PNM Resources(US:PNM)2024-04-30 19:59Financial Data and Key Metrics Changes - Earnings per share for Q1 2024 was $0.41, exceeding expectations of $0.37 to $0.39, driven by relief from TCOs and DCRF mechanisms [10][11] - The company is affirming its annual guidance range for 2024 at $2.65 to $2.75, with long-term earnings growth targets of 6% to 7% [11][12] Business Line Data and Key Metrics Changes - TNMP is leading growth with nearly 13% rate-based growth, while overall rate-based growth is expected to be around 10% [11][12] - The first DCRF for the year was filed for an incremental $200 million of rate-based, with plans for a second filing in the third quarter [28][44] Market Data and Key Metrics Changes - The ERCOT board approved a $100 million reliability project in West Texas, indicating strong demand growth in the area [41] - Load growth at PNM, primarily from industrial customers, increased year over year, although offset by a return to normal weather conditions [47] Company Strategy and Development Direction - The company is focused on enhancing system resiliency and wildfire mitigation, with increased spending on vegetation management [5][42] - Plans to integrate additional solar and storage resources are in progress, aiming for 60% carbon-free generation [26][45] Management Comments on Operating Environment and Future Outlook - Management remains confident in earnings guidance for the year and long-term growth targets, despite challenges from normal weather patterns [12][31] - The company is actively participating in discussions regarding regulatory changes and infrastructure improvements to meet future demand [25][27] Other Important Information - The company closed the sale of NMRD in February, receiving proceeds of $117 million [23] - The company is working on a public safety power shutoff plan for high wildfire risk areas in New Mexico [3] Q&A Session Summary Question: Current amount of wildfire insurance and its cost - Management did not disclose specific details about wildfire insurance during the negotiation period [4] Question: Impact of vegetation management on O&M outlook - Management indicated that increased vegetation management expenses can be recovered outside of a general rate case as part of an approved resiliency plan [42] Question: Update on CapEx opportunities for mobile generation - Management expects a proposed rule regarding mobile generation in June, with a final rule anticipated by the end of the year [17]