PNM seeks approval for new renewables, longer natural gas use

PNM is asking state regulators for a sweeping new power plan that pairs a bigger buildout of renewables with a longer role for natural gas, a mix that could affect what Bernalillo County customers pay and how reliably the grid holds up as demand climbs. The filing comes as the utility pushes toward 100% carbon-free electricity while arguing that it still needs backup resources to keep power available when the wind drops or the sun sets.

The plan calls for 800 megawatts of wind, 240 megawatts of solar and 610 megawatts of battery storage, plus 40 megawatts of natural gas that could remain available through 2045. PNM says the package is designed to meet system reliability needs, regulatory requirements and affordability, while also helping the company move toward the carbon-free goal set by New Mexico law. The utility says coal would be eliminated as a generation source for its customers by 2031.

At the same time, PNM says it is planning for customer electricity demand to rise 40% by 2032, driven by load growth and New Mexico’s economic development push. The company says it wants new large-load customers to pay the costs they create instead of shifting those expenses onto existing households and businesses, a point that matters for families in Albuquerque and across Bernalillo County watching utility bills closely.

PNM is also seeking at least 50 to 250 megawatts of additional accredited capacity that could come online between 2029 and 2032, with more transmission work likely needed to move that power to customers. That is the kind of investment that can improve reliability over the long run, but it also adds to the cost of building a cleaner grid, and those costs eventually flow through the utility system.

The most local flash point is Reeves Generating Station in Albuquerque, a 146-megawatt natural gas plant that first went into service in 1959. PNM wants to extend its life to 2044, a sharp turn from its 2022 integrated resource plan, which had called for retirement by 2030. The move shows the tension at the heart of New Mexico’s Energy Transition Act, which sets a 50% renewable standard by 2030, an 80% goal by 2040 and a zero-carbon requirement for investor-owned utilities by 2045. PNM’s earlier capacity growth, from 2,816 megawatts in 2020 to 4,268 megawatts in 2024, underscores how quickly the utility has had to expand to keep pace with both demand and decarbonization.