Eddy County backs utility application to NM PRC for generation; commissioners press for battery disposal details

The Eddy County Commission voted to send a letter expressing support for a utility's application to the New Mexico Public Regulation Commission for certificates of convenience and necessity covering two generation projects and three major transmission lines into New Mexico.

County staff described the proposal as two generation facilities (one located in Gaines County/Texas and an expansion at an existing plant) that would add capacity to serve oil-and-gas activity and anticipated residential and commercial growth. Staff and commissioners noted that the projects would allow the utility to use natural gas rather than diesel generators at many oil-and-gas sites; presenters said switching from diesel to natural-gas-fired plants would reduce the carbon footprint by an estimated 50% or more compared with current diesel generation used at some wells.

Several commissioners voiced support for natural-gas generation to relieve local power constraints but raised detailed questions about the battery storage component: where end-of-life lithium batteries would be transported or recycled, whether long-term storage and disposal plans exist, and whether any storage facilities would be sited in Eddy County. County staff said both proposed plants were in Texas and the transmission would bring power into New Mexico, and that the county has no direct role in siting facilities across the state line; the granted certificate would allow transmission into the county's service area.

A motion to approve the county's support passed on roll call. Commissioners noted they are willing to support the generation elements while asking staff to seek more information about battery storage disposal and lifecycle management before the county endorses local storage siting (if any is proposed).