PNM Completes Purchase of Western Spirit Transmission Line
Transmission Grid Expansion Supports Renewable Investment in New Mexico
ALBUQUERQUE, N.M. (STL.News) Public Service Company of New Mexico (PNM), a wholly-owned subsidiary of PNM Resources, Inc. (NYSE: PNM), has closed on its purchase of the Western Spirit transmission line, and service under the Transmission Service Agreements has begun.
PNM announced on May 1, 2019, that it had entered into an agreement with affiliates of Pattern Energy Group 2 LP (“Pattern”), and the New Mexico Renewable Energy Transmission Authority (“NM RETA”) to acquire a renewable transmission project, Western Spirit, which will support the development of new wind resources in eastern New Mexico.
NM RETA and Pattern partnered to develop and construct the Western Spirit transmission project, and PNM has acquired the project as planned. The capacity additions strengthen the existing PNM transmission system and provide upgrades to accommodate 800 megawatts of new wind energy.
“This project demonstrates one way New Mexico’s renewable potential can be used to advance the state’s economy, and it also highlights the critical need for transmission investment to achieve the clean energy future,” said Pat Vincent-Collawn, PNM Resources’ chairman, president, and CEO. “We support NM RETA’s goal to encourage renewable investment in the state and look forward to additional future opportunities.”
PNM’s acquisition reflects a $285 million net investment. Affiliates of Pattern will fully fund the investment through an incremental PNM wholesale transmission customer rate approved by the Federal Energy Regulatory Commission (FERC) with no impact on the rates of existing retail and wholesale customers of PNM. PNM also received approval for the acquisition from FERC and the New Mexico Public Regulation Commission.
SOURCE: PNM via PRNewswire