TNMP Submits Major Base Rate Review Amid Continued Growth in Texas Energy Sector

On November 17, 2025, Texas-New Mexico Power (TNMP), a subsidiary of TXNM Energy, announced the filing of a comprehensive base rate review with the Public Utility Commission of Texas (PUCT). This marks a significant step in the company's journey, reflecting seven years of considerable developments in their energy transmission system since the last filing. TNMP's request details a proposed recovery of $2.8 billion in rate base as of June 30, 2025, aiming for a return on equity of 10.4% and an equity ratio of 47.54%. These figures represent a notable increase from the current rates, which utilize a rate base of $835 million with a return on equity of 9.65% and a 45% equity ratio.

The motivation behind this filing is rooted in several factors, one of the most critical being the increased operational and maintenance expenses, which the company argues are not accounted for in their semi-annual Transmission Cost of Service (TCOS) and Distribution Cost Recovery Factor (DCRF) filings. Adjustments in deferred federal income tax amortizations, along with updates to depreciation rates, have also influenced this request. Importantly, the proposal strategically excludes additional interest expenses arising from the refinancing of debt linked to the intended acquisition of TNMP's parent company, TXNM Energy.

Furthermore, TNMP seeks to recover $20.5 million related to Hurricane Beryl restoration costs through a proposed rate rider, to be repaid over a five-year term. This aspect distinctively separates it from the base rate request, emphasizing the company's commitment to restoring essential services following natural disasters.

If the PUCT approves the proposed rate adjustments, new rates are expected to take effect in mid-2026. Over the years, TNMP has demonstrated a commitment to enhancing their infrastructure and services, a trend that aligns with their filing. Their core rate base growth reflects the advances made through investments in distribution enhancements from January to June 2025, as well as the residual impacts of amortization on transmission investments.

It is crucial to emphasize the projected increase in their cost of debt, which, according to the filing, sees a reduction for transmission services but a slight increase for retail. Key drivers of rising operational and maintenance costs include substantial investments in vegetation management, expansions in personnel to meet service demands, and anticipated increases in insurance premiums due to heightened risks, including wildfire exposure.

The comprehensive nature of this filing underlines the essential steps TNMP is taking to promote sustainability and efficiency in energy delivery across Texas and New Mexico. As a regulated utility that services over 800,000 homes and businesses through TNMP and PNM, TXNM Energy emphasizes their proactive approach in adapting to evolving market conditions and operational demands.

For more detailed information, stakeholders can visit TNMP's official website to access the filing comprehensively. The discussion surrounding these adjustments reflects broader industry trends focused on reliability, growth, and improved customer service, as energy demand continues to rise in the regions served by TNMP.

In summary, TNMP's recent actions exemplify the ongoing efforts within the utility sector to tailor rates reflective of current financial realities while ensuring the continued provision of quality service to the communities they serve. As important decisions loom ahead regarding the acceptance and implementation of these adjustments, stakeholders will keenly observe the PUCT's forthcoming deliberations on this substantial filing.