discon-tinuing operations and selling off their investments.
Begun in 1981, our diversification program had winners and losers. In the mid-1980s Meadows and Sunbelt began to generate postitive earnings. But they weren' exempt from the Southwest's mining and real estate slump, which closed hundreds of savings and loans, mines, and land development compa-nies. We could not justifytrying to sustain Meadows and Sunbelt through hard times of unknown duration. Thus, we decided to end our diversification program to concentrate on our strength: the core utilityoperations our basic business.
All these Board actions and regulatory decisions added up to major short-term losses S329 million in after-tax writewffs:
o S70 million in inventorying deferrals affected by regulatory actions; Although the Board will determine the actual level of dividends in the future, it willestablish a payout based on a relatively conservative payout ratio, which willprovide the opportunity for above average growth. The Board believes that stockholders deserve a
competitive current return on their in-vestment as well as future growth. We hope to accomplish the accounting reorganization by theannualstockholders meeting scheduled for May 16.
Your Board of Directors feels very deeply the losses experienced by our stockholders.
Falling stock values, reduced common equity, loss of divi-dend income are not abstract decisions to your directors. They represent the loss of real wealth and real income of real people.
I have spent twenty-eight years with PNMmost of my working career. This has been by far the toughest year-the departure of valued colleagues, long-term plans
- thwarted, hopes dashed against immovable financial and polit-ical realities.
Troubled times call for shared sacrifices a call reiterated in the Com-mission's order. I must personallyshare that spirit of sacrifice. My own com-pensation for 1988 represented a one-third reduction from previous levels, but, in retrospect, it was not com-mensurate with the Company's actual performance in 1988. Therefore, pur-suant to my initiative, my base salary will be reduced to SI.00 for the next twelve month period. The Board of Directors has directed the Compensa-tion Committee to consider an incen-tive package for me, based on the performance of the Company's com-mon stock, but no incentive payments would be payable in 1989.
The worst is behind us.
We are concentrating on our strengths.
Our o
S38 million for the Dinch Power Project,.devalued-by-continued-softr-;-basic business:is.qund and provide marketconditions;
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.:" '.'...",.solidfoundationf r'progress..
o S174 millionin operating losses and devaluation ofassetsof Meadows ',
d'nd Sunbelt, including Dinch coal leases; and -."',g o
S47 million in other assets for which we willnot'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 ofcommon stock, dividends. As a"'esult the Board of Directors hasinst'ructed management to pursue a:,',
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.
WILUAMM. EGUNTON EXECunVE VICE PRESIOENr ANOCHIEF 0~TING OFRCER ELECTRIC ANOWATER OPERATIONS ELECTRIC AND WATER OPERATIONS e
made tough, pain-ful deci-sions in l988 to deal with surplus ca-pacity and STREAMLINEDOPERATIONS With our plant construction program completed in 1982 we began to reduce our workforce. Today we serve 59,400 more customers withapproximately 1,000 fewer employees than six years ago. Cutbacks peaked in August I988 with ProjectTurnaround. We laid off485 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 millionout of the f989 operations and maintenance budget.
IMPROVED MARKETPROSPECTS Continuing strong growth in retail electric sales emphasized the value ofour 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 willemploy at least 250 area workers; we willsupply electric power under a rural economic development incentive rate approved by the Commission.
Wholesale spot-market prices edged slightlyupward 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.
In l988 we signed 25-year franchise extensions for Belen, Deming and Clayton. We are aggressively pursuing renewal of our Albuquerque franchise Albuquerque city government is studying other alternatives, including 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.
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 of PNM office workers turned out to help line crews restore service. Our Consumer Council continued to guide our efforts to improve customer service.
REGULATORYACTIONS Over the last year we faced a regulatory agenda unparalleled in size, complexity and significance. After withdrawing our restructuring plan in 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.
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. Wecutcosts reduced wor force The construction audit re rt on Palo Verde, conducted for the Arizona P..
competitive arid financial success.
Our water utilityin 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.
k po 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.
