Most glowing lights in New Mexico are lit by PNM Resources. The company's primary utility Public Service Company of New Mexico (PNM Electric) distributes power to more than 503,100 residential, commercial, and industrial customers in the state. PNM Resources has (or purchases power from) plants with more than 2,630 MW of generating capacity and markets energy to wholesale customers in the western US. Its Texas-New Mexico Power Company (TNMP) unit provides transmission and distribution services at regulated rates to about retail electricity providers that, in turn, provide retail electric service to 230,340 end users.
PNM Resources has an unregulated power plant joint venture, (formerly known as EnergyCo) with its largest shareholder, Cascade Investment LLC, to serve markets in the southwestern and western US. EnergyCo was renamed Optim Energy in 2009. However, difficult economic conditions in 2009 and 2010 limited this unit's operations.
In a move to grow its energy services business, in 2008 the company agreed to acquire Continental Energy Systems' regulated Texas electric delivery business for $202.5 million. Later in the year however, PNM Resources terminated the deal, citing a priority on building up its capital base in a tough economic downturn.
In 2009 the company sold its natural gas operations (PNM Gas, which distributed natural gas to more than 480,000 customers) to a subsidiary of Continental for $640 million. The move allowed PNM Resources to pay down debt and to focus on investing in its core businesses.
Despite a down economy as the result of the global recession, and weaker revenues in 2009, lower energy costs and the strong performance of the company's First Choice unit (which grew its customer base) help to lift PNM Resources' income for the year.
A rate increase helped to lift revenues slightly in 2010 (although the company is seeking further rate increases and the streamlining of its regulated operations to boost future growth). A $188.7 million pre-tax loss by Optim Energy dragged down the company's results, contributing to a PNM Resources net loss for the year.
In late 2011 in an effort to return to its core business plan as an electric utility, the company sold subsidiary First Choice Power to Houston-based Direct Energy for $270 million. PNM Resources also plans to reduce its position in Optim Energy that would remove the company from business operations in Texas.
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