PNM Resource PNM announced that its unit, PNM, received approval for the abandonment and securitization of the San Juan Generating Station from New Mexico Public Regulation Commission (NMPRC).
Under the Energy Transition Act (ETA), the company filed the application on Jul 1, 2019. The company will close the coal plant after the expiration of the participation and coal supply agreements in June 2022. PNM Resource is focused on exiting from its coal-fired generation by 2031 and bring cleaner energy sources to its production portfolio. In sync with the same, the company will target an early exit from the Four Corners Power Plant.
Transition to Clean Generation
The company is focused on increasing its clean generation. Its renewable procurement strategy includes utility-owned solar capacity, wind and geothermal energy. PNM Resources has a long-standing expertise in fulfilling environmental regulations. The company is focused on developing cost effective power generation units to provide reliable and affordable power. It plans to have an emissions-free generating portfolio by 2040.
PNM Resource plans to add 3,630 megawatt (MW) under the cumulative capacity addition plans through solar, wind and battery storage from 2023 to 2038 based on San Juan replacement scenario. Not only PNM Resource, other Utility - Electric Power companies like Xcel Energy XEL, NextEra Energy, Inc. NEE and Ameren Corporation AEE among others are undertaking initiatives to produce more electricity from renewable sources.
Per a report by the U.S. Energy Information Administration (EIA), in 2019, about 4.12 trillion kWh electricity was generated at utility-scale electricity generation facilities in the United States, of which 18% was from renewable energy sources. Another report of EIA says that electricity generation from renewable energy sources will rise to 19% in 2020 and to 21% in 2021. The increase in renewables share is the result of additions to wind and solar generating capacity.
PNM Resource is focused to add more wind and solar to its portfolio either through generation or through signing power purchase agreements (PPAs). As of Dec 31, 2019, under its existing PPAs, 356 MW, 80 MW, and 15 MW renewable energies are produced from wind, solar-PV and geothermal facilities, respectively, with expiration dates beginning in December 2034 through December 2046. The company will gain from its inclination toward clean generation with rising contribution from renewables in the next few years.
Zacks Rank & Price Performance
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has lost 16.3% in the past year compared with 12.2% decline of the industry it belongs to.
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