PNM, a subsidiary of PNM Resources, Inc. (NYSE:PNM), has signed a purchase and sale agreement to purchase the Delta-Person Generating Station, located in southwest Albuquerque.
Delta-Person, a 132-megawatt gas-fired peaking facility, has served PNM jurisdictional needs under a 20-year purchase power agreement since 2000. Under the Purchase and Sale Agreement, PNM will acquire all of the ownership interests in Delta Person Limited Partnership from Delta Person GP, LLC and BHB Power, LLC.
“We are pleased that this acquisition secures a reliable power source that benefits our customers today and for the long-term,” said Pat Collawn, PNM Resources chairman, president and CEO. “Owning Delta-Person gives PNM the ability to control operating costs at the plant and gives us added flexibility to respond to changing system needs.”
PNM's rate base would be increased by the approximately $40 million acquisition price if approved by the Federal Energy Regulatory Commission and the N.M. Public Regulation Commission. PNM plans to file for the approvals by the end of January. Assuming 2013 mid-year approvals, the acquisition is expected to be accretive and contribute $.01 to ongoing diluted earnings per share in 2013 and $.02 for the full year of 2014. Customer rates are not expected to increase as a result of this acquisition.
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2011 consolidated operating revenues of $1.3 billion, excluding First Choice Power. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,550 megawatts of generation capacity and serves electricity to more than 735,000 homes and businesses in New Mexico and Texas. For more information, visit the company’s Web site at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release that relate to future events or PNM Resources’ (“PNMR”); or Public Service Company of New Mexico’s (“PNM”) (collectively, the “Company”) expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR and PNM assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR and PNM caution readers not to place undue reliance on these statements. PNMR's and PNM's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are specifically incorporated by reference herein.
Non-GAAP Financial Measures
The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with generally accepted accounting principles in the U.S. (GAAP). The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Management is generally not able to estimate the impact of the reconciling items between ongoing earnings guidance and forecasted GAAP earnings, nor their probable impact on GAAP earnings; therefore, management is generally not able to provide a corresponding GAAP equivalent for earnings guidance.
Terry Horn, 505-241-2119
Valerie Smith, 505-241-2892
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