PNM Files Key Final San Juan Generating Station Agreements with NMPRC; Company on Track to Meet Aug. 1 Deadline
02 July 2015 - 10:39AM
Business Wire
Combined, Agreements Will Save Customers
More Than $300 Million
PNM today filed with the New Mexico Public Regulation Commission
(NMPRC) key documents needed to implement the company’s plan for
San Juan Generating Station (SJGS). The filing includes the
ownership restructuring agreement, coal supply agreement, and the
purchase and sale agreement for San Juan Mine between BHP Billiton
and Westmoreland Coal Company. Combined, the agreements will reduce
the cost to customers by more than $300 million over six years,
reducing monthly bills for customers by about 5 percent beginning
in 2016.
The coal supply agreement for SJGS and the mine purchase and
sale agreement are final, fully executed documents. The final
ownership restructuring agreement has been executed by PNM, PNMR
Development, the City of Farmington and Tucson Electric Power. The
six remaining owners are obtaining approval from their respective
governing bodies and plan to provide their executed signature pages
by Aug. 1, as ordered by the NMPRC.
“The agreements are complete, and today’s
filing clearly shows that PNM is in position to submit the
remaining signatures by Aug. 1,” said Pat Vincent-Collawn, PNM
chairman, president and CEO. “These documents reinforce the fact
that our plan for SJGS is the lowest cost alternative, and is the
best for our customers.”
The ownership restructuring and coal supply
agreements not only increase the value to customers of the PNM
plan, the benefits further distance the plan from the more costly
alternatives.
“Our priority has always been to minimize the
customer bill impact while complying with federal environmental
regulations,” added Vincent-Collawn. “The lower cost of coal in the
new agreement is a major win for our customers and, together with
our replacement power proposals, also helps PNM create a cleaner,
more balanced fuel portfolio. With Commission approval, we would be
able to implement these savings and benefits at the beginning of
2016.”
PNM has also filed a request with the NMPRC for
a Certificate of Public Convenience and Necessity for a 187
megawatt, $132 million natural gas-fired generator located adjacent
to SJGS near Farmington. The plant is part of PNM’s proposal to
replace the power lost by the retirement of two of SJGS’s four
units if the PNM plan is approved by the Commission.
Background:
PNM Resources (NYSE: PNM) is an energy holding
company based in Albuquerque, N.M., with 2014 consolidated
operating revenues of $1.4 billion. Through its regulated
utilities, PNM and TNMP, PNM Resources has approximately 2,707
megawatts of generation capacity and provides electricity to more
than 753,000 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’ (“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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150701006736/en/
PNM ResourcesAnalystsJimmie Blotter,
505-241-2227MediaPahl Shipley, 505-241-2782
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