GAAP earnings were $8.4 million, or $0.11 per diluted share, compared with $43.5 million, or $0.62 per diluted share in 2006. Earnings per share were impacted by a 9.6% increase in average diluted shares outstanding.
Ongoing earnings are adjusted to exclude the impact of non-recurring items and net unrealized mark-to-market gains and losses on economic hedges. For the quarter, ongoing earnings exclude mark-to-market losses of $5.8 million in 2007 after-tax, or $0.07 per diluted share.
Jeff Sterba, chairman, president and CEO of Public Service Company of New Mexico (PNM) Resources, said: Our third quarter earnings reflect reduced contributions from First Choice Power and our wholesale segment. Despite strong customer growth of more than 7%, tighter per MWh margins and weather impacted First Choice Power’s earnings.
Our wholesale business performance was down compared with last year because of weaker market conditions in 2007 and the contribution of the Twin Oaks Power facility to the EnergyCo joint venture, which was the first step in restructuring our long-term unregulated business strategy.
