The Post-Standard News
Archives

Click here to go back to Bullett NewsStand.

Post-Standard, The (Syracuse, NY)

February 2, 2003
Section: Business
Edition: Final
Page: K4

ENERGY ANSWERS BLOWIN' IN THE WIND?
MADISON COUNTY WINDMILLS MAKE "GREEN' POWER. MORE ARE ON THE HORIZON.

   Tim Knauss Staff writer

The town of Fenner, just a few miles east of Cazenovia in the rolling hills of Madison County, is a quiet farming community of 1,680 people where change comes slowly. Many of the families have been in the area three or four generations, says town supervisor Russell Cary, himself a fourth-generation resident.

But this quiet community is at the forefront of new technology in the energy industry. And that technology could someday change the landscape of many more farm communities, as it has changed Fenner's. In the middle of the town, spread out across 3 square miles on land leased from 10 farms, stand 20 wind power turbines that reach more than 300 feet into the sky.

Connected to a nearby substation by 6.6 miles of underground high-voltage lines, the turbines turn day and night, cranking out a maximum of 30 megawatts of electricity, enough to supply more than 7,000 homes.

The Fenner wind farm is the largest of three in New York, all constructed since 2000, and it produces nearly two-thirds of the state's wind energy.

Visitors come from as far as Buffalo and New York City to see it.

But it might not be a novelty for long.

A recent mandate from Gov. George Pataki is expected to hasten the pace of wind-power development.

Pataki declared last month that 25 percent of electricity in New York must be derived from renewable sources within 10 years. The details have to be worked out, but the standard apparently will force utilities and other retail suppliers to become buyers of renewable energy.

Wind power, generally one of the most economical sources of renewable energy, is expected to benefit the most. Industry leaders expect to see 2,000 megawatts or more - the equivalent of 70 Fenner wind farms - come on line during the coming decade.

But in the towns where most of the projects will need approval from local boards, some wind projects are meeting resistance.

Proposed projects in Otsego, Ontario and Erie counties have drawn opposition in recent months from residents. Most cite concerns about landscapes dotted with the turbines.

Fenner town officials, with help from Madison County, spent three years going over the details of the wind farm.

They considered every possible impact, from noise to the possibility of "stray electricity" that could diminish milk production in cows, Cary said. They even checked into how far the turning rotors can throw chunks of ice.

But the biggest concern for Fenner officials - and most likely the biggest for any town - was the visual impact.

The towers supporting the Fenner wind turbines are about 215 feet tall, tapering from 13 1/2 feet wide at the base to 8 1/2 feet wide at the top. Three blades, each 113 feet long, extend from rotor hub at the top of each tower, bringing the total height of the structure to 328 feet.

By comparison, the 23-story State Tower Building, the tallest in downtown Syracuse, is 315 feet high. The Statue of Liberty, measured from the foundation of the pedestal to the top of the torch, is about 306 feet high.

No getting around it, Cary says: "They're big."

Most Fenner residents like the wind farm, in Cary's opinion. The turbines take only a few acres out of crop production. They provide annual lease income to the landowners. And wind-farm owner CHI Energy, a subsidiary of Italian utility giant Enel S.p.A., pays Fenner about $150,000 a year in lieu of taxes.

Cary says the wind farm fits well into the agricultural community. Its effect, he said, is "not to change the lifestyle we have, but to support it and maintain it."

But he concedes that not everyone in town is happy with the turbines.

Some have mixed feelings about their presence on the landscape. After a year, people are still getting used to them, he said.

Wind power's virtues are clear. It has no fuel costs. There is no need to worry about depleting the fuel supply and no dependency on imports.

And there are no emissions. Fossil fuels burned in the electricity industry are significant sources of carbon dioxide, sulfur dioxide, nitrogen oxide, mercury and other pollutants that environmental officials are working to eliminate.

Some consumers are willing to pay more money to support the clean attributes of wind, says Brent Alderfer, president of Community Energy of Wayne, Pa., which sells the output of Fenner wind farm to consumers.

Here's how that works:

CHI Energy, the owner of the facility, sells power like every other generator for whatever it can get on the wholesale market. Prices vary, but they're typically in the neighborhood of 3 or 4 cents per kilowatt-hour.

Community Energy, meanwhile, sells the so-called "green tags" from the same power to retail customers for up to 2.5 cents per kilowatt-hour.

The green tags, which are tracked by the state so they can't be sold more than once, pay CHI for the extra cost of wind that it can't make from the wholesale market.

In reality, customers who buy wind energy get the same electricity their neighbors get. But the premiums the customers pay support the wind power developer, and thus encourage more wind development, Alderfer said.

