-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DwZdMc3KmZzcNYLVIPlzfqBsTVqeqjy9ME85iMPRL1OUPU4QqFIqFtFM9o+XcRwH 6fsrfuYNZ7HmVQ/m8doN9w== 0001108426-06-000063.txt : 20060503 0001108426-06-000063.hdr.sgml : 20060503 20060502190850 ACCESSION NUMBER: 0001108426-06-000063 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060503 DATE AS OF CHANGE: 20060502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PNM RESOURCES INC CENTRAL INDEX KEY: 0001108426 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 850019030 STATE OF INCORPORATION: NM FISCAL YEAR END: 0214 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32462 FILM NUMBER: 06801132 BUSINESS ADDRESS: STREET 1: ALVARADO SQUARE STREET 2: NEW MEXICO CITY: ALBUQUERQUE STATE: NM ZIP: 87158 BUSINESS PHONE: 5052412700 MAIL ADDRESS: STREET 1: ALVARADO SQUARE CITY: ALBUQUERQUE STATE: NM ZIP: 87158 FORMER COMPANY: FORMER CONFORMED NAME: MANZANO CORP DATE OF NAME CHANGE: 20000303 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEXAS NEW MEXICO POWER CO CENTRAL INDEX KEY: 0000022767 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 750204070 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 002-97230 FILM NUMBER: 06801133 BUSINESS ADDRESS: STREET 1: 4100 INTERNATIONAL PLZ STREET 2: PO BOX 2943 CITY: FORT WORTH STATE: TX ZIP: 76113 BUSINESS PHONE: 8177310099 MAIL ADDRESS: STREET 1: 4100 INTERNATIONAL PLAZA STREET 2: PO BOX 2943 CITY: FORT WORTH STATE: TX ZIP: 76113 FORMER COMPANY: FORMER CONFORMED NAME: COMMUNITY PUBLIC SERVICE CO DATE OF NAME CHANGE: 19810617 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE CO OF NEW MEXICO CENTRAL INDEX KEY: 0000081023 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 850019030 STATE OF INCORPORATION: NM FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06986 FILM NUMBER: 06801134 BUSINESS ADDRESS: STREET 1: ALVARADO SQUARE, MS2706 CITY: ALBUQUERQUE STATE: NM ZIP: 87158 BUSINESS PHONE: 5058482700 8-K 1 f8k_050206pnmr.htm FORM 8-K 2006 1ST QTR. EARNINGS Form 8-K 2006 1st Qtr. Earnings
 


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
CURRENT REPORT
 
 
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
 
Date of Report (Date of earliest event reported)
    May 2, 2006
 
 
   (May 2, 2006)
 
 
Commission
 
Name of Registrants, State of Incorporation,
 
I.R.S. Employer
File Number
 
Address and Telephone Number
 
Identification No.
         
001-32462
 
PNM Resources, Inc.
 
85-0468296
   
(A New Mexico Corporation)
   
   
Alvarado Square
   
   
Albuquerque, New Mexico 87158
   
   
(505) 241-2700
   
         
001-06986
 
Public Service Company of New Mexico
 
85-0019030
   
(A New Mexico Corporation)
   
   
Alvarado Square
   
   
Albuquerque, New Mexico 87158
   
   
(505) 241-2700
   
         
002-97230
 
Texas-New Mexico Power Company
 
75-0204070
   
(A Texas Corporation)
   
   
4100 International Plaza,
   
   
P.O. Box 2943
   
   
Fort Worth, Texas 76113
   
   
(817) 731-0099
   
______________________________
 
(Former name, former address and former fiscal year, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
[]
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c)
 


Item 2.02 Results of Operations and Financial Condition.

On May 2, 2006, PNM Resources, Inc. (the “Company”) issued a press release announcing its preliminary unaudited results of operations for the three months ended March 31, 2006. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.

The Company’s press release and other communications from time to time may include certain non-Generally Accepted Accounting Principles ("GAAP") financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income, other income and deductions, net income, earnings per share and other GAAP measures of operating performance that exclude or include the effect of litigation settlements, accounting or regulatory changes, the restructuring of selected operations, certain merger activities and other similar events. The Company’s management believes these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company’s operations. Management also believes that the presentation of the non-GAAP financial measure is consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures presented in prior periods. The non-GAAP financial measures used by the Company should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Also, in providing ongoing earnings guidance, there could be differences between ongoing earnings and GAAP earnings for matters such as, but not limited to, acquisition integration costs. Company management is generally not able to estimate the impact, if any, on GAAP earnings of such items. Therefore, the Company is not generally not able to provide a corresponding GAAP equivalent for earnings guidance.

