PNM, a unit of PNM Resources, Inc., has signed a purchase and sale agreement to purchase the Delta-Person Generating Station, located in southwest Albuquerque.
Delta-Person, a 132 MW gas-fired peaking facility, has served PNM jurisdictional needs under a 20-year purchase power agreement since 2000. Under the purchase and sale agreement, PNM will acquire all of the ownership interests in Delta Person Limited Partnership from Delta Person GP LLC and BHB Power LLC.
PNM’s rate base would be increased by the about $40 million acquisition price if approved by the Federal Energy Regulatory Commission and the N.M. Public Regulation Commission.
PNM plans to file for the approvals by the end of January. Assuming 2013 mid-year approvals, the acquisition is expected to be accretive and contribute $.01 to ongoing diluted earnings per share in 2013 and $.02 for the full year of 2014. Customer rates are not expected to increase as a result of this acquisition.
PNM Resources is an energy holding company based in Albuquerque, N.M., with 2011 consolidated operating revenues of $1.3 billion, excluding First Choice Power. Through its regulated utilities, PNM and TNMP, PNM Resources has about 2,550 MW of generation capacity and serves electricity to more than 735,000 homes and businesses in New Mexico and Texas.