If you’re a PNM customer, check the line item on your bill titled “San Juan ETA Settlement Credit” for a credit of around $9.

The credits come as compensation for PNM’s delay in issuing Energy Transition bonds to refinance debt customers had been paying for San Juan Generating Station. Instead of issuing the low-interest bonds when the coal plant closed, PNM continued to collect its 10% rate of return on the debt from customers, who missed out on the lower interest rate. The Public Regulation Commission in 2022 ordered PNM to credit customers to reflect the savings the bonds would have brought, but PNM appealed and won a stay at the state Supreme Court.

In September, PNM settled with many environment and consumer groups (including our Coalition for Clean, Affordable Energy) to deliver about $115 million back to customers, resulting in bill credits of $9.28 for the average household. Those credits are appearing now!

The ETA bonds, enabled by the 2019 Energy Transition Act, were also to fund about $40 million in worker severance and community investment funding. PNM distributed $20 million to plant workers and to Westmoreland for mine workers’ severance, though the mining company and the associated labor union are in a dispute at the Labor Relations Board, so those workers have not yet received their funds.

The utility also sent $20 million to the state agencies in charge of disbursing it to community projects and other types of worker support. The Workforce Solutions Department has now distributed most of its $13 million in direct checks of $20,000 each to plant and mine workers.

A committee of Four Corners-area industry, tribal, and government representatives, called the ETA Committee, was tasked with recommending projects to be funded by the Economic Development Department and Indian Affairs Department ETA money.

Jason Sandel, chair of the ETA Committee, is operator of Aztec Well Co. and a booster of hydrogen and liquified natural gas as ways to prop up the gas industry. After almost a year of silence since the November 2022 meeting (the first since 2020), Sandel called a committee meeting in October, with no public notice but a proposed resolution with recommended projects already written.

Unfortunately, at that hastily called meeting, the ETA Committee voted 5-2 to accept Sandel’s recommendation that the Economic Development Department fund four high-budget, low-employment projects that potentially violate the spirit and letter of the ETA. Two of the projects, Big Navajo and Libertad, had proposed manufacturing methane-derived hydrogen, but after learning that the ETA prevents funding for projects related to fossil fuels, both companies claimed they would instead produce electrolytic “green” hydrogen, with no specifics on how. Big Navajo is based in Utah, and Libertad in Santa Fe. A third project is Kinetic Power, a pumped hydro project rumored to be intended for hydrogen-manufacturing facilities. The fourth recommendation was Sonoash, a Canadian company with little to no track record, proposing reclamation for coal ash.

Claims of job creation fall flat. SonoAsh says it will create six permanent jobs. Big Navajo predicts only 10-20 permanent jobs. Libertad, 40. Kinetic, 50. And these jobs would only come after years of funding searches, permitting and construction if the projects come to fruition at all.

There has been confusion over whether agencies must issue formal requests for proposals before awarding funds. The Indian Affairs Department initially announced funding awards to Shiprock Traditional Farmers Cooperative, Native Renewables, Diné Introspective, Northern New Mexico Indigenous Farmers and Diné Centered Research and Evaluation — but temporarily rescinded the awards after learning the agency and applicants may have to go through this additional step.

There’s still time for the Economic Development Department to invest its $6 million on smart community-driven projects like Native Renewables’ plan to install solar for off-grid Navajo families or the indigenous regenerative farming cooperatives — the types of projects the Energy Transition Act was meant to support.

Energy Transition Act Delivers $115 Million Back to PNM Customers as Deadly, Costly Coal Plant Closes and Renewables Take Hold

PNM agreed today to deliver $115 million back to PNM customers in a settlement agreement with advocacy groups. These savings come from switching from expensive coal to solar with battery storage and from expected savings from Energy Transition Act bonds. PNM should have issued bonds when the coal-fired San Juan Generating Station closed in September. The bonds were meant to refinance PNM’s previous investments in the plant that customers would otherwise still have to pay off after the plant was no longer producing electricity.

Now after months of pressure from climate and community advocates, PNM is doing the right thing. Thanks to the leadership of the Attorney General Raul Torrez and advocacy groups, customers may, if remanded back by the New Mexico Supreme Court to the PRC for approval, see an average monthly rate credit of around $9.28 on their bills titled “San Juan ETA Settlement Credit.”

