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
