ALBUQUERQUE, N.M., Jan. 4, 2024
/PRNewswire/ -- The New Mexico Public Regulation Commission
(NMPRC) issued an order in the application for a 2024 change in
customer base rates by Public Service Company of New Mexico (PNM), a wholly-owned subsidiary of
PNM Resources (NYSE: PNM).
The order modified the recommended decision in the case and
equates to an estimated increase in base rates of $15.3 million, based on a 9.26% return on equity
and a 50% equity capitalization structure on $2,557 million of rate base. PNM had requested a
$63.8 million increase to base rates.
PNM's current authorized rates are based on a 9.575% return on
equity with a 50% equity capitalization ratio.
"We are disappointed with this outcome after holding rates
steady for the past six years," said Pat Vincent-Collawn,
Chairman and CEO of PNM Resources. "The transition to clean
energy means our system is changing rapidly, requiring investments
to upgrade the grid to maintain reliability while bringing
solutions to customers at affordable prices. As we move
forward it will require collaboration by stakeholders to achieve
the clean energy transition while preserving the financial health
of the utility."
In addition to the changes made to the return on equity and
equity capitalization structure, the final order also includes
adjustments related to traditional legacy power sources:
- Disallowance of $64 million net
rate base investments in the Four Corners coal plant,
- No return on $39 million of rate
base associated with the Palo Verde leasehold improvements
regulatory asset, as well as a
- Separate rate rider to refund $38
million associated with expiration of Palo Verde leases over
two years.
The order also postpones recovery of $55 million of rate base investments that may be
requested again in PNM's next filing and $9 million of adjustments to forecasted annual
costs.
PNM will evaluate the final order and consider its next steps,
including the potential appeal of certain issues.
Additionally, PNM plans to file its next rate case during 2024 with
rates requested to be implemented during 2025.
ADDITIONAL DETAILS ON WEBSITE
Additional information
detailing the estimated ongoing earnings impacts of the order,
including continuation of the 5% long-term earnings growth target,
are available at
https://www.pnmresources.com/investors/events-and-presentations.aspx.
Customer rates under the order are expected to take effect in
January 2024. The order and additional materials pertaining
to the filings are available at
https://www.pnmresources.com/investors/rates-and-filings.aspx.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2022
consolidated operating revenues of $2.2
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 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:
Analysts
|
Media
|
Lisa Goodman
|
Ray Sandoval
|
(505) 241-2160
|
(505)
241-2782
|
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. 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 PNM Resources, Inc.