PNM issues all-source RFP for new resources in 2029-2032

Rhea-AI Summary

PNM, a subsidiary of TXNM Energy (NYSE: TXNM), has issued an RFP for at least 900 megawatts of new energy resources to be operational between 2029 and 2032, with 500 megawatts required by 2030. This aligns with their 2023 Integrated Resource Plan, which identifies needs of 900-2,900 megawatts by 2032.

The company has expanded its capacity from 2,816 megawatts in 2020 to 4,268 megawatts in 2024, achieving 72% carbon-free portfolio. PNM received NMPRC approval for 410 megawatts of new solar and battery storage for 2026 and has requested approval for 430-450 megawatts more by 2028.

The RFP also aims to replace capacity from the Four Corners Power Plant, which PNM plans to exit in 2031, and current natural gas generation.

Positive

• Significant capacity expansion from 2,816MW in 2020 to 4,268MW in 2024
• Achievement of 72% carbon-free energy portfolio
• Secured NMPRC approval for 410MW of new solar and battery storage for 2026
• Planned addition of 430-450MW of solar and battery storage resources by 2028

Negative

• Substantial capital investment required for 900-2,900MW capacity expansion
• Regulatory approval uncertainty for proposed resource replacements

News Market Reaction

+0.41%

1 alert

+0.41% News Effect

On the day this news was published, TXNM gained 0.41%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ALBUQUERQUE, N.M., Dec. 31, 2024 /PRNewswire/ -- PNM, a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM), has issued a Request for Proposals (RFP) for at least 900 megawatts of new energy resources to come online between 2029 and 2032 to serve customers in New Mexico, with at least 500 megawatts needed by 2030.

The all-source RFP is consistent with resource needs identified through PNM's 2023 Integrated Resource Plan, which identifies a range of 900 – 2,900 megawatts of new capacity needed by 2032, depending on the type of resources selected.

PNM has been integrating new resources to its portfolio, growing its capacity from 2,816 megawatts in 2020 to 4,268 megawatts in 2024, to match the growth in system demand and the transition to carbon-free resources. New solar, wind and battery storage capacity has transitioned PNM's portfolio to 72% carbon-free.

During 2024, PNM received approval from the New Mexico Public Regulation Commission (NMPRC) to add 410 megawatts of new solar and battery storage resources in 2026 and filed a request with the NMPRC to extend a purchase power agreement and add another 430-450 megawatts of solar and battery storage resources in 2028.

In addition to meeting the anticipated growth in system demand, PNM plans to exit its minority ownership from the coal fired Four Corners Power Plant when its current agreements expire in 2031. The 2029-2032 RFP is anticipated to identify potential replacement resources for this plant along with current natural gas generation capacity.

Any proposed resource replacements or additions are subject to review and approval by the NMPRC through a separate application.

Further information for bidders can be accessed via: TXNM Sourcing.  

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.

Contacts:
	Analysts  Lisa Goodman   (505) 241-2160	Media Corporate Communications (505) 241-2743

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 TXNM Energy's planned capacity expansion between 2029-2032?

PNM, TXNM Energy's subsidiary, plans to add at least 900 megawatts of new energy resources between 2029-2032, with a minimum of 500 megawatts needed by 2030. The total requirement could reach up to 2,900 megawatts depending on resource types selected.

How much has TXNM's PNM subsidiary increased its power capacity since 2020?

PNM has increased its power capacity from 2,816 megawatts in 2020 to 4,268 megawatts in 2024.

What percentage of TXNM's PNM energy portfolio is carbon-free as of 2024?

As of 2024, PNM's energy portfolio is 72% carbon-free, achieved through the integration of new solar, wind, and battery storage capacity.

When will TXNM's PNM exit the Four Corners Power Plant?

PNM plans to exit its minority ownership in the coal-fired Four Corners Power Plant when its current agreements expire in 2031.

What new renewable energy capacity has TXNM's PNM secured approval for in 2024?

In 2024, PNM received NMPRC approval for 410 megawatts of new solar and battery storage resources for 2026 and has requested approval for an additional 430-450 megawatts for 2028.