February 2006
New grants are available for teachers across Texas. The deadline is coming up soon, so pass the word. Learn more
First Choice Power's Parent Company is PNM Resources. This company has a long, rich history in the energy industry. Learn more
If you're thinking about making some energy-efficiency changes
around the house, there may be some tax breaks available. There are many qualifying improvements.
Learn more
Customers who established service and paid a deposit earn interest on that deposit. Effective in January,
the state lowered the interest rate paid on deposits held by electric companies. Learn more.
First Choice Power made sure 12 Friendswood kids had a happy holiday. After partnering with the
Friendswood Police Department's Blue Santa program, First Choice bought 12 bikes for kids who wanted them
for Christmas. Learn more.
Everyone Knows a Teacher ; Encourage Your Favorite To Apply
Two new grants are being offered to teachers and schools who are First Choice Power customers. Earth Study Grants are $1,000 awards to promote environmental awareness. The deadline to apply for an Earth Study Grant is coming up right away – it's Feb. 5 at 5 p.m. Visit www.firstchoicepower.com/earthstudy for details.
The First Choice Power Fund also will award Classroom Innovation Grants to eligible teachers across the state who have exciting and creative ideas for their classrooms. Teachers may apply for grants ranging from $500 to $3,000. The deadline to apply for Classroom Innovation Grants is also right around the corner. Applications are due by 5 p.m. on March 5. Visit www.firstchoicepower.com/innovation for more information.
Full-time K-12 teachers and pre-K teachers with an early-childhood license from schools served by First Choice Power are eligible to apply. Any teacher who is a customer of First Choice Power and meets the full-time criteria also is eligible. "We encourage eligible teachers to apply for these grants so they can obtain the necessary resources to turn their environmental or creative teaching ideas into classroom magic," said Diane Harrison Ogawa, executive director of the PNM Resources Foundation.
Applications must be submitted online by the deadline to be considered for grants.
For more information on applying for either of these grants, visit the First Choice Power Web site.
First Choice Parent Company Has Long History
in Energy Industry
In June 2005, First Choice Power became a subsidiary of PNM Resources. While PNM Resources may be new to Texans, the company has a long history in our neighboring state of New Mexico.
Based in Albuquerque, PNM Resources is an energy holding company with energy-related subsidiaries:
• PNM, a New Mexico electric and natural gas utility
• Avistar, an energy research and development company
And since the acquisition in 2005, PNM Resources also includes First Choice Power, your retail energy provider.
PNM Resources is traded on the New York Stock Exchange under the symbol PNM. Through its subsidiaries, the company serves 738,000 electric customers in New Mexico and Texas, and 471,000 natural gas customers in New Mexico. PNM Resources has consolidated operating revenues of $2.3 billion and a market capitalization of $1.7 billion.
The company’s goal is to generate 5 to 6 percent annualized earnings growth and a targeted payout ratio of 50 percent to 60 percent of consolidated earnings. Today, the company pays a regular quarterly dividend on common stock of $0.20 per share, for an indicated annual rate of $0.80 per share.
PNM Resources’ commitment to the environment is demonstrated by its environmental sustainability policy, which outlines goals to reduce air emissions and fresh water use, while expanding its renewable resource portfolio. The company has committed to adding solar and biomass generation technology to its resources by 2009.
For more information about the company, or to learn about the PNM Resources Direct Stock Purchase Program, visit www.PNMResources.com.
In 2006, Cut Your Taxes,
Slice Your Energy Bills
Looking to make major energy efficiency improvements on your home? By making them in 2006 or 2007, you can take advantage of up to $500 in new tax credits available this year.
To qualify for the tax credit, the improvements must be both paid for and installed in 2006 and 2007. The credit amount equals the sum of 10 percent of your expenditures for certain energy efficiency improvements to an existing home plus 100 percent of your expenditures for certain residential energy products. The $500 limit is a lifetime maximum, not an annual maximum.
Qualified energy efficiency improvements:
• Metal roofs coated with heat-reduction pigments.
• Exterior doors.
• Exterior windows including skylights.
• Insulation.
Qualified residential energy products:
• Electric heat pumps, electric heat pump water heaters, geothermal
heat pumps and central air conditioners.
• Furnaces and hot-water boilers.
• Advanced main air circulating fans.
Look for more information to be posted to www.firstchoicepower.com later this month. And for information about how this program affects your own situation, consult your tax professional. Some common questions are answered below.
Home Energy Efficiency Tax Credits Q&A
1. What is the difference between a tax deduction and a tax credit?
A tax credit is much more advantageous for you than a tax deduction. A tax deduction is subtracted from income before total tax liability is computed. On the other hand, a tax credit is subtracted directly from the total tax liability. This means a tax credit can be three or more times more valuable than a tax deduction. For example, a tax credit of $500 for someone in the 28 percent tax bracket is equivalent to a tax deduction of $1,700.
2. How much is the tax credit?
A maximum of $500 for all energy efficiency improvements. There are also maximums for windows ($200), furnaces or boilers ($150), advanced main air circulating fans ($50), heat pumps ($300), central air conditioners ($300) and water heaters ($300). For insulation, the tax credit is 10 percent of expenditures.
3. Do the tax credits only apply to my principal residence?
Yes.
4. What qualifies for the tax credit?
• Qualified energy efficiency improvements - 10 percent of expenditures
• Building envelope component must meet prescriptive criteria of the 2004 IECC
- Wall Insulation: R-21
- Ceiling Insulation: R-49
- Basement Insulation: Lower Peninsula R-11, UP R-19
• Windows & Doors: U-factor = .35
• Metal roof with pigmented coating - must be Energy Star
• Windows - maximum of $200
• Residential energy property expenditures
- Energy efficient building property - maximum of $300 for any item
- Advanced main air circulating fan - maximum of $50
- Natural gas, propane, or oil furnace or hot water boiler - maximum of $150
Minimum Requirements
• Electric heat pump water heater: Energy Factor - 2.0
• Electric heat pump: HSPF - 9, SEER - 15, & EER - 13
• Geothermal heat pump, closed loop: EER - 14.1 & COP - 3.3
• Geothermal heat pump, open loop: EER - 16.2 & COP - 3.6
• Geothermal heat pump, direct expansion: EER - 15 & COP - 3.5
• Central air conditioner: highest tier set by Consortium for Energy Efficiency
on Jan. 1, 2006
• Natural gas, propane, or oil water heater/space heater: Energy Factor - .80
• Natural gas, propane, or oil furnace or hot water boiler: AFUE - 95
• Advanced main air circulating fan: fan used in a furnace which has annual
electricity use of no more than 2 percent of total furnace energy use
5. Is there a time limit?
The improvements have to be placed in service during calendar year 2006 or 2007.
State Lowers Interest Rates for Deposits
Effective in January 2006, interest rates on customer deposits will be 3.09 percent, rather than the current rate of 6 percent. The change is a result of legislation enacted this year.
Deposits are required in some circumstances to establish service with First Choice. When a customer completes 12 months of service with a good payment history, the deposits are refunded with interest.
For existing deposits, the current rate of 6 percent will be applied to the amount when interest is accrued in January, but the 3.09 percent will be used for accruals that occur after that.
