Regulatory and Rate Matters Regulatory and Rate Matters (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Energy/Capacity Transactions

Information about PNM’s purchases and sales is as follows:



	Sales			Purchases
	GWh	Amount		GWh	Amount
		(In millions)			(In millions)

Year ended December 31, 2017	827.1	$	23.6	849.0	$	24.2
Year ended December 31, 2016	482.3	12.8		484.6	12.9

Schedule of Rate Increases for Transmission Costs

TNMP can update its transmission rates twice per year to reflect changes in its invested capital although updates are not allowed while a general rate case is in progress. Updated rates reflect the addition and retirement of transmission facilities, including appropriate depreciation, federal income tax and other associated taxes, and the approved rate of return on such facilities. The following sets forth TNMP’s recent interim transmission cost rate increases:



Effective Date	Approved Increase in Rate Base		Annual Increase in Revenue
	(In millions)
March 16, 2015	$	27.1	$	4.4
September 10, 2015	7.0		1.4
March 23, 2016	25.8		4.3
September 8, 2016	9.5		1.8
March 14, 2017	30.2		4.8
September 13, 2017	27.5		4.7

TNMP recovers the costs of its energy efficiency programs through an energy efficiency cost recovery factor (“EECRF”), which includes projected program costs, under or over collected costs from prior years, rate case expenses, and performance bonuses (if the programs exceed mandated savings goals). The following sets forth TNMP’s EECRF increases:



Effective Date	Aggregate Collection Amount		Performance Bonus
	(In millions)
March 1, 2015	$	5.7	$	1.5
March 1, 2016	6.0		0.7
March 1, 2017	6.0		0.8
March 1, 2018	6.0		1.1