Sandoval County outlines solar project timeline and negotiations with PNM

In a recent Sandoval County Commission meeting held on May 28, 2025, significant discussions centered around the timeline and financial implications of a new solar energy project. The project is expected to span 20 years of operations, following a construction period of approximately 20 months, which is anticipated to begin in the second quarter of 2027. This timeline is contingent upon the approval of an ordinance, likely to be finalized by July 2025.

Key financial details were also addressed, including a proposed 5% annual increase in payments over the project's lifespan, which will begin after an initial baseline year that is still under negotiation. These payments, known as pilot payments, will not commence until 2029, marking a critical financial milestone for the project.

Commission members raised questions about the future of the project after the initial 20-year operational period. It was clarified that once this period concludes, the industrial revenue bond (IRB) associated with the project would cease to exist, and all equipment would be subject to taxation. The project operator will then face important decisions regarding the future of the facility, including potential renegotiations with Public Service Company of New Mexico (PNM) for continued energy supply or upgrades to newer technology.

The discussion also highlighted the ongoing process of responding to PNM's request for proposals (RFP) for renewable energy. The IRB approval is a strategic move to secure financial stability for the project, allowing the operator to present a solid financial model to PNM as they compete for energy contracts. The RFP process is expected to unfold within the current quarter, with the New Mexico Public Regulation Commission (PRC) required to approve the RFP before it can be issued.

Overall, the meeting underscored the complexities involved in launching large-scale renewable energy projects in Sandoval County, emphasizing the need for careful planning and negotiation to ensure long-term viability and compliance with regulatory frameworks. As the project progresses, stakeholders will be closely monitoring developments, particularly regarding the outcomes of negotiations with PNM and the PRC's approval processes.