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By New Mexico State Land Office
Public Schools are the Sole Beneficiary of Revenues Earned
SANTA FE, NM – State Land Commissioner Aubrey Dunn today announced Avangrid Renewables’ El Cabo Wind Project, located four miles west of Encino in Torrance County, has commenced commercial operations.
The 87,000-acre project spans 27,000 acres of State Trust Lands and 60,000 acres of private property. The facility will consist of 142 turbines – 10 of which are on State Trust Lands – and will produce 200 megawatts of energy, enough to power nearly 61,000 homes and businesses. Transmission will use existing Public Service Company of New Mexico (PNM) lines to Clines Corners.
El Cabo Wind Project is the fifth wind energy project to commence operations on State Trust Lands and there are seven additional wind-related projects pending in Torrance, Union, Colfax, Roosevelt, Lincoln, Guadalupe, and San Miguel counties. In all, active and pending wind energy projects could traverse 146,352 acres of trust lands producing more than 10,000 megawatts of power.
Avangrid Renewables has agreed to pay the State Land Office an annual rental of $84,000 plus a percentage of gross revenues. Public schools are the beneficiary of revenues earned from the project. Public school revenues earned on State Trust Lands flow into the state’s General Fund and are distributed to school districts as appropriated by the state Legislature.
“New Mexico has the potential to be a powerhouse for the wind industry,” said Commissioner Dunn. “By expanding wind power we are impacting local economies, generating revenue for education, and creating new opportunities for manufacturers and service suppliers. I encourage industry leaders to take advantage of our vast open spaces, windy climate, qualified workforce, and business-friendly tax incentives.”
Avangrid Renewables has already invested, or committed, $38 million to the economy by contracting with Albuquerque-based engineering, construction, and planning and design firms. A less tangible, but still valuable contribution to the local economy includes the opening of a new restaurant – Fire House in Encino.
In 2007, New Mexico passed a renewable portfolio standard (RPS), requiring utilities to generate 20 percent of their 2020 sales from renewable resources. The RPS contains a wind carve-out that requires wind to meet at least 30% of the total requirement.
For the 12 month period ending October 2016, wind energy provided nearly 11percent of all in-state electricity production.
In Fiscal Year 2017, the State Land Office earned $908,086 from renewable energy projects on State Trust Lands.
Oil, gas, and mineral production, ranching and farming, and commercial development on State Trust Lands support public schools, seven universities, New Mexico Military Institute, New Mexico School for the Deaf, New Mexico School for the Blind and Visually Impaired, three hospitals, correctional facilities, water conservation projects, and public building construction and repair. In fiscal year 2017, the State Land Office collected $546 million from lease payments, oil and gas lease sale earnings, rights-of-way, permits, interest, fees, and oil, gas, and mineral royalties.
