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Paynesville Wind Cancelled

Geronimo Wind Energy's proposed  Paynesville Wind farm was issued a site permit and a Certificate of Need (CN) from the Minnesota Public Utilities Commission on January 26, 2011. The project would consist of 63 wind turbines totaling 95 megawatts to be located on approximately 15,000 acres in Stearns County, Minnesota. Paynesville Wind has been unable to secure a buyer for its energy. This letter was issued by the company this month. The content of the letter is provided below. The original can be accessed by clicking the links on this page. 

Mr. Daniel P. Wolf
Executive Secretary
Minnesota Public Utilities Commission
121 Seventh Place East
Suite 350
Saint Paul, MN 55101-2147

RE: Paynesville Wind, LLC Site Permit and Certificate of Need (PUC Docket Nos. IP6830/WS-10-49 and IP6830/CN-09-1110

Mr. Wolf:

Paynesville Wind, LLC ("Paynesville") submits this response to your May 8, 2015 Request for Permittee to Show Cause under Docket Nos. IP6830/WS-10-49.

Paynesville has been unable to obtain a Purchase Power Agreement (PPA) or other enforceable mechanism for the sale of electricity from the proposed wind project. Lacking a PPA, Paynesville has also been unable to commence construction under the permit. We agree that Paynesville should have provided information to the Commission by February 7, 2015 regarding these issues, and we apologize for failing to make that communication.

While the Paynesville project has been offered into numerous solicitations for wind energy over the past two years, we have not been awarded a contract in any of those solicitations. As we understand factors related to the selection of wind projects, we surmise that we have been unsuccessful based on some of the cost and interconnection attributes of the project. Paynesville does not believe current market conditions are favorable to construct  the project on a merchant basis to sell energy into the MISO market. Thus, our failure to commence construction under Permit Condition 10.3 is directly related to our inability to obtain a PPA.

Paynesville has continued its development and marketing of this project, but understands that it will likely need to obtain a new Site Permit and Certificate of Need in order to proceed with the project. We will make the necessary filings with the Commission if and when we decide to move forward with the project.

Respectfully, 

Betsy Engelking
Vice President
Paynesville Wind, LLC

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Paynesville Wind Letter Mpuc Apr152015

Download file (422 KB) pdf


Source: https://www.edockets.state....

JUN 6 2015
http://www.windaction.org/posts/42813-paynesville-wind-cancelled
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