The power plant which has over 2 million customers to whom it supplies coal has announced good news that says it has coal to go through the year 2022. The announcement made by the owners of power plant is beneficial for the Southwest region customers.
Public Service Company of New Mexico and mining company BHP Billiton made the announcement Friday, saying “documents outlining the agreement as well as details about the future ownership makeup of the plant were being filed with state regulators.”
The present coal agreement of San Juan power generating station perishes in the year 2017. There are several news circulating in the market regarding San Juan power plant. Many sources say that fresh Mexico regulators are looking forward to close some portion of the San Juan plant and thinking to move to other sources of generating electricity; may be these will turn out more profitable.
“Securing these two agreements provides clear evidence of our ability to execute our plan for the San Juan Generating Station that is in the best interests of our customers, the New Mexico economy and environment,” Pat Vincent-Collawn, PNM Resources’ chairman, president and CEO, said in a statement.
“Assuming these agreements are in place, inked and ready to go, and then we’ll have to give other parties in the case a chance to look at them,” Jones said. “We could key up another hearing for parties to review the contracts and ask questions.”
The closure of San Juan’s two working units are expected by the year 2017, PNM is hoping to get more ownership percentage.
“PNM’s statements on their new draft proposals do nothing to address the already enormous cost increases of the plan, the plummeting support for their proposal, or resolve question over who will even own the plant after 2022,” said Nellis Kennedy-Howard of the Sierra Club.
The plan of PNM has throughout remained the most low cost option for the customer. The cost for 20 years is expected to be around $6.8 billion said the regulatory filings.
“We still don’t support it because PNM is adding coal capacity, which is more costly than other alternatives available to the company,” said Chuck Noble, attorney for the Coalition for Clean Affordable Energy.
