Investor Presentaiton
TNMP Rate Recovery Framework
Process
General Rate Review
Standard rate review
involving comprehensive
filing, discovery, interveners,
hearings, etc.;
Staff recommendation and
PUCT approval; 180-day clock
(potential for settlement)
Yes
DCOS (Distribution
Cost of Service)
Pre-defined schedules limited to
distribution investments with
discovery, interveners, hearings;
Staff recommendation and PUCT
approval; filed 1st week of April
with rates implemented Sept 1
(potential for settlement)
No
TCOS (Transmission
Cost of Service)
Pre-defined schedules; Staff
recommendation and PUCT
approval, 60-day clock
No
Capital Structure /
ROE/Cost of Debt
Rate Base/ Property
Yes
Tax/Depreciation
Other expenses
Yes
Timing (allowed)
Current TNMP
Filings
PUCT defined (1)
Historical: filed May 2018
(test year of FY 2017),
approved December 2018,
rates implemented January
2019: 9.65% ROE, 45% Equity
Distribution only
No
Once per year
2021 Filings:
Filed Apr 5, 2021, settlement
approved 98% of requested
recovery, rates implemented
Sept 1, 2021
2022 Filings:
Filed Apr 5, 2022
Transmission only
No
Twice per year
2022 Filings:
1) Jan 2022 filing, approved/
implemented in Mar 2022
2) Expected July filing, with rates
expected to be implemented in
September
(1) PUCT rule calls for general rate review within 48 months of most recent order setting rates (TNMP order issued
December 2018), unless earning less than 50 basis points over the average authorized ROE of ERCOT investor-owned
utilities (based on year-end rate base, weather-normalized).
PNMResources
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