In a program launched in September, Community Energy and two other companies began selling wind power and other renewable power at a premium to customers of Niagara Mohawk. About 5,000 of the utility's 1.5 million customers had signed up as of late January, Niagara Mohawk officials said.

So far, about two-thirds of Fenner's capacity has been sold to retail customers, and Alderfer said he expects the remainder to be sold by the end of the year.

Fenner Windpower Project was built, at a cost of $34 million, on speculation. But the renewable portfolio standard announced by Pataki offers the promise that utilities may contract for the output of wind facilities before they're built, making the projects easier to finance.

In any case, wind projects seem to be the only kind the electric industry wants to build these days.

At 30 megawatts, Fenner wind farm is the largest power plant constructed in Central New York since the mid-1990s, according to records at the state Public Service Commission.

Consider: After more than a year of planning and working for regulatory approval, Sithe Energies and General Electric last year pulled the plug on an 800-megawatt power plant in Scriba that would have run on natural gas.

Heritage Station would have cost about $350 million. The companies said there was no way they could justify that kind of investment in New York's uncertain power market.

But in the snow-swept reaches of the Tug Hill plateau, Atlantic Renewable Energy Corp. is laying the groundwork for a generating station that will cost nearly as much as Heritage, yet produce far less power.

Atlantic Renewable's 240-megawatt project is expected to cost about $300 million, company principal Bill Moore said. That's $1,250 for every kilowatt of generating capacity, compared with $438 per kilowatt for Heritage Station.

Of course, the wind farm won't have to pay for fuel, which is a significant cost for gas-fired electricity. But government mandates also factor in.

The federal government, for example, permits corporations to depreciate their wind-power investment over five years rather than over the 20-year life of the turbines, reducing tax bills during the capital-intensive early years of the project. Operators also get a tax credit of 1.8 cents for every kilowatt-hour they produce for 10 years.

Pataki's declaration of a renewable portfolio standard will help prime the market.

The New York State Energy Research and Development Authority has provided $22 million to subsidize construction of six wind projects, out of total costs estimated at $425 million. Four projects are still in development.

The authority uses money collected from electric ratepayers to support renewable energy and energy efficiency.

In addition, Pataki ordered state agencies in 2001 to buy 10 percent of their electricity from renewable sources by 2005, and 20 percent by 2010.

And the New York Power Authority, a state-owned utility, recently announced plans to buy 50 megawatts of wind power.

But wind is hardly the only technology to get a subsidy. The nuclear industry benefited from years of federally funded research. The government also spends millions researching coal-burning technologies. And the oil and gas industry receives significant tax breaks for exploration and other activities.

Flat Rock Wind Power Project will be one of the nation's largest, if it gets fully built. The first phase of the project will be 100 megawatts, but Moore thinks he can build the whole 240.

Four other projects in the state totaling 315 megawatts have received grants from the state energy research authority.

In addition, the Long Island Power Authority wants to build a 100-megawatt facility off shore.

And developers are busy studying dozens of other locations.

UPC Wind Partners of South Yarmouth, Mass., has proposed building wind turbines offshore in Lake Ontario and along the shoreline in Oswego. The company also is trying to build a controversial 420-megawatt wind farm off the shore of Cape Cod.

New York seems primed for wind development. How much of the potential is realized might well be determined by local town boards.

"Everyone agrees green power is a good thing," said Cary, the Fenner town supervisor. "When it comes to putting it your back yard, it takes a lot of guts to make that commitment."

Bill Moore, the developer of Flat Rock Wind Project in Lewis County, has more experience than anyone building wind farms in New York. His company developed the Fenner and Madison projects in Madison County before selling its interests.

Moore says some communities might choose not to develop wind projects because of the visual impacts, but he doesn't think that will impede the industry.

There are many good sites, mostly in the central and western parts of the state, and many of those communities will welcome the investment, he said.

"It makes sense for the town boards and planning boards to be making that decision, making the value judgment - the tradeoff between economic development and visual impacts," Moore said. "Let the local folks do that."

How to buy wind power

Several suppliers sell green energy, including wind power, to customers of Niagara Mohawk. To learn more or to sign up, call the suppliers or visit their Web sites:

Community Energy: (866) 946-3123 or www.newwindenergy.com

Green Mountain Energy: (888) 246-6730 or www.greenmountain.com

Sterling Planet: (877) 362-9982 or www.sterlingplanet.com

Customers of New York State Electric & Gas also can buy wind power. Contact NYSEG at (800) 356-9734 or visit www.nyseg.com for details.
Illustration: PHOTO
Al Campanie/Staff photographer
THESE WINDMILLS are among 20 rising up to 300 feet above the landscape
of the town of Fenner, Madison County. In coming years, more rural
communities are expected to debate the construction of windmills.
Color.

Copyright, 2003, The Herald Company
Purchased for use on the Borodino Bullett.