The Fisher County Commissioners reviewed a proposal from Indigo LLC, a solar company anticipating operations in the county in 2025, requesting a tax abatement on the $226 million solar project, but commissioners were hesitant to accept the proposal until hearing results of a more thorough review from legal counsel.
Early last month the court heard from Mike Fry with KE Andrews, a property tax consultant firm out of Rockwall, who provided some basic insight into the anticipated solar project proposed in southeastern Fisher County. The project founder and initial developer, Innovative Solar Solutions (ISS), began looking to offload around 690 MW spread across four projects in Texas in early 2022.
With each proposed project having designation numbers associated with Indigo Solar, IS245 (the Fisher County solar farm) is one of several projects in the region. Other projects of varying size and capacity remain for acquisition in Jones, Castro, Swisher, Coleman, and Haskell counties.
In early 2022, energy investment publications reported the Fisher and larger Jones County projects anticipated above-average returns due to the rise of energy prices resulting from power shortages in Texas. Global Energy World advised the projects to be a solid investment for those seeking a quick exit at cashon- delivery instead of long-term ownership.
GGS Energy out of San Antonio has since purchased the project, writing in the tax abatement proposal: “GGS Energy is eager to continue their development of wind and solar plants across Texas, and their investment in Fisher County. Their team is dedicated to making renewable energy affordable and abundant, as well as being responsible corporate citizens in the communities they choose to invest in.”
Fry informed the court how the company worked with Trent ISD to beat the deadline before the Chapter 313 bill sunset last year but was unsuccessful. However, Fry said the district still stands to benefit from the project moving forward. Commissioners pointed out that the project would not benefit either school district in Fisher County.
Fry explained the project is essentially a 150 MW (ISS company data states 125 MW nameplate capacity) with a 60 MW battery energy storage system potentially built later. If interconnection agreements go well — which company data states are in place with ERCOT — construction could begin as early as the first quarter of 2024.
If construction begins in early 2024, Fry said the project anticipates completion and commercial operations starting by the summer of 2025. The company expects to create around 130 construction jobs during the building phase but will be reduced to only one to possibly three permanent jobs longterm. The agreement proposed only guarantees one permanent employee.
“Right now, we’re saying one permanent fulltime, but more than likely there will be two or three, I’d imagine,” said Fry.
As solar farms depreciate rapidly in taxable value, the company’s application requests a 100% tax abatement, which would be coupled with an annual $271,000 payment in lieu of taxes (PILOT) for the 10-year term. The proposal equates roughly a 70% tax abatement after the PILOTs are paid.
“Obviously, we turn in the application, and we’re asking for 70 [referencing the 70% abatement], but we understand that’s negotiable,” said Fry. “We just wanted to make it where the county knows what they are getting as a winner in the deal, plus the industry side. That’s the most important thing, is that both sides are happy.”
The project has an expected value of $45.2 million after the initial 10-year period but is anticipated to continue to be in operation for an additional 20 years afterward. If approved, the agreement would likely bring in roughly $2.7 million to Fisher County over the first 10 years and is estimated to generate roughly $293,000 in property taxes annually depending on tax valuations after the abatement expires in 2035.
“So, what you’re asking for today is a tax abatement?” asked Commissioner Gordon during the August 14 meeting. While Fry answered in the affirmative, Fisher County Attorney Michael Hall recommended the court take some time for further inquiry and to seek specialized advisement before taking action.
Hall said he would like to reach out to Rod Wetzel for assistance in the matter. Rod Wetsel with Wetsel, Allen & Lederle out of Sweetwater has been certified by the Texas Board of Legal Specialization as an oil & gas and mineral law specialist since 1989.
As a Texas Tech professor in energy law, Hall said Wetzel practically wrote the book on renewable energy. In fact, Wetsel co-authored the first treatise on Texas Wind Law in 2011, a book that continues to be revised annually. In 2015, the book was expanded to encompass a national approach to wind energy.
Commissioners agreed the abatement proposal should be reviewed by legal counsel before voting on that decision but were at contention about who should review the paperwork. Fisher County Commissioner Preston Martin protested having Hall represent the county in any way, stating he has misled the county on other contracts in the past. Tensions and accusations of distrust between Martin and Hall have been well documented in prior news articles.
Martin reminded the court that in December, the court agreed to have Issac Castro from Hamlin review all future energy contracts. He also pointed out that the company agreed to cover those legal costs.
Commissioner Micah Evans also noted that while there were provisions to cover some legal costs, the agreement was clear to only cover reasonable fees, and he was not convinced that hiring two outside attorneys would meet that requirement.
With the exception of Martin, Evans’ fellow commissioners agreed, ultimately approving Hall to move forward with discussions and seeking the advice and potential representation of Wetsel in a 3- 1 majority vote. Commissioners could have additional