Even without revised permit, PNM to close on buy of Delta plant

Public Service Co. of New Mexico on May 9 filed with the New Mexico Public Regulation Commission a letter from Gerard Ortiz, Vice President, Regulatory Affairs for PNM, on plans to close on the long-pending buy of the gas-fired Delta (sometimes called Delta-Person) power plant.

“The purpose of this letter is to inform you of PNM’s plan to close on the transaction to acquire the Delta Generating Station (‘Delta Plant’) by June 2, 2014,” the letter said. “PNM currently purchases 100% of the generation from that facility under a Purchased Power Agreement (‘PPA’).”

In June 2013, the commission authorized PNM to acquire ownership of Delta Person LP and granted PNM a certificate to own and operate the facility as a public utility plant. At that time, PNM anticipated that the transaction would close in mid- to late-August 2013, after a revised air permit for the Delta Plant had been issued by the City of Albuquerque.

“Although the revised permit has not yet been issued, PNM has agreed to close the transaction at this time,” said the letter. “This will enable PNM to become directly involved in the process for obtaining the revised air permit, and, in our opinion, will facilitate issuance of the permit. The requested permit is unopposed and PNM anticipates that it will be issued in due course once PNM becomes actively involved in the process. There are no limits on plant operation while the new permit is in the approval process.”

Ortiz can be reached at (505) 241-2561, Gerard.Ortiz@pnmresources.com.

The Delta Person plant began commercial operation in July 2000. It consists of a General Electric 7FA combustion turbine and can be operated on either natural gas or fuel oil, although it is normally operated on natural gas. The Delta PPA’s Dependable Capacity is 132 MW, and the heat rate used for billing purposes when fired on natural gas is 12,063 Btu/kWh. It primarily operates as a peaking unit.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.