PNM PNM Resources

Jimmie Blotter Director-Investor Relations
Pat Vincent-Collawn Chairman, President and Chief Executive Officer
Chuck Eldred Executive Vice President and Chief Financial Officer
Greg Gordon Evercore ISI
Julien Dumoulin-Smith Bank of America Merrill Lynch
Ali Agha SunTrust
Andrew Levi ExodusPoint
Call transcript
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Good morning, and welcome to the PNM Resources First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jimmie Blotter, Director of Investor Relations. ahead. go Please

Jimmie Blotter

conference And morning Andrea. earnings everyone, joining website for for call. are supporting Thank on available the thank PNM this our this presentation the for note XXXX and Resources us other Please documents you, at that you, call first conference quarter

of our team. Resources' well and President Chief Officer, as are Joining and Pat Vice me PNM today management Vincent-Collawn; Executive CEO, several our other members as President Chairman, and executive Chuck Eldred, Financial

Before call some need the pursuant PNM update expectations obligation current should statements the caution Securities I remind information to and that Resources estimates We forward-looking assumes and no XXXX. Private considered you morning forward-looking I are turn Litigation all Pat, based to over of this to the that Reform this you upon information. statements of that the be Act to provided of

affecting our quarterly annual results, discussion Form For Resources' I'll call. please the PNM X-K detailed Form filed on to reports on to refer as reports with over for as with Pat XX-Q, of reports a turn that, And well our on future and Form factors SEC. current it XX-K,

Pat Vincent-Collawn

and us quarter Jimmie, everyone. you, for our earnings morning, joining Thank you today Thank call. good first for

Slide begin Let's on company and some updates. financial results X with the

per to per quarter $X.XX Our are first compared first year. reflect in $X.XX XXXX in Ongoing share $X.XX GAAP $X.XX share of the earnings earnings of in last the of first compared earnings quarter of the quarter to XXXX.

the expectations. earnings and reflect result, as at for our again first Mexico, to load we top increased once increased guidance of a growth to the range New and, in end XXXX quarter, During have raised weather PNM contributed

Mexico Governors few solid Governor the is XXXX. session guidance New March The will Energy The to quarter was through minutes. law the session. financials policy now and key Act a in led passed provide Senate This further energy Our for was and produced Chuck it for XX, the by the highlights new effective a details Transition legislative the first The on the that year's June state on the signed the XXXX and $X.XX. for into legislature. $X.XX is House, legislation XX. the

key One was helps clean make securitization, the components of of allow customers. energy, for bill transition to affordable the the for which more to

XXX% renewable key standard renewables set XX% XX% XXXX, component by XXXX. and by XXXX, the then is XX% carbon-free forth. Another by XXXX by resources and

us brought solve Integrated to XXXX. to previous over by XX% XXXX, us XX% Resource the remaining that Our Plan emissions-free challenged by

would date we've to gone we have earlier scenarios the to emissions back free an themselves the consider can and earlier that Act. Transition Energy As believe five goal company achievement to than be a meet changes by XXXX, set this years requirement, lend

power. are We on and the passing a to identifying the Transition guidance some Act to to continue contain for were XX Energy paths path new replacement collaborative plan goal achieve efforts in to also that determine the of this right different how The resource choose the years. next legislation integral

maintain in should For The district. states that Juan bill also the systems. example, to locating and to and that bill area is storage given preference states the energy in the school tax resources the the the that base property operate be control, discretion utility to replacing San have

our San of I'll in of talk the components the filing into we Juan abandonment alternatives, We minute. bill will take prepare more a for replacement which power and account as about all the

