PNM to Implement Renewable Energy Rider
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--
PNM Resources' (NYSE: PNM) New Mexico utility, PNM, today received an
order from the N.M. Public Regulation Commission (NMPRC) allowing the
collection of renewable energy expenses through a rider. The renewable
energy costs are related to state-mandated renewable energy procurements.
The rider is designed to allow PNM to recover certain NMPRC-approved
renewable energy procurement costs that have been incurred since January
2011. These costs come from five utility-scale solar facilities, a
battery-storage project, purchases of renewable energy and renewable
energy certificates as well as certain wind resource procurements.
PNM expects $6.7 million in revenue during the remainder of 2012 from
the rider, with rates going into effect on August 20, 2012. This amount
is in line with the previously issued 2012 ongoing earnings per share
guidance of $0.03 for renewables. The rider is expected to increase the
average customer bill by $1.34 per month.
"We are pleased with the constructive outcome on our renewable energy
rider that results in timely recovery for PNM," said Pat Collawn, PNM
Resources chairman, president and CEO. "The pay-as-you-go format of the
rider is also beneficial to our customers as it keeps their renewable
energy costs as low as possible."
The rider includes a 10% authorized return and 2013 expected revenues of
approximately $22.7 million. The rate rider would be reset as of January
1, 2013, to reflect unrecovered costs from 2012 and projected costs to
be incurred in 2013. The renewable energy rider is capped in 2012 and
2013 by $18 million and $24.6 million, respectively, under the
stipulation in PNM's 2010 electric rate case; however, any amounts
incurred that are in excess of the caps will be deferred for future
recovery without carrying costs.
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, but are not
limited to: 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; and 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; as well as other factors which are described in the
Company's Form 10-K and Form 10-Q filings with the Securities and
Exchange Commission.
Non-GAAP Financial Measures
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 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
generally accepted accounting principles in the U.S. (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. Management
is generally not able to estimate the impact of the reconciling items
between ongoing earnings guidance and forecasted GAAP earnings, nor
their probable impact on GAAP earnings; therefore, management is
generally not able to provide a corresponding GAAP equivalent for
earnings guidance.
PNM Resources
Analysts
Jimmie Blotter, 505-241-2227
Media
Susan
Sponar, 505-241-2768
Source: PNM Resources
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