Sorry, PNM: New Mexico’s cost for clean air likely to be $160 million, not $1000 million

August 8 - PNM claims that it will cost them $1000 million to implement EPA required pollution controls at the San Juan Generating Station in Farmington, that were announced on August 5.

PNM does not report that the EPA’s report of August 5 shows that it should cost $345 million. The EPA report of August 5 says, “Over 300 retrofit SCRs have been installed since the early 1990s in the United States. Accordingly, constructability issues are well understood.” The EPA report says that PNM’s cost estimates are 77% higher than the highest prior SCR project on record. (SCR is the pollution control technology required to meet the EPA requirements.)

When you consider the fact that PNM owns 46% of the plant, the cost that PNM should be highlighting to New Mexicans is $160 million (345 x 0.46), not $1000 million.

The entire EPA ruling is attached.

EPA ruling on San Juan - Aug 5 2011.pdf601.82 KB