PNM: Changing estimates to better account for rate case

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PNM_Auvila_Note_Estimate_Change_2016_04_14

Excerpt:

Market Price (4/14/2016): $32.31/share; ST-Target: $42/share; NIV: $63/share

PNM is in the process of pursuing its 2016 rate case. Depending on when the rate case is adjudicated and approved, PNM’s AEPS would be impacted. If the rate case is approved in time for July 2016 implementation, PNM expects that its estimates would be at the high end of about $1.76. However, for every month delay in the implementation of the 2016 rate case, PNM expects a $0.06/share-$0.08/share impact to its AEPS. Therefore, with an August implementation, PNM expects its AEPS would be impacted by $0.08 (2016E AEPS of $1.68), a September implementation would imply an additional $0.07/share  (2016E AEPS of $1.61) impact, and an October implementation implies an additional $0.06/share impact (2016E AEPS of $1.55).

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