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<br />1 <br /> <br />I <br /> <br />Approximately 49 percent of the SJGS is owned by entities outside New Mexico. More than 30 western <br />utilities, municipalities, and cooperatives are dependent to some degree on the operation at SJGS to <br />provide reliable and economic electric energy to their customers. For at least one of the owners ofSJGS <br />other than PNM, this individual resource represents as much as 20 percent of its total generating <br />reSOurces. If SJGS were to halt operations. all owners of the plant would be required to seek alternative <br />sources or eieclriciry {Q meer [he needs of [heir cusiomers, quiu= pussibiy ar hight:r "t:usis. <br /> <br />1 <br /> <br />I <br />1 <br /> <br />SJGS represents a major investment for PNM and its other owners, and the electricity produced by SJGS <br />represents a significant source of revenues. Ifan adequate future water supply cannot be assured, adverse <br />financial impacts to the owners could be expected to occur over time. For example, the credit ratings of <br />the owners, which in turn affect their ability to obtain future financing or refinancing of their obligations, <br />may be adversely impacted. The ability of the owners to sell their interests, as well as the ability of <br />potential purchasers to obtain financing, may also be adversely affected. <br /> <br />I <br />I <br />I <br /> <br />PNM and the other owners must plan years in advance for changes in customers' demand for electricity, <br />life of plant and how it might be economically extended, and the cost of the electric energy produced at <br />SJGS. Uncertainty regarding such a critical component as water can have a significant impact on the <br />ability of planners and decision-makers to prepare for future needs at SJGS and other generating <br />resources in the western United States. <br /> <br />1 <br /> <br />In addition to negatively affecting owners and customers in a five state area, the no action alternative <br />would have adverse effects on the local economy of San Juan County. <br /> <br />6,7.5.1 Population <br /> <br />I <br /> <br />If the local economy could not absorb displaced workers employed by both SJGS and SJCC, the Four <br />Comers region would likely experience a loss of an imponant segment of its work force to other regions <br />of the state or country. <br /> <br />I <br />I <br /> <br />6.7.5.2 Labor Force and Employment <br /> <br />I <br /> <br />The coal mining industry would be panicularly affected by losing SJGS as one of its customers. The coal <br />market in the west and southwest is very competitive with spot market sales driving prices downward, <br />and the trend is toward incremental pricing (as opposed to long-term) contracts for coal mining <br />operations. Because of the lack of transportation infrastructure, the cost oftrllcking the coal to another <br />market would add sufficient incremental costs that it could not be sold in a competitive market. If SJGS <br />ceased operations, area coal mining operations would be cunailed as well. The continued presence of both <br />SJGS and Four Comers Power Plant with their long-term requirements brings essential suppon for the <br />coal mining industry in San Juan County. <br /> <br />1 <br /> <br />I <br />I <br /> <br />IfSJGS were to cease operations, the 439 employees at SJGS would lose their jobs. Also, a portion of the <br />400 BHP jobs at the San Juan and La Plata mines would be lost. Jobs related to the utility and mining <br />industry would also be impacted possibly affecting as many as three related jobs in San Juan County for <br />every SJGS or BHP job eliminated. <br /> <br />I <br /> <br />In addition to the 63 Native Americans that SJGS currently employs, an even larger number of Native <br />Americans employed by the San Juan and La Plata mines would lose their jobs if SJGS were to halt <br />operations. <br /> <br />I <br />I <br /> <br />40 <br /> <br />ii,).! J ; L <br />