The stipulation, which calls for a return on equity of 10.12% and an improved capital structure of 55% debt and 45% equity, requires approval from the Public Utilities Commission of Texas to be effective.
PNM Resources president and CEO Pat Vincent-Collawn said that this is a fair settlement reached by the parties and reflects a regulatory environment that encourages continued infrastructure investment and maintains solid financial footing for utilities like TNMP.
The key aspects of the stipulation reduce TNMP’s requested return on equity from 11.5% to 10.12%, maintain the utility’s existing depreciation rates and modify the requested regulated capital structure from 50-50 debt-to-equity to 55-45 debt-to-equity.
TNMP’s current regulated capital structure is 60% debt and 40% equity.
Based on 1,200kWh of electricity usage per month, residential bills will increase about $2.62 monthly if the stipulation is approved as filed and retail electricity providers pass the increase on to customers.
