Core Points - TNMP, a subsidiary of TXNM Energy, filed for a base rate review reflecting significant growth since the last filing seven years ago [1][2] - The filing requests recovery of $2.8 billion in rate base, a return on equity of 10.4%, and an equity ratio of 47.54% [2][3] - Current rates are based on a rate base of $835 million, with an allowed return on equity of 9.65% and a 45% equity ratio [2][3] Rate Filing Components - The request includes increased operations and maintenance costs, changes in deferred federal income tax amortizations, and updates to depreciation rates [3][4] - TNMP is also requesting $20.5 million for Hurricane Beryl restoration costs, to be recovered over five years [4] - If approved, new rates are expected to take effect in mid-2026 [4] Financial Summary - Key components of the rate filing include a total revenue requirement increase of $141.8 million, with a net rate increase of $33.8 million [5] - Major operational drivers include vegetation management, headcount increases, catastrophe reserve increases, and insurance premiums [9] - The core rate base growth includes returns on investments and distribution investments from January to June 2025 [7]

Core Points - TXNM Energy's subsidiaries, PNM and TNMP, received regulatory approvals for rate recovery filings on May 15, 2025 [1][4]. Group 1: PNM Rate Approval - PNM obtained approval from the New Mexico Public Regulation Commission for its 2025 Rate Request application, with customer rates phased in: 50% increase effective July 1, 2025, and the remaining increase effective April 1, 2026 [2]. - The approved revenue increase for PNM is $105.0 million, based on a 9.45% return on equity and a 51% equity capitalization structure on a $3.0 billion rate base [3]. Group 2: TNMP Rate Approval - TNMP received approval from the Public Utility Commission of Texas for its Distribution Cost Recovery Factor application [4]. - The approved annual rate increase for TNMP is $25.0 million, recovering $176.6 million of incremental distribution rate base at an authorized return on equity of 9.65% with a capital structure of 55% debt and 45% equity [5].

Core Points - The New Mexico Public Regulation Commission (NMPRC) has issued a Certification of Stipulation recommending approval of PNM's 2025 Rate Request application [1] - The stipulation includes a $105.0 million increase in PNM's revenue requirements, based on a 9.45% return on equity and a 51% equity capitalization structure [3] - The rate increase will be phased in, with 50% effective July 1, 2025, and the remaining increase effective April 1, 2026 [2] Company and Industry Details - PNM is a wholly-owned subsidiary of TXNM Energy, which serves over 800,000 homes and businesses across Texas and New Mexico [6] - The current authorized rates for PNM are based on a 9.26% return on equity and a 50% equity capitalization structure [3] - Various parties, including the Utility Division Staff of NMPRC and several community organizations, support the stipulation, while other intervening parties do not oppose it [4]

Core Viewpoint - The Public Utility Commission of Texas has approved TNMP's 2025-2027 System Resiliency Plan, which involves a significant investment to enhance the reliability and safety of its distribution system [1][2]. Investment and Financials - TNMP plans to invest $545.8 million over three years to address various resiliency events that pose risks to its distribution system [2]. - The costs associated with these investments will be included in future Distribution Cost Recovery Factor filings [4]. Resiliency Measures - The System Resiliency Plan includes eight different Resiliency Measures aimed at improving the system's ability to prevent, withstand, and recover from resiliency events. These measures are: - Distribution System Resiliency - Distribution System Protection Modernization - Vegetation Management - Wildfire Mitigation - Flood Mitigation - Enhanced Operations System Technology - Cybersecurity - Physical Security Resiliency [3]. Company Background - TXNM Energy, the parent company of TNMP, serves over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities [5].