covid-19 update and q1 2020 earnings review/media/files/p/pnm...may 01, 2020 · covid-19 update...
TRANSCRIPT
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COVID-19 Update and Q1 2020 Earnings ReviewMay 1, 2020
November 1, 2019
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Safe Harbor Statement
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995Statements made in this presentation for PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”) and Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that relate to future events or 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. The Company assumes no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, the Company cautions readers not to place undue reliance on these statements. The Company’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its 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 and the information filed on the Company’s Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
Non-GAAP Financial MeasuresFor an explanation of the non-GAAP financial measures that appear on certain slides in this presentation (ongoing earnings, ongoing earnings per diluted share and ongoing earnings guidance measures), as well as a reconciliation to GAAP measures, please refer to the Company’s website as follows: http://www.pnmresources.com/investors/results.cfm.
http://www.pnmresources.com/investors/results.cfm
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Opening Remarks and OverviewPat Vincent-Collawn
Chairman, President and CEO
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Opening Remarks
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COVID-19 reminds us of our purpose, values and culture• We are responsible for providing an essential service• Our communities rely on us for more than electricity• Our team is our most valuable asset, supported by our values
and culture
Top priorities in COVID-19 environment:• Safety of our team• Caring for our customers and communities• Managing our essential operations
Strategy and Vision• Transformation of PNM generation portfolio• Expansion of PNM transmission grid to integrate renewable
resources and battery storage• Invest in TNMP infrastructure to support reliable service across
diverse service territory and customer base
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Regulatory Strategies
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Deferring plans to file general rate review due to COVID-19, filing instead for full decoupling for residential and small commercial customers
Filed to defer incremental COVID-19 related expenses to a regulatory asset that will be included in a future rate review for recovery
COVID-19 Electricity Relief Program designed to support entire ERCOT market: customers, Retail Electric Providers, and T&D utilities
Utilizing DCOS (filed April 6, 2020) and TCOS mechanisms (first 2020 filing approved in March, second filing expected in July) to recover capital investments without general rate review
Regulatory strategies have been modified to consider the current environment and reflect our focus on benefitting customers and communities
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Executing Strategic Plans
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San Juan abandonment, securitization and replacement power
San Juan abandonment/ securitization unanimously approved on April 1, 2020
San Juan replacement power: Hearing Examiner recommended decision and NMPRC order by October 1, 2020
Developing plans to exit Four Corners
200 MW ownership Contracts expire
2031, PNM looking to exit sooner
Evaluating decision to retain / replace Palo
Verde leased capacity 104 MW expires 2023 10 MW expires 2024
Transform the PNM generation portfolioBalance appropriate level of baseload resources to be emissions-free by 2040 and
shift towards additional low-cost renewables and flexible resources
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Financial Overview and COVID-19 Updates
Chuck EldredExecutive Vice President, Corporate Development and Finance
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COVID-19 Scenario Analysis
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Stage 1 Stage 2 Stage 3
Duration / Economic Conditions
(Margin Impact)
Up to 60 day-impact (through May) with closure of non-essential businesses, restrictions lifted by end of
May
60 - 120 day-impact (through July), with closure of non-essential businesses, restrictions lifted beginning
of August
>120 day-impact, duration of 4-6 months before
recovery begins (continues through the end of 2020)
Workforce Disruption
(Capital Impact)
No significant disruption to critical workforce; remaining
workforce able to work remotely
Up to 15% disruption for a sustained period resulting
from absenteeism
Up to 40% disruption for a sustained period resulting
from absenteeism
Supply Chain(Capital Impact)
No material supply chain issues, adequate near-term supply of capital equipment
on-site or available
Disruption in supply chain for specific capital
equipment results in 1–2 month delay on certain projects; no issues with
maintenance capital necessary to maintain
reliable service
Major disruption in supply chain delays significant
capital projects; prioritization of capital
equipment to meet most essential reliability projects
• Continued scenario analysis and planning under 3 different stages:
