Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Corporate Update (July 2019)
8 slides from Txnm Energy's corporate update, July 2019
Slide 1: Consolidated Application for San Juan Generating Station
Consolidated Application for San Juan Generating Station July 2019
Slide 2: Contact Information and Safe Harbor Statement
Contact Information and Safe Harbor Statement Investor Relations Contact Information Lisa Goodman Jimmie Blotter, Assistant Treasurer Manager, Investor Relations Director, Investor Relations and Shareholder Services U.S. 1-505-241-2160 U.S. 1-505-241-2227 Lisa.Goodman@pnmresources.com Jimmie.Blotter
Slide 3: Consolidated Application
Consolidated Application PNM filed a consolidated application for San Juan Generating Station on July 1, 2019: • Abandonment of remaining capacity in San Juan coal plant (Units 1 and 4) • Securitization of approximately $361 million includes estimated undepreciated investment of $283 million • Appro
Slide 4: Abandonment and Securitization Details
Abandonment and Securitization Details Abandonment: • Requests abandonment of San Juan coal plant after participation and coal supply contracts end June 30, 2022 Securitization: • Requests securitization treatment of approximately $361 million: undepreciated investment in San Juan Generating Station
Slide 5: Recommended Replacement Power Scenario Details
Recommended Replacement Power Scenario Details • Competitive RFP processes resulted in a cost-effective mix of resources owned by PNM and third-party providers • To manage the risks of integrating new battery storage technology, total storage capacity does not exceed 5% of peak load and the capacity
Slide 6: Replacement Power Scenarios Considered
Replacement Power Scenarios Considered Recommended Scenario 2 Scenario 3 Scenario 4 Scenario 1 - Hybrid San Juan Location No Fossil Fuel All Renewable • 280 MW gas(1) • 476 MW gas(1) • 40 MW battery(1) - PNM Owned Resources • 70 MW battery • 110 MW battery PNM Capex $298M $331M $243M $37M • 350 MW s
Slide 7: 2019 – 2023 Investment Plan
2019 – 2023 Investment Plan $3.6B investment plan updated to incorporate $298M replacement power; $278M generation investment and $20M transmission investment $1,012 $26 $208 $698 $634 $25 $665 $34 $20 $21 $30 $47 $285 $570 $70 $37 $20 $60 $88 $43 $128 $88 $79 $82 (in millions) $98 $142 $171 $169 $1
Slide 8: Updated 2021-2023 Potential Earnings Power
Updated 2021-2023 Potential Earnings Power Updates incorporate recommended replacement power scenario, adds 2023 • Partial year of San Juan rate base in 2022, no remaining rate base in 2023 • Interim financing supports replacement power until securitization proceeds received mid-2022 Allowed 2021 Ea