PNM wants San Juan coal accords kept secret

Jul 2 - McClatchy-Tribune Content Agency, LLC - Kevin Robinson-Avila Albuquerque Journal, N.M.

 

Public Service Company of New Mexico filed new coal-supply agreements for the San Juan Generating Station on Wednesday for review by the state Public Regulation Commission, but it's requesting that the PRC not publicly release those contracts.

The agreements provide details on Colorado-based Westmoreland Coal Co.'s stock purchase of the San Juan Coal Mine from BHP Billiton, and on commitments between Westmoreland and PNM regarding future coal supplies to the power plant through 2022. The commission ordered PNM last week to file those agreements by July 1 for them to be considered when the PRC decides whether to accept or reject the utility's plan to shut down half of the generating station to comply with federal environmental mandates.

Separately, PNM must file a final plant ownership restructuring agreement with the PRC by.

Under PNM's plan, the utility would significantly increase its ownership stake in one of two San Juan generating units that will remain operating at San Juan. But information on the terms and conditions for future coal supplies are critical for regulators to determine how beneficial that plan is for ratepayers, or whether it would be more economical to order PNM to acquire more alternative sources of energy to replace coal generation.

In the order requiring PNM to file those documents by July 1, the commission said the agreements would become part of the "public record." But PNM is now asking the PRC to keep them under seal, meaning that commission staff and other parties in the case could review them, but not the public. The company says the documents contain proprietary information -- such as the amount paid by Westmoreland to BHP for the mine, and the price that PNM has agreed to pay for coal supplies -- constituting trade secrets that could damage PNM and the other companies if made public.

"PNM is not a party to the (stock purchase) agreement, which is between BHP Billiton and Westmoreland," PNM spokesman Pahl Shipley told the Journal in an email. "PNM has no authority to make that confidential information public."

Since Westmoreland operates mines around the country, information on pricing and contract structure is considered competitive and should be kept confidential, Shipley said. Also, if PNM discloses confidential information, other suppliers may be reluctant to do business with the utility because of uncertainty about whether trade secrets would become public, he added.

Nevertheless, Western Resource Advocates -- one of the organizations that opposes PNM's San Juan plan -- said it will press the PRC to reject confidentiality given the importance of the coal agreements.

www.abqjournal.com

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