PNM Seeks Approval for Power Contracts Serving Meta's Los Lunas Data Center

PNM's bid to lock in 290 megawatts of solar contracts for Meta's Los Lunas data center campus went before New Mexico regulators last week, with the central question for Valencia County households being who bears the cost when a load this large expands on the regional grid.

The New Mexico Public Regulation Commission held its March 26 regular open meeting as part of the ongoing review of NMPRC Case No. 25-00048-UT, PNM's application to approve an amended special service contract with Greater Kudu LLC, three 20-year purchased power agreements and three companion energy storage agreements. Greater Kudu LLC is the Meta Platforms subsidiary operating the Los Lunas facility.

The three solar projects together total 290 megawatts of contracted generating capacity. One is anchored at the Sun Ranch 115-kilovolt substation on Interstate 25 near mile marker 200, pairing 100 megawatts of solar with a 100-megawatt, four-hour battery storage system. A second, the Windy Lane project in De Baca County, pairs 90 megawatts of solar with a 68-megawatt four-hour battery at a negotiated price of $37.52 per megawatt-hour, with a 20-year term beginning December 1, 2026.

The ratepayer protection built into the deal is the "No Net Adverse Impact" clause in PNM's existing Special Service Contract with Greater Kudu, which requires the full cost of all new solar and storage agreements to be recovered from Meta, not distributed across PNM's general customer base. PNM has proposed amendments to Rate No. 36B, Rider No. 47 and Rider No. 49 to enforce that separation. Commissioners are expected to examine whether those mechanisms hold if Meta's load does not reach projected levels.

The 290 megawatts of newly contracted solar generation is nearly four times the roughly 80 megawatts the campus currently consumes. Meta's Los Lunas facility already spans seven operational data center buildings with three more under construction; a two-building expansion approved at approximately $800 million is also in the pipeline. Total investment in the campus is expected to exceed $2.5 billion.

Residents, businesses and local officials who want to formally participate can access the complete docket through the NMPRC case management system under Case No. 25-00048-UT. The commission held a formal public hearing in the case on October 27, 2025, with the March 26 open meeting among subsequent commission actions. The Village of Los Lunas and the Valencia County Commission have standing to file comments in active PRC proceedings where utility infrastructure intersects with local planning, and neither entity needs to wait for a final order to enter the record.