TXNM Energy Inc (TXNM) 2023 Q3 法說會逐字稿

Good day, and welcome to the PNM Resources Third Quarter 2023 Conference Call.

美好的一天，歡迎參加 PNM Resources 2023 年第三季電話會議。

(Operator Instructions)

（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Lisa Goodman, Investor Relations. Please go ahead.

請注意此事件正在被記錄。我現在想將會議交給投資者關係部門的麗莎古德曼 (Lisa Goodman)。請繼續。

Thank you, Dave, and thank you, everyone, for joining us this morning for the PNM Resources Third Quarter 2023 Earnings Call. Please note that the presentation for this conference call and other supporting documents are available on our website at pnmresources.com. Joining me today are PNM Resources' Chairman and CEO, Pat Vincent-Collawn, President and Chief Operating Officer, Don Tarry and Senior Vice President, Chief Financial Officer and Treasurer, Lisa Eden. Before I turn the call over to Pat, I need to remind you that some of the information provided this morning should be considered forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995. We caution you that all of the forward-looking statements are based upon current expectations and estimates and that PNM Resources assumes no obligation to update this information.

謝謝戴夫，也謝謝大家今天早上參加我們的 PNM Resources 第三季 2023 年財報電話會議。請注意，本次電話會議的簡報和其他支援文件可在我們的網站 pnmresources.com 上取得。今天與我一起出席的有 PNM Resources 董事長兼執行長 Pat Vincent-Collawn、總裁兼營運長 Don Tarry 以及資深副總裁、財務長兼財務主管 Lisa Eden。在我將電話轉給帕特之前，我需要提醒您，根據1995 年《私人證券訴訟改革法案》，今天上午提供的一些資訊應被視為前瞻性陳述。我們提醒您，所有前瞻性陳述均應視為前瞻性陳述。聲明基於當前的預期和估計，PNM Resources 不承擔更新此資訊的義務。

For a detailed discussion of factors affecting PNM Resources' results, please refer to our current and future annual reports on Form 10-K, quarterly reports on Form 10-Q as well as reports on Form 8-K filed with the SEC.

有關影響 PNM Resources 業績的因素的詳細討論，請參閱我們向 SEC 提交的當前和未來的 10-K 表年度報告、10-Q 表季度報告以及 8-K 表報告。

With that, I will turn the call over to Pat.

這樣，我就把電話轉給帕特。

Thank you, Lisa. Good morning, everyone, and thank you for joining us today on Cranky Coworkers Day. And yes, you can Google it, it is a real day. Now we are sure none of you have any cranky coworkers or that none of you are 1 of those cranky coworkers and none of us surely are, but we're going to celebrate the day just in case.

謝謝你，麗莎。大家早安，感謝您今天在脾氣暴躁的同事日加入我們。是的，你可以穀歌一下，這是真實的一天。現在我們確信你們都沒有脾氣暴躁的同事，或者你們都不是那些脾氣暴躁的同事之一，我們肯定也不是，但為了以防萬一，我們要慶祝這一天。

I'm going to start on Slide 4 with our financial results and strategic updates. Ongoing earnings were $1.54 for the third quarter compared to $1.46 last year. Summer temperatures were hotter across New Mexico and Texas and had a significant impact on earnings. We are adjusting our guidance for the year to a range of $2.75 to $2.80 per share. Lisa will walk through the details.

我將從第四張投影片開始介紹我們的財務表現和策略更新。第三季持續獲利為 1.54 美元，去年同期為 1.46 美元。新墨西哥州和德克薩斯州的夏季氣溫更高，對收入產生了重大影響。我們將今年的指導調整至每股 2.75 美元至 2.80 美元的範圍。麗莎將詳細介紹細節。

The New Mexico Supreme Court held oral arguments on our merger with AVANGRID on September 15, this was the final step in the appeal process, and there is no time line for when the court will issue its decision. And yes, we were priced [compete] because we agree that the waiting is the hardest part.

新墨西哥州最高法院於 9 月 15 日就我們與 AVANGRID 的合併進行了口頭辯論，這是上訴程序的最後一步，目前還沒有法院何時發布裁決的時間表。是的，我們被定價[競爭]，因為我們同意等待是最困難的部分。

As a reminder, the court has 2 options: to uphold the commission's decision or to vacate the order and remand the case back to the commission. If there is a remand, the commission will determine the next steps on how to respond to the court's order. The merger agreement was previously extended through December with the option for a further 3-month extension through March.

提醒一下，法院有兩種選擇：維持委員會的決定或撤銷命令並將案件發回委員會重審。如果有發回重審，委員會將決定如何回應法院命令的後續步驟。合併協議先前已延長至 12 月，並可選擇再延長 3 個月至 3 月。

Separately, the sale of our joint venture, NMRD remains on track. The renewable projects in this portfolio are attractive assets even in the current challenging market, and we are working to evaluate the bids. We expect to close the sale in the late fourth quarter or early first quarter.

另外，我們的合資企業 NMRD 的出售仍在進行中。即使在當前充滿挑戰的市場中，該投資組合中的再生能源項目也是有吸引力的資產，我們正在努力評估投標。我們預計將在第四季末或第一季初完成銷售。

With that, I'll turn it over to Don.

有了這個，我會把它交給唐。

Thank you, Pat, and good morning, everyone. I'll start on Slide 6 with operational highlights at PNM. New Mexico continues to announce new economic development wins. Two of those announcements wanted national attention during the third quarter.

