Business Context and Reporting Period
This Form 8-K, filed on September 25, 2006, reports select comparative operating statistics for PNM Resources, Inc. (PNMR) and its subsidiaries for the month and eight months ended August 31, 2006. The registrants include PNM Resources, Inc., Public Service Company of New Mexico (PNM), and Texas-New Mexico Power Company (TNMP). The company operates regulated utilities in New Mexico and Texas, along with unregulated retail and wholesale power operations.
Key Financial and Operating Metrics
The filing provides operating statistics in Megawatt-hours (MWh) rather than financial revenue or profit figures. Data is presented in thousands of MWh.
| Category | Month Ended Aug 31, 2006 | Month Ended Aug 31, 2005 | 8 Months Ended Aug 31, 2006 | 8 Months Ended Aug 31, 2005 |
|---|---|---|---|---|
| Total Regulated Sales | 1,565 | 1,511 | 10,541 | 10,179 |
| Total Unregulated Sales | 1,495 | 1,438 | 10,417 | 10,146 |
| Regulated: PNM Electric | 759 | 760 | 5,384 | 5,170 |
| Regulated: TNMP Electric | 806 | 751 | 5,157 | 5,009 |
| Unregulated: Wholesale Long Term | 450 | 222 | 2,607 | 1,738 |
| Unregulated: Wholesale Short Term | 553 | 769 | 4,985 | 5,564 |
| Unregulated: First Choice | 492 | 447 | 2,825 | 2,844 |
Weather Data (Cycle-Weighted):
- PNM (Albuquerque): August 2006 Cooling Degree Days (CDD) were 364 vs. 454 in 2005. Eight-month CDD were 1,132 vs. 1,108 in 2005.
- TNMP (Texas/NM): August 2006 CDD were 642 vs. 618 in 2005. Eight-month CDD were 2,203 vs. 1,962 in 2005.
- First Choice (Texas): August 2006 CDD were 662 vs. 629 in 2005. Eight-month CDD were 2,281 vs. 2,011 in 2005.
The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Adjustments
- Acquisition Impact: The eight-month 2005 data includes pre-acquisition data for TNMP and First Choice, which were acquired on June 6, 2005. Altura Power's acquisition of the Twin Oaks plant (305 MW) on April 18, 2006, contributed to Wholesale Long Term sales in 2006 (206 MWh for the month; 927 MWh for eight months), with no comparable 2005 data.
- Data Correction: Energy sales reported for January through July 2006 previously included an error of 175 MWh for manually billed customers. The eight-month 2006 total reflects a correcting reduction of 175 MWh.
- Volume Trends: Total regulated sales increased by 3.6% for the eight-month period compared to 2005. Total unregulated sales increased by 2.7% for the same period.
Guidance, Outlook, and Risks
This filing is a Regulation FD disclosure intended to provide key monthly business indicators. It does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors. The document explicitly directs readers to the Company's Form 10-K and Form 10-Q for discussions on actual results of operations, significant trends, and financial condition.
Investor Verification Checklist
- Verify the impact of the 175 MWh data correction on prior quarterly earnings reports.
- Review Form 10-Q for the quarter ended June 30, 2006, to understand the financial contribution of the newly acquired Twin Oaks plant.
- Compare the reported MWh volumes against the reported revenue in the latest 10-Q to assess average price per MWh trends.
- Confirm the weather normalization adjustments applied to the reported Cooling Degree Days (CDD) to understand the variance in demand.