PNM Resources, Inc. (NYSE:PNM) Q3 2020 Earnings Conference Call - Final Transcript

Oct 30, 2020 • 11:00 am ET

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PNM Resources, Inc. (NYSE:PNM) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Patricia K. Collawn

relief programs. And I'll talk more about that in a minute. And we updated our earnings guidance range to reflect our revised expectations for 2020. We are targeting the midpoint of this range of $2.23 per share to $2.31 per share. Don will provide more on the financial details.

Last week, we announced the strategic merger with AVANGRID. Both companies are focused on ESG, tiered the infrastructure growth and the transition to clean energy. This combination creates a larger, more diverse entity that provides PNM and TNMP with the resources to take their next steps forward. We've structured a transaction that provides benefits to customers, communities, employees and shareholders. We expect to close in the fourth quarter of next year.

In the meantime, we are focused on executing our business plan and delivering safe, reliable, affordable and sustainable energy to customers. We have carried forward our investment plans to 2024 with a continued focus on T&D infrastructure that supports a reliable, resilient grid in New Mexico and Texas.

Turning to Slide 5, I'll walk through the steps for approval of the merger. We expect to file our proxy in the latter part of December with the shareholder meeting and vote in February. On the regulatory side, we are currently working on our filings for the New Mexico and Texas commissions, which should be submitted in November. This will be followed soon after by the other remaining filings. In New Mexico, we will delay our General Rate Review and decoupling until after we receive transaction approval from the New Mexico Public Regulation Commission. We still have the ability to continue with ratemaking filings under the annual FERC formula rate filing and TCOS and DCOS filings at TNMP.

Turning to Slide 6, I'll cover some of our environmental, social and governance highlights for the third quarter. We continue to provide environmental leadership and lead by example with our own goals, in addition to partnering with communities and customers to make a more meaningful impact. We announced an agreement to partner with San Diego National Laboratories in R&D projects focused on energy resiliency, clean energy and national security. Our combined expertise will advance New Mexico as a clean energy leader and help fill the technology gap in providing emissions free energy.

Caring for our communities is part of our core values and we are committed to finding big and small ways to drive positive change in the world around us. We continue to foster our relationships with tribal communities throughout New Mexico, including with our new PNM Tribal Fiber Plan to support online learning, economic development, health care and public safety. Our team stand ready to assist. It's how we operate.

Our strongest highlight for the quarter relates to customer support. Many of our customers have been staying at home during the pandemic and record high August temperatures led to increased customer bills. PNM set aside $2 million of shareholder money to create it's COVID customer relief programs to provide additional assistance to