Athena Christodoulou Senate District 21 | Sierra Club Rio Grande Chapter
Public Regulation Commission (PRC) hearing examiners have recommended disallowing certain customer costs related to the Four Corners Power Plant. This decision comes as part of a 360-page report in Public Service Company of New Mexico's (PNM) rate case. The examiners suggest that PNM acted imprudently by extending its involvement in the coal plant beyond 2016 and proposed an $84 million disallowance.
PNM is seeking approval from the Commission for rates that include over $200 million in costs tied to the operation of Four Corners after 2016. These expenses arose after PNM decided to renew its stake following the expiration of a previous coal supply agreement. The prudence of these expenditures was initially questioned during PNM's 2016 rate case, but a final decision was deferred, leading to a settlement allowing partial cost recovery.
The current examination follows PNM's unsuccessful attempt in 2021 to transfer its 13% stake in Four Corners to NTEC, which owns the mine supplying coal to the plant. This transfer was rejected by the commission, and Sierra Club attorneys defended this decision successfully at the Supreme Court.
The commission will now review the Recommended Decision before making a final determination on both prudence and other rate issues. Sierra Club attorneys presented evidence against PNM’s decisions regarding Four Corners, arguing for significant disallowances based on financial analyses that were not effectively countered by PNM. "We expect the Four Corners recommendations to be adopted by the Commission, for the reasons that are given in the recommended decision," stated Sierra Club attorney Jason Marks.
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