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Commission accepts $7.2 million state award to upgrade Hondale substation, enabling community solar
Summary
The commission approved accepting a state award of $7.2 million to upgrade the Hondale substation (PNM) to increase capacity for a community-solar project led by US Solar; staff said the award covers most costs and US Solar will pay the balance.
The Luna County Commission voted to accept a $7.2 million state grant to upgrade the Hondale substation to increase local electric capacity and enable a proposed community-solar project.
Planning staff explained that the state issued awards to improve grid capacity and that US Solar received an award for a community-solar project. The Hondale substation, owned by PNM, has operated at roughly 95 percent of capacity and limited new local generation and development, staff said. "They applied for $9,400,000. They got $7.2 [million] to upgrade the capacity of that substation," planning staff said, noting the recommended county action is to accept the award and manage the project; PNM and US Solar will follow procurement rules and be reimbursed for upgrades.
Commissioners clarified that the county would not be required to provide matching funds; staff said the difference between the award and requested amount will be paid by US Solar (about a 25% share). Following questions and a motion, the board approved the resolution by unanimous roll-call vote.
Staff said the upgrade will increase distribution capacity across the southwest corner of the state and remove a barrier for new development that previously would have required costly transformer upgrades by private developers.
