Steven Fischmann, former state senator, public regulation commissioner, discusses potential pitfalls, benefits of proposed AI data center campus in Santa Teresa. Here's a portion of their conversation transcribed, and you can listen to the second portion below, as well as find a link to more information on the project.
KC Counts:
Often, projects like this are years in the making, in the discussion process. And I know you were on the Public Regulation Commission until just a couple of years ago, right?
Steven Fischmann:
Correct.
KC Counts:
And so, were endeavors like this something the PRC discussed in terms of these huge data centers that would need their own utilities?
Steven Fischmann:
Well, yes. We actually approved the data center project during my tenure on the PRC, and it was with Facebook in Los Lunas. And that was different because it wasn't a separate microgrid, so it required full PRC approval. I will say that Facebook and the participating utility, PNM, did try to do everything last minute to force rushed decisions. And at the PRC, we basically said, whoa, whoa, slow down, and we took a lot more time to review it than they would have preferred, but we caught a lot of things and fixed them.
KC Counts:
What would you say is an example of the value of doing that?
Steven Fischmann:
Well, mainly, no contract these days is simple. There are so many laws that apply now; and what the laws that apply are, is not a simple issue. People have different views on that, and the best thing to do is to work it through so that there's a clear understanding. And quite frankly, that puts the deal on a much stronger footing going forward and keeps you from running into future problems.
KC Counts:
Can you talk a little bit about what you understand about the Memorandum of Understanding, signed by Governor Michelle Lujan Grisham, to allow these types of microgrids?
Steven Fischmann:
Yeah, the thing that stands out to me, and I was just reviewing it about 20 minutes ago, particularly on the environmental side of things, is it basically gives microgrids a get-out of jail free card on any carbon controls. It basically goes all the way to 2050 and says, well, okay, if you don't meet the normal carbon reduction goals or clean energy goals that we've set for the state, we will work to help you sell your microgrid to a utility for continued use, even though it doesn't meet statutory requirements; and that the state would work to change the statutory requirements if needed so that they could continue operating those dirty plants.
KC Counts:
Doña Ana County has put a page up on their website to try to address some of the questions that people are asking, including about energy use and water use in particular. How do you feel they've done in terms of addressing the questions that people have?
Steven Fischmann:
Well, I think they're still being cagey, and I was at their public meeting that they held at the East Mesa campus of DACC, and, you know, they still insist on saying, “well, we're gonna meet everything that the legislature requires. I think most people interpret that as, oh, okay, 100% carbon-free by 2050. But that's not the case. They've put loopholes in it that allow them to build gas plants. And their initial intent is to build a large gas plant. So, I still think they're being cagey in their communication by resorting to generalities that don't describe specifically what they'll be able to do. So I'm disappointed in that.
KC Counts:
We began this conversation talking about how you were approached on the PRC with this kind of push to make a decision quickly. Do you think the exact same technique is being employed here with Doña Ana County Commissioners?
Steven Fischmann:
It's a similar technique, and it's one that when dealing with regulatory issues that companies frequently follow, and quite frankly, salesmen frequently follow. You create a false deadline, you make a rush, things don't get reviewed completely, and hopefully you slip something under the radar. I'm going to be speaking with Jupiter folks, talking about things that can be done, provisions that might improve the deal for Dona Ana County. But, you know, again, you never know. It's a negotiation and who knows how sincere folks are. You only find out when the proof is in the pudding.
You can learn more about Project Jupiter right here.
