A federal clock is ticking on an ambitious Texas Public Utility Commission plan to build transmission lines to funnel wind energy from West Texas to metropolitan areas. The wind energy industry revolves around a production tax credit that expires Dec. 31. After more than one false start, there is no guarantee Congress will extend it. Expansion will halt, some warn, if lawmakers don't take action this summer. "We don't want lines to just be standing out there," Sweetwater Mayor Greg Wortham said of the planned transmission lines. Wortham is also director of the West Texas Energy Consortium. Until a turbine is producing juice -- no credit.

Pecos County Commissioner for Precinct 3 Jay Kent speculated aloud about how much money the county was losing, but after a discussion the Commissioners Court approved unanimously Monday a tax abatement for the Sherbino II Wind Farm LLC, a development venture of British Petroleum Alternative Energy. The court approved the agreement with amendments. One removes a clause that requires an invoice be sent to BP each year, placing the onus for payment by Jan. 31 of each year of the abatement upon BP; the second specifies a public notice to other taxing entities.

Tazewell County State's Attorney Stewart Umholtz warned Tazewell County board members Monday that he would be required to "take legal action" if the county board approves a questionable expansion of a tax-free zone for a proposed wind farm. County Chairman Jim Unsicker says that Umholtz is entitled to his opinion, but that opinion is not shared by many people. "(Umholtz's) view on the expansion of the enterprise zone is diametrically opposed to the view of a number of people on the board, the state, the city and just about anybody else you want to talk to in the state of Illinois," said Unsicker.

Logan County State's Attorney Tim Huyett disagrees with his friend and Tazewell County counterpart on a legal issue related to whether the Rail Splitter Wind Farm qualifies for inclusion in an enterprise zone. The agency that administrates all of the state's enterprise zones also disagrees with Tazewell County State's Attorney Stewart Umholtz, who has threatened to sue his own county board if it extends that county's enterprise zone to the wind farm locale, which straddles the Logan-Tazewell county line.

Tazewell County State's Attorney Stewart Umholtz is threatening legal action against the county itself if it ignores his advice and expands an enterprise zone to include a proposed wind farm. Umholtz sent a letter Tuesday to County Board members, saying he opposes expanding the zone to include the Rail Splitter Wind Farm near the Tazewell and Logan county line, saying it would violate state statute. "Let me make myself perfectly clear," Umholtz said in the letter. "The proposed expansion of the enterprise zone does not meet the statutory requirements and should not be approved by the County Board."

A proposed wind farm for Tazewell County is in jeopardy because the county and Horizon Wind Energy LLC can't reach an agreement, threatening to stop the project from moving forward. The Tazewell County Land Use Committee met Tuesday, and problems that have apparently been brewing under the surface for months came to light. Assistant Tazewell County State's Attorney Mike Holly said he is concerned with several parts of a decommissioning plan, which addresses what will happen to 38 wind towers if Horizon ever goes bankrupt, sells the wind farm or abandons it.

The looming expiration date and uncertainty about whether Congress will extend the so-called renewable energy production tax credit is making it more difficult for wind project developers to line up financing, industry officials say. According to the South Dakota Public Utilities Commission, 25 wind energy companies have expressed an interest in developing about 1,000 megawatts of wind power in the state during the next few years. ... "This isn't emergency spending," said Herseth Sandlin, a member of the Blue Dog Coalition. Johnson agreed that they need to find a way to pay for the extension.

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.

The billionaire Chairman of Suzlon Energy Tulsi Tanti has said wind energy firms does not require subsidies, as the prices of fossil fuels like oil, gas and coal are becoming more expensive. Quoting Tanti, a German business weekly said that wind energy does not need subsidies as the fossil fuels are turning more costly.

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.

The Highland Independent School District learned earlier this month that it is a property wealthy district after being notified of its status by the Texas Education Agency. In TEA terms, Highland is a Chapter 41 district for the 2008-09 school year. Chapter 41 of the Texas Education Code makes provisions for certain school districts to share their local tax revenue with other school districts. ... The Highland ISD has been declared a Chapter 41 district because of significant increases in property values due to the new wind farms in the district. Nelson said those wind farm values will peak in the 2008-09 school year and then decline due to tax code Chapter 313 property tax limitation agreements ...

