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PNM Resource to Acquire Western Spirit, Receives NMPRC's Nod

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PNM Resource (PNM - Free Report) announced that its unit, PNM, received approval from New Mexico Public Regulation Commission (NMPRC) to acquire the Western Spirit transmission project from Pattern Development and the New Mexico Renewable Energy Transmission Authority (NM RETA).

On May 1 2019, PNM, NM RETA and Western Spirit Transmission LLC — an affiliate of Pattern Energy Group, Inc. (PEGI - Free Report) — entered into agreement for the construction of a transmission line to transmit power generated from wind facilities. Per the agreement, NM RETA and Pattern Development will construct the project. PNM will acquire the project after its expected completion on 2021. The net investment of the project is $285 million. The recent deal is expected to strengthen the existing PNM system and provide upgrades to accommodate 800 MW of new wind energy.

Renewable Focus

The company is focused on increasing renewable operations. Its renewable procurement strategy includes utility-owned solar capacity, wind and geothermal energy. As of Jun 30 2019, it has 127 megawatt (MW) of utility-owned solar capacity in operation. Per this plan, the company has planned to construct additional 50 MW solar-PV facilities during 2018-2019, which was approved by NMPRC.

PNM also purchases the output from the 204-MW New Mexico Wind facility and the 102-MW Red Mesa Wind energy center.

PNM Resources has long-standing expertise in fulfilling environmental regulations. The company focuses on developing cost-effective power generation units to provide reliable and affordable power, while transitioning to a 100% emissions-free generation portfolio by 2040.

Other utilities are also increasing their focus to produce energy from clean energy sources. Xcel Energy (XEL - Free Report) ,  and Ameren Corporation (AEE - Free Report) are investing in projects to produce more electricity from renewable sources.

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