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As of May 29, 2026, Texas-New Mexico Power Company (TNMP) and

the listed parties filed a letter stating that they have  reached n unopposed stipulation and settlement agreement a settlement concerning the utility’s rate application.

 The letter states that “the filing is a comprehensive and unopposed Stipulation addressing all issues in this docket. TNMP is also contemporaneously filing the following: (1) Joint Motion to Admit Evidence and Remand Proceeding and (2) Settlement Testimony in Support of Stipulation of Stacy Whitehurst. addressing all issues in this docket. TNMP is also contemporaneously filing the following: (1) Joint Motion to Admit Evidence and Remand Proceeding and (2) Settlement Testimony in Support of Stipulation of Stacy Whitehurst.”

“Accordingly, the Signatories request: (a) approval of this Stipulation by the Commission and entry of an order (including findings of fact and conclusions of law) as set out in Attachment 1 hereto, and (b) approval of TNMP’ s proposed Tariff for Retail Delivery Service and Tariff for Transmission Service (hereinafter together, “Tariffs”)”

 Based upon the filed settlement, the following parties joined in this comprehensive and unopposed stipulation regarding all issues in this docket: TNMP, Staff of the Public Utility Commission of Texas (“Staff”), the Office of Public Utility Counsel, Cities Served by TNMP (“Cities”), Alliance of TNMP Municipalities (“ATM”), Texas Industrial Energy Consumers (“TIEC”), Texas Competitive Power Advocates (“TCPA”), Walmart Inc. (“Walmart”), Hunt Energy Network, L.L.C. (“HEN”), Data Center Coalition (“DCC”), and Joint Data Center Group (“JDCG”)(hereinafter collectively referred to as “Signatories”), Texas Energy Association for Marketers (“TEAM”) and Amazon Data Services, Inc. (“ADS”).

Among other things the settlement reflects the following:

 Base-Rate Revenue Changes: The Signatories agree to set TNMP’s base-rate revenue requirement at $677.2 million, which equals an increase in total electric delivery revenues of approximately 1% and is approximately $28.9 million less than TNMP’s request as modified by its errata filed on February 4,2026.

Financial Matters: TNMP’s Weighted Average Cost of Capital (“WACC”) shall be 7.40% based upon a 5.56% Cost of Debt, an authorized Return on Equity (“ROE”) of 9.65%, and an authorized regulatory capital structure of 55% long-term debt and 45% equity.

Tariff Language, Cost Allocation and Rate Design:

The Signatories agree that the rate design and tariff language in TNMP’ s current approved Tariffs will be revised to incorporate the revised rates described in section A above and the following changes:

1. The addition of the rate case expense surcharge described above to TNMP’ s Tariff for Retail Delivery Service and Tariff for Transmission Service as reflected in Attachment 2 to this Stipulation;
2. The addition of the interim rates surcharge described above to recover interim rates from May 22,2026, until the Commission approves the final rates in this proceeding and they become effective for billing, pursuant to SOAH Order No. 4 and as reflected in Attachment 7 to this Stipulation, and the surcharge will be recovered during 2026.
3. The recovery of system restoration costs associated with Hurricane Beryl, in the amount of $20,509,755 plus carrying charges, through Rider HCRF, as detailed above, with the balance amortized over five years, beginning with the effective date of the new rates authorized in this proceeding. Carrying costs will continue to accrue until restoration costs are fully collected.
4. The Signatories agree that the rates are based on the class allocations reflected in Attachment 4 CCOSS Summary and the revenue distribution reflected in Attachment
5. The Signatories agree that the distribution and transmission base rates allocated to vegetation management in Section A amount to $16,524,983. This figure does not replace or otherwise affect any amount approved for vegetation management activity in the Commission’s final order in Docket No. 56954.
6. The Signatories agree that TNMP will withdraw proposed Sections 6.1.2.5, 6.1.3.5, and 6.1.4.4 of its Tariff for Retail Delivery Service from consideration in this proceeding. Note that under the settlement, TNMP is withdrawing the proposed BTM tariff provisions, “from consideration in this proceeding.” The settlement notes that TNMP’s withdrawal does not prevent consideration in another proceeding.
7. The Signatories agree to all other changes to the Tariffs, attached hereto as Attachment 2, which are agreed upon rate design updates and initial TNMP proposals that do not conflict with, and are not otherwise addressed by, this Stipulation.

58964_606_1650168 (pg1-100)

58964_606_1650169  (pg. 102-200)

58964_606_1650170  (pg. 201-300)

58964_606_1650171  (pg. 301-400)

58964_606_1650172  (pg. 401-479)