Hearing Examiner Issues Recommendation in PNM General Rate Case

ALBUQUERQUE, N.M., Aug. 4, 2016 /PRNewswire/ -- The Hearing Examiner issued a recommended decision on Aug. 4, 2016 in the general rate case filing of Public Service Co. of New Mexico (PNM), a wholly owned subsidiary of PNM Resources PNM. PNM made the filing with the New Mexico Public Regulation Commission (Commission) on Aug. 27, 2015 for a $123.5 million (which includes $2 million of fuel) increase to its revenue requirement.

The Hearing Examiner's recommendation reflects a $41.3 million increase to PNM's revenue requirement (which excludes approximately $60 million of fuel adjustments primarily related to the new Westmoreland coal contract savings and the reclassification of certain costs to the renewable rider).

"We are deeply disappointed with the Hearing Examiner's recommendation as it does not represent a fair balance between the interests of customers and shareholders," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "The rate case represents a request to recover the $655 million PNM has invested in its system since 2011 to provide safe, reliable, affordable and environmentally responsible electricity to customers. We plan to file strong exceptions with the Commission that emphasize the importance of recovering our investments."

The Hearing Examiner's recommendation includes the following key factors:

The Commission had previously suspended rates through Aug. 31, 2016 and is expected to consider the recommendation before the end of the suspension period. The Commission has the authority to suspend the proposed change in rates one additional month, but not beyond Oct. 1, 2016.

"We have already taken action to temporarily offset the effects of the delay in rate implementation," said Vincent-Collawn. "As a result, we expect to remain within our original 2016 guidance."

Accordingly, management narrowed the PNM Resources 2016 consolidated ongoing earnings guidance to $1.55 to $1.65 per diluted share from the previously stated guidance of $1.55 to $1.76 per diluted share. 

PNM is now awaiting a final order from the Commission. Depending on the contents of the order, it may be necessary to adjust future expenses to align with the revenue levels permitted by the Commission in order to maintain PNM's investment grade credit ratings.

The recommended decision and other certain documents related to PNM's rate filing can be found at http://www.pnmresources.com/investors/rates-and-filings.aspx.

Background:

PNM Resources PNM is an energy holding company based in Albuquerque, N.M., with 2015 consolidated operating revenues of $1.4 billion. Through its regulated utilities, Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP), PNM Resources has approximately 2,787 megawatts of generation capacity and provides electricity to more than 760,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website at www.PNMResources.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements made in this news release that relate to future events or PNM Resources, Inc.'s ("PNMR"), Public Service Company of New Mexico's ("PNM"), or Texas-New Mexico Power Company's ("TNMP") (collectively, 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. PNMR, 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, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR'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 and Form 10-Q filings with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.

Non-GAAP Financial Measures

GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized impairments on available-for-sale securities, and certain non-recurring or infrequent items. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings; therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.

Logo - http://photos.prnewswire.com/prnh/20151104/284109LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hearing-examiner-issues-recommendation-in-pnm-general-rate-case-300309688.html

SOURCE PNM Resources, Inc.