#United States #TXNM Energy #Albuquerque #New Mexico #PNM Energy

Recommendation for PNM's Rate Request Approval

The New Mexico Public Regulation Commission (NMPRC) has given a favorable certification on a stipulation filed by PNM, a subsidiary of TXNM Energy. This stipulation relates to PNM's request for a rate increase for the year 2025, aimed at passing a revenue adjustment to customers.

Overview of the Stipulation

The stipulation in question was submitted in November 2024, and hearings were convened in February 2025 to discuss its merits. If the NMPRC ultimately approves this recommendation, customers will see a phased approach to the rate adjustment. The plan stipulates that 50% of the proposed rate increase will take effect on July 1, 2025, with the remaining balance implemented by April 1, 2026.

This proposed increase in revenue, amounting to $105 million, is calculated based on a redefined return on equity of 9.45%, alongside a 51% equity capitalization structure on a total rate base of $3 billion. Notably, the current authorized rates are based on a slightly lower 9.26% return on equity and a 50% equity structure.

Supporting Parties

PNM is not alone in this endeavor, as several prominent organizations and governmental entities have joined hands in support of this stipulation. Among them are the Utility Division staff of the NMPRC, the New Mexico Department of Justice, and various organizations committed to clean and affordable energy initiatives, including the Coalition for Clean Affordable Energy and the Coalition for Community Solar Access. Major corporations such as Walmart Inc. and The Kroger Co. also add their weight to this agreement, signifying broad support across both public and private sectors.

Other parties involved in the application process, such as Onward Energy Holdings, LLC and the Renewable Energy Industries Association of New Mexico, have opted not to contest the stipulation, further affirming its likely acceptance by the commission.

Importance of the Rate Change

The recommendation from NMPRC represents a critical juncture for both the utility and its customers. An increase in utility rates can be a double-edged sword; while it may provide necessary funds for utility improvements and maintenance, it also places additional financial burdens on consumers. As these factors are weighed, public sentiment and consumer advocacy will play a significant role in the commission's final decision.

Next Steps

As this process unfolds, stakeholders are urged to stay informed. Details regarding the certification of the stipulation and other relevant documents related to the rate request will be available for public viewing on the TXNM Energy website. Interested parties can access these materials through the provided link to ensure they remain updated on this significant utility development.

Background on TXNM Energy

Headquartered in Albuquerque, New Mexico, TXNM Energy operates under several regulated utilities, including TNMP and PNM, and services over 800,000 residences and businesses across New Mexico and Texas. For further insights into TXNM's operations and strategies, the official TXNM Energy website offers comprehensive resources and updates.

The upcoming approval decision by NMPRC is pivotal, paving the way for future energy revenue dynamics in New Mexico and impacting a substantial customer base. The commission's deliberation process and final verdict will be closely monitored by all parties involved, potentially setting a precedent for future rate adjustments within the energy sector.