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El Paso Electric and regional partners outline power, grid and workforce needs for data center and industrial growth
Summary
El Paso Electric, Borderplex Digital and the Public Regulation Commission told the Legislative Finance Committee that attracting data centers and advanced manufacturing will require new generation, transmission and grid modernization, together with workforce training and consumer-protection terms for cost recovery.
El Paso Electric, Borderplex Digital and the Public Regulation Commission briefed the Legislative Finance Committee during a field visit on the energy and regulatory changes necessary to support large new loads such as data centers and advanced manufacturing in southern New Mexico.
"There's no way to do it without power infrastructure," said Kelly Tomlin, president and CEO of El Paso Electric, describing large commercial customers as a means to change the region's customer mix and generate tax and economic benefits. Tomlin said the company has committed funds to economic development and described large loads as a driver for new transmission and generation investment.
Why it matters: Panelists described a national increase in power demand from AI, data centers and electrification and said the state and utilities must combine faster regulatory decision-making, targeted transmission investments and modern grid technology to bring additional generation and deliver it reliably.
Regulatory and planning updates: Choi Acori, chief of staff for the New Mexico Public Regulation Commission, said the PRC has reduced average case decision time by roughly 40% (from about 212 days in 2023 to about 129 days in 2024–present) and is creating in-house modeling and grid-modernization capacity to give the state an independent planning capability. She also said the PRC will press forward on statute-level updates to give the commission more operational flexibility.
Cost recovery and consumer protections: Committee members pressed for clarity on who pays for new generation and transmission. Acori and Tomlin described a range of possible contracting and cost-allocation approaches: a new line extension or substation can be underwritten by the customer that requires it, or a utility may demonstrate a system-wide need and recover costs across its rate base subject to PRC review. "Data centers have not pushed back on how much it costs," Tomlin said in response to a committee question about commercial expectations; she added that timing is often the principal constraint for customers.
Workforce and community benefits: Lanham Napier of Borderplex Digital said modern data centers and related campuses create a range of jobs. He provided pay ranges for operations and technical roles in data centers and argued that training programs with local colleges and high schools can move residents into higher-paying roles without four-year degrees. "Level 1 would be $80,000 to $100,000 a year," Napier said as an example for entry-level operations positions; higher technical roles can pay substantially more.
Ending: Panelists urged the committee to weigh regulatory, permitting and funding options that accelerate projects while protecting consumers and to coordinate state, county and local investments in transmission, water and workforce training so the region can capture near-term opportunities.