After two PRC decisions ordering PNM to honor the intent of the ETA and issue rate credits if it refused to issue Energy Transition bonds, and a delay in the form of a Supreme Court appeal by PNM, the utility is doing the right thing and offering customers immediate credits for the next 12 months.

The ETA has led to 100% renewable and battery replacement for the San Juan Generating Station’s Coal generated electricity, all located in the impacted community to replace the property tax base of the plant. It led to millions of dollars in severance pay to plant and mine workers as well as funding for key community projects. Advocates continue to ensure utility compliance with the law in all cases.This includes the requirement that new energy built for New Mexico customers meets the required registered apprenticeships and appropriate customer savings.

Advocacy Groups Respond

“All of the arguments against paying what was due to customers in the PNM settlement disregarded the urgency of nearly half of its ratepayers who struggle every day to meet their basic needs,” said Ona Porter of Prosperity Works. “It is absurd that we had to spend so much time in litigation, and that customers had to wait for a bill credit that was rightfully theirs over a year ago.”

“This summer has been full of extreme heat and drought, showing just how much we need 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. Additionally, now PNM customers will benefit from the credit on their bills as a result of the move towards renewable energy.” Ahtza Chavez, Naeva, Executive Director

“PNM tried to withhold Energy Transition Act customers’ savings from the San Juan plant closure, but now we’ll each see our fair credit on our bills,” said Camilla Feibelman, Sierra Club Rio Grande Chapter director. “The PRC twice directed PNM in no uncertain terms to credit customers for the ETA bonds the company delayed, but instead, they kept collecting a 10% rate of return from customers rather than the $9 monthly savings they should have seen as a result of San Juan coal plant closing and the ETA. This settlement allows customers to see the savings that come from turning away from deadly coal and toward renewable energy.”

“This proposed settlement will deliver to PNM customers the savings promised in the Energy Transition Act by moving away from costly, unhealthy polluting fossil fuels—and toward clean energy,” said Noah Long Director, Western Region Climate and Clean Energy Program at NRDC (Natural Resources Defense Council).

“This is another great sign that New Mexico’s Energy Transition Act is working as planned, moving us toward 100% carbon-free electricity by 2045, while providing some measure of environmental justice to those affected by the clean-energy transition near the now-retired San Juan Generating Station, said Tom Solomon, co-coordinator of 350 New Mexico. “The proposed rate credit of $115 million over 12 months will visibly ease energy costs to PNM’s over 525,000 customers while we all enjoy the cleaner skies and clean-energy jobs that are coming with the transition. There ARE solutions to the climate crisis. This is what one of the biggest solutions looks like.”

Background

In the 2020 decision deciding replacement power for San Juan, PNM had indicated it would issue Energy Transition bonds at plant closing. The bonds would considerably lower the 10% rate of return customers had been paying on previous San Juan investments, lowering ratepayer costs as well as providing transition funding for coal workers and the community surrounding San Juan.

In 2022, PNM revealed it planned to delay bond issue until its next rate case, collecting customer payments at the current rate for an inoperative plant and keeping higher rates so the rate hike would not seem as steep. The Public Regulation Commission twice ordered PNM to issue immediate rate credits in the amount that would have been provided by the Energy Transition bonds — these would have averaged more than $8 a month until the next rate case. But PNM appealed and won a stay at the state Supreme Court. In the meantime, interest rates have increased, lowering the savings customers could recognize from securitizing PNM’s remaining debt in San Juan.

Customers have seen some savings from a reduction in fuel costs since the plant closed. And PNM has pre-funded the $40 million in worker and community funds, though not all of those funds have been distributed yet by the state.

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Featured image from 350 New Mexico

CONTACT: Camilla Feibelman, Sierra Club – Rio Grande Chapter, camilla.feibelman@sierraclub.org

NM Supreme Court Rules ETA Constitutional
Environmental, Community, Tribal, Faith Grassroots Groups Celebrate

SANTA FE, N.M. (Jan. 10, 2022) — The New Mexico Supreme Court today rejected New Energy Economy’s challenges to the constitutionality of the Energy Transition Act (ETA) and upheld the New Mexico Public Regulation Commission (PRC) decision relating to the coal-fired San Juan Generating Station. These rulings end months of delays in sending transition funds to communities and issuing bonds that will reduce customer costs.

The court rejected all of the remaining challenges to the constitutionality of the ETA and concluded that the state legislature properly exercised its authority to set energy policy when enacting the legislation. The court also rejected challenges to the PRC decision to approve a financing order for the transition costs associated with the PNM decision to abandon its interest in the San Juan Generating Station.

