State officials and local business leaders gathered in Winslow on July 11, to celebrate AES’ $267 million investment in the state’s economy as it builds the Chevelon Butte wind farm. According to AES, over 800 people will be impacted by direct and indirect jobs associated with building the project, resulting in a vital source of jobs in Coconino and Navajo counties, which jointly host the wind farm.
The location of the wind farm is on the O’Haco family’s Chevelon Butte Ranch. The O’Haco’s are a third-generation ranching family and their Chevelon Butte Ranch is one of the oldest working cattle ranches in Arizona.
Arizona Governor Katie Hobbs, the majority of the Arizona Corporation Commission’s members and top officials from Arizona Public Service attended the event, which coincides with the project commencing operations of Phase 1 of the Chevelon Butte wind farm.
Addressing those in attendance, Gov. Hobbs stated, “While our state continues to experience holistic economic development growth, it is my priority to ensure this growth is done in a way that takes into account the real environmental challenges we face, while paving a path to long-term prosperity. There is no better place to do that than our rural communities. With a long history of self-sufficiency and innovation, cities like Winslow are primed to lead the way to a green economy,” stated Hobbs.
Once both phases are fully operational next year, AES’ Chevelon Butte will be the state’s largest utility-scale wind project, generating 454 MW – enough clean electricity to power 110,000 Arizona homes. The project will feature 105 turbines located approximately 20 miles south of Winslow. Features include an innovative radar-activated turbine lighting system to preserve Northern Arizona’s dark sky environment. Phase 1 of commercial operation began in 2023 and Phase 2 of commercial operation is set to commence in the summer of 2024.
AES Western Wind Development Senior Director Terrance Unrein stated, “This is the first wind farm built in Arizona that’s servicing Arizona load in nearly a decade. The three main drivers for this project were location to existing infrastructure at the Cholla Power Plant, large intact willing landowners, and the third is wind resource.”
Unrein stated that AES has been able to make this project work economically by building some of the largest and tallest wind turbines in the United States at approximately 650-feet at tip height. “This site in particular has a high wind shear, which means the wind speed increases as you get taller so to make this project work, we built some of the largest and tallest wind turbines in the United States to harness that special resource that’s taller than most areas.”
This project will provide contracted steady revenue for decades, with millions of dollars in property taxes to be added to county coffers and providing induced spending in the community without the utilization of the city’s police force, water, sewer or other services. “We’ll be a tucked away quiet neighbor,” Unrein added.
The lifespan for the wind turbines is 30 years. At the end of the useful life an analysis will be done to determine if the project should continue and implement newer technology. At the project’s decommissioning, all of the land lease permits and agreements with the county have very strict decommissioning and site restoration requirements, with companies such as AES required to provide financial securities in the event the company should go bankrupt to ensure the land is protected and restored to its natural state.
The financial impact of this project will include $18 million in local property tax payments to Coconino and Navajo counties over the life of the project, benefitting local school districts, community colleges, fire districts and libraries. The social impact donations to local communities include $2,000 to the Winslow Public Library and $30,000 to Willow Bend Education Center in Flagstaff for STEM education.
AES’ Chevelon Butte wind farm will deliver clean power to Arizona Public Service (APS) and its customers over a 20-year Power Purchase Agreement.
Gov. Hobbs noted, “As I travel to every corner of the state, I see what so many people have ignored. The potential for growth and prosperity outside of Phoenix and Tucson is immense and as of now, largely untapped. Communities like this one have traditionally been left behind without a seat at the table and put in positions where decisions are made for you instead of with you; and that’s not the way to move our state forward. And I have every intention of changing that as we work together to build an Arizona for everyone.” Hobbs added that she knows that there are some who think that the expanding renewable energy program is at odds with industries such as agriculture that helped build Arizona but projects such as the Chevelon Butte wind farm show that is not the case, as this project co-exists with the largest working cattle ranch in Arizona.
Others who spoke at the ribbon cutting ceremony held at La Posada were Gov. Hobbs, Arizona Corporation Commission Chairman Jim O’Connor, AES EVP, COO and President of Renewables Bernerd Da Santos, Arizona Public Service Vice President of Resource Management Justin Joiner and Winslow Chamber of Commerce President Berry Larson.
Following the ceremony, the Governor and those in attendance participated in a guided bus tour of the wind farm.
AES has been developing, building and operating clean energy projects in Arizona since 2010. The AES Corporation (NYSE:AES) is a Fortune 500 global energy company.
