Category:
Impact on Economy and Massachusetts
While Massachusetts recipients of federal stimulus money collectively report 12,374 jobs saved or created, a Globe review shows that number is wildly exaggerated. Organizations that received stimulus money miscounted jobs, filed erroneous figures, or claimed jobs for work that has not yet started.
The Globe's finding is based on the federal government's just-released accounts of stimulus spending at the end of October. ...But in interviews with recipients, the Globe found that several openly acknowledged creating far fewer jobs than they have been credited for.
To municipal wind power advocates, net metering is the Holy Grail. ...Net metering provisions virtually double what municipalities are currently paid for the power they generate through renewable energy. It also allowed the towns to get credits at the wholesale rate for their power ...But some Cape municipal and county officials are worried that wind turbines that are still in the planning stages will not get the benefits of net metering because of a cap the state Legislature imposed on the total amount of power that could be generated under the program.
By the time federal regulators stopped accepting public comments about the proposed Nantucket Sound wind farm on Monday, two of the letters had already raised some eyebrows among the project's critics. That's because the two letters were signed by the same person, state Division of Marine Fisheries director Paul Diodati, but they struck noticeably different tones. ...Diodati's first letter [dated Feb. 20] spells out the loss of access that fishermen could face as well as concerns about rescue crews reaching a troubled boat in the area.
But the second letter, dated March 7, tones down the rhetoric considerably, reducing the section that lists the potential impacts to fisheries to just a few sentences. The section also mentions a couple of possible benefits, such as certain species becoming attracted to the newly built tower foundations.
ATTLEBORO - It may turn out to be pie in the sky, but Mayor Kevin Dumas is looking at wind power to help cut one of the city's biggest electric bills.
With the departments of water and wastewater spending $1 million a year for electricity to run the 24-hour, 365-day operations, he's eager to consider the use of wind turbines to help reduce the hefty costs.
A portion of the wind energy generated from newly installed wind turbines located in PEI was wheeled through PEI and New Brunswick and sold to the New England Power Pool (NEPOOL) via the international interconnection node in Keswick, N.B. The renewable energy certificates (RECs) that were generated from this transmission were sold separately to independent buyers located in the NEPOOL.
HANCOCK - Building inspector William Palmer Jr. said Friday he will accommodate the developmental delays of the Berkshire Wind Project, but only to a point.
Palmer said he has issued several permits and extensions to Distributed Generation Systems Inc. since 2000 for 10 planned wind turbines on Brodie Mountain. In that time, contractors have dug five turbine foundations, he said.
The latest six-month extension technically expires on June 15, and the project has been halted by a legal suit from the nearby Snowy Owl resort, whose owner, Silverleaf Resorts Inc. claims that construction cut trees from a portion of its land and that some of the turbines would mar the "viewscape" of a planned time share development.
A Science Unit report on the controversy over a proposed wind farm to be built off the coast of Massachusetts in the middle of Nantucket Sound.
The Cape Cod Commission (CCC) has asserted that the Cape Wind energy project qualifies as a Development of Regional Impact (DRI) under Section 12(i) and 13(b) of the Cape Cod Commission Act. The CCC staff report can be accessed from this page.
The Beacon Hill Institute at Suffolk University has studied the Cape Wind proposal in considerable detail, and offers
the following comments on the Draft Environmental Impact Statement (DEIS) Reference file no. NAE-2004-338-
1. A systematic cost-benefit analysis – missing from the DEIS – shows that, with 90% confidence, the costs of the project outweigh the benefits by between $83 million and $333 million, with a mean measure of
net cost of $209 million (equivalent to 2.0 cents/kWh produced). This breaks down as: a. Cost of 9.06 cents/kWh (close to the DEIS estimate of 9.00 cents)
b. Benefit of 7.06 cents/kWh, of which the savings are: fuel (4.95), capital and operating costs, (0.98),
improvements in public health (1.02) and greater energy independence (0.10).
The project is of interest to a private developer only because of subsidies of 4.04 cents/kWh, via
accelerated depreciation allowances, Massachusetts “green credits,” and a possible Federal Production Tax
Credit.
2. The DEIS conclusion of “no adverse impacts to tourism and recreation” is not supported by the data.
a. The only tourism study considered in the DEIS, from Scotland, used a biased sample and does not report
the most relevant results (i.e. how many would be deterred, or attracted, by the windmills).
b. A Beacon Hill Institute survey of 497 randomly-selected tourists, undertaken in the relevant Cape Cod
towns in summer of 2003, found that 5% would visit the Cape less, and 1% would visit more if the
windmills were built. Using spending information, and an estimate of the number attracted to the Cape,
the BHI study found a net loss in spending on the Cape of at least $57 million annually.
3. The DEIS conclusion that the project would not adversely affect property values is based on a flawed
study, ignores other research, and is untenable.
a. The DEIS discussion relies primarily on a study by the Renewable Energy Policy Project (whose goal is to
“accelerate the use of renewable energy”) in 2003. Its conclusion that wind farms elsewhere in the United
States did not harm property values relies on the use of an inappropriate counterfactual, and is largely
based on much smaller projects.
b. Even if wind farms are associated with higher property values, this is likely attributable to increased tax
payments and royalties to local communities and owners – which makes them not comparable to the Cape
Wind case (no royalties, minor local tax payments).
4. The DEIS estimates of the value of health improvements are greatly exaggerated (at $53 million
annually). Our own estimates show health improvements of $7 million, and even this may be overstated.
a. The DEIS assumes that the Cape Wind project would offset the dirtiest power plants in Massachusetts.
