The area however is sparsely populated. "The bottom line is, I don't think it will have that much effect," says Russel Smith of the Texas Renewable Energy Industries Association. "It's a small proportion of the demand." The one wind project in the region, an 80 MW plant about 40 miles east of Amarillo by Cielo Wind Power, is expected to go-ahead. Output will be sold under a 15 year power purchase agreement to Southwestern Public Service Company, a subsidiary of Xcel Energy of Minneapolis.
Even so, the legislation is a sharp reminder that the RPS can be changed. California's high-profile and bungled electricity deregulation has stirred up fears about electricity deregulation and high consumer prices throughout the US. Regulators are wary of any law that might further impact electricity ratepayers.