PNM to Proceed with Regional Energy Market Participation; NMPRC Approves PNM Renewable Plan
ALBUQUERQUE, N.M.: The New Mexico Public Regulation Commission (NMPRC) yesterday unanimously approved an order pertaining to plans by PNM, the wholly owned New Mexico utility subsidiary of PNM Resources (NYSE: PNM), to join the Western Energy Imbalance Market (EIM) operated by the California Independent System Operator. The order governs the accounting treatment for costs related to joining the EIM. PNM is planning to join the EIM in 2021 and expects to seek recovery for these costs in future general rate cases, as the benefits from participation will reduce costs for customers under the existing fuel and purchase power clause.
PNM considered the costs and benefits of joining multiple regional organizations and determined that the EIM currently provides the greatest benefit to customers, including expanding opportunities for PNM to integrate additional renewable energy into its service territory. Through coordination with other EIM members, PNM will be able to facilitate greater utilization of renewable resources in New Mexico. When renewable energy production on the PNM system exceeds the amounts needed by its customers, PNM will be able to sell this excess energy to other EIM members and reduce customer costs by the amount of these sales.
The NMPRC also granted PNM unanimous approval of its 2019 Renewable Energy Act Plan on November 29, 2018, incorporating previously approved wind, solar and geothermal energy additions into customer rates. These renewable additions, which include 50 megawatts of solar facilities constructed in 2018, contribute to the 874 megawatts of existing and approved solar, wind and geothermal resources that PNM has planned to serve customers in 2021.
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2017 consolidated operating revenues of $1.4 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,580 megawatts of generation capacity and provides electricity to more than 773,000 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, Inc.’s (“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.