Sandoval County Commission approves $275 million bond to build solar power plant

The Sandoval County Commission voted unanimously in favor a bond for construction of a solar power plant that would be run by PNM and would be the third solar farm in the county supported by Industrial Revenue Bonds on Oct. 25.

The $275 million NMRD IV project will be funded in industrial revenue bonds by PNM to provide power to the Meta data center in Los Lunas.

The new solar farm, the NMRD Data Center III (a.k.a. TAG), would be run by PNM and would be the third solar farm in the county supported by industrial revenue bonds. TAG would be built on land within the Rio Rancho School District, which results in a higher portion of payment in lieu of taxes (PILOT) being paid to the county from PNM going to RRPS.

The recently amended the Industrial Revenue Bond Act calls for RRPS to receive $3.7 million over the life of the bond, an average of $123,000 per year over 30 years on an escalating scale.

Cuba Independent Schools gets $1.3 million over the life of the bond while Jemez Valley schools get $812,000.

Albuquerque Public Schools, which has 382 students attending Corrales Elementary School in Sandoval County, will receive about $108,000 more in PILOT payments than Bernalillo Public Schools (about $496,000).

Rob Burpo, Sandoval County’s financial adviser, said PNM could begin construction of the plant early next year with power being provided to the Meta data center by June 2025. Burpo said the total cost of the project is $172,000, but money will be put aside for cost overrun.

District 2 Commissioner Jay Block raised issues with Facebook getting breaks from PNM for the deal at the June 28 commission meeting, where a resolution to issue the bonds was passed.

“Last time we did this in 2019, Facebook got a sweet deal of about 75% off the power,” Block said at that meeting. “An ordinary, average, nice guy, he’s not getting a sweet deal is he? No, he’s not from PNM. Facebook, they’re getting treated a heck of a lot better than the average New Mexican here because they’re getting this subsidized. It just really upsets me that these big corporations get these really sweet deals when the average New Mexican, the average Joe Bag of Doughnuts, doesn’t get the same love that the big corporations get.”

Block spoke out against the deal Facebook was getting again at the Oct. 25 meeting.

“The big corporation of Meta is getting a sweet deal here on the power, and the normal everyday New Mexicans who are getting burdened by inflation and higher energy costs are going to be paying four or five times more,” Block said. “I just want to reiterate I really am totally against Meta getting that sweet deal, but this is money for the schools, and God knows our schools need help in New Mexico being dead last.”