Owner of Wind Farm Seeks Tax Change
Wayne Independent|Diane L.T. Boothe|April 5, 2006
HONESDALE - FPL Energy is seeking a change in the way its wind farms are taxed, by taxing the energy produced rather than the property.
HONESDALE - FPL Energy is seeking a change in the way its wind farms are taxed, by taxing the energy produced rather than the property.
A letter discussing this proposal was read by Clinton Township resident Ray Vogt during the Wayne County Commissioners' meeting held April 3, 2006- said to be from State Rep. Jerry Birmelin in reply to an inquiry from Western Wayne School District Superintendent Mr. Andy Falonk. It states that a lobbyist for FPL Energy indicated through a conversation with Rep. Birmelin that, “...they were seeking compromise legislative response to the taxing of wind-generated power that would, rather than be a property tax, be a tax that would assess on the value of the energy created by the turbines...”
Copies of the letter were forwarded to the Wayne County Commissioners, Western Wayne and Forest City school districts, Clinton and Canaan Township …
A letter discussing this proposal was read by Clinton Township resident Ray Vogt during the Wayne County Commissioners' meeting held April 3, 2006- said to be from State Rep. Jerry Birmelin in reply to an inquiry from Western Wayne School District Superintendent Mr. Andy Falonk. It states that a lobbyist for FPL Energy indicated through a conversation with Rep. Birmelin that, “...they were seeking compromise legislative response to the taxing of wind-generated power that would, rather than be a property tax, be a tax that would assess on the value of the energy created by the turbines...”
Copies of the letter were forwarded to the Wayne County Commissioners, Western Wayne and Forest City school districts, Clinton and Canaan Township supervisors.
Mr. Vogt requested of the commissioners that they send letters to the appropriate state representatives, informing them of the commissioners' opinion on this matter. He referred back to HB 1964, (Alternative Energy Investment Act) which authorizes “investment tax credits for qualified alternative energy enterprises” according to the bill. Other incentives already in existence, are the Federal tax credit of two cents for every kilowatt produced and Governor Rendell's decree in 2005, that all PA electrical utility companies must purchase 20% of their power from renewable wind turbine utilities. The other side of this would allow those same utility companies to pass this costs on to their customers that would show as an 8% increase on their electrical bill.
Mr. Vogt felt these tax incentives should be enough to satisfy the wallets of FPL Energy, without further attempting to forgo the company's obligation to pay local taxes.
Since 2003, FPL Energy has appealed their local taxes. FPL Energy has been mentioned as a subsidiary of FPL Group, Inc., and also an affiliate of Florida Power and Light Company.
According to the FPL website, what was described as two of the most successful energy companies (FPL Group & Constellation Energy) in America, had agreed to merge together: “The transaction will create a company with a market capitalization of approximately $28 billion (based on current market values), combined annual revenues of $27 billion, and $57 billion in total assets. The combined company will be named Constellation Energy....FPL Group has provided total shareholder returns of about 77 percent since year-end 2001, and Constellation Energy has provided total returns of more than 160 percent over the same period. ”