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