f8k_100108pnmr.htm
|
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)
|
October
1, 2008
|
|
|
|
(October 1,
2008)
|
|
|
|
|
Commission
|
|
Name
of Registrant, 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
|
|
|
|
|
|
|
|
|
|
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
7.01 Regulation FD Disclosure.
PNM
Resources (“PNMR”) has interests in three separate electricity services
companies in Texas that contribute to its consolidated earnings. As a result of
Hurricane Ike, which struck the Texas Gulf Coast on September 13, 2008, and
caused extensive damage to the city of Galveston and the surrounding
communities, PNMR expects lower-than-expected earnings contributions by these
three companies.
TNMP
Electric (“TNMP”), an indirect wholly owned subsidiary of PNMR, provides
regulated electric transmission and distribution services to several
small-to-medium-sized communities in three non-contiguous areas in Texas through
approximately 70 retail electricity providers (“REPs”). One portion of TNMP’s
territory includes the area along the Texas Gulf Coast between Houston and
Galveston.
The
strong Category 2 storm initially left nearly all of the 115,000 customers in
the TNMP service area in the Houston-Galveston corridor without power. Crews
have substantially completed restoring power to TNMP customers. Storm-related
outages lowered TNMP sales volumes and revenues. The result is an expected
decrease in margin ranging from $2.5 million to $3.5 million. In addition, TNMP
estimates power restoration costs to be in the range of $30 million to $35
million. As a provider of regulated transmission and distribution services under
the provisions of the Texas Electric Choice Act, TNMP expects to recover
prudently incurred storm-related restoration costs in accordance with applicable
regulatory and legal principles.
The
hurricane also had a negative impact on First Choice Power, L.P. (“FCP”), a REP
in Texas that is indirectly wholly owned by PNMR. FCP expects the impact of the
hurricane to reduce both 2008 earnings before income taxes and EBITDA by
approximately $10 million due to reduced sales volumes, the sale of excess power
at prices that were lower than purchased prices, and an increase in bad-debt
expense. As of September 30, approximately 10,000, or 4 percent, of FCP’s
customers still were without power.
The third
company in Texas is EnergyCo, LLC (“EnergyCo”), a generation and power and gas
marketing company co-owned by PNMR and a subsidiary of Cascade Investment,
L.L.C. EnergyCo operates two power plants in Texas: the coal-fired Twin Oaks
Power facility south of Dallas, which was unaffected by the storm, and the
Altura Cogen facility, a 614-megawatt natural gas plant located 15 miles east of
Houston in Channelview, Texas. EnergyCo also has a joint construction project to
expand the Cedar Bayou Generating Station near Baytown, Texas, to a fourth unit
(“Cedar Bayou IV”).
Altura
Cogen sustained minimal damage. The storm also caused minor damage
and flooding at Cedar Bayou IV, but did not threaten the project’s construction
schedule. Cedar Bayou IV remains on schedule to start operations in summer of
2009.
EnergyCo
estimates the hurricane’s impact on both 2008 earnings before income taxes and
EBITDA will be $5 million to $7 million because of lost power sales
opportunities. PNMR owns 50 percent of EnergyCo.
TNMP,
EnergyCo and FCP have sufficient liquidity from cash on hand and bank credit
facilities to address financial issues as a result of the
hurricane.
In
accordance with general instruction B.2 of Form 8-K, the information in this
report is furnished pursuant to Item 7.01 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.
Safe
Harbor Statement under the Private Securities Litigation Reform Act of
1995
Statements
made in this Form 8-K that relate to future events or expectations, projections,
estimates, intentions, goals, targets and strategies of PNMR or TNMP
(collectively, “Issuers”), are made pursuant to the Private Securities
Litigation Reform Act of 1995. Readers are cautioned that all
forward-looking statements are based upon current expectations and estimates and
Issuers assume no obligation to update this information. Because actual results
may differ materially from those expressed or implied by these forward-looking
statements, Issuers caution readers not to place undue reliance on these
statements. Issuers’ business, financial condition, cash flow and operating
results are influenced by many factors (which are often beyond their control)
that can cause actual results to differ from those expressed or implied by the
forward-looking statements. These factors include conditions affecting
Issuers’
ability to access the financial markets, including actions by ratings agencies
affecting the Issuers’ credit ratings, EnergyCo’s access to additional debt
financing following the utilization of its existing credit facility, state and
federal regulatory and legislative decisions and actions, including actions
relating to the recovery of hurricane restoration costs, the outcome of the
decision to pursue strategic alternatives for First Choice Power and of not
successfully implementing such alternatives, the performance of generating units
and transmission systems, the ability of First Choice Power to attract and
retain customers, the impacts on future operations due to reduced energy sales
as a result of the hurricane, changes in Electric Reliability Council of
Texas protocols, changes in the cost of power acquired by First
Choice Power, the outcome of any goodwill impairment analysis, collections
experience, insurance coverage available for claims made in litigation,
fluctuations in interest rates, weather, 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, uncertainty regarding the ongoing validity of
government programs for emission allowances, changes in the competitive
environment in the electric and natural gas industries, the ability to secure
long-term power sales, the outcome of legal proceedings, changes in applicable
accounting principles, and the performance of state, regional, and national
economies.
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.
|
|
|
TEXAS-NEW
MEXICO POWER COMPANY
|
|
|
(Registrants)
|
|
|
|
|
|
|
|
Date: October
1, 2008
|
/s/
Thomas G. Sategna
|
|
|
Thomas
G. Sategna
|
|
|
Vice
President and Corporate Controller
|
|
|
(Officer
duly authorized to sign this
report)
|