Board approves Southline Transmission franchise; developer projects $8M pre-commercial, $37M post-commercial tax revenue estimate

The Cochise County Board of Supervisors voted on Feb. 24 to adopt Resolution 26-03, granting an electric-services franchise to Southline Transmission LLC to build transmission lines across the county.

County staff said Arizona law permits a county board to grant a franchise allowing private entities to use county rights of way for transmission. Christina Tamayo, a project developer who identified herself as affiliated with Grid United and described the project as co-developed with Black Forest Partners, told the board Southline is an independent transmission developer that "builds the roads" for other companies to use.

Tamayo presented an internal estimate of potential property-tax revenue tied to the project: about $8,000,000 prior to commercial operation and roughly $37,000,000 in tax revenue over the estimated 40-year useful life once the line is energized, assuming a commercial on-line date in 2028. She noted many of those dollars would flow to local taxing districts including public schools, library and fire districts.

A member of the public asked whether Southline was linked with a company called Grid United or a state trust land auction; Tamayo confirmed Grid United is a co-developer and said there was no current auction in Arizona involving Southline Transmission.

After closing the public hearing, the board adopted the resolution; the clerk recorded the motion carrying 2-0 with one member not voting.

The franchise grants the company a right to occupy county rights of way subject to the terms of the resolution and related franchise agreement; the motion record did not include a franchise fee. County staff said the franchise conforms with applicable Arizona statute and noted the applicant is not a retail electricity seller and therefore customers would not see a franchise fee passed through by retail providers.