PNM, a wholly-owned subsidiary of TXNM Energy, has issued a Request for Proposals (RFP) for at least 900 megawatts (MW) of new energy resources to come online between 2029 and 2032 to serve customers in New Mexico, with at least 500 MW sought by 2030.
The utility says the all-source RFP is consistent with resource needs identified through its 2023 Integrated Resource Plan, which identifies a range of 900 – 2,900 megawatts of new capacity needed by 2032, depending on the type of resources selected.
PNM has been integrating new resources into its portfolio, growing its capacity from 2,816 MW in 2020 to 4,268 MW in 2024, to match the growth in system demand and the transition to carbon-free resources. New solar, wind, and battery storage capacity has transitioned PNM’s portfolio to 72% carbon-free, according to the utility.
During 2024, PNM received approval from the New Mexico Public Regulation Commission (NMPRC) to add 410 MW of new solar and battery storage resources in 2026 and filed a request with the NMPRC to extend a purchase power agreement and add another 430-450 MW of solar and battery storage resources in 2028.
In addition to meeting the anticipated growth in system demand, PNM plans to exit its minority ownership from the coal-fired Four Corners Power Plant when its current agreements expire in 2031. The 2029-2032 RFP is anticipated to identify potential replacement resources for this plant along with current natural gas generation capacity. The plant near Fruitland, NM, began generating power with Units 1 and 2 in 1963. Units 4 and 5 were commissioned in 1969 and 1970, respectively. PNM originally planned to exit from its ownership stake in 2024.
Additionally, PNM demolished the smokestacks of the coal-fired San Juan Generating Station in August 2024, representing the end of an era for the massive coal-fired plant, located near Farmington, New Mexico. The plant, which PNM had operated for decades, provided power for much of the state. The shutdown of San Juan Unit 4 in September 2022 followed the retirement of Unit 1 in June of that year. The coal-fired plant had four units but was reduced to two in 2017, with the closure of Units 2 and 3. The plant first came online in 1973.
Any proposed resource replacements or additions are subject to review and approval by the NMPRC through a separate application.
At the beginning of 2024, Iberdrola subsidiary Avangrid terminated a planned merger agreement with PNM Resources, citing delays and lack of regulatory approval. Under the proposal, first announced in 2020, Avangrid would have acquired PNM Resources and its two utilities — Public Service Co. of New Mexico and Texas New Mexico Power. The all-cash transaction was valued at more than $4.3 billion and would have opened the door for Iberdrola and Avangrid in a state where more wind and solar power could be generated and exported to larger markets.
The utilities said the merger would have brought more than $300 million in benefits to PNM customers. PNM had argued the merger would provide it with greater purchasing power to help move it closer to its carbon-free goals. However, the New Mexico Public Regulation Commission rejected the proposal in 2021, citing concerns about Avangrid’s reliability and customer service track record in other states where it operates. PNM Resources then filed a notice of appeal with the New Mexico Supreme Court.
Avangrid said the group needed to receive approval for the merger from regulators by the end of 2023. The company said Dec. 31 was the date that either Avangrid or PNM could terminate the merger agreement if it had not yet been finalized.
Originally published in Renewable Energy World.
