Tres Amigas signs agreement for Scandia Wind's planned Mariah wind farm to be 'anchor tenant' of its SuperStation near Clovis, New Mexico, that will connect nation's three electricity grids; Scandia to use 50% of initial capacity

BOVINA, Texas , March 21, 2011 (press release) – On Thursday, March 17, 2011, wind power development company Scandia Wind Southwest LLC (“Scandia”) signed a term sheet with Tres Amigas LLC (“Tres Amigas”), the company behind the plans for the World’s largest AC to DC to AC conversion substation, to be located north of Clovis, New Mexico. The term sheet will form the basis for the final negotiations for an anchor tenant agreement between Scandia and Tres Amigas.

The purpose of the anchor tenant agreement is to provide transmission services to Scandia to become an anchor customer in the first phase of the Tres Amigas superstation. As an anchor customer, Scandia will utilize 50 percent of the initial capacity of Tres Amigas in order to enable Scandia to move 375 MW of electric renewable wind power to the west.

Scandia is developing wind generation facilities in northwest Texas and is the company behind the Mariah Project, a large wind power project located in the Sherman, Dallam and Parmer counties in the Texas Panhandle. The Mariah Project, when fully installed, has the potential to power up to 10,000 MW of wind energy.

Tres Amigas will enable the connection of America's three primary interconnections, the Western, Eastern and Texas Interconnects (WECC, Eastern, ERCOT), while integrating substantial renewable energy sources.

-    This is a very important and significant day for the Mariah Project, says Scandia Wind Southwest LLC CEO, Jim Swafford. The agreement with Tres Amigas LLC will enable the Mariah Project to provide all corners of the US with clean and renewable power, something which is not possible today.

-    Today the US is constrained within three separate national grids. When completed, the Tres Amigas super station will change the US energy markets by tying together the three US grids. This will enable and facilitate the distribution of clean and renewable energy throughout the country, from where the best renewable sources are to where the majority of the energy is being consumed. It is very exciting to be a part of this development, says Scandia Wind Southwest LLC CEO Jim Swafford.

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