Business Context and Reporting Period
This Form 8-K is a current report filed on March 4, 2013, by PNM Resources, Inc. (PNMR), Public Service Company of New Mexico (PNM), and Texas-New Mexico Power Company (TNMP). The report discloses a change in the registrants' independent registered public accounting firm effective March 1, 2013.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly a disclosure regarding the appointment of a new auditor and the dismissal of the previous one.
Material Changes
- Dismissal of Prior Auditor: Deloitte & Touche LLP was dismissed as the independent registered public accounting firm for PNMR, PNM, and TNMP effective March 1, 2013.
- Engagement of New Auditor: KPMG LLP was engaged as the new independent registered public accounting firm for the fiscal year ending December 31, 2013, effective March 1, 2013.
- Audit History: Deloitte's reports for the fiscal years ended December 31, 2012, and 2011 contained no adverse opinions, disclaimers, or qualifications. There were no disagreements with Deloitte regarding accounting principles, practices, or audit scope during these periods.
Outlook, Risks, and Management Commentary
The engagement of KPMG LLP is subject to ratification by PNMR's common shareholders at the 2013 annual meeting. The registrants confirmed that no consultations were held with KPMG regarding accounting principles or audit opinions prior to the engagement. Deloitte was provided with a copy of the disclosures and submitted a letter (Exhibit 16) stating whether it agreed with the disclosures.
Investor Verification Checklist
- Verify the ratification of KPMG LLP at the upcoming 2013 annual meeting of shareholders.
- Review Exhibit 16 (Deloitte's letter) to confirm the prior auditor's agreement with the stated reasons for dismissal.
- Monitor future filings for the first audit report issued by KPMG LLP for the fiscal year ending December 31, 2013.