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4/9/2010
Windfarm demanding 3x what utilities will pay
Quiz: What business could you succeed in, demanding three times what your customer is willing to pay? Well, that’s a non-sequitur – a business can’t be successful that doesn’t have customers and a business doesn’t have customers if the potential customers won’t pay what the business is charging. End of Lecture 2, Micro-Economics 101.
Unless of course, you involve the government. Then add in a business that apparently is so accustomed to government largesse that it can’t figure out when no means no.
From Monday’s State Journal:
Wave Wind LLC of Sun Prairie, says it needs 8 cents per kilowatt-hour to make the project viable. MGE is only willing to pay 2.9 cents.
"That rate won't even allow us to put a shovel in the ground," said Tim Laughlin, president of Wave Wind at 4589 Highway TT. "The utilities have to recognize that (green power) will be part of the culture. It will be part of what we're dealing with on all levels, and they'll have to figure out a way to make it work."
And besides which, it will feel good for the community.
"MGE [Madison Gas and Electric] has a customer base that is deeply committed to sustainable energy," said Vickerman, executive director of RENEW Wisconsin, a Madison nonprofit that promotes clean energy. "It sends a powerful signal to component manufacturers, to the construction and building trades, to local governments and to economic development officials."
But, says MGE, we don’t need what you’re selling.
[MGE CEO Gary] Wolter said MGE already has "sufficient energy" from its existing sources - primarily from wind farms in Iowa, where two-thirds of its renewable energy comes from - to meet its requirements under current state law until 2018, or until 2016 if more aggressive goals for renewable energy production are approved by state lawmakers.
The pomposity of it all.
And then there’s the biomass plant that will cost $255,000,000 for a mere 50 megawatts of energy and a huge UW biomass power plant that is a “gamble for the state.” And those damn ethanol subsidies that not only aren’t going away – they’re poised to get still richer. Unbelievable. (April 5 Washington Times editorial: Stop ‘Big Corn’)
Governor Doyle's “25 by ‘25” is bad bad policy. Wisconsin must say no to this ridiculous stuff.
Jo Egelhoff, FoxPolitics.net
COMMENTS
By your article the customer is MGE, what about the people that MGE serves? A utility is not a true competitive business, one cannot shop around for another energy provider. For that reason utilities are regulated by the Public Service Commission.
What of the external cost of the pollution from coal burning? A fee levied against such pollution would make renewable energy cheap in comparison.
Dean Weichmann (Fri Apr 09 05:34:06 2010)
The way the current socialist regime in D.C. will make wind and solar "profitable," is to make energy costs skyrocket through taxing the very air we breathe. And without heavy government subsidies (read free taxpayer money) wind turbines just break even at the end of their service lives. Typical of a government sponsored activity!
Now, let's all get aboard the half-fast train to nowhere and sing Cumbaya (I probably spelled that wrong, but I don't care).
Duke (Fri Apr 09 07:26:56 2010)
What is the lifecycle cost of wind energy vs coal (without subsidies) when all the externalized costs such as pollution (including CO2) are included? This is the only way too look at it. However, I have no idea if this total comparison has been made especially since there is no cap and trade legislation that establishes a cost on carbon.
dave allen (Fri Apr 09 08:26:27 2010)
Paying for the infrastucture is not the only cost for our love affair with ethanol. We just got back from a 5,000 mile driving vacation with my wife's Hybrid Escape. As soon as we got back to the midwest (ethanol country) the fuel economy dropped about 3 miles per gallon. Guess what the price of fuel did not so we pay as much for poorer mileage. Not a great deal!!
jb (Fri Apr 09 09:03:58 2010)
Of course cap-and-trade is not a good deal. The idea is (a) to get people to use less energy for the sake of environmental purists, and (b) to transfer wealth from central (primarily "red") states to the coastal states where energy is largely consumed.
Jan Taylor (Fri Apr 09 17:08:08 2010)
Part of the reason for pricing renewable energy for Wave Wind or anyone else is to make it possible to make a profit selling power. As it is now the utilities have a monopoly on it. If you want small business entrepenures to have a chance then this kind of pricing, called renewable tariffs, is needed. Various tax laws and other impediments make it almost impossible to compete with large corporations. Do you want small business or are you content with service from only the big corporations?
Dean Weichmann (Fri Apr 09 17:32:07 2010)
Yes, the cost this project and some other non-coal projects sound high. But compared to what? The thousands of Americans who die every year from coal burning particulate. A million asthma attacks. Loss of forests and lakes from acid rain. The coal industry, along with the railroad industry, get plenty of subsidies and destroy things that belong to all of us, even you, Jo.
Dave M (Fri Apr 09 22:13:43 2010)
Dave
How can you say "Thousands die each year " ?
What proof do you have of this morbid fantasy ?
So Coal now causes Asthma attacks, What happened to Goldenrod ?
What forrests are lost to acid rain ?
We have more forrests in Wisconsin today, than 100 years ago, when everyone burned coal !
You make non-sense claims Dave
I suggest reading good technical books and not political pamphlets
The falsehoods abound in such garbage and make your comments less than accurate
Rich C (Sun Apr 11 00:26:04 2010)
Dave, I think that you should concentrate on the mercury poisoning. There are already warnings and people with effects of mercury in fish we eat.
I remember a study but I have not looked it up lately that showed that removing lead from auto gas raised everyone in America's IQ by 1 point. A phenomenal change.
The value of our environment is not something that a purely capitalistic system can account for. It is just too simple. That is why we regulate.
vic (Sun Apr 11 09:04:53 2010)
Vic
To bad you have fallen in the same hole as Dave.
The Murcury scare is but another false critique by those who are not informed.
Methyl Mercury is the hazardous form of Mercury. I have Murcury in my mouth . Not a problem , because it's not methyl mercury.
Eating Fish is not an issue, unless you are pregnant. Read the facts Vic.
Whale meat is the problem, not fish.
The amount of mercury in coal is peanuts to what is in the envirionment already and has always been there.
Read the Faroe island studies or the more important Seychelles Islands
report !
Like Global warming Fanatics, Mercury folks cannot grasp the truth.
Whats ironic is that Deafness is blamed on Mercury poisoning and yet the kids with huge amounts of mercury (according to our Gov.) had no hearing problems
Typical!
Have you got your swine flu shot yet ?
Rich C (Sun Apr 11 23:58:25 2010)
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