New Mexico utility grapples with costs of closing coal plant

ALBUQUERQUE, N.M. (AP) — New Mexico's largest electric provider plans to get out of the coal business sooner rather than later and is proposing legislation that could ease the sting of closing a coal-fired power plant that has served customers around the Southwest for decades.

Public Service Co. of New Mexico wants legislative approval for a mechanism that would address how the utility recovers millions of dollars of remaining investment in the coal-fired San Juan Generating Station.

By financing undepreciated capital through the highest rated bonds possible, utility officials say they'll be able to save customers money as they move toward natural gas and more renewable energy.

Depending on how the legislation is crafted, environmentalists say it could help establish broader public policy for reinvestment in cleaner energy and in diversifying New Mexico's economy.