PNM and parties reach unanimous settlement agreement for customer rate credits to resolve remaining steps of San Juan coal plant retirement.

Rate credits add to existing benefits of coal plant retirement under Energy Transition Act for customers, environment, employees and impacted communities.

(ALBUQUERQUE, N.M.) – PNM reached a unanimous agreement with the parties in New Mexico Public Regulation Commission (NMPRC) and New Mexico Supreme Court (Court) filings resolving all remaining steps involved in the retirement of the San Juan coal plant under the Energy Transition Act. These steps include bill credits issued to customers and the issuance of lower-cost securitization bonds to fund the energy transition.   

“We have been working towards this transition for many years and appreciate the collaborative effort from parties to reach a unanimous settlement to complete the final steps,” said Pat Vincent-Collawn, CEO of PNM. “As the solar and battery storage replacement power resources also begin to come online, we are seeing the full scope of the Energy Transition Act’s benefits for our customers, the environment, employees and the communities impacted by the plant’s closure.”

Under the terms of the agreement, $115 million in bill credits will be provided to customers over a one-year period resulting in an average residential customer credit of $9.28 per month. The $9.28 per month credit is approximately 11% of average residential customer bill. In addition, customers will be protected from rising interest rates on the securitization bonds. The $115 million will come from the company’s earnings and customers will not pay for any part of the bill credit.

Parties to the settlement agreement include PNM, the New Mexico Office of the Attorney General, Western Resource Advocates (WRA), New Energy Economy (NEE), New Mexico Affordable Reliable Energy Alliance (NM AREA), Albuquerque Bernalillo County Water Utility Authority (ABCWUA), Coalition for Clean Affordable Energy (CCAE), Prosperity Works and Utility Division Staff of the New Mexico Public Regulation Commission (Staff).

The settlement agreement is subject to NMPRC approval. The case is currently before the Court, and the parties to the appeal are seeking to have the case remanded back to the NMPRC for consideration of the settlement.