Juan area our next workers producing Bill XXXX. will Resource needed provides year, San The by our next required goal XXXX align XX that plans zero Plan contemplate to of of by to communities. July long-term with will assistance Integrated resource X out the scenarios also our Looking for for years in the emissions

retirement provided committed have years, many not plant. their and with our supporting commitment our and the and to to non-profit needed of with to Act, in to through will move services in the provide the We part that are community the available end our this been have we work the ensure for assistance agencies state of assistance families made employees Energy Outside of plans forward. the Transition training to

go Another makeup states XXXX. commissioners would majority legislation mandatory as the in line. the to the majority next responsibilities its of resolution the It with and was the the an and acquisition of resolution Western education strong combined A to of bill. commission Mexico was legislative of pass bipartisan also Three as this The determined passed XX, House to a vote step to companies passed narrows Regulation changes of was requires General experience. bipartisan that amendment state five the the Election. Public minority appointed ballot joint endorsed by nomination significant piece elected the required is Commission current to focus on session beginning commissioners or Spirit through that New in current is certain public service change from the a recent commissioners the well. to for these the five constitution, the the more to announcement Senate resolution introduced of Senate meet The of have and around other leaders the changes. week XX an simple resolution XXXX support by for Because need change to last on demonstrating legislature. the the transmission candidates was and utilities three for requirements highlight A

The system the these energy, or a RETA, New and where it deploy happy efforts energy Mexico goal goal the generation are a been Governor's the Mexico acquisition to facilities PNM's for completion. also to potential for acquisition our obligation and developing and to have to move service Mexico Pattern resources has transmission provide grid, is clean provide Energy Authority, support incremental capacity with solar PNM growth the been our presented. has renewable the needed. for New it and that its of acquire Development aligns Transmission on years, to have This line, must will New energy fulfilled leader. wind resiliency While we had transmission This opportunities the with agreed and along the RETA Renewable after and developed several system. be overall improving of their to we additional make capital incredible reliability and

Regulation FERC week, will tariff will filing acquisition. incremental to Of and course, necessary pay the by related an filing at use we made for rate the Public the will A also be New the which for approvals, this Pattern transaction is of making the regulatory subject to line. be at a this Commission Development Mexico

Now turning I agenda filings recent through regulatory to the will and Slide other in X. walk the updates expect coming months. to to

storage call We in are we the file appeal for I for Mexico Supreme stay renewable last the with pricing the not undepreciated mentioned commission securitization by responses actions are filings, a commission's compliance the these Juan plan abandonment San resources. Court and we of order the by further requested terms along for Court June. following CNNs for to XX. file an to order that X the responses. temporary taken March New issued seeing of quarter's on parties has abandonment what on energy of and replacement industry Regarding of by costs March filing across Supreme breakthroughs the The that end for encouraged of power and

maintain our confident ability cost-effective, for are in ultimately, and, customers. our We reliable energy to emissions-free

to preferences Our the the We will And future-rate be commission participate is in ask the the future standards. of verified based case. Energy in confidence June quarterly quantify resources San for the alternatives our how markets of energy market customers. recovery Western be the towards that clarification asset will cost the would the in necessary for the case. lease the plans Imbalance that to with consider evaluated may ISO in issued by us invest cost to future parties included joined a filing be also allowing currently an commission filing replacing the regulatory on Juan, include we'll work the of the when Transition served for used creation and to benefits order considered on considered Energy the market the our the benefit other reports of Act The participation general-rate needs benefits, RPF but to from costs the commission Market, meeting the in for providing a recover that California

We original savings of are those possible. with April plans as Market moving our forward to the in providing enter XXXX as to soon customers begin Imbalance expected and

regarding to the directly to renewable plans the directly for customers. purchased reconsider the commission recovery increases I that rider. of XX, a benefit the the one rate approved expect under commission's that the last to the our received wind renewable a upgrade, without that line, with and rehear to Project. In rehearing the point allocation cost necessary PNM to to financial The an for to Transmission importantly, want customer. on assigned to upcoming is meet line we power networks customers of provide week is filing have existing will to renewable customers deliver cost power upgrade. most for network instead this out request and This BBX upgrade system order requirements of will the the request. opportunity our more our filing commission full order to on and to project May will a the construct the Facebook provide our across on of act benefit agreements costs recognize supports energy while year's it and rely filing service plan, that we to BBX standard, additions, RPS case the reliability, commission certain update assigning it made to request until transmission megawatts CCN The of to has, power XXX at overall their also our We

with filing we it usual general million TCOS June filing our that We a And We implemented on call. This during to at the pattern our for detailed to quarter in typical the for January expect recovery our delay December, at our at follow during will key our turn over I of filing numbers. TNMP, increase at for was in rate base we of yearly a transmission-rate approved had request with March. look because now abandonment cost after earnings along that, approved larger to was in filings, general with Over TCOS will than we twice provide filing this in fall. end rate second an the review our rates Chuck case $XX.X the and filed from XXXX. update our second filing implemented

