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FAQs

Q. Why is PNM working to replace fossil fuels with renewable energy?
A. Renewable energy is better for the environment and will help lower costs to consumers in the long run.
Q. Can New Mexico lead the country in renewable and no emission energy?
A. Yes. With an abundance of wind and more than 300 days of sunshine annually, we have the natural resources to play a leading role in renewable energy. Also, by taking on a leadership position with renewable and zero emissions energy, our state becomes more attractive for economic development and to those businesses that value renewable energy use.
Q. Why is PNM shutting down San Juan Generating Station?
A. By moving away from coal now, we will be able to provide cleaner energy at a lower long-term price.
Q. What is The Energy Transition Act?
A. The Energy Transition Act is a way to save customers money, by PNM forgoing profits to aid the transition to an emission’s free energy mix while financially helping the Navajo Nation and the Four Corners region
Q. Will this increase my PNM bill?
A. The long-term savings from closing the San Juan Generating Station will lead to lower rates.
Q. When will PNM use more renewable energy?
A. PNM is constantly adding more renewable energy. We’re adding five new solar plants this year alone.
Q. What will producing and using more renewable energy mean for New Mexico?
A. More renewable energy will provide an incentive for businesses to locate here. It will also help preserve the environment for generations.
Q. How will the Four Corners area be affected by the closure of San Juan Generating Station?
A. We are working to minimize the economic impact on the Four Corners region as we move away from coal.
Q. Why isn’t PNM paying for this?
A. PNM shareholders have agreed to take a lower return on investment on the San Juan Generating Station to lower the cost to customers.
Q. When will the San Juan Generating Station close?
A. We closed two the four units on this plant site in 2017. The remaining two units are planned for closure in 2022.
Q. What will replace the energy from the San Juan Generating Station?
A. We will add more renewable energy as well as continuing to evaluate future energy storage. PNM will also plan to invest in transitional gas resources that provide the system reliability necessary to continue the transition to more renewables and energy storage systems. In exiting coal resources, we plan to reduce emissions by 70% by 2032 from the 2017 levels. This is much better than the clean power plan or other federally-contemplated environmental initiatives. PNM is ahead the pack. We’ll replace that energy in the short term with cleaner energy that includes transitional natural gas and more renewables.
Q. What is an Integrated Resource Plan?
A. Preparing the Integrated Resource Plan is a year-long process that is documented in a final report. Preparing the report requires utilities to use a long-term portfolio approach to identify potential resources that a utility intends to develop over the next twenty years, referred to as the Most Cost Effective Portfolio (MCEP). The long-term plan is accompanied by a near-term roadmap called the Four-Year Action Plan. The MCEP and Four-Year Action Plan is the result of considering the cost, reliability and environmental impact of several ways to supply electricity.
Q. How did PNM develop the Integrated Resource Plan (IRP)?
A. PNM’s 2017 IRP considered, among many other things, the impact of PNM exiting San Juan Generating Station when the ownership agreements and coal supply contract run out in 2022. The work was done in public. PNM hosted several meetings in Albuquerque beginning in June 2016. At the meetings, assumptions, costs, modelling processes, modelling tools, preliminary results and the draft report were presented and discussed by subject matter experts. PNM presented the preliminary results of the analysis at a public advisory group meeting on March 28, 2017 and released a draft report for review on April 20, 2017. After the draft report release, PNM hosted meetings statewide, including a meeting in Farmington at San Juan College that was attended by hundreds of plant employees, coal miners, public school employees and local residents to discuss the report’s findings and collect additional input before the report was filed with the New Mexico Public Regulation Commission on July 3, 2017.

Learn more and view the PNM reports.