Investor Presentaiton
2019-2023 Potential Earnings Power
2019 Ongoing Earnings
Allowed
Guidance Midpoint
2020 Earnings
Potential
2021 Earnings
2022 Earnings
2023 Earnings
Potential
Potential
Potential
Return/
Equity
Ratio
Avg
Avg
Avg
Avg
Avg Rate
Base
Return EPS
Rate
EPS
Rate
EPS
Rate
EPS
Rate
EPS
Base
Base
Base
Base
9.575%/
PNM Retail (1)
$2.4 B 8.9%
$1.37
$2.4 B
$1.44
$2.5 B
$1.52
$2.4 B
$1.48
$2.4 B
$1.48
50%
San Juan
Replacement (2)
9.575%/
50%
$150 M
$0.09
$280 M
$0.17
PNM Renewables (3)
PNM FERC(4)
9.575%/
50%
10%/
~50%
$115 M 9.575% $0.07 $150 M
$0.09
$145 M
$0.09
$140 M
$0.08
$130 M
$0.07
$275 M 6.9%
$0.12 $330 M $0.15-$0.20 $530 M $0.26-$0.30 $740 M $0.37-$0.42 $780 M $0.39-$0.44
Items not in Rates (5)
$0.04
($0.04)-($0.02)
Total PNM
$2.7 B
$1.60
TNMP(6)
9.65%/
45%
$1.1 B 9.65% $0.67
$2.9 B
$1.3 B
Corporate/Other (7)
($0.19)
Equity Financing Plans (8)
Total PNM Resources
$3.8 B
$2.08
$4.1 B
($0.03)-($0.01)
$1.64-$1.71 $3.2 B $1.84-$1.90
$0.73 $1.4 B $0.80
($0.21)-($0.19)
($0.21)-($0.19)
($0.01)-$0.00
($0.09)-($0.08)
$2.15 - $2.25 $4.6 B $2.34 - $2.43
($0.03)-($0.01)
$3.4 B
$1.6 B
($0.03)-($0.01)
$1.99-$2.06 $3.6 B $2.08-$2.15
$0.84 $1.7 B $0.90
($0.19)-($0.17)
($0.23)-($0.21)
($0.17)-($0.15)
($0.17)-($0.15)
$4.9 B $2.47-$2.58 $5.3 B $2.58 - $2.69
(1) Average rate base has been reduced by approximately $130M to represent ($0.05) of Earnings Potential for the lost equity return on Four Corners investment determined in the 2018 general
rate review. 2022 and 2023 rate base also reflects the removal of $283M undepreciated SJGS investment upon its retirement in mid-2022 to be recovered through securitization.
(2) Replacement Power includes $298M investment implemented mid-2022; $278M of generation investment and $20M of transmission investment.
(3) PNM Renewables reflect assets collected through the Renewable Rate Rider.
(4) PNM FERC in 2021-2023 reflects a return of 8%-9% to account for Western Spirit investment recovered through incremental rates.
(5) Consists primarily of decommissioning/reclamation trust income (net of fees/taxes), AFUDC, certain incentive compensation, and the 65MW ownership of San Juan Unit 4 (prior to retirement).
(6) TNMP earnings include additional recovery for Energy Efficiency, along with items excluded from rates (primarily AFUDC) and interest savings from the refinancing of existing debt.
(7) Corporate/Other includes the earnings impacts associated with short and intermediate term bank debt and the 50% equity interest in NMRD.
(8) Equity Financing Plans reflect financing alternatives, including ATM Program issuance of up to $150M (dilution impacts assume $50M issued in 2020
and $100M issued in 2021, with a full year dilution impact in 2022), and $300M mandatory convertibles beginning mid-2021.
This table is not intended to represent a forward-looking projection of 2020-2023 earnings guidance.
PNMResources
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