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PNM Abandons Plans For $100M Gas Plant

The state's largest electric utility says it's dropping plans to build a $100 million natural gas plant and pipeline in San Juan County because of low projections for energy demand.

ALBUQUERQUE, N.M. (AP) The state's largest electric utility says it's dropping plans to build a $100 million natural gas plant and pipeline in San Juan County because of low projections for energy demand.

The Albuquerque Journal reports the Public Service Company of New Mexico filed a motion to withdraw its application for the project with the Public Regulation Commission on Friday.

PNM President Pat Vincent-Collawn told investors during a conference call last week that demand projections for the project haven't been as high as the company previously predicted.

The 80-megawatt plant was intended to replace energy lost from next year's closure of two units at the coal-powered San Juan Generating Station.

PNM spokesman Pahl Shipley says the company could still revive the proposal in the future.