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TNMP Settles Texas Base Rate Case for $2.8B

TNMP filed a comprehensive settlement in its Texas base rate case that would let the utility recover a filed rate base of $2.8 billion, measured as of June 30, 2025.

The settlement keeps TNMP’s authorized return on equity at 9.65% and its equity ratio at 45%. It also reflects higher operations and maintenance costs that were not covered through interim capital recovery mechanisms, along with changes in deferred federal income tax amortizations, partly offset by changes in depreciation rates.

Separate from the base rate request, the settlement would add $20.5 million of rate rider recovery tied to Hurricane Beryl restoration costs, spread over five years.

If approved, the final rates would relate back to May 22, 2026 under interim rates already in place. The filing drew support from a broad group of parties, including the PUCT staff, municipal groups, data center interests, industrial energy users, and Walmart. Amazon Data Systems and Texas Energy Association for Marketers did not oppose the stipulation. Today the company's shares have moved 0.04% to a price of $59.2351. If you want to know more, read the company's complete 8-K report here.

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