Cindy Nava Senate District 8 | Sierra Club Rio Grande Chapter
The Public Regulation Commission (PRC) has mandated that PNM provide rate credits to its customers following the closure of the San Juan Generating Station. The decision, made unanimously on June 29, asserts that PNM breached the Energy Transition Act by continuing to charge customers for expenses related to the coal plant after its closure. This ruling aligns with environmental and consumer groups who argued against these charges.
Ona Porter from Prosperity Works highlighted the financial impact of this decision: “The ruling means the average PNM customer will see a savings of more than $8 per month, and hundreds of dollars over the next 18 months.”
PNM had intended to continue charging for coal-related expenses post-closure in September, potentially leading to over $125 million in additional charges for ratepayers. The company is currently appealing this decision.
Earlier this year, PNM announced a delay in issuing Energy Transition Act (ETA) bonds until after filing its next rate case. These low-interest bonds are designed to reduce customer payments for stranded costs associated with the San Juan Generating Station and were expected to be issued upon exiting San Juan. Instead, PNM planned to extend customer charges up to 18 months beyond closure.
The PRC's directive includes issuing funds generated by ETA bonds immediately after closing the plant. These savings will also provide $40 million for affected communities and workers.
Public testimony last month saw many New Mexicans advocating for immediate transition benefits, including rate credits reflecting savings from removing coal from PNM’s energy mix and swift investment of ETA transition funds into local communities and workers impacted by these changes.
Stephanie Dzur, representing the Coalition for Clean Affordable Energy, remarked on the commission's decision: “The Energy Transition Act’s intent is carried out by the decision today. For those having a hard time paying their energy bills, relief is coming.”
Cara Lynch, attorney for CCAE and Prosperity Works, added: “PNM wanted to continue to charge New Mexicans for a coal plant the utility will be closing, hiding the benefits of switching from coal to cleaner sources of energy.”