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. Atyear<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 billioncubic feet of natural gas to our "fullservice" customers. We also transported an additional 9.1 billioncubic 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 reliabilitywe purchased a pipeline system in southern New Mexico. We are assessing similar purchases to improve our system.
By contrast, in February 1989 Los Alamos County purchased our 2,300+us-tomer White Rock distribution system for three times book value in order to complete its county-wide utilitysystem. For 1989 shareholders will realize a one-time, pre-tax gain ofapproximately S900 000 from the sale. White Rock will remain a transportation customer.
JOHN T. ACKERMAN PRESIDENT ANDCHIEF OPERATlNG OFFICER GAs OFERAmorus RATE INCREASE In August 1988 the Commission granted Gas Company a S9.9 million rate increase, slightlyover half the increase requested. Even withthis 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 willdecide 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 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.-",",'-, "
"'ions and reorganization of responsibility; we;are better prepared today, to,.'~.
surviveand thrivein today"s increasinglycompetItiy'e natu'ral ga4marketplace,
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DIVERSIFIED SUBSIDIARIES In 1988 wedecided to end all diversified operations and get back to our core utility business.
After several profitable years, in the mid-1980's, our investments in the land development business suffered substanlia!
losses 1988 with no immediate improve-ment anticipated in Southwest real estate markets. Our fiberboard plant lost nioney even though operations have improved greatly. The outlook remained poor for tfie depressed gal mining industry.
These problems overwhelnied our more profitable diversified businesses while our inability to obtain approval to form a holding company placed severe limitations on meeting the diversified businesses'i-nancial requirements.
Both Meadows Resources, Inc. and Sunbelt Mining Company, Inc., PNM's wholly-owned diversified subsidiaries, are terminating operations and selling assets.
Theseare primarilyin manufacturing, real estate, coal mining, and financial services.
n March 1989 Meadows entered a contract to sell the Montana de Flbra fiberboard business to Medite, a wood products subsidiary of Valhi, Inc.
Medite stated itwillcontinue to operate the plant in Las Vegas, New Mexico.
Reflecting the decision to end diversification, in August Meadows cut staff by more than fifty percent as part of Project Turnaround.
Several Meadows investments had successful operating years in l988. Alliance Telecommunications Corporation had record sales and profits; Alliance also acquired two companies that provide frequency management
- services, and controlling interest in Qulntron Corporation, a
manufacturer oftransmitter equipment. Lukens, another Meadows investment, opened up a major medical equipment plant in Rio Rancho, New Mexico; Lukens expects to hire several hundred workers locally. Meadows continued successful development of the Santa Fe Ranch Resort and Ontario, California real estate projects. These successes should enable us to attract buyers for these companies at more favorable prices.
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 off49 employees. We also shut down coal operations in Oklahoma in Apriland laid off l80 employees. As part of Project Turnaround we laid offfortypercent of headquarters employees in August; additional layoffs willoccur 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 willcontinue to provide service to Gas Company of New Mexico whether they are restructured as direct subsidiaries ofGas Company or sold to independent third parties.
STOCKHOLDER INFORMATION The annual meeting of stockholders of Public Service Company of New Mexico will be held in the auditorium of the UNM Continuing Education Conference Center, 1634 University Boulevard N.E., Albuquerque, New Mexico on May16, 1989 at 9 30 a.m. Mountain DaylightTime. Stockholders are urged to attend; however, whether or not attending, proxies should be marked, signed, dated and returned promptly.
ABOUTYOUR SECURITIES AND RECORDS The common stock ofPublic Service Company of New Mexico is listed on the New York Stock Exchange and is also traded on the Pacific and Philadelphia Stock Exchanges. A consolidated quote is published in numerous daily stock tables carried by many newspapers. The ticker symbol forthe common stock is PNM. The most common newspaper symbol is PSvNM.
