Correction appended

Public Service Company of New Mexico has told state regulators that its original estimated price tag for a plan to replace power at the coal-fired San Juan Generating Station have increased by more than $1 billion over the last year, in part due to miscalculated coal costs and adding in maintenance costs. Those costs will be passed along to the company’s half-million customers through rate payments.

In addition, the Farmington Electric Utility System alerted PNM that it will not increase its capacity — as planned — at the San Juan Generating Station. That leaves PNM scrambling to find a buyer for space on the coal-fired unit that will become available when other partners pull out of the plant.

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