Texas Utility TNMP Seeks Rate Hike After $2.8B System Expansion

TNMP, the wholly-owned subsidiary of TXNM Energy (NYSE:TXNM) in Texas, filed its anticipated base rate review on Friday.

 

The filing reflects significant growth of TNMP's system over the last 7 years since the previous base rate filing.

TNMP requests recovery of $2.8 billion of rate base as of June 30, 2025, a requested return on equity of 10.4% and a 47.54% equity ratio. Current rates are based on rate base of $835 million, an allowed return on equity of 9.65% and a 45% equity ratio.

The request also incorporates increased operations and maintenance costs, which are not recovered through semi-annual Transmission Cost of Service (TCOS) and Distribution Cost Recovery Factor (DCRF) filings, changes in deferred federal income tax amortizations and updates to depreciation rates.

The request is adjusted to exclude increases in interest expense resulting from the refinancing of debt associated with the proposed acquisition of TNMP's parent company, TXNM Energy.

Schedule 1 below summarizes the key components of the rate filing.

In addition, TNMP is requesting $20.5 million in rate rider recovery associated with Hurricane Beryl restoration costs. The proposed rider would be recovered over a five-year period and is separate from the base rate request.

If approved by the Public Utility Commission of Texas, new rates are expected to become effective in mid-2026.