Dive Brief:
- A solar developed based in Los Angeles has asked New Mexico regulators for additional time to submit plans to power a proposed Facebook data center in that state, but regulators appear poised to make a decision today.
- Albuquerque Business First reports the Public Regulation Commission's decision could come this morning on a proposal by Public Service Co. of New Mexico (PNM) to supply Facebook with 66 MW of solar, wind and non-renewable resources.
- While developer MaxxSolar told New Mexico regulators that it can deliver 100% renewable power to Facebook, commission officials indicated the company missed the intervention deadline.
Dive Insight:
As tech companies like Facebook and Amazon build out power-hungry data and operations centers, many of them are looking to non-utility, third-party players to supply them with long-term contracts for renewable power.
In many instances, those developers can capture load that would normally be served by the incumbent utility, but in New Mexico it may be too late for MaxxSolar on this project.
Company CEO and President Gerald Rauch told Albuequerque Business First that MaxxSolar's plan has several advantages over PNM's plan to power a Facebook data center — including a project design, site location, private funding and 100% renewable power. But a spokesperson for state regulators said the company was out of time.
"It is too late at this point for another party to step forward and offer an alternative energy plan," PRC Spokesman Carlos Padilla said. The deadline to intervene passed last month. "The record is closed," he said. "The commission will likely make a final decision on Wednesday."
PNM has offered to supply Facebook with 66 MW of power at an annual cost of about $31 million. The cost to locate the facility in Utah is not yet known.
But the email from MaxxSolar to the PRC said the company has a "very enticing offer to present to Facebook with a pre-approved letter for 100% financing from Wall Street (contingent on a PPA from Facebook) with no investment from Facebook needed."
The company said Facebook would only pay for its energy consumption, and said its partners include Tenaska and Eaton Technologies. MaxxSolar said it submitted a letter of interest to work with PNM, but it was rejected.
The project MaxxSolar wants to propose appears based on a prior concept, the Belen Energy Center.
"Our company has already designed and engineered a 100 MW solar field with 50 MW of battery storage for delivery of power during low, or no sunlight periods including nighttime," MaxxSolar told regulators.
New Mexico's open meeting is expected to begin at 9:30 MDT. PNM's proposed power contract is the first utility item slated for discussion, under docket 16-00191-UT. The meeting will be webcast here.
Facebook is also considering building a data center in Utah, and a public hearing on the company's plans there is scheduled for tomorrow according to ABF.