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HomeMy WebLinkAbout251202 -- TNMP -- NOTICE OF RATE CHANGE REQUESTTMAMP November 14, 2025 Texas New -Mexico Power Company 744 N. Garden Ridge Blvd. Lewisville, Texas 75067 Tel: (214) 222-4142 Fax: (214) 222-4156 NOTICE OF RATE CHANGE REQUEST Notice to Customers of Wholesale Transmission: RECEIVED U C 0 2 2025 Texas -New Mexico Power Company ("TNMP") publishes this notice that on November 14, 2025, TNMP filed with the Public Utility Commission of Texas ("Commission") its Petition and Statement of Intent to Change Rates, a copy of which is kept at TNMP's office at 577 N. Garden Ridge Blvd, Lewisville, Texas 75067. TNMP's rate filing, based on the system -wide financial results for a 12-month test year ending on June 30, 2025, adjusted for known and measurable changes, supports a net increase in transmission and distribution rates of approximately $34 million over adjusted test -year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. Test -year revenues have been adjusted to normalize billing units, to remove the revenues associated with TNMP's Energy Efficiency Cost Recovery Factor, and to increase test -year revenues to reflect Transmission Cost of Service ("TCOS"), Distribution Cost Recovery Factor ("DCRF"), and Transmission Cost Recovery Factor ("TCRF") adjustments. TCOS revenue was adjusted to include the September 19, 2025 interim update rates at 2024 ERCOT 4CP. DCRF revenue was adjusted to include the June 29, 2025 interim update approved in Docket No. 57816. TCRF revenue was adjusted to equal the September 1, 2025 TCRF revenue requirement reflected on Line 2, Attachment A of TNMP's petition filed and approved in Docket No. 58161. In addition, TNMP is requesting recovery of $20.5 million for Hurricane Beryl restoration costs to be collected over 5 years with carrying charges. If approved, the increased rates will be charged to TNMP's direct customers, all retail electric providers ("REPs"), in those portions of TNMP's service area under the original jurisdiction of the Commission. Each such REP is potentially affected by the proposed change. Depending on the REPs' actions, the end -use customer classes of such REPs are potentially affected by the proposed change. In addition, the result could be a change in TNMP's transmission cost of service rates, which would impact all load serving entities in the Electric Reliability Council of Texas. TNMP has requested a December 23, 2025 effective date for its proposed rate change. Persons who wish to intervene in or comment upon these proceedings, in Docket No. 58964, Application of Texas -New Mexico Power Company for Authority to Change Rates, should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals may contact the Commission through Relay Texas at 1-800-735-2989. The deadline for intervention in this proceeding is 45 days after the date the application was filed with the Commission. Texas -New Mexico Power Company Docket No. 58964 APPLICATION OF TEXAS -NEW § BEFORE THE MEXICO POWER COMPANY FOR § PUBLIC UTILITY COMMISSION AUTHORITY TO CHANGE RATES § OF TEXAS PETITION AND STATEMENT OF INTENT OF TEXAS -NEW MEXICO POWER COMPANY FOR AUTHORITY TO CHANGE RATES TO THE HONORABLE PUBLIC UTILITY COMMISSION OF TEXAS: Texas -New Mexico Power Company ("TNMP" or "Company") files this Petition and Statement of Intent for Authority to Change Rates ("Petition") in accordance with Subchapter C of Chapter 36 of the Public Utility Regulatory Act ("PURA"),1 16 Tex. Admin Code ("TAC") § 22.243(b), and 16 TAC § 25.247. With this Petition, TNMP files a rate filing package ("RFP") that complies in all material respects with the Commission's Transmission & Distribution (TDU) Investor -Owned Utilities Rate Filing Package for Cost -of -Service Determination.2 I. INTRODUCTION More than seven years have passed since the close of the test year utilized in TNMP's most recent base rate proceeding.3 During this period, the Company has consistently fulfilled its public service obligations, delivering safe, reliable, and high -quality service, even as system load has significantly expanded, operational demands have intensified, and industry -wide costs have increased. Since its last rate case, TNMP has seen considerable expansion throughout its service territory, accompanied by substantial growth in both customer count and electricity demand. Presently, TNMP serves approximately 282,000 customers. It owns, operates, and maintains over 1,000 miles of transmission lines, almost 14,000 miles of distribution lines, 117 load serving stations, and 54 switching stations. For additional perspective, at the time TNMP's previous rate case was filed, it served 47 transmission service customers and 446 primary service customers. Today, those numbers have ballooned to 89 transmission service customers and 701 primary service customers, representing a growth of approximately 89 percent and 57 percent respectively. PURA is codified at Tex. Util. Code Ann. §§ 11.001-66.016. z Adopted July 20, 2020 in Project No. 49199. 3 Application of Texas -New Mexico Power Company for Authority to Change Rates, Docket No. 48401 (May 30, 2018). To accommodate its growth, TNMP has made substantial, prudently incurred investments in its transmission and distribution system. While Transmission Cost of Service ("TCOS") and Distribution Cost Recovery Factor ("DCRF") proceedings have recognized a portion of TNMP's substantial investments with interim rate adjustments, these mechanisms do not permit recovery of corresponding increases in other elements of the Company's cost of service. As a result, TNMP has continued to absorb higher costs to operate, maintain, and support an expanded and more complex system under base rates that have not been fully revisited since 2018. TNMP serves a geographically diverse and non-contiguous service area that encompasses a mix of urban and rural communities. Planning, operating, and maintaining