New Mexico Public Regulation Commission Denies PNM Application for Abandonment, Securitization of Four Corners Coal Plant
On December 15, 2021, the New Mexico Public Regulation Commission (NMPRC) voted unanimously to deny Public Service Company of New Mexico's (PNM) application to abandon and securitize its minority interest in the Four Corners Power Plant. This decision follows PNM's initial filing in January 2021 and subsequent amendments. The rejection could prevent PNM from transitioning away from coal by the end of 2024, potentially costing customers up to $300 million in savings and reducing carbon emissions. PNM's management expressed disappointment, emphasizing compliance with federal standards and shareholder commitments.
- Management emphasized a commitment to environmental standards and shareholder interests.
- Potential savings for customers of $300 million if PNM could exit the coal market.
- The NMPRC's decision denies PNM's plan to transition away from coal, affecting long-term sustainability.
- The rejection could impact PNM's goal to reduce carbon emissions by 20%-25% by 2024.
ALBUQUERQUE, N.M., Dec. 15, 2021 /PRNewswire/ -- Today the New Mexico Public Regulation Commission (NMPRC) voted 5-0 to deny the application by Public Service Company of New Mexico (PNM), wholly-owned subsidiary of PNM Resources, Inc. (NYSE: PNM), to abandon, sell and securitize its minority interest in the Four Corners Power Plant.
PNM originally filed its application for abandonment and securitization in January 2021. In February 2021, the Hearing Examiner deemed the application to be insufficient and specified requirements for an amended application, which PNM promptly filed in March 2021. Today's decision, issued on the statutory deadline for the case, further modifies the requirements for this case and calls for new information to be filed regarding proposed replacement power resources.
"We are deeply disappointed that the Commission chose to reject a coal-free PNM at the earliest date possible and to ignore the Energy Transition Act's careful balancing of shareholder responsibility, millions in customer savings, economic aid and significant environmental benefits," said Pat Vincent-Collawn, PNM Resources' Chairman, President and CEO. "The Energy Transition Act went through a rigorous legislative process to balance the interests of all parties and benefit our environment. The Commission's actions aim to penalize the utility for complying with federal environmental standards while ignoring shareholders' commitment to pay
PNM's proposed exit from Four Corners would have saved customers up to
Today's order and additional materials pertaining to the application for abandonment and securitization are available at https://www.pnmresources.com/investors/rates-and-filings.aspx.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2020 consolidated operating revenues of
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iii) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, and (iv) the risk that the proposed transaction could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
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SOURCE PNM Resources, Inc.
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