Limitation on Incorporation by Reference

In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.


2



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number Description

 
99.1
Press Release dated May 2, 2006, and PNM Resources, Inc. and Subsidiaries Preliminary Unaudited Condensed Consolidated Statements of Earnings for the three months ended March 31, 2006 and 2005, and other preliminary financial information.


3


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

 
PNM RESOURCES, INC.
 
PUBLIC SERVICE COMPANY OF NEW MEXICO
 
TEXAS-NEW MEXICO POWER COMPANY
 
(Registrants)
   
   
Date: May 2, 2006
/s/ Thomas G. Sategna
 
Thomas G. Sategna
 
Vice President and Corporate Controller
 
(Officer duly authorized to sign this report)

 
4
EX-99.1 2 exh991_050206.htm EXHIBIT 99.1 Exhibit 99.1
 


EXHIBIT 99.1

PNM Resources Reports 2006 First Quarter Earnings
Palo Verde outage reduces margins
Earnings guidance reaffirmed
 
1st QUARTER HIGHLIGHTS
·  
GAAP (generally accepted accounting principles) reported earnings of $0.38 per diluted share for the first quarter of 2006.
·  
Ongoing earnings of $0.39 per diluted share.
·  
Strong PNM Electric load growth of 4.1 percent.
·  
Wholesale activity softens impact of Palo Verde Unit 1 outage.
·  
Lower customer natural gas usage reduces margin.

(ALBUQUERQUE, N.M.) - PNM Resources (NYSE: PNM) today reported unaudited first quarter 2006 consolidated ongoing earnings per diluted share of $0.39, compared with $0.50 in 2005. Ongoing earnings exclude acquisition-related charges. The company also reported unaudited 2006 consolidated GAAP earnings per diluted share of $0.38, compared with $0.50 in 2005.

Net earnings available for common stock decreased 13.7 percent to $26.3 million during the quarter, compared with the same period in 2005.

Customers reduced natural gas consumption by nearly 10.0 percent, lowering consolidated margins for the quarter. While the extended outage of Unit 1 at the Palo Verde Nuclear Generating Station also reduced consolidated margins, the plant’s other two units and the company’s coal-fired facilities had strong performance during the quarter.
 
“Despite the extended outage at Palo Verde Unit 1, forward sales entered into last year and strong performance at other units partially offset the impact,” said Jeff Sterba, PNM Resources chairman, president and CEO. “We will continue our efforts to alleviate the impact of the Unit 1 extended outage through the second quarter and we look forward to all three Palo Verde units returning to their historically high performance.”
 
RECONCILIATION OF GAAP-REPORTED EARNINGS TO ONGOING EARNINGS PER SHARE
 
   
Quarter Ended March 31,
   
2006
 
2005
   
Earnings
Diluted
 
Earnings
Diluted
   
(in 000s)
 
EPS
 
(in 000s)
 
EPS
Net Earnings Available to Common Shareholders
 
$26,325
 
$0.38
 
$30,509
 
$0.50
                 
Adjustments for TNP Acquisition-Related
               
Charges (net of income tax effects):
             
TNP Acquisition Integration Costs
 
569
 
0.01
 
 
   
Total Adjustments
 
569
 
0.01
 
 
 
 
                 
Net Ongoing Earnings Available
to Common Shareholders
 
$26,894
 
$ 0.39
 
$30,509
 
$ 0.50
                 
Avg. Diluted Shares - GAAP Earnings
     
69,375
     
61,509
Avg. Diluted Shares - Ongoing Earnings (a)
     
69,375
     
61,423
 
 
(a) Diluted shares used to calculate ongoing earnings per share assume that 3,910,000 shares of PNM Resources common stock issued in March 2005 for TNP acquisition financing instead were issued June 6, 2005, the closing date of the TNP acquisition.
 
1


FIRST QUARTER 2006 PERFORMANCE SUMMARY

Load growth of 4.1 percent in PNM electric’s service territory contributed $4.0 million to gross margin, but was partially offset by the 2.5 percent electric rate decrease that went into effect in September 2005 - the last rate reduction agreed to in the Global Settlement - and reduced margin by $3.5 million for the quarter.

