The 570-megawatt plant located near Deming, N.M., is a clean-burning, natural gas-fired plant, PNM said. The plant began operating less than 17 months after it was acquired from Duke Energy (DUK:NYSE - news - research - Cramer's Take).

PNM owns one-third of the plant, and Tucson Electric Power and Phelps Dodge Energy Services own the rest. The three company owners paid a combined $40 million to acquire their interests in the plant and invested about $100 million combined to complete construction.

Luna will operate as a PNM merchant facility and the company's share of its power of 190 megawatts will be sold to wholesale electric customers in the Southwest. The plant has a cost basis of $246 per kilowatt.

The Albuquerque, N.M.-based company said that the plant will increase its generation resources to about 2,535 megawatts and will be the first of two merchant power plants added to its fleet this year.

Later this month, the company expects to complete the acquisition of Twin Oaks Power, a 305-megawatt coal plant located near Dallas.

"Our goals are to continue executing long-term sales backed by merchant facilities in the Southwest and Texas," the company said.