PNM Resources acquires Texas coal plant

19 April 2006 -- PNM Resources completed its acquisition of the Twin Oaks Power facility April 18 -- the latest addition to the company's merchant generation fleet.

PNM Resources purchased Twin Oaks Power from Sempra Generation, a subsidiary of Sempra Energy, for $480 million in cash and arranged for bridge financing to close the transaction. Permanent financing will come through a mix of long-term debt and equity. The amount of equity issued will be sufficient to maintain the current investment-grade ratings of PNM Resources and its New Mexico utility, PNM. The company expects the issuance to be completed later this year.

Twin Oaks Power is considered to be one of the cleanest coal-fired power plants in Texas. The plant uses fluidized bed combustion technology and limestone injection to reduce nitrogen oxide and sulfur dioxide emissions.
The entire 305-MW output of Twin Oaks, which is located 150 miles south of Dallas, is sold under an existing contract through September 2007. When that contract expires, it will be replaced with another existing contract for 75 percent of the plant's capacity through 2010.

Earlier this month, the Luna Energy Facility in southern New Mexico went online and added 190 MW -- the company's share of the 570-MW plant -- to PNM Resources' merchant generation capacity. Luna is a combined cycle facility and PNM Resources' most efficient natural gas plant. The additions of Twin Oaks and Luna bring PNM Resources' total generation resources to 2,840 MW.

Sponsored by FLSmidth

Related Articles

Study: Mexico could install 12,000 MW of wind capacity by 2020

Total installed wind power capacity in Mexico will reach some 12,000 MW by 2020, or 15 percent of the country’s electricity mix.

AES plans solar energy project to power copper mines in Chile

AES Gener SA plans to build a $572 million solar farm in northern Chile as it seeks to boost electricity supply to copper miners in the Atacama Desert.

Follow Power Engineering on Twitter
Latest News

Legislature considers bill to tighten utility regulation

Bills that supporters say would tighten the rules governing the panel that sets Florida's ele...

Judge upholds sale of coal-fired power plant stake

A judge affirmed a Kentucky Public Service Commission ruling that approved a utility’s plan t...

Dominion Virginia Power to close coal ash ponds in state

Dominion Virginia Power is closing all its coal ash ponds in the state to comply with new sta...

Hearing examiner rejects utility's plan to raise rates

A state hearing examiner on Friday rejected a plan by New Mexico's largest electric provider ...

Nuclear decommissioning research center at Fukushima now open

A research center built to promote the decommissioning of the Fukushima Daiichi nuclear power...

Six coal units in PJM deactivated between April 1 and April 16

Five coal-fired units in Ohio of FirstEnergy (NYSE: FE) have been deactivated so far in April...

MATS dubbed ‘one of the most draconian environmental regulations ever’

The Environmental Protection Agency (EPA) Mercury and Air Toxics Standards (MATS) have now ta...

NRC OKs rule for packaging, transport of radioactive materials

The U.S. Nuclear Regulatory Commission (NRC) approved a final rule for the packaging and tran...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Power Industry Wire News

amp Trillium to Open Dalton, Georgia's First CNG Station This Summer

amp Trillium to Open Dalton, Georgia's First CNG Station This Summer

Aved Electro-Mechanical Box Build Is Optimized for Design and Manufacturability

Aved Electro-Mechanical Box Build Is Optimized for Design and Manufacturability

Nexamp Acquires Hancock Solar Project From EOS Ventures

Nexamp Acquires Hancock Solar Project From EOS Ventures

Dynapower Expands Energy Storage Capacity at Headquarters Micro-Grid by Adding 375 kW/250 kWh of Microvast Batteries

Dynapower Expands Energy Storage Capacity at Headquarters Micro-Grid by Adding 375 kW/2...

Trelleborg Partners With Landing String Solutions LLC in World's First Landing String Buoyancy Design

Trelleborg Partners With Landing String Solutions LLC in World's First Landing String B...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>