PNM and TNMP Secure Regulatory Approvals for Rate Recovery Plans Amid Rising Energy Needs

PNM and TNMP Receive Regulatory Approval for Rate Recovery

On May 15, 2025, PNM and TNMP, operating under the umbrella of TXNM Energy (NYSE: TXNM), successfully received approvals from regulatory authorities for their pending rate recovery requests. This development is seen as a significant step towards ensuring a steady supply of energy amid increasing demands from the community. The approved adjustments will allow these utilities to enhance their service quality and maintain infrastructure effectively.

Details of PNM 2025 Rate Request Approval

The New Mexico Public Regulation Commission (NMPRC) granted approval to PNM for its 2025 Rate Request application. The approval came as a result of an unopposed stipulation that was filed jointly by PNM and several stakeholders. Under this arrangement, customer rates will see a phased implementation: 50% of the agreed increase will take effect from July 1, 2025, with the remainder coming into effect on April 1, 2026.

The total revenue increase authorized for PNM is $105 million, calculated based on a 9.45% return on equity and maintaining a ratio of 51% equity capitalization against a $3 billion rate base. Previously, the authorized rates rested on a 9.26% return on equity with a slightly different capitalization structure of 50%. The final order related to this approval will be made available to the public after its issuance, along with related documentation.

TNMP's Successful Distribution Cost Recovery Approval

Simultaneously, TNMP attained approval from the Public Utility Commission of Texas (PUCT) regarding its Distribution Cost Recovery Factor (DCRF) application. On the same date, PUCT approved TNMP’s amended application to modify its DCRF. This move will see an annual rate increase of $25 million, recouping $176.6 million in incremental distribution rate base.

The PUCT has authorized a return on equity for TNMP set at 9.65%, with a capital structure comprising 55% in debt and 45% in equity. The new rates will come into effect approximately 45 days following the issuance of the approval order.

Significance for TXNM Energy and the Community

For TXNM Energy, this progression marks a pivotal moment in their ongoing commitment to meeting the energy needs of over 800,000 homes and businesses across Texas and New Mexico. By ensuring their utility partners have the necessary approvals and funding, TXNM Energy demonstrates its dedication to enhancing service reliability and infrastructure investment in the long term.

As the energy landscape continues to evolve with increasing demands, these regulatory approvals set a foundation for sustainable growth and responsiveness to community needs. TXNM Energy maintains its trajectory towards providing better energy services while aligning itself with regulatory expectations and ensuring stakeholder engagement.

For further information regarding this approval and how it affects energy rate structures, interested parties can refer to the official TXNM Energy investor relations site where detailed documentation and updates will be regularly provided.

Overall, as PNM and TNMP push forward with these approved rate recovery plans, customers can expect improved energy services and reliability, vital for meeting contemporary energy challenges.