(ALBUQUERQUE, N.M.) -- PNM yesterday petitioned the U.S. Environmental Protection Agency to reconsider its recent decision to adopt a federal plan in favor of a New Mexico plan to address regional haze.
 
The company also expressed support for a decision by N.M. Gov. Susana Martinez and the N.M. Environment Department to challenge EPA's decision in federal appeals court and also to petition the EPA for reconsideration.
 
“EPA has not yet considered a plan approved by the state of New Mexico that achieves visibility improvements at a significantly lower cost to more than 2 million electric consumers in the U.S. Southwest, including PNM's 500,000 customers,” said PNM Resources president and CEO Pat Vincent-Collawn. PNM Resources (NYSE: PNM) is the parent company of PNM.
 
In a petition filed Friday with EPA (link to PDF), PNM asked the agency to reconsider its decision. According to the petition, the agency did not properly consider the state's plan to address regional haze as required by federal law and regulations. Modeling by an expert engineering firm shows the two plans would achieve similar visibility improvements as perceived by the human eye.
 
“In finalizing its own regional haze plan for a plant that reliably and affordably serves 2 million customers in four states, EPA ignored the primary role given to the states by the federal Clean Air Act. It disregarded New Mexico's plan that would improve air quality and meet federal standards for about one-tenth of the cost to customers,” Vincent-Collawn said.
 
PNM supports the state plan to have PNM install selective non-catalytic reduction technology on the San Juan plant within five years; company officials believe this plan would cost about $77 million. The EPA plan, which would require the installation of selective catalytic reduction within five years, would cost about $750 million or more.    
 
The PNM petition of EPA also asks the agency for an immediate stay to postpone the effective date of its decision while the agency considers today's request for reconsideration. PNM on Sept. 16 appealed EPA's decision in federal court and also asked EPA to delay implementation of its plan while the federal appeal is considered.
 
“A delay in the implementation of EPA's plan is critical for the benefit of customers,” Vincent-Collawn said.
 
EPA's aggressive timeline for the San Juan plant to comply with its decision means that PNM must move immediately forward to begin initial planning and engineering even while the case is under appeal. According to recent PNM estimates:
 
·         The plant's nine owners will spend about $44 million on early design and engineering by the end of 2012 while the issue is under appeal - unless a stay is granted.
 
·         If two years passed before the federal court's decision on the appeal, plant owners would spend about $246 million toward the total project cost. All of these costs would be incurred without knowing whether EPA's decision on San Juan will be upheld in court.
 
PNM Supports New Challenge of EPA By New Mexico Governor, New Mexico Environment Department
 
Yesterday, N.M. Gov. Martinez and the N.M Environment Department also filed an appeal against the EPA decision in federal court. Martinez and the N.M. Environment Department also petitioned EPA for reconsideration and a delay of the implementation of the decision.
 
“We fully support the decision by Gov. Martinez and the N.M. Environment Department to challenge EPA's decision on best available retrofit technology for San Juan Generating Station,” Vincent-Collawn said.
 
“Because New Mexico consumers have so much at stake here -- and they ultimately will pay higher electric costs as a result -- we are pleased to see the governor and NMED take these actions to protect the state's legal authority to determine what is best for New Mexico,” she added.
 
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release that relate to PNM's expectations, projections and estimates 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 and PNM assumes no obligation to update this information.
 
With headquarters in Albuquerque, PNM is the largest electricity provider in New Mexico, serving 500,000 customers in dozens of communities across the state. PNM is a subsidiary of PNM Resources, an energy holding company also headquartered in Albuquerque. For more information, visit PNM.com.