Coal has provided affordable, reliable energy to New Mexico for decades. The downside of coal is greater emissions and higher fuel costs. As part of the state’s largest utility effort to lead the nation in reducing emissions, PNM is transitioning away from coal.
This past Earth Day, PNM announced it would become the nation’s first investor-owned utility to set a goal to be 100 percent emissions-free by 2040. PNM has since filed for the closure and replacement of its coal-fired San Juan Generating Station.
Through an innovative approach, the PNM proposal replaces coal-fired generation with renewable resources and cutting-edge technologies. If the New Mexico Public Regulation Commission approves the plan, it can lower residential customer rates and meet the reliability requirements placed on utilities by the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation.
“Each step we take toward 100% emissions-free must balance the cost, the environment, and reliability,” said Pat Vincent-Collawn, PNM Resources chairman, president and CEO. “The San Juan replacement plan we put forth will not only save customers money, but will have one of the largest solar facilities in the U.S. and one of the highest percentages of battery storage anywhere in the country.”
While PNM is required to file only one plan, the utility has included multiple scenarios in the filing for the New Mexico Public Regulation Commission and customers to understand how resource decisions can impact reliability and costs.
The plan includes a combination of new solar generation, energy battery storage, and new flexible natural gas. The plan provides high reliability, low costs, and addresses environmental concerns by depreciating new natural gas resources by or before 2040 so New Mexicans can transition to an emissions-free future.
Additionally, a step away from coal is not a step out of the communities PNM has been a part of for so long. The utility will continue to identify innovative ways to support economic development in those areas impacted most by this transition.
“PNM is committed to an open and transparent process that works with the New Mexico Public Regulation Commission’s public process to provide all information needed to make an informed decision on New Mexico’s energy future,” said Ron Darnell, PNM senior vice president of public policy.
By: Shannon Jackson (ABQ Business Journal)
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