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Commission approves industrial revenue bond for Tip Top 110 MW solar project
Summary
Lea County commissioners approved Ordinance 107 authorizing industrial revenue bond treatment for the Tip Top Solar Energy LLC project (up to $195 million principal). County staff and bond counsel said the bonds provide tax abatement mechanisms while project payments in lieu of taxes will fund local government and schools.
Lea County commissioners voted to approve Ordinance 107 on March 12, authorizing an industrial revenue bond (IRB) transaction for the Tip Top Solar Energy LLC project that allows tax abatement mechanisms for a 110‑megawatt solar facility in Lea County.
County counsel and the company’s bond counsel explained the IRB would provide property‑tax and gross‑receipts tax abatements on eligible equipment while the company would make payments in lieu of taxes (PILOTs) that county staff said would be shared with county and school districts according to state formula. Staff and bond counsel emphasized the county is not financially liable for the bond principal and that the obligation rests with the company.
Company project developer Bree (Bree) Grease told commissioners Tip Top is sited on about 1,300 acres roughly 21 miles west of Jal, will interconnect via a short transmission tie to the Roadrunner 115‑kV substation, and has a 30‑year power‑purchase agreement with META. Grease said construction began in June 2025 and the project is roughly 60% complete, with commercial operation targeted in October 2026. Project manager Donald Tu said the site currently has about 200 workers on site and peak construction recently passed.
"Tip Top is a 110 megawatt solar energy project located approximately 21 miles west of the city of Jal," Grease said in her presentation.
Commissioners asked clarifying questions about county exposure and tax flows; counsel and staff reiterated the county is statutorily barred from paying bond principal and would not be at risk for the $195 million principal. A motion to approve the ordinance passed on recorded vote.
The ordinance authorizes use of the IRB mechanism for tax abatement and related agreements; final bond issuance and any PILOT schedule will occur under subsequent documentation and statutory approvals.