PNM and Harris Trust Company act as transfer agents for PNM common stock PNM acts as transfer agent for PNM preferred stock PNM maintains all stockholder records of the corporation. PNM and Harris Trust Company act as registrar for common and preferred stock STOCKHOLDER INFORMATION Stockholders may obtain information relating to their share position, divi-dends, transfer requirements, lost certificates, and other related matters by telephoning PNM Stockholder Services (numbers given below). Stockholders must provide their tax identification number, the name(s) in which their shares are registered and their record address when they request information. This service is available to all stockholders Monday through Friday 7:30 a.m. to 5:00 p.m. Mountain Time Zone. Stockholders may also obtain this information by writingto Stockholder Services, PNM,Alvarado Square, MS@082, Albuquerque, New Mexico, 87158.
DUPLICATEMAILINGS To reduce the overall volume ofmailings, the Company makes ita practice to combine the mailing of financial information with other stockholder mailings, such as dividend checks and proxies. If a single household owns stock under several accounts, each account willbe sent an individual mailing containing a check or proxy with the financial information. This results in some households receiving duplicate copies of the financial material. When the Company does not combine a mailing with a check or proxy, the duplicate mailings can be prevented ifthe stockholder has notified the Company in writingto mail only one copy to a specific address.
LOST CERTIFICATES Stock certificates are valuable pieces of paper that should be kept in a safe place. Lost certificates may be replaced only after issuance of an indemnity bond, forwhich a current premium ofabout 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.
TAXREPORTS ON DIVIDENDINCOME PNM is required to report to the Internal Revenue Service the total amount of stockholder dividends paid to each stockholder during the preced-ing year.
Form 1099 or 1042, which contains the information supplied by PNM to the IRS for each stockholder
- account, is mailed in lanuary to all stockholders.
The Internal Revenue Service may require PNM to begin 20% backup withholding from dividends of stock-holders who fail to provide a Taxpayer Identification Number (TIN),or provide an incorrect number, or when the IRS has notified PNM that a stockholder has underreported income. You may verify the Taxpayer Identification Num-ber we have on record foryour account by looking at your dividend check stub.
Ifthe TIN is incorrect you can notifythe Stockholder Records Department and a Form W-9 willbe sent to you.
INCIUIRIES-ADDITIONALINFORMATION AVAILABLETO STOCKHOLDERS Questions concerning stockholder transactions should be directed to Stockholder
- Services, PNM, Alvarado Square, MS0)82,Albuquerque, NM87158.
TELEPHONE NUMBERS:
(505) 848-2I22 (local) 1-800-432-4494 (New Mexico) 1-800-545-4425 (outside New Mexico)
Stockholders should direct questions about the activities of the Company and operating results to Stockholder Services, PNMiAvarado~uareJA-0082, Albuquerque, NM 87158; or call
'(505) 848-2457.
FINANCIALINFORMATIONINDEX Located In Endosed Form l0-K Stock/Dividend Data Selected Financial Data 19 20 Management's Discussion and Analysis of Financial Condition and Results of Operations............
21 Management's Responsibility for Financial Statements
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26 Auditors'eport Consolidated Statement of Earnings (Loss).........
Consolidated Statement of Retained Earnings (Deficit)
Consolidated Balance Sheet Consolidated Statement of Cash Flows Consolidated Statement of Capitalization Notes to Consolidated Financial Statements........
Consolidated Financial Statement Schedules Quarterly Operating Results Comparative Operating Statistics 27 28
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~ 29 30 31 32 33 48 56 57 Stockholders may obtain copies of the corporation's Form 10-K annual report to the Securities and Exchange Commission by writIngto: J.B. Mulcock, ]r., Secretary, Public Service Company of New Mexico, Alvarado Square, Albuquerque, NM 87158.
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'='IRECTORS'AND'OFFICERS BOARD OF DIRECTORS John P. Bundrant t Director since 1983, age 56
,.Retired former President Electric Operat(ons Public Service Company of New Mexico Ashton B. Collins, Jr.'irector since 1979, age 56 President and Chief Executive Officer Reddy Communications, Inc.,
a management consulting and services firm Albuquerque, NM Jerry D. Geist t
" Director since 1974, age 54 Chairman and Prhident Public Service Company of New Mexim Claude E.
Leyeridecker'irector since 1970, age 66 Chairman of the Board United New Mexim Bank
't Mimbres Valley Deming. NM Arturo G.
