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Wind is always available and it doesn't pollute the planet. But as wonderful as it sounds, using the resource for energy could come with a hefty price tag. ...But there's a big problem. The Texas Public Utility Commission [PUC] hasn't approved a way to funnel all the power from the wind farms in West Texas and eventually the panhandle, into the Dallas/Fort Worth area.
Ross points out, "The only impediment we have right now is the construction of transmission lines. We've got to construct the wires to move the power back to Dallas/Fort Worth." According to the PUC, that could cost at least $1 million per mile to get the power into the local area.
Also filed under [
Texas]
Offshore wind pact OK'd for Delaware; $800 million deal leaves room for more investors
June 24, 2008 by Aaron Nathans in The News Journal
June 24, 2008 by Aaron Nathans in The News Journal
Delmarva Power signed a landmark offshore wind power deal with Bluewater Wind on Monday, agreeing to buy enough power to light 50,000 homes in Delaware for the next 25 years.
The long-awaited, $800 million deal could make Delaware the first state in the nation to build a wind farm off its shores. An array of as many as 70 towering windmills would rise in a tract east of Rehoboth Beach by 2012. ...Both parties agreed the contract will cost average residential customers about $5 a month more -- over the 25 years -- than they would have paid for electricity without offshore wind power. With volatile fossil fuel prices, no one can predict how much additional cost -- or savings -- customers may see over the life of the contract.
Also filed under [
Zoning/Planning|
Delaware]
County commissioners unveiled a draft agreement Thursday for a tax-increment financing district that could bring the county up to $4 million over 20 years to use for economic development in unorganized territories. ...But Carrabassett Valley Town Manager Dave Cota said the draft agreement would shift more of the county tax burden to organized towns and let the company get away with not paying its fair share of taxes.
Mitchell said the purpose was to reach a balanced agreement that would benefit all of the county directly and indirectly.
The TIF would capture 75 percent of the new tax revenue for the first 10 years and 50 percent for the latter 10, with the county keeping 40 percent and TransCanada getting 60 percent. The remaining tax revenue gained would go into the state's unorganized territory fund.
Also filed under [
Maine]
Two area wind energy opponents filed a lawsuit Monday against the Taylor County Commissioners Court for granting what the plaintiffs say are illegal tax abatements to wind farms developed within the county.
According to the lawsuit, wind energy equipment is not eligible for tax abatements under the state tax code.
In 2004 and 2006, Taylor County commissioners granted five tax abatements potentially worth $5 million to $10 million to three companies that have built farms of wind turbines in rural areas of the county.
"That's my money the county is giving away illegally. We're asking the court to rectify this," said Dale Rankin, one of two plaintiffs in the lawsuit.
Also filed under [
Texas]
The reason solar, wind, geothermal and power conservation stocks crashed largely comes down to fears of recession and to politics - as opposed to a major bubble across the green industry.
While there are exceptions like waste-to-energy, most alternative energies depend on federal tax credits. The production tax credit (PTC) provides 19 cents per kilowatt hour for renewable energies, while the investment tax credit (ITC) offers a 30 percent rebate on the cost of a solar system.
But the tax credits "sunset" every year or two and must be renewed, creating a boom-and-bust cycle. ...And with the PTC and ITC going the way of the dodo on Dec. 31, fears of recession and a credit crunch have all conspired against green investors.
Also filed under [
USA]
Public Service of New Hampshire may not be happy with Regional Greenhouse Gas Initiative legislation that’s making its way through the Legislature, but the utility won’t actively oppose it, says Gary Long, president and chief operating officer.
In an interview with New Hampshire Business Review, Long said PSNH “didn’t oppose what went through the House,” even though the company had major concerns with the bill that would set a regional cap on carbon emissions and force utilities to bid in an open auction to obtain allowances to emit carbons.
Long said he was concerned that the free-market model proposed for the carbon allowances might drive up electric rates.
Also filed under [
New Hampshire]
Utilities agree on costs for wind power producers
February 22, 2008 by Joe Estrella in Idaho Statesman
February 22, 2008 by Joe Estrella in Idaho Statesman
Idaho's regulated utilities, wind developers and state regulators have finally reached consensus on how much it costs to add wind to utilities' transmission grids.
Three orders issued Tuesday by the Idaho Public Utilities Commission establish the amount of discounts utilities can assess against wind developers to account for the cost of integrating wind into their systems.
The orders also remove a cap on the size of small-power projects that can qualify for a rate published by the commission.
Also filed under [
Idaho]
Lawmakers in Jefferson County are about to get a crash course in wind farms and the revenue they generate.
Tomorrow, the Board of Legislators will meet with Syracuse attorney Kevin McAuliffe, who specializes in payment in lieu of taxes (PILOT) agreements relating to wind projects.