Among the positive outcomes resulting from the Energy Transition Act in its first two years are:

• Replacement of San Juan Generating Station coal with 100% solar and battery storage, providing $1 billion investment in impacted communities;
• PNM relied on the ETA and the PRC’s rejection of gas in the San Juan case to propose a 100% solar and battery replacement for the power served by its expiring lease at Palo Verde nuclear plant;
• PRC denied rate recovery for El Paso Electric’s proposal to expand Newman Gas Plant;
• All investor-owned utilities in New Mexico are on track to provide 40% renewable energy supply by 2025; and to fully decarbonize their energy portfolios by 2045 or earlier;
• Rate savings for customers resulting from the ETA’s low-cost financing of San Juan costs, and its renewable/battery replacement power, are millions less than what customers are paying today for those San Juan assets;
• Millions of dollars in funding for transitioning workers and the communities impacted most by polluting coal will now be able to flow into communities.

“This decision is welcome news. It clears away the obstacles that were keeping support from flowing to communities like Farmington, which desperately need assistance to help in the transition to post-coal economies. That includes funding for innovative clean energy projects that will be such an important part of our rebuilding.”
– Mike Eisenfeld, Energy and Climate Program Manager, San Juan Citizens Alliance

“NAVA Education Project thanks the New Mexico Supreme Court for making the decision today to affirm its constitutional responsibility to Navajo workers and communities by upholding the Energy Transition Act. Now that this legal barrier has been lifted, impacted communities will soon have access to the $40 million in Section 16 funding. This action will bring forward a strong diversified economy and emission-free electricity.”
– Joseph Hernandez, NAVA Education Project, Diné Energy Organizer

“We are thankful that the New Mexico Supreme Court upheld the ETA. We want healthy communities and  economic opportunities that are not fossil fuels based. This decision is a step in the right direction to secure a healthier  future for our communities.”
– Carol Davis, Executive Director, Diné C.A.R.E.

“The Energy Transition Act has led to 100% solar and battery replacement of coal power, billion-dollar investments in frontline communities, savings for utility customers and rejection of gas plants and other dirty energy. Today’s Supreme Court ruling affirms the law and allows us to finally move forward on a just climate transition in New Mexico.” 
– Camilla Feibelman, Sierra Club – Rio Grande Chapter, Director

“WRA is pleased the court has finally put to rest, and rejected, the bogus claims New Energy Economy made about the ETA. Unfortunately, NEE’s advocacy did not come without a cost to communities and workers, who had millions of dollars of important transition funds held up during the pendency of the appeal. The court’s decision now frees up this important funding for worker training and community assistance.”
– Steve Michel, deputy director of Western Resource Advocates’ Clean Energy Program

“This is a great victory for the New Mexico Energy Transition Act. Now all the promises that the ETA has can move forward and the much needed funding can be released to the Communities.  New Mexicans have waited too long for Environmental and Climate Justice to protect our New Mexico communities and our beloved and Sacred Land of Enchantment. Let the Energy Transition begin!”
– Terry A. Sloan, Director, Southwest Native Cultures

“Today’s ruling affirms that the New Mexico state legislature can establish critical clean energy policies like the Energy Transition Act. This legislative session, our state leaders should go even further by speeding up our transition to clean energy, setting binding pollution limits for every sector, and ensuring job opportunities and utility bill savings for working families.” 
– Noah Long, Western climate and clean energy program director at NRDC (Natural Resources Defense Council)

“The ETA was nation leading when it passed, allocating real life resources for community transition away from fossil fuel sources. The case against it delayed much-needed financial support for tribes, communities and workers in the transition from coal and brought uncertainty to clean energy projects. Now we can move ahead with building a zero emission economy for New Mexicans.”
– Demis Foster, Conservation Voters New Mexico’s executive director

“Today’s decision is an important milestone in our state’s transition away from fossil fuels and toward a clean energy future. It allows critical transition funding to start flowing into communities that have long-shouldered the burdens from a legacy of fossil fuel exploitation, while accelerating our ability to address the climate crisis.” 
– Kyle Tisdel, Climate & Energy Program Director with Western Environmental Law Center

“We are grateful that the ETA is continuing to empower communities toward clean energy and a new path forward with our economy. We need to continue to address climate change as we care for our communities and our sacred land, water and air.”
– Sr. Joan Brown, osf, Executive Director, New Mexico Interfaith Power and Light.