This is incorrect, and it would be more appropriate to use the marginal emissions numbers from ISO-New
England, which show avoided emissions that are one fifth as high for NOx and one seventh as high for
SO2.
b. The DEIS uses outdated emissions data (from 2000 rather than 2002).
c. Even the $7 million may overstate the health benefits. BHI assumed that all of the output of the Cape
Wind project would offset fossil fuel generation and its associated air pollution. However, it has been
argued, convincingly, that the caps imposed by law and regulation on SO2 emissions would continue to be
binding, and so the wind farm output would not lead to a reduction in SO2 emissions overall.
The Beacon Hill Institute at Suffolk University has studied the Cape Wind proposal in considerable detail, and offers
the following comments on the Draft Environmental Impact Statement (DEIS) Reference file no. NAE-2004-338-1:
1. A systematic cost-benefit analysis – missing from the DEIS – shows that, with 90% confidence, the costs
of the project outweigh the benefits by between $83 million and $333 million, with a mean measure of
net cost of $209 million (equivalent to 2.0 cents/kWh produced).
2. The DEIS conclusion of “no adverse impacts to tourism and recreation” is not supported by the data.
3. The DEIS conclusion that the project would not adversely affect property values is based on a flawed
study, ignores other research, and is untenable.
4. The DEIS estimates of the value of health improvements are greatly exaggerated (at $53 million
annually). Our own estimates show health improvements of $7 million, and even this may be overstated.
Written by Douglas Giuffre, Jonathan Haughton, David Tuerck and John Barrett, this report analyses in economic terms the costs and benefits of a proposed 130 turbine wind plant in Nantucket Sound. It concludes that the economic costs substantially exceed the associated economic gains. This is a follow-up study to one published by Beacon Hill in October 2003 entitled "Blowing in the Wind: Offshore Wind and the Cape Cod Economy"
Researched and written by Eleanor Tillinghast of Green Berkshires Inc. this is a comprehensive study of the probable impact of industrial wind plants on the rural character, quality-of-life and economy of the Berkshires in western Massachusetts. Specific issues addressed include visual aesthetics, tourism, property values, public roads and public safety.
Over the past year, we have read several op-eds and letters to the editor debating the true cost of Cape Wind. After eight years of controversy, the Cape Wind developer has failed to prove that his costly private venture won't raise our electric bills. The Alliance has asked Gov. Deval Patrick to order an independent cost analysis to get Massachusetts ratepayers some well-deserved answers to the looming Cape Wind cost question.
In the absence of a formal cost analysis, we can look to Europe, California, and perhaps most importantly, Texas, for lessons learned.
Performing a detailed feasibility study and siting analysis of wind turbine placement atop our Berkshire hills is dependent upon corporate proprietary information which could be purposely withheld (in restraint of trade) for fear that competition could gain an unfair advantage if it were divulged. Such a practice stifles competition from firms performing similar services ...but is particularly injurious to the industry which depends the most on the wise use of our land-based natural resources.
The long-awaited Draft Environmental Impact Statement (DEIS) on the Cape Wind application to place 130 wind turbines in the waters of Nantucket Sound is finally out. ...Although the MMS DEIS seems to clear the way for Cape Wind to build its Nantucket Sound wind farm, CapeCodToday.com will be printing remarks made by experts in the wind-energy/finance fields that identify many serious flaws in the DEIS and in the methods and information used to paint a healthy picture of the Cape Wind project. MMS's own peer review raises serious questions about how MMS arrived at the conclusions their report contains.
Regulators recently dealt a serious blow to a proposed offshore wind farm in Delaware, criticizing the plan as too financially risky to consumers. ...what's significant about the news from Delaware is that the Public Service Commission used a team of independent consultants to determine the project's costs and their effect on consumers.
That's not the case with the Cape Wind project. So far, the developer has refused to provide financial data that would help the public consider the definition of economic viability. As a result, how can the public fully consider the project if it does not have the appropriate economic information on which to judge it? The point at which the project becomes economically viable is critical to the public's consideration of the project as this private venture seeks to use public lands. ..."After six years of 'exhaustive' review of Cape Wind, we are still getting stonewalled," said Mark Forest, Delahunt's chief of staff.
The ski industry is the "lifeblood" of northern New England precisely because it draws visitors eager to appreciate the rural splendor - and spend their money. While Cape Wind supporters often make hasty, anecdotal references to wind farm-related tourism in obscure European enclaves, the Cape's fickle, tourist-based economy relies on loyal return visitors - not curious one-timers. Just a small dip in tourist-related spending would result in thousands of lost jobs and millions of lost dollars.
Tiny turbines on short towers may make people feel good about generating "green energy," but they make no sense economically. The fact that the real cost may be hidden or spread out over millions of payers does not change the basic economics.
As a tourist who visits the area, I notice what is transparent to most locals, and for me the skyline of Fairhaven is priceless. If the citizens of Fairhaven allow the wind power project to be built at the current proposed location, I believe you will be making a terrible mistake. The town may gain some money in taxes and offset some electrical energy costs, but it will not offset the loss in green space and, more importantly, the beauty of Fairhaven's historic charm.
In the Williams/Whitcomb world of tabloid journalism, there is no room for thoughtful discussion, for weighing costs against benefits, for understanding that self-interest is at work on both sides of the issue or for any kind of honest discussion. Such thoughts would get in the way of the facile thinking and cynical blather that fills their book and that is now commonplace on TV, radio and the Internet. Do you find yourself bored now that Don Imus and Rosie O'Donnell are off the air? Does the Internet no longer meet your need for trash talk? Then read this book. You won't learn anything substantive from it, but it'll be great entertainment.
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