2016 REIA Annual Meeting Larry Pratt Project Antelope 2016 REIA Annual Meeting Larry Pratt

a.k.a. Las Lunas Facebook Data Center “electron cannot be traced” PRC case page 9 of 44 PRC case #16-00105-UT PNM’s application to add 80 MW of peaking resource

Prineville, Oregon Facebook data center Utility sub-station (will be 115 kV service for Los Lunas) Cold storage building ?? 2 data server buildings, 5 acres each rooftop for perspective The Node Pole (cold and hydro) The Node Pole is located in Lulea, Sweden Sweden electricity generation is 44% hydro power Small solar farm 24 panels/array 17 2-axis trackers Maybe 120 kW ?? 189,000 kWh/year 113 servers

Economics and Jobs One to six buildings, each costing $250 million First phase fully operational by late 2018 (30 MW AC) Estimated to bring 30 to 50 jobs at the data center and 200-300 construction jobs over seven years Expected to attract other companies to area Incentives: Up to $30 billion in IRBs, $10 million in LEDA to purchase water rights, tax reimbursement up to $1.6 million, possible JTIP funding Credit Marie C. Baca / Journal Staff Writer IRBs = Industrial Revenue Bonds LEDA = Local Economic Development Act

Energy and jobs “We are committed to powering our owned and leased data center operations with clean and renewable energy” – Facebook FB requires the additional renewable energy be over and above existing RPS requirements This is a major bright spot in the face of potentially dwindling state and federal clean power plans Other companies are making similar demands on utility companies 3 solar farms to support initial 30 MW AC for FB None larger than 20 MW AC. Up to 110 MW AC allowed over the growth of the project, likely to include wind PNM selected solar for initial phase due, in part, to a solid track record of providing utility scale solar on schedule and within budget NM has a great solar resource, among the best in the country Valencia, Bernalillo, San Miguel, Sandoval, and Santa Fe counties are under consideration REIA supported PNM in the PRC case 16-0091-UT this year to allow expedited approval for a solar power purchase agreement in order to attract Facebook to NM “Facebook is bringing their own energy” – quote from a PNM exec at a recent panel discussion Large customers like FB with high load factors benefit PNM and it’s customers by improving the “load factor” and grid stability FB will be charged Production Costs and Fuel/Transmission costs when the solar resources are producing less than the load FB will pay 2.3 cents / kWh for Production Charge for first 10 years whenever solar output is less than load. Section 39. SSR = Special Service Rate Excess power from solar will be purchased by PNM at Palo Verde market rates. Section 44 Extension of 115 kV service to data center will be paid for up front by FB. 30 MW AC proposed by PNM to be owned by PNMR-D, an affiliate of PNM. Section 50 3 25-year PPA for systems no larger than 20 MW AC, located in central NM PNM selected Solar, in part, because recent projects have been completed on schedule and within budget. Section 51 Potential locations include the following counties: Valencia, Bernalillo, San Miguel, Sandoval, and Santa Fe. Section62. 2014 IRP amendment include the FB plan. Section 68 110 MW maximum allowed at full build out, likely to include wind. Section 70. FB no eligible for energy efficiency program rebates. Section 92.

Water needed for cooling the servers Air passed through filters 2nd story Outside Air Facebook claims 25,000 gallons per day will be used (28 acre-feet / year) Los Lunas has committed up to 4.5 million gallons per day (13.8 acre-ft/day) 30 MW of renewable saves ~ 100 acre- feet / year of water that would otherwise be needed for fossil fuel generation “Indirect Evaporative Cooling” used to cool the “hot aisles” below Facebook’s Altoona data center, Iowa

Summary Corporate demand for renewable energy is good for our business and hopefully a growing trend New Mexico has a competitive advantage given our solar resource and relatively mild climate (good for solar PV and cooling) We need to work together with PNM to bring more of these projects to NM Data centers require a significant amount of water resources for cooling, and all the more reason to power that growth with PV and wind