TXNM Energy Secures Rate Approvals for PNM and TNMP Services
TXNM Energy's Rate Approvals: A New Phase for PNM and TNMP
In a significant development, TXNM Energy has announced that its subsidiaries, PNM and TNMP, have received essential regulatory approvals for their pending rate recovery applications. This step indicates a promising future for both the companies and their customers as they work towards enhancing their energy delivery services.
Approval of PNM's 2025 Rate Request
PNM has successfully obtained approval from the New Mexico Public Regulation Commission (NMPRC) for an unopposed stipulation related to its 2025 Rate Request application. This stipulation outlines critical changes to the customer rates that aim to support the revenue requirements for the company.
The NMPRC has agreed to implement the rate changes in two phases, with 50% of the increase set to take effect approximately 45 days after the approval. The second part of the increase will follow six months later, allowing customers to gradually adjust to the new rates.
This adjustment will involve a significant increase of $105 million in PNM's revenue requirements, calculated on a 9.45% return on equity supported by a 51% equity capitalization of the $3.0 billion rate base. Notably, these conditions have shifted from previous rates, which were based on a slightly lower return on equity of 9.26% and a 50% equity capitalization structure.
TNMP's Interim Distribution Cost Recovery Approval
Meanwhile, TNMP has also received approval from the Public Utility Commission of Texas (PUCT) for its latest Distribution Cost Recovery Factor application. This approval marks an important milestone for TNMP as it works to enhance its customer service capabilities.
The approved annual increase of $25 million will allow TNMP to recover $176.6 million in incremental distribution costs at an authorized return on equity of 9.65%. This plan reflects an authorized capital structure composed of 55% debt and 45% equity, which is crucial for the sustained operation of their services. Customers can expect to see these new rates come into effect in approximately 45 days.
Background on TXNM Energy
TXNM Energy operates with a mission to deliver energy solutions to a vast customer base, covering over 800,000 homes and businesses in both Texas and New Mexico. The company's commitment to reliability and service is evident in its ongoing investment in infrastructure and service delivery enhancements.
With its subsidiaries, TNMP and PNM, TXNM Energy continues to position itself as a leader in the energy sector, ensuring that customers receive safe and efficient services. The company is dedicated to ongoing improvements to meet the growing energy demands of its communities.
Contact Information
For any inquiries, you can reach out to the following:
Analysts Contact
Lisa Goodman
(505) 241-2160
Media Contact
Corporate Communications
(505) 241-2743
Frequently Asked Questions
What approvals did TXNM Energy secure recently?
TXNM Energy announced that both PNM and TNMP received regulatory approvals for their pending rate recovery filings.
How does the rate increase affect PNM's customers?
The rate increase for PNM will be phased in, allowing customers to adapt gradually to the new charges.
What is the expected timeline for the implementation of new rates?
The new rates will become effective in approximately 45 days following the approvals received.
What is the increase in PNM's revenue requirements?
PNM's revenue requirements will increase by $105 million, based on a 9.45% return on equity.
Who can I contact for more information regarding TXNM Energy?
You can reach Lisa Goodman for analyst queries at (505) 241-2160, and the media contact number is (505) 241-2743.
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