謝謝你，帕特，大家早安。我將從幻燈片 6 開始介紹 PNM 的營運亮點。新墨西哥州繼續宣布新的經濟發展勝利。其中兩項公告在第三季引起了全國的關注。

In August, President Biden visited the site of a new facility that will manufacture wind towers in PNM service territory, soon after Maxeon Solar announced its plans for its first U.S.-based manufacturing facility, a 3 gigawatt plant in Albuquerque, the $1 billion investment is also expected to bring 1,800 new jobs to the area. We are also seeing continued announcements and inquiries for new businesses and expansions further increasing our system demand outlook.

8 月，拜登總統參觀了PNM 服務區域內的一座新工廠，該工廠將製造風塔，不久之後Maxeon Solar 宣布了其在美國的第一座製造工廠的計劃，即位於阿爾伯克基的一座3吉瓦工廠，投資10 億美元預計也將為該地區帶來1,800個新就業機會。我們也看到不斷有新業務和擴張的公告和詢問，進一步提高了我們的系統需求前景。

In July, PNM had 2 consecutive days at a new all-time system peak when cooling degree days for the month were almost 50% higher than the 20-year normal. Last year's new peak was the first for PNM in nearly a decade. We maintained reliability through the peak season in both years, thanks to careful monitoring, planning and system maintenance from our teams. On the other side of the equation, we have also started the approval process to add new resources to our system. After an RFP process began last year, we filed an application at the commission this week for resources needed in 2026. These additions will align our planning reserves with industry standards, and it will better position us as the state for additional economic development inquiries.

7 月份，PNM 連續 2 天達到新的歷史系統峰值，該月的冷度日數比 20 年來的正常水平高出近 50%。去年的新高峰是 PNM 近十年來的首次。由於我們團隊的精心監控、規劃和系統維護，我們在這兩年的旺季都保持了可靠性。另一方面，我們也開始了在我們的系統中新增資源的審批流程。去年啟動 RFP 流程後，我們本周向委員會提交了 2026 年所需資源的申請。這些補充將使我們的規劃儲備與行業標準保持一致，並將更好地定位我們作為額外經濟發展調查的國家。

The filing proposes a 100-megawatt of solar through PPAs and 250 megawatts of battery storage capacity through energy storage agreements along with 60 megawatts of utility-owned battery. This is our first proposal for utility-owned generation resources in some time, and it carries several benefits for customers in addition to being part of the lease cost portfolio. Ownership of battery allows us to charge and discharge the battery in our customers' best interest, while maximizing our entire system. It also allows us to retain the battery, upgrade components and extend the life of the battery, versus pain to replace the battery at the end of the contract term.

該文件提議透過購電協議提供 100 兆瓦的太陽能，透過能源儲存協議提供 250 兆瓦的電池儲存容量以及 60 兆瓦的公用事業電池。這是我們一段時間以來對公用事業自有發電資源的第一個提議，除了成為租賃成本組合的一部分之外，它還為客戶帶來了多種好處。電池的所有權使我們能夠根據客戶的最佳利益對電池進行充電和放電，同時最大化我們的整個系統。它還允許我們保留電池、升級組件並延長電池的使用壽命，而無需在合約結束時更換電池。

Balancing this with energy storage agreements allows the utility to avoid the risk of operations and maintenance costs increased during the contract period. We see the mix of ownership and contract resources providing the best operational and customer value. Each of the proposed solar and battery projects leverage existing grid interconnection in order to be online in 2026, we've asked the commission for approval of these resources by May and we'll provide you with updates as the filing proceeds.

與儲能協議相平衡可以使公用事業公司避免合約期間內營運和維護成本增加的風險。我們看到所有權和合約資源的組合提供了最佳的營運和客戶價值。每個擬議的太陽能和電池項目都利用現有的電網互連，以便在 2026 年上線，我們已要求委員會在 5 月之前批准這些資源，我們將在提交文件時向您提供最新資訊。

One year ago, our generation capacity hedges reached 50% carbon-free resources. Adding these 2026 resources to our plans will move us to 75% carbon free and this doesn't include community solar resources, which are also expected in the coming years. Our clean energy transition in New Mexico is moving rapidly.

一年前，我們的發電容量對沖達到了 50% 的無碳資源。將這些 2026 年資源添加到我們的計劃中將使我們實現 75% 的無碳排放，這不包括預計在未來幾年內實現的社區太陽能資源。新墨西哥州的清潔能源轉型正在迅速推進。

Turning to Slide 7, I'll cover our key regulatory proceedings, with the New Mexico Commission. In our PNM rate change filing, hearings have been completed, and we continue to expect a commission decision by the end of the year. The unanimous settlement of the San Juan rate credit removes this item from the rate case as we continue to transition our generation portfolio, the 2 remaining transitional issues in the case primarily relate to past decisions on Four Corners and Palo Verde resources and the recovery of amounts associated with those plants.

轉向投影片 7，我將介紹我們與新墨西哥州委員會的關鍵監管程序。在我們的 PNM 費率變更備案中，聽證會已經完成，我們仍然預計委員會將在年底做出決定。隨著我們繼續過渡我們的發電組合，聖胡安利率信貸的一致解決將這一項目從利率案例中刪除，該案例中剩下的2 個過渡問題主要與過去關於四角和帕洛維德資源的決定以及金額的回收有關與那些植物有關。

We are looking forward to resolving these issues as we move forward on our path to carbon-free. Our proposal for a 12 megawatts of battery storage as a distribution solution is also under review at the commission. We received full support of our request from the intervening parties in this case, if these batteries are approved, we will look to take the same approach at our other distribution sites to relieve overloaded feeders and accommodate more renewable energy. The hearing examiner held hearings on October 12, and we expect a commission decision before the end of the year.

