Oracle Proposes Plan that could deliver at least $155M to offset customers utility costs in New Mexico

Proposed energy service agreement with El Paso Electric anticipates at least $100 million spend on power over 10 years to support affordable electric rates

Oracle (ORCL) additionally proposes a credit of $55 million annually for up to three years for the utility’s residential and small business customers in New Mexico

Oracle announced a proposed Energy Service Agreement with El Paso Electric (EPE) for Project Jupiter to support late-stage construction, initial commissioning, emergency backup power at the site and to meet life safety needs for New Mexican workers at the data center.

As indicated earlier this year, the primary power source for Project Jupiter will continue to be provided by the Bloom Energy fuel cell microgrid. There is no change to our plan.

As part of the Energy Service Agreement, Oracle expects to pay $10 million for power annually for 10 years even if its usage is below contracted levels. This agreement helps offset shared electric system costs that would otherwise be borne by EPE’s New Mexico customers and supports affordable electric rates.

In addition, a separate agreement includes a proposal to provide as much as $55 million annually in direct credits for up to three years for EPE’s New Mexico residential and small business customers. This credit could begin benefiting customers in 2027.

“We welcome the opportunity to facilitate Oracle’s credit to further affordability for our customers,” said Kelly Tomblin, president and CEO of El Paso Electric. “Growth and investment in New Mexico has always been an EPE priority and we support the effort Oracle is making to ensure that this growth benefits our residential and small commercial customers.”

Earlier this year, Oracle signed the White House Ratepayer Protection Pledge and made a commitment to pays its own way for energy and infrastructure costs. The proposed agreements with El Paso Electric not only ensure that Oracle pays for the energy costs, but it also supports affordable rates and additional offset of energy costs for its neighbors.

“We realize the impact that electric rate increases have on the community and our proposed solution takes that burden off of New Mexico ratepayers,” said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure. “We’re taking this action now — well before our data center comes online — to deliver a direct, meaningful benefit to New Mexico households and small businesses and help ensure the community shares in the value created by Project Jupiter.”

Additional information will be provided following the filing of the Energy Service Agreement.