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Featured image from PxHere. 

Santa Fe, NM – After announcing it would drop one of its leases in the Palo Verde Nuclear plant last year, this month PNM proposed replacing the energy with 100% solar and battery. In support of its proposal, PNM cited the Energy Transition Act’s requirements and the Public Regulation Commission’s decision last year to choose a 100% solar/storage proposal rather than PNM’s favored gas-inclusive replacement scenario for San Juan Generating Station coal. The replacement proposal will need to be approved by the commission. 

In selecting carbon emission-free generation to replace Palo Verde, PNM states in testimony (see below) it has taken into consideration “the state’s energy transition policies and long-term mandate for a carbon emission-free generation portfolio.”  While we have yet to delve into all of the details of PNM’s application, this is very encouraging and we look forward to supporting PNM’s request for prompt approval of replacement resources.

“The Energy Transition Act is working, moving us steadily away from dirty energies and toward clean, affordable renewable energy.  PNM’s announcement that it wants to replace nuclear energy it holds in Arizona with all solar and battery storage is good for customers because it’s cheaper and it’s cleaner,”
said Camilla Feibelman, Sierra Club – Rio Grande Chapter Director 

“Our coalition advocates for clean and affordable energy. Last July, the PRC accepted our proposal for 100% solar and battery replacement for PNM coal at San Juan, and now we’re seeing the same encouraging steps to replace Palo Verde nuclear,”
said Stephanie Dzur, attorney for Coalition for Clean and Affordable Energy

More Details –

• PNM filed at the Public Regulation Commission seeking to exit ownership of 114 MW of its leased interest in the Palo Verde Nuclear Generating Station, located in Arizona. 
• PNM proposes replacing the nuclear capacity with 100% solar and battery resources:  450 MW of solar power purchase agreements and 290 MW of battery energy storage agreements. 
• PNM stated that customers will save money by replacing Palo Verde with reliable emissions free renewable generation and storage. 
• The new resources will include the Jicarilla Solar and Storage facilities, including 150 MW solar at the low price of $14.89/MWh (1.5 cents per kilowatt hour) paired with 40 MW of battery storage. 
• The Atrisco Solar facility is  300 MW of solar located on the westside of Albuquerque, paired with 150 MW of battery storage.
• The Sandia Peak storage facility is the last resource, a stand-alone battery storage system. 

PNM’s Mark Fenton – testimony supporting their decision cites the Energy Transition Act:

“IN ANALYZING POTENTIAL PORTFOLIOS FOR THE 2023 RESOURCE NEEDS, DID PNM TAKE INTO CONSIDERATION THE CHANGES IN ENERGY POLICIES THAT HAVE BEEN IMPLEMENTED IN THE PAST TWO YEARS? “

Yes. PNM took into consideration the state’s energy transition policies and the long-term mandate for a carbon emission-free generation portfolio. PNM also took account of the Commission’s decision in approving a replacement resource portfolio for the San Juan coal plant, which was issued after PNM notified the lessors of its intent to turn back the PVNGS leases. In Case No. 19-00195-UT, the Commission applied Energy Transition Act provisions that provided policy guidance for weighing costs, reliability and environmental factors in resource acquisition cases, in the final selection of an all renewable and energy storage resource portfolio over PNM’s proposed portfolio that included new gas combustion resources. PNM also recognizes that the Commission places significant weight on the ability over the long-term to comply with statutory energy transition standards for portfolios, as was emphasized in the Commission’s decision to deny approval of a proposed new natural gas resource for El Paso Electric Company in Case No. 19- 00349-UT.”

On Wednesday, the New Mexico Public Regulation Commission unanimously denied El Paso Electric’s request to build a 228-MW natural-gas generator, citing EPE’s failure to consider the requirements of the Energy Transition Act.

The air quality in communities around the plant, including Chaparral, NM, and northern El Paso County, already violates federal standards for ozone and other dangerous pollutants. The additional generator would have increased those dangerous levels. While it is not clear how El Paso Electric will respond, EPE will have to decide whether it still makes sense to go forward with the project for only its Texas customers. A coalition of local groups is urging the El Paso City Council to use its legal authority to reject the plant entirely on a municipal level.

