ALBUQUERQUE, N.M., June 1, 2020 /PRNewswire/ -- PNM Resources (NYSE: PNM) management will meet with analysts and investors virtually this week. During the meetings, management is expected to discuss COVID-19, regulatory and economic development updates, including:
- 2020 ongoing earnings guidance of $2.16 to $2.26 affirmed, as warmer than normal May temperatures across the PNM service territory partially offset COVID-19 load declines
- PNM files for decoupling in lieu of a general rate case, requests implementation in 2021
- TNMP reaches settlement in principle in first Distribution Cost of Service filing
- New Mexico announces development of new Amazon fulfillment center
Based on the company's planning assumptions, the duration of COVID-19 load impacts has extended into Stage 2 at the beginning of June, with some restrictions lifted as New Mexico and Texas each progress through phased re-openings. No significant supply chain or workforce disruptions have been experienced. Throughout May, customer usage patterns continued to reflect the company's expectations of increases from residential customers and decreases from commercial and industrial customers due to restrictions. At PNM, where the expectation was an overall decrease, these impacts were partially offset by warmer than normal May temperatures. At TNMP, these impacts continued and were in line with expectations. 2020 ongoing earnings guidance of $2.16 to $2.26 is affirmed based on the current environment.
PNM submitted its expected decoupling filing on May 28, 2020. The full decoupling request is focused on recovering previously authorized fixed costs. Current rate design recovers these fixed costs through volumetric rates, and the energy savings realized from PNM's energy efficiency programs and other customer conservation efforts have resulted in a consistent under-recovery of these fixed costs.
TNMP has reached a settlement in principle with parties in its first Distribution Cost of Service filing. On May 20th, the Administrative Law Judge for the case abated the procedural schedule to allow parties to complete the settlement documents. Settlement details, including the amount, are expected to be finalized and filed this month. New rates are expected to be implemented September 1, 2020.
New Mexico Economic Development Update
The announcement of an Amazon fulfillment center under development in Albuquerque demonstrates the continued focus of economic development efforts in New Mexico. PNM Resources' capital investment plan includes $15 million in 2020 for the integration of the new facility, which is expected to bring 1,000 jobs and increase load in 2021.
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2019 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,761 megawatts of generation capacity and provides electricity to approximately 790,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM") and Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or 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. The Company assumes no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, the Company cautions readers not to place undue reliance on these statements. The Company's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. 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, including those used for certain aspects of incentive compensation, 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 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. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.
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SOURCE PNM Resources, Inc.