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COVID-19 Financial Considerations: Continued Transparency
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Q4
September
August
July
June
May
April
March
Stage 2 Guidance at Risk
Stage 3Outside of Guidance
• Continue to evaluate impacts and implement mitigating plans
Stage 1Manage within
Guidance
• Developed planning scenarios• Q1 results in line with assumptions• April results evaluated, assumptions updated
• Continued transparency into our scenario analysis as we progress through stages and evaluate continued impacts:
Summer temperatures
are key
Slow recovery into 2021, potential that some
businesses do not reopen
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Business Fundamentals Remain Intact Amidst COVID-19
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Rate Base Growth
Earnings Growth
Dividend Growth
Liquidity
• 8.9% rate base growth 2019 - 2023• PNM and TNMP T&D continues to support critical
infrastructure and reliability projects• Balancing replacement power with additional
opportunities for PNM T&D
• 5% - 6% earnings growth target of 2019 - 2023• Proven history of building flexible plans that are
adaptable in response to changing conditions
• Dividend growth to mirror earnings growth• Quarterly declarations by Board of Directors• Annual dividend evaluated in December
• Immediate equity needs met through January 2020 forward offering
• Adequate liquidity remains available to finance business needs
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Liquidity / Financings
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projected May 1, 2020 Capacity Borrowed Available(in millions)
Revolvers $855 $179 $676Invested Cash 25 25Forward Equity 287 - 287Available Liquidity $1,167 $179 $988
Available liquidity remains adequate at $1 billion to finance business needs
April 2020 Transactions:• PNM $250 million 14-month (through June 2021) term loan effective April 15, 2020 • PNM $200 million Senior Unsecured Notes issued April 30, 2020 at a weighted
average rate of 3.3%• TNMP $185 million First Mortgage Bonds, with $110 million of bonds issued on April
24, 2020 and $75 million of bonds to be issued by July 15, 2020 at a weighted average rate of 3.0%
• $855 million capacity under multi-year revolving credit facilities
• $287 million under January 2020 forward equity offering, which has the flexibility to be drawn down earlier than December 2020 if needed
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COVID-19 Financial Considerations and Updates
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• Load impacts, mitigating impacts
Ongoing Earnings Guidance Considerations
• Updated assumptions: PNM greater impacts, TNMP lesser impacts
COVID-19 Load Impacts
• TNMP relief program in effect; PNM filed for regulatory asset treatment of COVID-19 related costs
Bad Debt Considerations
• PNM deferring planned general rate review due to COVID-19, filing instead for full decoupling in May 2020
PNM Decoupling
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COVID-19 Financial Considerations and Updates
Don TarrySenior Vice President and CFO
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Ongoing Earnings Guidance Affirmed Based on COVID-19 Stage 1
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COVID-19 Load Impacts
March $0.00 April ($0.02)
May ($0.02)
June ($0.02)-($0.03)
July ($0.02)-($0.03)
August ($0.02)September ($0.02)
Q4 ($0.02) / month
$2.16 Consolidated EPS $2.26
Mitigating Impacts
Lower interest and financing costs, weather, managing O&M
Phase-in cost contingency plans, regulatory filings, weather
Reassess guidance
2020 Earnings Guidance affirmed based on Stage 1 COVID-19 Considerations
Stage 1: Manage within
Guidance
Stage 3: Outside of Guidance
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2020 Guidance Projection 2019
COVID-19 Load Impacts: Updated Assumptions
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Stage 1 Stage 2 Stage 3
April results provide additional clarity, updated assumptionsPNM: reduced load projection as Commercial experiences greater COVID-19 impacts
• Residential COVID-19 increase remains +5%• Commercial COVID-19 reduction updated to -15% (from -10%)
TNMP: increased load projection as Demand-based experience lesser COVID-19 impacts• Demand-based COVID-19 reduction updated to -5% (from -10%)• Volumetric COVID-19 increase remains +5%
TNMPDemand-Based
TNMPVolumetric
PNM Volumes
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PNM / New Mexico COVID-19 Update
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• New Mexico’s largest employers include government and health care, with a larger number of small/medium businesses
• New Mexico Governor and Economic Recovery Council begin multi-phased plan for “gradual and safe reopening”
Customer Class Considerations• Residential: highest rate class, increased volumes
during the Stay-at-Home order• Commercial: weighted towards small businesses
that are most impacted by the Stay-at-Home order• Industrial: no significant impacts expected
PNM Sales by Customer Class % Volumes % Revenues
Residential 36% 46%Commercial 41% 42%Industrial 20% 10%Other 3% 2%
Southern ~15%
Central~85%
PNM 2019 Revenues by Region
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TNMP / Texas COVID-19 Update
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West Texas ~15%
North/Central TX ~35%
Gulf Coast ~50%
● TNMP Service Area
TNMP 2019 Revenues by Region
