The Public Service Company of New Mexico (PNM) is advancing its integrated resource plan (IRP), proposing new renewable energy and gas generation projects to meet anticipated increases in electricity demand. Recently filed with the New Mexico Public Regulation Commission, the plan seeks approval for the addition of three solar and battery storage projects, as well as a decade-long extension of a contract with a natural gas plant. According to PNM, these initiatives would elevate the utility’s generation portfolio to 77% carbon-free by 2028, aligning with the state’s broader goals of transitioning to cleaner energy sources by 2040. PNM President and CEO Don Tarry emphasized the need for added power to address the growing customer base and highlighted the importance of supporting the Farmington area’s economy through these energy transitions.
Among the proposed projects are two four-hour battery storage facilities in Bernalillo County, dubbed Corazon and Sun Lasso Storage, both set to have a capacity of 150 megawatts. These facilities are expected to come online by late 2027 and early 2028. Additionally, PNM has put forth the Sunbelt Project, a $252 million initiative designed to generate 100 megawatts of solar power along with up to 50 megawatts of battery storage in the Four Corners region, aiming for a late 2027 operational timeline. These additions not only aim to enhance PNM’s renewable energy capabilities but also address the economic challenges faced by the Four Corners area following the closure of the San Juan Generating Station.
The Energy Transition Act of 2019 plays a crucial role in PNM’s planning, as it mandates the creation of 450 megawatts of replacement resources in regions impacted by coal plant closures. Although PNM has incorporated only 300 megawatts of such resources thus far, the proposed Sunbelt project is positioned to fulfill the remaining capacity needs. However, this planning hasn’t been without controversy. Earlier this year, a group of state legislators accused PNM of breaching the Energy Transition Act due to its focus on solar and battery resources in Albuquerque while neglecting necessary developments in the Central Consolidated School District, which has struggled financially post-coal plant closure.
Furthermore, PNM’s proposed projects do not reference the Rancho Viejo Solar initiative, which has met significant resistance from local residents and has faced delays. Originally intended for operation in 2026, the timeline has been repeatedly pushed back due to ongoing legal battles.
In conjunction with these developments, PNM has also engaged in a settlement regarding a pending rate case, having reached an agreement with various stakeholders, including trade groups, consumer advocates, and government representatives. Initially seeking a significant rate increase of over $23 for average residential bills by April 2026, PNM has now agreed to a modified proposal that would result in only a $10 monthly increase over the same timeframe. With the aim of expediting the approval process, this settlement could circumvent protracted hearings in front of the Public Regulation Commission.
Overall, PNM’s plan indicates a commitment to both expanding renewable energy resources and fulfilling legal and economic obligations associated with energy transitions in New Mexico. As community stakeholders and regulators consider the proposals, the efficacy of PNM’s strategy in delivering renewable energy to meet customer demand while adhering to state mandates will be closely monitored. The complexity of integrating renewable resources within existing economic frameworks poses ongoing challenges, as PNM navigates regulatory processes and community sentiment in its drive toward a carbon-free future.