PNM - Earnings call transcript Q2 2018

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Operator

Good day, and welcome to the PNM Resources’ Second Quarter Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Jimmie Blotter, Director of Investor Relations. ahead. go Please

Jimmie Blotter

conference and morning Cole, earnings everyone, joining website for for call. are supporting Thank on available the thank PNM this our this presentation the for note pnmresources.com. XXXX and Resources’ us other Please documents you, at that you, call second conference quarter

of our team. Resources’ well and President Chief Officer; as are Joining and Pat Vice me PNM today management Vincent-Collawn; Executive CEO, several our other members as President Chairman, and executive Chuck Eldred, Financial

Before call some need the pursuant PNM update expectations obligation current should statements the caution Securities I remind information to and that Resources estimates We forward-looking assumes and no XXXX. Private considered you morning forward-looking I are turn Litigation all Pat, based to over of this to the that Reform this you upon information. statements of that the be Act to provided of

affecting our quarterly Annual results, discussion Form For Resources’ I please the PNM X-K detailed Form filed on call reports on to refer as Reports with the to as with over XX-Q of reports a will that, And well Pat. on future and Form factors SEC. current turn XX-K,

Pat Vincent-Collawn

morning, joining Jimmie. second everyone, National you, Thanks Happy for Good Thank earnings call. Day. us Avocado our on today and quarter

Let’s updates. start results financial on company Slide X and some with the

compared May previous $X.XX growth improving $X.XX earnings higher than GAAP are is Chuck second these the in due quarter of expectations, to $X.XX XXXX per go and per last largely to of $XX.X The we second compared we share filing quarter Our share Ongoing This $X.XX an of in of the in a quarter result, our minutes. load results are year. of XXXX. through earnings the second to our In review XXXX a increase requests the as earnings raising are And on rates of rate temperatures. our general hotter filed base few million. XX. Texas, in details XXXX will guidance. and

As opportunity and time, reset this filing or with is some the between rates. we’ve transmission Much expenses talked the distribution. the items provides of in and increase rebalance offsetting rates consolidation to the to of about AMS recovery for base the tied

impact So the of $X.XX. reflects estimated an EPS only filing

impact any case, hearings hearings before be begin financial to items likely Day in August on return settlement capital are X. occur, Labor structure on keep net right there due tax some scheduled the September begin. If in is the critical be in may the small, including the discussions it would While and reform. significant Testimony the case and after developments. updated on We’ll are you equity, most

Now Mexico. turning New to

our decision The Let on once that we we continue the have me rate make await XXXX a the issued you. available start Supreme of in to certain issued order we time. decision saying September that it, information Court of items Mexico could be disallowed from to on the by will by New review. any appeal general And

potential PNM’s retirement proceeding San I X. Generating portfolio to expect the we move and talk want how as what Slide of generation of Station. to transformation the Turning is towards about to the Juan

XXXX a not process as well is of or to in recommendation the facilities generating power. Integrated The secure abandon compliance based with come of filing Juan briefings is filing accept sources the on rule follow, coal and to be replacement would year not obtain the the with recommendation existing be the there vote. not that commission filing the that either commission that a approval does indicated time rule, June additions the and after of statutory remaining a approved retirement Generating coal-fired then Plan resources the its contract abandonments here, regulatory the to must make the the compliance frame commission Resource the at know, The or the this included customers or in for before rule of any San in Resource Regardless plan. hearing will with you to of The expires proposed outside will rules As IRP must in we a XXXX. and Station, for Integrated rule today. units reject Plan From examiner does the the completed have hearing The in as July in of we of of commission must the our plan cost-effective this case how process. determine filing. most

conditions a second commission we that a to filing required determine that filing the after customers item XXXX The was XXXX. expected continue a specified to San settlement. the should serve to Juan is BART as settlement that retail The in make would extent

cost-recovery to to option not propose law meetings San PNM New on may will securitizations after committees include not recommendation, off, in for allow currently retired. it for The is legislative to been filing occurring, hold and during place kick it legislative under this lower replacement this our had but power. this securitization nor as also Securitization that recovery session. at this abandonment have We In stakeholders the Discussions also unappreciated remember and Mexico of an be does in will in Juan include qualify will with provides legislation mechanism. plans any topic. is costs began year, on XX-day next New the Mexico session a addressed filing mid-January