Chuck Eldred

recap Thank And you, on with joining thank you Beginning a for of results. first X Slide Pat. earnings And morning, us. good everyone. quarter

the to to first quarter XXXX earnings in PNM's share, of $X.XX $X.XX were Our $X.XX QX was $X.XX. ongoing came per at guidance compared XXXX. earnings of for up we

second Load the higher higher degree support investments. of offset for growth year. increases the planned, a PNM. than at compared property along and rate of continue in was our to the colder As retail QX increases our was O&M This costs than This expected $X.XX led in to capital interest in see with X.X% heating reliability, to expectations with higher Weather increase was from when January first taxes low to was XXXX. earnings from debt higher also implemented we refinancing. QX savings depreciation and days than to XXXX to maintain XX% increase quarter. normal last were for XXXX, quarter phase of up and picked year-over-year that growth These by

Four in Corners outages the of start Four shift most first a down, the outage its shifts To moved accommodate X quarter the to the Juan plan quarter. in This our quarter. had second our in longer quarter. Unit expected Corners second schedule. to from we outage outage costs also accelerated to were second quarter first that being We planned San

$X.XX rates revised TNMP have distribution an XXXX. for the our to compared result the of account new in expected movement. down appendix for implemented the this in quarterly to to This quarter was We earnings is January.

rates. to transmission recovery volumetric-based rate and our changes distribution rates to more was from wholesale retail rate operations demand-based moved of and the design recovery rebalanced Our between

in increase pushed the be rate earnings for QX recovery more QX. TCOS the will an will year, the and overall volume quarters in result While increase of higher into

raises that For the throughout rates the year. expense base included depreciation ratably example, rate increase increased an TNMP's

heavier the and recovery While QX in are volumetric largely offset that rates QX. through comes in

have second not typical because our recover unable to TCOS in during rate to investments transmission did general also are file we XXXX review. filing We our

higher have expenses without increase these we depreciation from a in As property revenues. tax QX, in offsetting result, an and investments

As March. filing Pat our mentioned was TCOS of the million earlier, approved January $XX.X end near of

for in year, the was fixed senior quarter. due of interest entered higher we the down QX. So to XXXX. of we'll begin of last the $X.XX loan rate of early investments March May into Corporate Westmoreland of these that along unsecured with and recovery in the Other This seeing $XXX million a was notes largely repayment on in

Now information. turning to for our X Slide load

The mentioned, I a driven remain news loads center PNM be Facebook As volumetric with commercial guidance which data the by our expectations of continue at was year. in growth first X.X% to and the made that in includes our industrial the line the was above its load grew coming with strong Residential six quarter. expected buildings online. usage, that annual and first higher for

Looking for and growth our positive are this increasing economy forward, and as New result. see Mexico we indicators year a to continue the guidance earnings in load expectations

X.X%, year year, range to X.X% to our to the the which our X%. load have for We for expectations raised guidance X.X% brings a total from of industrial load

TNMP, quarter, a small impact growth Turning larger a had being changes to on quarter percentage. low-volume first the with the

than both As interconnection small in first unprecedented trending see but higher far seeing also annual volumetric-load an in this expectation in we've in XXXX and XXXX. new continue the requests, request increases increase in growth We're we considerably were are seen and is customer the additions. quarter negative before, they to levels business, positive. of residential transmission meter the In year, commercial so remains

the result, confident we a our As full remain expectations in for year.

