Wind power brings money to rural area

LAMAR, Colo. -- Blowing wind spins giant wind turbines stretching skyward above the rolling plains of the Lower Arkansas Valley every day.

And with each rotation, the wind generators bring cash to local economies.

Wind power is not only a new source of revenue for farmers and ranchers, it also increases local tax base for rural communities.

While landowners can make up to $6,000 a year per turbine, county officials say property taxes paid by wind utilities also help boost the economy.

Southeastern Colorado held its own economically for decades. But in recent years, the region has seen population dwindle and the economy shrivel at the hands of a drought and other curses of Mother Nature.

While the numbers of farmers and ranchers have been on a steady decline over the years, hardy people who stayed to weather the storm have been adapting with a new friend -- the relentless wind.

PPM Energy, Inc., ScottishPower's competitive U.S. energy business, and Shell WindEnergy, Inc. constructed the Colorado Green Wind Project, one of the largest wind power projects in the state of Colorado, in 2003.

The 162 megawatt Colorado Green Wind Power Project, located 20 miles south of Lamar, was developed to help meet Colorado's demand for renewable electricity. The project utilizes 108 GE 1.5 MW wind turbines, the largest assembled in America. The project, the fifth largest wind farm in the nation, spans across 11,840 acres of grassland between Lamar and Springfield. It is owned by PPM Energy and Shell WindEnergy in a 50/50 joint venture.

Anita Marks, a spokeswoman for PPM, said most wind projects represent as much as 20 to 30 percent of a county's tax base.

"When we go in to an area we typically pay a lot in property taxes. Keep in mind, some of these projects are valued at $1.5 million per megawatt hour and many of the areas we put wind farms in are quite rural. So very often they can become a very large part of the property tax base very quickly," Marks said.

Marks said that while the land beneath the turbines remains under local ownership, the asset that sits on top of it belongs to the company. "That means we have to pay property taxes," she said.

Prowers County Administrator Linda Fairbairn said in the 2005-06 tax year, the Colorado Green project generated about $1.4 million or 19 percent of the county's property tax revenue.

Of that money, the county's share was $646,600. School District RE-2 received $614,853. The Prowers County Medical Center received $159,995.

"This wind farm has been great for us - we'd like to see ten more out here or however many they want to bring," Fairbairn said with a laugh.

Southeastern Colorado soon will be home to a second large wind farm project - this one in Bent County.

PPM is constructing the 75-megawatt Twin Buttes Wind Power Project west of Lamar in the southeast corner of Bent County.

The Twin Buttes project will run adjacent to the Colorado Green Wind Power project. Officials say the project is extremely close to going commercial with the project.

Power generated by the Twin Buttes project will be delivered under a long-term contract to Colorado customers of Xcel Energy. Xcel also receives the entire output of the Colorado Green Wind Project.

The project will span approximately 9,000 acres owned by seven landowners.

The Twin Buttes project will use 50 GE 1.5 MW turbines.

In addition to the creation of five to six full-time jobs in the community, the project could provide a fair amount of annual property tax revenue.

Bent County Assessor Guy Wagner said he will not have exact numbers until the wind farm has been up and running for a year.

"This wind farm will definitely benefit the local economy," Wagner said. Marks said another benefit is that an average wind farm can have up to 12 employees. "They are good-paying jobs," Marks said.

The economy turned around for the depressed rural communities in Prowers County when construction of the Colorado Green project began. At the height of construction, subcontractors employed nearly 400 workers, providing a boost to local businesses. Local companies that provided services also benefited.

"We try as hard as we can to hire local subcontractors whenever we can. Just having that number of people in the community when you are building a wind farm can be a big boom to the local hotels, restaurants and grocery stores," Marks said.

Marks said that another economic boost comes from tourists.

"We put wind farms in to make energy, but people are fascinated with them, they are beautiful on the horizon and a lot of people will come to areas that have wind farms just to see what they are all about," Marks said.