Business & Finance
Business and Finance
Business and Finance
Thu, January 20, 2011 PNM Resources Announces Approval of TNMP Electric Rate Stipulation
ALBUQUERQUE, N.M.--([ BUSINESS WIRE ])--PNM Resources' (NYSE: PNM) electric transmission and distribution utility, Texas-New Mexico Power, received unanimous approval today by Texas regulators to increase annual revenues by $10.25 million beginning Feb. 1.
The revenue increase is based on an unopposed stipulation reached by key parties in December and approved today by the Public Utilities Commission of Texas. The new rates include a return on equity of 10.125 percent and a capital structure of 55 percent debt and 45 percent equity, based on a rate base of $448.2 million.
The rate increase impacts retail electricity providers, or REPs, that serve approximately 230,000 customers in 76 cities in TNMP's service territory in Texas. REPs likely will pass the increase on to their retail customers. Based on 1,200 kilowatt-hours of electricity usage per month, residential bills would increase an average of $2.62 monthly if REPs pass the increase on to customers.
The annual financial impact of the new rates is expected to add approximately $6.7 million of after-tax earnings, or $0.07 per diluted share.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release that relate to future events or TNMP's (the "Company") expectations, projections, estimates, intentions, goals, targets and strategies, 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 the Company assumes no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, the Company cautions readers not to place undue reliance on these statements. The Companya™s business, financial condition, and operating results are influenced by many factors, which are often beyond its control that can cause actual results to differ from those expressed or implied by the forward-looking statements. These factors include the Companya™s ability to access the financial markets, including actions by ratings agencies affecting the Companya™s credit ratings; the recession and its impacts on the electricity usage of the Companya™s customers; state and federal regulatory and legislative decisions and actions, including appeals of prior regulatory proceedings; the performance of transmission systems; changes in the Electric Reliability Council of Texas protocols; insurance coverage available for claims made in litigation; fluctuations in interest rates; weather; seasonality and other changes in supply and demand in the market for electric power; the impact of mandatory energy efficiency measures on customer energy usage; changes in the competitive environment in the electric industry;; the risks associated with completion of transmission, distribution, and other projects, including construction delays and unanticipated cost overruns; the outcome of legal proceedings; changes in applicable accounting principles; and the performance of state, regional, and national economies.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2009 consolidated operating revenues from continuing operations of $1.6 billion. Through its utility and energy subsidiaries, PNM Resources has approximately 2,700 megawatts of generation resources and serves electricity to more than 875,300 homes and businesses in New Mexico and Texas. The company also has a 50-percent ownership of Optim Energy, which owns nearly 1,200 megawatts of generation resources. For more information, visit the companya™s Web site at [ www.PNMResources.com ].
