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Impact on Economy and Tax Breaks & Subsidies
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Creating a welfare-dependent industry in the province may benefit the backers of these projects, but the potential cost to taxpayers is huge, and the outlook for an unsubsidized industry is grim. ...The wind power industry in Canada gets a federal government subsidy of $10 per megawatt hour.
But B.C. consumers can expect to dig deeper.
The cost of electricity from wind power is about $71 per megawatt hour. That compares to about $48 for natural gas and $25 for electricity produced from B.C.'s heritage hydro assets.
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Canada]
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.
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Texas]
Iberdrola of Spain, owner of Elk River, realized over $9.9 million in PTC allowances in 2007. Foreign companies are not regulated by the Kansas Corporation Commission. There are no state or federal regulations of any kind on WECS. Few Kansas counties have wind regulations.
WECS will force consumers to pay for their electricity three times; to build the WECS, build conventional power as backup, and additional transmission lines to carry power from the WECS to the grid.
WECS will not produce large economic benefits to a community as evidenced by records from Gray County (Montezuma), or Butler County (Elk River). Elk River has produced seven jobs. Most employees live outside the community.
It's unfair to force Delmarva Power to deal only with Bluewater Wind on H.B. 6
March 11, 2008 in Delaware Online
March 11, 2008 in Delaware Online
The Bluewater Wind offshore wind farm proposal exploits the Delaware Renewable Portfolio Standard Act intended to foster the use of renewable energy sources. ...To qualify as an electricity supplier, BWW has to offer a supply that meets customer needs all the time, not just to the extent the wind blows. The BWW proposal drafts Delmarva as its supply partner, reducing supplier competition.
Further, Delmarva's SOS customers may lose the right to choose another supplier if the BWW take-or-pay wind and Delmarva backup power partnership proves expensive. They could be locked in for 25 years.
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Delaware]
At the end of 2007, the WilderHill New Energy Global Innovations Index (NEX), a composite of 86 new energy companies covering wind, solar, biofuels, efficiency, and hydrogen, was up by 58%, year-on-year. As of yesterday, however, it was off almost 20% for 2008 so far, compared to a drop of about 8% for the S&P 500. Why would a sector so favored by politicians, environmentalists, and socially-conscious investors suddenly appear to have diminished prospects, just when it seemed perfectly geared for growth? Unfortunately, renewables and the entire alternative energy sector are vulnerable to two of the same principal factors undermining confidence in the economy as a whole: the availability of credit and higher inflation at the wholesale level.
Also filed under [
USA]
Regulators recently dealt a serious blow to a proposed offshore wind farm in Delaware, criticizing the plan as too financially risky to consumers. ...what's significant about the news from Delaware is that the Public Service Commission used a team of independent consultants to determine the project's costs and their effect on consumers.
That's not the case with the Cape Wind project. So far, the developer has refused to provide financial data that would help the public consider the definition of economic viability. As a result, how can the public fully consider the project if it does not have the appropriate economic information on which to judge it? The point at which the project becomes economically viable is critical to the public's consideration of the project as this private venture seeks to use public lands. ..."After six years of 'exhaustive' review of Cape Wind, we are still getting stonewalled," said Mark Forest, Delahunt's chief of staff.
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Massachusetts]
Wind power is not the answer to global warming. Do we have alternatives? We certainly do have alternatives to windmills but they would disrupt the lifestyle of electors and consumers. In Paris, an article in the September 2007 issue of the medical journal, The Lancet, shows with supporting calculations that it would be better to minimize human consumption of meat, for 80% of agriculturally produced methane comes from farm animals. Wind turbines won't even alter the greenhouse gas equation but by a mere .03%, as mentioned above. The way to reduce CO2 emissions and other greenhouse gases is to use less energy. Governments must massively invest in energy conservation measures rather than in these wind machines. According to another research, if every English household switched for one single low energy light bulb, a fossil fuel-burning electrical plant could be shut down!
Wind power would only be interesting if energy produced can be stored. It has been proposed to fill reservoirs of large hydroelectric dams, for example. An Australian method has just offered in September 2007 to store electricity in liquid accumulators. Quebec would thus be able to utilize wind energy because the major part of our electricity comes from hydroelectric dams, which is not the case for Ontario or New York where, as almost everywhere else in the world, wind power must be backed up by carbon-based generating stations.
We applaud any effort to offer incentives to increase the use of renewable and alternative energy sources to power Michigan.
But we hope the 25-percent goal can be reached by offering incentives, not by issuing mandates. The cheapest source of energy in the United States is coal. For the time being, at least, renewable sources of energy are a more expensive alternative. It would not bode well for economic development in Michigan if the state had astronomical energy costs.
In the Williams/Whitcomb world of tabloid journalism, there is no room for thoughtful discussion, for weighing costs against benefits, for understanding that self-interest is at work on both sides of the issue or for any kind of honest discussion. Such thoughts would get in the way of the facile thinking and cynical blather that fills their book and that is now commonplace on TV, radio and the Internet. Do you find yourself bored now that Don Imus and Rosie O'Donnell are off the air? Does the Internet no longer meet your need for trash talk? Then read this book. You won't learn anything substantive from it, but it'll be great entertainment.
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Massachusetts]
Jan Falstad said that wind had gone from being "technologically challenged and too expensive - to being a popular and mandated goal." Perhaps more accurately, it should have read, "Wind has gone from being technically challenged and too expensive - to being technically challenged, mandated and taxpayer subsidized."
We cannot avoid the fact that some people will suffer from the wind farm projects, but we can ensure that the wind farm companies adequately compensate the damaged individuals for their losses. No reason exists that a farmer who happens to own the specific property on which the company will place its turbines will earn hundreds of thousands of dollars of revenue from the project, while a simple family with a small home adjacent to the wind farm will lose tens of thousands of dollars of property value from the same project. County officials can and should insist that corporations obtaining permits for wind farms agree to a legal process whereby individuals whose property values are damaged will be compensated for this loss.
Many Americans, including the majority of conservative Central Illinoisans, reacted with anger when the Supreme Court ruled that a city could take an individual’s home and give the land to a private developer. But at least in that case, the homeowners were receiving compensation for the taking. The wind farm situation, where no compensation for damaged homeowners is offered, presents a far worse scenario. We need not, and must not, tolerate it.
Jordanville Wind Project Gets 80 Percent Tax Cut, But Provides Only 6-12 Permanent Local Jobs
December 15, 2006 in The Freeman's Journal
December 15, 2006 in The Freeman's Journal
Wind Project are two megawatt turbines, the taxation rate will be $16,000 per turbine.
The county’s consultant determined that the full taxation rate per turbine would be $40,000 per megawatt. Therefore, the county’s offer represents an 80 percent tax exemption.
This rate of exemption will apply to all wind projects in Herkimer County.
The Jordanville Wind project will bring “six to 12 jobs” to the county, according to the Jordanville Wind Project Draft Environmental Impact Statement.
By comparison, Wal-Mart brought over 200 jobs and generates over $1 million a year in sales-tax revenues at its distribution center in Schoharie County, which employs many Herkimer County residents.
So why is this higher mandate likely to hike your bills? Because when government creates an artificial market by fiat, shortages almost always follow (of turbines for wind power, for example), thus boosting the mandate’s cost. For that matter, if all forms of renewable energy could compete on their own, they wouldn’t need a mandate in the first place.
If wind energy really is the energy of the future, as the developers claim, it must prove itself in the market without government subsidies. This has not yet happened anywhere; the projections are all based on artificial models with hidden costs -- costs for you and me, the taxpayers and consumers.