Water
90% Reduction in Water Used in Generation by 2040
Operating in the arid Southwest in New Mexico and Western Texas, we understand the importance of protecting scarce water resources. That is why our plants have implemented some of the most innovative water conservation technologies in the industry, such as using treated municipal effluent for water-cooling and air-cooling. And it is why we have set a goal to reduce freshwater use 80% by 2035 and 90% by 2040 from 2005 levels as we shift our portfolio to carbon-free sources.
PNM is proud to be a participant in the Palo Verde Nuclear Generating Station, the largest nuclear power plant in the U.S., and the only nuclear energy facility in the world that uses treated sewage effluent for 100% of its cooling water. The sewage effluent water is produced from the metropolitan Phoenix area. The wastewater is treated again at the plant’s water reclamation facility and then stored in an 80‐acre reservoir for use in the plant’s nine cooling towers. More than 20 billion gallons of water are recycled each year.
Water Use and Reduction Goals
Over the last decade, our water efficiency investments, along with our robust energy efficiency and renewable energy programs, have reduced our freshwater usage from 4.63 billion gallons in 2005 to 2.49 billion gallons in 2022. That’s a reduction of 46% of total water diverted by our generation plants.
As we move forward on our mission to achieve 100% carbon‐free generation by 2040, more significant water savings will be gained. Shutting down SJGS in 2022 and exiting Four Corners by 2031 will allow us to reach our goals for reduced use of freshwater of 80% by 2035 and 90% by 2040.
Water Scarcity
Our operations are centered within arid regions; therefore, managing the risk of water scarcity is central to how we plan and work. We have well-established procedures to minimize our water use and plans to manage water needs in case of drought. Measures we have implemented include:
water balance audits to identify inefficiencies or alternative operations to reduce water consumption;
installation of air cooling technology at Afton to minimize water use.
Looking forward, as we shift our portfolio away from coal to lower water-intensity natural gas and minimal water-need renewables, we will dramatically reduce our water demand and risk exposure to water scarcity. The only significant water-reliant plant in the future will be the Palo Verde Nuclear Generating Station, which already uses 100% municipal wastewater for cooling, significantly reducing its reliance on freshwater.
Effluent Water
We are committed to responsibly managing effluent water. Key to this commitment is that all our plants are zero discharge with no return flows. All water diverted is consumed on-site, either by evaporation through cooling towers or evaporation ponds. There is zero once-through cooling water.
Forward-Looking Statements
Statements made in this Report that relate to future events or our expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. We assume no obligation to update this information.
Because actual results may differ materially from those expressed or implied by these forward-looking statements, we caution readers not to place undue reliance on these statements. Our business, financial condition, cash flows, and operating results are influenced by many factors, which are often beyond our control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. These factors include the risks and uncertainties described in the "Risk Factors," "Quantitative and Qualitative Disclosures about Market Risk," and "Management's Discussion and Analysis" sections of our Forms 10-K and 10-Q filed with the SEC.
