New Mexico regulators approve SPS’ $9B, gas-heavy resource plan
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- Southwestern Public Service Co. (SPS) received approval from the New Mexico Public Regulation Commission on May 7 to spend $9.38 billion on new generation, transmission, and storage, adding roughly 3.8 GW of utility‑owned capacity in eastern New Mexico.
- SPS’s plan calls for 2,088 MW of gas‑fired generation, 1,100 MW of wind, 472 MW/1.9 GWh of battery storage, and 189 MW of solar, and was approved by a 2‑1 commission vote.
- Patrick O’Connell dissented, arguing that the gas‑base request was uncompetitive and that power‑purchase agreements would be cheaper for ratepayers.
- New Mexico Public Regulation Commission granted a three‑month extension of the 1.1‑GW Tolk coal plant’s retirement to March 31 2029 and approved new 345‑kV transmission lines to connect the projects to the Southwest Power Pool.
- Inflation Reduction Act tax credits of about $253 million will offset part of the $9.38 billion investment, and SPS expects a 40 % rise in summer peak demand by 2030 driven by Permian Basin data‑center and oil‑and‑gas load growth.
Why it matters: Ratepayers may face higher bills from the $9.38 B investment, while industrial customers gain reliable capacity for expanding data‑center and oil‑field loads; the plan secures $253 M in tax credits and delays coal retirement, affecting New Mexico’s decarbonization timeline.
