Public Regulation Commission approves wind project

Xcel Energy has crossed a major hurdle in its path to making its 1,230-megawatt wind energy project a reality.

The New Mexico Public Regulation Commission voted unanimously on Wednesday to approve the Sagamore Wind Project, located 20 miles southeast of Portales, as well as the Hale Wind Project in Texas.

This result followed close to a month of debate about a mechanism Xcel had proposed in order to recover the cost of the $1.6 billion project.

The mechanism involved an undisclosed rate increase to Xcel customers before the commission could determine the feasibility of the increase, something NMPRC Commissioner Patrick Lyons wasn’t sure was legal, he told The News in February.

However, the resolution that will now allow Xcel to move forward was of Lyons’ design.

Instead of increasing rates for customers, Lyons proposed that Xcel sell the energy from Sagamore on the wholesale market once it’s operational.

“I think that will be better and won’t be as expensive to the rate payer, at the same time improving the wind farm. I think it’s a win-win and we’ve got it all worked out,” he said.

In a press release, Xcel Energy New Mexico and Texas President David Hudson called it a “historic day” for his company’s customers.

“These wind facilities will power the regional economy with energy from our abundant, fuel-free wind resource and save customers hundreds of millions of dollars in energy costs for decades to come,” he said.

Xcel Energy Spokesman Wes Reeves leveled most of his gratitude at community partners, who “had to spend a lot of time working on this.”

“They will benefit from this, but it can’t be done alone. We have to have the support of our communities, and we’re very pleased with that and very grateful with the efforts they put toward this,” he said.

Reeves said the next step is to await approval on the projects from the Public Utility Commission of Texas, after which construction can commence.

“Nothing’s guaranteed, but we’re very hopeful that they will look at that settlement and give us the approval we need,” he said.