PNM - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the PNM Resources Quarter 2021 Conference Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note this event is being recorded. to conference like Goodman, to now Relations. Investor would turn over the Lisa I ahead. go Please

Lisa Goodman

Please Megan, on you, this Resources' Earnings supporting for the us you, and call at morning PNM the other Call. pnmresources.com. this XXXX conference Quarter are Thank First thank website for and available everyone, documents that presentation our note for joining

Lisa statements and Terry; Joining me Chief Eden.Before Officer, provided this expectations and based President and Private Don and and over XXXX. the I Vice Act information. Vincent-Collawn; turn to Financial today upon that morning of to estimates of no assumes PNM are you need this I Officer, be forward-looking information should We update CEO, caution PNM call the to statements Chief all obligation Pat Resources' that and are pursuant Senior Litigation Chairman the that President Pat, to Reform Operating forward-looking some remind current Securities you Resources considered the of

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

Patricia Collawn

up, thank Thank in first exceeding our here Albuquerque, ongoing on our should does on, and The Lisa. results for updates. have but started Day. you, Good the and beat us I'll get admitting on Slide made left a financial quarter morning, of for fan X expectations. with Albuquerque. a favorite turn and "What's you $X.XX, in go are earnings today Bugs his, company joining for Doc?" everyone, he National because is Bugs Bunny not

for We XXXX range $X.XX our are guidance to $X.XX. at of affirming a

rate where are to at more of on long-term and be a making and cover our PNM goals, will year. the Lisa cover Don has affirming growth growth we already detail. TNMP number busy operational up financials We are updates shaping in and earnings it targets. our will base also a progress been

things hand turn February expected and update. one over quick million. that, I'll closed to of I the Before have proceeds Don. the off, of NMRD With sale it I $XXX in received We

Joseph Tarry

ERCOT particularly and the a Texas is assumptions, next Texas in Texas lines in West Growth Board seeing Board transmission to Yes, XXXX.Looking transmission year's process. in new to projections these for start West ERCOT additional ahead, of not growth project the result gas. up along previous be any basin, in X needed for the summer part final CCN to assessments.Also, now.At await to updated This been and this We plan, a tied do not our projects of requires it's resiliency individual our shaping to to demand service is our approval line final both of territory. plan. larger for this in showing in third project Pat, service legislation capacity Texas continues morning, one with ERCOT busy business. from premium a we've planning our system and in increased make the oil the to investment and the expect reliability to spending investment be we'll New PUCT TNMP I'll and filing years. studies, good has that PUCT in the we The forecast support West the could our new for in year you, the this plan assessment pace we summer, it. Texas have this pace the response the grid higher-rated by on the Last early for incremental forward in this effort load of in construction XXXX our in in quarter. substation. a and expectations current new expansion during Thank the of years and to capital an of commission, Construction This approval assessment, and investments. new expect substantial involves and initially is for rebuilding on ERCOT's This we'll part projects growth of catch in and years territory. of service seen load Last February, plan project the X to planning beyond where particularly transmission end resiliency expected million put electric ensure has at everyone. service based our territory, recognized to been Directors $XXX transmission to and levels reliable approved West X new reflects been customers working X. independent Texas in to evaluators expected several of system-wide what Slide what potential large needed up receive to planning plan for drive will ERCOT look in our with called determine considered Mexico. its of with announced are be week, our meeting the for the the for is demand growth exceeds the ERCOT

in depreciation plans. for be the plan the eliminating in of key rules included amounts filing, plans assessment included to also capital these make will begins, deferred capital reminder, may is be $XXX plans. any piece already in lag a on we investments. the included our our filings, our investment adjust these projects As the Wildfire we mitigation will complete, the regulatory these we for recovery include and have When million incremental a until filing.Under

formalizing several a as been part our Mexico. vegetation New for can wildfire updates of Under public on areas mitigation expenses of of over increasing time general case last our for recovered as as safety to for the years. plan plan.Turning part higher plans Slide risk legislation, PNM. be increased spending other I'll We expenses these power for mitigation rate resiliency the management have working shutoff wildfire a outside X. been in approved some as We've an the cover well

different have territory mitigation we to doing. and completion holding already parts As on plans the in service are meetings been community plan, what about talk we our we've our of neared

discussions are us working personnel, turning and of areas. regional statewide responders industry, the these has level in awareness and to our levels, and consider that the for create community participating leaders to and along would first management at preparedness to power this at coordination through proactively that with circumstance emergency cause and off This We a we build been is with tribal topic and in are national forefront EEI.

