ALBUQUERQUE, N.M., Nov. 2, 2020 /PRNewswire/ -- PNM, the wholly
owned New Mexico utility
subsidiary of PNM Resources (NYSE: PNM), today announces that it
has reached an agreement to facilitate its exit from the Four
Corners Power Plant in 2024, seven years earlier than planned.
PNM solidified its plans to fully exit coal under the agreement
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 Corporation
(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. This payment
provides for significant cost savings and defines the path for PNM
to achieve its plans to exit coal.
PNM plans to file with the New Mexico Public Regulation
Commission (NMPRC) in early 2021 for abandonment and securitization
of unrecovered investment in the plant. The early exit plans call
for significant cost benefits to customers and economic development
funds to support the Navajo Nation. A separate, subsequent filing
with the NMPRC is expected to be made with a proposal for
replacement power following a competitive RFP process that balances
environmental benefits, location, cost and reliability.
"This is a major step in our vision to create a clean and bright
energy future and achieve our industry-leading goal of
emissions-free energy by 2040," said Pat
Vincent-Collawn, PNM Resources' chairman, president and CEO.
"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.
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 and communities."
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.
The retirement of the coal-fired San Juan Generating Station in
mid-2022 was approved earlier this year.
PNM Resources (NYSE: PNM) is an energy
holding company based in Albuquerque,
N.M., with 2019 consolidated operating revenues of
$1.5 billion. Through its regulated
utilities, PNM and TNMP, PNM Resources has approximately 2,811
megawatts of generation capacity and provides electricity to
approximately 790,000 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 for
PNM Resources, Inc. ("PNMR"), Public Service Company of
New Mexico ("PNM"), or Texas-New
Mexico Power Company ("TNMP") (collectively, the "Company") that
relate to future events or 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, PNM, and TNMP assume no
obligation to update this information. Because actual results may
differ materially from those expressed or implied by these
forward-looking statements, PNMR, PNM, and TNMP caution readers not
to place undue reliance on these statements. PNMR's, PNM's, and
TNMP'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.
Additionally, there are risks and uncertainties in connection with
the proposed acquisition of us by AVANGRID which may adversely
affect our business, future opportunities, employees and common
stock, including without limitation, (i) the expected timing and
likelihood of completion of the pending Merger, including the
timing, receipt and terms and conditions of any required
governmental and regulatory approvals of the pending Merger that
could reduce anticipated benefits or cause the parties to abandon
the transaction, (ii) the failure by AVANGRID to obtain the
necessary financing arrangement set forth in commitment letter
received in connection with the Merger, (iii) the occurrence of any
event, change or other circumstances that could give rise to the
termination of the Merger Agreement, (iv) the possibility that
PNMR's shareholders may not approve the Merger Agreement, (v) the
risk that the parties may not be able to satisfy the conditions to
the proposed Merger in a timely manner or at all, (vi) risks
related to disruption of management time from ongoing business
operations due to the proposed Merger, and (vii) the risk that the
proposed transaction and its announcement could have an adverse
effect on the ability of PNMR to retain and hire key personnel and
maintain relationships with its customers and suppliers, and on its
operating results and businesses generally. For a discussion of
risk factors and other important factors affecting forward-looking
statements, please see the Company's Form 10-K, Form 10-Q filings
and the information included in the Company's Forms 8-K with the
Securities and Exchange Commission, which factors are specifically
incorporated by reference herein.
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SOURCE PNM Resources, Inc.