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New Mexico's Four Corners Generating Station could see operations continue beyond 2031
Aug. 19—New Mexico's Four Corners Generating Station may see coal-based operations past 2031, potentially preserving more than 200 jobs tied to its operations.
The change in direction comes as Arizona Public Service — the majority owner of the Fruitland plant — has shifted its clean energy goals from being "zero carbon" to "carbon neutral" by 2050, company officials said. The utility, whose only New Mexico operation is the Four Corners plant, made the decision based on energy market changes and customer needs, Arizona Public Service spokesperson Jill Hanks wrote to the Journal.
"With Arizona's population and economy continuing to grow at record levels, so does the state's need for reliable electricity," Hanks said. "Moreover, as part of our focus on providing reliable energy at the lowest cost possible, we need to be able to integrate the most reliable and cost-effective resources available to us to meet the growing need for electricity."
Hanks said APS has not made a decision to continue operating Four Corners past 2031, in particular, but that the company now expects its exit from coal to be "no later than 2038," which would still be consistent with the plant's lease. Currently, the plant employs 251 people and around 100 contractors, she said.
Four Corners is the last operating coal-fired power plant in New Mexico. It was accompanied in the past by the now-decommissioned San Juan Generating Station and Escalante Generating Station.
Hanks said power generated at Four Corners serves Arizona Public Service, the Salt River Project and Tucson Electric Power service territories in Arizona, as well as the Public Service Company of New Mexico's territory.
APS officials have previously said they'd cease Four Corners operations by 2031.
"In short, coal is an important part of our balanced energy mix today, and we will not exit it any earlier than is in the best interests of our customers to ensure reliable service at the lowest cost possible," Hanks said.
The Four Corners plant, located in San Juan County, is a major economic driver for the Navajo Nation, contributing over $59 million annually. According to its website, the Navajo Transitional Energy Co. (NTEC) acquired 7% ownership in Units 4 and 5 of the plant in 2018, a first for the enterprise.
The remaining ownership is split among Arizona Public Service with 63%, PNM with 13%, Salt River Project with 10%, and Tucson Electric Power with 7%.
Last October, the NTEC was awarded $6.5 million from the U.S. Department of Energy's Office of Clean Energy Demonstrations for an engineering design study to determine the feasibility of adding carbon capture to Four Corners.
PNM attempted to exit from Four Corners and transfer its stake to the NTEC by 2024, but was denied by the state Public Regulation Commission. A PNM spokesperson said Tuesday the utility plans to exit from the plant by 2031.
"APS remains committed to clean-energy resources that are cost-competitive and help ensure reliable service for our customers," Hanks said. "Clean-energy resources — such as solar paired with battery-energy storage — that provide a 'best-fit, least-cost' solution to serving our customers will continue to be a key part of how we provide reliable service at the lowest cost possible."
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