Because there are a number of wind farm proposals in the county, lawmakers are looking into ways PILOT programs can be structured.
In any PILOT deal with a wind farm developer, money is paid to the county, school districts and municipalities where the turbines are located.
Legislature Chairman Ken Blankenbush said he'd like to see a uniform PILOT deal - a one-size-fits-all package for every wind company.
Also filed under [
New York]
Wind energy industry picks up speed in Iowa
December 30, 2007 by William Ryberg in Des Moines Register
December 30, 2007 by William Ryberg in Des Moines Register
Wind energy is booming in Iowa, and backers say it's only the beginning. ...But the jobs could blow away, economists warn, just as other manufacturing jobs have disappeared because of competition and technological change. Other states want to attract manufacturers, too. Wind power depends on subsidies, and changes in government policies could dampen the enthusiasm for wind. ...John Solow, a University of Iowa economics professor, is cautiously optimistic about the future for wind generation and turbine manufacturing.
Future policy decisions and technological innovations could change that, he said. A breakthrough in clean-burning coal, for example, could reduce interest in wind energy and biofuels, he said.
County attorney tasked with negotiating contract for Fairfield wind project
December 14, 2007 by Rob Juteau in The Evening Times
December 14, 2007 by Rob Juteau in The Evening Times
“I’m not sure everyone knows what they are voting on,” Bono, District 11, said prior to the vote. ...information included guidelines for the contract negotiation, which include a proposal for a payment in lieu of taxes of $8,000 per megawatt, for a total of $640,000 on an 80 megawatt project. The information also said that the county would receive a one-time payment of $360,000 to $400,000 in its general fund for use on other projects such as the construction of a new county correctional facility.
“One of my main concerns is how can I justify an 85 percent tax break for this company and not for anyone else,” Bono said. “We want to attract businesses to Herkimer County, but we cannot give 85 percent tax breaks to everyone. We need to continue to work with the numbers.”
Also filed under [
New York]
Wind farms face obstacles; Despite high taxes, companies still pursuing wind energy in Illinois
December 14, 2007 by Matt Buedel in Journal Star
December 14, 2007 by Matt Buedel in Journal Star
If wind farm developers looked only at the bottom line, Illinois likely would be one of the last places they'd try to erect hundreds of wind harnessing turbines.
Property tax rates are among the highest in the region. The permitting process varies from county to county, and roughly half of the petitions put forth so far have resulted in litigation with opposition groups. The strength and steadiness of the breeze is good but better elsewhere. ..."There's a tremendous wind resource, a tremendous renewable energy standard. . . . It's kind of a perfect storm right now," Link said. "(Illinois) truly is going to be a leading state when it comes to wind energy capacity."
Westar is seeking the rate approval to recover $282 million for ownership of turbines at two proposed wind farms and for costs in purchasing energy from a third farm. The 300 megawatts of electricity would come from the Central Plains Wind Farm in Wichita County; Meridian Way Wind Farm in Cloud County and Flat Ridge Wind Farm in Barber County. ...Westar expects energy demand to continue growing among customers and while new wind energy can put off purchase of new "baseload" or constant power sources, for now, the utility expects it will need to build a new power plant between 2016 and 2018. ...Moore told commissioners Westar would walk away from the wind projects if they weren't allowed to earn at least a small profit from them.
Investment banks seek fees and returns from renewable energy sector
December 3, 2007 by Heidi Moore in Financial News
December 3, 2007 by Heidi Moore in Financial News
...global investment bank Lehman Brothers agreed to advise and finance the $700m Cape Wind project, the US’s first offshore wind farm located near Nantucket Island and a landmark cause for many environmentalists.
This March, Goldman Sachs sold its investment – redubbed Horizon Wind Energy – to Portugal’s largest utility, EDP, for more than $2.1bn, making a profit of $900m. But Lehman Brothers’ project, despite early state-level approvals, has been stuck in bureaucratic purgatory from which it is unlikely to emerge soon.
The problem: Nantucket’s millionaire residents oppose the wind farm, which they claim would ruin their ocean views.
The contrast between the outcome of the Zilkha investment and the Cape Wind project illustrates the unpredictability of the clean technology sector. “There is no doubt in my mind that renewable energy is like other tech start-ups, where some will succeed and many will not.”
Paterson said although alternative energies would undoubtedly become very important in years to come, there was "little clarity" in the sector at the moment. Many fundamental questions remain about how to best capture and transmit energy from natural sources, making it difficult to assess the potential effectiveness of new innovations.
However, Paterson said the biggest barrier was the fact that the sector is heavily regulated and influenced by government.
Much of the current interest in alternative energies is being driven by strong support from Europe, the UK and the Scottish Government.
"But from an investor's point of view, we have got to think about the long term," Paterson said. "What happens if the government changes, or priorities shift?"