我們期待在邁向無碳之路的過程中解決這些問題。我們關於 12 兆瓦電池儲存作為配電解決方案的提案也在委員會的審查中。在這種情況下，我們的請求得到了乾預方的全力支持，如果這些電池獲得批准，我們將尋求在其他配送站點採取相同的方法，以緩解超載的饋線並容納更多的可再生能源。聽證會審查員於 10 月 12 日舉行聽證會，我們預計委員會將在年底前做出決定。

In our grid modernization filing, we expect to file the requested cost benefit analysis to support the proposed investments in November. Many of the future rate design possibilities discussed by stakeholders and our current rate review require these advanced metering technologies that are proposed in our grid modernization filing. We expect the decision in the first half of 2024. We have also been working with stakeholders and getting their input into our integrated resource plan that will be filed before the end of the year. While the IRP is not formally approved by the commission, it provides modeling results showing the most cost-effective path forward for meeting system demand over the next 20 years.

在我們的電網現代化備案中，我們預計將提交所要求的成本效益分析，以支持 11 月的擬議投資。利害關係人討論的許多未來費率設計可能性以及我們目前的費率審查都需要我們在電網現代化文件中提出的先進計量技術。我們預計將在 2024 年上半年做出決定。我們也一直在與利害關係人合作，並將他們的意見納入我們將於年底前提交的綜合資源計畫。雖然 IRP 尚未得到委員會的正式批准，但它提供的建模結果顯示了滿足未來 20 年系統需求的最具成本效益的路徑。

The filing and subsequent commission discussion will provide some direction for the path ahead towards our carbon-free goals. Before I turn to TNMP, I quickly note that we have not made any new determinations on the future of our ownership in the Four Corners Power Plant. We continue to evaluate options for a potential exit and replacement before our ownership contract expires in 2031.

備案和隨後的委員會討論將為我們實現無碳目標的道路提供一些方向。在我轉向 TNMP 之前，我很快指出，我們尚未對四角發電廠所有權的未來做出任何新的決定。在我們的所有權合約於 2031 年到期之前，我們將繼續評估潛在的退出和替換選項。

Now turning to Texas on Slide 8. I'll cover TNMP's recent operating highlights and key regulatory updates. After setting a new system record in June, TNMP exceeded this level twice at the end of July and then again in August. The consistent growth in system demand at TNMP and legislative support for infrastructure investments prompted us to bring more projects to the forefront of our plan.

現在轉向幻燈片 8 中的德克薩斯州。我將介紹 TNMP 最近的營運亮點和主要監管更新。繼 6 月創下新的系統記錄後，TNMP 在 7 月底兩次突破該水平，並在 8 月再次突破該水平。 TNMP 系統需求的持續成長以及對基礎設施投資的立法支持促使我們將更多項目置於計劃的首要位置。

Lisa will walk through our revised capital plans through 2027, which includes this growth at TNMP. I mentioned last quarter that our annual capital investment plans at TNMP had more than doubled in the last 5 years from $200 million to $400 million per year. And now our 5-year plan shows this level increasing to $600 million per year as Texas continues to lead the nation in growth.

Lisa 將詳細介紹我們修訂後的 2027 年資本計劃，其中包括 TNMP 的成長。我上個季度提到，我們 TNMP 的年度資本投資計畫在過去 5 年裡增加了一倍多，從每年 2 億美元增加到 4 億美元。現在，我們的 5 年計畫顯示，隨著德州繼續引領全國經濟成長，這一水準將增至每年 6 億美元。

On the distribution side, customer growth remained strong, and the housing markets in our North Texas and Gulf Coast service territories are among the strongest in the country. For example, we have been working with a developer all year who announced its plans this month for a new 1,600 home community in our Gulf Coast service territory, development has already begun and housing construction is expected to begin in 2025.

在分銷方面，客戶成長依然強勁，德州北部和墨西哥灣沿岸服務區的房屋市場是全國最強勁的。例如，我們一整年都在與開發商合作，該開發商本月宣布計劃在我們的墨西哥灣沿岸服務區域建造一個新的1,600 個住宅社區，開發工作已經開始，住房建設預計將於2025 年開始。

On the transmission side, our teams have worked to earn a reputation in the area for processing new requests in a timely manner and are fielding additional inquiries, in addition to our system demand, 1 of our proposals for transmission expansion in West Texas has been vetted by the ERCOT Regional Planning Group and should be considered by ERCOT Board later this year. We are seeing interconnection requests increase each quarter and under new legislation, ERCOT will be directed to develop a reliability plan for the premium Basin, which could result in additional investment opportunities. As for regulatory update, we implemented new rates for both distribution and transmission capital recovery in September.

在傳輸方面，我們的團隊努力在及時處理新請求方面贏得了該領域的聲譽，並且正在處理更多詢問，除了我們的系統需求之外，我們在西德克薩斯州傳輸擴展的一項提案已經過審​​查由 ERCOT 區域規劃小組提出，並應在今年稍後由 ERCOT 董事會考慮。我們看到互連請求每個季度都在增加，根據新的立法，ERCOT 將被指示為高級盆地制定可靠性計劃，這可能會帶來額外的投資機會。至於監理更新，我們在 9 月實施了新的配電和輸電資本回收費率。

Next year, we plan to make semiannual filings under both the TCOS and DCRF mechanisms based on the new DCRF legislation. All of our T&D capital investments qualify for recovery in this manner as the rules for new resilience legislation are finalized, we could see additional recovery mechanisms put into place and would also submit a filing under those rules, we also received approval for TNMP's annual energy efficiency program with a settlement for recovery of $6.6 million of program costs, which includes a $1.2 million bonus incentive for prior year achievement. TNMP remains the fastest-growing segment of our business with the constructive regulatory environment to recover investments timely.

