PNM, a wholly-owned subsidiary of TXNM Energy, has filed an Integrated Resource Plan application with the New Mexico Public Regulation Commission, detailing a selected portfolio of resources to meet growing customer demand, system reliability requirements, and state clean energy goals. This plan represents a significant step forward in PNM's energy transition journey.
The proposal advances PNM's transition to 100% carbon-free electricity under the Energy Transition Act, coinciding with a period of significant growth in the state's electricity demand. The plan explicitly includes adding wind, solar, and energy storage resources, and marks PNM's complete exit from coal-fired generation by 2031, a historic milestone for New Mexico.
To meet forecasted load growth and replace capacity lost from PNM's planned exit from the Four Corners Power Plant, the company is seeking regulatory approval for the following resources: 800 megawatts of wind, 240 megawatts of solar, 610 megawatts of battery storage, and 40 megawatts of natural gas peaking resources. An additional 50 to 250 megawatts of resources are being procured through a supplemental request for proposals and will be included in a subsequent filing in 2026. Collectively, these resources will enable PNM to achieve an 80% carbon-free electricity supply by 2032.
PNM forecasts a 40% growth in customer electricity demand by 2032, driven by load growth and the state's economic development efforts. The company's proposed new resources are designed to meet this demand growth while ensuring existing customers are not burdened with costs associated with new large-load customers.
In its filing to the NMPRC, PNM specifies that new large-load customers will be required to cover their incremental system costs and share a portion of existing system costs. Furthermore, PNM's investments in economic development sites will allow system costs to be spread over a larger customer base and enable the integration of more wind power, benefiting all customers.
The company will prioritize a subsequent filing to the NMPRC for the additional resources and a new 345-kilovolt transmission line designed to deliver the proposed wind resources to customers. By prioritizing the resources included in today's NMPRC application, customers will benefit from federal tax credits available under the Inflation Reduction Act before they expire.
PNM's resource selection process was conducted through a competitive request for proposals, with bids evaluated via a rigorous, competitive, and independently monitored process to ensure they meet system requirements, manage long-term costs, and support the transition to a cleaner, more resilient energy future.
Comments