PNM Appeals Rejection of Plan to Exit Four Corners Coal Plant

Rhea-AI Summary

PNM filed an appeal with the New Mexico Supreme Court against the NMPRC's decision to deny its plan to abandon, sell, and securitize its minority interest in the Four Corners Power Plant. This application aligns with New Mexico’s Energy Transition Act, aimed at promoting clean energy while safeguarding customer interests. PNM's proposal, which includes eliminating coal from its portfolio by 2024 and reducing emissions by up to 25%, could yield customer savings of up to $300 million. A Statement of Issues must be filed within 30 days of the appeal.

Positive

• PNM's plan could result in customer savings of up to $300 million.
• The strategy aligns with New Mexico's Energy Transition Act for clean energy.

Negative

• The NMPRC's rejection of PNM's application delays the transition away from coal.
• Failure to secure the appeal may hinder PNM's clean energy goals.

ALBUQUERQUE, N.M., Dec. 22, 2021 /PRNewswire/ -- Today, PNM filed a Notice of Appeal with the New Mexico Supreme Court of the decision earlier this month by the New Mexico Public Regulation Commission (NMPRC) 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 filed its application in accordance with the Energy Transition Act, New Mexico's landmark energy policy designed to transition the state to clean energy while protecting the interest of customers and impacted communities. Under the Energy Transition Act, an appeal is required to be filed within 10 days of the NMPRC decision.

Following today's Notice of Appeal, PNM will be required to file a Statement of Issues outlining its arguments for appeal within 30 days.

In its application, PNM brought forth a plan that would fully eliminate coal from its resource portfolio used to serve customer needs at the end of 2024, implement seasonal operations in the Fall of 2023 reducing annual emissions at the plant by an estimated 20 - 25%, replace the power with cleaner energy resources, securitize the remaining balance of the plant with lower financing rates and provide economic development funds to the impacted region, resulting in a net customer savings of up to $300 million. The plan meets the tenets of a Just Transition outlined by Navajo Nation President Jonathan Nez and has received his support.

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 $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 3.1 gigawatts of capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.

CONTACTS:
	Analysts				Media
	Lisa Goodman				Ray Sandoval
	(505) 241-2160				(505) 241-2782

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.

FAQ

Why did PNM file an appeal with the New Mexico Supreme Court?

PNM filed an appeal against the NMPRC's denial of its application to abandon and securitize its minority interest in the Four Corners Power Plant.

What is the significance of the Energy Transition Act for PNM?

The Energy Transition Act supports PNM's efforts to transition to cleaner energy while ensuring customer protection.

What savings can customers expect from PNM's proposed plan?

PNM's plan could provide customer savings of up to $300 million.

When must PNM file its Statement of Issues following the appeal?

PNM is required to file a Statement of Issues outlining its arguments for appeal within 30 days.

What emissions reductions does PNM aim to achieve at the Four Corners Power Plant?

PNM aims to reduce emissions by 20-25% at the Four Corners Power Plant.