明年，我們計劃根據新的 DCRF 立法，在 TCOS 和 DCRF 機制下進行半年一次的備案。隨著新彈性立法規則的最終確定，我們所有的T&D 資本投資都有資格以這種方式回收，我們可以看到額外的回收機製到位，並且還將根據這些規則提交文件，我們還獲得了TNMP 年度能源效率的批准方案，並達成和解以收回 660 萬美元的方案成本，其中包括針對上一年成就的 120 萬美元獎金獎勵。 TNMP 仍然是我們業務中成長最快的部分，具有建設性的監管環境，可以及時收回投資。

With that, I'll turn it over to Lisa.

有了這個，我會把它交給麗莎。

Thank you, Don, and good morning, everyone. I'll start on Slide 10 with a summary of the year-over-year changes in third quarter earnings. Earnings per share in the third quarter of 2023 were at $1.54 compared to $1.46 in the third quarter of 2022. Weather was a significant positive driver in both New Mexico and Texas, adding $0.21 to the quarter.

謝謝你，唐，大家早安。我將從幻燈片 10 開始，總結第三季收益的同比變化。 2023 年第三季的每股收益為1.54 美元，而2022 年第三季的每股收益為1.46 美元。天氣是新墨西哥州和德克薩斯州的重要積極推動因素，該季度收益增加了0.21 美元。

Continued rate recovery of transmission and distribution investments at TNMP also added earnings. The increase at both utilities was partially offset by planned O&M increases and expenses for depreciation, property tax and interest associated with new rate base investments. Lower earnings at corporate reflects higher interest rates year-over-year, partially mitigated by the hedges we previously put in place.

TNMP 輸配電投資的持續恢復也增加了收益。兩家公用事業公司的成長被計劃的營運和維護增加以及與新利率基礎投資相關的折舊、財產稅和利息費用部分抵消。企業獲利下降反映了利率同比上升，我們先前實施的對沖措施部分緩解了這一影響。

On Slide 11, I'll cover our load growth for both PNM and TNMP. At PNM, weather had the biggest impact on our sales volumes. On a weather-normalized basis, we continue to see residential and commercial classes ahead of our expectations while the ramp-up from some of our larger industrial customers remains behind schedule. We have updated our total load growth expectations for the year to be close to flat. The net earnings impact of these changes remains very small.

在投影片 11 上，我將介紹 PNM 和 TNMP 的負載成長。在 PNM，天氣對我們的銷量影響最大。在天氣正常化的基礎上，我們繼續看到住宅和商業類別的成長超出了我們的預期，而我們一些較大的工業客戶的成長仍然落後於計劃。我們已更新了今年的總負載成長預期，使其接近持平。這些變化對淨利潤的影響仍然很小。

At TNMP, we all hit new system peaks a few times over the quarter and not only because of hotter temperatures, we have seen higher-than-expected demand-based load both from crypto and other customers. Weather normalized volumetric load has been below our expectations, particularly in the third quarter as customers began to see their bills from June and July and reduce their usage along with some reductions when ERCOT calls for conservation.

在 TNMP，我們在本季度都多次達到新的系統峰值，這不僅是因為氣溫升高，而且我們還看到來自加密貨幣和其他客戶的基於需求的負載高於預期。天氣正常體積負荷低於我們的預期，特別是在第三季度，因為客戶開始看到他們從 6 月和 7 月開始的賬單，並減少了使用量，同時 ERCOT 呼籲節約時也減少了一些用量。

We have updated our expectations for the full year for both volumetric and demand-based load. We expect TNMP volumetric load to come in between 0% and 1% and while demand-based load is expected to come in between 12% and 13%.

我們更新了對全年容量和需求負載的預期。我們預計 TNMP 容積負荷將在 0% 至 1% 之間，而基於需求的負荷預計將在 12% 至 13% 之間。

Turning to Slide 12. We have updated and rolled out our capital plan through 2027 for a total of $5.9 billion. At TNMP, as Don mentioned, we are funding additional projects to support high demand on our systems and provide increased level of reliability and resiliency supported by Texas legislature this year. In the North Texas and the Gulf Coast area, where our distribution load is located. This means replacing transformation substations, trading at wood poles for steel and adding new circuits and feeders. For transmission loads, which are in all 3 of our regions. This means adding new points of interconnection on higher voltage lines. These investments have been prioritized to align with the new legislation but they can be recovered under the existing TCOS or DCRF mechanisms. The new rulemaking in process may provide opportunities for additional recovery of costs and investments tie to resiliency plan.

轉向投影片 12。我們更新並推出了截至 2027 年的資本計劃，總額為 59 億美元。正如 Don 所提到的，在 TNMP，我們正在資助更多項目，以支持對我們系統的高需求，並提供今年德克薩斯州立法機構支持的更高水平的可靠性和彈性。在德克薩斯州北部和墨西哥灣沿岸地區，我們的配電負載所在地。這意味著更換變電站、用木桿換取鋼材以及增加新的電路和饋線。對於傳輸負載，分佈在我們所有 3 個區域。這意味著在更高電壓線路上添加新的互連點。這些投資已優先考慮以符合新立法，但可以根據現有的 TCOS 或 DCRF 機制收回。正在進行的新規則制定可能會為與彈性計劃相關的成本和投資的額外回收提供機會。

As Don pointed out, TNMP's capital spending is now growing to just over $600 million per year. PNM's capital needs are also growing to accommodate the new resources and customer expansions discussed earlier. We have balanced the added capital with the impact on customer bills. On the graph in yellow, we've called out the investments for own battery storage, all battery investments will have to go through the CCN filing in order to be approved.

