PNM Resources’ (PNM - Free Report) principal subsidiary, Public Service Company of New Mexico, filed a rate settlement agreement with the New Mexico Public Regulation Commission (NMPRC) against the initial base rate filing in Dec, 2016.
Getting into the Details
Last year, the company filed an application with the commission stating a deficit of $99.2 million in non-fuel revenue. (Read more: PNM Resources' New Mexico Affiliate Files for Rate Increase)
However, under the latest rate settlement filing, PNM Resources’ revenue will grow by only $62.3 million.
A phase-in of $62.3 million will minimize the impact on the customers. If the filing is approved by NMPRC, residential customers will see an estimated average annual bill increase of 3.9% or $32.3 million in 2018 and another 3.4% or $30 million in 2019. The new rate will be effective Jan 1, 2018 subject to approval.
The base rate change will not have any impact on the fuel and purchased power costs, energy efficiency costs and renewable costs and will be subject to periodic review by NMPRC.
Shares of PNM Resources increased 13.9% in the last 12 months, outperforming the Zacks categorized Utility – Electric Power industry’s gain of 0.5%.
PNM Resources carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the same space are Brookfield Infrastructure Partners LP (BIP - Free Report) , CenterPoint Energy, Inc. (CNP - Free Report) and Alliant Energy Corporation (LNT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brookfield Infrastructure’s Zacks Consensus Estimate for 2017 moved up approximately 1.3% to 80 cents per share in the last 60 days.
CenterPoint Energy’s Zacks Consensus Estimate for 2017 moved up approximately 5.3% to 20 cents per share in the last 60 days.
Alliant Energy’s Zacks Consensus Estimate for 2017 moved up approximately 2.5% to 80 cents per share in the last 60 days.
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