PNM’s Massive 450MW Solar and Battery Project Wins Unanimous Backing
March 13, 2025
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TXNM Energy (NYSE: TXNM) subsidiary PNM has filed an unopposed comprehensive stipulation with the New Mexico Public Regulation Commission for its 2028 Resource Application. The proposal includes adding 450 megawatts of new solar and battery storage capacity to meet zero-carbon requirements under New Mexico’s Energy Transition Act.
The resource portfolio includes:
- Extension of Valencia PPA for 167 MW through 2039
- 300 MW capacity through two 150 MW battery storage facilities
- 150 MW solar and battery storage facility (100 MW solar, 50 MW battery storage) with option for 20 MW additional storage
The project represents a $252 million capital investment from PNM between 2026-2028. Multiple parties support the stipulation, including NMPRC Staff and various energy advocacy groups. Hearings are scheduled for April 2, 2025.
TXNM Energy (NYSE: TXNM) ha presentato una stipula completa non contestata con la Commissione per la Regolamentazione Pubblica del New Mexico per la sua Applicazione sulle Risorse del 2028. La proposta include l’aggiunta di 450 megawatt di nuova capacità solare e di accumulo di energia per soddisfare i requisiti di zero carbonio ai sensi della Legge sulla Transizione Energetica del New Mexico.
Il portafoglio delle risorse include:
- Estensione del PPA di Valencia per 167 MW fino al 2039
- Capacità di 300 MW attraverso due impianti di accumulo di energia da 150 MW
- Impianto solare e di accumulo da 150 MW (100 MW solare, 50 MW di accumulo) con opzione per 20 MW di accumulo aggiuntivo
Il progetto rappresenta un investimento di capitale di 252 milioni di dollari da parte di PNM tra il 2026 e il 2028. Diverse parti sostengono la stipula, inclusi il personale della NMPRC e vari gruppi di advocacy energetica. Le udienze sono programmate per il 2 aprile 2025.
TXNM Energy (NYSE: TXNM) ha presentado una estipulación integral no impugnada ante la Comisión de Regulación Pública de Nuevo México para su Solicitud de Recursos 2028. La propuesta incluye la adición de 450 megavatios de nueva capacidad solar y de almacenamiento de baterías para cumplir con los requisitos de carbono cero según la Ley de Transición Energética de Nuevo México.
El portafolio de recursos incluye:
- Extensión del PPA de Valencia por 167 MW hasta 2039
- Capacidad de 300 MW a través de dos instalaciones de almacenamiento de baterías de 150 MW
- Instalación solar y de almacenamiento de 150 MW (100 MW solares, 50 MW de almacenamiento) con opción para 20 MW adicionales de almacenamiento
El proyecto representa una inversión de capital de 252 millones de dólares por parte de PNM entre 2026 y 2028. Varias partes apoyan la estipulación, incluidos el personal de NMPRC y varios grupos de defensa energética. Las audiencias están programadas para el 2 de abril de 2025.
TXNM Energy (NYSE: TXNM)의 자회사 PNM은 2028년 자원 신청을 위해 뉴멕시코 공공 규제 위원회에 반대 없는 포괄적 합의를 제출했습니다. 이 제안에는 450메가와트의 새로운 태양광 및 배터리 저장 용량을 추가하여 뉴멕시코의 에너지 전환 법에 따른 제로 탄소 요건을 충족하는 내용이 포함되어 있습니다.
자원 포트폴리오에는:
- 2039년까지 167MW의 발렌시아 PPA 연장
- 150MW 배터리 저장 시설 두 곳을 통한 300MW 용량
- 150MW 태양광 및 배터리 저장 시설(100MW 태양광, 50MW 배터리 저장) 추가 저장 옵션 20MW 포함
이 프로젝트는 2026년부터 2028년까지 PNM의 2억 5천 2백만 달러의 자본 투자를 나타냅니다. NMPRC 직원 및 다양한 에너지 옹호 단체를 포함한 여러 당사자가 이 합의를 지지하고 있습니다. 청문회는 2025년 4월 2일로 예정되어 있습니다.