the Company's services across a separated service territory presents unique operational investment challenges, including the need for varying infrastructure and flexible operations, to serve customers reliably under a wide range of local conditions. Despite these challenges, TNMP has continued to rise to the occasion and provide strong, consistent service in its territory. A central focus of TNMP's investment strategy has been to improve and preserve service reliability for customers. Over the last several years, the Company has maintained a consistent level of performance on key reliability metrics, including System Average Interruption Duration Index ("SAIDI") and System Average Interruption Frequency Index ("SAIFI"). In fact, TNMP's SAIDI and SAIFI performance is above the Texas utility average, reflecting a system that performs at or above the level of many of its peers, even as TNMP meets increasing service demands and withstands increasingly challenging operating conditions. Against this backdrop, TNMP seeks a measured adjustment to its base rates. In this Petition and RFP, the Company proposes changes that will align its revenues with its current cost of providing transmission and distribution services, while accounting for its investments and customer benefits described above. TNMP's total company cost of service is approximately $706.5 million, which is based on its reasonable and necessary expenses and a return of 7.88% on its rate base of $2.788 million. TNMP's cost of service results in a revenue deficiency of $29.3 million on a Texas retail basis and requires an increase of 6% over current annualized revenues at current base rates. The rate changes proposed in this Petition are designed to align TNMP's rates with the costs of the system that is in service today. Today's system is larger, stronger, and more capable than the system reflected in the rates established over seven years ago. Adjusting base rates now FA enables TNMP to recover the reasonable and necessary costs of its investments, continue to maintain and enhance its system, and attract the capital needed to support ongoing reliability and growth. TNMP's proposed rates are just and reasonable, in the public interest, and will help ensure that customers continue to receive the safe, reliable, and resilient services they need. II. BUSINESS ADDRESS & AUTHORIZED REPRESENTATIVES TNMP is an electric utility in Texas with its principal offices at 577 N. Garden Ridge Boulevard, Lewisville, Texas, 75067. TNMP's authorized business representative for this proceeding is: Stacy R. Whitehurst Vice President, Regulatory Affairs Texas -New Mexico Power Company 577 N. Garden Ridge Boulevard Lewisville, Texas 75067 Telephone: (214) 222-4142 Facsimile: (214) 222-4156 stacy.whitehurst@tmnp.com TNMP's legal representatives are: Scott Seamster Associate General Counsel Texas -New Mexico Power Company 577 N. Garden Ridge Boulevard Lewisville, Texas 75067 Telephone: (214) 222-4143 Facsimile: (214) 222-4156 scott.seamster@txnmenergy.com Stephanie C. Sparks Jonathon P. Reinisch Keeley A. Hanchon Natosha D. Greene Vedder Price P.C. 300 Crescent Court, Suite 400 Dallas, Texas 75201 Telephone: (469) 895-4830 Facsimile: (469) 895-4802 ssparks@vedderprice.com jreinisch@vedderprice.com khanchon@vedderprice.com ngreene@vedderprice.com TNMP requests that all pleadings, orders, discovery requests, and other information related to this Petition be served on TNMP by email at the email addresses listed above. III. APPLICANT AND JURISDICTION TNMP is a public utility as that term is defined in PURA § 11.004(1), an electric utility as that term is defined in PURA § 31.002(6), and a transmission and distribution utility as that term is defined in PURR § 31.002(19). TNMP is a subsidiary of TNP Enterprises, Inc., which is wholly owned by TXNM Energy, Inc. The Public Utility Commission of Texas ("Commission") has jurisdiction over this Petition pursuant to PURA § 32.001. The Commission has exclusive jurisdiction over TNMP's transmission rates pursuant to PURA § 35.004(d). The Commission has jurisdictional authority over TNMP's distribution rates in areas outside a municipality as well as in areas inside a municipality that has ceded jurisdiction to the Commission (the "Ceded Jurisdiction Municipalities"). In addition, the Commission has exclusive appellate jurisdictional authority to review actions taken by a municipality that maintains its original jurisdiction (the "Original Jurisdiction Municipalities"). A list of the Ceded Jurisdiction Municipalities and the Original Jurisdiction Municipalities is attached hereto as Attachment A. The Original Jurisdiction Municipalities have jurisdiction over rate changes for distribution services inside those areas pursuant to PURA § 33.001. TNMP is filing this case not only at the Commission, but with all of the Original Jurisdiction Municipalities. TNMP anticipates that it will appeal the actions, if any, of the Original Jurisdiction Municipalities to the Commission and that TNMP will seek consolidation of those appeals within this docket. It is TNMP's intention to seek one set of system -wide rates for each customer class served on the TNMP system, just as system- wide rates are in place today. IV. EFFECTIVE DATE The proposed effective date of the requested rate change is December 23, 2025, which is at least 35 days after the filing of this Petition as allowed under PURR § 36.102. V. TEST YEAR The test year in this proceeding is based on the 12-month period of July 1, 2024 through June 30, 2025. This is the most recent 12-month period for which operating data is available. VI. INCREASE IN REVENUE REOUIREMENT Based on its test year adjusted for known and measurable changes, TNMP seeks a net increase in transmission and distribution rates of approximately $34 million over adjusted test - year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. VII. CLASSES AND NUMBERS OF RATEPAYERS AFFECTED As a transmission and distribution utility, TNMP has approximately 126 retail electric provider ("REP") customers, all of which will be affected by this Petition. 