PNM downside in X. Slide the our year. associated stronger guidance $X.XX the lower two experienced we to to the end reflect weather turning with that months the February, reduced Now first of by of the raised In risks

range our our $X.XX the the As we we're achieve of increase, our loss miscellaneous and rate, tax Other remainder to $X.XX. is That with The see tax $X.XX debt this of look to to a tax and guidance and potential balances, associated load some for raised distribution. expectations our lower out we more now resulted raising are in and year, debt also further to interest the top midpoint. consolidated to expected guidance was $X.XX, upside brings range increased confident onetime the account to to PNM's new to ability and on due in Corporate effective benefits in increased with anticipated expenses been at along our short-term for savings $X.XX. has lower higher corporate end

plan. capital our for XX Slide to Moving

opportunities the our PNM of Spirit of categories to transmission Western reflect acquisition First, an This I with of that point planned the out XXXX transmission line. the want realization $XXX XXXX. expansion represents that further incremental growth investment million in

of plan have rate XXXX earnings $X.X This and XXXX of period to million at to in to added of capital billion and $XX base brings system our replacement total We capital reliability investment also to of our same our $X.X infrastructure. continue level our the over this X%. XXXX in growth we growth and for review billion, from supports the target investment PNM X% to aging our as prioritizations T&D support

slide, portfolio, we Juan San will additions as made securitization will June, is power which proceeds. the plan the we on to for abandonment generation replacement Juan begin funded transform the on After for expect with power additions investment PNM's filing chart. noted we replacement this reflect investments San As be the to our in

capital filing earnings plans filing end on our our made, to of near We the and will is we expect website the related to June. power. the be post information made After potential

Now turning to XX. Slide

power to reflects PNM We PNM is line. to new increase the base the The have include Resources transmission the acquisition, earnings Spirit $X.XX. updated $X.XX in a potential which $X.XX FERC Western for

to equity to mandatory our of includes the in line. plans program. Juan model, XXXX equity million of million power. in track maximum through ATM Initially, plans financing of The No announced include we $XXX replacement is We appeal form are growth $XXX X%. earnings for a million assumes an project. meet the Western up from Furthermore, This to a Spirit mid-XXXX. power firm convertible million earnings We'd up into consolidated in prior the mandatory additional Supreme security of transmission of common funding our XXXX. the the XXXX our financing equity-issuance structures, The support to the to to ramps finalized either possibility, the issue timing the financings slide been in to of capture optimized XXXX $XXX $XX have San and X% previously the Court earnings convertible from on This or also be to the equity our the earnings target are clearly power. growth it's decisions on in versus will but other included objectives. financing security company's credit of plans to

through continue metrics and reflect and realize we maintaining XXXX plans utilities. credit plan, our as this our XXXX, Finally, to PNM structures the FFO-to-debt our debt. financing are debt growth a are commitment than cap forward our consolidated regulatory we move XX% that to Resources we holding meet to operating levels To opportunities our for ratio maintain our entities. investment-grade the XX% basis, of current targeting consolidated company and On less of

turn Pat. it to you. Thank over I'll back Now

Pat Vincent-Collawn

Texas, our We plans Transition an to accept renewables by generation infrastructure increase strengthening to established in Mexico, on needs remain to challenge. that directions we're reliable carbon-free committed Chuck. meets Thanks, resources executing growth transition clear policy PNM's that service In our We provide New with system hear direction the supporting to focused of energy by The to and and our Energy has future customers. investments. goals the Act the for and XXXX. portfolio

growth, programs, the the Year Partner fourth TNMP for meaning STAR selected energy was open also recognition that Excellence please right were has year on do, they path. the this the of efficiency but this and have that team second We And years. like they still also won achievements plenty that a award, ENERGY for let's Andrea, for meeting an consecutive our achievements Sustained of consecutive it surpass to the up While earned to show continue questions. we're in as the those EPA the award. work for prior year


begin [Operator ahead. question-and-answer from Greg Instructions] Gordon session. of ISI. Evercore our now will the And go We Please question comes first

Greg Gordon

Thank. Hey, you How doing? are guys.

Chuck Eldred


Pat Vincent-Collawn

are How you?

