US Wind Farming (USWF)

[secureresources]

Posted by: Arctec
In reply to: secureresources who wrote msg# 6978 Date:12/27/2004 11:49:45 AM
Post #of 6982 (board: The Trading Floor)

http://www.investorshub.com/boards/board.asp?board_id=2454

Kansas Wind Farm Development Gets A Push From U.S. Tax Break


11:48 EST Monday, December 27, 2004

WICHITA, Kan. (AP)--A tax break from the U.S. government potentially worth millions of dollars is pushing development of wind farms in Kansas, and as many as six could be operating by the end of the year, a state official said.

Lee Allison, science and energy policy adviser for Gov. Kathleen Sebelius, said at least 14 wind farm projects are being considered in the state. The push is fueled by federal tax breaks that could save any wind farm operating by Dec. 31, 2005, millions of dollars for a decade.

The next wind farm scheduled to open in Kansas is a $190 million project in Butler County. It is scheduled to begin operating by late next year.

More wind farms are likely in Kansas, which was recently ranked as the third- best spot in the nation to turn wind into energy, said Allison, who also is chairman of the Kansas Energy Council.

He said the wind energy projects in the works involve at least $1.8 billion of potential investment. However, only about six of the projects will likely be built, because transmission lines in the state don't have enough capacity to transmit the power, Allison said.

Allison said the projects are a boon to the state's economy, bringing up to 400 temporary construction jobs and 20 full-time jobs. Instead of property taxes, companies running the farms often give hundreds of thousands of dollars to local public entities, and pay hundreds of thousands of dollars a year to land owners for use of their land.

However, others say the growth of wind farms is not good news.

Ron Klataske, executive director of Audubon of Kansas, said the push to develop wind energy is being fueled by the "lucrative tax credits" rather than an interest in renewable energy.

"It's insane," he said, equating the hurry to "somewhat of a stampede." The proposed projects in the Flint Hills area could destroy one of the few remaining stands of native tallgrass prairie in North America, he said.

Recently, a state wind energy task force proposed restricting wind energy development in the Flint Hills. The task force urged Gov. Kathleen Sebelius to establish a "Heart of the Flint Hills Area," which would protect about half of the 6 million acres of Flint Hills from unregulated development.

Sebelius wants developers and landowners to give counties a chance to write guidelines on building wind turbines.

Allison said the federal income tax credit is critical to wind companies, which cannot compete against traditional energy producers without it.

The American Wind Energy Association expects the credit to spur wind farm development across the nation, making 2005 a record-setting year in terms of new wind energy capacity being built.

In addition to the supply of wind, rising natural gas and coal prices are driving interest in Kansas wind farms.

It's difficult to say which pending projects will actually be built, Allison said, because negotiations are done in private and most utilities are working with two to five developers to find the best deal.

Eventually, wind may join wheat, corn, airplanes and cattle as economic driving forces in Kansas, he said.

"That's what brings us our wealth is our ability to produce some of these products very well," Allison said. "And wind energy is one of those, and we're just starting to tap into that potential."