PHOENIX (AP) -- Two government agencies approved land agreements that have brought Arizona's first wind-energy power plant a step closer to becoming a reality.

The first phase of the proposed Dry Lake Wind Project northwest of Snowflake is scheduled to open by 2010, with about 30 wind turbines generating 63 megawatts of electricity when the wind blows, enough for nearly 16,000 homes.

A second phase could bring an additional 200 or more turbines for a maximum capacity of 314 megawatts, which would provide enough electricity for 78,500 homes when the wind blows.

The Bureau of Land Management signed a right-of-way agreement and other documents for the wind farm, and the Arizona State Land Department signed a permit for the portion of the project that will use its rural property.

The BLM will earn $36,966 in leases on the project next year and should get $87,255 a year after that if the project develops as proposed.

State Land has a different deal tied to the amount of electricity generated at the plant, and could earn $4 million during the 50-year agreement, Commissioner Mark Winkleman said.

The developer, Iberdrola Renewables, also has a private agreement with the Rocking Chair Ranch to use some of its land. The ranch runs cattle on the public and private land in the area, but cattle operations won't be affected by the development, owner Bill Elkins said.

Salt River Project, a Phoenix-area utility, has an agreement with Iberdrola to buy all the electricity from the wind farm.

The project is a "totally positive approach to meeting our energy needs in the U.S.," said Stephen Allred, an assistant secretary for the U.S. Department of the Interior.

---

Information from: The Arizona Republic, http://www.azcentral.com

© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.