TXNM Energy (NYSE: TXNM) a soumis une stipulation complète non contestée à la Commission de Régulation Publique du Nouveau-Mexique pour sa Demande de Ressources 2028. La proposition comprend l’ajout de 450 mégawatts de nouvelle capacité solaire et de stockage par batterie pour répondre aux exigences en matière de carbone zéro en vertu de la Loi sur la Transition Énergétique du Nouveau-Mexique.
Le portefeuille de ressources comprend :
- Extension du PPA de Valencia pour 167 MW jusqu’en 2039
- Capacité de 300 MW via deux installations de stockage par batterie de 150 MW
- Installation solaire et de stockage par batterie de 150 MW (100 MW solaires, 50 MW de stockage par batterie) avec option pour 20 MW de stockage supplémentaire
Le projet représente un investissement en capital de 252 millions de dollars de la part de PNM entre 2026 et 2028. Plusieurs parties soutiennent la stipulation, y compris le personnel de la NMPRC et divers groupes de défense de l’énergie. Les audiences sont prévues pour le 2 avril 2025.
TXNM Energy (NYSE: TXNM) Tochtergesellschaft PNM hat eine unbestrittene umfassende Vereinbarung bei der Kommission für öffentliche Regulierung von New Mexico für ihren Ressourcenantrag 2028 eingereicht. Der Vorschlag umfasst die Hinzufügung von 450 Megawatt neuer Solar- und Batteriespeicherkapazität, um die Anforderungen an null Kohlenstoffemissionen gemäß dem Gesetz über den Energiewandel von New Mexico zu erfüllen.
Das Ressourcenportfolio umfasst:
- Verlängerung des Valencia PPA für 167 MW bis 2039
- 300 MW Kapazität durch zwei 150 MW Batteriespeichereinrichtungen
- 150 MW Solar- und Batteriespeichereinrichtung (100 MW Solar, 50 MW Batteriespeicher) mit Option für 20 MW zusätzlichen Speicher
Das Projekt stellt eine Kapitalinvestition von 252 Millionen Dollar von PNM zwischen 2026 und 2028 dar. Mehrere Parteien unterstützen die Vereinbarung, darunter das NMPRC-Personal und verschiedene Energie-Interessengruppen. Die Anhörungen sind für den 2. April 2025 angesetzt.
Positive
- Secured unopposed comprehensive stipulation for major renewable energy expansion
- $252 million capital investment demonstrates significant growth commitment
- 450 MW capacity addition strengthens renewable energy portfolio
- Strong stakeholder support including regulatory staff and energy advocacy groups
Negative
- Significant capital expenditure may impact short-term financial metrics
- Project execution and regulatory risks through 2028 implementation timeline
Insights
TXNM Energy’s subsidiary PNM has achieved a significant regulatory milestone by securing unanimous support for its 2028 Resource Application from all intervening parties. This unopposed stipulation represents a strong vote of confidence in the company’s renewable energy expansion strategy and significantly increases the likelihood of final regulatory approval.
The application outlines a substantial $252 million capital investment to add 450 megawatts of new solar and battery storage capacity by 2028. This investment is strategically important as it aligns with New Mexico’s Energy Transition Act requirements for zero-carbon generation while securing long-term capacity through the Valencia PPA extension through 2039.
The comprehensive nature of the portfolio is particularly notable – combining PNM-owned assets (150 MW solar/battery facility) with contracted capacity through Energy Storage Agreements. This balanced approach allows TXNM to maintain an ownership stake in critical infrastructure while utilizing third-party contracts to optimize capital efficiency.
With support from diverse stakeholders ranging from regulatory staff to environmental and consumer advocacy groups, this stipulation effectively de-risks the regulatory approval process. The company has secured a clear path toward executing its capital investment plans while advancing its clean energy transition strategy. Though still subject to final commission approval, the unanimous stakeholder support substantially increases the probability of successful implementation.
