ALBUQUERQUE, N.M., April 21, 2017 /PRNewswire/ -- PNM Resources' (NYSE: PNM) New Mexico utility, Public Service Co. of New Mexico (PNM) is proposing a future energy resource portfolio that would eliminate its use of coal-fired generation by the end of 2031. The findings are included in PNM's draft 2017 Integrated Resource Plan (IRP) that is posted on the utility's website (https://www.pnm.com/irp). Public input and comments on the draft are being considered as part of the ongoing IRP process, which culminates in a final report to be filed with the New Mexico Public Regulation Commission (NMPRC) by July 3, 2017.
"Our number-one responsibility is to act in the best interests of our customers, and this plan outlines the most effective way to deliver reliable, affordable and environmentally sustainable energy going forward," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "Market forces are driving a rapid evolution of energy resources, and the current data clearly shows that replacing the coal in our current portfolio with a cleaner energy mix that includes more renewables and natural gas is the best, most economical path to a strong energy future for New Mexico."
Every three years, PNM is required to produce and file an IRP with the NMPRC. PNM evaluates numerous existing and anticipated options for energy resources over the next 20 years to determine the most cost-effective mix of resources that will support reliability and environmental responsibility. In addition, the IRP contains a proposed, specific four-year action plan, including actions that will require future NMPRC approvals.
Highlights of the draft 2017 IRP:
PNM would retire San Juan Generating Station (SJGS) Units 1 and 4 by the end of 2022, after the existing coal-supply agreement expires (Units 2 and 3 will be retired at the end of 2017),
PNM would exit its 13 percent participation in the Four Corners Power Plant when the existing coal-supply agreement expires in 2031,
Replacement power would include renewables, natural gas, and potentially energy storage, and
PNM would retain its capacity in the Palo Verde Nuclear Generating Station (PVNGS) that is currently being leased. PVNGS is a 24/7, carbon-free resource that not only minimizes fresh water usage but also diversifies the generation resource portfolio, limiting customers' cost exposure to potentially higher natural gas prices.
"While this plan offers significant environmental benefits and is the most cost-effective for customers, we know that it will have an impact on the economy of the Four Corners area and the families and businesses that depend on the coal industry for income, especially the Navajo Nation," added Vincent-Collawn. "PNM will work with the communities that will be most affected and other stakeholders to mitigate the effects of these changes."
PNM representatives will be traveling to communities throughout the utility's service territory to provide an opportunity for anyone to comment on the future of energy in New Mexico. Comments may also be submitted to email@example.com.
In accordance with the SJGS settlement agreement previously approved by the NMPRC, this IRP considers two primary scenarios - one with the retirement of SJGS at the end of 2022 and one with the continued operation of SJGS after 2022. In addition, there are many legal, regulatory and other processes that would have to take place before PNM can take any actions regarding SJGS, Four Corners Power Plant, or other resources. More information about the IRP process can be found at https://www.pnm.com/irp
Background: PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2016 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,791 megawatts of generation capacity and provides electricity to more than 767,000 homes and businesses in New Mexico and Texas. For more information, visit the Company's website at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this news release that relate to future events or PNM Resources, Inc.'s ("PNMR") or Public Service Company of New Mexico's ("PNM") (collectively, the "Company") expectations, projections, estimates, intentions, goals, targets, and strategies 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. PNMR and PNM assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR and PNM caution readers not to place undue reliance on these statements. PNMR's and PNM's 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. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.