Recommendation to Approve Unopposed Stipulation in PNM 2025 Rate Request

Rhea-AI Summary

PNM, a subsidiary of TXNM Energy (NYSE: TXNM), received a positive recommendation from New Mexico Public Regulation Commission (NMPRC) Hearing Examiners to approve an unopposed stipulation for its 2025 Rate Request. The stipulation includes a $105.0 million increase to PNM's revenue requirements, based on a 9.45% return on equity and 51% equity capitalization structure on $3.0 billion of rate base.

The rate increase will be implemented in two phases: 50% effective July 1, 2025, and the remaining portion on April 1, 2026. The agreement received broad support from multiple stakeholders, including the NMPRC Utility Division Staff, New Mexico Department of Justice, and various local authorities and organizations. This represents an improvement from PNM's current authorized rates, which are based on a 9.26% return on equity and 50% equity capitalization structure.

ALBUQUERQUE, N.M., April 9, 2025 /PRNewswire/ -- The Hearing Examiners of the New Mexico Public Regulation Commission (NMPRC) issued a Certification of Stipulation recommending approval of the unopposed stipulation filed by PNM, a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM), and parties in PNM's 2025 Rate Request application.

The stipulation was filed in November 2024 and hearings were held in February 2025. If approved by the NMPRC, customer rates are phased in under the stipulation with 50% of the increase effective July 1, 2025, and the remaining increase effective April 1, 2026.

The stipulated $105.0 million increase to PNM's revenue requirements is based on a 9.45% return on equity and a 51% equity capitalization structure on $3.0 billion of rate base. PNM's currently authorized rates are based on a 9.26% return on equity and 50% equity capitalization structure.

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
The Certification of Stipulation and other documents related to 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 total rate increase approved in PNM's 2025 Rate Request?

The stipulation includes a $105.0 million increase to PNM's revenue requirements based on a 9.45% return on equity.

When will PNM's new rate increases take effect in 2025-2026?

The rate increase will be phased in with 50% effective July 1, 2025, and the remaining increase effective April 1, 2026.

How does PNM's new return on equity compare to its previous rate?

The new stipulation provides a 9.45% return on equity, up from the previously authorized 9.26%.

Which major stakeholders supported PNM's 2025 rate increase request?

Major supporters include NMPRC Utility Division Staff, New Mexico Department of Justice, Albuquerque Bernalillo County Water Authority, City of Albuquerque, and several other organizations.

What is the rate base value for PNM's 2025 rate request?

The stipulation is based on a $3.0 billion rate base with a 51% equity capitalization structure.