ALBUQUERQUE, N.M.--(BUSINESS WIRE)--PNM Resources’ (NYSE: PNM) New Mexico utility, PNM, today received an order from the N.M. Public Regulation Commission (NMPRC) allowing the collection of renewable energy expenses through a rider. The renewable energy costs are related to state-mandated renewable energy procurements.
The rider is designed to allow PNM to recover certain NMPRC-approved renewable energy procurement costs that have been incurred since January 2011. These costs come from five utility-scale solar facilities, a battery-storage project, purchases of renewable energy and renewable energy certificates as well as certain wind resource procurements.
PNM expects $6.7 million in revenue during the remainder of 2012 from the rider, with rates going into effect on August 20, 2012. This amount is in line with the previously issued 2012 ongoing earnings per share guidance of $0.03 for renewables. The rider is expected to increase the average customer bill by $1.34 per month.
“We are pleased with the constructive outcome on our renewable energy rider that results in timely recovery for PNM,” said Pat Collawn, PNM Resources chairman, president and CEO. “The pay-as-you-go format of the rider is also beneficial to our customers as it keeps their renewable energy costs as low as possible.”
The rider includes a 10% authorized return and 2013 expected revenues of approximately $22.7 million. The rate rider would be reset as of January 1, 2013, to reflect unrecovered costs from 2012 and projected costs to be incurred in 2013. The renewable energy rider is capped in 2012 and 2013 by $18 million and $24.6 million, respectively, under the stipulation in PNM’s 2010 electric rate case; however, any amounts incurred that are in excess of the caps will be deferred for future recovery without carrying costs.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2011 consolidated operating revenues of $1.3 billion, excluding First Choice Power. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,550 megawatts of generation capacity and serves electricity to more than 735,000 homes and businesses in New Mexico and Texas. For more information, visit the company’s Web site at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release that relate to future events or PNM Resources’ (PNMR), Public Service Company of New Mexico’s (PNM), or Texas-New Mexico Power Company’s (TNMP) (collectively, the Company) expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: the ability of PNM and TNMP to recover costs and earn allowed returns in regulated jurisdictions; the ability of the Company to successfully forecast and manage its operating and capital expenditures; state and federal regulatory, legislative, and judicial decisions and actions on ratemaking, tax, and other matters; state and federal regulation or legislation relating to environmental matters, including the resultant costs of compliance and other impacts on the operations and economic viability of PNM's generating plants; and the impacts on the electricity usage of the Company's customers due to performance of state, regional, and national economies and mandatory energy efficiency measures, weather, seasonality, and other changes in supply and demand; as well as other factors which are described in the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission.
Non-GAAP Financial Measures
The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with generally accepted accounting principles in the U.S. (GAAP). The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Management is generally not able to estimate the impact of the reconciling items between ongoing earnings guidance and forecasted GAAP earnings, nor their probable impact on GAAP earnings; therefore, management is generally not able to provide a corresponding GAAP equivalent for earnings guidance.