PNM Resources, Inc. (Holding Co.)

Good day and welcome to the PNM Resources second quarter 2022 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Lisa Goodman, Executive Director of Investor Relations. Please go ahead.

Thank you, Dave, and good morning. Thank you, everyone, for joining us this morning for the PNM Resources second quarter 2022 earnings call. Please note that the presentation for this conference call and other supporting documents are available on our website at pnmresources.com. Joining me today are PNM Resources Chairman and CEO, Pat Vincent Kalon, President and Chief Operating Officer, Don Terry, and Senior Vice President and Chief Financial Officer, Lisa Eden. Before I turn the call over to Pat, I need to remind you that some of the information provided this morning should be considered forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995. We caution you that all of the forward-looking statements are based upon current expectations and estimates, and that PNM Resources assumes no obligation to update this information. For a detailed discussion of factors affecting PNM Resources results, please refer to our current and future annual reports on Form 10-K, quarterly reports on Form 10-Q, as well as reports on Form 8-K filed with the SEC. With that, I will turn the call over to Pat.

Thank you, Lisa. Good morning, everyone, and thank you for joining us today. Today is special. You get to pick the national day you want to celebrate with us, National Chocolate Chip Cookie Day, National IPA Day, or National White Wine Day. And I know, the choice don't come easy. On slide four, I'll start with our financial results. Ongoing earnings increased during the second quarter compared to last year, coming in at 57 cents. We are affirming our guidance for both 2022 and 2023. Don and Lisa will talk more about the detailed results and guidance considerations. During the second quarter, we announced the promotion of Don Terry to President and Chief Operating Officer and Lisa Eden to Senior Vice President and Chief Financial Officer. Many of you have already met with this team from their roles in the finance organization for over the last 20-some years. Both of them have been an integral part of our leadership team, and I congratulate them on their newest role. Tomorrow, we will file our reply brief at the New Mexico Supreme Court in our merger appeal. As you know, we've requested the court hear oral arguments and will be waiting to hear if the court grants this request. There is no requirement for the court to hear oral argument nor any timeframe for their consideration. As a reminder, there is also no statutory timeframe for a decision and we continue to expect a 12 to 18 month process from our initial filing in January. The process for appointing commissioners in New Mexico is also ongoing. The seven members of the nominating committee have been announced and the committee held its first meeting earlier this week, taking care of administrative items. According to their published schedule, candidate applications will be reviewed in October, interviews will be held November 7th and 8th, and finalist interviews and committee selections will be made November 14th. The committee must provide a list of at least five candidates, and the governor will select three individuals for appointment prior to the end of the year. These commissioners will be seated January 1st. The appointments will need to be confirmed by the Senate. However, they will be able to begin acting in their roles while pending confirmation. Before I turn it over to Dawn for updates on PNMs and PNMP, I will cover some quick ESG highlights on slide five. We retired Unit 1 of the San Juan Generating Station from service on June 30th. This is a big step in our exit from coal and the next step will be the full retirement of the plant when Unit 4 closes on September 30th. At that point, coal generation will comprise less than 10% of P&M's total generation portfolio and more than half of our resources will be carbon-free and moving towards our goal of 100% carbon-free by 2040. We have also joined a number of other utilities in EPRI's Climate Ready initiative. As the impacts of physical climate risk grow more prevalent each year, a resilient and adaptive grid has become increasingly critical. This collaboration will allow us to integrate consistent science-based information into our planning processes and prioritize the investments that will best serve the grid and our customers in the face of increasing climate challenges. These types of partnerships are a great way to leverage the strengths and expertise from different organizations as we develop new solutions to today's challenges, and it is a model that we practice throughout our business. We announced the partnership in June, with the University of New Mexico with a goal to expand internship programs in terms of state education and economic development efforts. In addition to our own internships, we committed to building a coalition of businesses and universities across the state to create equitable employment opportunities for college students and keep skilled graduates employed in the state. We have also partnered with Central New Mexico Community College in their continued efforts to further cybersecurity programs in the state. We brought together a tribal telecom utility with military cyber experts. The training event was part of the Department of Defense Innovative Readiness Training and was one of the first events focused on cybersecurity. Military personnel carried out a vulnerability assessment on the tribal utility and provided instruction to participants for building their own programs and assessments. These exercises are intended to defend critical infrastructure while leveraging military and community resources with grants available to bring opportunities to those who may not otherwise have access. As internet and data communications become increasingly important for tribal communities to grow and thrive, we were particularly motivated to bring the program to one of the tribal utilities in the state. You can read more about our support for tribal communities and our broader ESG initiatives on our website, where we have recently updated our reporting templates and annual sustainability report. With that, I will turn it over to Don for an operations update.