Texas-New Mexico Power Company (TNMP), a subsidiary of TXNM Energy (NYSE: TXNM), filed a comprehensive settlement in its base rate review with the Public Utility Commission of Texas. The settlement allows TNMP to recover its filed rate base of $2.8 billion as of June 30, 2025.

Under the settlement terms, TNMP maintains its currently authorized return on equity of 9.65% and 45% equity ratio. The company will also implement $20.5 million in rate rider recovery for Hurricane Beryl restoration costs over five years.

The agreement addresses increased operations and maintenance costs not covered by interim capital recovery mechanisms and changes in deferred federal income tax amortizations, partially offset by depreciation rate adjustments.

Multiple parties joined the settlement, including the Public Utility Commission of Texas Staff, Alliance of Texas-New Mexico Power Municipalities, Cities Served by Texas-New Mexico Power Company, Data Center Coalition, Hunt Energy Network, Joint Data Center Group, Office of Public Utility Counsel, Texas Competitive Power Advocates, Texas Industrial Energy Consumers, and Walmart. Amazon Data Systems and Texas Energy Association for Marketers do not oppose the agreement.

The settlement requires approval by the Public Utility Commission of Texas. Under interim rates, any approved rates will be effective retroactively to May 22, 2026.

TXNM Energy delivers electricity to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities TNMP and PNM.