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 residential, commercial, and industrial customers in the state. PNM Resources has (or purchases power from) plants with 2,707 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 retail electricity providers. PNM Resources' two regulated utilities serve 753,000 residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas.
The PNM Electric utility provides electric generation, transmission, and distribution service to its rate-regulated customers. In New Mexico, the utility's retail electric service territory covers a large area of north central New Mexico, including the cities of Albuquerque, Rio Rancho, and Santa Fe, and certain areas of southern New Mexico. PNM Electric also provides electricity to firm-requirements wholesale customers in New Mexico and Arizona.
Other services include transmission services to third parties and the generation and sale of electricity into the wholesale market. The largest retail electric customer served by PNM Electric accounted for 3.4% of the utility's revenues.
TNMP's provides transmission and distribution services to various REPs that, in turn, provide retail electric service to consumers within TNMP's service area. First Choice accounted for 15% of TNMP's revenues in 2014.
The company distributes electricity to homes and businesses in New Mexico and Texas.
In 2014, net sales increased by 3.5% due to higher market prices and increase in transmission rates.
Retail sales decline due to a sluggish economy in New Mexico, especially in the Albuquerque metropolitan area. PNM Electric also reported lower energy demand weather due to milder-than-usual weather.
TNMP reported higher residential, commercial, and industrial revenues,.
In 2014 PNM Resources' net income increased by 13% thanks to higher net revenues in all segments and a decrease in operating expenses.
In 2014 cash from operating activities increased by 7%, related to income tax refunds received. Contributions to the PNM Electric and TNMP pension and other postretirement benefit plans of $5.4 million compared to $66.5 million 2013 and contributed to operating cash flow changes. These increases were offset by refunds made to customers related to the settlement of PNM's transmission rate case in 2013 and governmental grants received by PNM Electric.
PNM Resources has refocused its efforts to improve the customer experience through an integrated marketing and communications that encompassed brand repositioning and advertising, and customer service improvements, including billing and payment options.
The company is committed to providing reliable, affordable, and environmentally responsible power to create enduring value for customers, communities, and stockholders. To accomplish this, PNM Resources works closely with customers, stakeholders, legislators, and regulators to ensure that resource plans and infrastructure investments benefit from robust public dialogue and balance the diverse needs of its communities.
In 2014, PNM Electric launched an updated website that provides an increase in self-service options for customers, as well as a mobile platform.
The company has returned to its core business model of being a pure-play electric utility in regulated markets by selling its non-regulated assets.
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
In late 2011 the company sold unregulated retail power subsidiary First Choice Power to Houston-based Direct Energy for $270 million.
PNM Resources also had an unregulated power plant joint venture, (Optim Energy, formerly known as EnergyCo) with its largest shareholder, Cascade Investment LLC, that served markets in the southwestern and western US. However, difficult economic conditions limited Optim Energy's operations and PNM Resources sold its 51% ownership in the unit to ECJV Holdings, LLC in 2011 and 2012.
In 2012 PNM Resources agreed to buy the Delta-Person Generating Station, located in southwest Albuquerque, giving PNM Resources the ability to control operating costs at the plant.