正如 Don 指出的那樣，TNMP 的資本支出目前正成長至每年 6 億多美元。 PNM 的資本需求也在不斷增長，以適應前面討論的新資源和客戶擴展。我們平衡了增加的資本和對客戶帳單的影響。在黃色圖表中，我們列出了對自有電池儲存的投資，所有電池投資都必須經過 CCN 備案才能獲得批准。

We also shifted our grid modernization plans back 1 year to reflect the shifts in timing of the regulatory proceedings. In the table at the bottom of the page, we have provided the corresponding rate base for these investments. TNMP rate base grows at 14.5% and PNM FERC rate base grows at 9.7%. These 2 jurisdictions utilize rate mechanisms to provide more timely recovery.

我們也將電網現代化計劃向後推遲了一年，以反映監管程序時間的變化。在頁面底部的表格中，我們提供了這些投資的相應利率基礎。 TNMP 費率基數成長 14.5%，PNM FERC 費率基數成長 9.7%。這兩個司法管轄區利用費率機制來提供更及時的恢復。

Turning to Slide 13, I'll provide an update on earnings guidance for the rest of the year and our long-term growth, including our financing plans. We are raising our earnings guidance for 2023 to a range of $2.75 to $2.80. Higher transmission margins in the first part of the year combined with the hot summer temperatures in the third quarter increased earnings at both utilities. These changes are partially offset by higher interest expense, lower transmission margins in the second half of the year and lower fixed income performance in our decommissioning trust.

轉向幻燈片 13，我將提供有關今年剩餘時間的盈利指引和我們的長期增長（包括我們的融資計劃）的最新資訊。我們將 2023 年的獲利指導上調至 2.75 美元至 2.80 美元。今年上半年較高的輸電利潤率加上第三季炎熱的夏季氣溫增加了兩家公用事業公司的收益。這些變動被利息支出增加、下半年輸電利潤率下降以及退役信託固定收益業績下降所部分抵銷。

On the equity side, we completed another $100 million of forward sales under our ATM program during the third quarter, fulfilling the $200 million of equity needs for this year. We plan to settle those forward sales contracts through the issuance of shares before year-end. The proceeds from the sale of NMRD, combined with the $200 million of equity this year and the $345 million of San Juan securitization bonds will help strengthen our balance sheet and position us for future growth.

在股權方面，第三季我們根據 ATM 計畫又完成了 1 億美元的遠期銷售，滿足了今年 2 億美元的股權需求。我們計劃在年底前透過發行股票來結算這些遠期銷售合約。出售 NMRD 的收益，加上今年 2 億美元的股權和 3.45 億美元的聖胡安證券化債券，將有助於加強我們的資產負債表，並為我們未來的成長做好準備。

As we look forward, we have assumed on average approximately $100 million a year of equity to help fund growth in our capital investments. As usual, we leave our financing options open. And as market conditions change, we will consider other opportunities to optimize our funding. We continue to have $850 million of interest rate hedges in place through the end of the year and $600 million hedges in 2024 to mitigate the impact of interest rates on our variable rate set.

展望未來，我們假設平均每年擁有約 1 億美元的股本，以幫助為我們的資本投資成長提供資金。像往常一樣，我們保留融資選擇。隨著市場狀況的變化，我們將考慮其他機會來優化我們的融資。到今年年底，我們將繼續進行 8.5 億美元的利率對沖，並在 2024 年進行 6 億美元的對沖，以減輕利率對我們可變利率設定的影響。

Looking forward, if we are financing the business on a stand-alone basis, we will look to issue more permanent financing for this debt. Under these assumptions, we're comfortable extending our 5% growth target out to 2027 as we finance our rate base growth in the current market environment.

展望未來，如果我們單獨為該業務融資，我們將尋求為該債務發行更永久的融資。在這些假設下，我們願意將 5% 的成長目標延長至 2027 年，因為我們在當前市場環境下為利率基礎成長提供資金。

With that, I'll turn it back over to Pat.

這樣，我會把它轉回給帕特。

Thank you, Lisa. In addition to Cranky Coworkers Day today is also Global Champagne Day. So before I open it up for questions, and in the spirit of Champagne toast, I'd like to share some of our recent celebrations.

謝謝你，麗莎。除了脾氣暴躁的同事日之外，今天也是全球香檳日。因此，在我開始提問之前，本著香檳祝酒的精神，我想分享我們最近的一些慶祝活動。

This summer, the PNM Resources Foundation celebrated 40 years of giving. We just held our Annual Day of Service and Safety Day at PNM and TNMP, and we hosted our largest annual customer assistance there at PNM. TNMP was named business of the month at 1 of its local Chamber of Commerce. PNM was awarded a Sustainability Initiative of the Year from the Business Intelligence Group for our project to transfer critical water infrastructure at the San Juan coal plant to the Navajo Nation. So to everyone involved in each of these efforts, we raise a glass to you. Dave, let's open it up for questions.

今年夏天，PNM 資源基金會慶祝了捐贈 40 週年。我們剛在 PNM 和 TNMP 舉辦了年度服務日和安全日，並在 PNM 舉辦了最大的年度客戶援助活動。 TNMP 被當地商會評為本月最佳企業。 PNM 因其將聖胡安燃煤電廠的關鍵水基礎設施轉移到納瓦霍族的項目而被商業智慧集團授予年度永續發展倡議獎。因此，對於所有參與這些​​努力的人，我們向你們舉杯。戴夫，讓我們開始提問吧。

(Operator Instructions)

（操作員說明）

The first question comes from Ryan Levine with Citi.

第一個問題來自花旗銀行的 Ryan Levine。

In terms of the financing plan, so you highlighted $100 million of equity needs as part of your baseline plan. So just to clarify, that assumes it's successful exit of the renewable portfolio? And does that contemplate any incremental potential capital in Texas beyond what's outlined in your presentation today or can you give a little more color around what's embedded in that forecast?

