Hearing Examiner Issues Recommendation to Approve Abandonment, Securitization of Four Corners Power Plant
ALBUQUERQUE, N.M., Nov. 15, 2021 /PRNewswire/ -- On Friday, a Hearing Examiner of the New Mexico Public Regulation Commission (NMPRC) issued a recommendation for PNM Resources, Inc. (NYSE: PNM) wholly-owned subsidiary Public Service Company of New Mexico's (PNM) application for the abandonment and securitization of its minority ownership of the coal-fired Four Corners Power Plant.
If adopted by the NMPRC, the recommendation approves PNM's application for abandonment of its interest in the plant in 2024 and recovery of undepreciated amounts through securitization. This is consistent with the Energy Transition Act, New Mexico's landmark energy policy to transition the state to clean energy while protecting the interest of customers and impacted communities.
If approved by the NMPRC, this recommendation allows the company an early exit from the Four Corners Power Plant to no longer serve customers with coal-fired power, implement seasonal operations in Fall of 2023 reducing annual emissions 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 Hearing Examiner also recommended that the NMPRC conditionally approve the sale and transfer of PNM's minority interest in the plant to Navajo Transitional Energy Company (NTEC) with modifications to the contract language, and to maintain the NMPRC's authority to review the prudence of amounts to be securitized in PNM's next general rate case.
Following an opportunity for PNM and other parties to file any objections to the recommended decision, the NMPRC will review the case and recommended outcome in the coming weeks, with a decision required by the Energy Transition Act by December 15, 2021.
Additional materials pertaining to the application for abandonment and securitization are available at https://www.pnmresources.com/investors/rates-and-filings.aspx.
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.
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.