Changes to modeling data does not impact the recommended scenario

(ALBUQUERQUE, NM) – On July 1, PNM filed four scenarios with the New Mexico Public Regulation Commission to replace the power from the San Juan coal plant. The four scenarios provided regulators, customers and stakeholders with distinct ways that the power could be replaced based on the diverse needs of our community.

As part of the normal filing process, PNM responds to requests by independent parties in which the company proactively reviews and assesses its models and data inputs. Throughout this process, PNM identified an error with its July 1 modeling data. PNM wants to address this issue immediately and provide all interested parties with a notification and correction immediately.

“As we prepared to share modeling data with independent parties, PNM discovered errors in its modeling calculations that affect the proposed scenarios for the replacement generation when the San Juan Coal plant closes. We understand that errors lead to distrust and speculation about the process - We hope that our full and rapid disclosure will allow for continued trust in this important process. 

Although these miscalculations don’t impact the recommendations in the case, they minimally reduce estimated customer savings.  Some of these errors were the failure to include the full cost of natural gas.  When offset by other corrections, the net effect is to change the resource selection for scenario two.  This change allows more renewables and less natural gas in the San Juan Location scenario.”

Due to the complexity of resource modeling and the transparency we are demonstrating, our process provides for numerous parties and opportunities to check inputs and clarify various assumptions. While we may see additional changes, we are committed to quickly sharing information as soon it is available. Timely disclosure of accurate information is critical so all New Mexicans can decide the best path to our shared energy future.

PNM will updated the four scenarios and publish those on With regulatory approval, the San Juan coal plant will close in 2022.

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