• TNMP EPS is less impacted by changes in load/demand:• Transmission recovery (45% of revenues), trued up twice per year• Majority of demand-based bills based on greater of peak monthly usage, or 80% of
previous 11 months peak; ERCOT set new April system peaks in 2020• ERCOT peak demands have been less impacted than other areas of the country• Governor lets stay-at-home order expire on April 30, 2020 and businesses begin to
reopen at limited capacity
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TNMP Regional Breakdown
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TNMP – West Texas
West Texas ~15%
North/Central TX ~35%
Gulf Coast ~50%
● TNMP Service Area
Region provided 15% of 2019 retail revenues• ~50% of 2019 revenues derived from retail
transmission customers with recovery trued up twice per year
• ~25% of 2019 revenues demand derived from higher-voltage customers that continue to trend above 2019 levels during COVID-19
• Diversification of customers within the oil & gas industry between upstream (production, separation and water handling activities) and downstream (processing and transportation of oil and gas prior to market) activities
• Delaware Basin has one of the lowest break-even price for oil and gas production in the Permian Basin and the entire US, area is only partially served by utility power
• Largest city: Pecos ~10,000 residents
TNMP 2019 Revenues by Region
Permian Basin
Delaware Basin
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TNMP Regional Breakdown
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TNMP – North/Central TX
West Texas ~15%
North/Central TX ~35%
Gulf Coast ~50%
● TNMP Service Area
TNMP 2019 Revenues by RegionRegion provided 35% of 2019 retail revenues• Dallas region is home to 250 corporate
headquarters that each employ more than 1,000 people globally, 22 Fortune 500 companies and 8 of Forbes’ largest privately held companies
• The sprawl from Dallas-Ft Worth into the TNMP service territory has resulted in a load profile that is evenly split between residential customers and the commercial businesses supporting these communities (retail, restaurants, entertainment, schools, health care facilities)
• COVID-19 Trends: Increases in residential customer usage are offset by reduced demand-based business usage
• Largest city: Lewisville ~100,000 residents
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TNMP Regional Breakdown
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TNMP – Gulf Coast
West Texas ~15%
North/Central TX ~35%
Gulf Coast ~50%
● TNMP Service Area
TNMP 2019 Revenues by RegionRegion provided 50% of 2019 retail revenues• Regional economy driven largely by oil refining
and petrochemical industries, supplemented by the aerospace and medical industries
• Sprawl from Houston has led to TNMP’s greatest portion of residential customers in this region, combined with supporting commercial businesses (retail, restaurants, entertainment, schools health care facilities) and the marine and tourism industry native to the coast
• ~60% of 2019 revenues from residential customers, who have increased usage during COVID-19
• Petrochemical companies boosting production of chemicals used in medical personal protective equipment and hand sanitizer during COVID-19
• Largest cities: League City ~100,000 residents and Texas City ~50,000 residents
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Bad Debt Considerations
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• PNM joint filing on April 27, 2020 with NMPRC to request deferral of utility’s uncollectible payments and incremental costs in response to COVID-19 to regulatory asset, with recovery determined in next rate review
• Proactive outreach to customers with outstanding balances to offer information regarding payment assistance options and programs, including payment plans specifically designed to offer COVID-19 assistance
• In the absence of approval to defer costs, COVID-19 assumptions related to bad debt:• Historically ~0.35% of revenues • Stage 1: 10% write-off of payment deferrals increases expense by
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PNM Decoupling Filing
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Stand-alone full decoupling filing
To be filed May 2020
Request order by year-end
Customer bills more accurately reflect the fixed, non-fuel costs of the service provided
Residential
Small Commercial
Disassociates utility profits from sales volumes
Removes utility disincentives to promote
energy efficiency or conservation programs
Eliminates the upside/ downside risks of
weather for the non-fuel portion of customer bills
PNM filing decoupling in lieu of its planned general rate review due to challenges created for customers by COVID-19
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Questions and Answers
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Appendix
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PNM and TNMP Regulatory Agenda
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Filing Action Timing Docket No.PNM:Deferral of Incremental costs related to COVID-19 PNM and other utilities filed joint motion April 27, 2020 Pending 20-00069-UT
Consolidated Application for San Juan GeneratingStation (Abandonment, Securitization and Replacement)
PNM filed July 1, 2019; NMPRC bifurcated case; New Mexico Supreme Court ruled January 29, 2020 that Energy Transition Act applies to both dockets.
