EL PASO, TEXAS (KFOX14\/CBS4) \u2014 El Paso Electric will move forward with its plan to build a new natural gas power plant intended to serve Meta\u2019s data center in Northeast El Paso. <\/p>\n
The Public Utility Commission of Texas on Thursday said it will continue discussions tied to the utility\u2019s request for the proposed $551 million McCloud Generation Facility, moving the plan to the next step. <\/p>\n
During Thursday’s hearing, El Paso Electric gave a presentation on the 366-megawatt natural gas-fired generation facility, which would primarily provide power to Meta\u2019s data center during its first several years of operation before potentially becoming part of El Paso Electric\u2019s broader electric system.<\/p>\n
In a statement to KFOX14\/CBS4 on Thursday, El Paso Electric clarified PUCT’s approval of next steps is not an overall approval of the project, but a “preliminary order” in PUCT’s procedural process as a judge is expected to issue a recommendation on the project in October. <\/p>\n
“The inclusion of El Paso Electric\u2019s High Load Factor Large Power Service Tariff on the consent agenda is not an approval but a preliminary order in The Public Utility Commission of Texas\u2019 procedural process. The tariff is designed to ensure that qualifying large, high-load-factor customers pay the costs associated with serving their energy needs through cost-based, non-discounted rates. The purpose of the tariff is to protect customers by assigning the appropriate costs to the customers driving those investments, helping prevent those costs from being shifted to residential and small commercial customers. The tariff supports economic growth while maintaining EPE\u2019s commitment to providing safe, reliable and accessible service for all customers,” an El Paso Electric spokesperson said. <\/p>\n
However, the move comes as city leaders have opposed the project, arguing in part that El Paso Electric has not looked into how the plant could affect customers in the future.<\/p>\n
“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,” City Attorney Karla Nieman said in a statement last month. “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.”<\/p>\n
Following Thursday’s hearing, an administrative law judge is expected to issue a proposal for decision in October. The Public Utility Commission is then scheduled to consider the recommendation and vote on the application in December.<\/p>\n
The city said it will continue participating throughout the proceeding and advocating for an outcome that protects El Paso ratepayers.<\/p>\n
\u201cOur priority throughout this process has been protecting El Paso ratepayers,\u201d Nieman said. \u201cWe are prepared to present the City\u2019s case at hearing while continuing discussions with El Paso Electric in hopes of reaching a resolution that provides meaningful protections for existing customers.\u201d<\/p>\n
RECOMMENDED: Key hearing begins on El Paso Electric gas plant proposal for Meta data center<\/a><\/p>\n RECOMMENDED: City urges state regulators to reject EPE\u2019s McCloud generation plant certificate<\/a><\/p>\n