就融資計劃而言，您強調了 1 億美元的股權需求作為基準計劃的一部分。所以澄清一下，假設它成功退出再生能源投資組合？除了您今天的演講中概述的內容之外，這是否考慮到了德克薩斯州任何增量的潛在資本，或者您是否可以對預測中的內容提供更多的說明？

Yes. So we are looking to do $100 million on average for the next 4 years. And that does not include what we're doing this year, which is the $200 million of equity that we already done as well as the NMRD sales that we're expecting towards the end of the year or early next year.

是的。因此，我們希望在未來 4 年平均實現 1 億美元的收入。這還不包括我們今年所做的事情，也就是我們已經完成的 2 億美元股本以及我們預計在年底或明年初完成的 NMRD 銷售。

And regarding that sale, did you delay or extend the time line from closing that from the fourth quarter to first quarter or early next year? And is there any color you could maybe you could speak to as to why maybe the time line is upping a little bit.

關於那次出售，你們是否推遲或延長了從第四季到第一季或明年初的完成時間？有沒有什麼顏色可以談談為什麼時間線會提早一點。

Yes. We're going through the bid process and our objective is towards the end of the year, but it can slip into the beginning of next year. We do have to go through a FERC filing in that sale. So that may also take a little time. And as you know, we don't know what's going to happen on November 17. So we're taking that into account as well.

是的。我們正在經歷投標過程，我們的目標是在今年年底，但它可能會推遲到明年初。我們確實必須在該銷售中提交 FERC 備案。所以這可能也需要一點時間。如您所知，我們不知道 11 月 17 日會發生什麼。因此我們也會考慮到這一點。

We're lengthening our regulatory time everything takes longer than we expected. So...

我們正在延長監管時間，一切都比我們預期的要長。所以...

Okay. And then in terms of the hedge, the interest rate hedge for 2024, how is that structured? At what rate is it hedged at, and does that hedge extent to the full calendar year? Or is that only a partial year in terms of how that's positioned.

好的。那麼就對沖而言，2024 年的利率對沖是如何建構的呢？以什麼利率進行對沖，這種對沖是否涵蓋整個日曆年？或者說，就其定位而言，這只是一年的一部分。

Yes, Ryan, this is -- we have a hedge of $600 million in total the average price is around 3.5%. And so -- and it goes for the entire calendar year.

是的，Ryan，這是——我們總共有 6 億美元的對沖，平均價格約為 3.5%。如此——整個日曆年都是如此。

The next question comes from Paul Zimbardo with Bank of America.

下一個問題來自美國銀行的保羅‧津巴多。

I was just hoping you could drill in a little more on the new 5-year investment plan? Just are there opportunities to add more batteries into that outlook, whether like 2026 plus as well as renewable scale?

我只是希望你能詳細介紹一下新的五年投資計畫？只是是否有機會在這一前景中添加更多電池，無論是 2026 年以後還是可再生能源規模？

Yes. Paul, absolutely. A couple of things that I mentioned was the 12-megawatt batteries to relieve the feeder constraints. And to kind of give you a feel, that's 6 megawatts on each feeder. And right now, we have 18 feeders that are at that capacity. So there's always options there as we kind of look forward those feeders provide tremendous customer benefit and being able for the customer to connect to rooftop solar. And right now, they're not able to because of those feeder constraints. So those are options. We've talked about our 2026 RFP. Obviously, that's included in our capital plan. We will have a 2027 RFP that we're working through right now as well.

是的。保羅，絕對是。我提到的幾件事是 12 兆瓦電池，以緩解饋線限制。讓您感受一下，每個饋線的功率為 6 兆瓦。目前，我們有 18 條支線滿足此容量。因此，總是有一些選擇，因為我們期待這些饋線能為客戶提供巨大的利益，並且能夠讓客戶連接到屋頂太陽能。目前，由於支線限制，他們無法做到這一點。所以這些都是選擇。我們已經討論了 2026 年 RFP。顯然，這已包含在我們的資本計劃中。我們也將製定 2027 年的 RFP，目前也正在處理中。

So that kind of pushes it out there. So that's that element of it -- in Texas, there's always opportunities as we file our grid resilience. But those have to always be balanced with customer impacts and the overall financing that we would do.

所以這就把它推出來了。這就是其中的一個要素——在德州，當我們提交電網彈性時，總是會有機會。但這些必須始終與客戶影響和我們要做的整體融資相平衡。

Okay. Great. Understood there. And kind of at a high level, could you help walk from that 10.6% rate base CAGR to the 5% EPS CAGR? And I know you have the equity in there, which probably takes about 2.5% or so, but it seems like there's kind of some cushion or conservatism? I don't know if that's additional regulatory lag, parent cost or something else?

好的。偉大的。那裡明白了。從較高的水平來看，您能否幫助從 10.6% 的基礎複合年增長率上升到 5% 的每股收益複合年增長率？我知道你在那裡有股權，大概需要 2.5% 左右，但似乎有某種緩衝或保守主義？我不知道這是否是額外的監管延遲、家長成本或其他原因？

Yes. Good question. So I would say several things. You have a great regulatory construct in Texas, but it's still based on historical test year. And so you do have some regulatory lag. The same thing, first, we have a historical test year. And then there's also timing of rate cases. And so -- and beyond that, you have the holdco financing, both from a debt and equity standpoint. So I think that those things are really what makes up the difference between the 10% rate base growth down to 5% earnings growth.

