NEW WORLD WINDPOWER LLC ™
© 2004 By Russell L. Doty

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CLICK HERE TO PRINT A STICKER TO DISPLAY IN YOUR HOME OR BUSINESS ANNOUNCING THAT YOU USE GREEN POWER

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RECENT COST REDUCTIONS FOR WINDPOWER:

            The costs of wind power generally on a system are coming down as the market grows, technology improves, and we get more experience with what those costs actually are. Unlike natural gas costs now hovering at a level more than four times what they were four years ago, those wind costs will continue to come down as we blend wind power from the less expensive newer wind farms like that proposed for Judith Gap, Montana with those from the older more expensive wind farms like those on the Columbia River gorge in Washington or the windfarm southwest of Cheynne, Wyoming. We can help drive those costs down by simply putting more wind power online and creating a market for wind power.

            This has happened in the systems of utilities around the country, some 600 of which offer wind power to customers who want it at a premium. Those premiums are not to be confused with the ancillary costs of providing power to everyone on a grid. The premiums are charges made by utilities that do not have windpower in their portfolio or for persons who want to purchase more power than just the small percentage that is available in the portfolio.

            But even the premiums are being reduced. For example, about 29,000 Windsource subscribers on the Xcel Energy Colorado system currently paid $2.50 per 100 kWh block several years ago. However, Windsource purchases are exempt from fuel costs and air quality rate riders, resulting in a current net price of about $0.52 per block less than those still using fossil energy pay. That is, those who buy wind do not have to pay for increased fuel costs or the costs of cleaning up coal plants. The net premium is not based on the actual costs associated with the program and the premium fluctuates with changes in the fuel cost adjustment. Based on current rate riders/exemptions the new premium will be $0.97 per 100 kWh block--not $2.50 as the Montana Coal Council lobbyist told the Montana legislators in February of 2005 (At that time it was around a net of $0.75 after credits but it has continued to come down since then. Subtract the $1.59 credit from the premium on November 1, 2005 to get $0.62.

            While Xcel Energy's explanation of all this is better than it used to be one would hope Xcel would change the way Windsource charges appear on customer bills and its web site so they are more understandable. Instead of the $.97 Windsource line item and gobbledegook about reversal of the fuel cost and air quality charges, the bill should summarize in bold letters saying something like:  "Net Windsource Charge = -$0.62 per 100 kWh block. You pay less for wind."

            Prior to March of 2004, more than 30,000 Xcel Energy customers in 11 states and I paid for all of part of our energy from wind generation. The results of this effort have helped to bring the cost of wind power down dramatically as explained in the above paragraph. You can take advantage of that cost reduction and join the effort to bring the cost of renewable power down further. New World WindPower LLC will help by providing a place for you to sign up through this web site, by keeping you informed, and by fighting for you in the halls of government.

 

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