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.

"If we don't get something done in the next 30 days or so, we're going to start seeing facilities being delayed, turbines moved offshore," Eber warned. "We've got to get Congress to try to do something for us because it's starting to look like it's going to have an impact on expected deliveries." Lack of clarity surrounding when or whether the PTC will be extended has hampered wind development and consolidation. ...GE Energy Financial Services will invest $2 billion in renewable energy in 2008, separately from investments by GE Energy, Walsh said, later emphasizing that the company is "not captive" to the U.S. market. "This is a global market. If we don't have the incentives, we're going to invest elsewhere. To have stable policies, to have the right risk reward, whether it's China or Europe or wherever, that's where the money is going to go," Walsh said.

In a public hearing Wednesday, the Morrow County Court approved of a special tax schedule for the Willow Creek Wind Farm, which is building 48 wind turbines in Morrow and Gilliam counties. The program, known as a Strategic Investment Program (SIP), allows the energy company to pay the majority of its property taxes spread out over 15 years rather than the first six, which is the norm under tax schedules. Paul Woodin, the executive director of the community renewable energy association, said that without the SIP, Oregon would be one of the most expensive places to site a wind farm.

General Electric Co. executives and spokespeople said Wednesday another congressional failure to extend a tax credit for renewable energy projects could put billions of dollars worth of future wind farms in jeopardy. ...The federal production tax credit (PTC) for solar, wind and other renewable power projects is set to expire on Dec. 31. It is indexed to inflation, so owners of wind farms receive a tax credit of 2.1 cents per kilowatt hour for the first 10 years of operation. The PTC was first instituted in 1992 to help encourage renewable energy sources and reduce pollution.

The Energy Independence and Tax Relief Act of 2008 would have extended a tax credit to build windmills by one year through December 31, 2009, and extend for three years similar credits for renewable energy sources like biomass, geothermal, landfill gas and trash combustion. The bill failed to garner enough votes to limit debate and move to a vote, leaving the fate of the clean-energy credits uncertain. Extension of renewable energy credits was the most expensive portion of the bill, at about $7 billion over 10 years.

Congress struggles to fund a one-year extension that will cost $3.5 billion to pay wind generators the credit for 10 years. The House passed the extension in May, but the Senate has failed three times to approve it this year. ...On Tuesday, the Senate failed again to approve wind power's tax credit that was contained in a larger package of tax provisions. "The general agreement among everyone is: 'Look, Congress is not going to let these things expire,' " said Bill Wicker, spokesman for the Senate Energy and Natural Resources Committee. "Unfortunately, there aren't a lot of extra dollars laying around."

Landowners in Sullivan and Adair Counties stand to make a lot of money if Tradewind Energy decides to go ahead with the Shuteye Creek Wind Project and build wind turbines on their land. However, the company won't build if it doesn't win a contract with Ameren UE, and the development manager says they can't win the contract without some big tax breaks. Wednesday the Sullivan County Commission held a meeting to discuss just how many tax incentives it wants to give the company. Some elected officials were torn between bringing in the new business and giving away the tax base.

To the disappointment of many Silicon Valley companies, partisan politics in Congress on Tuesday continued to block the extension of tax credits for renewable energy and research and development. The Senate voted 50-44 - 10 votes short of the total needed - to close debate and take a final vote on a package of tax credits for solar, wind, geothermal and other renewable energy producers, which are due to expire at the end of the year. The bill also would reinstate R&D tax credits that expired at the end of 2007.

Senate Republicans thwarted Democratic-supported legislation that would increase windfall- profit taxes on oil companies such as Exxon Mobil Corp. as Democrats set their sights on tighter energy trading scrutiny. Democrats fell nine votes shy today of 60 needed to proceed to debate. The White House Office of Management and Budget today threatened a veto of the measure. ..."The bill before us is pure and simple, a pathetic attempt to even call itself an energy plan,'' Texas Republican Senator Kay Bailey Hutchison said on the Senate floor. A windfall profit tax passed in 1980 was "an abject failure.''