On November 17, 2025, Texas‑New Mexico Power Company (TNMP), a Texas‑based subsidiary of TXNM Energy, filed a base rate review with the Texas Public Utility Commission. The filing seeks to recover $2.8 billion of rate base as of June 30 2025, a 10.4% return on equity, and a 47.54% equity ratio, compared with the current $835 million base, 9.65% ROE, and 45% equity ratio.
The request reflects a 13% increase in customers and a 44% rise in peak demand since the last rate case in 2018, prompting significant investments in system infrastructure. O&M costs have climbed due to higher staffing, insurance premiums, and catastrophe reserves, while a $20.5 million rider for Hurricane Beryl restoration costs is included and will be recovered over five years. Interest expense increases tied to the pending Blackstone Infrastructure acquisition are excluded from the recovery.
The rate review is a key component of TXNM Energy’s $8.6 billion capital plan through 2029, which focuses on grid modernization and renewable expansion. The company’s nine‑month net earnings fell from $226.4 million in 2024 to $161.2 million in 2025, underscoring the importance of successful rate recovery to sustain investment momentum.
Pat Vincent‑Collawn, TXNM Energy’s chairman and CEO, said the modernization effort is “critical for providing reliable, sustainable energy and empowering customers with real‑time information to manage costs.” The filing aligns with that strategy by enabling the company to recover the capital needed for infrastructure upgrades.
The filing comes amid a pending $11.5 billion acquisition by Blackstone Infrastructure, expected to close in the second half of 2026. The acquisition adds a layer of strategic importance to the rate review, as it will shape the company’s long‑term capital structure and regulatory posture.
If approved, the new rates could take effect in mid‑2026, potentially raising residential rates by an estimated 3–4% and supporting the broader capital plan. The filing is a material regulatory action that directly impacts TXNM Energy’s ability to recover capital investments and manage cost structure.
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