Greg Gordon

take Comic of guys Day weekend? advantage National you this Did Book

Pat Vincent-Collawn

saw Downtown, a I in was I bunch when running Actually, people of outfits. around book comic

that was extent celebration. of my So

Chuck Eldred

But today not so… costume in we're

Greg Gordon

have of thought… course of so – of some advantage over we special the take I year, days [Indiscernible] the the

Pat Vincent-Collawn

good couldn't boring. we're know, day I find for a today, we so

Greg Gordon

at question we terms – where Definitely is, My timing in to you or boring. terms to change just change commission? in to what in could of guess, executed review of not to regards forward an point the be regulatory have to look of with the the the get of commission, I pace milestones that structure would the the

Pat Vincent-Collawn

in Sure. and next needs pass. XXXX, a the goes in. And The to resolution the it will general the majority election phase then ballot on in just simple changes

that some appointed will commissioners, January XXXX, education from the the plans than So no set be pretty X, more and party, three experience requirements. by and two one extensive legislature to it

do is before current next put Now enabling year legislature thinking or XXXX put the place in that. ballot. is their the passed legislation the legislation XXXX that after in needs They together constitutional the to still is to into for it legislation could on either amendment

way a robust of, and but appointments. selection I won't there robust prove just the the say be it random, want that So what committee very education experience what that the be is won't sort that process because way, a they'll so will they see give process selection to and less voters is, to

and the we very are that community obviously, that's commission. So the are environmental now where supportive and both moving business to community of appointed looking forward

Greg Gordon

what in deck second been question. CapEx you've had, I XXXX. the $XXX to last in execute, Thanks. QX in look million disclosure million regard XXXX, potential to upside $XXX with able versus you And your at If

and resource lower should we out? Or think meet your retiring? with frame, contribution that $XXX the And this it securitization the that different being total as would $XXX that? a time just the as we to million, you've incremental to is from as that, that Or a otherwise a in regard should with because on planning of how economic as comes that needed transition mean proceeds, executed the about see might the accretive have earnings? or to should to replacement goals over the state's or see that on you're we depending environment plant sub-question a significantly be financed million. rate the be I higher – CapEx the For that from base then or come the ballpark for – being earnings could

Chuck Eldred

of that serving the values the and that Act. from Transition the for The in to feel To Greg. should then out some if point, then growth Yes, changes invested other strongly the we decisions can fill PNM load if driven the the see your between of capital. investment. process, through we And any the also will, Spirit gaps. the that ownership need there power. RFP for we'll will as million, around customer replacement Energy go be replacement our new additional be $XXX Western profile TNMP that prioritization power, to meet for we've that to the create aspects lacking transmission with capital we back of we've – our is in $XXX expectations additional and look opportunities will customers other Certainly, justified we by opportunities go maybe we the you at be feel million to pipeline, anything And capital

So then We're that. to through event capital we we And opportunity. we'll on power, there, have prioritization fall an that in XXXX. at feel to with look growth. we are to in the some additional clearly comfortable But focusing so X% on the add the we're track we growth slightly like will it bucket, short X% replacement provide do our that speak, that other to

Greg Gordon

a have Thanks, morning. right. All great

Chuck Eldred


Pat Vincent-Collawn

too. you Thanks,


America ahead. Merrill Please of next of Our Julien Lynch. comes from Dumoulin-Smith question Bank go

Julien Dumoulin-Smith

A Chuck good morning. Good morning. Eldred - Hey,

Julien Dumoulin-Smith

some the punchy the Excellent. you Curious can here generation. around though, of elaborate excitement Greg on little bit if line like here. no Got a

that's know know how fairly understand, wanted that many the here? So mean from fairly pretty nothing opportunity in I June there's that? away shift prescribed. preview I to about this How I expect replacement legislation to here, of otherwise just of the a I right? are for megawatts prescriptive, talking And necessarily there's in was type solution, would about what would that peaker's cost terms the think cost you do we

