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PNM Resources (PNM) Adds Wind Capacity, Buys Western Spirit

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A subsidiary of PNM Resources, Inc. PNM, Public Service Company of New Mexico, has completed the purchase of the Western Spirit transmission line for a net investment of $285 million. PNM’s unit inked this deal in May 2019 with the affiliates of Pattern Energy Group 2 LP and the New Mexico Renewable Energy Transmission Authority.

This acquisition will support the development of new wind resources in eastern New Mexico and assist in transmitting 800 megawatts of new wind energy.

Other Clean Energy Goals

PNM Resources has a long-standing expertise in fulfilling environmental regulations and is focused ondeveloping cost effective power generation units to provide reliable and affordable power. PNM announced Wired for the Future program to enhance current investments and support grid resilience. For 2021, it plans to invest $293 million in strengthening its transmission and distribution line.

PNM Resources is focused on exiting coal-fired generation by 2024 and targets an emissions-free generating portfolio by 2040 to bring cleaner energy sources to the production portfolio. The goal of PNM is to become carbon neutral before 2045. New Mexico Legislation passed the 100% carbon-free electricity target. In sync with this, PNM will target an early exit at the end of 2024 from the Four Corners Power Plant and expects an approval for the early retirement of the same in the fourth quarter of 2021.

Other electric utilities also adopting measures to supply clean and reliable energy to their customers include Duke Energy DUK, Xcel Energy XEL and Alliant Energy LNT. While XEL carries a Zacks Rank #3 (Hold) at present, LNT and DUK hold a Zacks Rank #2 (Buy) each. All three stocks are planning to provide absolute clean energy by 2050.

The long-term (three-five) earnings growth rate for DUK, XEL and LNT is pegged at 5.3%, 6.4% and 6.1% each. The dividend yield of Duke Energy, Xcel Energy and Alliant Energy is 3.9%, 2.8% and 2.7%, respectively. Earnings surprise delivered by DUK, XEL and LNT in the last four quarters is 2.3%, 2.1% and 4.4% each, on average. The Zacks Consensus Estimate for 2022 earnings of Duke Energy has moved 0.2% up in the past 60 days while that of Xcel Energy and Alliant Energy has remained stable.

Zacks Rank & Price Performance

In the past three months, shares of this presently Zacks Rank #2(Buy) player have lost 8.7% against the industry’s rise of 2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Three Months Price Performance

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Xcel Energy Inc. (XEL) : Free Stock Analysis Report

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Alliant Energy Corporation (LNT) : Free Stock Analysis Report

PNM Resources, Inc. (PNM) : Free Stock Analysis Report

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