PNM has reached an agreement to return $115 million to its customers as part of a settlement with advocacy groups. This financial benefit stems from the transition from coal to solar energy, including battery storage, and anticipated savings from Energy Transition Act bonds. The utility company had initially delayed issuing these bonds following the closure of the San Juan Generating Station in September, which were intended to refinance previous investments in the plant.

The move comes after significant pressure from climate and community advocates. Attorney General Raul Torrez and various advocacy groups played key roles in pushing for this resolution. Customers could potentially receive an average monthly credit of approximately $9.28 on their bills, labeled as “San Juan ETA Settlement Credit,” pending approval by the New Mexico Supreme Court.

Following two decisions by the Public Regulation Commission (PRC) that directed PNM to issue rate credits if it failed to release Energy Transition bonds, PNM has agreed to provide immediate credits for a year. This decision is expected to help replace coal-generated electricity with renewable sources and battery storage within affected communities.

Advocates emphasize compliance with legal requirements, including registered apprenticeships and customer savings from new energy developments for New Mexico consumers. Ona Porter of Prosperity Works criticized the lengthy litigation process, stating that "customers had to wait for a bill credit that was rightfully theirs over a year ago."

Ahtza Chavez, Executive Director at Naeva, highlighted how recent extreme weather underscores the necessity of policies like the Energy Transition Act. "The closure of the San Juan Generating station has allowed for a better quality of life for our communities," Chavez said.

Camilla Feibelman from Sierra Club Rio Grande Chapter noted that PNM's initial reluctance meant customers missed out on potential savings: "This settlement allows customers to see the savings that come from turning away from deadly coal and toward renewable energy."

Noah Long of NRDC commented on how this settlement aligns with goals set by the Energy Transition Act: "This proposed settlement will deliver to PNM customers the savings promised...by moving away from costly, unhealthy polluting fossil fuels—and toward clean energy."

Tom Solomon of 350 New Mexico praised this development as evidence that New Mexico’s Energy Transition Act is functioning as intended: “The proposed rate credit...will visibly ease energy costs...while we all enjoy cleaner skies and clean-energy jobs.”

PNM had initially indicated plans in 2020 to issue Energy Transition bonds upon closing San Juan but delayed until its next rate case. This delay led to continued customer payments at existing rates despite higher interest rates reducing potential savings.

Some fuel cost reductions have been observed since the plant's closure. Additionally, PNM has pre-funded $40 million designated for worker and community projects, though not all funds have been distributed yet.