News Release

Feb. 26, 2002

San Juan Generating Station Refutes Air Violation Allegations

PNM NEWS News releases Financial news Contact PNM

NEWS MEDIA CONTACT Susan Sponar Telephone: (505) 241-2768

Waterflow: Today, PNM, operator of the San Juan Generating Station (SJGS), refuted allegations in a threatened citizens' suit alleging the power plant is violating the federal Clean Air Act and related state and federal regulations. By letter dated January 9, 2002, the company and other plant owners received a "notice of intent to sue" from Wyoming attorney Reed Zars, and California attorney George Hays representing the Grand Canyon Trust and the Sierra Club. 

In a press briefing today at San Juan Generating Station, Pat Goodman, PNM vice president of generation construction and operations said, "PNM has always been committed to operating all four San Juan units in strict compliance with applicable state and federal environmental requirements. We have, in fact, taken steps to reduce emissions below required levels." Goodman said the four generating station units were constructed in conformity with permits issued by the State of New Mexico more than 25 years ago.

The notice of intent to sue alleges three broad areas of violation:

• Allegations that SJGS implemented major modifications at the plant. These modifications would require installation of new, improved, pollution controls known as "best available control technology" to continue to operate the plant.
• Allegations that Units 3 and 4 started construction too late to be exempted from "best available control technology" requirements.
• Allegations that the plant has regularly violated the 20 percent opacity limit as set forth in the plants operating permits. Opacity refers to visible emissions from the plant’s stacks.

In a response letter to Mr. Zars and Mr. Hays, PNM’s Pat Goodman vigorously disputed the charges. His letter detailed several areas:

• The plant has not undertaken a project for major modification of a unit that has resulted in an increase in emissions.
• Actual start dates of construction for the units indicate that the proper permits were issued by the State of New Mexico.
• State air quality regulations excuse exceedances of opacity during periods of startup, shutdown, malfunction and scheduled maintenance.

San Juan Generating Station is a charter member of the U.S. Environmental Protection Agency’s (EPA) National Environmental Performance Track program. The station was one of only two coal-fired generating stations to be so recognized in 2000. The recognition is based on the organization’s record of environmental compliance, its environmental management system, its commitment to environmental improvement, and its public outreach through performance reporting. The plant’s environmental management system is also certified to ISO 14001 standards, demonstrating a high quality approach to environmental management.

The plant management and staff are committed to continuous improvement, having reduced sulfur dioxide emissions levels by 50 percent since 1997 due to the implementation of a new pollution control system. Hundreds of millions of dollars in pollution controls have been invested over three decades of operation. 

San Juan Generating Station is the 7th largest coal-fired generator in the western United States. The plant is a "zero-discharge" facility; through efficient management, no water leaves the property. PNM owns 47 percent of the plant, and operates it on behalf of eight other owners. It is the largest property taxpayer in San Juan County, paying approximately $8.4 million annually. The state also receives $41.2 million a year in royalties and taxes for coal deliveries to the plant. San Juan’s 438 full-time employees receive an annual payroll of $23.7 million.