PNM reaches Settlement in Principle in 2025 Rate Request

Rhea-AI Summary

PNM, a subsidiary of TXNM Energy (NYSE: TXNM), has filed a joint notice with the New Mexico Public Regulation Commission (NMPRC) announcing a Settlement in Principle regarding its 2025 Rate Request. Parties involved, including the New Mexico Department of Justice and Walmart, have filed a motion to modify the procedural schedule and postpone the November 26, 2024 testimony deadline. The parties requested a scheduling conference for December 2024, while maintaining mid-February 2025 evidentiary hearings. The settlement remains subject to NMPRC approval.

Positive

• Settlement in Principle reached with multiple key stakeholders for 2025 Rate Request

Negative

• None.

Insights

Financial Analyst

The settlement in principle for PNM's 2025 rate request represents a significant regulatory development. Rate cases are important for utility companies as they directly impact future revenue streams and profitability. While specific terms aren't disclosed, reaching an agreement with major stakeholders including the Department of Justice and Utility Division Staff typically suggests a balanced outcome that could provide rate stability and predictable returns.

The involvement of multiple parties and the request for schedule modification indicates complex negotiations. For investors, utility rate cases are fundamental drivers of financial performance, as they determine the company's authorized return on equity and revenue requirements. The mid-February 2025 timeline for evidentiary hearings suggests potential implementation of new rates by mid-2025, affecting TXNM's revenue outlook for its PNM subsidiary serving over 800,000 customers.

ALBUQUERQUE, N.M., Nov. 15, 2024 /PRNewswire/ -- PNM, a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM), filed a joint notice with the New Mexico Public Regulation Commission (NMPRC) indicating several parties have reached a Settlement in Principle in PNM's 2025 Rate Request application.

In order to facilitate the completion of a comprehensive stipulation, parties filed an unopposed joint motion to request a modification to the procedural schedule in the case to vacate the November 26, 2024, testimony deadline. The motion requests a scheduling conference during the week of December 2, 2024, to modify the deadlines prior to evidentiary hearings, which are requested to remain scheduled to begin in mid-February 2025.

Parties to the joint notice and motion include the New Mexico Department of Justice, Albuquerque Bernalillo Water Utility Authority, Utility Division Staff, Bernalillo County, NM AREA and Walmart.

Any subsequent stipulation is subject to NMPRC approval.

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.

FAQ

What is the status of PNM's 2025 Rate Request with NMPRC?

PNM has reached a Settlement in Principle with several parties and filed a joint notice with NMPRC regarding its 2025 Rate Request application.

When are the evidentiary hearings scheduled for TXNM's PNM rate case?

The evidentiary hearings are scheduled to begin in mid-February 2025, pending confirmation at the December 2024 scheduling conference.

Which parties are involved in PNM's 2025 Rate Request settlement?

The parties include the New Mexico Department of Justice, Albuquerque Bernalillo Water Utility Authority, Utility Division Staff, Bernalillo County, NM AREA, and Walmart.