Southline Transmission Project Selected for Second Round of Transmission Facilitation Program

U.S. Department of Energy’s Continued Support Highlights Southline’s Progress and Vital Role in Desert Southwest Energy Needs

Today, the U.S. Department of Energy (DOE) reaffirmed its confidence in the Southline Transmission Project by selecting Phase 2 of the project as a capacity contract recipient through the second round of the Transmission Facilitation Program. Co-developed by Black Forest Partners and Grid United, Southline is a 278-mile, high voltage transmission line that will connect the electrical transmission systems of the El Paso and Tucson metropolitan areas. Hunt Transmission Services and Black Forest Partners are founding investors of Southline.

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Southline Transmission Project, Phase 1 and 2 (Photo: Business Wire)

The Transmission Facilitation Program, created through the Infrastructure Investment and Jobs Act, plays a key role in facilitating large-scale transmission projects. Under this capacity contract, the DOE serves as an anchor tenant by purchasing transmission capacity, encouraging other customers to commit to capacity on the line. Once fully subscribed by other customers, the DOE’s involvement ends.

Southline Phase 1 was selected as a Transmission Facilitation Program recipient in 2023. The progress that the project has made over the past year exemplifies the catalytic effect of this model through key milestones, including 100% voluntary private land acquisition and substantial commercial progress with transmission service customers. Construction of Phase 1, which will connect outside of Tucson, Arizona, to Lordsburg, New Mexico, is expected to begin in the latter half of 2025. Once completed, it will deliver approximately 1,000 MW of renewable energy from southwest New Mexico to customers in southern Arizona. Southline Phase 2 construction will follow the first phase from the Lordsburg area across Southern New Mexico to the El Paso area.

Southline Phase 2 will provide vital transmission infrastructure to utility customers in southern New Mexico and to the El Paso electric system, as well as renewable energy generators seeking new pathways to bring clean power to market. The line will facilitate the transport of solar and wind energy, further enhancing grid resilience and reliability while contributing to the region's economic growth.

“We are grateful for the Department of Energy’s continued confidence in Southline and for its recognition of the critical role this infrastructure will serve in the region for a more robust energy grid,” said Isaac Phillips, Director of Development for Southline. “The commercial and development progress for Phase 1 of Southline underscores the effectiveness of the Transmission Facilitation Program, and we are excited to move forward with Phase 2 to expand capacity and enable greater renewable energy integration in the Desert Southwest.”

Bill Kipp, co-founder of Southline, whose roots trace back to Lordsburg, New Mexico, a community Phase 2 will call home, expressed his deep connection to the project: “As someone who grew up in Lordsburg, Black Forest Partners is particularly proud to lead the development of Southline. This project is a testament to what can be achieved when public and private sectors collaborate to address the challenges of modernizing our energy grid. We’re honored to receive this continued confidence from the DOE, and we look forward to delivering long-term clean energy benefits to the region.”

The Southline project team continues to work hard to ensure that host communities see meaningful benefits from the project through donations and sponsorships of local programs and events like the Deming Duck Race, the Lordsburg Tejano Music Fiesta, and the Benson Lantern Festival. Under the Transmission Facilitation Program awards for Southline Phase 1 and Phase 2, Southline has committed to investing at least $6 million directly into host communities. Through the DOE’s Transmission Siting Economic Development Program, the Southline team helped communities in New Mexico and Arizona secure over $12 million in local investment grants. These grants will help fund the Willcox Open Space and Riparian Area Conservation Project and the Lordsburg Revitalization Project.

About Grid United: Grid United is an independent transmission company aiming to develop next-generation energy infrastructure to create a more resilient and efficient electric system to the benefit of all consumers. For more information, visit www.gridunited.com.

About Black Forest Partners: Black Forest originated Southline and serves as Southline’s managing member. The Black Forest team has thirty years of investment and development expertise, ties to the local region, and a deep commitment to leveraging existing assets to advance infrastructure that maximizes benefits and minimizes impacts.

About Hunt Transmission Services: Based in Dallas, Texas, Hunt Transmission Services is a subsidiary of Hunt Energy and is a founding investor in Southline Transmission Project. It is part of a larger privately-owned group of companies managed by the Ray L. Hunt family that engages in oil and gas exploration, refining, LNG, power infrastructure, and energy technologies.

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