Dive Brief:
- The Santa Fe New Mexican reports the Public Service Company of New Mexico asked regulators reconsider a decision on their request to raise rates in 2017.
- In a 4-1 December vote, the New Mexico Public Regulation Commission approved higher rates for the state's largest electric utility. Importantly, however, regulators balked at $150 million proposed for upgrades at the Four Corners coal plant.
- According to the Associated Press, PNM and allies say there may be legal action if regulators do not approve the Four Corners settlement. Customer rate hikes are now on hold in the interim.
Dive Insight:
PNM is asking state regulators to reconsider its December decision, but the case appears destined for litigation. Associated Press reports groups backing the Four Corners agreement say customer rates could up being higher if the court's are forced to weigh in.
In 2017, PNM laid out a plan to phase out its coal usage by 2031. The proposal included retiring San Juan Generating Station units 1 and 4 by the end of 2022 and exiting its arrangement at Four Corners. The utility proposed replacing the coal-fired energy with more renewables, natural gas and possibly energy storage, while maintaining its stake in the Palo Verde Nuclear Generating Station.
Maintaining its generation at the Palo Verde Nuclear Generating Station is a key portion of the plan, however. PNM owns 288 MW of the plant and leases another 114 MW. The leased capacity expires in 2023 and 2024.
