An Update on Coyote Willow

After years of work and investment, the Accelergen team has made the difficult decision to pause development of the Coyote Willow Energy Park project. This was not a decision we made lightly, nor was it a reflection of this community or the support we received here. Ultimately, the decision came down to one major structural barrier: an unexpected $350 million cost to upgrade the transmission lines required to connect to the electric grid. Before an energy project can deliver electricity to residents in Chaves County and the broader region, it must connect to the electric grid — the network of power lines that carries electricity from where it's generated to homes and businesses. That connection process requires a formal review by the regional grid operator to determine whether upgrades to existing infrastructure are needed to safely handle the additional power.
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When the most recent review was completed for Coyote Willow, it identified more than $350 million in required transmission upgrades before the project could move forward. While those upgrades would strengthen the utility system and benefit the broader electric grid for decades to come, current federal policy requires the project developer to pay the entire cost up front. As you can imagine, that level of expense is extremely difficult for any single project or company to absorb.
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This outcome is disappointing not only for our team, but also for Chaves County. The project was expected to generate approximately $18 million in local tax revenue while also bringing a new source of American-made energy to the region at a time when electricity demand continues to grow. When projects are delayed or canceled because of infrastructure barriers, fewer new resources are available to meet growing demand, which can contribute to higher electricity costs over time.
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The rules that stopped Coyote Willow are set by a federal agency called the Federal Energy Regulatory Commission (FERC), which is overseen by Congress. If you want to see projects like this built in New Mexico, contact Senators Martin Heinrich and Ben Ray Luján and tell them so. Ask them to push for fairer rules on who pays to upgrade the grid. Change often begins when communities make their voices heard.
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We're grateful for the relationships we built in Roswell and Chaves County, and we hope there will be an opportunity to work together again in the future.