El Paso opposes Meta-linked power plant, urges regulators to deny approval

UPDATE (5:55 p.m.):

EL PASO, Texas (KVIA) – El Paso Electric spokesman Daniel Perez told ABC-7 this project will not impact ratepayers.

“It's a generation facility for a specific customer. And that specific customer will be paying for those costs. There's nothing here that would impact any other any of our other customers," Daniel Perez said.

When City Attorney Karla Nieman was asked about the cost to ratepayers she disagreed with Perez.

“The proof is in the pudding. Their expert and their reports haven't shown how they are actually going to ensure that meta pays. We're confident that our case shows that El Paso Electric needs to be more transparent about what the cost for media is going to be," Nieman said.

Meta denied ABC-7's request for an interview. Their spokesperson sent a statement.

“Meta's El Paso data center represents a significant long-term investment in this community — supporting thousands of construction jobs and hundreds of operational jobs, generating millions in local tax revenue, and supporting the digital infrastructure that El Paso businesses and families rely on every day. We’re glad to continue working with the city on the path forward and remain excited to be part of El Paso’s future," a Meta spokesperson said in an email.

El Paso Electric has until June 23 to file their testimony.

EL PASO, Texas (KVIA) – Thursday, the City of El Paso formally opposed El Paso Electric's application for a Certificate of Convenience and Necessity (CCN), according to a news release.

The CCN is related to a plan to build a $551.8 million natural gas power plant to support the Meta data center in Northeast El Paso.

The news release said EPE hasn't demonstrated that the project is a cost-effective choice for existing customers.

"EPE is asking to build a half-billion-dollar power plant for a single new customer without performing the analysis Texas law and regulations require," said City Attorney Karla Nieman. "The City's position is simple: El Paso ratepayers should not be paying for the costs or risks associated with serving a single large customer. We entered settlement discussions in good faith and proposed reasonable protections that would have held families and businesses harmless, but El Paso Electric chose not to provide those assurances. That is why the City is asking the Public Utility Commission to deny the application as proposed."

In testimony filed with the Public Utility Commission, the city identified significant concerns with the application:

• No competitive bidding: EPE didn't ask for bids or compare options and chose the project based on direction from Wurldwide.
• No long-term analysis: EPE didn't do a long-term cost study, rate impact review, or financial projections.
• Higher cost option: The project is more expensive than gas turbine alternatives in their own resource plan, which are more fuel efficient.
• Uncertain need: It's not certain the facility is needed long-term after 2029 becuase the demand depends on future data center growth.
• Unproven reliability: EPE didn't fully assess how reliable the technology is or Enchanted Rock's experience.

The city expressed a concern for existing customers to be exposed to risks and costs with a project of this scale, according to the news release

The city cannot unilaterally alter previously-approved development. It said it will continue to push for more transparency about the project, accountability from those involved and protections for El Paso residents from paying higher rates, according to the news release.

ABC-7 has requested interviews from Meta, El Paso Electric and City Attorney Karla Nieman. Please check back for updates.