process. We will through this keep move posted you we as

case developments to in determination turn mid-XXXX work power RFP sources then to still that evaluated this XXXX. expires anticipate detailed the approved, contract could leave San responses of process to abandonment in make XX for evaluation that, look Depending and We over retirement replacement we on replacement for retirement Juan the months includes power. the the San expect We at after the of any with Chuck an If a the of adequate And to construction could plan I’ll resources for should in potential resolve. spring the months XX to numbers. and of replacement XXXX. power filing, continue time filing timing to have this Juan the and plant the full through for are in prior take that it

Chuck Eldred

Thank you, us you thank Pat. and morning, for joining everyone, today. Good

national spur Let’s start load New were attract ago. review Beginning see discussion growth economic paying development on customer economy, XXX has prior the are growth as they with Slide a its more Albuquerque. years state the wage to outsourced finances in example much to continues we new off, the consider employment jobs. of of strengthening The income salary personal of efforts and growth you Albuquerque with Mexico that for and When this January The bring jobs stronger more the year averages. strength an efforts state’s May company are that X. shown may than with is this competitive than Downtown state the year, a monthly of a economic service couple and through is and increase

Turning results. our to

showing and growth strength the our We X.X%, the load We’re the down quarter, at last top economy. believe nearly average local some to for end in load of positive of year-to-date finally year we’re X% flat bringing our seeing to previous that guidance.

high to business over economy forecast With to result, the see a to the our job Texas, we’re ranks The for and U.S. related Texas in respect our we load continues to growth. robust led growth As service Texas and in and continue has XXXX up West territory period. through X.X% gas to flat the be XXXX to Basin. creation this of Texas production the in Permian year. oil first quarter in increasing

strong interconnections to in quarter. New the be large second continue customer

Gulf the area additions in Coast refineries. load We’re also seeing to petroleum related

X% guidance the and X% guidance industrial For we expect XXXX. midpoint volumetric see We XXXX for load customers to year-to-date X% to Demand-based an X% our X.X% adjusted our be over load, now growth our of XXXX from at to strong. range to expect And is XXXX, growth. XXXX. we growth continues In for show to XXXX. the large have additional

turn Slide X quarter to let’s for second Now earnings.

Pat ongoing earnings $X.XX. per at As were PNM’s are earnings share up indicated, strong $X.XX.

that load impacts We’re discuss of which both in a I’ll and the weather in increase, seeing also moment.

as portfolio that impacted combined retail of earnings, that were tax such a for had also changes in guidance our several rate items effects the and We that the base. generation X and reform increases included outage year from depreciation was rate basin, our quarter, discussed Palo expense tax The investments. capital the property Verde last timing and San the also in Juan Unit of the change bringing into

time some for move our fixed assets. talked Verde of X jurisdictional resource, to that income have as waiting a becomes would we now Trust a heavier We Palo Nuclear also that Decommissioning

will be as gains year been strong in not as As result, years. past this our the they a have

the and resulted growth We at saw earlier are of on that prior early the slide. XX% XX% let we’ll the guidance-related And sizable cooling the utilities, hasn’t begin impacts in In with of drivers, than heat began rate higher This and to previous in coming contracts see the Cooling a hottest utilities year. second in I annual true-up last in result, likely years. addition top as expectations, the other May retail-load as weather. as have also above and transmission this quarter from normal well. Earnings season our third-party described similar XX to our usual quarter along of in year in pickup up. days were degree other than up formula the temperatures the the a

since include tax up last $X.XX and year property last seeing Drivers increase increase that load offset also of implemented TNMP We’re AFUDC. TCOS being is increase by expense. in and been depreciation volumes in versus the have QX in year.

