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.