Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We have achieved 6% earnings and dividend growth since 2019 and are positioned to continue this trajectory even in the current market environment |
| Yes, we're still standing and we're better than we've ever been |
| The resolution of PNM's rate case gives us increased confidence in our plans |
| At PNM, lower operating costs as we transition our generation portfolio to carbon-free energy and higher transmission margins driven by increased usage of our system increased earnings year-over-year |
| At FERC, we've been able to offset regulatory lag and earn our 10% authorized return these last few years after acquiring the Western Spirit transmission line in 2021 |
| We have been improving the diversification of our rate base, prioritizing capital to make significant investments at TNMP to support the continued high growth in that service territory |
| At PNM, an increase in transmission investments also benefits FERC customers and are recovered through the formula rate |
| Turning to Slide 5; consistent execution of our plans has resulted in a strong track record of achieving our financial targets |
| We had a strong financial profile three years ago |
| We do think there is an operational advantage to having utility ownership of battery storage on our system as we have more control on how the resource is cycled to support our customers' patterns of use |
| We feel confident in our plan and the ability to execute on our growth targets |
| And with our increased diversification, it is even stronger today |
| But we've also gotten more certainty after the PNM rate case, and so we'll be able to put forward to plan, both in terms of financing and also solidified as the rate base growth that you see here |
| How would that impact your EPS outlook? Lisa Eden Ryan, I think the junior subs for us is really a great vehicle and efficient way to reach both our objectives for earnings growth and also support our credit metrics |
| The Energy Transition Act is achieving its goals for customer benefits as we exit coal |
| TNMP is our fastest-growing area of 13% and surpasses the level of rate base at PNM Retail by 2028 |
| Continued rate recovery of transmission and distribution investments at TNMP through TCOS and DCRF filings increased earnings |
| And I hope that you all agree that we are still standing better than we've ever been |
| Any regulatory lag stemming from the use of a historical test year is largely offset by low growth, the addition of a second DCRF filing and improved recovery under the resiliency rider |
| Higher transmission margins and income from our decommissioning trust also adds to earnings of PNM in 2024 |
| And the upside and the upside here, especially with the mobile gen, et cetera |
| Keep in mind that going into this case, PNM was able to earn its return by offsetting the regulatory lag on new investments made since 2018 through the energy transition |
| The move up to a positive outlet was done following the 2020 announcement of our merger based on the benefits of being part of a larger entity |
| Both Don and Lisa have been at the company over 20 years and have helped shape the course we've been charging |
| Now turning to Slide 6, we are reporting ongoing earnings today of $2.82 for 2023, once again ahead of expectations |
| We are seeing load growth to reduce the per-customer impacts and our fuel costs have been significantly reduced by our participation in the Western energy imbalance market and its optimization of renewable resources |
| I mean, do those conditions still exist today? I mean the company is a great plan that they've unveiled and it really highlights the growth in Texas |
| The transition to clean energy has also led to some economic development wins for the state, including Maxeon Solar, first U.S |
| The energy transition, along with customer needs for reliability and resiliency result in substantial growth for our Utility businesses |
| That allows rates to stay affordable, allows our cost to get recovered in a timely manner |
| Statement |
|---|
| Lower earnings at corporate reflect higher interest rates year-over-year, partially mitigated by the hedges we've previously put in place |
| In the past several rate filings, the most controversial issue has been recovery of our generation resources |
| On Slide 12, after taking into account these changes, the average residential bill at PNM is significantly lower than both our regional and national average |
| While some pieces of our recent PNM rate decision were disappointing, the questions around recovery of our legacy generation assets are resolved, and we now have a clear path going forward |
| Additionally, in response to concerns about extreme weather events and grid conditions, the Texas legislature in 2023 passed a series of bills aimed at encouraging investments to enhance grid reliability and resilience which I'll talk more about in a minute |
| Over the last few summers, TNMP has already seen a new peak in 2024 as cold temperatures in January pushed the system demand beyond the record-setting levels of last August |
| I know how much you have all missed that slide and its back |
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