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NW New Mexico News

Sunday, November 24, 2024

San Juan closure could cause economic blow to area

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San Juan Generating Station | Wikimedia Commons/Steven Baltakatei Sandoval

San Juan Generating Station | Wikimedia Commons/Steven Baltakatei Sandoval

Transitioning away from fossil fuels—oil, natural gas and coal—to cleaner sources of energy that don’t contribute to accelerating climate change, such as wind and solar, is reconfiguring the landscape, and the economies, of many places.

One of them is the Farmington area, where two and even three generations have made their livings working in the San Juan Generating Station in Waterflow for the past half century.

Pubic Service Company (PSC) has announced plans to close the plant by 2022, and others in the Four Corners area are slated to do the same within a decade or so as part of the state’s commitment to reduce carbon emissions. As expressed in New Mexico’s 2019 Energy Transition ACT, major utility companies must use 100% zero-carbon power sources by 2045, and rural co-ops must do the same by 2050.

According to its website, PSC “is focused on safely providing reliable, affordable and environmentally responsible power. PNM is developing strategies to provide reliable and affordable power while transforming PNM's generation resources to a cleaner energy portfolio by reducing carbon dioxide emissions.”

The San Juan Generating Plant, which until very recently was also the state’s biggest source of pollution, will be one of the first casualties, leaving many employees, who live in an area with few other opportunities, worried about the future. While solar and wind energy is now cheaper to produce than coal—yet another reason for the decline—jobs in those industries, at least for those in technology and management, tend to pay significantly less.

The Energy Transition Act has tried to lessen the impact on locals who have relied on San Juan for their livelihoods, allocating $20 million for workers (severance compensation and retraining), and another $20 million to help the area diversify its economy. As more coal plants close, however, or announce plans to do so, area officials worry that the population will migrate out of the area for other opportunities before any alternatives can take hold.

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