#United States #PNM #TXNM Energy #Solar Power #Albuquerque

PNM Submits Plans for New Energy Resources by 2028

PNM, the wholly-owned subsidiary of TXNM Energy, has taken a significant step toward enhancing its energy capacity by submitting an application to the New Mexico Public Regulation Commission (NMPRC). The application outlines ambitious plans for integrating new energy resources, aiming for deployment by the summer of 2028. This move aligns with the state's commitment to transitioning toward cleaner energy sources, as mandated by New Mexico's Energy Transition Act.

Overview of the Proposed Resource Portfolio

The proposed plan expands upon PNM's existing resources and introduces a robust addition of 430 megawatts (MW) of solar and battery storage capabilities. PNM's forecast indicates that these new resources will meet the anticipated peak load requirements of its customers in 2028 effectively. The filing seeks various approvals to ensure these resources can be integrated smoothly and sustainably.

Key Components of the Application

The application includes several critical components:
1. Extension of Valencia Purchase Power Agreement (PPA): PNM requests an extension for 167 MW of energy through this agreement, which is set to extend through 2039, as the current term expires in 2028.
2. New Energy Storage Agreements (ESAs): The proposal includes adding 300 MW of capacity by developing two standalone battery storage facilities, each providing 150 MW.
3. Solar and Battery Storage Facility Addition: Proposed is a 130 MW facility that incorporates 100 MW from solar energy and 30 MW from battery storage. Additionally, there is an option to include another 20 MW of battery storage, showcasing PNM's commitment to scalable energy solutions.

Location and Financial Implications

The planned site for the solar and battery facility is in the Central Consolidated School District, an area previously home to the San Juan Generating Station, which ceased operations in 2022. PNM anticipates this portfolio will require a capital investment of approximately $220 million, potentially rising to $252 million should the supplementary 20 MW battery option be utilized. This investment represents a significant commitment to modernizing PNM's energy infrastructure while making strides toward fulfilling environmentally sustainable standards.

Approval Timeline and Next Steps

Pending approval from the NMPRC, PNM has requested that the commission addresses the resources within a nine-month timeframe. This request is crucial as it will shape the future energy landscape of New Mexico and ensure that PNM can meet its commitment to not just efficiency, but also to reduction in carbon emissions under state mandates.

Company Background

TXNM Energy (NYSE: TXNM) operates primarily from Albuquerque, New Mexico, and serves an extensive customer base encompassing over 800,000 homes and businesses in both Texas and New Mexico. The company's ongoing commitment to innovation and sustainability positions it as a key player in the evolving energy market. To find out more about TXNM Energy and its initiatives, visit www.TXNMEnergy.com.

With this application, PNM not only seeks to bolster its service offerings but also to set a precedent for other utilities in the region to embrace renewable energy solutions and adapt to the increasing demand for sustainable energy options.