More than 1,200 New Mexicans submitted comments opposing EPE’s polluting generator to the PRC. A broad community coalition, including Chaparral residents, Sunrise El Paso, neighborhood faith leaders of Interfaith Power and Light, Earthworks, Vote Solar and Sierra Club Rio Grande Chapter, worked together to raise the voices of families who want clean-energy development and healthy air for their children to breathe.

“The Coalition for Clean Affordable Energy demonstrated that had El Paso Electric properly evaluated its proposed resource in light of the ETA, it could have selected a better, cheaper and greener alternative. We commend the PRC for protecting its ratepayers from higher costs and more pollution by requiring compliance with the Energy Transition Act,”
said CCAE attorney Stephanie Dzur. CCAE was one of the intervenors in the case.

“The NMPRC saw right through El Paso Electric’s bad-faith arguments. As El Pasoans, we appreciate the Commission’s decision to prioritize clean energy over dirty fossil fuels in this time of climate crisis. We hope to see the similar decisions being made by our leaders here in El Paso,”
said Sunrise El Paso organizer Angel Ulloa.

“El Paso Electric’s Newman 6 fracked-gas fueled power plant proposal disregards widespread community opposition, local health impacts, and the worsening climate crisis. Hopefully the El Paso City Council will follow NMPRC’s lead and act to block it as well.”
Earthworks, West Texas Field Associate, Miguel Escoto

“Rejecting this polluting plant would be a win for our community, especially for the colonias in southern Doña Ana County and northern El Paso County, as they are most impacted by this dirty generating station,”
said Sierra Club Rio Grande Chapter Southern New Mexico organizer Antoinette Reyes.

“We need to continue to consider our communities’ health and care of God’s creation and climate change that affects the most vulnerable and future generations as we make decisions about energy production. New Mexico Interfaith Power and light is grateful that the Public Regulatory Commission took these ethical and moral concerns into consideration in their decision that affects our brothers and sisters in frontline communities of Chaparral and South East New Mexico,”
said Sister Joan Brown, osf, Executive Director New Mexico Interfaith Power and Light.

The commission accepted hearing examiner Elizabeth Hurst’s recommendation to deny EPE’s request. Hurst agreed with our Coalition for Clean Affordable Energy that the plant was not in the public interest.

Please thank your PRC commissioners by writing a quick personal note to them at these email addresses: 

Valerie Espinoza: Valerie.Espinoza@state.nm.us
Cynthia Hall: Cynthia.Hall@state.nm.us
Jefferson Byrd: Jeff.Byrd@state.nm.us
Theresa Becenti-Aguilar: T.Becenti@state.nm.us
Stephen Fischmann: stephen.fischmann@state.nm.us

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Contact:
Camilla Feibelman, 505-715-8388

Our members and supporters have worked hard to ensure a speedy transition to renewables in the light of the climate crisis and a just transition for workers and communities as the coal economy collapses. The Energy Transition Act represented an innovative path forward supported by the public, the legislature, the Governor, the Navajo Nation, and now the Supreme Court.

For the same savings to customers, the ETA provides millions in transition funding to workers and the community and much higher renewable standards.

Camilla Feibelman, Sierra Club – Rio Grande Chapter director

On Wednesday, the New Mexico Supreme Court made a quick and unambiguous ruling that the Public Regulation Commission must apply the law of the land — last year’s landmark Energy Transition Act — to PNM’s case to retire San Juan coal plant.

Statement from Sierra Club Rio Grande Chapter Director Camilla Feibelman:

Tuesday afternoon, the New Mexico State House passed SB489, the Energy Transition Act, sending this landmark legislation to Gov. Michelle Lujan-Grisham’s office. Nearly 1,000 New Mexico Sierra Club supporters contacted their legislators in support of this life-saving and economy-fueling legislation.

“Passage of the Energy Transition Act gives great hope to New Mexico and everyone who wants a livable future on our planet.,” said Camilla Feibelman, Sierra Club Rio Grande Chapter director. “ The world’s top scientists tell us we have only 12 years to take transformative action to prevent the worst consequences of climate disruption. The Energy Transition Act is an innovative and powerful answer to that clarion call. This is a significant win for New Mexico ratepayers, our environment, workers and communities in the Four Corners region who will have new opportunities to participate in our growing clean energy economy.”

