PNM and parties file Unopposed Stipulation in 2025 Rate Request
ALBUQUERQUE, N.M., Nov. 26, 2024 /PRNewswire/ -- PNM, a wholly-owned subsidiary of TXNM Energy (NYSE:TXNM), and parties in its 2025 Rate Request application filed an unopposed comprehensive stipulation with the New Mexico Public Regulation Commission (NMPRC).
The stipulation provides for a phased-in approach to the increase in customer rates supporting continued investments in the grid to meet changing customer needs.
The $105.0 million increase to PNM's revenue requirements in the stipulation is based on a 9.45% return on equity and a 51% equity capitalization structure on $3.0 billion of rate base. The stipulation allows for a regulatory asset or liability to be established for any difference in Energy Storage Agreement costs from the amount filed in this case up until PNM's next filed case.
The stipulation also maintains the previously approved depreciation rates for Four Corners Power Plant and modifies PNM's current amortization period for unprotected Excess Deferred Federal Income Tax regulatory liabilities. In addition, a reduction to operating expenses is incorporated to achieve the stipulated amount of $105.0 million. The agreement also includes a $1.5 million contribution to the PNM Good Neighbor Fund to provide additional bill assistance to qualified customers.
Customer rates under the stipulation are phased in with 50% of the increase effective July 1, 2025, and the remaining increase effective April 1, 2026.
PNM's currently authorized rates are based on a 9.26% return on equity and 50% equity capitalization structure. The requested increase of $174.3 million included a 10.45% return on equity and a 52.5% equity capitalization structure on $3.0 billion of rate base.
Parties joining PNM on the stipulation include Utility Division Staff of the New Mexico Public Regulation Commission, the New Mexico Department of Justice, Albuquerque Bernalillo County Water Utility Authority, City of Albuquerque, Coalition for Clean Affordable Energy, Coalition for Community Solar Access, County of Bernalillo, New Energy Economy, New Mexico Affordable Reliable Energy Alliance, The Kroger Co., Walmart Inc and Western Resource Advocates. Other intervening parties to the application, Onward Energy Holdings, LLC and Renewable Energy Industries Association of New Mexico, do not oppose the settlement.
ADDITIONAL DETAILS ON WEBSITE
Additional information on the estimated ongoing earnings impacts of the stipulation is available at https://www.pnmresources.com/investors/events-and-presentations.aspx.
The stipulation is subject to NMPRC approval. A scheduling conference is planned for December 4 to modify the existing procedural schedule. Hearings continue to be expected to begin in mid-February. Today's filing and the application are available at https://www.txnmenergy.com/investors/rates-and-filings/pnm-nmprc-filings.aspx.
Background:
TXNM Energy (NYSE:TXNM), an energy holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company's website at www.TXNMEnergy.com.
Contacts:
Analysts Media
Lisa Goodman Corporate Communications
(505) 241-2160 (505) 241-2743
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for TXNM Energy, Inc. ("TXNM"), 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. TXNM, 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, TXNM, PNM, and TNMP caution readers not to place undue reliance on these statements. TXNM'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.
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SOURCE TXNM Energy, Inc.