PRC to issue decision on whether PNM can abandon coal plant
Ruling to be announced today; nonprofit intends to appeal regardless of outcome
The New Mexico Public Regulation Commission is expected to decide Wednesday whether to allow the state’s largest electric utility to abandon the aging coal-fired San Juan Generating Station near Farmington and recoup shareholders’ investments in the plant.
The decision, which comes after months of legal proceedings that culminated with state Supreme Court intervention at the request of Gov. Michelle Lujan Grisham, will signal “a major milestone in putting these issues to rest,” said Steve Michel, a utility law expert with the environmental group Western Resource Advocates.
Commissioners will decide whether to approve recommendations from the regulatory agency’s hearing examiners to allow Public Service Company of New Mexico to abandon the coal plant under provisions in a new renewable energy law
allowing PNM to sell bonds to earn back investments made by shareholders.
Months ago, commissioners delayed a decision on PNM’s request, saying they were unsure whether the new law applied to it. In January, the New Mexico Supreme Court ruled the new Energy Transition Act does apply to PNM’s plans for the San Juan station.
Commissioners still must approve the plan.
Hearing examiners have recommended they do so. They also issued an initial recommendation for approval of PNM’s plan to replace energy from the coal plant with with a mix of energy sources, including ramped-up solar projects.
“If things are thrown into uncertainty [by another court challenge] it might jeopardize those projects, which would be very unfortunate,” Michel said.
But the Santa Fe-based nonprofit New Energy Economy, which has opposed both the energy law and PNM’s plan, already intends to appeal the commission’s decision. The group, which has a history of opposing PNM’s applications with the PRC, also is gearing up to file a separate lawsuit in state District Court arguing the energy law violates a due process clause of the New Mexico Constitution, said Mariel Nanasi, the nonprofit’s executive director.
Nanasi argues PNM’s plan for recouping San Juan plant investments will raise costs for ratepayers.
State lawmakers, PNM and other environmental groups have said the provisions in the law that apply to the utility will save money for customers.
The Energy Transition Act lays out an aggressive clean energy portfolio that requires the state to shift to 100 percent carbon-free electricity production by 2045.