11 There are approximately 282,000 end users of electricity in TNMP's service area, all of whom are REP customers. All of those end users may be affected by this Petition depending upon the actions taken by the REPs, which provide electricity to those end -use customers. VIII. IMPACT OF PROPOSED RATE CHANGE ON VARIOUS CLASSES TNMP's proposed rate change, including other revenue, would have the effect on billings to REPS for several end -user rate classes shown on Exhibit 1 to this Petition, and is expressly incorporated herein by reference. A Summary of Proposed Class Rates, included in the RFP as Schedule IV-J-7, is attached to this Petition as Exhibit 2, and is expressly incorporated herein by reference. IX. PROPOSED REVISIONS OF TARIFFS AND SCHEDULES TNMP is proposing various revisions to its tariffs and schedules. The proposed revised tariffs are included in TNMP's RFP as Exhibits SRW-10 and SRW-I I to the Direct Testimony of TNMP Witness Stacy R. Whitehurst, and are expressly incorporated herein by reference. X. FILING OVERVIEW This filing consists of a Table of Contents, this Petition, direct testimonies, proposed tariffs, schedules, and workpapers that satisfy the requirements of PURA § 36.102 and the Commission's Transmission & Distribution (TDU) Investor -Owned Utilities Rate Filing Package for Cost -of - Service Determination instructions adopted in Project No. 49199 (the "RFP Instructions"). TNMP's direct testimonies, along with supporting schedules and workpapers, are presented by the following witnesses: WITNESS OVERVIEW OF SUBJECTS COVERED James Neal Walker Mr. Walker discusses: (i) an overview of TNMP's rate request and principal factors driving increased cost of service; (ii) TNMP's service territory and business operations; (iii) TNMP's safe and reliable operations and provision of service; and (iv) support for the reasonableness and necessity of TNMP's investment in transmission and distribution ("T&D") facilities and operations and maintenance ("O&M") costs. Keith Nix Mr. Nix discusses: (i) TNMP's Operations organization and its O&M expenses; (ii) TNMP's vegetation management program 5 WITNESS OVERVIEW OF SUBJECTS COVERED costs and related adjustments; (iii) TNMP's response to Hurricane Beryl impacts and support for TNMP's request to recover Hurricane Beryl related costs via rate rider; (iv) storm charges to TNMP's self- insurance reserve; and (v) support for requests related to discretionary service rates. Christopher Gerety Mr. Gerety discusses: (i) TNMP's Technical Services & Reliability organization and its O&M costs; (ii) T&D projects included in TNMP's invested capital; and (iii) TNMP's primary service substation rate class and wholesale distribution line service rate class expansion to include Distributed Energy Storage Resources. Sabrina Greinel Ms. Greinel discusses: (i) TNMP's capital structure; (ii) TNMP's cost of capital and cost of debt; and (iii) affiliate costs from PNMR Services Company ("PNMR Services") to TNMP. Ellen Lapson Ms. Lapson discusses: (i) TNMP's request for an authorized capital structure comprised of equity and long-term debt; (ii) TNMP's financial condition; and (iii) TNMP's key metrics for overall regulatory support. Adrien McKenzie Mr. McKenzie discusses: (i) an assessment of TNMP's fair rate of return on equity; and (ii) support for the reasonableness of TNMP's capital structure and related risks and guidelines. Larry Morris Mr. Morris discusses tax schedules and tax amounts included in the cost of service and rate base. Earl Simpkins Mr. Simpkins discusses: (i) affiliate costs from PNMR Services to TNMP; (ii) the costs TNMP incurs from Public Service Company of New Mexico ("PNM") for customer support services; and (iii) the reasonableness of PNMR Services and PNM costs and their direct assignment or allocation to TNMP. Emmanuel J. Lopez Mr. Lopez discusses: (i) the affiliate cost allocation system and affiliate costs between C WITNESS OVERVIEW OF SUBJECTS COVERED PNMR and TNMP; and (ii) the methodology of how service bills are allocated. Dr. Tobe Phelps Dr. Phelps discusses: (i) the Business Technology Services affiliate class of services provided to TNMP; and (ii) the reasonableness and necessity of BTS's costs and services to TNMP. Rebecca Teague Ms. Teague discusses: (i) compensation and benefit plans as well as employee welfare programs offered to TNMP and PNMR Services employees; (ii) the reasonableness of compensation, benefit, and welfare programs; (iii) the Human Resources Department and Safety Department organization and the services they provide to TNMP; and (iv) the reasonableness of costs allocated to TNMP for Human Resources and Safety services. Claudette Horn Ms. Horn discusses: (i) the Environmental Services Department organization and the services it provides to TNMP; and (ii) the reasonableness of costs billed to TNMP for services. Carter Cherry Mr. Cherry discusses: (i) the Supply Chain Department and the types of services it provides to TNMP; (ii) the reasonableness of Supply Chain services costs; and (iii) the allocation of Supply Chain costs to TNMP. Leonard Sanchez Mr. Sanchez discusses: (i) the General Counsel Group and services; and (ii) the reasonableness of affiliate costs charged to TNMP by the General Counsel Group. Dane Watson Mr. Watson discusses: (i) the recent depreciation study completed for TNMP assets; and (ii) recommended depreciation rate changes for TNMP assets. Gregory Wilson Mr. Wilson discusses: (i) the reasonableness of TNMP's approach with respect to its self- insurance plan; (ii) an estimation of annual accruals needed to provide for the expected losses; (iii) estimations of target amounts to accumulate in self-insurance reserve; and (iv) a 7 WITNESS OVERVIEW OF SUBJECTS COVERED cost benefit analysis detailing