The negative prices appear to be the result of the large installed capacity of wind generation. Wind generators face very small costs of shutting down and starting back up, but they do face another cost when shutting down: loss of the Production Tax Credit and state Renewable Energy Credit revenue which depend upon generator output. It is economically rational for wind power producers to operate as long as the subsidy exceeds their operating costs plus the negative price they have to pay the market. Even if the market value of the power is zero or negative, the subsidies encourage wind power producers to keep churning the megawatts out.

The Lone Star State's renewable-energy mandates - combined with the federal government's generous tax credit for wind-energy production - have helped Texas become the nation's leading installer of wind-energy capacity. You won't find much opposition here to wind energy's rapid expansion, because so much money is pouring into the state. It's all fun and games - until Texas consumers pay the long-term price for everyone else's short-term gain. And pay they will. In my just published study, Texas Wind Energy: Past, Present, and Future (PDF here), we estimate that forcing even modest levels of wind-energy generation on Texans will cost ratepayers and taxpayers up to $4 billion a year, and at least $60 billion through 2025.

Wind power and other renewables have their place in the energy mix. But since the federal subsidies for wind farms are so large, it's unclear Texas needs to provide additional incentives. These funds could be better used to raise teacher salaries and otherwise upgrade the quality of public education across the state. Removing or reducing the state incentives for wind generators will not by itself solve the education crisis in Texas, but it would be a step in the right direction.

A few months ago, the Dallas area experienced rolling brownouts when a front moved through and the wind died unexpectedly, causing a large amount of wind-generated power to die out. Power plants had to scramble to get their gas- and coal-fired generators up to speed to offset the lost power when the wind generators dropped off. That's a problem because generating stations and their equipment do not take drastic changes in load easily, especially the big coal-fired plants. Equipment has to warm up, and keeping them "on standby" requires energy, in addition to "wear and tear."

For now, wind power's triumphant march in the U.S. can count on another legal smackdown of "NIMBYism," after a Texas appeals court yesterday dismissed a suit by landowners upset with a big wind farm built by FPL Energy. Landowners decried the turbines' noise and their spoiled sunsets-which the court agreed was a pity-but the appeals court couldn't find grounds to rule against the power company. ...Congress is meant to reconvene next month for yet another attempt at renewing clean-energy tax credits. But does it have any recipe to make clean energy more appealing to the folks who hate it?

When Young County commissioners began discussing details of the abatement with special counsel Alan Carmichael last week, the majority seemed very interested in finding a way to maximize the amount of money Young County stands to bring in if the farm is built. While that makes perfect sense up front, it could prove perilous to the entire project. With several other counties vying for wind farms from BP, it may not take much to sway the company one way or another. In Archer County, rumor has it that commissioners are planning to agree exactly to the proposal made by BP.

I am extremely concerned at the detrimental impact the construction of wind turbines on the land adjacent to High Elms Lane, Benington could have on wildlife. It is well known locally that this site supports a large and varied wildlife and many of the species are of national and international importance. It has taken a long time and sympathetic farming to encourage so many species to thrive in this area. A total of 26 mammal species (not counting bats) and 75 bird species have been recorded around the proposed wind farm, along with various amphibians and reptiles.

It is clear the majority of commissioners court is in favor of allowing the wind farm to go up in northern Young County. From a government perspective, the choice is easy. By agreeing to waive some of the property tax for 10 years, commissioners will see the income to the county rise by between $200,000 and $400,000 each year. ...While wind farms are often beneficial to property owners who lease their land, they are frequently hated by other land owners. The bottom line is putting 40 or 50 wind generators up in Young County will drastically change the scenic view many people have become accustomed to. If you want an example of what you may see, just drive down Highway 16 South toward Possum Kingdom Lake and look at the windmills sitting south of Bryson.

A series of events on bats look set to be overshadowed by problems affecting the mammals' chances of survival, according to an expert. Anne Youngman, the Bat Conservation Trust's Scottish officer, said wet weather may have hit the breeding season for a second year running. ...On the agenda is a presentation on wind farms in mountain areas of Portugal. Ms Youngman said: "Wind farms were a hot topic at the last symposium. "In Germany, there are turbines above forests and the mortality rate of bats has been found to be high.

The wind is free, but the cost of harnessing its power doesn't come cheaply. Each wind turbine can cost more than $1 million. Transporting the power from western Oklahoma to the population centers is even more expensive. Texas, for example, is investing almost $5 billion to create its own transmission system.

