PNM said that the contracts being sold accounted for less than 4% of its wholesale segment gross margin in 2006.
PNM Resources previously announced that the planned sale of a portion of PNM’s electricity and natural gas wholesale energy portfolio is the first step toward separating the merchant business from the utility, as required by New Mexico regulatory rules. By January 1, 2010, PNM must separate from the utility its remaining merchant assets, the 190MW Luna energy facility and the 72MW Lordsburg generating station.
Jeff Sterba, PNM Resources chairman and CEO, said: We will continue to execute our strategy of establishing clear separation of our regulated and unregulated electric operations. PNM’s 10% ownership share of Palo Verde nuclear generating station Unit 3 can remain within PNM and its power can be sold through tolling agreements.