TNMP $X.XX to had In tied addition, weather. of improvement

reciprocating $X.XX reducing paying When off reduction remaining off expense we’re that Corporate the well. level debt from on Other coal of resulted down Finally, able interest the the was the the supported a pay as $XX in and financing for that to their income their down also loan, interest Westmoreland Westmoreland and mine, paid loan increased our million to loan May.

X. was Weather Now quarter in the XXXX guidance during warmer considered our turn is in Slide particularly PNM, to let’s usual, changes. which than certainly

that be O&M We’re additional also spending used Management our cycle. to Vegetation will accelerate

in that We’re other with we seeing coming expected stronger than such and a items originally a as AFUDC. transmission earnings number of are load,

Corporate driven to recovery ranges In we addition we’re $X.XX the to expected rising and and also have $X.XX to range increasing is XXXX both we the filing downside $X.XX. $X.XX. May. the by $X.XX. narrowed total loan, for $X.XX in payoff to TNMP’s to As Consolidated a TNMP lowered $X.XX the will exposure. to guidance reduced $X.XX increases TNMP lowered, to Other PNM range reflects the the PNM made XX. for $X.XX $X. which a rate $X.XX, $X.XX range interest and related income to increased interest and to Westmoreland’s of of its $X.XX we is XXXX, expense. XXXX. XXXX, to expected be largely guidance result, have year and reflect In to now is for our be to ongoing guidance

an have Now turning for allocated forecast. capital capital of TNMP. to additional serve to Slide XXXX, XX needs we on update growing our the

higher We capital point conference to XXXX this have want to expect spend is XX.X% plan. call. not million rate-base that out to plan to at our from Also, made which to brings $XXX XXXX there we forecast, year, previous This our to do than compound XXXX annual million but growth our to quarter I that $XX the XXXX. adjustments we third

We are and strong. will business our to future years. the in TNMP expect continue working through spending capital Overall, require growth forecast our the additional in remains

demonstrates X% to through guidance continue the earnings our increase growth this. XXXX. of commitment And Our target we long-term

pace expect also a at continue similar growth. will our growth to We dividend earnings

call to Mexico New And answer demand. allocate the to the this. Pat, But Pat growing pleased will in I We’re over day. strength the economy incremental What turn to need it capital Avocado before TNMP’s does and customer question to ask I’ll some of But the Day? pope support is… answer the see

Pat Vincent-Collawn

fun right. guacamole. Holy here. Got a Chuck. All little Thanks,

strength certainly of pleased with business. We’re the our

Mother we the As monsoon additional our our ERCOT faced crews our from In peaks saw being we met the rains Texas, off, with peak some the from July, quarter, with Nature. third heavy log hot while into temperatures New record in season, are move season. challenges Mexico, in are

And in customers extra said to have been the on say always going proud And for Thanks states. every both the I team open questions. us thank as work it these crews them customers. and again up let’s am same on for power I crews to the never who I’ve to keep enough they each for are Our to it so work our that could I’m before, today. honored joining day. but do Operator, our for the mile that dedicated

Operator

you. Thank

[Operator question-and-answer will Instructions] Please We now from begin from Bank ahead. the Nicholas Our question first session. of Campanella comes go America.

Nicholas Campanella

good Hey there, morning.

Pat Vincent-Collawn

Good morning, Nick.

Chuck Eldred

Good morning.

Nicholas Campanella

correct? embedded in you – that can same, remain terms the that together against So the load, XXXX IRP, Mexico of need going higher does the is New just capacity specifically in the what’s tie to is i.e

Chuck Eldred

Yes. plan capacity the more Juan imbalanced have renewables replacement load the the on Again, about and for help the in San we what’s more of in the increase with system. capital peaking is to of reliability with

change no that into So generation forecast that expectation drives power. our load replacement for

Nicholas Campanella

Mexico, for think it. New around the case expectations now? how then do specifically, does And filing? change Got next this Or there about timing you rate your

Chuck Eldred

is still Likely file rate for at timing talked the of end effective the No, about. XXXX. as an case we’ve in XXXX

