The average residential Delmarva Power customer could end up paying just 70 cents a month more over the next 25 years for Bluewater Wind's power than they would have paid for fossil-fuel generated electricity, a team of state consultants said Thursday. The projection is significantly lower than the $6.46 a month "wind power premium" the consultants projected in a December analysis of the previous proposed contract between Bluewater and Delmarva, which would have had Delmarva buy twice as much wind power. ...Under the new, smaller contract, Sheingold estimates the average monthly additional cost on a residential customer, averaged over 25 years, will be 70 cents. In the early years, those additional costs will be an estimated $1.79 a month over market, and over time, will turn into a savings as fossil fuels get more expensive.

Amid voter frustration over record-high fuel prices, U.S. Senate Democrats plan to bring up on Tuesday legislation that takes aim at oil companies, speculators and the Organization of Petroleum Exporting Countries. The vote marks the Democratic party's most comprehensive response to rising gasoline, jet fuel and diesel prices, and will kick off a debate that is expected to last at least until the presidential elections in November. Republicans are expected to block the plan ...The U.S. Senate is also voting this week on whether to proceed with a tax bill that would extend tax credits for projects to generate energy from solar power, wind, and other sources of renewable energy.

A local company has lost out on part of a $45 million project in the Midwest because federal tax incentives for renewable energy sources - an integral part of the economics of all renewable energy projects - are set to expire on Dec. 31. Roughly $200 million invested in two Pittsfield projects that would produce up to 50 megawatts of energy and 50 million gallons of biodiesel is also likely to be affected. Two wind turbine projects in North County that would collectively produce nearly 38 megawatts of energy could also face significant funding obstacles. ...If the extension fails, Fairbank, of EOS, said, on Jan. 1, "the industry just takes a massive blow because you just can't make the economics of these projects work without incentives."

Released Tuesday, the 443-page Energy Report 2008 shows state and local subsidies of $1.4 billion on energy produced in Texas, plus a similar amount of federal subsidies for Texas energy. ...[Texas Comptroller Susan] Combs said Tuesday that subsidies can have unintended consequences -- especially when policymakers favor "winners" by providing greater subsidies for one fuel source over another. "Such assistance must be applied carefully," the report says. "Public policies that attempt to pick winners in the race for new energy technologies are an inefficient way to achieve policy goals and run the risk not only of wasting taxpayer money but also of directing private investment away from more promising use."

Hooking up the state's largest cities to rapidly expanding wind power projects in West Texas could cost as much as $6.3 billion in the coming years, the state's grid operator says. In a report this week to the state Public Utility Commission, the Electric Reliability Council of Texas, which oversees most of the state's power grid, listed five options for getting wind-generated electricity to the populous areas that need it. Even the least ambitious would cost almost $3 billion. Texas is the largest wind power producer in the country, with more than 4,400 megawatts of capacity installed — about 2 percent of the state's total power capacity, according to the American Wind Energy Association.

The state requires municipally owned Springs Utilities to derive 1 percent from renewables annually from 2008 to 2010, 3 percent from 2011 to 2014, 6 percent from 2015 to 2019 and 10 percent by 2020. More daunting is the possibility that federal lawmakers will impose carbon taxes to drive down reliance on coal. No one knows how much that would cost, but Springs Utilities could pay $150 million a year - about 16 percent of its current budget. That's a big incentive to find alternatives, and wind is one of those. ...The city's most recent poll showed 76 percent of residential customers surveyed are willing to pay $1 to $2 more a month to support wind. That's the estimated financial impact of using 50 megawatts of wind, which translates to 3.3 percent of the city's energy needs per year. The reason it doesn't account for more is that wind is an intermittent resource, and power is available from it only 35 percent of the time, Knopp said. Utilities' customer poll also showed 71 percent of the city's business customers support wind if it causes bills to increase by 1 percent or less.

An opinion recently issued by the Texas Attorney General appears to call into question the ability of county governments to grant property tax abatements for wind energy generation equipment. ...citing case law, the opinion observes that "[f]ixtures and improvements owned by the owner of real property are also real property, but ordinarily improvements owned by a lessee of real property are personalty." Therefore, the opinion concludes that since the fixtures and improvements in the situation at hand were owned by the developer and not the land owner, the improvements are personalty and are not eligible for an abatement under Section 312.402(a).

Michigan's drive to renewable energy is generating concern about higher electricity prices. The issue: How, and at what price, will utilities or other energy providers build or purchase renewable power to meet a proposed state mandate that 10 percent of power come from renewable sources by 2015? "They really have to start going to town in a short period of time. And doing that, whether they're building or buying, there will be an additional expense that comes with it. And that's going to come back to the ratepayers," said Chuck Hadden, vice president of government affairs for the Michigan Manufacturers Association.

A House Democratic appeal for faster action on a proposed $1.6 billion offshore wind farm got little traction Thursday, with House Republicans terming any concrete action unlikely before springtime. "I think some of them are waiting until Harris McDowell has finished up his hearings" in March, said House Speaker Terry R. Spence, R-Stratford. Senate Energy & Transit Committee Chairman Harris B. McDowell III, D-Wilmington North, began a series of hearings on Bluewater Wind LLC's proposed 150-turbine wind project east of Rehoboth Beach this month, with a report due in early April. ...Estimates say the project may initially add $13 to $14 per month to Delmarva's standard-offer customer bills, but could decline to break even with current rates after 2025 if natural gas prices increase significantly. Spreading the cost to other Delmarva or state electricity customers could lower rate impacts to $7 extra monthly in early years.

