Utilities, Sourcing Renewables - July 12, 2019
PNM aims to shutter coal, replace with RE
PNM, the wholly-owned New Mexico utility subsidiary of PNM Resources, Inc. has filed with the New Mexico Public Regulation Commission (NMPRC) an application to abandon coal supply in favor of alternative energy resources.
The application proposes the abandonment of the San Juan Generating Station in June 2022 upon the expiration of the participation and coal supply agreements. The application also requests securitization treatment along with approvals for replacement power under a recommended scenario consistent with the New Mexico Energy Transition Act legislation. If approved, this scenario results in average customer savings of $7.11 per month in 2023 compared to the continued operation of San Juan, according to a statement from PNM.
PNM evaluated replacement power scenarios in the filing and considered the resulting costs to customers, reduction to carbon emissions and risks to reliability. The recommended scenario for replacement power results in the lowest cost to customers and achieves significant reductions to carbon emissions, meets reliability standards and brings significant investment to New Mexico. This scenario includes the following resources:
- 280 megawatts of natural gas-fired peaking units at San Juan,
- 350 megawatts of solar capacity, and
- 130 megawatts of battery storage capacity.
"Each step we take toward 100% emissions-free must balance the cost, the environment, and reliability," said Pat Vincent-Collawn, PNM Resources chairman, president and CEO. "The San Juan replacement plan we put forth will not only save customers money but will have one of the largest solar facilities in the U.S. and one of the highest percentages of battery storage anywhere in the country." PNM has a goal to be 100% emissions-free by 2040.
PNM requested an NMPRC decision on the consolidated application by the end of 2019.
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