The retirement of the two units is part of the Revised State Implementation Plan (Revised SIP), which resulted from an agreement among the New Mexico Environment Department, the U.S. Environmental Protection Agency and PNM. Retiring the units is necessary for SJGS to comply with federal visibility regulations under the Clean Air Act. Retiring the two units reduces the plant's emissions, including carbon dioxide, as well as its use of coal and water, by approximately 50 percent.

"This agreement is the result of a strong collaboration among many parties, each of whom worked to find a solution in the best interests of New Mexicans," said PNM Resources' President, Chairman and CEO Pat Vincent-Collawn. "As we look ahead, there will be more challenges to face and tough decisions to make. The best way to achieve our shared vision of a clean, sustainable energy future will be to continue to work together."

Operators shut down both units a few days earlier than planned because of mechanical problems. Unit 2 was shut down around noon today and Unit 3 was taken offline early Tuesday morning, Dec. 19. It would have been uneconomical to repair the units given the fact that they were scheduled to be shut down later this week.

Crews will now begin the process of cleaning out the units and completing other procedures to permanently retire them from service. The agreement with the EPA mandates that the units be completely out of service by December 31, 2017.

PNM also continues to honor its pledge that reductions in the number of jobs at the plant will be handled through retirements and attrition with no layoffs associated with the shutdown of these units.

Unit 2 came online when the plant opened in 1973 and is the oldest unit at San Juan. Unit 3 began operation in 1979. The shutdown of these two units will result in the reduction of energy generation of approximately 836 MW. PNM plans to replace that loss in generation with a diverse mix of increased renewable energy, existing nuclear power and natural gas generation.