Dive Brief:
- Public Service of New Mexico (PNM), the state’s dominant electricity provider, missed its May 1 deadline to complete all transitional agreements needed to close units 2 and 3 of the 1,684 MW coal-burning San Juan Generating Station and has asked state regulators to move the deadline to August 1.
- If the New Mexico Public Regulation Commission approves, the utility will have two months to complete agreements with the facility’s eight co-owners, which include public and municipal utilities in California, Utah, Arizona and New Mexico. It will also need to complete an agreement with Westmoreland Coal for the fuel it needs to continue running the retrofitted San Juan units 1 and 4.
- To meet EPA regional haze abatement regulations, San Juan’s units 2 and 3 must be shuttered by the end of 2017. PNM will lose the 418 MW it owns at those units. It will buy 132 MW from other units owned by three California utilities and the Tri-State Generation and Transmission Association.
Dive Insight:
PNM will be required to file an alternative plan to replace the unit 2 and 3 capacity if it misses the 1 August deadline.
These PNM moves came out of a December 2014 settlement with state regulators. The key features of the settlement are that it significantly reduces PNM’s use of coal, cuts seven different emissions by about 50%, and reduces PNM’s water use.
In the deal, PNM agreed to extend its customer rooftop solar program through 2019 and issue a request for proposals for 50 MW more of renewable generation.
PNM will also replace generation with its 10.2% share of the 3.3 GW Palo Verde Nuclear Generation Station’s output.
The deal is expected to increase the average customer’s monthly bill by an estimated 7%, or $5.25.
