Coal

Smokestacks demolished at New Mexico’s San Juan plant

The coal-fired plant, which Public Service Company of New Mexico (PNM) had operated for decades, provided power for much of the state.
Smokestacks demolished at New Mexico’s San Juan plant
The San Juan Generating Station (before demolition), located near Farmington, NM (Source: PNM).

The Public Service Company of New Mexico (PNM) demolished the smokestacks of the coal-fired San Juan Generating Station on Saturday morning, multiple media outlets reported.

It represents the end of an era for the massive coal-fired plant, located near Farmington, New Mexico. The plant, which PNM had operated for decades, provided power for much of the state.

The shutdown of San Juan Unit 4 in September 2022 followed the retirement of Unit 1 in June of that year. The coal-fired plant had four units but was reduced to two in 2017, with the closure of Units 2 and 3. The plant first came online in 1973.

The plant’s retirement sent financial ripples through the surrounding communities. Hundreds of employees were impacted. PNM provided $11 million in severance packages to help about 200 displaced workers. About 240 mine workers received severance payments worth $9 million. Another $3 million went to job training.

PNM is the majority owner of San Juan Generation Station, but the city of Farmington has a 5% stake. The city had aimed to keep the plant open, partnering with Enchant Energy for a carbon capture and sequestration (CCS) project.

The San Juan Solar Project, which would have a capacity of 400 MW, is already on the power plant land and could start operating later this year. PNM approved a 20-year power purchase agreement (PPA) for the solar project.