Regulatory cost recovery risk
Utility earnings depend on timely recovery of approved costs and returns.
- Scope
- Rate cases, riders, and capital investment approvals
- Materiality
- high
Public Service Co Of New Mexico
Public Service Company of New Mexico is a regulated electric utility serving retail and wholesale power customers in New Mexico. Through its PNM business, it provides electricity generation, transmission, and distribution across a large portion of north-central and southern New Mexico, including Albuquerque, Rio Rancho, Santa Fe, and several sovereign nations.
| % | |
|---|---|
| Retail electric utility service | 70% Regulated electricity service delivered to homes, businesses, and industrial customers in New Mexico. |
| Generation and wholesale power | 15% Electricity generation and wholesale market sales used to serve retail load and market demand. |
| Transmission and distribution | 10% High-voltage transmission and local distribution network services that move power to customers. |
| Rate riders and regulatory mechanisms | 5% Recovery of renewable energy, energy efficiency, and transition-related costs through riders. |
PNM serves regulated retail electric customers across residential, commercial, industrial, and public-sector accounts...
- Residential retail customersprimary
Households in PNM's service territory buying regulated electricity for everyday use.
- Commercial customersprimary
Businesses and institutions purchasing electricity for lighting, HVAC, and operations.
- Industrial customerssecondary
Larger load customers with higher usage intensity and more sensitivity to economic activity.
- Wholesale and transmission customerssecondary
Third parties using PNM's transmission services or buying power in wholesale markets.
- Tribal and sovereign nation communitiessecondary
Customers served within or near 9 sovereign nations in PNM's territory.
The business is concentrated in New Mexico, where PNM serves a large north-central and southern service territory...
- •Primary operations are in New Mexico
- •Service territory includes Albuquerque, Rio Rancho, and Santa Fe
- •Also serves parts of southern New Mexico
- •Customer base includes 9 sovereign nations
- •Geography drives grid buildout, reliability, and regulatory exposure
PNM's strategy centers on regulated infrastructure investment, grid modernization, and the transition toward cleaner...
01
Grid modernization and reliability investmentmedium-term
Utility service quality and regulatory support depend on a resilient network.
02
Renewable and zero-carbon transitionlong-term
State policy requires increasing renewable and zero-carbon energy over time.
03
Regulated cost recoveryshort-term
Timely recovery of capital and operating costs supports utility economics.
PNM's main risks come from regulation, capital recovery, and the operational complexity of running critical electric...
Cybersecurity and physical security risk
Critical infrastructure and connected IT/OT systems can be disrupted by attacks.
- Scope
- Generation, transmission, distribution, billing, and customer data
- Materiality
- high
Decommissioning and environmental liability risk
Plant retirement and coal-related remediation can create large future obligations.
- Scope
- Power plants, coal combustion residuals, reclamation
- Materiality
- high
Weather and demand variability
Electric load changes with weather, seasonality, and customer conservation behavior.
- Scope
- Retail sales, peak demand, and system planning
- Materiality
- medium
Policy and technology substitution risk
Self-generation, efficiency, and alternative energy can bypass utility systems.
- Scope
- Retail load growth and long-term asset utilization
- Materiality
- medium
Regulatory assets and liabilities
Affects earnings timing, balance sheet size, and future rate recovery
Goodwill impairment
Could create non-cash charges if reporting unit value declines
Long-lived asset impairment
Can materially reduce asset values and earnings
Environmental and decommissioning provisions
Affects liabilities, operating expense, and future cash requirements
: 29.4.2026