Dateline: February 15, 2007

Wind farm project moving forward

Donley County Commissioners approved the creation of a reinvestment zone Monday that opens the door for abating taxes on a proposed wind farm.

The zone covers more than 4,659 acres on the Trew Ranch along the northern county line where the Maryland-based Competitive Power Ventures, Inc., (CPV) intends to erect 39 wind turbines capable of generating 1.5 megawatts each.

County Judge Jack Hall said the commissioners’ court was excited about the opportunity CPV was bringing to Donley County.

“We want something good for the company, the county, and all the citizens of Donley County,” he said.

The wind farm project will have a total of 57 turbines, some of which will be in Gray County, and the project will cost between $125 and $135 million with between $83 and $93 million of that being invested in Donley County.

CPV Corporate and Project Development Director Paul Wendelgass told commissioners that work is progressing on the proposed wind farm.

“We’ve just received a facility study from the Southwest Power Pool with an estimate of the cost to connect to the Kirby Substation in Gray County, and we will be meeting this week with Xcel Energy regarding the interconnect,” Wendelgass said.

CPV is still negotiating with buyers for their electricity. Construction is expected to start in October or November with turbines being delivered in May 2008 and the farm coming online next summer, Wendelgass said.

Approval of the reinvestment zone during Monday’s regular session of the commissioners’ court followed a public hearing attended by seven Donley County citizens, who asked questions about the abatement process and the purpose of the reinvestment zone.

Judge Hall explained that the creation of a reinvestment zone is just the first step in the abatement process, and he said that the Clarendon College District, Donley County Hospital District, and the Panhandle Groundwater Conservation District could use the same zone to grant abatements if they choose. The Clarendon school district can also use the zone to consider a Chapter 313 property value limitation in lieu of a tax abatement.

Clarendon resident Darrell Leffew inquired about the details of CPV’s tax abatement, but Wendelgass and CPV attorney Dale Cummings said the abatement itself is still subject to negotiation and would have to come before the commissioners at a later meeting.

“I think it’s a wonderful project,” Leffew said. “We need everything we can get in Donley County for our tax base. I know you need some break. However, the county does need the tax revenue at the same time. I’m sure there is a comfortable area there.”

Another local citizen, Bill Helton, who owns land in the northern part of the county, said he and neighboring landowners were watching the court to see how they handled this reinvestment zone request because his and others’ properties are also potential candidates for wind farms.

“This is a precedent setting decision for the whole county,” Helton said prior to the zone’s approval. “We’d love you to proceed with the zone.”

The county has retained legal counsel from Sweetwater, Texas, to help with tax abatement negotiations, Hall said. Both the county and CPV said they hope to see the abatement on the commissioners’ agenda in either March or April.