PUCT Approves TNMP General Rate Review Settlement

ALBUQUERQUE, N.M., Dec. 20, 2018 /PRNewswire/ -- TNMP, the wholly owned Texas transmission and distribution utility subsidiary of PNM Resources PNM, received unanimous approval today by the Public Utilities Commission of Texas (PUCT) of its unopposed general rate review settlement. The settlement was filed with the PUCT on Nov. 2, 2018.

The settlement provides a return on equity of 9.65 percent and a capital structure of 55 percent debt and 45 percent equity. The new rates, TNMP's first since current rates were approved in 2011, will be implemented Jan. 1, 2019 and incorporate the return of federal tax savings to customers.

The settlement reflects a $10 million net increase to base rates for retail and wholesale customers and a $73 million increase to rate base, which is incremental to previous Transmission Cost of Service (TCOS) filings and Advanced Metering System (AMS) investments. Consistent with TNMP's filing, the increase includes the integration of AMS recovery into base rates, including collection of the remaining unrecovered investment. 

Once available, documents related to the rate filing can be found at: http://www.pnmresources.com/investors/rates-and-filings.aspx.

Following the implementation of new rates, TNMP expects to make a Transmission Cost of Service filing in January 2019.

Background:

PNM Resources PNM is an energy holding company based in Albuquerque, N.M., with 2017 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,580 megawatts of generation capacity and provides electricity to more than 773,000 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.

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SOURCE PNM Resources, Inc.