TNMP reaches Settlement in Principle in System Resiliency Plan

Rhea-AI Summary

TNMP, a subsidiary of TXNM Energy (NYSE: TXNM), has reached a settlement in principle regarding its System Resiliency Plan. The company filed a motion to abate the procedural schedule, which was approved by the administrative law judge. The plan includes $600 million in capital investments and $151 million in related costs over 3 years, aimed at enhancing the distribution system's safety and reliability. Parties involved must file a formal settlement agreement or status update by December 5, 2024. The plan was developed using a data-driven approach to address various resiliency events affecting TNMP's distribution system.

Positive

• Reached settlement in principle for System Resiliency Plan
• $600 million capital investment plan approved
• Comprehensive system upgrade to improve infrastructure reliability

Negative

• $751 million total investment cost may impact financial metrics
• Three-year implementation period indicates extended capital expenditure

News Market Reaction – TXNM

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ALBUQUERQUE, N.M., Nov. 19, 2024 /PRNewswire/ -- TNMP, a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM), filed an unopposed joint motion yesterday to abate the procedural schedule in its System Resiliency Plan filing, including the hearing on the merits that is currently scheduled for November 19-20, 2024. The administrative law judge approved TNMP's request.

The parties participating in this proceeding have reached a settlement in principle, or are unopposed to the settlement in principle, and require time to memorialize and file a formal settlement agreement. The filing requests an order cancelling the hearing on the merits, abating the scheduling order, and requiring parties to file a settlement agreement or a joint status update on settlement by December 5, 2024.

TNMP's filed System Resiliency Plan includes measures totaling $600 million of capital investments and $151 million of other related costs over 3 years and was developed using a comprehensive and data-driven approach which evaluated various types of resiliency events posing material risk to the safe and reliable operation of TNMP's distribution system.

Yesterday's filing and the application are available at https://www.txnmenergy.com/investors/rates-and-filings/tnmp-puct-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 TXNM's System Resiliency Plan investment amount?

TXNM's System Resiliency Plan includes $600 million in capital investments and $151 million in related costs, totaling $751 million over 3 years.

When will TXNM file the formal settlement agreement for the System Resiliency Plan?

TXNM must file either a settlement agreement or a joint status update on settlement by December 5, 2024.

What is the purpose of TXNM's System Resiliency Plan?

The plan aims to address various resiliency events that pose material risk to the safe and reliable operation of TNMP's distribution system through comprehensive infrastructure improvements.