TXNM Energy's 2025 Q1 Earnings Call: Unpacking Contradictions in CapEx, Capital Structure, and Regulatory Challenges

Permian Basin CapEx and potential upside, capital structure and funding, Permian Basin CapEx and regulatory approval, ERCOT's transmission efforts and upside potential, RFP process and timing are the key contradictions discussed in TXNM Energy's latest 2025Q1 earnings call.



Regulatory and Legislative Success:
- TNMP's system Resiliency Plan was approved, allowing investment in capital improvements totaling $546 million.
- The plan enhances system resiliency and response to extreme weather events, supported by legislations like HB 5247.

Capital Expenditure and Investment:
- TNMP's capital plan includes $750 million for Permian Basin Reliability Study projects by 2030.
- Investments are focused on supporting high levels of growth in Texas, improving grid reliability and resiliency.

Rate Base and Demand Growth:
- TNMP set a new system peak in Q1 2025, 22% higher than the previous year's first quarter.
- Growth driven by increased demand from data centers and commercial businesses, particularly in north and west Texas regions.

PNM's Rate Review and Expansion:
- PNM's unopposed stipulation in the rate review was recommended for approval, reflecting a collaborative process.
- The approval allows for the integration of 450 megawatts of resources, including a 150-megawatt solar and storage facility, supporting the state's economic development.