Ortega'irector since 1985, age 68,
'ttorney. senior member'and president of la@ firm o(,
'rtega.and Snead. PA, Albuqrierque, NM Robert IL Rehder'irector since 1975, age 58 Professor'Of Manageiiient, The Robert 0.'Anderson Graduate schools of Management, University of New Mexim
- Albuquerque, NM 4
~ Robert B. Rountree t
'irector since 1983;age,64 Chaiiman of the boards of Sunbelt Mining Company, Inc. and Meadows Resources, Inc..
" Russell H.
Stephens'irector since 1970, age 74.
Retired Realtor '.,
Rociada, NM ER Wood t Director-since'1968, age 77
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Private Investor
'Santa Fe, NM I
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CORPORATE EL'ECTRIC AND, WATER OPERATIONS WIIUam M. Eglinton (18),:age 40 Executive Vice President and '
Chief Operating Officer Jeff E.,Sterba (fi), age.33 Senior Vice President, Business Development Group" ferryL Godwln (8), age 45 Vice President, Electric Operation Group Ellen A. Wilson
, (I0),age4I Vice President.
Human Resource Group Edwin A. Kraft (18), age 40
. Vice President.
Customer Service Group Lawrence D. Ratllff (14), age 42 Vice President, Power Production Michael C. Slota-(15). age 41 fice President, Sales ahd Marketing GAS OPERATIONS John T. Ackerman (17), age 47 President and Chief Jerry D. Geist
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(28), age 5f
'hairit)an and President Operating Officer James B. Mulcock, Jr.
(16),-age 49 Senior Vice President, Corporate Affairs and S8xetaiy DA "Zan" James (3), age 45 Vice Pi&ident Finance Planning. Rates M.Phyllis Bourque (2), age 41 Vice President, Gas Supply Judith A. Zanottl (3), age 49.,
Vice President, Human Reso and Staff Services Max H. Maerkl (4);age 48 Senior Vice President and Chief Financial Officer BillyD. lackey (15), age 5Z
~ Vice President and
'Corporate Controller Joellyn K. Murphy (7),age43 Ufces John Renner
. (2). age 60, Vice President, Processing and San Juan Operations James A. Hunter (I), age'46
=. Vice President, Marketing and Public Affairs David J. Davis (5), age 44 Vice President, Metropolitan Operations, WIIHam J. Real (10), age 40 Vice President, Operations and Engineering,
'k Terry D. Rlster (17);age 37 Vice President, Regulatory and Business Policy, Mitchell J. Marzec (13)', age 41 Treasurer Karen A. Knight (13), age 49 Manager of Stockholder Services and Assistant Secretary Vice President; Regional Operations Andrew ILVogt (2), age 38
,Controller and Assistant Secretary
'ember of Audit Committee t Member of Executive Committee
(
)YearsofservicewithPNMor a PNM controlled affiliate, Ages and years of service as of December 31, 1988.
SUBSIDIARIES
'utherW.Reynolds, fr.
(2), age 53
'ice President.
Robert B. Rountree Marketing Development (40), age 64 '
- Chairman, Robert M. Wilson (11). age 43 James F. Jennings, Jr.
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Controller and (5);age 55 Assistant Secretary President and Chief Executive Officer
'arilyn Mason-Plunkett (4), age 40.
SUNBELT MININGCOMPANY.INC.
Director Rates and Regulation Robert B. Rountree, and Assistant Secreta'/
(40), age 64
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- Chairman, Martin A. Cllfton "
'16),
age 47 Vice President, Finance PARAGON RESOURCES.INC,
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Max H. Maerkl (4), age 48 Chafrman and President r
S
r PUBLIC SERVICE COMPANYOF NEW MEXICO ALVARADOSQUARE ALBUQUERQUE, NEW MEXICO87158 TELEPHONE (505) 848-2700 o
1 989 Pvouc SGwee Cow'aNv m Nev Mcaco DESIGN:
LYNDAK. CRISPINO PHOTOGRAPHY.
QVAKARSLANIAN STUDIO 7