Powering the Future - Exit from Coal

Latest update:

On April 1, 2020, the New Mexico Public Regulation Commission (NMPRC) unanimously approved orders for the abandonment and securitization of the San Juan Generating Station (San Juan) under the Energy Transition Act (ETA). PNM filed on July 1, 2019, a consolidated application requesting the abandonment of San Juan in June 2022 upon the expiration of the participation and coal supply agreements, securitization of the unrecovered investment in the plant and approvals for replacement power resources. The request for approvals of replacement power resources was separated into a separate NMPRC docket.

“We are pleased with the decision by the Commission and the Hearing Examiners’ recommended decisions to approve the abandonment and securitization of San Juan,” said Pat Vincent-Collawn, PNM Resources’ chairman, president, and CEO. “Our customers, communities, and environment will benefit as we move to exit all of our coal-fired generation and replace it with lower-cost, cleaner energy resources. The use of the securitization tool under the ETA provides $40 million to help workers and the communities affected by the closure. We will continue to look for the right opportunities to provide cost-effective, environmentally friendly energy to our customers.”

This decision by the Commission will make a positive impact on our customers, and the communities affected most by the closure of the plant. We applaud the Commission’s actions. We have not yet seen the final written order but understand that it adopts the Recommended Decisions in their entirety.

Moving New Mexico Forward Together

PNM is leading the nation in emissions reductions and transitioning away from traditional coal-fired generation. 

Why PNM is exiting coal
Click to Enlarge - The Cost of Continuing in Coal

To do this, we have put four distinct scenarios for customers and the NM Public Regulation Commission to consider. These scenarios would replace coal generation with various mixes of renewable energy and innovative technologies.

This site serves as the central hub for these scenarios and the information you need to fully engage in the generation replacement planning process.

Join us in helping New Mexico move forward, together.

Four Replacement Scenarios & Carbon Capture
Click to Enlarge - Four Replacement Scenarios & Carbon Capture
New infographic reflects updates made to replacement plan scenarios as a result of miscalculations found by PNM in our modeling data.
Some of these errors were the failure to include the full cost of natural gas. When offset by other corrections, the net effect is to change the resource selection for scenario two. This change allows more renewables and less natural gas in the San Juan Location scenario.
Although these miscalculations don’t impact the recommendations in the case, they minimally reduce estimated customer savings.
Along with replacing generation resources from the closure of San Juan coal plant, PNM is committed to helping employees affected by this closure. Visit www.PNM.com/ForYou for a resource center on job opportunities, retirement planning, and more. This site also contains information on helping the San Juan and Four Corners communities and making a greater impact for those areas we have been a part of for so long.

San Juan Closure Effect on Plant & Mine Jobs
Click to Enlarge - San Juan Closure Effect on Plant & Mine Jobs

San Juan Closure Effect on Jobs
Click to Enlarge - San Juan Closure Effect on Navajo Jobs