ALBUQUERQUE, N.M. (AP) - Utility examiners in New Mexico backed a plan to close a coal-fired power station.
The Albuquerque Journal reported Monday that examiners recommended the state Public Regulation Commission should approve the Public Service Company of New Mexico’s request to abandon the San Juan Generating Station.
In a written decision, regulation commission examiners said Friday that hearings have showed abandonment will cost ratepayers less over the next 20 years than continuing to operate the plant.
The examiners say most of the savings will come from replacing San Juan electricity with cheaper solar, wind, battery storage, and natural gas generation.
The exact mix of replacement resources was reviewed in a separate hearing overseen by the examiners, who are expected to release another recommended decision in the coming weeks.
In a separate decision, the examiners also recommend the company be allowed to use bonds to finance up to $361 million in expenses related to the generating station’s closure.
The funds would be paid back by customers through a surcharge, or rate rider, on their bills.
Use of bonds to finance a transition out of coal power was authorized by the state’s Energy Transition Act, which became law in June.
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