ALBUQUERQUE, N.M.--(BUSINESS WIRE)--PNM Resources' (NYSE: PNM) New Mexico utility, Public Service Co. of New Mexico (PNM), today signed an executed letter agreement with Westmoreland Coal Company (Westmoreland) for the new coal supply contract for San Juan Generating Station (SJGS) previously announced on May 1. The combined new coal supply and SJGS ownership restructuring agreements will save customers approximately $300 million in fuel costs over the next six years. The company filed the agreement and other documents in response to a New Mexico Public Regulation Commission (NMPRC) order that requested comments on how the Commission should proceed in light of these agreements. PNM feels strongly the NMPRC has reason to approve the company’s request to add 132 megawatts of capacity in SJGS Unit 4, conditional upon final execution of the ownership and coal contracts by August 31, 2015.
Today’s filing included a resolution from the owners of the SJGS in support of PNM’s plans and a letter from Keith E. Alessi, Westmoreland CEO, urging the NMPRC to make a timely decision that enables Westmoreland to move forward with the transition of the mine. In the coming weeks, the NMPRC’s General Counsel will present a draft order for consideration by commissioners for a final vote on PNM’s SJGS Plan settlement agreement.
“PNM has worked diligently to find the best plan for the San Juan Generating Station that balances affordability, reliability, and environmental sustainability for our customers, along with minimizing the impact on jobs and the Four Corners economy,” said Pat Vincent-Collawn, PNM Resources’ chairman, president and CEO. “Our plan was already the lowest cost alternative, and now we have negotiated an even lower cost on behalf of our customers, if the NMPRC moves forward with our plans. It is up to the NMPRC now to determine whether customers will see these savings.”
The New Mexico Environmental Improvement Board unanimously approved the plan and EPA approval of the plan became effective November 2014. The plan complies with federal visibility regulations under the Clean Air Act.
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.