NEW DEAL: Ottawa, Invenergy split difference on zone pact
November 28, 2007 by Charles Stanley in The Times
November 28, 2007 by Charles Stanley in The Times
The Ottawa City Council and Invenergy, developer of the Grand Ridge wind farm, have split the difference concerning the fee the city will receive as administrator of the enterprise zone being expanded for Invenergy's estimated $5.2 million benefit. ...The benefit to Invenergy would be an estimated $7.5 million exemption to state sales tax on project construction materials.
The new deal gives the city an estimated minimum of $375,000 more than proposed in an agreement placed on file last Wednesday.
Originally, Ottawa stood to benefit from a fee equivalent of up to 20 percent of the sales tax savings. But that was with the understanding the Ottawa Fire Department was to be the "first responder" to calls at wind farm construction sites -- which would mean ones in other fire agency jurisdictions. Under the revised agreement, Ottawa's share was to drop to 10 percent with the other 10 percent to be divided up among fire protection agencies in the expanded enterprise zone area.
Also filed under [
Illinois]
WPSC joins several other utilities that have already sought rate hikes to recover costs for anticipated increases in fuel prices. They include Wisconsin Power and Light, We Energies, WI Gas and Northern States Power.
The greatest increase is being sought by We Energies, which is asking for electric rate hikes of about 7.5 percent for 2008 and 7.5 percent for 2009.
The company says the money is needed to help pay for its investments in the Blue Sky Green Field wind project in eastern Wisconsin, significant air quality control equipment at the company's existing power plants, new electric generating units at Port Washington and Oak Creek, and construction of transmission upgrades and additions by the American Transmission Co.
Also filed under [
Energy Policy|
Wisconsin]
No action taken on wind farm reinvestment zone
November 16, 2007 by Marilyn Powers in The Pampa News
November 16, 2007 by Marilyn Powers in The Pampa News
No action was taken by Gray County commissioners Thursday morning to establish a reinvestment zone concerning a proposed wind farm by T. Boone Pickens, a Roberts County rancher and Dallas businessman. ...A reinvestment zone, once called an enterprise zone, is an area in which businesses could apply for potential tax abatements if they establish a facility within the zone ...The wind farm is expected to consist of approximately 1,400 generators spread over 300,000 acres in areas of Gray, Hemphill, Roberts and Wheeler counties, with most of the units in Gray and Roberts counties.
Also filed under [
Texas]
It's not easy being green: City council reconsiders renewable energy fee
November 6, 2007 by Lindsay Whitehurst in The Daily Times
November 6, 2007 by Lindsay Whitehurst in The Daily Times
It's round two for green power in Farmington today, with utility customers attending another City Council work session to protest a recommended $40 renewable energy fee.
"A bunch of us are going to turn up again," said Mike Eisenfeld, New Mexico staff organizer for the San Juan Citizen's Alliance. "I think the city needs to do the right thing and shuck the recommended policy." ..."All I can do is present the information and they will make a decision."
"Customers who choose to utilize renewable energy should do so because they believe it is the right' thing to do, but should also understand that these options are more expensive than traditional carbon-based resources," the report reads.
Also filed under [
General|
New Mexico]
Del. could learn from N.Y.'s ill wind; Cost hikes likely to shelve wind farm on Long Island
October 21, 2007 by Aaron Nathans in The News Journal
October 21, 2007 by Aaron Nathans in The News Journal
When LIPA ...first proposed the offshore wind project in 2003, costs were estimated at $200 million. The company said it would have little to no impact on electricity rates.
That was the last published cost estimate until fall 2006, when under a Freedom of Information Law request from Newsday, the power authority released the original, winning bid from FPL Energy of Florida: $356 million. The price increases didn't stop there. ..."Long Islanders shouldn't believe for one minute that any major form of renewable energy is going to be cheaper than traditional resources produced by oil or natural gas," Kessel wrote.
Lawmakers upset with recent wind agreement
October 18, 2007 by Denise A. Raymo in The Press Republican
October 18, 2007 by Denise A. Raymo in The Press Republican
Lingering hard feelings over negotiations for wind-farm-tax agreements last month may lead Franklin County to create a planning department. ...
Thursday, when IDA Executive Director Brad Jackson came before the County Legislature's Economic Planning and Development Committee, he was criticized for not doing enough to look out for the county's interest at the negotiating table.
Saranac Lake Democrat Timothy Burpoe said legislators thought Jackson was supposed to be the county's representative in the room.
Burpoe said higher megawatt figures could have been obtained with a tougher stance against Noble and the towns.
But because a deadline was imposed to reach the deal quickly, Burpoe said, he and some other legislators felt pressure to settle for a deal even though the county ended up with the smallest share.