PNM 2017 GRC Settlement Agreement

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Auvila_PNM_Rate_Case_Settlement_2017_05_12

Excerpt:

Market Price (5/12/2017): $37.25/share; ST-Target: $49/share; NIV: $80/share

2018 GRC Settlement Agreement is Fair-Minded; We Look for Approval

  • PNM filed a rate case settlement on Friday, May 5, 2017, having filed its rate case on December 14, 2016
    • PNM originally filed for a $99.2MM rate increase over two-years:
      • $50MM as of January 1, 2018, which would have resulted in a monthly increase of some $6 per residential customer in 2018
      • An additional $49.2MM as of January 1, 2019, which would have resulted in a monthly increase of some $5 per residential customer in 2019
    • Summary of the stipulation:
      • Phase-in $62.3MM rate increase over 2-years, resulting in 3.9% increase in 2018 (an increase of about $32.3MM) & 3.4% in 2019 (an increase of some $30MM)
      • Accelerate return of state income tax reduction to consumers and adjust 2019 rate increase for any federal corporate tax rate reductions [it’s unclear whether this applies to 2019 corporate rates and forward or it would incorporate, retroactively, any changes enacted for 2018 and 2017]
      • Theoretically, the stipulation balances customers’ interest with NM’s environmental policy goals

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