PNM Resources' New Mexico Utility, Public Service Co. of New Mexico (PNM), today announced that customer savings have been secured through the finalization of the new coal supply and participant restructuring agreements for the San Juan Generating Station (SJGS). Combined savings from the agreements are expected to reduce customer costs by more than $300 million over six years. This will reduce customer bills by approximately five percent, with retroactive savings implemented as if the new coal contract had become effective in the month of January.
The sale of the San Juan Coal Company, the owner of the San Juan Mine, from BHP Billiton to Westmoreland San Juan, LLC, a subsidiary of Westmoreland Coal Company, has been completed, and resulted in the finalization of the new coal supply and participant restructuring agreements. Westmoreland San Juan began operating the mine Feb. 1, 2016. To facilitate the closing and secure PNM customer savings, PNM Resources established a new subsidiary, NM Capital Utility Corp, which assisted Westmoreland with the financing to complete their acquisition of the San Juan Coal Company.
Based in Englewood, CO, Westmoreland Coal Company is the oldest independent coal company in the U.S. Westmoreland's coal operations include surface and underground mining operations, a char production facility, and a 50 percent interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, a publicly-traded coal master limited partnership with six mining complexes. Its power operations include ownership of the two-unit ROVA coal-fired power plant.