State Rep. John LeMahieu, R-Cascade, told the Assembly Energy and Utilities Committee that town board members take "a lot of grief" from the public when they approve wind farms. He cited the recall election held Tuesday involving a Calumet County board supervisor who favored a wind farm project. "Unless the towns approve them, we won't have wind farms in this state. They're certainly not going up in the city of Fond du Lac," he said. Under LeMahieu's bill, $208,000 in utility aid payments would be shifted this year from Fond du Lac County to the towns in which Cedar Ridge, Forward Energy and Blue Skies Green Fields are located.

For wind-energy companies across the U.S., the pace of business in 2008 may depend a lot on dealmaking in Washington. The latest round of debate, centering on an economic stimulus bill, has taken the wind out of them. The extension of a key tax credit for wind energy set to expire at the end of 2008 was left out of the economic stimulus package, reviving uncertainty about expansion of the renewable power source at a time of record-high prices for traditional energy. ...While more than 3,000 new turbines were installed in 2007, concern about the expiration of the tax credits underscores the economic limitations of this form of alternative energy, although supporters say wind power eventually will be competitive without the help of tax credits.

Renewable energy made up more than 14 percent of Germany's electricity consumption in 2007, but further progress may be hindered if government support is cut back, according to new statistics. ...Energy drawn from wind, solar, water, biomass and thermal heat accounted for 9 percent of Germany's total primary energy consumption last year ...

A decision by the Kansas Corporation Commission has led Westar Energy, Inc. to suspend plans to develop 200 MW of wind power by the end of 2010. ...The company said the order also indicated that in the future wind generation could be subject to "undefined operating standards" and "potential financial penalties" that have not been imposed on other forms of generation. ...In its order, the commission said it concluded the circumstances do not justify allocating to ratepayers the cost of an additional 1 percent return on investment in light of the uncertainties inherent in wind generation and the narrow margins as to whether purchased power agreements or ownership is more costly. The commission also said an incentive mechanism to maximize wind energy output is not necessary at this time. It plans to revisit the issue in two years.

State regulators are saying Westar Energy Inc.'s plans to invest in wind power are prudent but aren't allowing the utility to increase its profits. The Kansas Corporation Commission's decision created uncertainty about Westar's plans to invest in 295 megawatts of generating capacity from wind farms in three counties, enough to power 88,000 homes. ...Construction costs and the fact that wind doesn't blow consistently means that electricity from wind turbines more expensive per kilowatt hour in the short term than power from coal-fired plants. But commission spokeswoman Rosemary Foreman said Westar shareholders' risk was lessened because regulators will permit the utility to recover its investments in wind farms through its rates. "The commission just didn't think it justified, the ratepayers paying an additional cost," she said. "The risk to the company is minimized."

Austin Energy has relied almost entirely on wind to propel its march toward the city's renewable power goal. But to ensure reliability and affordability, Austin Energy will need to diversify its portfolio beyond wind to reach its goal of getting one-third of its electricity from renewables by 2020, said Michael McCluskey, the utility's deputy general manager. ...The Electric Reliability Council of Texas, which operates the electric grid for most of the state, has determined that only 8.7 percent of the state's installed wind capacity can be relied on in periods of peak demand. So to ensure that the lights - and air conditioners - stay on during hot summer afternoons, utilities must have backup conventional power sources, such as natural gas, that can be turned on quickly, said Bill Bojorquez, ERCOT vice president of system planning.

At this time last year, Nebraska advocates for wind energy were bracing for another legislative session of mostly futile efforts to nudge public power out of its resistance to privately developed wind projects. Now, the Nebraska Public Power District, the state's largest public utility, is negotiating with three private developers on projects totaling 150 megawatts a figure that would dwarf the state's current production of 73 MW per year. ...But not everyone is excited about the push into wind. ...Southern [Power District] spokeswoman LeAnne Doose said the utility's board is concerned about installing a traditionally more costly form of power at a time when utilities are passing double-digit rate increases. Doose said she has seen a groundswell of support for wind energy, but she's concerned that utilities might bow to popular pressure rather than coming at wind with "a common-sense approach." "It's coming," Doose said. "We just hope that it's done in more of a sensible way."

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.

Howard County commissioners approved a trio of reinvestment zones necessary to grant tax abatements Monday morning, moving forward with negotiations with several wind energy developers that could lead to an estimated 400 to 500 new turbines being erected in the county. Commissioners met with Terry Wegman, executive director for Moore Development, who is serving as a liaison between the wind energy developers and local taxing entities for the purpose of establishing reinvestment zones, and ultimately, negotiating tax abatements for several proposed projects. The court approved reinvestment zones A, B and C, following a public hearing that drew comments from only a single property owner. ..."Even the smaller developments - the smallest one is 36 megawatts - will be putting up quite a few turbines. I think we're looking at between 400 and 500 turbines at this point, but that's nothing more than a rough estimate."

Bluewater Wind will build 150 energy-producing turbines off the coast of Rehoboth Beach by about 2014 at an estimated cost of $1.6 billion, according to a statement released this afternoon by Bluewater. ...Bluewater spokesman Jim Lanard put it more bluntly: "Our biggest concern is that Delmarva has a secret black box they may use to try to blow up the process." Delmarva would pay 10.59 cents per kilowatt hour for the wind energy, McGonigle wrote. That's 1.05 cents higher than Bluewater's original bid.

Friday is the deadline for Delmarva Power to release details of agreements with three power companies to provide stable-priced electricity for the next 25 years. Homeowners, environmentalists and state officials are awaiting data to see if the wind farm will offer a competitive price, as well as whether the wind farm will be big enough to make a sizable contribution to the state's electricity supply. ...