self-insurance levels proposed by TNMP. Rebecca Tafoya Ms. Tafoya discusses: (i) TNMP's experience with increasing insurance premiums; (ii) an overview of recovery of TNMP's insurance premium expenses; and (iii) the expansion of the types of losses charged to TNMP's self- insurance reserve. Brian Arnell Mr. Amell discusses: (i) an overview of TNMP's cost of service ("COS") requests related to pension and retiree medical benefits; (ii) the costs associated with each plan; and (iii) the appropriate adjustments for preliminary costs. Jay Joyce Mr. Joyce discusses the lead -lag study conducted to measure the cash working capital allowance required for Company operations. Kyle Sanders Mr. Sanders discusses: (i) a verification of test year cost data from TNMP's books and records; (ii) the development of TNMP's overall revenue requirement; and (iii) the reasonableness of COS affiliate transactions. Dr. Stuart McMenamin Dr. McMenamin discusses: (i) the methods and data used to develop load estimates and weather adjustments for TNMP's filing; (ii) the organization and processing of AMS data; and (iii) necessary modeling and weather adjustment calculations. Stacy Whitehurst Mr. Whitehurst discusses: (i) the development of TNMP's fully allocated COS study; (ii) the adjustments made to test year energy sales, demands, customers, and revenues; (iii) the allocation of proposed revenue requirements to each class and proposed rate of return; (iv) the development of wholesale and retail T&D delivery charges to recover revenue; (v) adjustments to existing riders; (vi) the development of new riders to collect both hurricane restoration costs and rate case expenses associated with this proceeding; (vii) specific tariff adjustments; and (viii) information regarding certain TNMP expenses. E WITNESS OVERVIEW OF SUBJECTS COVERED Patrick Pearsall Mr. Pearsall discusses: (i) the reasonableness of rate case expenses that have been, and will be, incurred by TNMP in this proceeding; and (ii) the reasonableness of expenses incurred by TNMP in prior proceedings. Through this Petition and the RFP, TNMP requests that the Commission: • Approve TNMP's revenue requirement; • Approve the requested capital structure of 52.46% debt and 47.54% equity; • Approve the proposed return on equity of 10.4%; • Approve the proposed depreciation rates; • Approve TNMP's proposed changes to its self-insurance reserve; • Approve TNMP's proposed revisions to its Tariff for Retail Delivery Service ("Retail Tariff'); • Approve TNMP's proposed revisions to its Wholesale Tariff for Transmission Service ("Wholesale Tariff'); Approve TNMP's proposed changes to its discretionary service rates; • Approve the recovery of TNMP's Hurricane Beryl restoration costs via proposed rate rider; Approve the recovery of TNMP's requested rate -case expenses via proposed rate rider; and Approve all such other and further relief requested as set forth in the Petition and RFP or to which TNMP is otherwise justly entitled. XI. NOTICE Pursuant to 16 TAC § 22.51(a)(1), TNMP will publish notice of this Petition once per week for four consecutive weeks in the newspapers listed on Attachment B. Collectively, these newspapers have general circulation in each county in TNMP's service area which will be affected by the proposed rate change. A copy of the notice is attached as Attachment C. Pursuant to 16 TAC § 22.51(a)(2), TNMP also intends to mail the form of notice attached as Attachment D, along with a copy of this Petition, to each REP listed on the Commission's website as of the date on which this notice is sent. TNMP will also mail the form of notice attached E as Attachment E, along with a copy of this Petition, to each of the entities listed in the Commission's transmission matrix in Docket No. 57491, Commission Staffs Petition to Set 2025 Wholesale Transmission Service Charges for the Electric Reliability Council of Texas. Pursuant to 16 TAC § 22.51(a)(3), TNMP will provide a copy of notice in the form attached as Attachment F, as well as this Petition, to the appropriate officer of each municipality in its service area.' In addition, the Original Jurisdiction Municipalities will be provided with the Company's RFP in electronic format via flash drive and hard copy by mail.' Finally, pursuant to General Instruction No. 13 of the RFP Instructions, TNMP will provide notice of this filing in the form attached as Attachment G to each party in Docket No. 48401, Application of Texas -New Mexico Power Company for Authority to Change Rates, TNMP's most recent prior base rate case. TNMP is providing the RFP in electronic format to all parties in Docket No. 48401 coincident with this filing. Pursuant to General Instruction No. 15 of the RFP Instructions, the Office of Public Utility Counsel will be provided with a courtesy hard copy on the date this Petition is filed.6 XII. MOTION TO ENTER PROTECTIVE ORDER TNMP requests that the Presiding Officer assigned to this case issue a protective order in the form provided in Section VII of the RFP. TNMP anticipates that, in the course of this proceeding, it may be asked to furnish confidential information, the disclosure of which to third parties would place TNMP at a severe competitive advantage or cause it to violate contractual confidentiality obligations. TNMP requests that its proposed protective order govern review and use of confidential information and highly sensitive protected materials. TNMP's proposed protective order is consistent with the order adopted by the Commission in Docket No. 48401, which was TNMP's previous base rate proceeding, except to the extent the definition of "Highly Sensitive Protected Materials" has been modified to expressly include Critical Energy Infrastructure Information. TNMP requests that the Presiding Officer consider this request for issuance of a protective order on an expedited basis. Pending adoption of a protective order, TNMP will offer access to 4 With respect to the Ceded Jurisdiction Municipalities, consistent with 16 TAC § 22.51(a)(3), TNMP will provide this notice to municipalities, as that term is defined in Title 1 Chapter 1, Section 1.005 of the Texas Local Government Code. TNMP will not provide notice to unincorporated communities or census -designated places within its service territory which do not maintain a local government. 