Nicholas Campanella

seemed Got it. know bit, move T&D moved up. little And CapEx and a lastly, to then shifted TNMP you I already PNM, out

can of year thinking kind the just I the more color of to bit about of alluded you of talking you little be similar at to? to balance strength Or Should longer kind some a increase think a the all forecast TNMP of the updating there? dated you’re given provide here. we

Chuck Eldred

up to like, analysis, $XX – this for close run looks obviously based we’re preliminary million at or year Well, $XX million to increases we’re It rate on $XX some million $XX the for TNMP. million capital TNMP. moving

at about million. we’re typically, $XXX So

we probably likely the prioritization process. expectations on $XX growth again, might being indication, through of based $XXX think to million You give we’re capital and forward. we support the go closer allocation level. see of to going But still capital you the But would million increasing million in current that the to as in Texas that the $XX some

Nicholas Campanella

Great. That’s me. from Day. Happy it Avocado

Chuck Eldred

okay. Yes,

Pat Vincent-Collawn

too. You

Operator

Greg go from the Please And ahead. comes from next ISI. Evercore question Gordon

Greg Gordon

there in of again, that should public the on you think sort to been to retire yet? we the resolution on are coming a has you what terms any focused most IRP? feedback And tell plans us, Can the key Thanks. of, on plants constituencies matter that the the be

Pat Vincent-Collawn

most IRP that process, the finished parties, the the went was supportive Economy the were – folks But to and Energy IRP. of when Generation of the surprising. couple hearings Sure. of general, of of was the not supportive have Southwest and I surprising, not supportive you staff A not were The In New IRP. IRP.

the of supportive Juan, In The the in shutdown it. support terms it community I community general think the of, discussion is especially would public San say, general I of of about obviously, is communities of more environmental that Corners because with area. the public. one it for struggling the The in fact customers, folks up like general cheaper for Four it’s of is, that group the the is

I for issue their it with it’s after being the of provides what incredible do understand do is And think shut why they they them down. jobs economy about them. because the shutdown, source

jump-start transition well discussions so And the plan of legislation pretty economy it securitization future. energy new what to is having we’re we help But and – would some and low-carbon future. what very a the think, into have been a I starts is the the state their overall, received into do because to in that had us

We have wind of accepting people that solar much it. here so are and

Greg Gordon

is Nevada but of Nevada pretty longer-term for, that XXXs the IRP? shifts the compelling contracts – storage We megawatt the for in part battery of four-hour load sign don’t recently in because a me solar I NextEra some were look with recall, would saw like, And battery prices piece hour. low per Energy pardon significant

Pat Vincent-Collawn

the goes prices Yes, that to And and And go part up. of as of it it have for part keep our actually the just the there power. as is replacement that. an is part storage. capability we is battery monitoring a RFP down of explicit storage of But

Greg Gordon

your in New clearly Texas to My Would great. quite this. to is footprint and not potentially and improving Mexico grow question have hot. But last answer is be Texas? any continues may economy aspiration you – the Right. you that’s

Chuck Eldred

the in we grow take our Texas, we the Texas. this, that very very gaining to we we of and regulatory see Greg, if that in anything if it meets Well, our certainly ability continue a of Texas – footprint opportunities – demand environment, have our hard interest Texas. favorable pleased in and a invest And And growth in the we’re and areas with with said we’ve attractive. that serve. confidence in greater obviously, always look I’m we would to makes it certainly,

Greg Gordon

quarter, Okay, thanks Great congrats. guys.

Pat Vincent-Collawn

Thanks, Greg.

Operator

Agha next ahead. Ali comes the question from And from go Please SunTrust.

Ali Agha

you, good morning. Thank

Pat Vincent-Collawn

Ali. morning, Good

Ali Agha

Chuck and XXXX I outer you’ve you updated insight? numbers has has contribution for that morning. give TNMP’s in about up up the more years. us Pat, the you Corporate for and at or PNM guidance. The as XXXX the little us Good power look on higher years, earnings earnings well. gone outer talked the costs. when FERC particularly, as a have gotten quite Can considerably Other gone

in more those numbers. drive insight the little what’s particularly years on outer a us assumptions, to changed those give Just in

Chuck Eldred

Yes.

on So investment. obvious TNMP is the the capital

see rate transmissions to out continue of base for opportunity the mechanism support the building and We that. rate to filings and growth TCOS the the in

glide it’s in of path increase So clearly a investment. Texas in capital

Other, and really, at for that off of Westmoreland the have amount had the losing interest debt increases loan. expense is at the earnings Corporate the that the And in On interest the certainly, we company. there income driver holding we

So nothing unusual.

in and change have debt of opportunities the the some from impact focus affecting holding the in a business, with at Texas company. Just amount our Westmoreland we which loan the losing of

Ali Agha

FERC PNM And on the side?

