PNM announces $100M in customer savings, early exit from Four Corners Power Plant
PNM Accelerates Substantial Customer Savings and Economic Aid to the Navajo Nation with Early Exit from the Four Corners Power Plant
Agreement for Early Exit from Four Corners Power Plant Benefits Customers, Communities and Clean Energy Transition
(Albuquerque, NM) – Today PNM and the Navajo Transitional Energy Company (NTEC), announced the signing of an agreement for PNM to exit from the Four Corners Power Plant seven years early. The agreement unlocks an approximate $100 million in customer savings and provides approximately $16 million in economic aid funds to the Navajo Nation if approved by regulators.
PNM hosted a virtual press conference to officially announce that, together with NTEC, we reached a solution to responsibly exit our 13% share of the Four Corners Power
Plant in 2024. Under the agreement, PNM shareholders will make a $75 million payment for relief from its obligations under the coal supply agreement with NTEC. This shareholders’ payment, along with forgone profits and a reinvestment of existing debt, provides for significant cost savings of approximately $100 million to customers and accelerates the path for PNM to achieve our plans 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. “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.
“NTEC stepped up to protect the interests of the Navajo Nation for the benefit of our people.
While we continue to move towards a transition to clean energy, the Nation must do so at a careful and deliberate p
ace so no harm is caused to the Navajo people and we don’t handicap the progress in job creation and
economic development we’ve made the past few years,” said Speaker Seth Damon, 24th Navajo Nation Council.
“As a representative from chapter communities that are directly impacted by the operations of Four Corners Power Plant, we understand its significance. The plant
operations have provided many benefits to the local community including being a neighboring contributor and partner, providing revenue annually to the Navajo Nation, and most importantly, providing skilled jobs and long-standing careers to Navajo people. It is understood there is a move for transition in the industry, but we must do it in a thorough and timely way
where there is consideration of realistic opportunities that minimizes any negative impact to the skilled Navajo workforce and local Navajo communities.” Said Rickie Nez, Navajo Nation Council Delegate representing T'iistoh Sikaad, Nenahnezad, Upper Fruitland, Tse' Daa' Kaan, Newcomb and San Juan Chapter communities.
PNM currently has a 13 percent ownership stake in the 1,540-megawatt of Units 4 and 5 at the 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. PNM will file for Abandonment of its interest in Four Corners in early January 2021. The retirement of the coal-fired San Juan Generating Station in mid-2022 was approved earlier this year.
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