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NMPRC approves major energy plan across eastern New Mexico

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NMPRC approves major energy plan across eastern New Mexico

Nearly 3,850 megawatts of new power will meet rising demand in the region

 

The New Mexico Public Regulation Commission has approved a plan for Southwestern Public Service Company (SPS) to build nearly 3,850 megawatts of new power. This expansion is expected to meet a surging demand in eastern New Mexico, providing the reliable energy needed to fuel the region’s growing economy and communities. 

The Commission’s approval focuses on securing a dependable, long-term power supply that can handle maximum consumption without interruption. This expansion is centered on a mix of wind, solar, and natural gas hubs, including the construction of the Lariat and Yellow House wind farms, the Sandy Loam solar project, and the Gaines and Tolk natural gas plants.

To maintain a steady flow of power when weather conditions change, the Commission also approved high-capacity battery storage sites at Sagamore and Plant X. These facilities will act as a backup for the grid, activating when renewable generation is lower.

The plan also provides $461 million to upgrade three vital New Mexico transmission lines to ensure that the newly generated energy is delivered efficiently and safely across the region.

To protect the region’s energy stability during this expansion, the Commission has set clear guidelines for transitioning away from older facilities. The retirement of Tolk Generating Station (Units 1 and 2) is now scheduled for March 31, 2029. This timeline was chosen specifically to prevent power gaps while the new energy projects are being completed.

The Commission also upheld strict environmental standards by denying a request to label natural gas as “zero-carbon” and maintaining New Mexico’s 2045 clean energy goals.

This entire expansion represents a $9.3 billion investment that will be phased into customer bills gradually as the new facilities come online. To protect consumers, the Commission has requested that SPS provide regular demand updates, ensuring residents only pay for infrastructure essential to the region’s actual growth, in addition to reporting requirements involving tax credits the utility is expecting for the new facilities.

For more details about this case, visit the PRCe360 portal and search for Docket 25-00066-UT.