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The roadmap to tomorrow.

New Energy Policy in New Mexico – Energy Transition Act

In March 2019, New Mexico’s governor signed the Energy Transition Act (ETA) into law. This was a result of two years’ worth of thoughtful and realistic planning by diverse stakeholders. As we move forward into 2019, the Energy Transition Act supports the PNM long-term strategic plan and provides new tools and benchmarks to help us achieve success.

This landmark legislation received broad support from stakeholders across the state including environmentalists, labor, tribal, community, and business leaders. The Energy Transition Act gives PNM a new financial tool to allow for the responsible closure of the San Juan Generating Station (SJGS) in June of 2022 and the exit of the Four Corners Power Plant in 2031.

Equally as important, the ETA sets mandates for utilities to achieve 100 percent emissions-free generation by 2045. It also establishes a new and aggressive Renewable Portfolio Standard (RPS), requiring 40% renewable energy by 2025, 50% by 2030 and 80% by 2040.

While at first a 100% emission-free target might appear an overwhelming task, PNM is well positioned to be an industry leader in this transition. Our strategic planning already had us over 70% emission-free resources by 2032, without the Energy Transition Act. In order to achieve a full 100% emission-free portfolio, we will be relying on battery and other technology improvements to make the final steps of this journey.

We are fully engaged and monitoring these technology advancements and are well positioned to implement them in the most cost-effective way for our customers.