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PNM RESOURCES, INC.

(PNM)
  Report
Delayed Nyse  -  04:00 2022-09-26 pm EDT
46.57 USD   -0.39%
09/16PNM Resources Board Declares Quarterly Common Stock Dividend
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09/16PNM Resources, Inc. Declares Regular Quarterly Dividend, Payable on November 10, 2022
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09/09Public Service Company of New Mexico Declares Preferred Dividend
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PNM Resources : Rebuttal Testimony of Don Tarry

07/30/2021 | 10:09am EDT

BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION

IN THE MATTER OF THE JOINT APPLICATION

OF

)

AVANGRID, INC., AVANGRID NETWORKS, INC.,

NM

)

GREEN HOLDINGS, INC., PUBLIC SERVICE COMPANY

)

OF NEW MEXICO AND PNM RESOURCES, INC. FOR

)

APPROVAL OF THE MERGER OF NM GREEN

)

HOLDINGS, INC. WITH PNM RESOURCES, INC.;

)

APPROVAL OF A GENERAL DIVERSIFICATION PLAN;

)

AND ALL OTHER AUTHORIZATIONS AND APPROVALS )

REQUIRED TO CONSUMMATE AND IMPLEMENT THIS )

TRANSACTION

) Case No. 20-00222-UT

)

AVANGRID, INC., AVANGRID NETWORKS, INC.,

)

NM GREEN HOLDINGS, INC., PUBLIC

)

SERVICE COMPANY OF NEW MEXICO AND PNM

)

RESOURCES, INC.,

)

)

JOINT APPLICANTS.

)

)

JULY 29, 2021 REBUTTAL TESTIMONY

OF

JOSEPH D. TARRY

July 29, 2021

NMPRC CASE NO. 20-00222-UT

INDEX TO THE

JULY 29, 2021 REBUTTAL TESTIMONY OF

JOSEPH D. TARRY

I.

INTRODUCTION ..................................................................................................

1

II.

PURPOSE...............................................................................................................

1

III.

OVERALL BENEFITS OF THE PROPOSED MERGER ....................................

2

IV.

MANAGEMENT AUDIT OF CENTRAL MAINE POWER AND

PROCEEDINGS IN SPAIN INVOLVING IBERDROLA SENIOR

MANAGEMENT....................................................................................................

4

  1. RECOMMENDATION ON PNM BOARD OF DIRECTORS STRUCTURE

AND COMPOSITION..........................................................................................

12

VI. CONCLUSION.....................................................................................................

17

SELF-VERIFICATION

i

JULY 29, 2021 REBUTTAL TESTIMONY

OF JOSEPH D. TARRY

NMPRC CASE NO. 20-00222-UT

1

I. INTRODUCTION

  1. Q. PLEASE STATE YOUR NAME, POSITION AND BUSINESS ADDRESS.
  2. A. My name is Joseph D. Tarry. I generally go by Don Tarry. I am the Senior Vice
  3. President and Chief Financial Officer for PNM Resources, Inc. ("PNMR"), the
  4. public utility holding company for Public Service Company of New Mexico
  5. ("PNM").

7

8 Q. HAVE YOU PREVIOUSLY SUBMITTED TESTIMONY IN THIS

  1. MATTER?
  2. A. Yes. I submitted Direct Testimony in support of the Joint Application in this case
  3. on November 23, 202, in support of the Proposed Merger, Supplemental Testimony
  4. on February 26, 2021, Rebuttal Testimony on April 21, 2021, and Direct Testimony
  5. in Support Of Second Amended Stipulation on June 18, 2021.

14

15

II. PURPOSE

  1. Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY?
  2. A. The purpose of my testimony is to (1) discuss certain enhancements to the Second
  3. Amended Stipulation the Joint Applicants have agreed to accept based on
  4. recommendations made by New Mexico Affordable Reliable Energy Association
  5. ("NM AREA") Witness Gorman and Bernalillo County Witness Reno, (2) address
  6. the recent audit report on Central Maine Power and proceedings in Spain involving
  7. Iberdrola, S.A. ("Iberdrola") executives, and (3) address recommendations on the

1

JULY 29, 2021 REBUTTAL TESTIMONY

OF JOSEPH D. TARRY

NMPRC CASE NO. 20-00222-UT

  1. structure and composition of the PNM Board of Directors to address concerns
  2. raised by Staff and other parties.