NMPRC order approving abandonment/securitization issued April 1, 2020
Replacement hearings held January 2020Replacement power: pending recommended decision and NMPRC Order by October 1, 2020
19-00018-UT
19-00195-UT
Solar Direct ProgramPNM filed May 31, 2019 for approval of voluntary renewable program expected to begin March 31, 2021; Hearings completed January 2020
Approved March 25, 2020 19-00158-UT
TNMP:
TCOS Filing TNMP filed January 24, 2020; Approved March 27, 2020 Rates implemented March 27, 2020 50481
DCOS Filing TNMP filed April 6, 2020 Rates expected to be implemented September 1, 2020 50731
Upcoming activities:• PNM Decoupling• PNM annual FERC formula rate and PNM annual Renewable plan filings• TNMP second 2020 TCOS filing anticipated for July 2020
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COVID-19 Load: Assumptions and EPS Rules of Thumb
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Updated Assumption• +5% Residential impact• -15% Commercial impact• No significant Industrial impacts
TNMP
PNM
TNMP EPS is less impacted by changes in load/demand:• T&D rate (no generation) • Transmission investment/expense recovery (45% of revenues), trued up twice per year• Majority of demand-based bills based on greater of peak monthly usage, or 80% of
previous 11 months peak usage
RULE OF THUMB10% change in load =
Monthly EPS Impact
April – May +/- $0.02June – September +/- $0.03 - $0.04August – December +/- $0.02
RULE OF THUMB10% change in load =
Monthly EPS ImpactVolumetric Demand-Based
April – May +/- $0.01 +/- $0.01June – September +/- $0.02 +/- $0.01August – December +/- $0.01 +/- $0.01
Updated Assumptions• +5% Volumetric impact• -5% Demand-based impact
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TNMP Low-Risk Revenue Profile
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30%Gulf Coast
3% West Texas
19%North/Central
16%North/Central
12%WestTexas
20%Gulf Coast
• 52% Volumetric Revenues: billed on kWh usage• Residential customers (97%)• Primarily in the Gulf Coast, North/Central regions
• 48% Demand-Based Revenues: billed on the peak hour of kW demand during the month
• Majority of customers subject to billing ratchet, meaning billing is the greater of the current month peak or 80% of prior 11 months peak
2019 Retail Revenues 50% Gulf Coast 35% North/Central Texas 15% West Texas
2019 TNMP Revenues$295M Retail Revenues
Includes $94M of pass-through transmission expense recovery, trued up twice annually
$67M Wholesale RevenuesFixed transmission investment recovery; can
be adjusted twice annually through TCOS filings, $81M approved March 2020
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2020 Consolidated Ongoing Earnings Guidance
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$2.16 Consolidated EPS $2.26
8%22%
55%
15%
Q1 Q2 Q3 Q4
2020 Annual EPS Distribution by Quarter
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AppendixQ1 Earnings Review
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Q1 2020 Ongoing EPS Financial Summary
30Note: Segment drivers included in appendix
$0.04
$0.04 ($0.01)
$0.11
$0.18
Q1 2019 Q1 2020
PNM
TNMPCorporate
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Q1 2020 vs Q1 2019 EPS (Ongoing): PNM
$0.12$0.16
Q1 2019 Q1 2020
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PNM
Q1 2020 Key Performance Drivers ∆ EPSO&M decreases $0.03Outage cost decreases $0.02Renewable rider $0.01Retail load $0.01Leap year $0.01FERC transmission margin $0.01
Weather ($0.02)Decommissioning/reclamation trust income, net of fees ($0.02)Depreciation and property tax ($0.01)
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Q1 2020 vs Q1 2019 EPS (Ongoing): TNMP and Corporate
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$0.05 $0.09
Q1 2019 Q1 2020
TNMP
($0.06) ($0.07)
Q1 2019 Q1 2020
Corporate
Q1 2020 Key Performance Drivers ∆ EPSEffective tax rate ($0.01)
