By Rep. Kelly Fajardo (R-Los Lunas)

Sometimes, New Mexico can’t help but snatch defeat from the jaws of victory.

Three years ago, New Mexico won a national competition to bring Facebook to our state. Facebook agreed to build its new data center in Los Lunas, and in exchange, New Mexico promised the company that the state would upgrade its electric grid to power the complex with 100% renewable energy.

The agreement was a victory for everyone involved, especially New Mexico. Facebook would get the best deal possible for its new data center and invest $1 billion in the project. New Mexico would gain millions in tax revenue from the economic activity spun-off from the data center. And everyone would benefit from upgraded transmission infrastructure that would bring more renewable energy online.

Facebook delivered on its side of the deal and more. In 2017, it announced it was tripling the size of the complex, creating hundreds of long-term jobs for New Mexicans and spurring an economic boom in Valencia County.

But being New Mexico, state regulators couldn’t let a good thing go untouched. Last week, the New Mexico Public Regulation Commission (PRC) voted 5-0 to force Facebook to pay half the costs for a transmission line to its new data center in Los Lunas. These costs were not part of Facebook’s original agreement with the state to build the facility. The future of the entire project is now in jeopardy thanks to the PRC’s “gotcha” decision.

Within days of the PRC’s action, many national news organizations, including the New York Times, ran headlines declaring, “New Mexico Panel Blindsides Facebook with $39M Utility Bill.”

While I am hopeful that the parties involved will eventually resolve this dispute, it will be too late to take back the negative headlines. The damage is done. Companies and investors across the country have now been warned: New Mexico writes its contracts with erasable ink.

Of course, the blame game began well in advance of the PRC’s vote. Both the PRC and the state’s largest utility company, PNM, pointed fingers at each other. The reality is that the PRC and PNM have long maintained an adversarial relationship, and now Facebook is caught in the crossfire.

Regardless of the who-what-when-and whys of this decision, the ugliness of the ongoing feud between the PRC and PNM has unavoidably compromised New Mexico’s future ability to attract more big projects to the state. What business will want to make a deal with state negotiators knowing that they could be sent a surprise $39 million bill afterward?

If New Mexico is to realize its vision of creating a vibrant economy and good opportunities for our workers, we must rise above these petty squabbles about regulatory technicalities and focus on our larger goals.

Do we want to be a player in the information economy? Do we want to be a leader in increasing renewable energy use? Do we want to create new careers for us and our children?

If the answer is yes, then let’s work together to make it happen. But we’ll never achieve our dreams if we keep repeating the same self-sabotaging actions that have kept us in the economic cellar for decades.

When Facebook announced it was tripling the size of its data center, a local carpenter who had been unemployed for six months before being hired to work on the Facebook project, said, “Facebook has been my oasis in the desert. I was questioning my future in New Mexico.”

Now it’s Facebook’s turn to question its future in New Mexico. The PRC’s inflexible attitude in this case misses the forest for the trees. The reputational damage from their action is now part of our state’s brand. This is why New Mexico can’t have nice things.

Content on the Beat

WARNING: All articles and photos with a byline or photo credit are copyrighted to the author or photographer. You may not use any information found within the articles without asking permission AND giving attribution to the source. Photos can be requested and may incur a nominal fee for use personally or commercially.

Disclaimer: If you find errors in articles not written by the Beat team but sent to us from other content providers, please contact the writer, not the Beat. For example, obituaries are always provided by the funeral home or a family member. We can fix errors, but please give details on where the error is so we can find it. News releases from government and non-profit entities are posted generally without change, except for legal notices, which incur a small charge.

NOTE: If an article does not have a byline, it was written by someone not affiliated with the Beat and then sent to the Beat for posting.

Images: We have received complaints about large images blocking parts of other articles. If you encounter this problem, click on the title of the article you want to read and it will take you to that article's page, which shows only that article without any intruders. 

New Columnists: The Beat continues to bring you new columnists. And check out the old faithfuls who continue to provide content.

Newsletter: If you opt in to the Join GCB Three Times Weekly Updates option above this to the right, you will be subscribed to email notifications with links to recently posted articles.

Submitting to the Beat

Those new to providing news releases to the Beat are asked to please check out submission guidelines at https://www.grantcountybeat.com/about/submissions. They are for your information to make life easier on the readers, as well as for the editor.

Advertising: Don't forget to tell advertisers that you saw their ads on the Beat.

Classifieds: We have changed Classifieds to a simpler option. Check periodically to see if any new ones have popped up. Send your information to editor@grantcountybeat.com and we will post it as soon as we can. Instructions and prices are on the page.

Editor's Notes

It has come to this editor's attention that people are sending information to the Grant County Beat Facebook page. Please be aware that the editor does not regularly monitor the page. If you have items you want to send to the editor, please send them to editor@grantcountybeat.com. Thanks!

Here for YOU: Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News. Thanks for your support for and your readership of Grant County's online news source—www.grantcountybeat.com

Feel free to notify editor@grantcountybeat.com if you notice any technical problems on the site. Your convenience is my desire for the Beat.  The Beat totally appreciates its readers and subscribers!  

Compliance: Because you are an esteemed member of The Grant County Beat readership, be assured that we at the Beat continue to do everything we can to be in full compliance with GDPR and pertinent US law, so that the information you have chosen to give to us cannot be compromised.