Chamisa CAES at Tulia a New Mexico company is planning to build a compressed air energy storage facility in the Panhandle of Texas to take advantage of the wide price swings in the Texas wholesale power market and the ancillary services market. Chamisa of Santa Fe plans to build a 270-megawatt facility that uses electricity to compress air in underground salt formations near Tulia, Texas. The plant can then use the compressed air, along with natural gas, to turn a turbine to make electricity. Part of the idea is to buy electricity when it’s cheap, like in the middle of the night, to compress the air. Then the company can generate electricity when wholesale prices rise, like in the middle of a hot afternoon. Read more about Chamisa’s project.