TNMP Files Base Rate Review

Rhea-AI Summary

TNMP (NYSE: TXNM) filed a base rate review on Nov 17, 2025 requesting recovery of $2.8 billion rate base as of June 30, 2025, a requested ROE of 10.4% and a 47.54% equity ratio. Current authorized metrics are $835 million rate base, 9.65% ROE and 45% equity. The filing seeks to recover higher O&M, updated depreciation and deferred tax amortizations while excluding interest increases tied to a proposed parent acquisition refinancing. Schedule 1 shows a $141.8 total revenue requirement increase and a $33.8 net rate increase. TNMP also requests a separate $20.5 million five-year rider for Hurricane Beryl restoration. New rates would be effective mid-2026 if approved by the Public Utility Commission of Texas.

Positive

• Requested rate base of $2.8 billion as of June 30, 2025
• Requested return on equity of 10.4%, up from 9.65%
• Net rate increase of $33.8 (schedule total)
• Separate Hurricane Beryl rider of $20.5 million recoverable over five years

Negative

• Increased O&M drivers totaling $33.6 in the schedule
• Total revenue requirement increase of $141.8 in Schedule 1
• Transmission Cost/Distribution Cost impacts include $85.4 TCRF expense
• Rate changes are subject to PUCT approval; effective timing mid-2026

ALBUQUERQUE, N.M., Nov. 17, 2025 /PRNewswire/ -- TNMP, the wholly-owned subsidiary of TXNM Energy (NYSE: TXNM) in Texas, filed its anticipated base rate review on Friday.

The filing reflects significant growth of TNMP's system over the last 7 years since the previous base rate filing.

TNMP requests recovery of $2.8 billion of rate base as of June 30, 2025, a requested return on equity of 10.4% and a 47.54% equity ratio. Current rates are based on rate base of $835 million, an allowed return on equity of 9.65% and a 45% equity ratio.

The request also incorporates increased operations and maintenance costs, which are not recovered through semi-annual Transmission Cost of Service (TCOS) and Distribution Cost Recovery Factor (DCRF) filings, changes in deferred federal income tax amortizations and updates to depreciation rates.

The request is adjusted to exclude increases in interest expense resulting from the refinancing of debt associated with the proposed acquisition of TNMP's parent company, TXNM Energy.

Schedule 1 below summarizes the key components of the rate filing.

In addition, TNMP is requesting $20.5 million in rate rider recovery associated with Hurricane Beryl restoration costs. The proposed rider would be recovered over a five-year period and is separate from the base rate request.

If approved by the Public Utility Commission of Texas, new rates are expected to become effective in mid-2026.

The filing can be found at: https://www.txnmenergy.com/investors/rates-and-filings/tnmp-puct-filings.aspx.

Schedule 1
2025 TNMP Rate Case Drivers	Transmission	TX-Retail	Total
ROE(1)	$       5.6	$         3.7	$        9.3
Cost of Debt(2)	(5.5)	7.8	2.3
Change in Capital Structure(3)	1.8	3.1	5.0
WACC Change Subtotal	$       1.9	$      14.7	$     16.5
Core Rate Base Growth(4)	1.3	16.4	17.7
Increased O&M(5)	2.7	30.9	33.6
Change in Excess ADFIT Amortization	3.9	5.0	8.9
Change in Depreciation Rates(6)	0.8	(6.5)	(5.7)
Merger Related Debt Cost Credit	(6.3)	(7.9)	(14.2)
Other	0.3	(0.7)	(0.4)
TCRF Expense		85.4	85.4
Total Revenue Requirement Increase	$     4.5	$     137.2	$     141.8
Revenue Offset (TCRF & Load Growth)	-	(108.0)	(108.0)
Net Rate Increase	$     4.5	$       29.3	$       33.8
Notes:
(1) ROE for Transmission reflects the increase from 9.65% (as authorized in last rate case) to 10.4%. For TX-Retail the increase reflects moving from 10% (DCRF alternative WACC methodology) to 10.4%.
(2) Cost of Debt for Transmission reflects the decrease from 6.45% (as authorized in last rate case) to 5.6%. For TX-Retail the increase reflects moving from 4.64% (DCRF alternative WACC methodology) to 5.6%.
(3) Equity weighting in the WACC reflects the requested 47.54% equity compared to the 45% equity currently authorized.
(4) Core Rate Base growth includes Return on, Dep and TOTI related to G&I investments since the previous rate case, Distribution investments from January 2025 through June 2025, and offsetting impacts of ADIT on transmission investments.
(5) Major O&M drivers include: - Vegetation Management - $12M - Headcount increases (118 new positions) - $6M - Catastrophe Reserve increase - $6M - Insurance Premiums (inc. wildfire) - $3M - Other normal inflation, offset with higher A&G capital loads

About TXNM Energy:
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

FORWARD-LOOKING STATEMENTS
Statements made in this news release for TXNM Energy, Inc. ("TXNM") 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 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 and TNMP caution readers not to place undue reliance on these statements. TXNM'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. These forward-looking statements generally include statements regarding the proposed merger, including any statements regarding the expected timetable for completing the proposed transaction, the ability to complete the merger, the expected benefits of the merger, projected financial information, future opportunities, and any other statements regarding TXNM Energy's and Blackstone Infrastructure's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. 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 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 and TNMP caution readers not to place undue reliance on these statements. TXNM'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 base rate changes did TNMP (TXNM) request on Nov 17, 2025?

TNMP requested recovery of $2.8 billion rate base, a 10.4% ROE and a 47.54% equity ratio.

How much is the net rate increase in TNMP's Nov 17, 2025 filing (TXNM)?

Schedule 1 shows a $33.8 net rate increase after offsets.

What is the size and term of the Hurricane Beryl rider TNMP (TXNM) requested?

TNMP requested a separate $20.5 million rider to be recovered over five years.

When would TNMP's new rates take effect if approved (TXNM)?

If approved by the Public Utility Commission of Texas, new rates are expected to be effective in mid-2026.

What major O&M drivers did TNMP list in the Nov 17, 2025 filing for TXNM?

Major O&M drivers include vegetation management $12M, 118 new positions $6M, catastrophe reserve $6M, and insurance $3M.

How did TNMP adjust the filing for interest expense related to TXNM Energy (TXNM)?

The request is adjusted to exclude interest expense increases from refinancing debt tied to the proposed parent acquisition.