PNM and TNMP, the wholly-owned subsidiaries of TXNM Energy, have both received crucial regulatory approvals for their pending rate recovery filings. These approvals from the New Mexico Public Regulation Commission (NMPRC) and the Public Utility Commission of Texas (PUCT) provide significant financial clarity and support for ongoing investments.
PNM received NMPRC approval for its unopposed stipulation in the 2025 Rate Request application. This approval grants a $105.0 million increase to PNM's revenue requirements, phased in with 50% effective July 1, 2025, and the remainder on April 1, 2026. The increase is based on a 9.45% return on equity and a 51% equity capitalization structure on $3.0 billion of rate base.
Concurrently, TNMP received PUCT approval for its Distribution Cost Recovery Factor (DCRF) application. This approval results in an annual rate increase of $25.0 million, recovering $176.6 million of incremental distribution rate base at TNMP's authorized return on equity of 9.65% and a 55% debt and 45% equity capital structure. The associated rates are expected to become effective in approximately 45 days.
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