LAS CRUCES — Doña Ana County commissioners voted unanimously Tuesday to notify the developers of Project Jupiter that their power plan could breach the $165 billion industrial revenue bond agreement backing the Santa Teresa data center.
The 5-0 vote followed a closed session of more than two hours with county attorneys. Commission Chair Manuel Sanchez, who made the motion, said the potential breach involves the developers’ “proposed power generation plan.” He directed county management to open talks on a path forward.
The commission did not say a breach has occurred. According to Organ Mountain News, the vote does not revoke the bond authorization.
The dispute traces to an Oct. 13 commission meeting, where Oracle announced a proposed deal with El Paso Electric for backup power. Oracle said it would buy at least $100 million in electricity over 10 years, and it described the utility’s share as under 3% of the project’s needs, according to Organ Mountain News. Commissioners said they learned the details only shortly before the meeting.
Sanchez told company representatives that connecting to the utility would require amending the bond agreement, and he suggested the votes might not be there.
The community benefits agreement says the project “will power itself with an onsite microgrid system” using natural gas generation and battery storage. It also says the microgrid will not affect existing customers’ power reliability or costs. Organ Mountain News reported that the section does not expressly bar a utility connection and that whether the proposal is a breach has not been established. The agreement routes the county’s remedies through the developers’ bond leases, subject to notice and opportunities to correct violations.
Separately, El Paso Electric is asking state regulators to approve a $70.5 million base rate increase, which would raise rates for New Mexico customers by an average of 26.8% in 2027, the Albuquerque Journal reported. Hearings are set for December.
Project Jupiter, under construction for Oracle and OpenAI, also needs an air quality permit for a planned natural gas-fueled fuel cell power plant. A public hearing on that application is set to open Dec. 7.
