Phased-In Rate Path Proposed to Mitigate Customer Impact
ALBUQUERQUE, N.M., June 14, 2024 /PRNewswire/ — Public Service Company of New Mexico (PNM), wholly-owned subsidiary of PNM Resources, Inc. (NYSE: PNM), today filed a request for a change in electricity customer rates with the New Mexico Public Regulation Commission (NMPRC) to begin July 1, 2025.
The requested change reflects investments in transmission and distribution infrastructure, updated cost of capital and capital structure, battery storage resources previously approved in prior cases, alignment of Four Corners rate base recovery with its expected abandonment date, wildfire mitigation and insurance costs.
The request seeks recovery on total rate base of $3.0 billion, an increase of $423 million from PNM’s last general rate review, at a 52.5% equity ratio and a 10.45% return on equity. The requested $174.3 million increase in retail revenues is comprised of a $92.2 million increase in non-fuel base rates and an $82.1 million increase in pass-through fuel costs. The filing is based on a future test year with projected costs for the period July 1, 2025, through June 30, 2026.
To mitigate the customer impact, PNM has proposed a phased-in rate path under which 50% of the $92.2 million non-fuel rate impact would be implemented July 1, 2025, and the remaining impact implemented January 1, 2026.
Additional information on the filed request and phased-in implementation can be found at https://www.pnmresources.com/investors/events-and-presentations.aspx.
The rate request is subject to NMPRC approval. The filed rate request can be found at www.pnmresources.com/investors/rates-and-filings.aspx.
Background:PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2023 consolidated operating revenues of $1.9 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to more than 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 3.3 gigawatts of installed capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company’s website at www.PNMResources.com.
|
Contacts: |
|
|
Analysts |
Media |
|
Lisa Goodman |
Corporate Communications |
|
(505) 241-2160 |
(505) 241-2783 |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995Statements made in this news release for PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”), or Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies, including the unaudited financial results and earnings guidance, are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates and apply only as of the date of this report. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR’s, PNM’s, and TNMP’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company’s Form 10-K, Form 10-Q filings and the information included in the Company’s Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
Non-GAAP Financial MeasuresGAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company’s operations. The Company uses ongoing earnings and ongoing earnings per diluted share to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company’s calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management’s expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.
SOURCE PNM Resources, Inc.