5 Voluminous files are being provided to the Original Jurisdiction Municipalities only by electronic means. 6 Pursuant to General Instruction No. 15 of the RFP Instructions, voluminous files are being provided to OPUC only by electronic means. 10 confidential and highly sensitive materials to intervening parties who execute the protective order certification, which is included as Attachment A to the proposed protective order. Section VII of the RFP contains a list of documents accompanying the RFP that TNMP considers confidential or highly sensitive information entitled to protection under the proposed protective order. XIII. REOUEST FOR REFERRAL TNMP requests that this docket be referred to the State Office of Administrative Hearings ("SOAH") and an administrative law judge be assigned for establishment of a procedural schedule, to conduct a hearing on the merits to the extent requested by a party to this docket, and issue a proposal for decision, if necessary, to resolve any issues that are contested by the parties. XIV. CONCLUSION WHEREFORE, TNMP respectfully prays that this Honorable Commission approves and authorizes the changes in the Company's rates proposed in this RFP and grant TNMP such other and further relief that to which it is justly entitled. Respectfully submitted, /s/ Stephanie C. Sparks Stephanie C. Sparks State Bar No. 24042900 ssparks@vedderprice.com Natosha Manning -Greene State Bar No. 24126137 ngreene@vedderprice.com VEDDER PRICE P.C. 300 Crescent Court, Suite 400 Dallas, Texas 75201 Telephone: (469) 895-4825 Facsimile: (469) 895-4802 Scott Seamster State Bar No. 00784939 Associate General Counsel Texas -New Mexico Power Company 577 N. Garden Ridge Boulevard Lewisville, Texas 75067 Telephone: (214) 222-4143 Facsimile: (214) 222-4156 scott.seamster@txnmenergy.com ATTORNEYS FOR TEXAS -NEW MEXICO POWER COMPANY 11 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Petition and Statement of Intent, together with the RFP, has been hand delivered to the Office of the Public Utility Counsel, on this 14th day of November, 2025, and that TNMP will otherwise comply with the notice and service requirements described in Section XI of this Petition and as otherwise may be required by law. /s/ Stephanie C. SDarks 12 Exhibit 1 Page 1 of 2 Line Rate Class Description 1 Residential 2 Secondary <= SkW 3 Secondary> 5 kW NIDR 4 Secondary > 5 kW IDR 5 Primary NIDR 6 Primary IDR 7 Primary Substation 8 Transmission 9 Lighting 10 WDLS 11 12 Retail Electric Delivery Revenues 13 14 Network Transmission Revenue 15 16 Total Revenues TEXAS -NEW MEXICO POWER COMPANY WPI SRW-2 SUMMARY OF ELECTRIC DELIVERY REVENUES BY RATE CLASS PAGE 1 OF 1 TEST YEAR ENDING JUNE 30, 2025 DOCKET NO. 58964 SPONSOR: STACY R. WHITEHURST Number of Present Proposed Customers Revenues' Change Revenues' Change Pct (a) (b) (c) (d) 237,040 $227,796,419 $14,491,608 $242,288,027 6.4% 15,997 $5,154,131 ($2,915,670) $2,238,461 -56.6% 23,396 $111,724,775 ($1,288,722) $110,436,053 -1.2% 156 $18,033,001 ($425,361) $17,607,640 -2.4% 498 $21,128,079 $4,985,987 $26,114,066 23.6% 194 $36,961,264 $11,660,072 $48,621,335 31.5% 9 $4,274,445 ($2,240,148) $2,034,297 -52.4% 89 $53,724,277 ($33,412) $53,690,865 -0.1% 4,450 $6,178,781 ($406,711) $5,772,071 -6.6% 27 $436,338 $5,439,299 $5,875,637 1246.6% 281,856 485,411,510 29,266,941 514,678,451 6.0% $187,335,996 $4,528,293 $191,864,288 2.4% $672,747,506 $33,795,234 $706,542,739 5.0% 'Test -Year revenues have been adjusted to normalize billing units, to remove the revenues associated with Energy Efficiency Cost Recovery Factor, Opt -out, and to increase test -year revenues to reflect DCRF, TCOS and TCRF adjustments. 'Proposed rates do not include proposed Rate Case Expense Amortization or Hurricane Beryl Amortization Rate Case Expense Amortization $ 5,413,336 Hurricane Beryl Amortization $ 1,413,504 Exhibit 1 Page 2 of 2 WP/ SRW-2.1 PAGE 1 OF 1 TOTAL HCRF RCE Residential 3,463,057 2,797,642 665,416 Secondary <= SkW 33,891 27,744 6,148 Secondary > 5 kW 1,921,431 1,569,774 351,657 Primary 1,177,695 972,443 205,252 Primary Substation 5,630 43 5,587 Transmission 147,941 485 147,456 Lighting 44,289 28,436 15,852 W D LS 32,906 16,769 16,137 Total 6,826,840 5,413,336 1,413,504 Exhibit 2 LINE NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Docket No. 58964 Schedule N-J-7 Rate Design Summary Page 1 of 1 PUBLIC UTILITY COMMISSION OF TEXAS SCHEDULE IVJ-7 TEXAS -NEW MEXICO POWER COMPANY RATE DESIGN SUMMARY DOCKET NO. 58964 TEST YEAR ENDING: JUNE 30, 2025 SPONSOR: STACY R. WHITEHURST SUMMARY OF CLASS PROPOSED RATES PROPOSED RATES UNIT CHARGE PRESENT % CLASS CHARGES UNIT $ UNITCHARGE RATES CHANGE (a) (b) (c) (d` (a) (f) (g) CUSTOMER CHARGE per ES11D d,323,610 $ 1.52 113 34.5% METERING CHARGE per ESI ID 16,497,984 $ 5.80 6.72 -13.7% TRANSMISSION COST RECOVERY FACTOR per kWh 65.653.329 $ 0.020229 00277030 -27.0% RESIDENTIAL DISTRIBUTION SERVICE CHARGE perkWh 155,817,600 $ 0.048010 0.0256700 87.0% DCRF per kWh - $ - 0.0174090 -100 0 % RCE per kWh 665,416 $ 0.000205 - 0.0% HCRF per kWh 2,797,346 $ 0.000862 - 0.0% CUSTOMER CHARGE per ESI ID 303,303 $ 1.58 0.74 113.5% METERING CHARGE per ESI ID 1.211.293 $ 631 762 -172% TRANSMISSION COST RECOVERY FACTOR per kWh 513,190 $ 0010692 0.0088220 21.2% SECONDARY kW DISTRIBUTION SERVICE CHARGE per kWh 211,198 $ 0004400 0.0425800 -89.7% DCRF per kWh - $ - 0.0206730 -100.0% RCE per kWh 6,148 $ 0.000128 - 0.0% HCRF per kWh 27,747 $ 0.000578 - 0.0% CUSTOMER CHARGE per ESI ID 624,599 $ 2.21 3.60 -38.61/6 METERING CHARGE per ESI ID 4,253,491 $ 16.05 20.96 -28.2% TRANSMISSION