A huge plot of rural land in eastern New Mexico could soon become a major power hub for the U.S. if a start-up merchant transmission company is successful in developing a nearly $2-billion project to interconnect the three main power grids in the U.S. The project, known as Tres Amigas, is also expected to boost construction of new transmission lines and wind and solar farms in N.M. and the Southwest.
Last month, Santa Fe, N.M.-based Tres Amigas LLC filed papers with the city of Clovis, N.M., to issue $1.65-billion in industrial revenue bonds for the construction of the facility on 14,400 acres of land approximately 12 miles north of the city. Due to complex negotiations with various stakeholders, the start date has been gradually pushed back from 2011 to January 2013.