Chuck Eldred


Julien, have about additional then could we We renewable robust in or process. aspects capitals point either said then what support around up of in feel as details And very there other yet give June, be a but at megawatts don't want storage. the our both, San we're we peaking with this RFP discussions is generation, And going need have to XXX what justified then all the But our will units could abandonment we get to actual And be it's can not and the the want assets the make we a would and for to think accommodations, update in the that. reliability for think that replacement we will power of we So system. solar we're battery of will earnings certainly – we that to could power. a then replacement be some most filing lot through come that reflect allow wind. the And and that additional be slides of And sure built we out reliable area. in when that some Juan piece affordable to are be, power replacement resources. a

Pat Vincent-Collawn

San get lease at base, to of the up And putting we want that pull we'll more resources There's alternatives one Julian, the a way go. to Juan cost, to to for using there's out, reasons where is gas. right? instead batteries there's one that fulfill tax the than Because of

so we're where to to go. So have have scenarios dialogue that state they want the on that going multiple can collective

Julien Dumoulin-Smith

really dollars, That a kind it a hundred And Okay. – was reflects was – Fair couple of right? the... enough. that million placeholder, was the

Chuck Eldred

mean indicate that to a do be be that justified we ownership. replacement placeholder for I will like resources it's there'll feel some

when that the identified was replacement possibilities. power certainly the so And intent we

Julien Dumoulin-Smith

you terms about how both or this having RPS, me being just immediate let think and back terms higher of the meet given in challenges come broadly build able And here? to otherwise of and on of in rate transfer the also base RFP, but compete, to do to solar this, opportunities PPAs

Chuck Eldred

of of the will power – We very very be we the the competitive on to of some peaking competitive. really Imbalance Market the feel and provide can capacity replacement just that what's needed be support

stakeholders, we're So what also other serving what's as the best shareholders, PPA. et well procurement about open the the to to customer made and as decisions a as for around very is we ensure process possibility affordability of a and around make think to greatest that procurement necessary include and reliability needs cetera value to are the ownership decisions

So itself work additional we, comfortable Pat the process through. certainly, we're we there options, we're going create bring. to don't think be just PPAs several value that let But but as out, pointed will does that ownership some

Julien Dumoulin-Smith

be more about then transfer And mind? ownership route, to a on clear see build to opportunity in that? does your that if we Just there, PPA headline that necessarily preclude

Chuck Eldred


Julien Dumoulin-Smith

Okay. Excellent.

a rate base something and you from structuring do solar And could just perspective?

Chuck Eldred

it again, depends. Well,

the make the third-party on that solar have solar to has certainly JV it opportunities. competitive We of to bidding capability

we'll process the what replacement work let PRA just then we'd of So power. the we is think make and itself combination decisions around right through,

Julien Dumoulin-Smith

transmission the initial the beyond And incremental line, $XXX million, like it. route? no off that opportunity Got there's

Chuck Eldred

a the We meeting a that's BBX And the Not identified to to continue the effect the necessary cover what's for have of currently initially. certainly, line. stronger needs but think as we Pattern, of that own we for focus, continues strengthen reading value overall, infrastructure system what opportunities. will net and our with be

Julien Dumoulin-Smith

you Thank it congrats. very there. much, leave I’ll Excellent.

Chuck Eldred

you. Thank

Pat Vincent-Collawn

Thank you.


Ali come will our And question Agha ahead. go Please next Instructions] SunTrust. of [Operator from

Ali Agha

Good morning. you. Thank

Pat Vincent-Collawn

Good Ali. morning,

Chuck Eldred

Hey, Ali.

Ali Agha

what's into shared still you've this you So around that than looks just First significantly convert you to I the amount about the the had to what talked laid is financing now question, equity why I to equity, you you out what fourth the look more what similar Chuck, power earnings the be come versus in of driving growth total time the wanted there that as you with be us explain at plans? when talking amount Can about previously just guess us? on part equation. sense mandatory the I higher clear. plan When quarter, has of given were previously

Chuck Eldred

again, adding plan. that our into growth do we with, capital opportunities, Well, keep the you're familiar

as And we business, don't holding just of FFO focus XX% through at consolidated that we maintain the so the to debt debt. making we XX% and we're think sure go company, financing the of we over a maintain that target that strong ensuring a credit

financing frame. time to that the of plans XXXX meet reflective so requirements appropriate And in really those of we in think what are types is XXXX,