COST RECOVERY FACTOR perkW 00% NON-IDR CUSTOMERS perkW 31,452,939 $ 4400434 56003440 -21.4% SECONDARY >= 5 kW [DR CUSTOMERS perkW 4,801,480 $ 5.657347 71094690 -20 4% DISTRIBUTION SERVICE CHARGE perkW 86,920,841 $ 9.6632 5.7256000 68.8% DCRF perkW - - 3.5226580 -100.0% RCE perkW 351,657 $ 0042029 - 0.0% HCRF perkW 1,569,773 $ 0187613 - 0.0% CUSTOMER CHARGE per ESI ID 143,493 $ 17.28 26.89 -35.7% METERING CHARGE per ESI ID 184,681 $ 22.24 221.59 -90.0% TRANSMISSION COST RECOVERY FACTOR per kW 0.0% NON-IDR CUSTOMERS perkW 6,842.456 $ 3.124152 2.6579860 17.5% PRIMARY IDR CUSTOMERS perkW 13.599,270 $ 6.509085 3.6007490 53.0% DISTRIBUTION SERVICE CHARGE perkW 55,718,609 $ 7.8299 4.5340000 727% DCRF per kW - - 08396490 -100 0% RCE per kWh 205,252 $ 0031652 - 0.0% HCRF perkW 972,440 $ 0149962 - 0.0% CUSTOMER CHARGE per ESI ID 5,508 $ 51.00 $ 2689 89.7% METERING CHARGE per ESl ID 4,021 $ 3723 22159 -83.2% TRANSMISSION COST RECOVERY FACTOR per kW 0 $ 5509085 3.6007490 53 0% PRIMARY SUBSTATION DISTRIBUTION SERVICE CHARGE perkW 271,714 $ 0.9169 4.5340000 -79.8% DCRF perkW - - 0.8396490 -1000% RCE per kWh 5,587 $ 0-020689 - 0.0% HCRF perkW 43 $ 0.000160 - 00% CUSTOMER CHARGE per ES1 ID 87,256 $ 81.70 $ 31.96 155.6% METERING CHARGE per Meter 2,707,244 $ 2,233.70 1,158.21 929% TRANSMISSION COST RECOVERY FACTOR per 4CP kVa 50,768,118 $ 589 5.16 14.3 % TRANSMISSION DISTRIBUTION SERVICE CHARGE perkW 128,316 $ 0.01 - 0.0% DCRF per Meter&ESIIL 0 $ - 665.91 -100.0% RCE perkWh 147,456 $ 0.01 - 0.0% HCRF per 4CP kVa 493 $ 0000025 - 0.0% CUSTOMER CHARGE per customer 296,904 METERINGCHARGE per customer 45,924 TRANSMISSION COST RECOVERY FACTOR - LIGHTING DISTRIBUTION SERVICE CHARGE perkW 5,419,148 DCRF per kW 0 RCE per kWh 15,852 HCRF per kWh $28,424 CUSTOMER CHARGE per ESI ID 14,946 $ 4613 2689 71.6% METERING CHARGE per Meter 48,415 $ 79.11 221.59 -6431% TRANSMISSION COST RECOVERY FACTOR 0 $ - - 0.0% Wholesale DLS DISTRIBUTION SERVICE CHARGE perkW 5,812,271 $ 3.16632 $ 4.534DO -30.2% DCRF perkW - $ - - 00% RCE perkW 16,137 $ 0.00888 - 00% HCRF perkW 16,770 $ 0.009231 - 0.0% CUSTOMER CHARGE 6,799,619 METERING CHARGE 24.953,053 TRANSMISSION COST RECOVERY FACTOR 173,630,782 TOTAL DISTRIBUTION SERVICE CHARGE 310,299,697 DCRF - RCE 1,413,504 HCRF 5,413,036 TOTAL is 521,509,691 (BASE RATE TOTAL ) 514,683,151) 514,678,451) 4,700' Sponsored By Stacy R. Whitehurst Attachment A Page 1 of 1 MUNICIPALITIES THAT MAINTAIN ORIGINAL JURISDICTION: Alvin Angleton Bailey's Prairie Barstow Blum Brazoria Clifton Coppell Covington Dickinson Farmersville Fort Stockton Friendswood Gatesville Glen Rose Holiday Lakes Kermit La Marque League City Lewisville Pearland Pecos Rio Vista Sweeny Texas City Toyah Walnut Springs West Columbia Whitney MUNICIPALITIES THAT HAVE CEDED ORIGINAL JURISDICTION: Aubrey Bagwell Bailey Belcherville Bells Blossom Blue Ridge Bluffdale Bogota Bryson Byers Carlton Celeste Crawford Dean Deport Detroit Eliasville Emory Fullbright Gordon Gustine Hamilton Hico Hillcrest Village Iredell Jean Jermyn Kopperl Krugerville Lamkin Leonard Lone Oak Loving Lowry Crossing Megargel Meridian Mingus Montague Morgan Newcastle Nocona Old Ocean Olney Pattonville Petrolia Pilot Point Point Princeton Randolph Ringgold Saint Jo Sanderson Santo Strawn Sylvan Talco Thurber Tioga Tolar Tom Bean Trenton Valley Mills Westminster Whitewright Wickett Wink Attachment B Page 1 of 1 NEWSPAPERS THROUGH WHICH NOTICE WILL BE PUBLISHED PURSUANT TO 16 TAC $ 22.51(a)(11: Abilene Reporter -News The Dallas Morning News The Facts (Brazosport) Fort Worth Star -Telegram Galveston Daily News Sherman Herald Democrat Mount Pleasant Daily Tribune Odessa American Paris News Pecos Enterprise San Angelo Standard -Times Waco Tribune -Herald Wichita Falls Times Record News Attachment C NOTICE OF RATE CHANGE REQUEST Texas -New Mexico Power Company ("TNMP") publishes this notice that on November 14, 2025, TNMP filed with the Public Utility Commission of Texas ("Commission") its Petition and Statement of Intent to Change Rates, a copy of which is kept at TNMP's office at 577 N. Garden Ridge Blvd, Lewisville, Texas 75067. This notice is being published pursuant to 16 Tex. Admin. Code § 22.51(a)(1). TNMP's rate filing, based on the system -wide financial results for a 12-month test year ending on June 30, 2025, adjusted for known and measurable changes, supports a net increase in transmission and distribution rates of approximately $34 million over adjusted test -year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. Test -year revenues have been adjusted to normalize billing units, to remove the revenues associated with TNMP's Energy Efficiency Cost Recovery Factor, and to increase test -year revenues to reflect Transmission Cost of Service ("TCOS"), Distribution Cost Recovery Factor ("DCRF"), and Transmission Cost Recovery Factor ("TCRF") adjustments. TCOS revenue was adjusted to include the September 19, 2025 interim update rates at 2024 ERCOT 4CP. DCRF revenue was adjusted to include the June 29, 2025 interim update approved in Docket No. 57816. TCRF revenue was adjusted to equal the September 1, 2025 TCRF revenue requirement reflected on Line 2, Attachment A of TNMP's petition filed and approved in Docket No. 58161. In addition, TNMP is requesting recovery of $20.5 million for Hurricane Beryl restoration costs to be collected over 5 years with carrying charges. If approved, the increased rates will be charged to TNMP's direct customers, all retail electric providers ("REPs"), in those portions of TNMP's service area under the original jurisdiction of the Commission. Each such REP is potentially affected by the proposed change. Depending on the REPs' actions, the end -use customer classes of such REPs are potentially affected by the proposed change. In addition, the result could be a change in TNMP's transmission cost of service rates, which would impact all load serving entities in the Electric Reliability Council of Texas. TNMP has