Public Service Company of New Mexico (PNM), a wholly owned subsidiary of PNM Resources Inc., has closed on its purchase of the Western Spirit transmission line, and service under the transmission service agreements has begun.
PNM announced in May 2019 that it had entered into an agreement with Pattern Energy Group 2 LP affiliates and the New Mexico Renewable Energy Transmission Authority (NM RETA) to acquire a renewable transmission project that would 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 MW 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,” says 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 to 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.
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