|
News Release
Feb. 3, 2005
Parties Agree To Lower Texas-New Mexico
Power Co. Delivery Rates
|
|
| |
| |
Steve
Porter
Telephone: (512) 322-5876 |
|
|
Austin, Texas: PNM Resources (NYSE: PNM) and Texas-New
Mexico Power Co. (TNMP) today filed an agreement with the
Texas Public Utility Commission (PUC) that would lower TNMP's
retail delivery rates by about $13 million, or 9.3 percent,
effective May 1.
The agreement was reached with the cities of Dickinson, Lewisville,
La Marque, Fort Stockton and Friendswood; PUC staff; the Office
of Public Utility Counsel; the Texas Industrial Energy Consumers;
and the Alliance for Retail Markets. The agreement is not
opposed.
If approved by the PUC, the parties have agreed the rate
reduction will remain in place for at least two years. In
addition, if PNM Resources completes its purchase of TNMP's
parent company, TNP Enterprises (TNP), TNMP would pass along
to retail electric providers (REPs) in its Texas service area
another $6 million in cost savings over two years. Those savings
result from combining certain operations of the two companies.
"This agreement delivers on our promise that combining
the two companies will be good for Texas customers,"
said Jeff Sterba, PNM Resources chairman, president and CEO.
"We believe these significant cost reductions can be
made while continuing TNMP's high quality of customer service
and reliability."
PNM Resources announced its intent to purchase TNP and its
subsidiaries, TNMP and First Choice Power, in July.
"The participating cities were instrumental in bringing
the rate reduction issue to the negotiating table, and we
are pleased PNM Resources and TNMP were receptive to the idea,"
said Steve Porter, attorney for the cities. "We look
forward to continuing to work cooperatively with PNM Resources
in the future to assure reasonably priced electricity and
high quality, reliable service in TNMP's service area."
As part of the agreement, First Choice Power will seek PUC
approval to pass on benefits of the rate reduction and cost
savings to its customers who are provided transmission and
distribution services by TNMP. First Choice Power is the REP
for about 80 percent of the 208,000 Texas customers served
by TNMP.
In addition to delivering rate reductions and cost savings,
the settlement also provides assurances that quality and reliability
of service for TNMP customers will be maintained into the
future.
PNM Resources is also seeking approval of the acquisition
from the New Mexico Public Regulation Commission and federal
officials, including the Securities and Exchange Commission
and the Federal Energy Regulatory Commission. The proposed
acquisition has received anti-trust clearance under the Hart-Scott-Rodino
Act from the Federal Trade Commission.
Download a copy
of the Texas agreement (pnmresources.com)
PNM Resources is an energy holding company
based in Albuquerque, N.M. PNM, the principal subsidiary of
PNM Resources, serves about 471,000 natural gas customers
and 413,000 electric customers in New Mexico. The company
also sells power on the wholesale market in the Western United
States. PNM Resources stock is traded primarily on the NYSE
under the symbol PNM.
| 
