STATE
Data centers could modernize grid, but lawmakers push back
Energy leaders told state lawmakers that attracting data centers could help fund grid upgrades and renewable energy goals, but some legislators are pushing for a moratorium instead.
Leaders in New Mexico鈥檚 energy industry told state lawmakers Monday that attracting data centers and other big energy users could be a key step toward modernizing the state鈥檚 outdated grid and meeting its ambitious renewable energy goals.
Laurie Williams, PNM鈥檚 senior vice president of integrated planning and transmission development, told lawmakers on the interim Water and Natural Resources Committee that big energy users, specifically data centers, could bring jobs to the area and help pay for the grid modernization they need to operate.
Those investments could alleviate some of the costs associated with the state , which established goals for utilities to use 50% renewable energy by 2030; 80% by 2040 and 100% by 2045, by spreading the cost among several big users rather than among residential ratepayers, Williams told lawmakers.
鈥淕rowth is positive for New Mexico, but it must occur in a way that protects existing customers,鈥� she said, before appearing to reference . 鈥淚 know we have folks or things afoot right now where people want to prohibit large loads from coming to New Mexico. The thing I would say about that is not prohibitions; let鈥檚 put appropriate protections in. We want protections for water, protections for costs.鈥�
Williams said that PNM intends to file a so-called large-load tariff 鈥� a term that refers to increased fees for large energy users 鈥� which would include minimum revenue requirements, exit fees and other measures to shield residential ratepayers from increased costs, with the state Public Regulation Commission later this year.
She also that lawmakers consider state-level renewable tax credits as federal ones expire; partial funding of geothermal energy mining explorations; and replicating the federal Transmission Facilitation Program, which acts as 鈥渁nchor funding鈥� for major transmission line projects.
Almost immediately, Williams met resistance from some lawmakers on the committee.
Rep. Micaela Lara Cadena, D-Mesilla, and is one of the Democrats planning to introduce in next year鈥檚 legislative session, told Williams she took issue with the request to consider protections over prohibitions.
鈥淪pecifically what鈥檚 happening in here and why myself and others are in conversation about a data center moratorium is because we don鈥檛 have those protections in place,鈥� Lara Cadena said at Monday鈥檚 hearing, before recalling that Williams asked lawmakers for protections rather than prohibitions. 鈥淲ithout protections first, are we supposed to trust the industry first to do it themselves?鈥�
Democrat Deb Haaland and Republican Gregg Hull, the two nominees running to replace Gov. Michelle Lujan Grisham in the Nov. 3 election, recently when asked by Source NM. Haaland said she supports putting 鈥済uardrails鈥� on the developments while Hull said he opposes a moratorium but wants to see 鈥渞eal accountability鈥� for water use and energy impact.
Citing Project Jupiter, Lara Cadena said she is concerned about what she believes is law that appears to let microgrids 鈥� developments that generate their own power 鈥� skirt the Energy Transition Act鈥檚 tiered renewable energy goals. Project Jupiter鈥檚 developers have , which documents show would emit as many greenhouse gases as sa国际传媒官网网页入口 and Las Cruces combined.
How could such a development help the state meet its renewable energy goals, she asked Williams.
Williams responded by saying she agreed that the law created a microgrid loophole and that she is focusing on large-load users that will tie into the electric grid 鈥� not ones that seek to build their own sources of power.
鈥淭hat is where you鈥檙e going to get the socialized cost benefits,鈥� she said.
Source New Mexico is an independent, nonprofit news organization focused on in depth reporting on state government, policies and public officials