“Moving to a clean-energy economy shouldn’t mean leaving behind the people who have worked to keep our lights on for decades,” said David Coss, Sierra Club Rio Grande Chapter chair. “This legislation addresses the economic, environmental and justice impacts of retiring San Juan Generating Station. It creates funding to ensure that the Four Corners community isn’t left in the cold in a post-coal economy. It replaces the lost tax base in San Juan County, and it creates a safety net for mine and plant workers, who shouldn’t have to pay for PNM’s pollution.”

“The ETA supports a robust and independent renewable-energy sector that will diversify and expand New Mexico’s economy” Feibelman said. “This is exciting and transformative legislation that elevates New Mexico to a renewable-energy leader,” Feibelman said.

Renewable-portfolio standards are credited with bringing down solar and wind costs by more than 70 percent just since 2009, and it turns out that they have brought down bills, too. Studies show that states with renewable standards have lower average electric bills.

“Gov. Lujan Grisham, Sens. Candelaria, Stewart and Ortiz y Pino and Reps. Small, Roybal-Caballero and Egolf all deserve kudos for looking into the future and acting with vision. Sen. Candelaria especially stewarded this bill from one that benefited mostly PNM to one that is a true win-win-win-win for ratepayers, PNM, the Four Corners community and humanity.”

“Most importantly, this bill is simply a necessity to preserve our quality of life for our children and grandchildren. This truly is life-saving legislation,” Feibelman said.

Background:

The Energy Transition Act lowers electric rates, provides significant reinvestment in the Four Corners community, ensures San Juan coal plant is retired, and creates a safety net for coal workers. It also requires 100% carbon-free electricity from New Mexico’s investor-owned utilities by 2045.

Labor and community groups like AFSCME, Building Trades and Somos Un Pueblo Unido join the Sierra Club and other environmental groups in enthusiastic support.

Here’s what the Energy Transition Act does:

— Requires 50% renewable energy in New Mexico by 2030; 80% by 2040; and 100% carbon-free energy by 2045. Those mandates are for our state’s investor-owned utilities (PNM, El Paso Electric and Southwestern Public Service). Co-ops get five years longer to comply. That is huge progress toward protecting our children from the biggest crisis facing humanity: climate change.

— Stops the pollution from coal-fired San Juan Generating Station for good by requiring that the facility meet pollution requirements that coal plants are unable to meet. Without this legislation, there is a possibility that this plant could remain open. No other bill or scenario requires the plant to stop burning coal.

— Provides significant reinvestment in the Four Corners community. This is why this legislation exists. Low-rate financing of the costs customers are already paying for San Juan creates funding to reinvest in workers and the community. The Energy Transition Act directs $20 million to San Juan County economic development and requires 450 MW of replacement power in the same school district as the plant to replace the lost property taxes.

— Provides a safety net for San Juan plant and mine workers. The ETA provides another $20 million in severance payments and retraining for the plant and mine workers. Again, securitization provides funding to ensure an equitable transition for workers. Without this bill, there will be no means to take care of employees who have worked hard to keep our lights on all these years. This is unavailable at the PRC.

— Creates an apprenticeship program to develop the workforce of the future. The bill enacts an apprenticeship program for new energy-construction projects that requires prioritization of participants from diverse and disadvantaged communities and creates a committee with representatives from impacted communities to determine standards and rules for implementing those goals.

— Lowers rates. Yes, the Energy Transition Act would LOWER PNM customers’ current bills. This is another benefit of securitization. This bill refinances costs PNM customers are already paying. They would continue to pay them until 2053 if San Juan didn’t close. Non-PNM customers’ rates won’t be affected — except that more renewables will likely mean lower fuel costs and lower bills.

When PNM or other utilities build power plants and invest in them (for new equipment or pollution controls, etc.), it’s a bit like making a loan to ratepayers, and the PRC authorizes PNM to put those costs into rates, plus a rate of return of about 10%. The Energy Transition Act would allow PNM to sell low-interest bonds to recoup the principle on its San Juan investments at 2-3% instead of the roughly 10% customers are currently paying. PNM gets its principle back but loses the entire 10% return. That’s a loss of about $16 million in profit yearly on this deal.

— It makes it much less likely that PNM will replace San Juan coal with gas. The bill’s renewables requirements make PNM much more likely to replace San Juan coal power with renewable energy, but there’s also language in the bill requiring replacement power to be the most environmentally friendly and cost-competitive option, meaning the PRC is more likely to reject gas as a replacement source if the Energy Transition Act passes.