PNM struggles to meet New Mexico’s energy needs

PNM’s concerns about a potential energy shortage through the summer of 2023 prompted them to issue a formal request asking energy developers to submit resource proposals. The proposals could add up to 700 megawatts to the PNM system.

The San Juan coal-fired power plant replacement plan selected by the New Mexico Public Regulatory Commission left PNM customers short of 120 megawatts. PNM said the deficit has since increased as the third-party energy developers the Commission selected to replace the energy supply were unable to deliver their new energy resources on time.

Delays in bringing four new solar installations online to replace electricity from the coal plant have been caused by supply chain delivery issues and are creating the expected revenue shortfall. To cover energy needs, which could likely lead to power outages this summer, PNM has temporarily extended the use of one of San Juan’s two coal-fired generating units until September 2022. The operation of the Coal-fired power plant was due to close on June 30, but the three-month extension of its operation should meet the shortfall in energy needs for the summer months of this year.

PNM’s primary concern now is its ability to provide enough energy for summer 2023 needs if energy developers are unable to realize the new solar resource additions in time. PNM could face capacity shortfalls of up to 450 MW needed to reliably serve customers through the summer of 2023. The RFP is an effort to secure new capacity resources so that it is able to serve customers by summer 2023 if that happens.

An independent evaluator will assess the proposals for reasonableness, competitiveness and fairness to identify the best options for reliable, low-cost energy delivered in an environmentally responsible manner. The Request for Proposals (RFP) will be managed through the PNM Sourcing site hosted by SciQuest, an affiliated entity of Jaggaer®.

In order to maintain transparency in the proposal process and to facilitate equal consideration for all respondents, bidders should not contact any company PNM employee or agent regarding this RFP. Instructions to bidders for the RFP are provided as non-confidential documents on the PNM websites identified below:

A virtual pre-submission conference and EPC site visit is scheduled for: June 1, 2022. Proposals must be submitted no later than July 19, 2022. Interested parties are requested to sign a non-negotiable non-disclosure agreement by logging in and clicking the “Accept” button in the NDA section of the Jaggaer RFP event. Access to the tender documents will be granted upon acceptance of the Non-Disclosure Agreement.