This filing represents a significant capital allocation decision with positive implications for TXNM’s long-term investment thesis. The $252 million capital investment planned for 2026-2028 provides clear visibility into the company’s regulated capital expenditure pipeline, which is important for a utility’s growth profile and future rate base expansion.
The investment structure demonstrates prudent financial planning through a balanced approach to capital deployment. By owning the 150 MW solar/battery facility directly, TXNM secures regulated returns on owned assets while using PPAs and ESAs to manage overall capital requirements and optimize the balance sheet. This mixed-ownership model allows for regulatory asset growth while maintaining financial flexibility.
Securing unanimous stakeholder support is particularly valuable from a financial risk perspective as it significantly reduces regulatory uncertainty surrounding capital recovery. The unopposed stipulation suggests a high probability of receiving full regulatory approval for the proposed investments and their eventual inclusion in the rate base.
Moreover, the strategic alignment with New Mexico’s Energy Transition Act positions TXNM favorably within the regulatory framework, potentially creating a more supportive environment for future capital investments in clean energy infrastructure. The company’s proactive approach to meeting zero-carbon requirements demonstrates management’s ability to navigate the energy transition while creating opportunities for regulated growth, which is critical for long-term shareholder value creation in the utility sector.
ALBUQUERQUE, N.M., March 13, 2025 /PRNewswire/ — PNM, a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM), and intervening parties in its 2028 Resource Application filed an unopposed comprehensive stipulation with the New Mexico Public Regulation Commission (NMPRC).
The stipulation supports approval of PNM’s proposed resource portfolio adding 450 megawatts (MW) of new solar and battery storage capacity in 2028 to serve customers and continue progress towards the zero-carbon requirements of New Mexico’s Energy Transition Act, including:
- extension of a Valencia Purchase Power Agreement (PPA) for 167 MW through 2039 (current agreement expires in 2028),
- addition of 300 MW capacity through Energy Storage Agreements (ESAs) for two, 150 MW battery stand-alone storage facilities, and
- addition of a 150 MW solar and battery storage facility (100 MW solar, 50 MW battery storage) to be owned and operated by PNM, which includes the proposed option to increase the battery storage by an additional 20 MW.
The proposed portfolio reflects $252 million of capital investment from PNM in 2026 through 2028.
Parties to the stipulation include Utility Division Staff of the New Mexico Public Regulation Commission, Coalition for Clean Affordable Energy, New Energy Economy, New Mexico Affordable Reliable Energy Alliance, Western Resource Advocates and Prosperity Works. Central Consolidated School District supports the stipulation. Other parties may file their positions within 5 business days.
The stipulation is subject to NMPRC approval. Hearings on the filing are scheduled to begin on April 2, 2025.
Today’s filing and the application are available at https://www.txnmenergy.com/investors/rates-and-filings/pnm-nmprc-filings.aspx.
Background:
TXNM Energy (NYSE: TXNM), an energy holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company’s website at www.TXNMEnergy.com.
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Contacts: |
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Lisa Goodman |
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(505) 241-2160 |
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for TXNM Energy, Inc. (“TXNM”), 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, including the unaudited financial results and earnings guidance, 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 and apply only as of the date of this report. TXNM, 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, TXNM, PNM, and TNMP caution readers not to place undue reliance on these statements. TXNM’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. 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.
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SOURCE TXNM Energy, Inc.
FAQ
What is the total investment value of TXNM’s 2028 Resource Application project?
The project represents a $252 million capital investment from PNM (TXNM’s subsidiary) between 2026 and 2028.
How many megawatts of new capacity will TXNM add through the 2028 Resource Application?
TXNM will add 450 megawatts of new solar and battery storage capacity in 2028.
When will the NMPRC hearings begin for TXNM’s resource application?
Hearings are scheduled to begin on April 2, 2025.
What are the key components of TXNM’s proposed resource portfolio?
The portfolio includes a 167 MW Valencia PPA extension, 300 MW of battery storage, and a 150 MW solar/battery facility with potential for 20 MW additional storage.
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