Chuck Eldred

our to as an on, seeing, renewables opportunity transmission manage we’ve our for potential return – had ability some power, to by to are until Also, – also replacement filings really, a unusual continued we’re our PNM’s best power. to for that us and capital certainly, come some case. continued about return in PNM becomes earning file allow system. earning seen it’s we the transmission, of also expectations possibility next Pat our in Yes, allowed for opportunities. keep also there. rate that continue that our done retail. and and the driven renewables Nothing We third-party just to talked in become true-ups a focus our transmission in mind. had But We’ve replacement allow

but you to transmission an opportunity some indication give that updated So just going we haven’t play into capital, forward. could

Ali Agha

Okay. Chuck, lead on capturing earnings just to earnings is well? And is of that CapEx cetera, then as quarter, the Or power be that, about the you about? an third side some this as power that upside in updating et assumption, forecast, your the to increase then now talking – the also the clear, talk you’re may

Chuck Eldred

in on But power made we presentation. the based in update that well. We We’ll as slide forward capital we earnings adjustments quarter, capital. then we’ve minor and as see we third as refine What the updated changes about Yes. you in talk we just forward. go the these go to fine-tune in in make and would the that we plans,

Ali Agha

Pat, I are scenario Mexico the or tone see. in expecting Or from Commission coming And a change elections, the post elections? how look New them? you of dealings November with the there at your the as the see at November you picture up terms likely do bigger in a you changes perspective, the significant make-up or post the

Pat Vincent-Collawn

of no there’s Commissioner a already Liz. won the running. has Becenti-Aguilar commissioners Republican because Theresa Well, was before. commissioner one

an excuse has was me, business. – or understands oil work And We degree, have He one the what at for of So issues her so two economy in dealt with a understand of her area. used candidates we – an he Ben The down seat commissioner before. before. of Hall, are to the them South, candidates Pat Pat of the Lyons’ for one the the refinery. in Corners – Four engineering terms

So him. Steve in has been Fischmann And some we active know cases.

all know them. of we So

the forward the just who’s elected the ever look commission. to have and to them to of job we All ability

Ali Agha

of – you But post the change elections? thinking commission don’t any in a or Okay. such the philosophical expect sort macro

Pat Vincent-Collawn

I No. Ali, No, don’t.

Ali Agha

Okay, thank you.

Operator

question Please comes from KeyBanc. Crowdell from next go ahead. the Anthony And

Anthony Crowdell

Chuck. Good Pat. morning, good morning, Hey,

Chuck Eldred

Good morning.

Pat Vincent-Collawn

no Good And title. morning, Anthony Anthony. great

Anthony Crowdell

Thanks. same the say I joke, Hey, wish this thanks. I about but… could

Chuck Eldred

Oh, come on.

Anthony Crowdell

we appreciate outer capital this many more in of we don’t plan? displacement years their people get jokes view earnings should You capital That New as the capital, the on Resources or the effort. TNMP call, Mexico we a but – PNM incremental to do see

Chuck Eldred

Anthony, to we to PNM capital and relative that. Yes, fine-tuned the balance haven’t TNMP

our generation side focus of see opportunities issues then capital, Mexico, on at some So think in to update the around we’ll of San fine-tune New about aging of as we the that. the the – in capital where Juan T&D we closing the strongly business And maintenance the side support and some and infrastructure. continue on we’ll

different that So to a And us categories. aspects to adjustments looks for to it’s early there’s in too what just commitment all of as make like. the

we update then But So have the then good opportunities the all capital And definitely sustainability for look to aging can really point. see and certainly we’ll support in I a some and And this generation. transmission and we growth about news demand stronger infrastructure. there that and is are PNM, in that’s capital. shifts take closer at Texas, at

