PNM Unit In Deal For Early Exit From Four Corners Power Plant By 2024

PNM Resources, Inc. (PNM) announced Monday that its New Mexico utility unit PNM has reached an agreement to facilitate its exit from the Four Corners Power Plant in 2024, seven years earlier than planned.

PNM currently has a 13 percent ownership stake in Units 4 and 5 of the 1,540-megawatt Four Corners Power Plant. These 200 megawatts comprise less than 10 percent of PNM's total energy portfolio and reflect the last of PNM's remaining coal-fired generation capacity.

PNM said it solidified its plans to fully exit coal under the deal with the assignments of its rights under its coal supply agreement and the transfer of its 200-megawatt capacity ownership in the Four Corners Power Plant to the Navajo Transitional Energy Corp. or NTEC at the end of 2024. The contracts were previously set to expire in 2031.

Under the agreement, PNM will make a $75 million payment for relief from its obligations under the coal supply agreement with NTEC.

PNM said it plans to file with the New Mexico Public Regulation Commission or NMPRC in early 2021 for abandonment and securitization of unrecovered investment in the plant.

Pat Vincent-Collawn, PNM Resources' chairman, president and CEO, said, "Our accelerated exit means earlier savings on PNM customer bills and timely financial support for the Navajo Nation while it continues to navigate its transition to a renewable energy economy."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
McDonald's says equal pay for women is just the beginning, while conforming that the fast-food giant pays women globally 99.85 cents on the dollar for similar work, taking into account legitimate pay drivers such as level, location, experience, and performance. The company added that it is on track to close that identified gap in 2022. Verizon Communications Inc. (VZ) said, on an adjusted basis, its third-quarter earnings per share rose 12.8 percent from a year ago. The company said its earnings were highlighted by revenue and customer growth as more than one in four Consumer wireless phone customers now have a 5G-capable device. The... While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2021. For fiscal 2021, the company continues to project earnings from continuing operations in a range of $3.55 to $3.6 per share and...
Follow RTT