3

4

III. OVERALL BENEFITS OF THE PROPOSED MERGER

5 Q. CAN YOU COMMENT ON THE RATE BENEFITS NOW BEING

6 PROPOSED BY THE JOINT APPLICANTS (REGULATORY

  1. COMMITMENT #1)?
  2. A. The Joint Applicants are now committed to provide a total of $88 million in rate
  3. benefits, which include $65 million in rate credits to PNM's customers over a three
  4. year period (an increase of $15 million from the Second Amended Stipulation), $6
  5. million for forgiveness of residential customer arrearages, $2 million in funds for
  6. assisting in providing electricity to new customers in remote parts of PNM service
  7. territory, and $15 million for low-income energy efficiency. As discussed further
  8. by Joint Applicant Witness Darnell, PNM has agreed to not file for a change to its
  9. base rates or file for any new tariffs before June 1, 2022. These rate benefits
  10. demonstrate a clear and quantifiable net benefit to our customers and communities
  11. in New Mexico as a result of the Proposed Merger.

18

  1. Q. CAN YOU COMMENT ON THE ECONOMIC DEVELOPMENT
  2. BENEFITS NOW BEING PROPOSED BY THE JOINT APPLICANTS?
  3. A. The Joint Applicants are committed to create or bring an additional 150 full-time
  4. jobs to New Mexico over three years, with a target of up to 20 of these jobs to be

2

JULY 29, 2021 REBUTTAL TESTIMONY

OF JOSEPH D. TARRY

NMPRC CASE NO. 20-00222-UT

  1. electric service business unit craftsmen at PNM, with a prioritization to hire
  2. personnel that have been or will be displaced as a result of San Juan Generating
  3. Station. As discussed by Joint Applicant Witness Fridley, any new positions within
  4. PNM will only occur if necessary to meet our utility obligation and to continue to
  5. provide safe and reliable service to customers. There is also a specific commitment
  6. from the Joint Applicants that 100 of the 150 full-time jobs will be located within
  7. the Albuquerque - Bernalillo County metropolitan area.

8

  1. In addition, the Joint Applicants have committed to make contributions to economic
  2. development projects or programs in New Mexico totaling $15 million (an increase
  3. of $7.5 million over the Second Amended Stipulation). The Joint Applicants will

12

fund the $15 million

over a five-year period and it will be administered

13

independently of Joint

Applicants and be dispersed through a grant proposal

14

solicitation process directed to non-profit entities focusing on economic

  1. development in areas where PNM maintains utility facilities. These enhanced
  2. economic development commitments bring additional value from the merger and
  3. will ensure that New Mexico, including PNM's customers, will see even more
  4. direct benefits to the economy as a result of the Proposed Merger.

19

20 These and other conditions being placed on the Proposed Merger preserve PNM's

21 character as a New Mexico-based utility with continued strong ties and

22 responsiveness to the communities and the people it serves.

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

PNM Resources Inc. published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 14:08:05 UTC.


© Publicnow 2021
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Sales 2022 1 838 M - -
Net income 2022 222 M - -
Net Debt 2022 - - -
P/E ratio 2022 18,1x
Yield 2022 2,99%
Capitalization 3 997 M 3 997 M -
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Nbr of Employees 1 646
Free-Float 98,6%
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Last Close Price 46,57 $
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Spread / Average Target 8,16%
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Patricia K. Vincent-Collawn Chairman & Chief Executive Officer
Joseph D. Tarry President & Chief Operating Officer
Elisabeth A Eden Chief Financial Officer, Treasurer & Senior VP
Mike Mertz Chief Information Officer & Vice President
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