Anthony Crowdell

is in sure could the shift done Got I the this it? here? had Like with Have Mexico. in it. anything IRP? filed Have commission the has – the they If gears it? they and not have what and to the What, with we I’m IRP, first utility New expect what the done not they on IRP past, done opined

Pat Vincent-Collawn

Well, Anthony, or last was never rejected. closed. was just accepted It IRP the

So the concerned you think states, outcome we’re of go because it’s IRPs, I and what don’t build. whatever – ahead fact is, that’s the the in some if particularly

for to replacement abandonment have separate or power. you CCNs for file Here, filings

the it. over just didn’t no all it. That’s acceptance in of time or in put notes rejection terms or to IRP why had my IRP, close on agreed been an it’s no action we So because last the board action I parties just all

Anthony Crowdell

commission think – they the the take has no play the think you current this opine at you Do for new their on don’t members before that’s to Or year, IRP? with commission come waits going would into new all? positions that

Pat Vincent-Collawn

for not it will they mean, new don’t and wait to. I in. the think come But they they don’t because to ask into may may that ask I have comes don’t group not us I play. think

Anthony Crowdell

if apply multiple could had next Do on just in bites lastly, you XXXX nothing XXXX happens or apple you And legislation calendar securitization over think the XXXX? that in Okay. there’s of can a I get opportunity that you in the at given, XXXX. window

Pat Vincent-Collawn

legislative started it. actually education Juan hearing on renewables, for the every can Station. of the go at the the a status San And high-level committee Generating we’ve you back securitization, session Well, state a the regulatory started we’ve it. of Farmington compact, But area. we was benefits really in – already There session of up already the process did on

So the early. we’re in answer could question, starting process we’re very hopeful wouldn’t your to again and XXXX back that But go But happen. we XXXX. obviously, yes,

Anthony Crowdell

Thanks my Great. taking questions. for

Pat Vincent-Collawn

Thanks, Anthony.

Operator

comes the Wells And question Please from Reeder Fargo. Jonathan from next go ahead.

Jonathan Reeder

Hey, Chuck.

Just to and kind not, of clarify, this of higher reflect and earnings XXXX before the needs? does those Or that guidance beyond, preliminary revised drove ranges CapEx what kind the higher at potential point? if for exactly

Chuck Eldred

reflective as we as Yes, we have. for and capital well the the presentation growth be in rate-base of Mexico XXXX what really it’s TNMP and really is XXXX. to And the New see adjustment we that made

And that’s there’s to that driving adjustments some of and increases of that, because some there Corporate increases some additional there. FERC the PNM We this. we’re Beyond investments, related seeing, opportunities just in slight capital capital and talked the true-up AFUDC, some slight in Other. then about some

it but lot they And you. can more Jimmie of pieces. and significant, if moving So a with go just detail, Lisa just and nothing there’s call there’s certainly, over

Jonathan Reeder

Okay.

your kind at increases TNMP preliminary, that today? So the out laid impact $XX million at earnings you’re all you that million that thinking higher potential doesn’t to of $XX you of said

Chuck Eldred

not earnings reflected $XX to investing the Yes, there’s still alluded Texas for the I has power. in in to, about with million opportunity million to been $XX in think increases

Jonathan Reeder

clarification. thanks right, the it. for Appreciate Okay. All

Chuck Eldred

Okay.

Operator

Lasan [Operator Auvila Consulting. the ahead. Johong Instructions] question And Please next Research go from comes from

Lasan Johong

be you. Thank me Allow guacamole. got I this about thinking to some now.

Pat Vincent-Collawn

guacamole sure, to you get THF Make go New your blue with Mexico contour Lasan.

