United States

United States

Facebook transmission line payment reprieve

New Mexico regulators have voted to shelve the requirement of Facebook to pay $39 million towards a new transmission line.

The new power line will serve Facebook's Los Lunas data centre that opened in February (pic: Facebook)
The new power line will serve Facebook's Los Lunas data centre that opened in February (pic: Facebook)

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The $85 million line will help carry wind power to a new data centre built by the social media giant.

In May, the New Mexico Public Regulation Commission had ruled that Facebook -- rather than all consumers -- should pay half the cost of the transmission line being built by the utility Public Service Company of New Mexico (PNM).

Facebook has a power purchase contract to buy power from Avangrid’s 166MW La Joya wind project, in permitting near Encino, New Mexico.

In February, an executive from PNM testified to the commission that the BB2 transmission line would only serve the new data centre, in Los Lunas.

The utility has since backtracked and said that BB2’s benefits will be far wider than that, including servicing a second wind project in New Mexico being developed by Avangrid.

The commission will now allow PNM to present its case regarding payment for BB2 when it next seeks a rate increase.

New Mexico officials had said that the original ruling could deter businesses from locating in the state. The new ruling is a "positive step forward", said PNM

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