Lucky Corridor LLC, developer of a planned transmission project in northern New Mexico, has signed an anchor tenant agreement with Gallegos Wind Farm LLC to use 300 MW of the transmission project's estimated 850 MW of east-to-west capacity.
The Federal Energy Regulatory Commission granted Lucky Corridor authority to engage in negotiations with anchor customers in October 2012. The transmission project includes 100 miles of planned double-circuit, 230 kV line, plus additional upgrades to systems west of the project.
The Gallegos project, which is owned by an affiliate of an agricultural conglomerate based in Texas, plans to develop energy resources on up to 40,000 acres in Union County, N.M. Current efforts are under way by Gallegos to win power purchase agreements at the Four Corners NYMEX hub.
"Transmission upgrades in the renewable energy and gas resource areas near Four Corners, such as we have proposed, are a step toward protecting this NYMEX hub and its large historic distribution network as the Western grid's energy resource mix evolves," says Lynn Greene, CEO of Lucky Corridor.
In addition, a new memorandum of understanding between Lucky Corridor LLC and the New Mexico Renewable Energy Transmission Authority (NM RETA) was approved as of July 16. Pursuant to that contract, NM RETA will assist in the design of Lucky Corridor's construction phase project finance structure.