PNM Resources(PNM)2024-07-31 19:29Financial Data and Key Metrics Changes - Ongoing earnings for Q2 2024 were 2.65 to 0.55 in the prior year, driven by capital investment recovery and load growth [22] Business Line Data and Key Metrics Changes - TNMP reached an all-time system peak of over 2,700 megawatts, a 6% increase from the previous summer peak [9] - PNM's two 6 megawatt batteries became operational, aimed at reducing constraints on the distribution system [12] Market Data and Key Metrics Changes - The Texas Gulf Coast experienced power outages affecting approximately 116,000 customers due to Hurricane Beryl [7][10] - In New Mexico, the South Fork and Salt fires displaced around 10,000 residents, prompting a coordinated response from the company [13] Company Strategy and Development Direction - The company will officially operate as TXNM Energy, reflecting its business growth, particularly in Texas [6] - A focus on system resiliency and infrastructure investment is emphasized, with a filing for a System Resiliency Plan expected to include approximately 550 million issuance of junior subordinated convertible notes, benefiting its balance sheet and income statement [24] - A new rate request was submitted for 2025, with a phased implementation plan to mitigate customer impacts [16] Q&A Session Summary Question: Discussion on resource filing and utility-owned assets - Management emphasized that resource filings focus on customer benefits and reliability, with a mix of company-owned and PPA assets [28][29] Question: Impact of ERCOT transmission upgrades - Management noted that ERCOT's report indicated significant load growth and potential investments in the West Texas area, which could benefit the company [30][32] Question: Resiliency filing and equity funding - Management confirmed that the resiliency filing includes 150 million expected [35] Question: New Mexico rate case process - Management indicated that intervener testimony is expected, and discussions for potential settlements will occur as the process progresses [37][38] Question: Incremental Texas CapEx for resiliency - Management clarified that the current plan does not include the new resiliency spending for 2028 and beyond [41] Question: Tree trimming and vegetation management - Management reported that 55% to 60% of the outages during the hurricane were due to vegetation outside their right of ways, indicating a need for improved management [47][48]