Lasan Johong

[indiscernible]

Pat Vincent-Collawn

ahead. sorry, I’m Good. go

Lasan Johong

New the not TRC. developed. to and the more of five wind on PNM may be Mexico couple the of resources I development was rejected front that PNM development handling as were any kind of Just happy projects a about these And on forward? to how was going that Is there specifically, by it the with fringe. questions way be resources dealing Commission was remember how going

Pat Vincent-Collawn

some think we a Lasan, got is up of issue came that with haven’t from Yes, I compromise And an and agreements. And may own we giving terms have Xcel, now finally in right any might cost Because wind. projects The power be that developed NextEra. done. with they their had approved of wind wind encourages recovery. that it of our some

Lasan Johong

development development. I mistaken was might project Yes, there similar But to solar also PNM. thought project it wind be a the was there. I

Pat Vincent-Collawn

got some our some open use thinking they it was to up, they we have solar reasons we issues the what that. concerned – to solar they But bid that the that’s projects had were development. out. about, Yes, commissioners them Because you wanted us so and appropriately. issues where land think on those were the into were we – since of had out that didn’t our is we’re cost-competitive solar bid substations. the solar have with piece, absolutely, to to no, it connects our on one of some approved that own And But they land have no issues they basically, others

Lasan Johong

have been the it must apologize. Yes, I solar piece.

Pat Vincent-Collawn

And problem. we’re no yes, with Yes, okay that.

Lasan Johong

objections? guys about are going the getting how around So

Pat Vincent-Collawn

because cannot we continued the last be cheapest alternative. understand that to that’s we think Well, to let that others land. had I we to And they that them they our show ones actually now bid approved forced the on also

So be If those we’re out. fine. cost-competitive, with we we cost-competitive, get not, if don’t. And And all bid selective. long projects as we we’re we’re continue Facebook, even as to get

Lasan Johong

while. haven’t anything good. things, a that’s in and that Couple use time heard of we revenue decoupling, about of Okay, other

And the anything, on wondering as Just well. status there. going AMI is of if program what, the

Pat Vincent-Collawn

There’s a couple of things.

are incentive efficiency now. out On here. of or the participation going had revenue sort going We’ve very those staff time decoupling with NRDC of use on and of mechanism. general. attorney and And the the for about decoupling are things, energy had or workshops the some right process We’ve there some on good in

decided ongoing still right commission filing, right make sense are AMI our to for that the it didn’t those So The now. customers now.

So they asked a the pilot case. program time us we file in a next in to rate put

off of on in a we file until table Chuck kind mentioned, case as is the New So Mexico, XXXX, rate for us. AMI

Lasan Johong

XXXX would that filing increase pilot in a late mean program? XXXX, the so would

Pat Vincent-Collawn

– to include they’ve yes. pilot would program asked in a It us include it, if

Lasan Johong

Interesting.

is topic California. kind of left it’s this Lastly, day, of field, kind of in the of out been but, the

guys of You Jose. small out San and couple a have west wildfires north going of

this but there’s a just issue speak. kind or to negligence or problems calm big assets, your deal I to be myself, going involving responsibility a of If were Just of liability? so not want know in there terms big would here, I be

Pat Vincent-Collawn

have had wildfire We’ve of little Lasan. not No, bit damage which we before, any had recovering. a issues

had directly system able Unfortunately under condemnation co-ops they the weren’t it. not One down rule. here. not We to of wiped and their inverse have the were statute do recover

So obviously, issues. we there’s different. not see not we bad. were And thankfully, going reasons, – – our in as do is don’t in happening There two season is for wildfire law we what’s But California. if to we negligent, precedence be

Lasan Johong

Perfect. Thank you very much.

Pat Vincent-Collawn

Thank you.

Operator

session. now for And conference question-and-answer to turn closing Pat the remarks. to would any our I back like Vincent-Collawn over this concludes

Pat Vincent-Collawn

great of Well, talking earnings forward joining call. morning, all and Thanks. to again, for to next thank seeing of you you all day. us Have the we and many a this look you

Operator

Happy The today’s attending now Avocado has conference for concluded. presentation. Day. Thank you

You may now disconnect.

TXNM Energy (TXNM) 31 Jul 182018 Q2 Earnings call transcript