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Dec. 30: When we set out to create a column about the most impactful business stories of the year, it wasn’t exactly easy to figure out what they were all about. Of course, some stood out, such as those from Virgin Galactic and In-N-Out. But the sheer number of articles this office has written over the past 12 months about fitness, technology, cannabis, utilities and energy have had the maximum effect and all deserve their own recognition.
However, we had to make a list, and that’s what we got. Here are the biggest stories from the Journal’s business this year.
Galactic Virgo
The spaceflight company founded by Sir Richard Branson has had its most monumental year since its inception in 2004. For the first time, the company announced flights in orbit (five, in fact) that caught the attention not only of New Mexicans, but also of the world.
Commercial flights began with three Italians shooting toward the suborbital from Virgin’s Spaceport America base in southern New Mexico. They ended up with Kellie Gerardi and Alan Stern, best known for his role as principal investigator of NASA’s New Horizons project to explore Pluto and the Kuiper Belt: conducting tests in the roughly 3 or 4 minutes they were in suborbit. A flight in August also allowed the first mother-daughter duo and the first Olympian to move into space.
But Virgin Galactic followed up its last publicity flight of the year in November by announcing layoffs across its operations, adding 73 positions in New Mexico, while focusing on building the next generation of Delta ships that are expected to make more common voyages to suborbitals. And, in December, Branson told the Financial Times that he no longer plans to invest cash in the company, bringing up the demanding situations his business empire is facing in the wake of the COVID-19 pandemic. 19.
Despite that, Virgin Galactic, Branson said, still has about $1 billion to work with. And the company announced it plans to send its sixth commercial flight to space in January from the Spaceport, which will also be the first time the company will have four paying passengers aboard the flight.
Maxeon Solar Technologies
In one of the biggest expansion announcements in the state’s history — and certainly since Intel’s — Singapore-based Maxeon Solar Technologies said it plans to build a roughly 1.9 million-square-foot facility at Mesa del Sol, where it will open the nation’s first new domestic factory in over a decade to build both solar cells and panels.
The move by Maxeon to come to Albuquerque, the company said, also will bring up to 1,800 jobs, once complete. Meanwhile, the company may invest more than just the $1 billion it said when it announced the expansion.
Mark Roper, director of the New Mexico Department of Economic Development, said Maxeon could invest up to $2. 4 billion over 20 years, adding $1. 1 billion in structure and the rest to equip the plant.
In an Executive’s Desk column for the Journal’s Business Outlook section in September, Gov. Michelle Lujan Grisham wrote in part: “When Maxeon Solar Technologies comes to New Mexico, they’ll bring with them $1 billion in investments that will promote our state economy. They’ll create 1,800 new jobs that will help New Mexicans support their families and build their careers. Together, the impact will represent an enormous economic benefit and a resounding vote of confidence in New Mexico’s strength as an economic hub.”
Burger & Out
For most New Mexicans, this is probably the biggest news of the year — business aside.
In-N-Out Burger, the famous chain known for its simplistic menu and consistent service, announced in November (finally!) that it plans to establish its burger joints in New Mexico, with Albuquerque.
Restaurants are expected to run through 2027, the company told the Journal, and we know where at least one of those outlets will be located: in the University of New Mexico’s South Campus Tax Increase Development District.
David Campbell, chief executive of Lobo Development Corp. , which will be approaching the university’s athletic facility, told the Journal that the In-N-Out will be just west of the chimney station at Gibson and Interstate 25. He said the burger chain bought the land, about two acres, from UNM for $2 million.
As for other locations in the city or state, we’ll just have to wait and see.
The PNM-Avangrid merger underway
The Public Service Co. of New Mexico wants to merge with Avangrid, an energy company based in Connecticut and a subsidiary of the energy giant Iberdrola. The companies first proposed the deal in 2020. Avangrid would buy PNM for $4.3 billion, and the companies would ensure economic benefits for local communities. Nearly all environmental and governmental entities originally opposed to the merger later announced their support, except Santa Fe-based New Energy Economy.
However, the New Mexico Public Regulation Commission rejected the merger in 2021. Avangrid and PNM appealed the ruling to the New Mexico Supreme Court in early 2022. The Supreme Court heard arguments on the case in September 2023 but did not make a ruling.
It is still up to the Supreme Court to confirm the PRC’s rejection of the merger or send it back to the PRC for reconsideration. If it is returned to the People’s Republic of China, a new group of state regulators will review the deal, not the ones that first rejected it. A resolution is expected in early 2024.
Saturation of the hashish market
The state legalized recreational hashish in 2021 and sales began in April 2022 with much enthusiasm. Pro-legalization state officials said at the time that the industry could open up a new path for budding entrepreneurs, while others said the lack of licensing limits set by the law may simply create a saturated market.
Both points have proven to be true. But the latter point, especially in 2023, has come to fruition. More than 600 shops reported sales through the state’s track-and-trace system BioTrack in October. And more than 200 alone were in Albuquerque, where shops densely populate some areas of the state’s largest city.
The crowded market prompted about a hundred hash business leaders to send a letter to Luján Grisham this summer, asking him to suspend licenses due to the “extreme instability” in the sector. And there have been discussions about the law for the 2024 consultation, also calling for a pause in licensing.
Presbyterian Fusion
Presbyterian Healthcare Services, one of the state’s largest health systems, in March announced it planned to merge with Iowa-based UnityPoint Health for the consolidation of administrative services. The move, Presbyterian said, would ultimately ease costs on both not-for-profit health systems and would create an $11 billion health care conglomerate.
But the deal fell through in October, and Presviaterian CEO Dale Maxwell declined to tell the Journal why. However, he said PHS would explore other options, as the fitness formula was facing budget shortfalls that led it to restructure. Budget reduction by $105 million.
“We will have to continue our efforts with cutting-edge ideas, cutting-edge business practices, and potential partnerships to triumph over those spending pressures and remain an organization that will continue to provide high-quality care to New Mexicans,” Maxwell told the Journal.
The State and the municipalities adopt complex rules on blank cars
In a move that has caused a stir, national and local air quality councils this year followed a handful of blank automotive regulations designed to increase the percentage of zero-emission vehicles, or ZEVs, delivered to the state. The regulations are broadly aimed at new cars and the percentage required are ZEVs. For example, the Advanced Clean Cars II rule states that starting with the 2027 style year, automakers will be required to hand over 43% ZEV to state dealers. And through the 2032 style year, that percentage will increase to 82%.
The Advanced Clean Truck Rule will identify similar regulations for the delivery of new cars such as pickup trucks, delivery trucks, and transit buses. And the heavy-duty bus targets the emissions and lifespan of heavy-duty cars through stricter testing procedures, New Mexico Department of the Environment officials said.
SunZia Breaks Ground
The SunZia transmission and wind project broke ground in September, kicking off a three-year construction process to bring the massive renewable-energy system online by 2026. It is billed as the largest single clean-energy development effort in U.S. history, and possibly the largest ever in the Western Hemisphere.
The project will ultimately transport up to 3 gigawatts of wind energy — enough power to meet the needs of 3 million people — from central New Mexico to south-central Arizona for use in western markets via a new 550-mile high-voltage transmission line.
Pattern Energy, the developer, plans to invest $8 billion to build the system, employing another 2,000 people at the height of construction, followed by 110 permanent workers.
Journal staff writer Megan Gleason contributed to this report.