"The combination of these plans with our planned exit from Four Corners demonstrates the comprehensive approach within our ESG strategy to do what's right for customers, employees, communities and the environment," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "Our accelerated exit from coal and utilization of securitization financing provides customer savings and financial support to communities, including the Navajo Nation, and now the plan for seasonal operations achieves environmental benefits while preserving the community's jobs and royalty payments. I'm proud of our team who continued to collaborate with all of the parties to address the overall needs of each of the owners and achieve these additional benefits."
In November 2020, PNM announced it had reached an agreement to transfer its 13 percent plant ownership to the Navajo Transitional Energy Corporation (NTEC) at the end of 2024, unlocking the potential for PNM to realize significant savings for its customers through the replacement of this capacity with cleaner energy resources. The exit agreement also allows PNM to fully exit coal in support of its industry-leading goal of emissions-free energy by 2040, five years ahead of the carbon-free mandate included in New Mexico's Energy Transition Act.
Following the announcement, PNM continued to negotiate on the future operation of the plant with NTEC and the other plant owners to achieve the owners' individual reliability needs and sustainability goals, in consideration with a just energy transition for the Navajo Nation. The collaborative solution for seasonal operations ensures the plant will be available to serve each owners' customer needs during times of peak energy use while minimizing operations during periods of low demand. This approach results in an estimated annual 20 to 25 percent reduction in carbon emissions at the plant and retains jobs and royalty payments for the Navajo Nation.
The Four Corners Power Plant has been an important resource for reliable electricity for nearly 60 years, particularly for areas of high summer demand across the western United States. The installation of selective catalytic reduction (SCR) equipment at the plant in 2018 has reduced annual nitrogen oxide emissions by 88 percent. The plant is also a critical piece of the Navajo Nation economy.
PNM currently has a 13 percent ownership stake in the 1,540-megawatt plant. These 200 megawatts comprise less than 10 percent of PNM's total energy portfolio and reflect the last of PNM's remaining coal-fired generation capacity following the approved retirement of the coal-fired San Juan Generating Station in 2022.
PNM filed with the New Mexico Public Regulation Commission (NMPRC) in January 2021 for abandonment and securitization of its share of the Four Corners Power Plant. The Hearing Examiner in the case recently directed PNM to amend its filing with supplemental testimony by March 15, 2021. In its amended filing, PNM will include information pertaining to the new agreement for seasonal operations and its environmental benefits. In accordance with the Hearing Examiner's order, the nine-month review period for the proceeding will be reset with the amended filing.
PNM's regulatory proceeding for the abandonment and securitization of the Four Corners Power Plant is separate from the NMPRC docket for approval of PNM's merger with Avangrid. PNM Resources continues to anticipate receiving all required federal and state approvals and closing the merger in the second half of 2021.
Additional materials pertaining to PNM's filing for Four Corners abandonment are available at
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2020 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 2.8 gigawatts of capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iv) the possibility that PNMR's shareholders may not approve the Merger Agreement, (v) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, (vi) risks related to disruption of management time from ongoing business operations due to the proposed Merger, and (vii) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.