Las Cruces – On Tuesday, the Doña Ana County Board of Commissioners acted unanimously to formally notify the developers of Project Jupiter that their proposed connection to El Paso Electric could constitute a breach of the industrial revenue bond (IRB) agreements that underlie the $165 billion data‑center project near Santa Teresa.
Commissioners emphasize protection of local electricity customers
Commission Chair Manuel Sanchez led the discussion, stating that the county would engage with the Project Jupiter entities to explore a resolution that safeguards existing utility customers from any cost impact. Commissioners Susana Chaparro, Christopher Schaljo‑Hernandez, Susie Kimble, and Vice Chair Gloria Gameros all voted in favor of the motion.
During the closed session, which lasted more than two hours, commissioners examined the language of the community benefits agreement signed on Nov. 12, 2025. Section 8.4 of Exhibit A requires the development to generate all of its electricity on‑site via a microgrid that includes natural‑gas generation, large‑scale battery storage, and exploratory renewable integration. The agreement also states that the on‑site system must not affect the reliability or cost of power for existing customers.
Proposed utility tie‑in raises legal questions
Oracle, the developer behind Project Jupiter, presented an energy‑services arrangement with El Paso Electric that would supply less than 3 % of the data‑center’s electricity needs—primarily for construction, commissioning, emergency backup, and life‑safety operations. The company also offered up to $55 million in annual bill credits for residential and small‑business customers over three years, plus a commitment to purchase at least $100 million of electricity over a decade.
Commissioners expressed concern that the proposal had not been included in the pre‑meeting materials, limiting their ability to evaluate its impact. “Now you’re telling us new stuff. It is disrespectful,” Commissioner Kimble said.
Legal framework for enforcement
The IRB agreements give the county the right to issue notice of a potential breach and, if necessary, pursue remedies through the developers’ bond leases. Remedies could include termination of the leases, though the specific terms and any limitations would dictate the exact course of action.
Sanchez noted that any amendment to allow a utility connection would require approval from at least three commissioners, underscoring the board’s commitment to uphold the original contractual intent.
Oracle’s response and next steps
Oracle Executive Vice President Magesh Thiagarajan indicated willingness to reconsider the utility arrangement in light of the commissioners’ concerns. However, no definitive agreement was reached, and the discussion concluded without a clear determination on whether the proposed tie‑in violates the IRB.
The county will now work with its legal counsel and management team to formally deliver the notice of potential breach and continue negotiations aimed at protecting the interests of Doña Ana residents while seeking a viable path forward for the Project Jupiter development.
Original reporting: Organ Mountain News (Las Cruces / Doña Ana County) — read the source article.
