Slide 1: PNM General Rate Case Revisions to Proposed Settlement
PNM General Rate Case Revisions to Proposed Settlement May 23, 2017
Slide 2: Contact Information and Safe Harbor Statement
Contact Information and Safe Harbor Statement Investor Relations Contact Information Lisa Goodman Jimmie Blotter Manager, Investor Relations Assistant Treasurer U.S. 1-505-241-2160 U.S. 1-505-241-2227 Lisa.Goodman@pnmresources.com Jimmie.Blotter@pnmresources.com Safe Harbor Statement Statements made
Slide 3: Key Points of Proposed Settlement Agreement
Key Points of Proposed Settlement Agreement May 23 Revisions Original May 5 Proposed Settlement Terms None • ROE unchanged at 9.575% • $62.3M settlement None • $7.5M financial impact resulting from the amortization of excess deferred state taxes over 3 years(1) • PNM filed in December 2016 for a $99
Slide 4: Financial Impact of Proposed Settlement Agreement
Financial Impact of Proposed Settlement Agreement No changes to financial impacts Proposed Settlement Agreement Financial View Phase I - 2018 Phase II - 2019 (in millions, except EPS) Settlement increase (net revenue increase) $32.3 $62.3 (1) Accelerated amortization of excess deferred state taxes 7
Slide 5: Key Components of Revised Proposed Settlement Agreement
Key Components of Revised Proposed Settlement Agreement Revisions to proposed settlement terms to address Hearing Examiners’ May 12th Order: To address Hearing Examiners’ concern regarding prejudgment of San Juan and Four Corners Power Plant issues: • Elimination of $10M of additional annual depreci
Slide 6: 2018 - 2019 Potential Earnings Power
2018 - 2019 Potential Earnings Power No changes to Potential Earnings Power presented on May 5, 2017 2018 transitional year; 2019 midpoint EPS reflects 8% growth(1) Allowed Return 2018 Earnings Potential 2019 Earnings Potential / Equity Ratio Avg Rate Base EPS Avg Rate Base EPS PNM Retail 9.575% / 5
Slide 7: Next Steps
Next Steps • NMPRC to consider 1-month extension to suspension period (from November 6th, 2017 to December 6th, 2017) • Hearing Examiners to consider further revisions to existing procedural schedule: Procedural Schedule Revisions made on (Settlement/Litigation) As of May 1, 2017 May 17, 2017 Testim
Slide 8: Parties by Position
Parties by Position May 23 Settlement May 5 May 23 Settlement May 5 Signatories Settlement Undetermined Positions Settlement Position (at time of filing) Position Staff Signatory Bernalillo County Signatory New Mexico Attorney General Signatory Buckman Direct Diversion Board Will Not Oppose Albuquer