Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What is the current amount of wildfire insurance that the company has in Texas and New Mexico, and can you share the cost of securing that insurance?
A: Patricia Collawn, Chairman & CEO of PNM Resources Inc, responded that the company is currently renegotiating its insurance, which will expire this summer. She mentioned that it is not advisable to publicly discuss details during the negotiation period.
Q: Could you provide an update on the opportunity to potentially increase vegetation management and its impact on O&M outlook?
A: Don Tarry, President & COO of PNM Resources Inc, explained that the company has continuously increased its vegetation management in both Texas and New Mexico over the past years. He noted that the resiliency filing in Texas allows for the recovery of costs over the amount from the last rate case through a rider, which will be part of their resiliency filing in the third quarter.
Q: Any updates on the CapEx opportunity for mobile generation or the legislative process to pursue it?
A: Don Tarry mentioned that a proposed rule for mobile generation is expected in June, with a final rule anticipated by the end of the year. He refrained from speculating on where the CapEx might come into play until the final rule is established.
Q: Are there any implications for your business from the recent disclosure around new potential load in Texas as per Ercot?
A: Don Tarry highlighted that one of the areas they serve is the West Texas area, which is expected to see large loads starting in the Permian Basin according to Ercot. He indicated that there are opportunities for incremental investments based on the load expectations in that area.
Q: What are the key year-over-year changes in the first quarter of 2024?
A: Lisa Eden, Senior VP & CFO of PNM Resources Inc, noted that earnings per share were $0.41, exceeding expectations. She mentioned rate relief from TI costs and DCRF mechanism increased year-over-year earnings at TNMP, and new retail rates implemented at PNM were based on a 2024 future test year.
Q: What are the guidance assumptions for the rest of the year 2024?
A: Lisa Eden affirmed the annual guidance range for 2024 of $2.65 to $2.75. She mentioned that the first quarter earnings were ahead of expectations, and no changes have been made to their capital investment plans or rate-based growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
