1. 2016 REIA Annual Meeting Larry Pratt
Project Antelope
2016 REIA Annual Meeting
Larry Pratt

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

3. 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

4. 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 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

5. 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 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.

6. 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

7. 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