PNM announces $100M in customer savings, early exit from Four Corners Power Plant

ALBUQUERQUE, N.M. (KRQE) – PNM and the Navajo Transitional Energy Company announced the signing of an agreement on Monday that PNM is exiting the Four Corners Power Plant seven years early. PNM states that the agreement unlocks about $100 million in customer savings and provides about $16 million in economic aid funds to the Navajo Nation if approved by regulators.

Under the agreement PNM will exit their 13% share of the Four Corners Power Plant in 2024 and PNM shareholders will make a $75 million payment for relief from its obligations under the coal supply agreement with NTEC. The company states that the shareholders’ payment along with forgone profits and reinvestment of existing debt provides for cost savings of about $100 million to customers and allows PNM to exit coal seven years earlier.

“Our accelerated exit means significant 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. As we manage the challenges of today and focus on solutions for the clean energy future, we continue to do what’s right for our customers, communities and our tribal neighbors.” said Pat Vincent-Collawn, PNM Resources chairman, president and CEO in a press release. “PNM has made great strides to set a standard as an affordable sustainable energy leader.”

“We appreciate PNM and NTEC working together to maintain jobs and revenues for the near future, but we also recognize the need to continue the Nation’s efforts to transition our energy portfolio. We are optimistic that the Nation will continue to use our resources and the expertise of our enterprises to move in that direction, and we welcome NTEC and PNM to be a part of that process. It is very
important that we continue to work with our partners in the Four Corners region to ensure that our economy continues to grow in light of the changes in energy development that we are seeing
throughout the country and internationally,” said Navajo Nation President Jonathan Nez.

PNM has a 13% ownership stake in the 1,540 megawatt of Units 4 and 5 at the Four Corners Power Plant. The 200 megawatts make up less than 10% of the company’s total energy portfolio and reflect the last of PNM’s remaining coal-fired generation capacity.

The retirement of the San Juan Generating Station in 2022 was approved earlier this year.