Forward sales entered into last year, coupled with reduced market prices in the first quarter of 2006, allowed the company to remarket power and enhance wholesale revenues and gross margin.

Strong plant performance at coal facilities and at Palo Verde units 2 and 3, along with improved PNM Wholesale short-term sales resulting from the remarketing of power during the quarter, reduced the impact of the extended outage of Palo Verde Unit 1.

The San Juan plant had a strong quarter with an equivalent availability factor of 90.4 percent. Units 4 and 5 at Four Corners also experienced strong performance with a combined equivalent availability factor of 91.6 percent. Units 2 and 3 at Palo Verde had superior performance with equivalent availability factors of 99.3 percent and 95.3 percent, respectively.

The Palo Verde Unit 1 outage reduced consolidated gross margin by $9.9 million - $2.9 million for PNM Electric margin and $7.0 million for PNM Wholesale margin.
 
Because of traditionally low customer electric usage during the first quarter, Texas-New Mexico Power and First Choice Power provided modest contributions to earnings during the period. Debt associated with the acquisition of TNMP and First Choice Power increased interest expense by $7.0 million and decreased earnings per share by $0.06 for the quarter. Equity that was issued diluted earnings per share by $0.06. The acquisition, however, remains on track to be more than 10 percent accretive to consolidated earnings per share and 20 percent accretive to free cash flow.  

FIRST QUARTER 2006 SEGMENT REPORTING
 
Regulated Operations
 
PNM - a natural gas and vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
 
Electric:
 
·  
PNM Electric operations reported revenues of $138.8 million, a 3.4 percent increase over the same period in 2005.
 
·  
Gross margin decreased $2.4 million, mainly due to the extended Palo Verde Unit 1 outage and the September 2005 rate decrease. Strong load growth of 4.1 percent partially offset the decrease.
 
Gas:
 
·  
Higher natural gas prices pushed PNM Gas operating revenues to $207.5 million, an increase of 25.6 percent quarter-over-quarter.
 
·  
Gross margin decreased $1.0 million - or 2.0 percent - to $49.8 million.
 
·  
Customers lowered natural gas usage by nearly 10.0 percent; reduced usage per customer decreased margin by $4.0 million. Customer growth of 2.2 percent partially offset lower usage, increasing margin by $2.6 million.
 
TNMP Electric - a vertically integrated electric utility in New Mexico and a transmission-distribution company in Texas.
 
·  
TNMP Electric reported operating revenues of $62.7 million, a 4.9 percent decrease compared with the same pre-acquisition period in 2005.
 
·  
Quarter-over-quarter, gross margin decreased 8.4 percent to $35.5 million, mainly due to rate reductions and synergy savings givebacks in Texas and New Mexico.
 
2

 
Unregulated Operations
 
PNM Wholesale - a business segment of PNM consisting of the generation and sale of electricity into the wholesale markets.
 
·  
Operating revenues increased 36.0 percent to $179.5 million. Gross margin increased $2.9 million to $31.4 million - or 10.0 percent.
 
·  
Forward sales made in September 2005 enhanced wholesale revenues and gross margin.
 
First Choice Power - a competitive retail electric provider in Texas.
 
·  
First Choice Power reported operating revenues of $105.1 million, a 7.3 percent increase compared with the same pre-acquisition period in 2005.
 
·  
Increased margins were offset by higher bad debt expenses primarily due to state regulatory moratoriums that impacted the collection of outstanding customer payments.
 
2006 EARNINGS GUIDANCE

PNM Resources today reaffirmed its earlier 2006 earnings guidance. The company estimates ongoing earnings, excluding acquisition-related and other non-recurring charges, will range between $1.65 and $1.90. Based on the current schedule for the extended Palo Verde Unit 1 outage, it is expected that the facility will operate at approximately the same equivalent availability factor as last year, which, as previously indicated, would place 2006 earnings at the lower end of the range.

Earnings variability within the expected range will be affected by a number of factors, including:
·  
Power plant performance.
·  
Twin Oaks earnings accretion.
·  
Natural gas prices and wholesale electricity prices.
·  
Customer growth and retention.
·  
First Choice Power price-to-beat rate reset
·  
Weather

FIRST QUARTER EARNINGS CALL
 
PNM Resources will conduct its first quarter 2006 earnings conference call on Wednesday, May 3, at 9 a.m. Eastern.
 
