PNM Gets Green Light for 22 MW of Solar (New Mexico)

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http://www.solarbuzz.com/News/NewsNAPR2188.htm

Plans to add utility-scale solar power facilities by PNM Resources’ New Mexico utility, PNM, were unanimously approved yesterday by state regulators.

The New Mexico Public Regulation Commission approved 22 megawatts of utility-scale solar power facilities that will involve various sites throughout New Mexico. Regulators capped the facilities’ cost at $101.7 million. Construction is expected to be completed by the end of 2011. PNM plans to file for recovery of those costs through a rate rider that would be implemented one year after new PNM rates, which currently are under consideration, are effective.

Costs incurred by a New Mexico utility that are consistent with an approved renewable energy plan are deemed reasonable and recoverable in rates under state law. The solar addition to PNM’s rate base and subsequent recovery is expected add approximately $0.03 to $0.05 to earnings per diluted share in 2012.

“We are pleased that the Commission recognized the significance of adding renewable energy to our existing generation resources,” said Pat Vincent-Collawn, PNM Resources president and CEO. “Our industry, along with regulators, needs to continue to look for ways to add renewable power while balancing the cost impact to consumers. This is the first step toward achieving that goal and meeting the state’s requirement to diversify our energy resources.”

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