是的。好問題。所以我想說幾件事。德克薩斯州有一個很好的監管結構，但它仍然基於歷史測試年。因此，確實存在一些監管滯後。同樣的事情，首先，我們有一個歷史性的考驗年。然後還有費率案件的時間安排。因此，除此之外，從債務和股權的角度來看，你還有控股公司融資。因此，我認為這些因素才是造成 10% 的基礎成長率與 5% 的獲利成長率之間差異的真正原因。

Okay. Great. So nothing really different from the historical pattern, just regulatory lag and financing.

好的。偉大的。因此，與歷史模式沒有什麼不同，只是監管滯後和融資。

Correct.

正確的。

Our next question comes from Jonathan Reeder with Wells Fargo Securities.

我們的下一個問題來自富國銀行證券的喬納森·里德。

I was wondering if you could expand on your understanding of the Supreme Court's options, if they do remain the order back to the PRC, can they narrowly define what issues the PRC can address or fix? Or does the PRC automatically have cart launch?

我想知道您是否可以擴展您對最高法院選擇的理解，如果它們確實保留了返回中華人民共和國的命令，它們是否可以狹隘地定義中華人民共和國可以解決或解決哪些問題？或者中華人民共和國會自動啟動購物車？

I thought you're going to ask us if we're in our Halloween costumes today or not Jonathan, but I'll go ahead and answer your merger question. So I wish we had an exact answer on what the Supreme Court can and can't do. And if you listen to the oral argument, I think they were maybe even a little questioning what they can do. But our belief is that they either remand it back or they don't. And again, obviously, depending on what the order on remand says, the commission will get to determine their next step. But the commission should have wide latitude to determine what to reopen, assuming the Supreme Court kind of gives them just as we remand it back to be fixed. I know that's a squishy answer, but it's a squishy process.

我以為你會問我們今天是否穿著萬聖節服裝，喬納森，但我會繼續回答你的合併問題。所以我希望我們對最高法院能做什麼和不能做什麼有一個確切的答案。如果你聽一下口頭辯論，我認為他們甚至可能有點質疑自己能做什麼。但我們相信他們要么將其退回，要么不退回。顯然，根據還押令的內容，委員會將決定下一步的行動。但委員會應該有很大的自由度來決定重新開放什麼，假設最高法院給予他們就像我們發回重審一樣。我知道這是一個模糊的答案，但這是一個模糊的過程。

Okay. So I mean you do think the commission does have wide latitude even if, I guess, the Supreme court...

好的。所以我的意思是，你確實認為該委員會確實擁有廣泛的自由度，即使我猜最高法院…

(inaudible) order, they have wide latitude. They obviously can't go outside of the order, but they have wide latitude to address the order.

（聽不清楚）秩序，他們有廣泛的自由度。他們顯然不能超越命令，但他們有很大的自由度來處理命令。

Okay. All right. Yes. It will be interesting to see how that comes out. So then in terms of... Yes. That might be the understatement right. So how should we be thinking about like weather-normalized EPS for '23 then? If I'm understanding like Slide 19 correctly, it shows above normal weather year-to-date has been like $0.14 positive in New Mexico and $0.05 in Texas. So if I subtract that $0.19 from kind of the new guidance midpoint of, call it, $2.78, it would put full year '23 weather-normalized EPS at $2.59, which is actually below I think your initial '23 guidance range, $2.60 to $2.75. Like is that fair? Is that how we should be thinking of it?

好的。好的。是的。看看結果如何將會很有趣。那就……是的。這可能是輕描淡寫的權利。那我們該如何考慮 23 年的天氣正常化每股盈餘呢？如果我對幻燈片 19 的理解正確的話，它顯示今年迄今為止，新墨西哥州的氣溫高於正常水平 0.14 美元，德克薩斯州的氣溫為 0.05 美元。因此，如果我從新的指導中點（即2.78 美元）中減去0.19 美元，那麼23 年全年天氣標準化EPS 將為2.59 美元，這實際上低於我認為您最初的23 年指導範圍（2.60 美元至 2.75 美元） 。這樣公平嗎？我們該這樣想嗎？

Well, we've had strong weather in the third quarter, both across Texas and New Mexico. But we're also -- when that happens, we also use that as an opportunity to do some extra maintenance at the utilities. There's been other offsets in terms of our nuclear decommissioning trust, as you know, we have 80% and asset allocation of 80% fixed income. And so when the fixed income market is dragging that also has an impact and then we also have some interest expense exposure due to both timing of equity as well as the securitization issuance that we're planning to do later this year.

嗯，第三季德州和新墨西哥州的天氣都很好。但當這種情況發生時，我們也會以此為契機對公用事業進行一些額外的維護。我們的核退役信託還有其他抵消，如你所知，我們有 80% 的固定收益和 80% 的資產配置。因此，當固定收益市場陷入困境時，這也會產生影響，而且由於股權時機以及我們計劃在今年稍後進行的證券化發行，我們也將面臨一些利息支出風險。

Jon, I would say the biggest thing is that we dynamically manage our O&M. And so when we have the opportunity to give the folks in the field some extra dollars, we always do that so that they can invest it in the safety and reliability and resiliency of the system. So that's the biggest flex there.

Jon，我想說最重要的是我們動態管理我們的維運。因此，當我們有機會為現場人員提供一些額外的資金時，我們總是這樣做，以便他們可以將其投資於系統的安全性、可靠性和彈性。所以這是最大的靈活性。

Okay. So yes, we should think of it as you kind of flexing that versus the business not performing as expected or something like that.

好的。所以，是的，我們應該將其視為您對業務未按預期執行或類似情況進行的調整。

Correct.

正確的。

That makes sense. And then last, I think kind of following up to Paul's question, just trying to better understand what is or isn't in the new CapEx plan. So the 60-megawatt utility on battery storage project, that's in there, and that's represented by the yellow bars, right?

