Regulators instruct Facebook to review power purchase agreements in New Mexico

Regulators have instructed Facebook to renegotiate the terms of its proposed power purchase agreements regarding solar energy and energy storage facilities in New Mexico.The agreement relates to 50MW of solar energy from Encino North Solar Energy Center, 190MW of solar from Sky Ranch Solar Facility and 100MW of four-hour energy capacity (400MWh) from Sky Ranch Energy Storage Facility. 

Although signed by the Public Service Company of New Mexico (PNM) and Facebook via its subsidiary Greater Kudu LLC, the agreement has come under fire from the New Mexico Public Regulation Commission. It argues that the PPA is not in the public interest. Moreover, the Commission ruled that the PPA could lead to annual revenue shortfalls in its current form. An order of continuance was subsequently issued.

Now, PNM and Greater Kudu must go back to the drawing board and address the Commission’s concerns.