PNM quarterly earnings up 59 percent

PNM employees work on an area on the West Side of Albuquerque, near Coors and Milne, which was undergoing a large upgrade project to help handle the increasing demand for power in that area in this file photo. (Image courtesy of PNM) 

Public Service Company of New Mexico reported a 59 percent jump in net income during the first quarter of 2019.

Earnings increased by $14 million compared with first-quarter 2018, from $7.7 million then to $19 million in the January-March period this year.

That growth helped boost net income for the utility’s parent firm, PNM Resources, which reported nearly 4 percent growth in earnings to $18.7 million, up from $15 million in first-quarter 2018.

Given PNM’s robust performance, the company raised its earnings guidance by 2 cents for 2019 to a range of $2.10 to $2.20 per share.

“First quarter financial results reflect continued growth in New Mexico that has increased our expectations for 2019 earnings,” said PNM Resources Chairman, President and CEO Pat Vincent-Collawn in a prepared statement.

PNM benefitted from a number of things during the first quarter, including the second phase of new base rates that state regulators approved in late 2017. The rate hike was scheduled for staggered implementation over two years, with the first phase taking effect in January 2018 and the second one this year.

Lower outage costs and improved earnings from investment securities also contributed to growth. But the biggest factor was increased customer demand during the quarter, reflecting both higher usage from particularly cold weather this winter, plus an improvement in the New Mexico economy, said PNM Resources Chief Financial Officer Chuck Eldred.

“Load growth was up 1.2 percent in the first quarter, which was higher than expected,” Eldred said in a conference call with investors Tuesday morning. “The weather was colder…and we saw higher industrial usage, including from Facebook, which opened its data center (in Los Lunas) during the quarter.”

PNM’s performance offset an unusually sluggish quarter at PNM Resources’ other utility, Texas New Mexico Power.

TNMP’s net earnings dropped by 56 percent, from $9.4 million in January-March 2018 to $4.1 million this year. It did benefit from new base rates that took effect last December, but a reduction in its allowed return on equity, from 10.125 percent previously to 9.65 percent now, eclipsed the higher rates. TNMP also faced increased depreciation rates and the return of excess deferred income taxes to customers during the quarter.

Share Your Story

Nativo Sponsored Content

taboola desktop

MORE ARTICLES LIKE THIS

1
Is methane reduction the low-hanging fruit?
Energy
We will soon have the technology ... We will soon have the technology to track and pinpoint industrial leaks
2
A cultural crossroads and history book of the land
Energy
Los Alamos National Laboratory is seeking ... Los Alamos National Laboratory is seeking a 12.5-mile, 115-kilovolt power transmission line that would cut across the plateau
3
Top New Mexico lawmakers concerned about oil and gas ...
Energy
A group of powerful New Mexico ... A group of powerful New Mexico lawmakers is questioning whether state environment officials have done enough to weigh the potential economic effects of a ...
4
NM wind project of historic size nearly complete
Business
Renewable power developer Pattern Energy is ... Renewable power developer Pattern Energy is nearing completion of a mammoth wind project in east cen ...
5
Acoma governor: Oil, gas leasing needs tribal input
ABQnews Seeker
Archaeologist notes impact of 100 years ... Archaeologist notes impact of 100 years of rampant development is substantial
6
PNM, Avangrid sweeten merger deal
Energy
Offer of strict regulatory controls, millions ... Offer of strict regulatory controls, millions for economic development
7
New Mexico and the federal infrastructure bill: FAQs
ABQnews Seeker
Additional funding under grant programs included ... Additional funding under grant programs included in the act would also be available
8
NM could get billions in new federal funding
ABQnews Seeker
State a key player in Biden's ... State a key player in Biden's clean energy investment plans
9
NM takes multi-pronged approach to curbing methane emissions
ABQnews Seeker
Last year, New Mexico's state government ... Last year, New Mexico's state government worked with federal regulators to document aerial footage of oil and gas sites.