MMR-Backed Transmission Project Reaches Permitting Milestone
August 2, 2013
PHOENIX, AZ (June 28, 2013) The SunZia Southwest Transmission Projects Final Environmental Impact Study (EIS) was recently issued by the U.S. Bureau of Land Management. SunZia is a utility-scale transmission project planned for the southwest. MMR is leading the permitting and development effort through its Phoenix-based subsidiary SouthWestern Power Group (SWPG).
SunZia consists of two 500kV transmission lines and multiple substations between central New Mexico and central Arizona. Once constructed, SunZia will enable the delivery of primarily renewable energy from new wind and solar generation projects, which will be built in both states, to customers and markets across the southwestern U.S., including California. Its one of only seven transmission infrastructure projects identified by the federal government for accelerated permitting treatment.
After nearly five years in the federal permitting process, we believe BLMs action provides the Project much needed regulatory certainty, said Jonathan Bruser, Manager of Development at MMR Group. This significant achievement gets us closer to creating thousands of American jobs and unlocking the energy potential in Arizona and New Mexico.
SunZia is the first independent 500kV transmission project in the West to have achieved this critical milestone. The issuance of the Final EIS is the last step in the federal permitting process, prior to the Record of Decision which is expected by late summer. MMR began project development work on SunZia in 2006.
SunZias total transmission capacity is 3,000 MW for two 500kV AC lines. The BLMs preferred route in the Final EIS covers approximately 515 miles. Total project cost is estimated at $2 billion and the project is expected to be in service by 2017.
MMR owns a majority stake in SunZia. Salt River Project (an electric utility headquartered in Tempe, AZ), Tucson Electric Power (an electric utility headquartered in Tucson, AZ), Tri-State Generation & Transmission Association (an electric utility headquartered in Westminster, CO) and Shell WindEnergy own the remaining equity interest. SWPG and MMR have engaged TAG Energy Partners, an independent investment banking firm based in New York City, as their exclusive financial advisor on SunZia.
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