More opposition to PNMs Stipulation! Today, the Albuquerque Bernalillo Water Authority filed its opposition to the Stipulation. They cited the following reasons: The remaining SJGS Unit 4 owners recent rejection of the SNCR project (including costs for balanced draft) for SJGS Unit 4; Recently revealed and numerous mistakes in PNMs Strategist® runs including PNM’s understatement of fuel cost in its original modeling runs; The City of Farmingtons announcement that it will not take an additional 65 MWs in SJGS Unit 4 due to unreliability and alternate generation resource options; Uncertainty regarding both the source of supply and cost of coal, including uncertainty regarding mine ownership and coal quality. Also, as a result of Farmingtons unwillingness to buy more coal at San Juan, Jefferies Equity Research downgraded PNM to a “hold” rather than a “buy” stating: “Our economic analysis of the plant makes it unlikely that PNMR will find a third party to acquire the 65MW interest in the plant.”
Posted on: Tue, 27 Jan 2015 23:38:58 +0000