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

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Market Price (5/23/2017): $37.40; ST-Target: $49/share; NIV: $80/share

  • PNM filed a revised rate case settlement agreement (RRCSA) on Tuesday, May 23, 2017 in response to the hearing examiner’s (HE) specific issues on May 12, 2017 regarding a number of points in the May 5, 2017 settlement agreement (SA)
    • Major financial stipulations are unchanged:
      • Rate increase of $62.3MM to be phased-in over two years: $30MM as of 1/1/2018 and an additional $32.3MM to be implemented as of 1/1/2019
  • What has changed are issues that are either more appropriately addressed separately or through other existing channels or processes. These include, but are not limited to:
    • The provision that would have allowed for the exchange of $10MM in additional annual depreciation for San Juan Generating Station (SJGS) offset by $10MM lower annual depreciation on distribution assets has been eliminated
    • Rate design issues have been pulled from the RRCSA and is expected to be addressed through a separate track. These include, but are not limited to the following:

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