Ali Agha

earnings power some And the also, numbers that assumptions replacement had plan. – included the Okay. with I then on believe you year-end that the us given

when put whole real it much for higher you're line period you So today. earnings power us than the together, all bottom with sharing what was the

you do plan roughly ahead format transmission were level at same that do that with power slide, initiatives? when update we the at of and other end now your year-end? we growth the you up are Or the and So placement earnings that, filings, given

Chuck Eldred

on the power replacement Western We're potential bit with No. on you power. the slide were And for what pointed does original right as line. Spirit higher the any expectation little FERC growth think not a transmission include to out, side of we is we the We reflective track what was opportunities. earnings certainly,

reflect the we to in in in business So for there's certainly expectations the capital other aspects growth about And else everything when and upside the put Texas. additional think TNMP possibilities of begin the in there. the we've

added the track the capital types other have that pipeline. with the I growth or in the and we with to X% prioritization the meeting X% replacement additional think earnings we're So of capital power of our of clearly possibilities objective on

Ali Agha

the the Okay. you the but that that stand-alone question. the talked Last a increasing scale about in growing importance you that? in so scale, the have optimal your perhaps, PNM folks what's And Utility on interested as might this of still you're doesn't basis, have In fact And organic for plans business. and CapEx company? as still thinking on, we're the past, be about looking beyond growth scale at

Chuck Eldred

plan earnings business. set to the out that Well, power, on potential we we've continue laid in focus within the the expectations of our

metric meeting period we affordable Our increases file that capital for time. this rate plan, is credit think what will we of potential during objectives,

in of effective this December XXXX. one First being year, in

to that But continue set always we in supports take company full and to deliver the if to represents got parties consideration. said and Mexico. And we of expectations. third portfolio the right what we've us we different and So a to have now the got board as New there's organic we've execute And think interested certainly, for in results other a transition do. that M&A, in these and that hands before, to we then involving our would on to to do, that's if that plenty growth the focus continue we've different opportunities way in for that

Ali Agha

Thank Fair enough. you.

Pat Vincent-Collawn

Ali. Thanks,


Our Levi question from next Andrew ExodusPoint. of comes

Andrew Levi

guys. are How you? Hey,

Pat Vincent-Collawn

Fair. you, How are Andy?

Chuck Eldred

Fair Andy.

Andrew Levi

on clarification financing. the understand a I Just what's issued. being

Or the that on of financing capital Just incremental potential be include or upside, the does upsizing? kind capital would potential of CapEx not?

Chuck Eldred

it finance power No. and resources, plan mind, capital to keep expectations there's have we've in in currently securitization we'll The identified earnings plan. in replacement we meet financing will the out laid replacement be that our includes of power handled what through growth that mechanism. if And the through

really in not reflective that's the plan. So

what meet we have growth identified. So this capital the to the think earnings point, is have in at is that what the financing power we plan you

Andrew Levi

Okay. And financing. back then just on the

or So amounts? amounts is to up it these are these the

Chuck Eldred

are think amounts we around, credit know, operating want supporting up the the of the gives companies and They about. because we to metrics cap all we execute timing as it financings, to talked I that structures where No. of circumstances for us, these

But that can showing movement basic business. So for of what on, the based think some we is there some we just that timing flexibilities could benefit particular are size category the potential, made and think have you optimizing what's to appropriate plans business the about But Lisa of on we assumptions built a even some better get Jimmie we on into is within as understanding go there the certainly financing to numbers. how the work and for with forward.

Andrew Levi

Okay. Thank you much. very Great.


like This to question-and-answer for the session. back to closing over concludes our conference any turn Vincent-Collawn Pat I remarks. would

Pat Vincent-Collawn

to week. forward Thank call you joining We look of our on for all to this next and talking you, you Andrea. a And us wonderful rest have morning. your quarter earnings thank


conference presentation. you today's thank is attending for The concluded, now

You may now disconnect.