Q1 2020 Key Performance Drivers ∆ EPSRate relief (TCOS) $0.03Interest rate savings $0.02Load $0.01Other $0.01
Depreciation and property tax ($0.02)Weather ($0.01)
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Weather Impact
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PNM Q1 2020 Q1 2019 2020 Normal(1)
Heating Degree Days 1,089 1,222 1,119
Cooling Degree Days 0 1 0
Net EPS Impact compared to normal
$0.00 $0.02
TNMP Q1 2020 Q1 2019 2020 Normal(1)
Heating Degree Days 711 927 907
Cooling Degree Days 196 75 97
Net EPS Impact compared to normal
($0.01) $0.00(1) 2020 normal weather assumption reflects the 20-year average for the period 2000 - 2019
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PNM Scheduled Plant Outages
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San Juan
Unit Duration in DaysTime
PeriodNo planned outages in 2020
Palo Verde
Unit Duration in DaysTime
Period2 30 Q2 2020
1 44 Q4 2020
Four Corners
Unit Duration in DaysTime
Period5 75 Q1-Q2 2020
4 23 Q2 2020
4,5 13 Q4 2020
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$3.3B investment plan results in 8.9% rate base growth$15M added to PNM T&D in 2020 to support customer growth, incremental to $20M added in February
$275 $306$322 $345$337 $270 $342
$348
$211 $174
$182 $202
$128 $94
$82 $77
$68 $109 $268
$48
$177
$72
$27 $27
$21
$21
$25
2020 2021 2022 2023
(in m
illio
ns)
TNMP PNM T&D PV Lease Purchases/Other Replacement Power
PNM Existing Generation PNM Transmission Expansion SJGS Replacement Power
50% NMRD Renewable Additions Business Technology Services/General Services Depreciation
$771
$993
$853
$695
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2020 – 2023 Investment Plan
(1) Western Spirit acquisition of $285M reflects assumed purchase price of $360M, net of $75M customer funding(2) For Palo Verde leases that expire in 2023, capex assumes either the purchase of the leases or replacement of the power through new resources(3) Depreciation does not include amounts associated with NMRD
(3)
(1)
Targeted 2019-2023 Rate Base CAGR (2019 base): Total 8.9% / PNM 6.0% / TNMP 15.9%
(2)
Chart1
2020
2021
322
345
Depreciation
[VALUE]
[VALUE]
275
306
Sheet1
2020202120222023
PNM Generation
PNM T&D
PNM Renewables
TNMP
Other
Total
Depreciation275306322345
Check
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2020 - 2023 Potential Earnings Power
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Note: 5-6% targeted earnings growth CAGR measured from 2019 Ongoing EPS of $2.16(1) Average rate base has been reduced by approximately $130M to represent ($0.05) of Earnings Potential for the lost equity return on Four Corners investment determined in the 2018 general
rate review. 2022 and 2023 rate base also reflects the removal of $283M undepreciated SJGS investment upon its retirement in mid-2022 to be recovered through securitization.(2) Replacement Power includes $298M investment implemented mid-2022; $278M of generation investment and $20M of transmission investment.(3) PNM Renewables reflect assets collected through the Renewable Rate Rider. (4) PNM FERC in 2021-2023 reflects a return of 8%-9% to account for Western Spirit investment recovered through incremental rates.(5) Consists primarily of decommissioning/reclamation trust income (net of fees/taxes), AFUDC, certain incentive compensation, and the 65MW ownership of San Juan Unit 4 (prior to retirement).(6) TNMP earnings include additional recovery for Energy Efficiency, along with items excluded from rates (primarily AFUDC) and interest savings from the refinancing of existing debt. (7) Corporate/Other includes the earnings impacts associated with short and intermediate term bank debt and the 50% equity interest in NMRD.(8) Equity Financing Plans reflect $250M - $300M of mandatory convertibles issued in the second half of 2021 that would convert in 2024.
This table is not intended to represent a forward-looking projection of 2021 - 2023 earnings guidance.
