Sagamore wind project in jeopardy

ALBUQUERQUE — A hearing examiner is urging New Mexico regulators to reject an earnings proposal related to Xcel Energy’s two planned wind farms along the Texas-New Mexico border.

One of those proposed projects is the Sagamore Wind Project, a 522-megawatt wind farm that would be located 20 miles southeast of Portales.

At issue is a proposal that would allow the utility to recover lost earnings that accumulate between the time when the wind farms actually come online and when the state Public Regulation Commission approves new rates for cost recovery and profits on the projects.

The Albuquerque Journal reported the utility would collect lost earnings through a surcharge on customers’ bills once new rates take effect.

Hearing examiner Elizabeth Hurst says the proposal amounts to retroactive ratemaking.

The interim rate design is part of a settlement negotiated with consumer advocates and others. Without it, utility officials say they might have to abandon the $1.6 billion project.

Xcel officials said in December they were making progress toward building the Sagamore project and a similar one in Hale County, Texas, near Plainview.

If all goes as planned, Sagamore would be largest wind farm in New Mexico, according to Xcel.