Business description of PNM-Resources-Inc from last 10-k form

iii

     Year Ended December 31,  
PNM Plan    2010     2009     2008  

Discount rate for determining December 31 PBO

     5.72     6.47     7.25

Discount rate for determining net periodic benefit cost (income)

     6.47     7.25     6.88

Expected return on plan assets

     8.75     8.75     8.50

Rate of compensation increase

     N/     N/     N/

TNMP Plan

      

Discount rate for determining December 31 PBO

     5.50     6.31     7.25

Discount rate for determining net periodic benefit cost (income)

     6.31     7.25     6.72

Expected return on plan assets

     8.75     8.75     8.50

Rate of compensation increase

     N/     N/     N/
     Year Ended December 31,  
     2010     2009     2008  
     (In thousands)  

PNM Plan

      

Service cost

   $ 419      $ 417      $ 713   

Interest cost

     7,650        7,388        8,344   

Expected return on plan assets

     (5,572     (5,832     (6,128

Amortization of net (gain) loss

     5,489        3,290        4,816   

Amortization of prior service credit

     (4,143     (4,262     (5,687
                        

Net periodic benefit cost

   $ 3,843      $ 1,001      $ 2,058   
                        

TNMP Plan

      

Service cost

   $ 289      $ 260      $ 284   

Interest cost

     711        733        716   

Expected return on plan assets

     (514     (495     (486

Amortization of net (gain) loss

     (195     (265     (271

Amortization of prior service cost

     60        60        60   
                        

Net periodic benefit cost

   $ 351      $ 293      $ 303   
                        
     Year Ended December 31,  
PNM Plan    2010     2009     2008  

Discount rate for determining December 31 APBO

     5.59     6.42     7.25

Discount rate for determining net periodic benefit cost

     6.42     7.25     6.91

Expected return on plan assets

     8.75     8.75     8.50

Rate of compensation increase

     N/     N/     N/

TNMP Plan

      

Discount rate for determining December 31 APBO

     5.59     6.42     7.25

Discount rate for determining net periodic benefit cost

     6.42     7.25     6.91

Expected return on plan assets

     6.70     6.70     6.50

Rate of compensation increase

     N/     N/     N/