El Paso widens its Meta data center fight into ratepayer and CBA talks
El Paso is challenging a $551.8 million McCloud power plant tied to a planned Meta data center and voted to start negotiating a community benefits agreement.
El Paso is broadening its public challenge to a proposed, Meta-linked data center power project—using both a utility regulatory filing and new community-negotiation steps to press for protections residents say they need.
The city’s campaign now spans two tracks: it is opposing a proposed McCloud generation plant in the state utility process, and it is also moving forward on a community benefits agreement (CBA) connected to the Meta data center. City leaders say the common thread is ratepayer risk and enforceable local commitments as future data-center development comes with major utility demands.
June 18: City opposition frames the McCloud plant as a ratepayer-risk issue
On June 18, El Paso filed objections and urged regulators to deny approval of the proposed McCloud Generation CCN (certificate of convenience and necessity), according to the city’s press materials and local reporting.
In that filing, the city argued the project’s underlying analysis is deficient and that the approval request could expose ratepayers to higher costs and risk. The city also pointed to a project-scale figure of $551.8 million described in the proposal package, placing that number in the context of a dispute over whether the record adequately protects residents.
June 23: Council begins CBA negotiations for the Meta development
Separately, on June 23, El Paso City Council voted to begin negotiating a community benefits agreement tied to the Meta data center, as reported by KVIA.
Council’s stated goal is to bring the discussion beyond whether a single power plant should be approved. Instead, leaders said the CBA negotiations should address categories of impacts and responsibilities that typically come with large development—such as:
- Workforce and hiring expectations
- Environmental protections
- Infrastructure needs connected to growth
- Potential ways to address ratepayer cost exposure or related impacts
El Paso’s data center policy materials also describe how the city views CBAs as part of its broader approach to data-center development.
What this could mean for residents (and what’s still not final)
For residents, the shift is significant: El Paso is no longer treating the issue as only a “yes/no” debate over the McCloud plant. The city is tying its opposition to ongoing discussions about what local commitments should come along with future data-center growth.
But it’s important to note that both tracks are still in motion. The June 23 CBA vote starts negotiations—it does not lock in final CBA terms. Likewise, the utility/regulatory process for the McCloud project remains pending, including how regulators respond to the city’s filed objections.
What to watch next in El Paso
As the process unfolds, residents may want to track two key developments:
- Regulators’ next steps on El Paso’s objections to the McCloud CCN request and the city’s claims about cost/risk analysis.
- CBA negotiation updates that show whether and how the city is able to secure enforceable local commitments tied to hiring, environmental safeguards, infrastructure, and potential protections related to ratepayer impacts.
If you rely on electric service budgeting, the city’s messaging makes the ratepayer issue central—so the details of how the dispute and negotiations play out could directly shape what residents expect from future data center-related utility decisions.
Sources
- City of El Paso press release on McCloud CCN opposition (June 18, 2026)
- KVIA: El Paso opposes Meta-linked power plant (June 18, 2026)
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