這就說得通了。最後，我認為是在跟進保羅的問題，只是想更好地了解新的資本支出計劃中包含或不包含哪些內容。那麼 60 兆瓦的公用事業電池儲存專案就在那裡，用黃色條表示，對嗎？

That's correct.

這是正確的。

Okay. And then for lack of a better word, the copycat projects of the 12-megawatt battery storage CCN, that's not in there at this point?

好的。然後，由於缺乏更好的詞，12兆瓦電池儲存CCN的山寨項目，目前不存在嗎？

It's not in there. It's just the 12 megawatts is all that's in there so.

它不在那裡。那裡只有 12 兆瓦。

Okay. And then what about potential transmission projects in Texas that you alluded to in your prepared remarks? Are any of those baked in?

好的。那麼您在準備好的發言中提到的德州潛在的輸電項目又如何呢？有那些是烤過的嗎？

Yes, they are all baked in.

是的，它們都是烤好的。

Okay. Are there like -- is there any way to kind of categorize in what's in the budget like projects that I guess we should view or not locked in, depending on maybe regulatory approval, stuff like that, like a certain amount of that at risk? I know you already kind of walked through the potential upside.

好的。有沒有什麼方法可以對預算中的內容進行分類，例如我認為我們應該查看或不鎖定的項目，這取決於監管部門的批准，類似的東西，例如一定數量的風險項目？我知道你已經體驗到了潛在的好處。

The 12-megawatt even though it was completely unopposed is in there in the regulatory process, we would expect to get approval for that. Texas, those are strong projects that flow through. So we don't see any issues in that arena. Grid mod, we did move back 1 year, but we do expect to get Grid mod approved in the capital budget. So those are projects that are fluid, but we have capabilities to deliver on themselves.

12兆瓦雖然完全沒有受到反對，但仍在監管過程中，我們預計會獲得批准。德克薩斯州，這些都是流經的強大項目。所以我們在這個領域沒有看到任何問題。網格模組，我們確實推遲了一年，但我們確實希望在資本預算中獲得網格模組的批准。因此，這些項目是不穩定的，但我們有能力自行交付。

They still have high probability of being approved. And then we always have other things we can flip in there if something doesn't get approved. We've got the folks have lots of capital desires. So there's always enough to fill the pipeline.

他們獲得批准的可能性仍然很高。如果某些事情沒有獲得批准，我們總是可以在那裡翻轉其他東西。我們的人們有很多資本慾望。所以總是有足夠的東西來填充管道。

So anything that might slip out. Yes, you got other stuff that you think would...

所以任何可能溜走的事情。是的，你還有其他你認為會......

Go back to. Yes.

回去吧。是的。

And Jonathan, we always balance that with customer impact. So we're always looking at the combination of the both. And as Pat said, there's always additional projects as we harden the system.

喬納森，我們始終平衡這一點與客戶影響。所以我們一直在關注兩者的結合。正如帕特所說，當我們強化系統時總會有額外的項目。

Yes. And if you see in Texas, I mean, we have tremendous growth in Texas, particularly on the demand load side. And so that really the need for capital investments in Texas is strong. And in particular, when you think about the legislative sessions with the resiliency ride is coming along, that's a good area for us to invest in.

是的。如果你看到德克薩斯州，我的意思是，我們在德克薩斯州實現了巨大的成長，特別是在需求負荷方面。因此，德州對資本投資的需求確實很強烈。特別是，當你想到即將舉行的具有彈性的立法會議時，這對我們來說是一個值得投資的好領域。

Our next question comes from Brandon Lee with Mizuho.

我們的下一個問題來自瑞穗的 Brandon Lee。

Most of my questions have been asked, but just wondering, -- so thanks for the disclosure on the $100 million of equity over the next few years. Just wondering if there's any alternative ways you could raise equity in lieu of issuing it, like selling non-core assets or something like that?

我的大部分問題都被問到了，但只是想知道——所以感謝您披露未來幾年 1 億美元的股權。只是想知道是否有其他方法可以籌集股本來代替發行股本，例如出售非核心資產或類似的東西？

Those are obviously alternatives, but we think issuing equity is the best way to do it. We don't really have any non-core assets. We are obviously in the process of selling NMRD and everything else is core to our business, and we'd like to continue to invest in our business. And I'd rather raise equity and invest in the business and get a return on it than sell a piece of the business. So.

這些顯然是替代方案，但我們認為發行股票是最好的方式。我們實際上沒有任何非核心資產。顯然，我們正在出售 NMRD，其他一切都是我們業務的核心，我們希望繼續投資於我們的業務。我寧願籌集股本並投資於該業務並獲得回報，而不是出售部分業務。所以。

(Operator Instructions)

（操作員說明）

At this time, we have no further questions. This concludes our question-and-answer session. I would like to turn the conference over to Pat Vincent-Collawn for any closing remarks.

目前，我們沒有其他問題了。我們的問答環節到此結束。我想將會議轉交給 Pat Vincent-Collan 發表閉幕詞。

Thank you, Dave, and thank you all for joining us this morning. We are looking forward to seeing many of you in a couple of weeks at EI, and till then, make sure you raise a toast to your cranky and non-cranky coworkers this evening and have a safe and happy Halloween. Thank you all.

謝謝戴夫，也謝謝大家今天早上加入我們。我們期待幾週後在 EI 見到你們中的許多人，在那之前，請務必在今晚向暴躁和不暴躁的同事舉杯祝酒，並度過一個安全快樂的萬聖節。謝謝你們。

The conference has concluded. Thank you for attending today's presentation. You may now disconnect.

會議結束了。感謝您參加今天的演講。您現在可以斷開連線。