and the risk the our infrastructure. right to customers the with mitigate safety of taking for steps doing on focused are We associated our thing

We XXX-megawatt at resources will Public first Regulatory file for PPA integration Commission already the have and an our the our storage the additional been tomorrow.Another megawatts plan summer. bringing quarter, solar XX highlight of portfolio is the integrate XX% storage in this approved, of solar including to carbon-free planned that with we New Mexico battery as PNM distribution

closer continue goal of to will XXXX. to our We by generation carbon-free move

until I New Mexico to at related this megawatts some current plant, when seeing to plant, our the to in exiting relates by it highlight XXX activities XXXX.As a As taking wanted cost and Commission. retain earlier also the not of our result, plant our in coal the customers participation agreement a capacity of expires X% our than XXXX. Four we to we benefit Corners those will is are place

where and with the utilities recovery, our the $XXX Over increased quarter. was for a on both commission of our issues has potential tool the reliability appreciate as of want various various varied and issues. have other our distribution filing metrics, helpful us the seeing last the to grid and adequacy, workshops to approved at to transmission might regional updates and In year on with in and in concern topics TCOS Slide to million on a workshops a plan to second how utilities. understand items such base. the The March, They Texas, to commission, other million cover modernization, the topics. commissioners various outside planning or and engage help number third new I'll change. topics they incremental first direction are rate these filing opportunity important some have a tied increase presentations are rule-making Workshops have address transmission resource how follow they stakeholders and commission's regulatory typical schedule stakeholders.Turning nearly year already and leadership make We early planning. all engage X, been for We $XX implemented from

of distribution DCRF calls side, the April for was at the first amendment XX-day base. of $XXX last year beginning The the incremental rate an clock. for million year On a past, filed for our

year.As with third effective I second quarter little Although we've longer, PNM, we plan we third before plan resiliency end the filing reach commission of of proceedings mentioned, in plan the in decisions some the in the running dockets At have also couple to filing we in months. a a to progress rates for that the the other key should previously make coming our make our quarter. seen already

in proposal XXX storage. of proposed XXX resources First is battery battery solar additional XXXX. of XX megawatts solar and of We and agreements PPAs, our megawatts for storage megawatts utility-owned

other second expect asked modernization provide initial today. We is supplemental and filing from Carried benefit Commission. were case with quarter. the in are up analysis on in Grid ongoing to the over this Mexico XXXX, our New a we decision cost the an hearings wrapping proceeding

forward, quarter.Looking rate still decision We to this retail we next in make by third plan June. the filing expect on early our the docket

test through become a reflect a Our rates future of process XXXX for XX-month would XXXX June year filing July XXXX. effective based will that be from running July costs regulatory and for of on in

that, behind with that prior part of it to We with this over I'm more the issues have to working to With Lisa, cases talk the are going challenging filing looking you the other us. of forward numbers. been turn to on some to parties legacy

Lisa Goodman

in PNM, weather associated spikes our primarily new were rates XXXX.Income result Slide retail summary customers, earnings the from in at a This XXXX quarter based year-over-year. P&M Thank incorporate return first PNM market a in earnings. quarter as year normal on a exceeding transmission of These increased were authorized high expense quarter earnings. more at temperatures with first new return to good A year-over-year share expected per by the expected the and At increased cost XXXX our driver XXXX. also pricing expectations and decommissioning changes the from year. margins was in start to XXXX to Slide the of normal assumptions relief in mechanisms enabling quarter. to rest I'll unusually the test to trust Load of in quarter. XX you, TNMP. in a and implemented morning, us growth rates Don, offset PNM, TCOS quarter first our of February. return reclamation in on at was for the year-over-year prices PNM's with $X.XX. our of Earnings earnings.Turning Rate key $X.XX, earn first I'll and increases, the and the industrial biggest compared first increased decrease reduced to were colder January XX. from $X.XX everyone. of power in future DCRF year-over-year the the interest investments first utilities rate-based cover guidance and both of Depreciation of we our

our are guidance annual to of affirming range $X.XX for $X.XX. XXXX We

movements. quarterly As earnings were the ahead adjusted and few small reflect the I distribution mentioned, cents we to earnings first quarter our of a have expectations,

months.We changes The have plans about any utilities of our -- third rate growth for XX. both quarter load earnings peaks summer at continues capital Slide as half investment or base loud on our the in not to made to hot account

to We at TNMP with overall growth utilities the XX% growth expect rate nearly XX%. base continue leading

