Transmission Grid Expansion Supports Renewable Investment in New Mexico
Albuquerque, NM /PRNewswire/ - Public Service Company of New Mexico (PNM), wholly-owned subsidiary of PNM Resources, Inc. (NYSE: PNM), has closed on its purchase of the Western Spirit transmission line and service under the Transmission Service Agreements has begun.
PNM announced on May 1, 2019 that it had entered into an agreement with affiliates of Pattern Energy Group 2 LP ("Pattern"), and the New Mexico Renewable Energy Transmission Authority ("NM RETA") to acquire a renewable transmission project, Western Spirit, which will support the development of new wind resources in eastern New Mexico.
NM RETA and Pattern partnered to develop and construct the Western Spirit transmission project, and PNM has acquired the project as planned. The capacity additions strengthen the existing PNM transmission system and provide upgrades to accommodate 800 megawatts of new wind energy.
"This project demonstrates one way New Mexico's renewable potential can be used to advance the state's economy, and it also highlights the critical need for transmission investment to achieve the clean energy future," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "We support NM RETA's goal to encourage renewable investment in the state and look forward to additional future opportunities."
PNM's acquisition reflects a $285 million net investment. Affiliates of Pattern will fully fund the investment through an incremental PNM wholesale transmission customer rate approved by the Federal Energy Regulatory Commission (FERC) with no impact to the rates of existing retail and wholesale customers of PNM. PNM also received approval for the acquisition from FERC and the New Mexico Public Regulation Commission.
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2020 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 3.1 gigawatts of capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iii) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, and (iv) the risk that the proposed transaction could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.