General Services Administration Tribal PPA
"Our partnership in MG2 has been a mutually beneficial venture from the beginning, and by securing this PPA with the GSA, our partnership with the Mesa Grande has an exciting future." - Geronimo Energy President, Blake Nixon
In October 2014, the General Services Administration (GSA) made history with the largest Federal wind energy purchase from a single source. In an effort to support the Obama Administration's 2020, 20 percent renewable energy goal, the landmark deal between the GSA and MG2 Tribal Energy (a joint venture between the Mesa Grande Band of Mission Indians and the commercial wind developer Geronimo energy) also marks the first ever PPA signed by a tribal entity with the federal government.
Following a competitive public request for proposal (RFP) process, GSA awarded MG2 a 10-year PPA for all the output of the planned 140 MW wind farm. Located in northwestern Illinois, the wind farm will produce around 500,000 MWh of clean electricity and reduce greenhouse gas emission 500,000 metric tons each year. “This contract represents an important step forward in the history of the Mesa Grande Band because it is entirely consistent with our historic concern for Mother Earth and the continued availability of clean water, land and air for future generations. Few other economic development opportunities enable us to remain so true to our cultural and spiritual values, " said MG2 President and Chairman of the Mesa Grande, Mark Romero. In addition to its environmental benefits, it has plenty of positive economic impacts as well.
“With very limited opportunities to generate revenue on the reservation due to our remote location, the Mesa Grande Band has sought out multiple economic development strategies,” said Mark Romero. As a non-gaming tribe, the Mesa Grande Tribe was also looking for economic opportunities aside from casino, and this deal will bring the local area an estimated $47 million of direct economic impact over 20 years. This includes $21 million dollars in tax revenue, $16 million in landowner payments, and $560,000 in charitable gifts to the local community.
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