PNM Resources, Inc. (NYSE:PNM) Q1 2015 Earnings Conference Call Transcript

May 01, 2015 • 11:00 am ET

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PNM Resources, Inc. (NYSE:PNM) Q1 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good morning, and welcome to the PNM Resources First Quarter Conference Call. All participants will be in a listen-only mode. (Operator Instructions) I would now like to turn the conference over to Jimmie Blotter. Please go ahead.

Executive
Jimmie Blotter

Thank you, Chad, and thank you everyone for joining us this morning for the PNM Resources First Quarter 2015 Earnings Conference Call. Please note that the presentation for this conference call and other supporting documents are available on our website at pnmresources.com.

Joining me today are PNM Resources' Chairman, President and CEO, Pat Vincent-Collawn; and Chuck Eldred, our CFO; as well as several other members of our executive management team. (Forward-Looking Cautionary Statements) And with that, I will turn the call over to Pat.

Executive
Pat Vincent-Collawn

Thank you, Jimmie. And good morning, everyone. Thank you for joining us on this beautiful May 1. As we outlined in the news release, we had another good quarter building on the momentum we continued through 2014.

Going to begin today on Slide 4. Our GAAP earnings per share for the first quarter of 2015 were $0.18 compared to $0.16 in the first quarter of last year. Ongoing earnings were $0.21 compared to $0.18 last year. We are pleased with the results of the quarter. We are also affirming our guidance for the year of $1.50 to $1.62.

Before Chuck walks us through the financial detail, I want to take a few moments to talk about the regulatory proceedings that are underway, particularly in New Mexico. I will discuss both the BART and general rate case proceedings in New Mexico and do a quick wrap-up on proceedings at FERC and in Texas.

As most of you are aware, the hearing examiners in both the BART case and the general rate case issued disappointing recommendation. In the 2016 future test year general rate case, the hearing examiner is recommending that our filing be rejected for being incomplete. I will talk more about this in a few minutes.

For BART, the hearing examiner is going against established regulatory policy in recommending that the Commission not approved the settlement agreement that we have reached with other parties in the case. The negotiating process with the other parities included a lot of give and take that resulted in the best solution to not only the significant burden of compliance with the EPA's Clean Air Act, but also well positions the state for compliance with a recently announced Clean Power Plan.

I want to take a few minutes to outline the strong response we are using to earn approval from the Commission, which will allow PNM to continue to deliver the safest, most reliable, most cost effective and environmentally responsible power possible to our customers.

Let's turn to Slide 5 to review the BART filing. The hearing examiner issued his recommendation in the decision case on April 8. It included the denial of the CCN for the 132 megawatt of additional capacity of unit 4, which could be reconsidered when there is a substantially final