The state Supreme Court has upheld provisions of an environmental law that provides financial arrangements for an electric utility to abandon investments in a coal-fired power plant in northwestern New Mexico.
In a unanimous opinion announced Monday, the court upheld a finance order from state utility regulators that helps end the use of the San Juan Generating Station by Public Service Company of New Mexico.
The order allows the investor-owned utility to bill $361 million to utility customers as it moves forward with plans to abandon the power plant and raise money to shore up local employment.
Two advocacy groups for utility customers challenged the financial arrangements and the constitutionality of the 2019 Energy Transition Act that aims to phase out electricity sources linked to heavy emissions of climate-warming gasses.
An opinion from Justice David Thomson says that advocacy groups were unable to show that the new law results in unreasonable charges on utility bills.