PNM Settles FERC Transmission Rate Case
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--
PNM Resources' (NYSE: PNM) New Mexico utility, PNM, today filed an
agreement with the Federal Energy Regulatory Commission that would
settle its transmission rate case submitted in October 2010.
The unopposed agreement requires FERC approval and does not impact
retail rates for New Mexico residential or business customers.
As permitted by FERC rules, in June 2011 PNM began billing at the higher
rates associated with the transmission case, subject to refund. Revenues
recorded by PNM since 2011 have been aligned with the agreed-to annual
increase of $3 million.
The agreement is a "black-box settlement," meaning the parties agreed to
a specific revenue number but no specific return on equity. The
settlement parties agreed not to oppose the concept of a formula-based
transmission rate filing as long as it is submitted within a year of the
pending case's approval by FERC. The company plans to file for formula
rates after approval in the current case is received.
"Although the settlement is less than the $9.6 million requested," said
Pat Collawn, PNM Resources chairman, president and CEO, "it is a good
first step toward earning an appropriate return on this business by
allowing more timely recovery through the implementation of
formula-based rates. The $3 million annual increase is what the
company's previously announced 2012 earnings guidance range assumed."
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2011 consolidated operating revenues of $1.3
billion, excluding First Choice Power. Through its regulated utilities,
PNM and TNMP, PNM Resources has approximately 2,550 megawatts of
generation capacity and serves electricity to more than 735,000 homes
and businesses in New Mexico and Texas. For more information, visit the
company's Web site 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' ("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. These factors include: the ability of
PNM and TNMP to recover costs and earn allowed returns in regulated
jurisdictions; the ability of the Company to successfully forecast and
manage its operating and capital expenditures; state and federal
regulatory, legislative, and judicial decisions and actions on
ratemaking, tax, and other matters; state and federal regulation or
legislation relating to environmental matters, including the resultant
costs of compliance and other impacts on the operations and economic
viability of PNM's generating plants; the risk that recently enacted
reliability standards regarding available transmission capacity and
other Federal Energy Regulatory Commission rulemakings may negatively
impact the operation of PNM's transmission system; the performance of
generating units, transmission systems, and distribution systems, which
could be negatively affected by operational issues, extreme weather
conditions, terrorism, and cybersecurity breaches; uncertainties
surrounding the negotiation of PNM's collective bargaining agreement;
variability of prices and volatility and liquidity in the wholesale
power and natural gas markets; changes in price and availability of fuel
and water supplies; uncertainties surrounding the mine fire incident at
the mine supplying coal to San Juan Generating Station; uncertainty
surrounding the status of PNM's participation in jointly-owned
generation projects resulting from the scheduled expiration of the
operational documents for the projects; the risks associated with
completion of generation, transmission, distribution, and other
projects; regulatory, financial, and operational risks inherent in the
operation of nuclear facilities, including spent fuel disposal
uncertainties; uncertainty regarding the requirements and related costs
of decommissioning power plants and coal mines supplying certain power
plants, as well as the ability to recover decommissioning costs from
customers; the impacts on the electricity usage of the Company's
customers due to performance of state, regional, and national economies
and mandatory energy efficiency measures, weather, seasonality, and
other changes in supply and demand; the Company's ability to access the
financial markets, including disruptions in the credit markets, actions
by ratings agencies, and fluctuations in interest rates; the potential
unavailability of cash from PNMR's subsidiaries due to regulatory,
statutory, or contractual restrictions; the impacts of decreases in the
values of marketable equity securities maintained to provide for nuclear
decommissioning and pension and other postretirement benefits; commodity
and counterparty credit risk transactions and the effectiveness of risk
management; the outcome of legal proceedings, including the extent of
insurance coverage; and changes in applicable accounting principles.
PNM Resources
Analysts
Jimmie Blotter, 505-241-2227
or
Media
Frederick
Bermudez, 505-270-3960
Source: PNM Resources
News Provided by Acquire Media
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