Allowed Return / Equity Ratio
2020 Ongoing Earnings Guidance Midpoint
2021 Earnings Potential
2022 Earnings Potential
2023 Earnings Potential
Avg Rate Base Return EPS
Avg Rate Base EPS
Avg Rate Base EPS
Avg Rate Base EPS
PNM Retail(1) 9.575% / 50% $2.5 B 9.5% $1.47 $2.5 B $1.41 $2.4 B $1.37 $2.4 B $1.38
San JuanReplacement(2)
9.575% / 50% $150 M $0.08 $280 M $0.16
PNM Renewables(3) 9.575% / 50% $150 M 9.575% $0.09 $145 M $0.08 $140 M $0.08 $130 M $0.06
PNM FERC(4) 10% / ~50% $340 M 7.5% $0.15 $530 M $0.25-$0.28 $740 M $0.35-$0.39 $780 M $0.36-$0.41Items not in Rates(5) ($0.01) ($0.03)-($0.01) ($0.03)-($0.01) ($0.03)-($0.01)
Total PNM $3.0 B $1.70 $3.2 B $1.71-$1.76 $3.5 B $1.85-$1.91 $3.6 B $1.93-$2.00
TNMP(6) 9.65% / 45% $1.3 B 9.65% $0.73 $1.5 B $0.79 $1.6 B $0.83 $1.9 B $0.95
Corporate/Other(7) ($0.22) ($0.13)-($0.11) ($0.11)-($0.09) ($0.15)-($0.13)Equity Financing Plans(8) ($0.06)-($0.01) ($0.11)-($0.09) ($0.11)-($0.09)Total PNM Resources $4.3 B $2.21 $4.7 B $2.31 - $2.43 $5.1 B $2.46 - $2.56 $5.6 B $2.62 - $2.73
Earnings Growth Target 5-6%
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Selected Balance Sheet Information
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(1) Net of unamortized debt issuance costs, premiums and discounts(2) Excludes intercompany debt
Amounts may not add due to rounding
(In millions) Dec 31, 2019 Mar 31, 2020
Long-Term Debt (incl. current portion) (1)
PNM $1,748.0 $1,748.4
TNMP 670.7 670.6
Corporate/Other 589.0 589.2
Consolidated $3,007.7 $3,008.3
Total Debt (incl. short-term) (1,2)
PNM $1,806.0 $1,808.4
TNMP 685.7 740.6
Corporate/Other 701.1 759.8
Consolidated $3,192.8 $3,308.9
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Credit Ratings
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PNMR Consolidated S&P Moody’s
Issuer rating BBB Baa3
Outlook Stable Stable
Senior unsecured rating BBB- Baa3
PNM S&P Moody’s
Issuer rating BBB Baa2
Outlook Stable Stable
Senior unsecured rating BBB Baa2
TNMP S&P Moody’s
Issuer rating BBB+ A3
Issuer outlook Stable Stable
Senior secured rating A A1
Slide Number 1Safe Harbor StatementSlide Number 3Opening RemarksRegulatory StrategiesExecuting Strategic PlansSlide Number 7COVID-19 Scenario AnalysisCOVID-19 Financial Considerations: Continued TransparencyBusiness Fundamentals Remain Intact Amidst COVID-19Liquidity / FinancingsCOVID-19 Financial Considerations and UpdatesSlide Number 13Ongoing Earnings Guidance Affirmed Based on COVID-19 Stage 1COVID-19 Load Impacts: Updated AssumptionsPNM / New Mexico COVID-19 UpdateTNMP / Texas COVID-19 Update TNMP Regional BreakdownTNMP Regional BreakdownTNMP Regional BreakdownBad Debt ConsiderationsPNM Decoupling FilingSlide Number 23Slide Number 24PNM and TNMP Regulatory AgendaCOVID-19 Load: Assumptions and EPS Rules of ThumbTNMP Low-Risk Revenue Profile2020 Consolidated Ongoing Earnings GuidanceSlide Number 29Q1 2020 Ongoing EPS Financial SummaryQ1 2020 vs Q1 2019 EPS (Ongoing): PNM Q1 2020 vs Q1 2019 EPS (Ongoing): TNMP and CorporateWeather ImpactPNM Scheduled Plant Outages2020 – 2023 Investment Plan2020 - 2023 Potential Earnings PowerSelected Balance Sheet InformationCredit Ratings