Analysts in the United States call:
(866) 713-8564
Analysts outside the United States call:
(617) 597-5312
Pass code:
71305424
 
Participating analysts should dial in after 8:45 a.m. Eastern. The call will be broadcast live and the presentation available at PNMResources.com. A transcript of the call also will be on the Web site as soon as possible.

A replay will be available through May 10, 2006:
 
Analysts in the United States call:
(888) 286-8010
Analysts outside the United States call:
(617) 801-6888
Pass code:
58638701
 
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with consolidated operating revenues of $2.1 billion. Through its utility and energy service subsidiaries, PNM Resources supplies electricity to 748,500 homes and businesses in New Mexico and Texas and natural gas to 480,500 customers in New Mexico. Its utility subsidiaries are PNM and Texas-New Mexico Power. Other subsidiaries include First Choice
 
3

Power, a deregulated competitive retail electric provider in Texas, and Avistar, an energy research and development company. The company has generation resources of approximately 2,840 megawatts and sells power on the wholesale market throughout the Southwest. For more information, visit PNMResources.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 
 
Statements made in this release that relate to future events or the Company's expectations, projections, estimates, intentions, goals, targets and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. You are cautioned that all forward-looking statements are based upon current expectations and estimates and 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 you 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. These factors include the potential unavailability of cash from TNP Enterprises, Inc. and its subsidiaries, the risk that TNP Enterprises and its subsidiaries will not be integrated successfully into the Company, the risk that the benefits of the acquisition of TNP Enterprises and its subsidiaries will not be fully realized or will take longer to realize than expected, disruption from the acquisition of TNP Enterprises and its subsidiaries making it more difficult to maintain relationships with customers, employees, suppliers or other third parties, the outcome of any appeals of the Public Utility Commission of Texas order in the stranded cost true-up proceeding, the ability of First Choice Power to attract and retain customers, changes in Electric Reliability Council of Texas protocols, changes in the cost of power acquired by First Choice Power, collections experience, insurance coverage available for claims made in litigation, fluctuations in interest rates, conditions in the financial markets affecting the Company's permanent financing for the Twin Oaks power plant acquisition, weather, including impacts on the Company of the hurricanes in the Gulf Coast region, water supply, changes in fuel costs, availability of fuel supplies, the effectiveness of risk management and commodity risk transactions, seasonality and other changes in supply and demand in the market for electric power, variability of wholesale power prices and natural gas prices, volatility and liquidity in the wholesale power markets and the natural gas markets, changes in the competitive environment in the electric and natural gas industries, the performance of generating units, including PVNGS, and transmission systems, the market for electrical generating equipment, the ability to secure long-term power sales, the risks associated with completion of the construction of generation, transmission, distribution and other projects, including construction delays and unanticipated cost overruns, state and federal regulatory and legislative decisions and actions, the outcome of legal proceedings, changes in applicable accounting principles and the performance of state, regional and national economies. For a detailed discussion of the important factors that affect the Company and that could cause actual results to differ from those expressed or implied by the Company's forward-looking statements, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's current and future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and the Company's current and future Current Reports on Form 8-K, filed with the SEC.
 

4

 

PNM RESOURCES, INC. AND SUBSIDIARIES
 
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
 
(Unaudited)
 
   
Three Months Ended March 31,
 
   
2006
 
2005
 
   
(In thousands,
except per share amounts)
 
Operating Revenues:
         
Electric
 
$
448,216
 
$
262,443
 
Gas
   
207,476
   
165,233
 
Other
   
109
   
237
 
Total operating revenues
   
655,801
   
427,913
 
               
Operating Expenses:
             
Cost of energy sold
   
425,972
   
247,478
 
Administrative and general
   
65,305
   
41,309
 
Energy production costs
   
37,587
   
36,033
 
Depreciation and amortization
   
34,330
   
28,827
 
Transmission and distribution costs
   
19,050
   
14,062
 
Taxes, other than income taxes
   
16,964
   
8,871
 
Income taxes
   
10,247
   
13,391
 
Total operating expenses
   
609,455
   
389,971
 
Operating income
   
46,346
   
37,942
 
               
Other Income and Deductions:
             
