Citing a weakened economy and the prospect of new regulations for renewable energy, We Energies of Milwaukee has withdrawn its request to spend up to $69 million to coordinate construction of wind power projects to meet a state mandate. ..."In the months since the filing, economic conditions in the United States and Wisconsin have changed dramatically, and the potential for additional state legislation and for federal renewable legislation is coming into focus," the utility says in a letter to the PSC.

Congress, meanwhile, is trying to restart wind and solar development. The industries insist that the best way forward is to make the tax credit "refundable," so that the money from the tax credit would be available directly, and investors would not need big profits to invest.

The legislation would extend for three years a tax credit that subsidizes the power from new wind farms. The tax credit applies for a project's first 10 years. However, future projects may not be eligible for the subsidy unless the credit is renewed beyond this year. Even that tax incentive hasn't been enough to get some projects going during the recent economic downturn, because potential investors don't owe enough in taxes to benefit from a credit, industry officials say.

House lawmakers are proposing to give solar and wind energy producers billions in government grants instead of tax credits to build renewable energy capacity, potentially transforming the way renewable energy projects have been financed for years. The new grant program, which will be administered by the Department of Energy, is part of House economic stimulus legislation announced Thursday.

The green energy sector has a lot riding on 2009. Policymakers from Washington to Beijing have pledged billions of dollars in "cleantech" investment to jump-start the depressed global economy and create millions of new low-carbon jobs. ...As with the solar industry, wind power has been hit by a sudden slowdown in private sector investment as credit has dried up and the price of oil has fallen from its mid-2008 high. The industry hopes public spending will help fill the gap until the global economy gets back on its feet.

Federal tax credits that Congress passed only three months ago to increase investment in renewable energy have lost much of their effectiveness amid a global economic downturn and should be reworked, industry officials say. ...Because most companies and individuals expect far lower tax liabilities than they did months ago, the incentive to invest in alternative-energy technology because of tax credits has been muted, industry trade associations say.

U.S. Rep. Bruce Braley, D-Iowa, said today that he is introduced a bill to extend the wind energy production tax credit until 2017. The current credit, which was extended last year, is set to expire at the end of 2009. Braley told reporters Thursday a long-term extension will create some certainty in the market and spur greater development.

Oregon taxpayers are shelling out tens of millions of dollars to subsidize green energy projects, making the state a magnet for solar and wind companies. But an investigation by The Oregonian shows that the money also is going to risky ventures with questionable environmental benefits and to prosperous companies that need no incentives but are cashing in anyway. ..."It's gotten out of hand," says Chuck Sheketoff, director of the Oregon Center for Public Policy, which studies the impact of state tax policies on low-income residents. "It's being scammed. It's not serving its purpose."

Xcel Energy oversold wind energy credits as far back as 2000 for a program in which customers voluntarily pay a premium for wind-generated power, according to an investigation by Colorado Public Utilities Commission staff. A settlement is looming related to Xcel's excess collections for the Windsource program from 2005 to 2007, which was disclosed earlier this week.

Xcel Energy overcollected more than $1.5 million from customers who voluntarily pay a premium for wind- generated electricity, according to the Colorado Public Utilities Commission staff. From 2005 to 2007, the state's largest utility sold credits for more green power than it generated at the wind farms in its Windsource program. Xcel knew it would have a production shortfall in the program but "failed to act".

Young County commissioners formally approved a tax abatement agreement Monday with British Petroleum ...After months of negotiation, the final agreement guarantees between $83,333 and $350,000 a year in lieu of property taxes. The proposal also guarantees that if the farm is built, Young County will receive a minimum of 50 megawatts. If more turbines are placed in the county, the money paid will rise incrementally.

Hundreds of thousands of consumers are being misled by the green tariffs offered by power companies to boost renewable energy, says a report due out this week. The tariffs do virtually nothing to promote new renewable supplies and can be costly and confusing, according to the Carbon Accountability Programme, set up by environmentalists in Edinburgh. It accuses the six leading power companies of using "greenwash" to make their products seem more attractive.

Umatilla and Morrow county residents will get their first look at possible property tax exemptions for wind farms at public meetings Friday. The property tax exemptions are called strategic investment programs, or SIP, and provide an incentive for large capital investments - in this case the Echo wind farm. ...The proposed SIP provides the advantage of a flat tax rate for the companies involved with the wind farm and a stable 15-year funding base for the two counties.

While other Portland greenies and politicians are going gaga for wind power, the former Irvington Elementary School teacher argues the state is throwing away tax breaks to lure windmills that provide few permanent jobs and would locate here anyway. "This is an astounding trick that's being played on taxpayers," said Wiser, volunteer leader of the group Tax Fairness Oregon.

The alternative-energy sector has run smack into a credit crisis, probably a recession as well, and almost all industry experts think the fourth quarter is going to be worse. ...The reality today is that it's more expensive to produce renewable energy than it is from traditional resources, and consumers suddenly strapped for cash will start moving away, said Jerry Taylor, a senior fellow at Cato Institute. Even proponents are slowing the move toward alternative energy, at least for the moment.

The GAO found that the cap-and-trade scheme sucessfuly created a working carbon market, "but its effects on emissions, the European economy, and technology investment are less certain." The report noted that the use of carbon offsets can "undermine the system's integrity" because there is no way to ensure that the projects invested in would not have been built anyway, or that they will last long enough to reduce the amount of emissions that they are expected to reduce. Carbon offsets, the report concluded "involve fundamental tradeoffs and may not be a reliable long-term approach to climate change mitigation."

County commissioners paved the way Monday toward granting a tax abatement to wind power giant Duke Energy. ..."I didn't feel like it's a benefit to the citizens of Ector County," he said. Simmons said wind turbines deteriorate quickly, and chances are they won't be worth much once a 10-year abatement is up, leaving little to nothing to collect property tax off of. He also said there's no guarantee permanent jobs would be created in Ector County since the majority of the Notrees Windpower Project is located in Winkler County.

Separately, Otter Tail seeks to charge customers who will get wind-generated power from its portion of the new Ashtabula Wind Farm a separate fee above the usual rates. ...[the]proposed increase is known as a "renewable resource cost recovery rider 2009." Under state law, utilities are allowed to charge extra for the cost of generating electricity through alternative forms such as wind farms.

Otter Tail Power Co. wants to increase a special charge to electric customers that helps pay for its wind energy projects. ...Otter Tail is asking North Dakota's Public Service Commission to increase the charge, starting Jan. 1. It would raise the payment from $1.45 to $3.83 monthly.