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News Release

April 28, 2003

PNM Files Comments on Plant Operating Permit Provisions

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Susan Sponar
Telephone: (505) 241-2768

Albuquerque: PNM filed comments with the New Mexico Environment Department (NMED) today reflecting discussions that the company recently engaged in with the Las Vegas CARES organization and other community representatives regarding the operation of its oil-fired Las Vegas Generating Station. The company initiated the discussions to address concerns voiced by some Las Vegas citizens.

As part of the final operating permit, PNM has agreed to limit hours of operation of the Las Vegas Generating Station, running the plant only under the following conditions:

  • Transformer outages.
  • Emergencies due to equipment failures, weather and acts of God.
  • Failure of power lines.
  • Power plant outages.
  • Western grid system emergencies.
  • To comply with legal requirements and governmental orders.
  • For periodic testing as required by the NMED operating permit and for other reasons such as checking and maintaining equipment operations.
  • For limited wholesale sales, not to exceed a total of 2 percent of available operating time a year.

PNM discussed several other items with Las Vegas CARES that do not pertain to the operating permit including limiting the number of fuel trucks entering the property and, due to changes in federal regulations that will go into effect in 2004, modifications that would be made on the 420,000-gallon oil storage tank at the plant. The company also made a commitment to continue working with the community on long-term alternatives for the plant, taking into account both community concerns and the need for reliable service to Las Vegas and statewide.

PNM’s official comments were filed in response to an April 9 hearing officer’s recommendation to the NMED for approval of an Operating Permit for the plant. The company previously held a Certificate of Convenience and Necessity for operation of the turbine. An operating permit application was filed with the NMED in 1995 in order to comply with the federal Clean Air Act Amendments of 1990. The 1990 amendments require any source that emits more than 100 tons per year of a regulated pollutant to apply for an operating permit.

On average, PNM has run the plant less than 2 percent of available time. The company did run the 20-megawatt plant more than average in early 2001 because of the critical shortage of power on the western electric grid. At that time, PNM and other utilities on the grid were required to abide by a Department of Energy order that required them to make any excess energy available to the marketplace.

After the Las Vegas plant permit application is reviewed by the U.S. Environmental Protection Agency, NMED Cabinet Secretary Ron Curry will decide final approval of the permit. The emissions in the permit application are based on the turbine operating continuously, for 8,760 hours per year. Even under the assumption of continuous operation, the emissions from the turbine do not exceed federal or state ambient air quality standards.

"The Las Vegas Generation Station is an important piece of infrastructure for electric reliability in northern New Mexico," said Pat Goodman, PNM Vice President of Power Production. "PNM is always willing to listen to community concerns and address them as appropriate. We view these discussions with the concerned citizens as a positive step forward for both parties."

When some residents complained in early 2001 about the plant’s noise level, PNM held public meetings to hear their concerns. In response, PNM installed specialized noise abatement equipment at a cost of over $400,000, resulting in a more than 50 percent reduction of noise from the facility.

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PNM is the principal subsidiary of PNM Resources, an energy holding company based in Albuquerque. PNM provides electric utility service to 387,000 customers and natural gas service to 450,000 customers in New Mexico. The company also sells power on the wholesale market in the Western U.S. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information, see the company's Web site at www.pnm.com.