ALBUQUERQUE, N.M., March 12, 2021 /PRNewswire/ -- PNM, the
wholly-owned New Mexico utility
subsidiary of PNM Resources (NYSE: PNM), has enhanced its plan to
exit the coal-fired Four Corners Power Plant with additional plans
for seasonal operations at the plant beginning in the fall of
2023.
"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, PNM Resources' chairman, president and CEO.
"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."
In November 2020, PNM announced it
had reached an agreement to transfer its 13 percent plant ownership
to the Navajo Transitional Energy Corporation (NTEC) at the end of
2024, unlocking the potential for PNM to realize significant
savings for its customers through the replacement of this capacity
with cleaner energy resources. 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.
Following 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, in consideration with a just energy
transition for the Navajo Nation. The collaborative solution for
seasonal operations ensures the plant will be available to serve
each owners' customer needs during times of peak energy use while
minimizing operations during periods of low demand. This approach
results in an estimated annual 20 to 25 percent reduction in carbon
emissions at the plant and retains jobs and royalty payments for
the Navajo Nation.
The Four Corners Power Plant has been an important resource for
reliable electricity for nearly 60 years, particularly for areas of
high summer demand across the western United States. The installation of selective
catalytic reduction (SCR) equipment at the plant in 2018 has
reduced annual nitrogen oxide emissions by 88 percent. The plant is
also a critical piece of the Navajo Nation economy.
PNM currently has a 13 percent ownership stake in the
1,540-megawatt plant. These 200 megawatts comprise less than 10
percent of PNM's total energy portfolio and reflect the last of
PNM's 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. The Hearing Examiner in the case recently directed PNM
to amend its filing with supplemental testimony by March 15, 2021. In its amended filing, PNM will
include information pertaining to the new agreement for seasonal
operations and its environmental benefits. In accordance with the
Hearing Examiner's order, the nine-month review period for the
proceeding will be reset with the amended filing.
PNM's regulatory proceeding for the abandonment and
securitization of the Four Corners Power Plant is separate from the
NMPRC docket for approval of PNM's merger with Avangrid. PNM
Resources continues to anticipate receiving all required federal
and state approvals and closing the merger in the second half of
2021.
Additional materials pertaining to PNM's filing for Four Corners
abandonment are available at
https://www.pnmresources.com/investors/rates-and-filings.aspx.
Background:
PNM Resources (NYSE: PNM) is an
energy holding company based in Albuquerque, N.M., with 2020 consolidated
operating revenues of $1.5 billion.
Through its regulated utilities, PNM and TNMP, PNM Resources
provides electricity to approximately 800,000 homes and businesses
in New Mexico and Texas. PNM serves its customers with a diverse
mix of generation and purchased power resources totaling 2.8
gigawatts of capacity, with a goal to achieve 100% emissions-free
energy by 2040. For more information, visit the company's website
at www.PNMResources.com.
CONTACTS:
|
Analysts
|
Media
|
Lisa
Goodman
|
Ray
Sandoval
|
(505)
241-2160
|
(505)
241-2782
|
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Statements made in this news
release for PNM Resources, Inc. ("PNMR"), Public Service Company of
New Mexico ("PNM"), or Texas-New
Mexico Power Company ("TNMP") (collectively, the "Company") that
relate to future events or 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, PNM, and TNMP assume no
obligation to update this information. Because actual results may
differ materially from those expressed or implied by these
forward-looking statements, PNMR, PNM, and TNMP caution readers not
to place undue reliance on these statements. PNMR's, PNM's, and
TNMP'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.
Additionally, there are risks and uncertainties in connection with
the proposed acquisition of us by AVANGRID which may adversely
affect our business, future opportunities, employees and common
stock, including without limitation, (i) the expected timing and
likelihood of completion of the pending Merger, including the
timing, receipt and terms and conditions of any required
governmental and regulatory approvals of the pending Merger that
could reduce anticipated benefits or cause the parties to abandon
the transaction, (ii) the failure by AVANGRID to obtain the
necessary financing arrangement set forth in commitment letter
received in connection with the Merger, (iii) the occurrence of any
event, change or other circumstances that could give rise to the
termination of the Merger Agreement, (iv) the possibility that
PNMR's shareholders may not approve the Merger Agreement, (v) the
risk that the parties may not be able to satisfy the conditions to
the proposed Merger in a timely manner or at all, (vi) risks
related to disruption of management time from ongoing business
operations due to the proposed Merger, and (vii) the risk that the
proposed transaction and its announcement could have an adverse
effect on the ability of PNMR to retain and hire key personnel and
maintain relationships with its customers and suppliers, and on its
operating results and businesses generally. For a discussion of
risk factors and other important factors affecting forward-looking
statements, please see the Company's Form 10-K, Form 10-Q filings
and the information included in the Company's Forms 8-K with the
Securities and Exchange Commission, which factors are specifically
incorporated by reference herein.
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SOURCE PNM Resources, Inc.