TNMP Files Base Rate Review

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November 17, 2025 6:30 AM EST

ALBUQUERQUE, N.M., Nov. 17, 2025 /PRNewswire/ -- TNMP, the wholly-owned subsidiary of TXNM Energy (NYSE: TXNM) in Texas, filed its anticipated base rate review on Friday.

The filing reflects significant growth of TNMP's system over the last 7 years since the previous base rate filing.

TNMP requests recovery of $2.8 billion of rate base as of June 30, 2025, a requested return on equity of 10.4% and a 47.54% equity ratio. Current rates are based on rate base of $835 million, an allowed return on equity of 9.65% and a 45% equity ratio.

The request also incorporates increased operations and maintenance costs, which are not recovered through semi-annual Transmission Cost of Service (TCOS) and Distribution Cost Recovery Factor (DCRF) filings, changes in deferred federal income tax amortizations and updates to depreciation rates.

The request is adjusted to exclude increases in interest expense resulting from the refinancing of debt associated with the proposed acquisition of TNMP's parent company, TXNM Energy.

Schedule 1 below summarizes the key components of the rate filing.

In addition, TNMP is requesting $20.5 million in rate rider recovery associated with Hurricane Beryl restoration costs. The proposed rider would be recovered over a five-year period and is separate from the base rate request.

If approved by the Public Utility Commission of Texas, new rates are expected to become effective in mid-2026.

The filing can be found at: https://www.txnmenergy.com/investors/rates-and-filings/tnmp-puct-filings.aspx.

Schedule 1





2025 TNMP Rate Case Drivers

Transmission

TX-Retail

Total





ROE(1)

$       5.6

$         3.7

$        9.3

Cost of Debt(2)

(5.5)

7.8

2.3

Change in Capital Structure(3)

1.8

3.1

5.0

WACC Change Subtotal

$       1.9

$      14.7

$     16.5





Core Rate Base Growth(4)

1.3

16.4

17.7

Increased O&M(5)

2.7

30.9

33.6

Change in Excess ADFIT Amortization

3.9

5.0

8.9

Change in Depreciation Rates(6)

0.8

(6.5)

(5.7)

Merger Related Debt Cost Credit

(6.3)

(7.9)

(14.2)

Other

0.3

(0.7)

(0.4)

TCRF Expense


85.4

85.4





Total Revenue Requirement Increase

$     4.5

$     137.2

$     141.8

Revenue Offset (TCRF & Load Growth)

-

(108.0)

(108.0)

Net Rate Increase

$     4.5

$       29.3

$       33.8





Notes:

(1) ROE for Transmission reflects the increase from 9.65% (as authorized in last rate case) to 10.4%. For TX-Retail the increase reflects moving from 10% (DCRF alternative WACC methodology) to 10.4%.

 

(2) Cost of Debt for Transmission reflects the decrease from 6.45% (as authorized in last rate case) to 5.6%. For TX-Retail the increase reflects moving from 4.64% (DCRF alternative WACC methodology) to 5.6%.

 

(3) Equity weighting in the WACC reflects the requested 47.54% equity compared to the 45% equity currently authorized.

 

(4) Core Rate Base growth includes Return on, Dep and TOTI related to G&I investments since the previous rate case, Distribution investments from January 2025 through June 2025, and offsetting impacts of ADIT on transmission investments.

 

(5) Major O&M drivers include:

- Vegetation Management - $12M

- Headcount increases (118 new positions) - $6M

- Catastrophe Reserve increase - $6M

- Insurance Premiums (inc. wildfire) - $3M

- Other normal inflation, offset with higher A&G capital loads

About TXNM Energy:
TXNM Energy (NYSE: TXNM), an energy holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company's website at www.TXNMEnergy.com.

Contacts:

Analysts


Media

Lisa Goodman


Corporate Communications

(505) 241-2160


(505) 241-2743

FORWARD-LOOKING STATEMENTS
Statements made in this news release for TXNM Energy, Inc. ("TXNM") or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies, including the unaudited financial results and earnings guidance, are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates and apply only as of the date of this report. TXNM and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, TXNM and TNMP caution readers not to place undue reliance on these statements. TXNM's and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein. These forward-looking statements generally include statements regarding the proposed merger, including any statements regarding the expected timetable for completing the proposed transaction, the ability to complete the merger, the expected benefits of the merger, projected financial information, future opportunities, and any other statements regarding TXNM Energy's and Blackstone Infrastructure's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates and apply only as of the date of this report. TXNM and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, TXNM and TNMP caution readers not to place undue reliance on these statements. TXNM's and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/tnmp-files-base-rate-review-302616613.html

SOURCE TXNM Energy, Inc.


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