The shown TNMP base have current is authorized in in the -- to base or at affirming PNM projects currently this consideration earnings growth outstanding. shifting calculated long-term we year slide by and rate assuming our filings investment retail previous rate on TNMP math, and As give the Slide PNM growth between summer, power rose, and target, EPS any FERC earnings growth needs.Turning here. We're our growth also we to through supported regulatory in work XX. each our shares return our we our using will earnings calculation shown for

have continued talked of this also we on have issuance plans permanent year potential to the of of company the refinancing estimates risk path. equity in debt also current we continued included $XXX million loan.We down the parent with instruments term level have our more interest to that and holding new rate which We mitigates the the our equity financing growth. support the credit, -- The debt higher modeling hedges at and our rates continuing plan, the this about we're have place provide refinance of includes company base largely strong holding

continue XXXX. on guidance million seeing with With it of on to target remain Pat. assume a we $XXX terms the total X%. growth what through our in we long-term per over $XXX to earnings along confident average our this to In year are that, million or back equity, market, year, of of new with we earnings turn for X% I'll Based

Patricia Collawn

Thank you, Lisa.

questions, our beat. for customers. to a Megan, to I open questions. haven't team for for teams our their like and Before beat customer serving up it to up open it It and excellent power let's service, a missed continued reliable contributions steady consistent, deliver thank I'd takes our

Operator

We [Operator will session. now Instructions]. begin the question-and-answer

Levine with question from comes Our Ryan first Citi.

Ryan Levine

to to paid share the procure Texas company insurance the the has New Hey. and And in that it able are when that cost Mexico? What's current insurance you you what expires? of and wildfire amount that

Patricia Collawn

right this summer. will insurance the we're actually renegotiating of expire Ryan, that midst in our

So a during that giving isn't good negotiating probably publicly of period information kind idea.

talking not that right now. we're about So

Ryan Levine

remarks, outlook plan In in be to your the opportunity to sense or the effort reduce supported, risk? an was Okay. mentioned any as the O&M were impact around increase system that to prepared harden extent to vegetation potentially to that, it the an management,

Joseph Tarry

Ryan. No, Yes. absolutely,

plans increased Just filing The last you over the We've any Mexico bit and a continuously several resiliency in at collect you be the rider, case, to take place last in allows little that period that for look last our and Texas would of years. other with management in you able time over Texas both rate in background. along vegetation amount case our management, your what doing. New was veg and rate put a through XXXX to additional to

that resiliency quarter. in the that file So will filing third of our part be we

Ryan Levine

Okay. pursue legislative the to generation the process mobile process And then or any update CapEx a around regulatory or opportunity that? for

Joseph Tarry

Yes. Thanks, Ryan.

to important. think one, in that one time and a those they're frame. I the September legislative me we few file we've of DCRF, we'll Let and hit factors checked box because look first our filed another

If all you third that so then rule take in a the that. talked place to about expect comments that in June, quarter. go we but we've into file and to different the forth. gen, resiliency, system from plan We The mobile proposed will the intervenors

we rule so And expect end the of the year. a by

-- end that into, talked West So I'm we with as the of and then some through process at not with CapEx just a -- what but to little they you know, a plan kind in of an about would of get then And front would ERCOT the to of comes final see expect the their released to I Texas that. that in July, bit going the come where pretty rule strong PUCT that we'll expect the information planning, about the file out work year.

Ryan Levine

or in me of for around of some of question out last for then And came disclosure in Okay. ERCOT potential the new load terms recent business? any that Texas your implications

Joseph Tarry

No, absolutely.

Texas is one ERCOT we in of And -- if we've starting I serve you to bullets the recommend of we in that's projects where talked they kind look said that transmission presentation, West Texas the area. large premium at. that's one the at meet think loads operate basin, of as areas and before, the So that

look at but So then we that's to it, the investments how have that what to the in with I as for expected deals out think opportunities PUCT incremental in are wait you and there July comes load area. see

Operator

question-and-answer I turn back the our session. remarks. with to CEO, concludes Pat This over Instructions]. conference closing [Operator any like to Vincent-Collawn would

Patricia Collawn

Remember to when us safe. us Albuquerque. turn get Thank and left for thank you, Stay joining all come take to you and this Megan, you that morning. see

Operator

Thank The now conference concluded. today's attending presentation. for you has

may disconnect. You now

TXNM Energy (TXNM) 30 Apr 242024 Q1 Earnings call transcript