Dive Brief:
- PNM Resources, parent company to Public Service Company of New Mexico, told shareholders and concerned environmentalists that it is committed to furthering renewable energy, but not at the expense of grid reliability and unreasonable costs.
- Environmental advocates, out in protest at the utility's shareholders meeting this week, want the utility to use renewable generation alone to replace lost generation from the San Juan coal-fired station in New Mexico.
- Half of the plant is scheduled to retire to fall in line with federal emissions regulations. PNM has said it will replace the lost generation with either nuclear or natural gas, as well as some solar generation.
Dive Insight:
"Measured but significant steps forward" are more sensible than going full-steam ahead with large-scale renewables projects, PNM CEO Pat Vincent-Collawn said. “We live in a poor state, and cost is a concern for most of those we serve. And while the costs are coming down, renewable generation technology is still expensive on a large scale, and too much can reduce reliability.”
Environmentalists argue that investing in fossil fuels defeats the purpose of bringing the coal plant offline in the first place.
Vincent-Collawn said the utility understands these concerns. “We all want the same thing – reliable, affordable and environmentally responsible energy,” she said. “We just disagree about the best ways to do it.”
PNM is already adding renewable generation to its portfolio to comply with state standards: 100 MW of solar generation projects are expected to come online by 2016, as well as New Mexico's first geothermal plant, which will come online later this year. The utility also expects to double its wind capacity in 2015.