Interest income
   
10,151
   
9,770
 
Other income
   
3,167
   
3,240
 
Carrying charges on regulatory assets
   
1,973
   
-
 
Other deductions
   
(1,516
)
 
(2,136
)
Other income taxes
   
(5,101
)
 
(3,884
)
Net other income and deductions
   
8,674
   
6,990
 
               
Interest Charges
   
28,563
   
14,291
 
               
Preferred Stock Dividend Requirements
   
132
   
132
 
               
Net Earnings
 
$
26,325
 
$
30,509
 
               
Net Earnings per Common Share
             
Basic
 
$
0.38
 
$
0.50
 
               
Diluted
 
$
0.38
 
$
0.50
 
               
Dividends Declared per Common Share
 
$
0.220
 
$
0.185
 


 
5

PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY COMPARATIVE OPERATING STATISTICS


The following table shows PNM Electric revenues by customer class and average customers:

PNM Electric Revenues

   
Three Months Ended
     
   
March 31,
     
   
2006
 
2005
 
Variance
 
   
(In thousands, except customers)
 
Residential
 
$
55,328
 
$
54,014
 
$
1,314
 
Commercial
   
57,079
   
56,166
   
913
 
Industrial
   
14,741
   
15,203
   
(462
)
Transmission
   
7,045
   
4,464
   
2,581
 
Other
   
4,585
   
4,335
   
250
 
Total
 
$
138,778
 
$
134,182
 
$
4,596
 
                     
Average customers
   
425,919
   
413,825
   
12,094
 

Company management has combined two segments previously reported separately, Transmission and Electric, to form one reportable segment, PNM Electric. The prior year amounts have been reclassified to reflect this change for comparison purposes. The average customers amounts reflect traditional electric customers only and do not include transmission customers.

The following table shows PNM Electric sales by customer class:

PNM Electric Sales

   
Three Months Ended
     
   
March 31,
     
   
2006
 
2005
 
Variance
 
   
(Megawatt hours)
 
Residential
   
688,472
   
654,093
   
34,379
 
Commercial
   
803,700
   
767,376
   
36,324
 
Industrial
   
314,008
   
315,816
   
(1,808
)
Other
   
54,863
   
51,869
   
2,994
 
Total
   
1,861,043
   
1,789,154
   
71,889
 

The megawatt hours shown above reflect traditional electric revenues only; transmission does not have associated megawatt hours in a comparable fashion.



 
6

PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY COMPARATIVE OPERATING STATISTICS


The following table shows TNMP Electric revenues by customer class and average customers:

TNMP Electric Revenues

   
Three Months Ended
     
   
March 31,
     
   
Post-
 
Pre-
     
   
Acquisition
 
Acquisition
     
   
2006
 
2005
 
Variance
 
   
(In thousands, except customers)
 
    Residential
 
$
19,280
 
$
20,823
 
$
(1,543
)
    Commercial
   
20,846
   
21,188
   
(342
)
Industrial
   
13,064
   
14,521
   
(1,457
)
Other
   
9,495
   
9,349
   
146
 
Total
 
$
62,685
 
$
65,881
 
$
(3,196
)
                     
Average customers (1)
   
260,936
   
256,283
   
4,653
 


The following table shows TNMP Electric sales by customer class:

TNMP Electric Sales

   
Three Months Ended
     
   
March 31,
     
   
Post-
 
Pre-
     
   
Acquisition
 
Acquisition
     
   
2006
 
2005
 
Variance
 
   
(Megawatt hours)
 
Residential
   
528,346
   
547,102
   
(18,756
)
Commercial
   
495,057
   
455,981
   
39,076
 
Industrial
   
541,119
   
585,216
   
(44,097
)
Other
   
28,959
   
29,178
   
(219
)
Total (1)
   
1,593,481
   
1,617,477
   
(23,996
)

(1)  
Under the Texas Electric Choice Act, customers of TNMP in Texas have the ability to choose First Choice or any other Retail Electric Provider (“REP”) to provide energy; however, TNMP delivers energy to customers within TNMP's service area regardless of the REP chosen. Therefore TNMP earns revenue for that delivery and First Choice earns revenue on the usage of that energy by its customers. The average customers reported above include 149,014 and 160,737 customers of TNMP at March 31, 2006 and 2005, respectively, who have chosen First Choice as their REP. The megawatt hours reported include 474,841 and 529,640 megawatt hours used by customers of TNMP during the three months ended March 31, 2006 and 2005, respectively, who have chosen First Choice as their REP. These customers and megawatt hours are also included below in the First Choice segment. For PNMR consolidated reporting purposes, these are included only once in the consolidated amounts.


