Major Utilities Partner on New Mexico Solar Project

New Mexico’s four largest electricity providers are partnering to bring
the first large-scale, commercial solar generating plant to the state. 

El Paso Electric (NYSE: EE), Xcel Energy (NYSE: XEL), PNM (NYSE:
PNM), and Tri-State Generation and Transmission Association today
jointly issued a request for proposals (RFP) for the construction of a
solar parabolic trough in New Mexico to provide solar electricity to
each of the utilities by 2012.

Thermal energy storage is encouraged, and the facility must be
able to deliver between 211,000 and 375,000 megawatt-hours (MWh) per
year–enough to power between 29,000 and 52,000 average New Mexico
homes.

The RFP follows a feasibility study commissioned by the
utilities last year. The study, performed by the Electric Power
Research Institute (EPRI), found that the most feasible solar
technology currently available for a large-scale New Mexico plant is
parabolic trough. This technology utilizes a series of trough-shaped
mirrors to focus sunlight onto an oil-filled tube, and then uses the
hot oil to generate steam. The steam is used to turn a generator,
producing electricity. When combined with thermal energy storage, this
solar technology is capable of generating electricity at night, as well
as during cloudy periods.

If a viable project emerges from the RFP process, the utility
partners expect to have a contract negotiated by the end of 2008, and
energy from the project could be serving New Mexico customers by the
end of 2011 pending regulatory approvals.

Parties interested in submitting a proposal can learn more about the RFP process online.

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