Posts Tagged ‘El Paso Electric’

Photo by Tom McConnell

One of the largest concentrating photovoltaic (CPV) systems in North America is expected to be online this summer on 39 acres in the Hatch Industrial Park, 7 miles west of the Village of Hatch. The 5-megawatt (MW) system, with 81 solar tracking concentrator panels, is being built and operated by NextEra Energy Resources, a subsidiary of NextEra Energy, Inc. The project was funded by Village of Hatch Industrial Revenue Bonds. The Village put an emphasis on New Mexico jobs for New Mexicans.

Blattner Energy of Albuquerque is the construction contractor for the solar array and Warren Construction of Las Cruces will build the operations and maintenance building. The project began in February 2011 with approximately 60 employees during the construction phase.

The Village is actively working on a second solar project. Power generated from the projects will be sold to El Paso Electric under Purchase Power Agreement (PPA) to help meet the Renewable Energy Portfolio Standard (“RPS”) requirements of the New Mexico Renewable Energy Act.

As part of its “Business Connection Series,” the Mesilla Valley Economic Development Alliance (MVEDA) will host a pre-bid briefing for solar developer SunEdison on Monday, March 7^th from 9:00-11:00 a.m. at the Dona Ana County Government Center, 845 N. Motel Boulevard. The purpose of the briefing is to communicate the types of services that will be needed as SunEdison moves forward in developing a solar energy project at the City’s West Mesa Industrial Park.

SunEdison representatives will discuss the company’s construction plans and the opportunities for local contractors and vendors to bid on the project. Immediate needs will include:

• Electrical contractors and certified electricians
• Civil engineering specialties including:

o    Grading

o   Access road work

o   Surveyors

o   Concrete work

o   Trenching

o   Underground boring

• Mechanical engineering  specialties including:

o   Tracker systems

o   Racking assembly

o   Welding

o   Fencing

• Other specialties including:

o   Re-vegetation

o    Sanitation

o   Water and temporary facilities

Local vendors in these specialties are encouraged to RSVP to the Mesilla Valley Economic Development Alliance by calling (575) 525-2852 or by email to biz@mveda.com.

About SunEdison

SunEdison is North America’s largest solar energy services provider, currently managing more than 135.8 MW of photovoltaic solar power plants in North America. SunEdison is currently in negotiations with the City of Las Cruces to lease land at the West Mesa Industrial Park to develop a 12MW solar power plant under a Purchase Power Agreement with El Paso Electric.

On Monday, January 10^th, the Dona Ana County Legislative Coalition (DACLC) briefed Dona Ana County legislators on the Coalition’s 2011 legislative priorities. The event, sponsored by El Paso Electric (EPE), was held at the Hotel Encanto de Las Cruces. Garrey Carruthers, Dean of the NMSU College of Business and former New Mexico Governor, moderated the briefing.

Photo courtesy of Fred Shepherd

Bill Connor (pictured right), Chair of the DACLC, began the briefing with background on the Coalition. The Coalition was formed in the fall of 2007 to identify and promote significant legislative initiatives to benefit Las Cruces and the surrounding communities’ economic and developmental needs. Members include: City of Las Cruces, Dona Ana County, New Mexico State University,  Las Cruces Public Schools,  Gadsden Independent School District, Hatch Valley Public Schools, The Bridge of Southern New Mexico,  Greater Las Cruces Chamber of Commerce, Hispano Chamber of Commerce de Las Cruces, and the Mesilla Valley Economic Development Alliance (MVEDA).

Connor discussed three legislative appropriations requests which include: $850,000 for planning of a new Mesilla Valley Regional Dispatch Authority facility; $2,100,000 for construction of a Crisis Triage Center; and $6,000,000 for access roads and infrastructure for new Las Cruces schools under construction on the East Mesa.

The DACLC economic development priorities include the support of existing incentives, support of funding for the New Mexico Partnership, passage of the Locomotive Diesel Refuel Tax Exemption, creation of an overweight border commercial zone, and creation of a permanent Border Infrastructure Fund.  The passage of the Locomotive Diesel Refuel Tax Exemption is critical for the announced expansion by Union Pacific in the Santa Teresa area.

The Coalition’s presentation included a number of legislative actions for education restructuring and policy changes. They included: reducing bureaucracy in the public and higher education departments; more efficient reimbursements to the public schools systems; reassessing tuition credit funding formulas; and support of expansion of dual credit courses.

In the final presentation, Clay Doyle, Vice President of New Mexico Affairs for El Paso Electric, discussed the forecasts of future electricity usage in the region.  He noted that during the next 5-7 years the company will invest approximately $600 million in new generation and between 2015 and 2020, EPE will need to add 150-175MW of generation annually.

In his closing remarks, Carruthers reminded the audience of the upcoming Las Cruces Day in Santa Fe, which is hosted each year by the Chamber’s Conquistadores. This year’s event will be held January 29-31^st at the La Fonda Hotel on the Plaza.

Article courtesy of Las Cruces Sun-News

By Steve Ramirez

LAS CRUCES – To buy or lease? That is the question for SunEdison. The answer could mean at least an additional $1 million profit to the city.

In consecutive weeks, SunEdison, a global leader among solar companies, has entered into one-year options with the city of Las Cruces to either buy or lease city land to develop and operate a solar generation plant. Monday, the Las Cruces City Council unanimously approved a proposed sale agreement with the company that could bring as much as $1.2 million to the city’s West Mesa Economic Development Fund.

Last week, the council approved a lease agreement that has the possibility of raising as much as $2.3 million during a 30-year term stipulated in the agreement. Those proceeds would go to the city’s Airport Fund.