requested a December 23, 2025 effective date for its proposed rate change. Persons who wish to intervene in or comment upon these proceedings, in Docket No. 58964, Application of Texas -New Mexico Power Company forAuthority to Change Rates, should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals may contact the Commission through Relay Texas at 1-800-735-2989. The deadline for intervention in this proceeding is 45 days after the date the application was filed with the Commission. Texas -New Mexico Power Company Attachment D Texas New -Mexico Power Company TNMP 744 N. Garden Ridge Blvd. Lewisville, Texas 75067 Tel: (214) 222-4142 Fax: (214) 222-4156 NOTICE OF RATE CHANGE REQUEST November 14, 2025 Notice to all REPs Certified with the Commission Texas -New Mexico Power Company ("TNMP") publishes this notice that on November 14, 2025, TNMP filed with the Public Utility Commission of Texas ("Commission") its Petition and Statement of Intent to Change Rates, a copy of which is kept at TNMP's office at 577 N. Garden Ridge Blvd, Lewisville, Texas 75067. TNMP's rate filing, based on the system -wide financial results for a 12-month test year ending on June 30, 2025, adjusted for known and measurable changes, supports a net increase in transmission and distribution rates of approximately $34 million over adjusted test -year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. Test -year revenues have been adjusted to normalize billing units, to remove the revenues associated with TNMP's Energy Efficiency Cost Recovery Factor, and to increase test -year revenues to reflect Transmission Cost of Service ("TCOS"), Distribution Cost Recovery Factor ("DCRF"), and Transmission Cost Recovery Factor ("TCRF") adjustments. TCOS revenue was adjusted to include the September 19, 2025 interim update rates at 2024 ERCOT 4CP. DCRF revenue was adjusted to include the June 29, 2025 interim update approved in Docket No. 57816. TCRF revenue was adjusted to equal the September 1, 2025 TCRF revenue requirement reflected on Line 2, Attachment A of TNMP's petition filed and approved in Docket No. 58161. In addition, TNMP is requesting recovery of $20.5 million for Hurricane Beryl restoration costs to be collected over 5 years with carrying charges. If approved, the increased rates will be charged to TNMP's direct customers, all retail electric providers ("REPs"), in those portions of TNMP's service area under the original jurisdiction of the Commission. Each such REP is potentially affected by the proposed change. Depending on the REPs' actions, the end -use customer classes of such REPs are potentially affected by the proposed change. In addition, the result could be a change in TNMP's transmission cost of service rates, which would impact all load serving entities in the Electric Reliability Council of Texas. TNMP has requested a December 23, 2025 effective date for its proposed rate change. Persons who wish to intervene in or comment upon these proceedings, in Docket No. 58964, Application of Texas -New Mexico Power Company for Authority to Change Rates, should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals may contact the Commission through Relay Texas at 1-800-735-2989. The deadline for intervention in this proceeding is 45 days after the date the application was filed with the Commission. Texas -New Mexico Power Company Attachment E Texas New -Mexico Power Company TMMP 744 N. Garden Ridge Blvd. Lewisville, Texas 75067 Tel: (214) 222-4142 Fax: (214) 222-4156 NOTICE OF RATE CHANGE REQUEST November 14, 2025 Notice to Customers of Wholesale Transmission Texas -New Mexico Power Company ("TNMP") publishes this notice that on November 14, 2025, TNMP filed with the Public Utility Commission of Texas ("Commission") its Petition and Statement of Intent to Change Rates, a copy of which is kept at TNMP's office at 577 N. Garden Ridge Blvd, Lewisville, Texas 75067. TNMP's rate filing, based on the system -wide financial results for a 12-month test year ending on June 30, 2025, adjusted for known and measurable changes, supports a net increase in transmission and distribution rates of approximately $34 million over adjusted test -year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. Test -year revenues have been adjusted to normalize billing units, to remove the revenues associated with TNMP's Energy Efficiency Cost Recovery Factor, and to increase test -year revenues to reflect Transmission Cost of Service ("TCOS"), Distribution Cost Recovery Factor ("DCRF"), and Transmission Cost Recovery Factor ("TCRF") adjustments. TCOS revenue was adjusted to include the September 19, 2025 interim update rates at 2024 ERCOT 4CP. DCRF revenue was adjusted to include the June 29, 2025 interim update approved in Docket No. 57816. TCRF revenue was adjusted to equal the September 1, 2025 TCRF revenue requirement reflected on Line 2, Attachment A of TNMP's petition filed and approved in Docket No. 58161. In addition, TNMP is requesting recovery of $20.5 million for Hurricane Beryl restoration costs to be collected over 5 years with carrying charges. If approved, the increased rates will be charged to TNMP's direct customers, all retail electric providers ("REPs"), in those portions of TNMP's service area under the original jurisdiction of the Commission. Each such REP is potentially affected by the proposed change. Depending on the REPs' actions, the end -use customer classes of such REPs are potentially affected by the proposed change. In addition, the result could be a change in TNMP's transmission cost of service rates, which would impact all load serving entities in the Electric Reliability Council of Texas. TNMP has requested a December 23, 2025 effective date for its proposed rate change. Persons who wish to intervene in or comment upon these proceedings, in Docket No. 58964, Application of Texas -New Mexico Power Company for Authority to Change Rates, should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals