PNM Resources is strong and positioned for a robust financial performance with its move to be a “pure-play” regulated utility, PNM President, CEO and Chairman Pat Vincent-Collawn said at Thursday’s annual shareholder’s meeting.
“It has been a very busy, but productive 12 months,” Vincent-Collawn said during the 35-minute meeting at the newly renovated PNM headquarters in Downtown Albuquerque. “We have continued to improve the service to our customers while enhancing shareholder value and building for the future.”
Vincent-Collawn said consolidated earnings for 2012 were in the “upper range” of guidance given to investors and that the company attained its goal of earning its allowed return for subsidiaries PNM, the state’s largest electric utility, and the Texas-based utility, Texas New Mexico Power. She noted that Standard & Poor’s reacted to the company’s performance by upgrading PNM Resources to investment grade last month.
The company in 2011 sold Texas retail electric provider First Choice Power, and shed its interest in another Texas business, Optim Energy, to focus on the regulated utilities.
“Our move to a pure-play regulated utility put the company on the right track to deliver a strong financial performance while navigating a complex regulatory landscape and difficult economic conditions here in New Mexico,” she said, adding that growth rates in Texas drove an increase in sales for TNMP.
In February, the company increased its dividend payment by 14 percent and the board in December will consider a comparable increase, she said.
Reviewing some of the year’s highlights, she cited PNM’s “landmark” agreement with the state and EPA on a plan for meeting regional haze regulations at the San Juan Generating Station. She said the proposed plan – calling for two of the plant’s four coal-fired units to be shuttered and replaced with natural-gas generation – is better environmentally than what the EPA proposed, with less ratepayer impact. It will also reduce water usage by more than 50 percent, she said.