New Mexico Supreme Court upholds New Mexico Public Regulation Commission denial of PNM application for abandonment, securitization of Four Corners Coal Plant
ALBUQUERQUE, N.M., July 7, 2023 /PRNewswire/ -- The New Mexico Supreme Court (Court) issued a decision yesterday to uphold the New Mexico Public Regulation Commission (NMPRC) decision to deny the application by Public Service Company of New Mexico (PNM), a wholly owned subsidiary of PNM Resources (NYSE: PNM), to abandon, sell and securitize its minority interest in the Four Corners Power Plant and affirmed the NMPRC's decision to defer resolution of prudence issues for PNM's prior investments in the plant.
In its application, PNM brought forth a plan to exit its 13% minority ownership (200 megawatts) in the coal-fired plant through a sale to Navajo Transitional Energy Company (NTEC) at the end of 2024. The NMPRC order delays PNM's exit from coal until possibly 2031, when current ownership and coal supply agreements expire, and postpones savings for customers as well as significant annual carbon emission reductions from the plant through seasonal operations.
The NMPRC's final order, upheld by the Court, provides an option for PNM to file a new application identifying proposed replacement resources. PNM will review the decision and determine next steps.
The Court's decision and additional materials pertaining to the application for abandonment and securitization are available at https://www.pnmresources.com/investors/rates-and-filings.aspx.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2022 consolidated operating revenues of $2.2 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to more than 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 2.7 gigawatts of capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies, including the unaudited financial results and earnings guidance, 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 and apply only as of the date of this report. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP'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. Additionally, there are risks and uncertainties in connection with the proposed acquisition of the Company by Avangrid, Inc. (the "Merger") which may adversely affect the Company's business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any remaining required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iii) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, and (iv) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
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SOURCE PNM Resources, Inc.