Both agreements include one-year options to enable company officials and engineers to conduct feasibility and technical tests to determine the best location for the solar generation plant. The option year is also expected to provide SunEdison with enough time to learn if a proposed power purchase agreement with El Paso Electric is approved by the New Mexico Public Regulation Commission. Those options include a $1,000 payment to the city, and there is a provision that if another option year is needed, SunEdison would pay the city $1,500 for the extra year.

Christine Logan, city administrator for economic development and revitalization, clarified to the council and city administrators there will only be one solar generation plant. “Contrary to prior information, it’s important that the public understands that there is potential for only one solar project on the West Mesa,” Logan said. “The purchase agreement is one of two options SunEdison is considering, and they will pick one of them.”

SunEdison has entered into a planned power purchase agreement with El Paso Electric. That agreement calls for SunEdison to sell 24 megawatts of solar power to the utility. El Paso Electric Co. provides electricity to about 80,000 customers in southern New Mexico, most in Las Cruces.

The proposed power purchase agreement has been submitted to the New Mexico Public Regulation Commission, and Jared Schoch, Southwest Regional Sales Manager for SunEdison, said company officials are hopeful PRC approval could happen within the next few months. “We’re hopeful there will be a decision by the end of December,” Schoch said.

If the purchase power agreement gets PRC approval, SunEdison would be able to increase its solar power production in North America by more than 21 percent. According to the company’s website, it currently manages more than 112.5 megawatts of photovoltaic solar power plants in North America, not including the 24 megawatts it wants to produce for El Paso Electric.

To produce 24 megawatts of photovoltaic power, Logan said SunEdison would probably need a generation plant of 150 to 170 acres. The location for the potential facility at the West Mesa Industrial Park is south of F&A Dairy and adjacent to a city wastewater treatment plant that serves the industrial park.

But whether SunEdison buys or leases city land, city officials still believe the deal is worth consummating. “This is a good project to go with,” Councilor Gill Sorg said.

Some residents aren’t as concerned about the city selling or leasing the land, as much as they have questions about how the proposed generation plant will affect their future monthly electric bills. “I haven’t heard, and would like to know, if this solar generation plant is going to be able to lower our bills,” said Kyle Ivery, a retired draftsman who has lived in Las Cruces for about eight years. “It makes complete sense that a company like that would be interested in coming to Las Cruces. But I hope there’s some kind of incentive or motivation to help out the local guy who lives here.”

Steve Ramirez can be reached at (575) 541-5452.

Article courtesy of the Las Cruces Sun-News

By Steve Ramirez

LAS CRUCES – The lease approved Monday may be just the start of plans by SunEdison to build two solar power plants in Las Cruces and sell the power to El Paso Electric Co.

Along with the one-year option on a lease agreement approved Monday by the Las Cruces City Council, there’s also an agreement in place between the worldwide solar energy company and El Paso Electric for SunEdison to provide 24 megawatts annually, in renewable energy. A megawatt is equal to 1,000 kilowatts or 1 million watts. That means SunEdison’s option to build one – and very likely two – solar generating facilities in west Las Cruces appears more likely than conceptual.

“That’s our hope and plan,” said Ricardo Acosta, director of resource and delivery planning for El Paso Electric. “At this point we’re awaiting regulatory approval from the New Mexico Public Regulation Commission. We have a hearing on Thursday to gather facts of the case, and hopefully, we could hear something from them in November or December.”

Jared Schoch, Southwest regional sales manager for SunEdison, said as many as 200 construction jobs could be created when work begins to build the two generating facilities and there would be jobs, although fewer in number, to maintain and operate the two facilities. “For the construction phase there could be anywhere from 20 to 30 different contractors working on the project,” Schoch said. “A lot of that labor is going to be local.” Schoch added that construction to build the two facilities could take 18 to 20 months to complete.

Clay Doyle, vice president of New Mexico Affairs for El Paso Electric, said SunEdison was selected earlier this year from the more than 20 companies after El Paso Electric issued a request for proposals.

The council voted 6-0, with Councilor Dolores Connor abstaining – because her husband works for El Paso Electric, to approve the lease agreement for land near the Las Cruces Airport. There was also quick consensus to bring forward a proposed land sale of as much as 200 acres at the West Mesa Industrial Park for a second generating facility. The land sale agreement will be formally considered by the council at its Nov. 1 meeting.

“It’s great to have private-sector partners,” Councilor Nathan Small said. Added Councilor Olga Pedroza, “It’s a good thing all around and I’m glad to be working in partnership.”

But Las Crucens Jim Hayhoe and Leon Billstone, who said they supported the development of solar energy, expressed concerns that the council could get a better financial return. “I cannot believe you’re getting fair market value,” said Hayhoe, of the $500 per acre lease agreement for land located just south and west of Las Cruces International Airport. “(And) One thousand dollars is a ridiculous option amount.”

Billstone said, “It looks awful cheap to me. But the project is good, as long as it’s not going to hurt the airport.” Billstone was also a bit concerned that the generating facility could hinder glide paths of aircraft approaching the airport’s Runway 4-22. However, city officials heeded a recommendation from the city’s Airport Advisory Board and stipulated in the lease agreement that the facility cannot interfere with aircraft or airport operations.

Christine Logan, economic development and revitalization administrator for the city, pointed out that the site for the generating facility is near El Paso Electric’s airport substation, just off of Interstate 10. El Paso Electric also has a power line that runs above the property SunEdison is interested in leasing. Power from the generating facility would either be transmitted to the nearby substation or to the power line above it.

Steve Ramirez can be reached at (575) 541-5452