Net Average Residential Customer Bill Impact of
0.9% in 2024
ALBUQUERQUE, N.M., Dec. 5, 2022
/PRNewswire/ -- Public Service Company of New Mexico (PNM), wholly-owned subsidiary of
PNM Resources, Inc. (NYSE: PNM), today filed its anticipated
request for a change in electricity customer rates with the New
Mexico Public Regulation Commission (NMPRC).
The requested change primarily reflects investments in
transmission and distribution infrastructure, largely offset by
cost reductions resulting from PNM's transition to lower-cost,
clean energy generation resources. The retirement of the San Juan
Generating Station and expiration of leased capacity from the Palo
Verde Nuclear Generating Station have reduced costs within base
rates along with reductions to fuel costs recovered through a rate
rider.
The filing seeks recovery on total rate base of $2.7 billion, an increase of $336 million from PNM's last general rate filing
in December 2016. The requested
$63.8 million increase in retail
non-fuel revenues incorporates a 10.25% return on equity and 52%
equity ratio. After consideration of changes to other portions of
customer bills, primarily a decrease in fuel costs, the average
monthly residential customer bill impact is $0.75 per month, or 0.9%.
If approved by the NMPRC, the proposed change in customer rates
would take effect by January 1,
2024.
The rate filing and associated documents 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 2021
consolidated operating revenues of $1.8
billion. Through its regulated utilities, PNM and TNMP, PNM
Resources provides electricity to approximately 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 2.7 gigawatts of 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:
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Analysts
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Media
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Lisa Goodman
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Ray Sandoval
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(505)
241-2160
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505)
241-2782
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Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995
Statements 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.
Additionally, there are risks and uncertainties in connection with
the proposed acquisition of us by AVANGRID which may adversely
affect our business, future opportunities, employees and common
stock, including without limitation, (i) the expected timing and
likelihood of completion of the pending Merger, including the
timing, receipt and terms and conditions of any remaining required
governmental and regulatory approvals of the pending Merger that
could reduce anticipated benefits or cause the parties to abandon
the transaction, (ii) the occurrence of any event, change or other
circumstances that could give rise to the termination of the Merger
Agreement, (iii) the risk that the parties may not be able to
satisfy the conditions to the proposed Merger in a timely manner or
at all, and (iv) the risk that the proposed transaction could have
an adverse effect on the ability of PNMR to retain and hire key
personnel and maintain relationships with its customers and
suppliers, and on its operating results and businesses generally.
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
Measures
GAAP 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.
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SOURCE PNM Resources, Inc.