PNM Files for 2024 Rate Change
Public Service Company of New Mexico (PNM) has filed a request for a rate change with the New Mexico Public Regulation Commission, projecting a net average residential customer bill increase of 0.9% in 2024. This filing seeks recovery on a total rate base of $2.7 billion, an increase of $336 million from its last filing in December 2016. The requested increase in retail non-fuel revenues amounts to $63.8 million, reflecting a 10.25% return on equity. If approved, new rates will take effect by January 1, 2024.
- Requested rate change reflects investments in transmission and distribution infrastructure.
- Overall average monthly residential bill increase is modest at $0.75, due to cost reductions from transitioning to cleaner energy.
- The total rate base increase of $336 million may concern shareholders about rising operational costs.
- The transition may involve risks associated with maintaining key personnel and customer relationships.
Net Average Residential Customer Bill Impact of
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
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.
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2021 consolidated operating revenues of
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Lisa Goodman | Ray Sandoval | |
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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.
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.
FAQ
What is the expected impact of PNM's rate change filing?
What is the total rate base PNM is seeking recovery for?
How much does PNM plan to increase retail non-fuel revenues?
When will the new rates take effect if approved?
