June 23, 2015
PNM Commits to Filing Signed San Juan Agreements by Aug. 1, Urges NMPRC to Grant Extension to Allow Plan to Save Electric Customers Money and Benefit the Environment to Move Forward
Albuquerque: PNM today updated its filing to the New Mexico Public Regulation Commission (NMPRC) that requests an extension from July 1 until Aug. 1 to file final San Juan Generating Station ownership restructuring agreements. The company reaffirmed its commitment that all final ownership restructuring documents will be filed by Aug. 1, and now says that an additional five days for the City of Anaheim is not needed. PNM, PNM Resources Development, Tucson Electric Power and the City of Farmington expect to file their final agreements by July 1. These entities represent 92 percent of ownership in the plant as of Jan. 1, 2018. If the extension is approved, the remaining owners will file their final agreements by Aug. 1. In addition, PNM will file final copies of the long-term coal supply agreements with Westmoreland by July 1, 2015.
Today the PNM board of directors approved the ownership restructuring agreement. The final owners' agreements are necessary for the company to proceed with implementing the Stipulated Settlement Agreement for San Juan Generating Station, which if approved by the Commission, would provide significant environmental benefits at the lowest cost to customers. The new long-term coal supply agreements, which won't take effect unless the NMPRC approves PNM's plan, will provide $300 million in cost savings over six years that will be passed through to customers beginning Jan. 1, 2016. This would reduce monthly bills for average residential customers by about 5 percent beginning in 2016.
"Everything is in place to deliver the final, fully-executed agreements by Aug. 1 if the Commission permits us the additional time," said Pat Vincent-Collawn, PNM chairman, president and CEO. "The record we established during the January hearing clearly shows that the PNM plan is the most cost effective and provides significant environmental benefits. The new coal agreement makes the plan ever more cost effective for our customers."
Yesterday, Westmoreland Coal Company's board of directors approved the purchase of the San Juan Mine from BHP Billiton.
"Our agreement with PNM will help serve New Mexico customers with reliable energy at very economical rates," said Keith E. Alessi, CEO of Westmoreland. "In addition, it will ensure the continued operation of the mine, which provides hundreds of high-wage jobs and is a key driver of the Four Corners' economy."
With headquarters in Albuquerque, PNM is the largest electricity provider in New Mexico, serving more than 500,000 customers in dozens of communities across the state. PNM is a subsidiary of PNM Resources, an energy holding company also headquartered in Albuquerque. For more information, visit PNM.com.