PNM Resources moves forward with plans to exit coal-fired New Mexico plant
While moving forward with its plan to exit the coal-fired Four Corners Power Plant in New Mexico, PNM Resources reached an agreement for seasonal operations at the plant starting in the fall of 2023.
PNM reached an agreement in November 2020 to transfer its 13 percent plant ownership to the Navajo Transitional Energy Corporation (NTEC) at the end of 2024. The exit agreement also allows PNM to fully exit coal in support of its industry-leading goal of emissions-free energy by 2040, five years ahead of the carbon-free mandate included in New Mexico’s Energy Transition Act.
After the announcement, PNM continued to negotiate on the future operation of the plant with NTEC and the other plant owners to achieve the owners’ individual reliability needs and sustainability goals. The collaborative solution for seasonal operations ensures the plant will be available to serve each owners’ customer needs during peak energy use while minimizing operations during periods of low demand. This will result in a 20 to 25 percent annual reduction in carbon emissions at the plant and retains jobs and royalty payments for the Navajo Nation.
“The combination of these plans with our planned exit from Four Corners demonstrates the comprehensive approach within our ESG strategy to do what’s right for customers, employees, communities, and the environment,” said Pat Vincent-Collawn, chairman, president, and CEO at PNM Resources. “Our accelerated exit from coal and utilization of securitization financing provides customer savings and financial support to communities, including the Navajo Nation, and now the plan for seasonal operations achieves environmental benefits while preserving the community’s jobs and royalty payments. I’m proud of our team who continued to collaborate with all of the parties to address the overall needs of each of the owners and achieve these additional benefits.”
The Four Corners Power Plant has provided electricity for nearly 60 years. It is a critical piece of the Navajo Nation economy. The installation of selective catalytic reduction (SCR) equipment in 2018 reduced annual nitrogen oxide emissions by 88 percent.
Currently, PNM has a 13 percent ownership stake in the 1,540-megawatt plant. It is PNM’s last remaining coal-fired generation capacity following the approved retirement of the coal-fired San Juan Generating Station in 2022.
PNM filed with the New Mexico Public Regulation Commission (NMPRC) in January 2021 for abandonment and securitization of its share of the Four Corners Power Plant. In its amended filing, PNM will include information about the new agreement for seasonal operations and its environmental benefits. Thus, the nine-month review period for the proceeding will be reset with the amended filing.
PNM Resources, based in Albuquerque, N.M., provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas.
