Article

Town makes its turbine offer

The yearly financial benefit to the town would be at least $100,000 between a payment in lieu of taxes (PILOT), electricity cost savings at the iron and manganese plant and a mechanism that ensures the PILOT and cost savings equal to no less than $100,000.

After the Massachusetts Technology Collaborative submitted a proposal for two wind turbines in the town watershed earlier this month, the town has now developed its own request.

On Wednesday, water commissioners and selectmen approved sending a letter to the MTC reaffirming the town's strong support for the project and stating its appreciation for the effort invested by everyone involved.

The current proposed model is for the MTC to retain ownership of the turbines for 20 years as part of a three-turbine plan to benefit the state's Low Income Energy Affordability Network. In its letter, the town is requesting that the MTC would pay for peer review, request for proposals review and construction services to the town.

The yearly financial benefit to the town would be at least $100,000 between a payment in lieu of taxes (PILOT), electricity cost savings at the iron and manganese plant and a mechanism that ensures the PILOT and cost savings equal to no less than $100,000.

The benefit would be adjusted every three years to account for inflation. In exchange for this approach, the town would give up all sharing of excess revenue. The offer is valid until May 5.

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After the Massachusetts Technology Collaborative submitted a proposal for two wind turbines in the town watershed earlier this month, the town has now developed its own request.
 
On Wednesday, water commissioners and selectmen approved sending a letter to the MTC reaffirming the town's strong support for the project and stating its appreciation for the effort invested by everyone involved.
 
The current proposed model is for the MTC to retain ownership of the turbines for 20 years as part of a three-turbine plan to benefit the state's Low Income Energy Affordability Network. In its letter, the town is requesting that the MTC would pay for peer review, request for proposals review and construction services to the town.
 
The yearly financial benefit to the town would be at least $100,000 between a payment in lieu of taxes (PILOT), electricity cost savings at the iron and manganese plant and a mechanism that ensures the PILOT and cost savings equal to no less than $100,000.
 
The benefit would be adjusted every three years to account for inflation. In exchange for this approach, the town would give up all sharing of excess revenue. The offer is valid until May 5.
 
"This is what we believe is a bottom line," water commissioners chairman Kenneth McKusick said. "It's not a starting point for negotiation. This is our proposal."
 
MTC Renewable Energy Trust director Warren Leon previously said the collaborative's proposal would provide Orleans $85,000 per year and that the town would not get a better deal to build turbines on the property.
 
It calls for an annual $42,000 PILOT, discounted power for the iron and manganese plant and 25 percent of revenue from excess energy and renewable energy certificate sales after the MTC pays overhead and $300,000 to the low-income network. The network would receive any remaining revenue.
 
The collaborative has received a draft of the town's offer, and spokesman Chris Kealey said Thursday morning that it shares the town's strong enthusiasm for the project.
 
"We'll be conducting some analysis in the coming days of the town's request, and I'm sure we'll be working with them closely in the weeks ahead," he said.
 
Selectman David Dunford said it was important for the town to make an offer at this time as a "line in the sand."
 
"I recognize this may put the project in jeopardy. I think this is a minimum of what we need," he said. "I'll be able to understand if the MTC comes back and says, 'I'm sorry, we just can't do it.'"


Source: http://www2.townonline.com...

APR 21 2006
http://www.windaction.org/posts/2259-town-makes-its-turbine-offer
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