may contact the Commission through Relay Texas at 1-800-735-2989. The deadline for intervention in this proceeding is 45 days after the date the application was filed with the Commission. Texas -New Mexico Power Company Attachment F Texas New -Mexico Power Company TNMP 744 N. Garden Ridge Blvd. Lewisville, Texas 75067 Tel: (214) 222-4142 Fax: (214) 222-4156 NOTICE OF RATE CHANGE REQUEST November 14, 2025 Notice to All Municipalities in the TNMP Service Area: Texas -New Mexico Power Company ("TNMP") publishes this notice that on November 14, 2025, TNMP filed with the Public Utility Commission of Texas ("Commission") its Petition and Statement of Intent to Change Rates, a copy of which is kept at TNMP's office at 577 N. Garden Ridge Blvd, Lewisville, Texas 75067. TNMP's rate filing, based on the system -wide financial results for a 12-month test year ending on June 30, 2025, adjusted for known and measurable changes, supports a net increase in transmission and distribution rates of approximately $34 million over adjusted test -year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. Test -year revenues have been adjusted to normalize billing units, to remove the revenues associated with TNMP's Energy Efficiency Cost Recovery Factor, and to increase test -year revenues to reflect Transmission Cost of Service ("TCOS"), Distribution Cost Recovery Factor ("DCRF"), and Transmission Cost Recovery Factor ("TCRF") adjustments. TCOS revenue was adjusted to include the September 19, 2025 interim update rates at 2024 ERCOT 4CP. DCRF revenue was adjusted to include the June 29, 2025 interim update approved in Docket No. 57816. TCRF revenue was adjusted to equal the September 1, 2025 TCRF revenue requirement reflected on Line 2, Attachment A of TNMP's petition filed and approved in Docket No. 58161. In addition, TNMP is requesting recovery of $20.5 million for Hurricane Beryl restoration costs to be collected over 5 years with carrying charges. If approved, the increased rates will be charged to TNMP's direct customers, all retail electric providers ("REPs"), in those portions of TNMP's service area under the original jurisdiction of the Commission. Each such REP is potentially affected by the proposed change. Depending on the REPs' actions, the end -use customer classes of such REPs are potentially affected by the proposed change. In addition, the result could be a change in TNMP's transmission cost of service rates, which would impact all load serving entities in the Electric Reliability Council of Texas. TNMP has requested a December 23, 2025 effective date for its proposed rate change. Persons who wish to intervene in or comment upon these proceedings, in Docket No. 58964, Application of Texas -New Mexico Power Company for Authority to Change Rates, should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals may contact the Commission through Relay Texas at 1-800-735-2989. The deadline for intervention in this proceeding is 45 days after the date the application was filed with the Commission. Texas -New Mexico Power Company Attachment G Texas New -Mexico Power Company TNMP 744 N. Garden Ridge Blvd. Lewisville, Texas 75067 Tel: (214) 222-4142 Fax: (214) 222-4156 NOTICE OF RATE CHANGE REQUEST November 14, 2025 Notice to all Parties in PUC Docket No. 48401: Texas -New Mexico Power Company ("TNMP") publishes this notice that on November 14, 2025, TNMP filed with the Public Utility Commission of Texas ("Commission") its Petition and Statement of Intent to Change Rates, a copy of which is kept at TNMP's office at 577 N. Garden Ridge Blvd, Lewisville, Texas 75067. TNMP's rate filing, based on the system -wide financial results for a 12-month test year ending on June 30, 2025, adjusted for known and measurable changes, supports a net increase in transmission and distribution rates of approximately $34 million over adjusted test -year revenues, or approximately a 5% increase over adjusted test -year revenues of $673 million. Test -year revenues have been adjusted to normalize billing units, to remove the revenues associated with TNMP's Energy Efficiency Cost Recovery Factor, and to increase test -year revenues to reflect Transmission Cost of Service ("TCOS"), Distribution Cost Recovery Factor ("DCRF"), and Transmission Cost Recovery Factor ("TCRF") adjustments. TCOS revenue was adjusted to include the September 19, 2025 interim update rates at 2024 ERCOT 4CP. DCRF revenue was adjusted to include the June 29, 2025 interim update approved in Docket No. 57816. TCRF revenue was adjusted to equal the September 1, 2025 TCRF revenue requirement reflected on Line 2, Attachment A of TNMP's petition filed and approved in Docket No. 58161. In addition, TNMP is requesting recovery of $20.5 million for Hurricane Beryl restoration costs to be collected over 5 years with carrying charges. If approved, the increased rates will be charged to TNMP's direct customers, all retail electric providers ("REPs"), in those portions of TNMP's service area under the original jurisdiction of the Commission. Each such REP is potentially affected by the proposed change. Depending on the REPs' actions, the end -use customer classes of such REPs are potentially affected by the proposed change. In addition, the result could be a change in TNMP's transmission cost of service rates, which would impact all load serving entities in the Electric Reliability Council of Texas. TNMP has requested a December 23, 2025 effective date for its proposed rate change. Persons who wish to intervene in or comment upon these proceedings, in Docket No. 58964, Application of Texas -New Mexico Power Company for Authority to Change Rates, should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals may contact the Commission through Relay Texas at 1-800-735-2989. The deadline for intervention in this proceeding is 45 days after the date the application was filed with the Commission. Texas -New Mexico Power Company