Oct. 20—Electricity from the years-delayed San Juan Project, a solar power facility planned in northwestern New Mexico, will be more pricey than originally projected.

Public Service Company of New Mexico, the state's largest electric utility, sought approval this week from the state Public Regulation Commission for amended power purchase and storage agreements that raise rates by more than 20% at the San Juan County facility — one of four sources of power to replace electricity previously supplied by the coal-fired San Juan Generating Station.

PNM recently shut down the coal plant. It planned the new solar facility in the same community — as the 2019 Energy Transition Act directs — to ease some of the financial impact of the shutdown, including tax revenues for a school district.

The proposed new power purchase agreement for the facility shows the price will rise to $33.55 per megawatt-hour from $26.31, a 27.5% increase. An amended energy storage agreement shows a 24% percent increase.

PNM defended the hikes, pointing to studies showing an industry norm of 25% to 35% increases. The San Juan Project agreements are reasonable, PNM argued.

The Public Regulation Commission approved an order Wednesday allowing the costlier contracts to take effect barring any objections this week that could trigger a full hearing of the case. Intervenors opposing the deals have a deadline of noon Friday to file objections.

Approval of the new price agreements, according to PNM, would come just in time to ensure the solar project is producing power during peak demand in summer 2024.

Commissioner Theresa Becenti-Aguilar voted against approval. She said she felt PNM has given "mixed information" regarding the urgency of increasing power production.

Commission Chairwoman Cynthia Hall disagreed.

"We need to act expeditiously," Hall said. "Looking at price comparisons in the motion and understanding that the project will be built in a location so the community can take advantage of tax benefits for the school district makes this an attractive project, and I don't want to stand in the way of getting it done."

The PRC approved the San Juan Project in December 2020. It initially was planned to be operational by June 2022.

PNM attributed delays and price increases to disruptions caused by global shipping delays, inflation, the COVID-19 pandemic and a U.S. tariff, among other factors.

Another PNM solar farm set to produce power in lieu of the coal plant, the Rockmont Project, also is poised to miss its June 2022 target operational date by two years.

"PNM continues to negotiate with developers for possible resolution on the Rockmont Project," the company stated in the recent motion for the San Juan Project. "If successful, PNM will bring that project forward in a similar manner as this filing."