Details hang over coal-free PNM plan
Cautious praise mixed with diverse concerns
Public Service Company of New Mexico’s plan to eliminate coal-fired generation from the grid by 2031 is drawing praise from environmental groups, but cautious reactions about what power will replace it.
The utility published a first draft on Thursday of its new integrated resource plan, a 20-year guideline that outlines the lowest-cost options for long-term power supply. It calls for shedding all coal-fired electricity at the San Juan and Four Corners power plants after coal contracts at those facilities expire, which for San Juan is 2022 and Four Corners 2031. PNM would replace lost power with a mix of solar, wind, natural gas and nuclear generation.
But environmentalists want to see just how much renewable energy PNM actually plans to add to the grid.
“We’re very glad to see the draft shows that moving away from fossil fuels and toward renewables is the cheapest thing for customers,” said Chuck Noble, attorney for the Coalition for Clean Affordable Energy. “It’s a good step in the right direction, but we still have concerns about replacement power. The plan calls for more renewables, but there’s still a fair amount of natural gas and other fossil fuels in there.”
Steve Michel, chief counsel for Western Resource Advocates, said PNM’s plan is consistent with findings by other utilities that coal generation is no longer economical.
“Those results make sense, and we’re pleased with the direction PNM seems to be going,” Michel said. “Still, it’s not entirely clear what replacement resources PNM envisions, so we’ll need to look at that.”
PNM will gather public comment before filing its plan in July with the New Mexico Public Regulation Commission. Nevertheless, the plan is just a guideline for actions needed to reach long-term goals, all of which will require open public hearings at the PRC.
“That’s where the rubber hits the road,” Noble said. “Those could end up being contentious processes.”
The Santa Fe environmental group New Energy Economy wants PNM to exit the Four Corners plant before 2031 even if it has to pay for breaking its coal-supply contract. Executive Director Mariel Nanasi said that’s PNM’s responsibility for staying in the plant in the first place.
“Thirteen more years of burning dirty coal is unacceptable,” Nanasi said.
Meanwhile, New Mexico Industrial Energy Consumers said it still wants to review the computer modeling and analysis that shows exiting coal is the lowest-cost option for ratepayers.
“Our members are dedicated to good environmental outcomes, but we also need to focus on rate affordability,” said Chief Counsel Peter Gould. “PNM hasn’t yet provided the studies behind its conclusions.”
All groups are concerned about economic impacts on the Four Corners area, which depends on coalrelated income.
“Market forces have brought us here, but it will mean a lot of lost jobs,” said Carla Sonntag of the New Mexico Utilities Shareholder Alliance.