Investment bankers are all aflutter with the onset of stimulus money for renewable energy projects according to the August 31 Wall Street Journal. After a long lag, numerous firms have again invested upwards of $100 million in wind farms. Investors are attracted by the quick returns made possible by the hefty federal grants and tax benefits. The growing subsidies for wind power mask wind's high cost and inherent limitations, but only for so long. ...Although appealing to many, wind power is an extremely expensive, inefficient, and unreliable source of electricity, incapable of providing base load power. Wind's intermittency, variability, line loss, necessary back-up generation, transmission needs, and dispatch complexity limit the amount of electricity wind can secure.

The renewable energy source is all the rage in Texas, growing by 60 percent last year alone. It's a fave of the federal government ...According to one federal estimate, wind generators get more than $23 in federal incentives for every megawatt they produce. That compares with 25 cents for natural gas, 44 cents for coal and $1.59 for nuclear power. ...Texas is also working on another state sweetener for wind - almost $5 billion of new transmission lines.

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.

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.

Much has been written about the merits or demerits of wind energy as a viable source of electricity generation for meeting the growing needs of electricity consumption in the United States. No matter which side of the debate one comes down on, one issue is crystal clear. Trillions of taxpayer dollars are being poured into the wind energy corporations' coffers to enhance the return on investment strategies with a guaranteed commitment by federal, state and local governments for a 10-year period. According to a recent report by the National Renewable Technology Laboratory (DOE), wind energy could account for 20 percent of the nation's electricity by 2030. To reach this target, wind turbines would have to produce 300,000 MW of power or 1,000,000 MW installed capacity. The 500,000 plus wind turbines would cost the taxpayers between $5-7 trillion.

In reality, this project should generate for its investors about $2.46 billion over 20 years through the sale of power and Texas renewable energy credits, which are paid by Texas ratepayers. An additional $333 million in federal production tax credits will be added to the revenue stream, along with an anticipated county and school tax abatement (tax forgiveness) generally demanded by all wind project developers of between $125 million and $265 million, depending on the project cost. With the project taking advantage of almost half a billion in tax abatements and credits (some directly out of school district funds and state school funds), lease royalties of only $34 million to $112 million to benefit the state education fund hardly add up to "a good deal." Simply put, Texas public school children, and all Texas residents, will be harmed from a revenue standpoint if the Superior project is built.