The potential for wind energy is vast, but forgive West Texans if they have an overblown (pun intended) view of what it could mean in the future. Among those, of course, would be Panhandle oilman T. Boone Pickens ...All that said, we have to understand the realities of the entire nation and not be dazzled by the positive effects that have been and will be felt from a regional standpoint.

The more you learn about T. Boone Pickens' plan to switch America to wind power, the more you realize that he seems willing to say and do just about anything to make another billion or two. This column previously discussed the plan's technical and economic shortcomings and marketing ruses. Today, we'll look into the diabolical machinations behind it.

Highland New Wind Development (HNWD), developer of the proposed 20-turbine ridgeline wind project in Highland County, Virginia, has taken its search for investors to extremes, posting a website entitled: "The Greenest Windfarm in the World." ...This greenest-of-all posturing puts a new spin on the permit conditions imposed by the State Corporation Commission (SCC). Although potential investors will want to know why the SCC imposed precedent-setting wildlife monitoring conditions on the project, this critical information is missing from the HNWD website. Most of the extensive record, however, including expert reports and testimony submitted to the SCC, is provided here on the Virginia Wind website.

Unrealistic energy policy is not limited to Washington, D.C. Numerous states clamor for "green" status - picking energy-supply winners and losers and rushing to judgment in the ongoing and unsettled debate on greenhouse-gas emissions. Environmental groups have virtual veto authority over cleaner coal-fired power plants, nuclear facilities, and oil refineries, which can meet an exponentially larger portion of energy and electric demand than the heavily subsidized renewable energies. ...Consumers deserve energy realism, not fanciful plans to replace fossil fuels with renewables. When misguided environmental theory dictates energy policy, the result is high prices, unreliability, and inadequate supply.

I don't have the benefit of a $58 million marketing campaign, but I'm willing to throw down my own five-point proposal, culled from years of writing about, researching and discussing the issue with energy experts, including Pickens. My plan begins with the idea that energy is really about economics. The solutions, therefore, must make economic sense. That doesn't mean consumers won't have to pay more - we will. And providers must be able to make reasonable returns. Subsidies are fine to develop technology, but we can't sustain businesses that aren't profitable without them, which is why I'm skeptical of wind power.

It won't happen overnight. Building those lines won't be quick or cheap. It's expected to be at least five years before the lines could be built and ready to flow with electricity. Construction costs could run $2 million per mile for large, high-capacity lines. Customers served by ERCOT, the power-grid operator for the majority of Texas' electric service, would pay the costs over several years through a fee estimated to be $4 on monthly electric bills.

The truth about wind generation is that without abatements and subsidies, it is more expensive than current generation. It also takes the same amount of backup generation to operate if the wind is not blowing. Pickens owns thousands of acres north of Pampa. Not one wind-generation unit is to be constructed on his property.

Texas has become enamored of its own wind. We now have the biggest wind-generating capacity in the country, and we're building more. But the reason isn't because we're motivated by environmental concerns - that's just feel-good marketing to rally the green crowd and woo the La-Z-Boy environmentalists. Wind power is an open trough of government subsidies, tax credits and state mandates. Taken together, it's a massive corporate welfare effort that means big money for the wind-power developers and big costs for the rest of us. Ironically, at a time when Texas extols the virtues of free markets for electricity, it's investing heavily in the most subsidized form of power.

It's hard to grasp, though, how parts of the plan would be implemented. Assuming all the rights to millions of acres could be acquired and the wind farms built, there's still the problem of wind itself. It doesn't always blow. A recent study by Cambridge Energy Research Associates found that wind power is least available between June and September, the peak months for electricity consumption. When the turbines are becalmed, we'll need other power plants - primarily gas-fired ones, which can be started more quickly than other types of generation - to meet demand. What's more, someone has to pay for building transmission lines to carry the power from the prairies. Guess who? In Texas, the cost of new transmission lines is born by consumers, not the generators.

The large wind farms just to our north on the Kenedy Ranch are under construction and the owners expect to have 250 wind turbines generating enough electricity to power some 90,000 homes by the end of this year. ...While the privately owned Kenedy Ranch is the site of wind farms under development by private corporations, the government continues to prop up the industry through subsidies in the form of tax credits. In other words, wind farm development likely would be a less attractive business venture without help from the government.