San Juan plan moves forward as PNM reaches settlement with key parties

PNM Resources’ New Mexico Utility, Public Service Co. of New Mexico (PNM), today filed with the New Mexico Public Regulation Commission (NMPRC) a settlement agreement regarding the plan to retire two units at San Juan Generating Station (SJGS). Following discussions, PNM and several key parties agreed on modifications to the original stipulation filed in October 2014. The agreement requires approval by the NMPRC.

This is a win for customers, the environment, and for jobs,” said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. “I appreciate the willingness of the parties to collaborate to reach a fair settlement that incorporates the best interests of electric customers, addresses federal environmental regulations, and protects the economy of the Four Corners region and the state.”

Similar to the original stipulation, this agreement is based on the closure of two of the four coal-fired units at SJGS by Dec. 31, 2017, and installation of emissions control technology on the remaining units to address compliance with federal visibility regulations under the Clean Air Act. In addition, the agreement positions New Mexico to comply with the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan, which imposes limits on carbon emissions.

The Utility Division Staff of the NMPRC, the New Mexico Attorney General, Western Resource Advocates, and the New Mexico Coalition for Clean Affordable Energy have signed on to the agreement, which provides that other parties to the case may join the agreement at a later date. Additionally, the Albuquerque Bernalillo County Water Utility Authority has indicated it will withdraw its opposition to the stipulation.

The closure of SJGS Units 2 and 3 by Dec. 31, 2017, and the installation of the Selective Non-Catalytic Reduction (SNCR) equipment on the remaining two units would reduce water usage and seven different emissions (including carbon) at SJGS by approximately 50 percent. 

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