PNM’S PLAN FOR REPLACING ENERGY AT THE SAN JUAN GENERATING STATION
MORE RENEWABLES, FOR OUR FAMILIES, FOR OUR FUTURE
WHAT IS PNM AND WHO DOES IT SERVE?
PNM (Public Service Company of New Mexico) is an investor-owned utility that serves much of New Mexico including
Greater Albuquerque, Rio Rancho, Los Lunas and Belen, Santa Fe, Las Vegas, Alamogordo, Ruidoso, Silver City, Deming,
Bayard, Lordsburg and Clayton. PNM also serves New Mexico tribal communities of the Tesuque, Cochiti, Santo Domingo,
San Felipe, Santa Ana, Sandia, Isleta and Laguna Pueblos. PNM is one of two subsidiaries of PNM Resources, an investorowned energy holding company also based in Albuquerque.
Because PNM is an energy monopoly its decisions are monitored by the PRC (Public Regulation Commission).
WHAT IS THE PRC?
The Public Regulation Commission is an elected group of 5 commissioners from throughout the state. It oversees industries
from taxi companies to utilities. PNM’s decisions about how much renewable energy to use and how much fossil fuel, in
addition to how much it can charge customers is over seen by the PRC.
There are lots of utility-related “cases” that go before the PRC, and there are lots of players and factors. Here are a few
examples:
Renewable Procurement Plan
New Mexico has a Renewable Energy Act that requires investor-owned utilities to provide 15% of its energy from renewables
this year and 20% in 2020. However the law caps the amount any resident can pay for renewables at 3% of their bills. The
PRC implements this law. Each year PNM submits a Renewable Procurement Plan to the PRC to demonstrate how it will meet
the renewable law. This is NOT what will be discussed at tonight’s hearing.
Rate Case
PNM also has what is called a “Rate Case” before the PRC. Every few years PNM submits these cases to the PRC which then
decides how much PNM can charge its customers for energy. In this case PNM wants to increase residential rates, decrease
industrial users’ rates and among other things charge large fees to rooftop solar users. This case is also NOT what is being
discussed tonight.
WHAT IS TONIGHT’S HEARING ABOUT?
The hearing tonight is regarding PNM’s “abandonment” or “replacement” case. It’s not to discuss charges PNM wants to
impose on roof top solar or about the Renewable Energy Law. It IS to discuss how PNM should replace the energy that comes
from two of the four coal stacks they are shutting down at the San Juan Generating Station in the Four Corners Area.
WHY DOES PNM HAVE A REPLACEMENT CASE BEFORE THE PRC?
Groups including the Sierra Club sued PNM under the Clean Air Act’s Regional Haze Rule. The judge in the case ordered
EPA, The state, PNM and stakeholders to come up with a plan to comply. On February 15, 2013, Governor Martinez, PNM
and EPA announced an agreement to close San Juan Generating Station Units 2 & 3 (836 megawatts), install pollution controls
on Units 1 & 4, and reduce levels for nitrogen oxides and sulfur dioxides. With the closure of those two stacks, PNM created
a “replacement” plan for generating the energy that comes from the two units being retired.
WHAT’S WRONG WITH THIS REPLACEMENT PLAN?
Rather than putting local ratepayers, who want clean, affordable, reliable energy solutions like wind and solar, first, PNM
instead wants to force us to cover the costs of their dirty, expensive coal-fired power plant for years to come. The fact of the
matter is that PNM is risking the health and financial security of families across New Mexico by locking ratepayers into the
dirty, expensive San Juan Generating Station coal-fired power plant while fighting affordable clean energy solutions like
rooftop solar.
Bottom line: PNM’s proposed energy replacement plan for the San Juan Generating Station is MORE Coal, Nuclear, and Gas:
• Increased share of coal power capacity at San Juan Unit 4 by 132 megawatts (cost: $26 million)
• PNM owns a portion of three nuclear reactors at the Palo Verde Nuclear Plant in Arizona. Electricity from two of the reactors
is already part of their energy portfolio for New Mexico ratepayers. PNM is now seeking to add Palo Verde 3 (134 megawatts)
to the New Mexico ratepayer. (cost: $221 million)
• Build a new natural gas plant (177megawatts). (cost: $189 million)
• New solar: 40MW
Over the past few weeks, enormous risks to PNM’s plans to continue burning coal at the San Juan Generating Station have
emerged that would threaten the financial security for families, churches, small businesses and residents of New Mexico across
the state.
Just last month, PNM acknowledged that the cost estimate for their plan to continue burning coal at San Juan and other
expensive fuels had jumped by over $1 billion, with those costs likely being passed onto ratepayers like me. That’s according
to a report from the Santa Fe New Mexican. By locking our community into a future of more coal, we can expect more and
more expensive rate hikes that will threaten the pocketbooks of families across our state.
Across the region, cities and utilities are moving away from the San Juan Generating Station and safeguarding communities
from the growing risks. In Farmington, the home of the San Juan Generating Station, utility leaders announced earlier this year
that it would not acquire an increased portion of the plant due to the huge costs that would be passed onto the community.
TALKING POINTS
PROBLEM
PNM is risking the health and financial security of families across New Mexico by locking our community into the dirty,
expensive San Juan Generating Station coal-fired power plant while fighting affordable clean energy solutions. We deserve
better
-Our community faces enormous financial risks if PNM continues on a path toward more coal power. PNM acknowledged that
the total bill for their plan to increase their reliance on dirty coal and other expensive fuels had increased by over $1 billion. By
locking our community into a future of more coal, we can expect more and more expensive rate hikes that will threaten the
pocketbooks of families across our state.
-Across the region, cities and utilities are moving away from the San Juan Generating Station and safeguarding communities
from the growing risks. Even right here in Farmington, the home of the San Juan Generating Station, utility leaders announced
earlier this year that it would not acquire an increased portion of the plant due to the huge costs that would be passed onto the
community.
SOLUTION
New Mexico can and should be a clean-energy leader in our country. It’s time we seize this opportunity and commit to a future
powered by clean, renewable energy as we move beyond dirty, expensive coal plants.
CALL TO ACTION
Our state is at a crossroads: dirty coal or clean energy. It’s time to start building a clean-energy economy that puts New Mexico
families over big polluter profits.
New Mexico families and our community deserve a swift transition timeline from the San Juan Generating Station that protects
our health, our air and water now, and moves us towards more clean energy jobs to benefit our communities.
BENEFIT
By increasing the amount of power we get from clean energy like wind and solar, we can create good jobs for workers,
protect families and small businesses from expensive coal rate hikes, and secure a stronger future for our communities.
All while reducing our risky dependence on dirty, expensive coal-fired power plants.
IN SUMMARY
• We agree that San Juan coal units 2&3 should be closed
• We oppose PNM's plans to replace that power with more coal and nuclear, ie
o no to more coal power from San Juan unit 4, and
o no to more nuclear power from Arizona's Palo Verde unit 3.
• We want to see a significantly larger amount of renewables should be brought on line.
www.riograndesierraclub.org * 505.243.7767