New Mexico regulators approve SPS’s $9B, gas-heavy resource plan
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- Southwestern Public Service Co. (SPS) received approval from the New Mexico Public Regulation Commission for a $9.38 billion expansion plan that adds roughly 3.8 GW of new utility‑owned generation.
- SPS's plan includes 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.
- Commissioner Patrick O’Connell voted against the plan, saying the request‑for‑proposals process was uncompetitive and that rate‑base gas generation should be replaced by cheaper power‑purchase agreements.
- Tolk coal plant's retirement is delayed three months, pushing its shutdown to March 31 2029 while new resources come online.
- SPS will recover about $253 million in Inflation Reduction Act tax credits, including a 30 % investment credit for batteries plus an Energy Community bonus, and has begun early off‑site construction to meet eligibility deadlines.
Why it matters: Industrial customers in the Permian Basin gain extra capacity for electrified operations, while ratepayers face higher costs from a $9 billion gas‑heavy build‑out; the three‑month Tolk delay keeps coal online through 2029, preserving reliability as renewables ramp up.