 
7

PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY COMPARATIVE OPERATING STATISTICS


The following table shows PNM Gas revenues by customer and average customers:

PNM Gas Revenues

   
Three Months Ended
     
   
March 31,
     
   
2006
 
2005
 
Variance
 
   
(In thousands, except customers)
 
Residential
 
$
141,637
 
$
108,269
 
$
33,368
 
Commercial
   
44,021
   
31,931
   
12,090
 
Industrial
   
737
   
643
   
94
 
Transportation*
   
4,659
   
3,988
   
671
 
Other 
   
16,471
   
20,455
   
(3,984
)
Total
 
$
207,525
 
$
165,286
 
$
42,239
 
                     
Average customers
   
480,655
   
470,336
   
10,319
 

*Customer-owned gas.

The following table shows PNM Gas throughput by customer class:

PNM Gas Throughput

   
Three Months Ended
     
   
March 31,
     
   
2006
 
2005
 
Variance
 
   
(Thousands of decatherms)
 
Residential
   
11,962
   
12,758
   
(796
)
Commercial
   
4,166
   
4,309
   
(143
)
Industrial
   
72
   
85
   
(13
)
Transportation*
   
11,031
   
8,150
   
2,881
 
Other
   
1,566
   
2,791
   
(1,225
)
Total
   
28,797
   
28,093
   
704
 

*Customer-owned gas.

 
8

PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY COMPARATIVE OPERATING STATISTICS

The following table shows PNM Wholesale revenues by customer class:

PNM Wholesale Revenues

   
Three Months Ended
     
   
March 31,
     
   
2006
 
2005
 
Variance
 
   
(In thousands)
 
Long-term contracts
 
$
31,234
 
$
37,475
 
$
(6,241
)
Short-term sales
   
148,254
   
94,529
   
53,725
 
Total
 
$
179,488
 
$
132,004
 
$
47,484
 

The following table shows PNM Wholesale sales by customer class:

PNM Wholesale Sales

   
Three Months Ended
     
   
March 31,
     
   
2006
 
2005
 
Variance
 
   
(Megawatt hours)
 
Long-term contracts
   
578,544
   
725,403
   
(146,859
)
Short-term sales
   
2,220,752
   
2,125,023
   
95,729
 
Total
   
2,799,296
   
2,850,426
   
(51,130
)

Note: For comparative purposes, wholesale revenues for the three months ended March 31, 2006 and 2005 have not been reclassified to a net margin basis in accordance with GAAP. The impact would be to reduce first quarter 2006 and 2005 short-term sales revenues by $4.7 million and $2.1 million, respectively.


 
9

PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY COMPARATIVE OPERATING STATISTICS


The following table shows First Choice revenues by customer class and average customers:

First Choice Revenues

   
Three Months Ended
     
   
March 31,
     
   
Post-
 
Pre-
     
   
Acquisition
 
Acquisition
     
   
2006
 
2005
 
Variance
 
   
(In thousands, except customers)
 
    Residential
 
$
59,601
 
$
54,875
 
$
4,726
 
Mass-Market
   
18,941
   
14,720
   
4,221
 
Mid-Market
   
19,447
   
24,262
   
(4,815
)
Other
   
7,093
   
4,114
   
2,979
 
Total
 
$
105,082
 
$
97,971
 
$
7,111
 
                     
Average customers (1)
   
209,338
   
217,651
   
(8,313
)


The following table shows First Choice sales by customer class:

First Choice Sales

   
Three Months Ended
     
   
March 31,
     
   
Post-
 
Pre-
     
   
Acquisition
 
Acquisition
     
   
2006
 
2005
 
Variance
 
   
(Megawatt hours)
 
    Residential
   
427,544
   
480,776
   
(53,232
)
    Mass-Market
   
121,770
   
97,685
   
24,085
 
Mid-Market
   
177,643
   
288,631
   
(110,988
)
Other
   
12,262
   
12,498
   
(236
)
Total (1)
   
739,219
   
879,590
   
(140,371
)

(1)  
See note above in the TNMP Electric segment discussion.

10
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