Combined, Agreements Will Save Customers More Than $300 Million
Company Website:
http://www.pnmresources.com
ALBUQUERQUE, N.M. -- (Business Wire)
PNM today filed with the New Mexico Public Regulation Commission (NMPRC)
key documents needed to implement the company’s plan for San Juan
Generating Station (SJGS). The filing includes the ownership
restructuring agreement, coal supply agreement, and the purchase and
sale agreement for San Juan Mine between BHP Billiton and Westmoreland
Coal Company. Combined, the agreements will reduce the cost to customers
by more than $300 million over six years, reducing monthly bills for
customers by about 5 percent beginning in 2016.
The coal supply agreement for SJGS and the mine purchase and sale
agreement are final, fully executed documents. The final ownership
restructuring agreement has been executed by PNM, PNMR Development, the
City of Farmington and Tucson Electric Power. The six remaining owners
are obtaining approval from their respective governing bodies and plan
to provide their executed signature pages by Aug. 1, as ordered by the
NMPRC.
“The agreements are complete, and today’s filing clearly shows that PNM
is in position to submit the remaining signatures by Aug. 1,” said Pat
Vincent-Collawn, PNM chairman, president and CEO. “These documents
reinforce the fact that our plan for SJGS is the lowest cost
alternative, and is the best for our customers.”
The ownership restructuring and coal supply agreements not only increase
the value to customers of the PNM plan, the benefits further distance
the plan from the more costly alternatives.
“Our priority has always been to minimize the customer bill impact while
complying with federal environmental regulations,” added
Vincent-Collawn. “The lower cost of coal in the new agreement is a major
win for our customers and, together with our replacement power
proposals, also helps PNM create a cleaner, more balanced fuel
portfolio. With Commission approval, we would be able to implement these
savings and benefits at the beginning of 2016.”
PNM has also filed a request with the NMPRC for a Certificate of Public
Convenience and Necessity for a 187 megawatt, $132 million natural
gas-fired generator located adjacent to SJGS near Farmington. The plant
is part of PNM’s proposal to replace the power lost by the retirement of
two of SJGS’s four units if the PNM plan is approved by the Commission.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2014 consolidated operating revenues of $1.4
billion. Through its regulated utilities, PNM and TNMP, PNM Resources
has approximately 2,707 megawatts of generation capacity and provides
electricity to more than 753,000 homes and businesses in New Mexico and
Texas. 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 that relate to future events or PNM
Resources’ (“PNMR”) or Public Service Company of New Mexico’s (“PNM”)
(collectively, the “Company”) 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 and PNM assume no obligation to update this
information. Because actual results may differ materially from those
expressed or implied by these forward-looking statements, PNMR and PNM
caution readers not to place undue reliance on these statements. PNMR's
and PNM'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. For a discussion of risk
factors and other important factors affecting forward-looking
statements, please see the Company’s Form 10-K and Form 10-Q filings
with the Securities and Exchange Commission, which factors are
specifically incorporated by reference herein.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150701006736/en/
Contacts:
PNM Resources
Analysts
Jimmie Blotter, 505-241-2227
Media
Pahl
Shipley, 505-241-2782
Source: PNM Resources
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