TNMP System Resiliency Plan Approved

Rhea-AI Summary

TNMP, a subsidiary of TXNM Energy (NYSE: TXNM), received approval from the Public Utility Commission of Texas for its 2025-2027 System Resiliency Plan. The plan involves a $545.8 million investment over three years to enhance the safety and reliability of TNMP's distribution system.

The comprehensive plan includes eight key Resiliency Measures:

• Distribution System Resiliency
• Distribution System Protection Modernization
• Vegetation Management
• Wildfire Mitigation
• Flood Mitigation
• Enhanced Operations System Technology
• Cybersecurity
• Physical Security Resiliency

The investments and program costs will be incorporated into future Distribution Cost Recovery Factor filings. TXNM Energy serves over 800,000 customers across Texas and New Mexico through its regulated utilities, TNMP and PNM.

Positive

• Major $545.8M infrastructure investment approved by regulators
• Comprehensive system upgrade to improve service reliability
• Strategic focus on risk mitigation and system modernization

Negative

• Significant capital expenditure may impact company's financial metrics
• Future rate increases likely through Distribution Cost Recovery Factor

ALBUQUERQUE, N.M., March 13, 2025 /PRNewswire/ -- Today, the Public Utility Commission of Texas (PUCT) approved the 2025-2027 System Resiliency Plan filed by TNMP, a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM).

Under the plan, TNMP will invest $545.8 million over three years to mitigate various types of resiliency events posing material risk to the safe and reliable operation of TNMP's distribution system. The plan also encompasses operations and maintenance expenses associated with several programs, including vegetation management and wildfire mitigation.

TNMP's filed System Resiliency Plan was developed using a comprehensive and data-driven approach, outlining eight different Resiliency Measures with associated programs and infrastructure impacts to improve the system's ability to prevent, withstand, mitigate and/or more promptly recover from resiliency events: Distribution System Resiliency, Distribution System Protection Modernization, Vegetation Management, Wildfire Mitigation, Flood Mitigation, Enhanced Operations System Technology, Cybersecurity and Physical Security Resiliency.

Investments and program costs are expected to be included in future Distribution Cost Recovery Factor filings.

Filings related to TNMP's application can be found 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 the total investment amount in TNMP's System Resiliency Plan for 2025-2027?

TNMP will invest $545.8 million over three years in its System Resiliency Plan.

What are the main components of TNMP's System Resiliency Plan?

The plan includes eight Resiliency Measures: Distribution System Resiliency, Protection Modernization, Vegetation Management, Wildfire Mitigation, Flood Mitigation, Enhanced Operations Technology, Cybersecurity, and Physical Security.

How will TNMP recover the costs of the System Resiliency Plan?

The investments and program costs will be included in future Distribution Cost Recovery Factor filings.

How many customers does TXNM Energy serve through its utilities?

TXNM Energy serves more than 800,000 homes and businesses across Texas and New Mexico through TNMP and PNM.