As the northwest corner of New Mexico prepares for the closure of the San Juan Generating Station, at least one proposed project to help displaced workers could lead to increased natural gas extraction. Last year, the Energy Transition Act committee sent out a request for information on projects that could be funded through the portions of bonds that could be set aside for economic diversification, workforce training and assisting the Navajo Nation. This resulted in more than two dozen proposals, however the funding is not yet available due to a lawsuit that has postponed the sale of low-interest bonds.
The lawsuit in the New Mexico Supreme Court argues that shareholders should bear more of the costs of closing the power plant instead of ratepayers, who currently will pay for the bonds through a non-bypassable charge on their bills. The bonds will be sold by Public Service Company of New Mexico, the primary owner of the San Juan Generating Station, and will use $360 million of bonds to refinance past investments into the power plant and about $20 million of that money will be used to assist the communities impacted by the closure.
Jason Sandel, a convener for the ETA committee, said there will be a meeting this summer to discuss the proposed projects. A full list of projects submitted for funding consideration and details about each of the projects can be found at dws.nm.state.us/ETA.