PNM to leave Four Corners Power Plant years early, paving way to millions in savings and aid for Navajo Nation
Under a new agreement between PNM and the Navajo Transitional Energy Company (NTEC), PNM will exit the New Mexico Four Corners Power Plant seven years early, but as a result, provide around $100 million in customer savings and $16 million in economic aid for the Navajo Nation.
While this is contingent on regulators’ approval, the deal removes PNM from a 13 percent share of the plant in 2024. To pay off its obligations, PNM shareholders would make a $75 million payment, while the remaining funds would come from forgone profits and reinvestment of existing debt. In return, this will allow PNM to accelerate plans to exit coal entirely.
“Our accelerated exit means significant savings on PNM customer bills and timely financial support for the Navajo Nation while it continues to navigate its transition to a renewable energy economy,” Pat Vincent-Collawn, PNM Resources chairman, president and CEO, said. “As we manage the challenges of today and focus on solutions for the clean energy future, we continue to do what’s right for our customers, communities, and our tribal neighbors.”
Four Corners is a 1,540 MW, coal-fired generation plant. PNM had owned a 200 MW stake and represented less than 10 percent of PNM’s total energy portfolio.
“We appreciate PNM and NTEC working together to maintain jobs and revenues for the near future, but we also recognize the need to continue the Nation’s efforts to transition our energy portfolio,” Navajo Nation President Jonathan Nez said. “We are optimistic that the Nation will continue to use our resources and the expertise of our enterprises to move in that direction, and we welcome NTEC and PNM to be a part of that process. It is very important that we continue to work with our partners in the Four Corners region to ensure that our economy continues to grow in light of the changes in energy development that we are seeing throughout the country and internationally.”
