April 1, 2020: On April 1, the New Mexico Public Regulation Commission voted 5-0 to approve Public Service Company of New Mexico's ("PNM") application to stop using the coal-fired San Juan Generating Station in June 2022, and to finance its remaining investment in the plant using low-cost bonds. The San Juan power plant is one of the largest polluters in New Mexico, generating massive quantities of air pollution and toxic coal ash each year. The Commission's decision means that 4 of the 5 co-owners of the San Juan plant are committed to closing the plant down in June 2022.
The Commission's April 1 decision also approves nearly $40 million in funding to workers at the San Juan plant and coal mine for severance and job retraining and to surrounding communities for economic redevelopment. Sierra Club strongly supports the job retraining and community assistance funding to mitigate the impact of closing the coal plant and mine.
PNM has a companion case pending before the Commission regarding what resources it will use to replace the energy from the San Juan plant. The administrative law judges presiding over that case have recommended approval of two solar and battery projects, and we are urging the Commission to adopt that recommendation and ensure that San Juan is replaced with clean energy. These two cases are yet more evidence of how, even while progress is stalled at the federal level on climate change, we are making progress at the state level to transition from fossil fuels to clean energy.
The Environmental Law Program has been deeply involved in the two cases before the Commission concerning whether PNM should abandon the San Juan coal plant and what resources should replace it. Sierra Club has also benefited from the expertise of its local counsel Jason Marks. Several allied organizations have also participated at the Commission, including the Coalition for Clean Affordable Energy, Dine Care, San Juan Citizens Alliance, and Western Resources Advocates.