Articles filed under Taxes & Subsidies from Massachusetts

Cape Wind awaits power rate decision

If the company fails to win the tax credits, the power purchase agreement allows the company to raise the rate in the first year above the 18.7 cent rate, he said. Depending on what happens, that first year rate could go as high as 21.2 cents per kilowatt-hour. The contract also allows for the cost of the power to rise by 3.5 percent per year.
19 Nov 2010

Cape Wind rates will whack businesses, hospitals, schools; Blown away by costs

And experts say most of those costs will be passed on to the same consumers who, as rate- and taxpayers, will be paying for the cost of planting the turbines off Nantucket Sound - and footing higher energy bills once the project is running. "As they say, there are lies, damned lies and statistics," said energy analyst Robert McCullough. "This is a very expensive project."
4 Oct 2010

Cape Wind opponents, supporters will weigh in on power deal

Robert Rio, senior vice president at Associated Industries of Massachusetts Inc., said he expects the organization to "add a perspective that is very important to determining the outcome of the proceeding...This is now more transparent, as transparent as it could be." Rio said the group is looking to fully understand the costs of Cape Wind power "and see if this is the best way to use ratepayer money."
9 Jul 2010

Tax credits key factor in Cape Wind energy cost

National Grid and Cape Wind submitted testimony Friday to the state Department of Public Utilities to support a deal they have cut for half the power generated by the Nantucket Sound wind farm. But at least one vocal opponent of the project is claiming the state agency should restart the clock in its review of the agreement because of an error in the public notice of the case.
5 Jun 2010

Sen. Lamar Alexander calls Mass. offshore wind farm 'a taxpayer rip-off'

Clean-energy proponents who want to reduce the country's dependence on fossil fuels celebrated last month when the federal government approved the nation's first offshore wind farm off Cape Cod, Mass. ..."It's a taxpayer rip-off," the Maryville Republican said. "It creates a puny amount of very expensive electricity. Taxpayers in Tennessee will be paying extra for it because of the taxpayer subsidies. And it will destroy a very beautiful Nantucket Sound."
24 May 2010

Power pact buoys Cape Wind

With last week's announcement of a proposed pact to sell half the power from the 130 turbines Cape Wind plans to build in Nantucket Sound, the developer is poised to pursue loans and investors to pay for the wind farm's estimated multibillion dollar price tag. Under the agreement filed May 10 with the state Department of Public Utilities, Cape Wind will sell 760 million kilowatt-hours a year to National Grid for $157 million in 2013.
16 May 2010

Cape Wind cuts key deal

After more than five months of negotiations, the state's largest electric utility has agreed to buy half the power generated by what could be the country's first offshore wind farm. Under the deal, National Grid will pay 20.7 cents per kilowatt hour for the power from the 130 turbines that Cape Wind Associates LLC wants to build in Nantucket Sound and for renewable energy credits associated with the project.
8 May 2010

'No free lunch' with alternative energy

We applied a couple of years ago, using a consultant, for a grant to help with the installation of solar panels on one of our buildings. ...After all of this preparation we were notified that the grant would not be given due to lack of funds. However, it was suggested that since there were few requests for wind turbines, we likely would get a grant.
17 Mar 2009

Blowhards: The fabulous debate over wind power on Nantucket Sound

Green energy has been on the subsidy take for years, including in 2005 when Mr. Delahunt was calling for "an Apollo project for alternative energy sources, for hybrid engines, for biodiesel, for wind and solar and everything else." The reality is that all such projects are only commercially viable because of political patronage. Tufts economist Gilbert Metcalf ran the numbers and found that the effective tax rate for wind is minus-163.8%. In other words, every dollar a wind firm spends is subsidized to the tune of 64 cents from the government.
25 Jan 2009

Tax credits near expiration, jeopardizing green projects

A local company has lost out on part of a $45 million project in the Midwest because federal tax incentives for renewable energy sources - an integral part of the economics of all renewable energy projects - are set to expire on Dec. 31. Roughly $200 million invested in two Pittsfield projects that would produce up to 50 megawatts of energy and 50 million gallons of biodiesel is also likely to be affected. Two wind turbine projects in North County that would collectively produce nearly 38 megawatts of energy could also face significant funding obstacles. ...If the extension fails, Fairbank, of EOS, said, on Jan. 1, "the industry just takes a massive blow because you just can't make the economics of these projects work without incentives."
29 May 2008

Turbine rebate could be carried away

The town's chances for a rebate from the Massachusetts Technology Collaborative for its proposed wind turbine may not be as good as they were last fall. An MTC program director said Tuesday the agency has had "active discussions" regarding its review process of small wind turbines after a consultant found estimates of their energy potential to be too optimistic. ...To be eligible for the rebate, a 10-kilowatt turbine like the one proposed in Westport must be projected to produce 8,760 kilowatt-hours per year of electricity, Christo said. ...A report of 19 MTC-funded small wind turbines by environmental consultant The Cadmus Group said "installers almost universally overestimate annual energy production. Often this overestimation is quite significant." Even a small error in calculating wind speed "can result in a very significant impact on energy production," the report said.
21 May 2008

Wind farm's output not worth subsidies

These letters, and a host of others addressing the Cape Wind facility proposed for Nantucket Sound, were published in the Mar 6, 2008 edition of the Cape Cod Times. The Minerals Management Service, a division of the Department of Interior, has released the draft environmental impact statement of the proposed project. Other letters can be accessed by clicking on the link at the bottom of this page.
6 Mar 2008

Wind tax incentive in limbo

Offshore wind projects such as Cape Wind would certainly feel the effects of a delay in the renewal of PTCs, said Glenn Wattley, chief executive officer for the Alliance to Protect Nantucket Sound, an anti-Cape Wind group. Without support from the federal government, such as is found in European countries, the project could fail after it is constructed and the public might be left holding the bag, Wattley said. ...The credits — which provide a 2 cents per kilowatt-hour incentive for the first 10 years of wind energy projects — expire at the end of 2008, she said. The missing PTCs were not the only blow to renewable energy in the bill. To get it past the president's pen, Democrats agreed to remove a federal version of renewable energy certificates for utilities.
21 Dec 2007

Financial disclosure

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.
25 Nov 2007
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