tag:blogger.com,1999:blog-1149283829854298377.post2036077119716025787..comments2024-03-28T15:12:38.709-05:00Comments on The Million Dollar Way (The Bakken Oil Blog): Another One Bites the Dust -- Vestas Wind, Portland, ORBruce Oksolhttp://www.blogger.com/profile/10952652803684625738noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1149283829854298377.post-36565388674302612382012-11-10T12:13:22.587-06:002012-11-10T12:13:22.587-06:00I know nothing about the particulars but according...I know nothing about the particulars but according to wiki, it looks like there are two incentives:<br /><br />The Production Tax Credit (PTC) which will expire at the end of 2012. It is a 2.2 cent tax credit that is in effect as long as the law says. The first PCT was enacted in 1992 and expired in 1999; re-enacted in 2002, 2004, 2005, and 2009. [History suggests it will be re-enacted, doesn't it?]<br /><br />The Renewable Energy Production Incentive, also enacted in 1992, is in effect until 2016. In 2016 it will expire. It is adjusted for inflation and currently pays to the producer a direct payment of 2.2 cents per KWH for the first ten years of operation.<br /><br />http://en.wikipedia.org/wiki/United_States_Wind_Energy_PolicyBruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-47492645671815561852012-11-10T11:47:36.892-06:002012-11-10T11:47:36.892-06:00Hi Bruce,
I currently have an electrical engineer...Hi Bruce,<br /><br />I currently have an electrical engineer friend working in Texas on several short jobs. The company he is consulting for are trying to get a wind farm completed by year-end to qualify for the tax incentive.<br />The possibility that it may not be completed has brought forth a looming $30 million lawsuit if the project is not finished on time. That gives a little perspective on the importance placed on qualifying for the incentive. The thing I am unsure of is how long this 2.2 cent incentive is paid. Could that be for the life of the field? Wow! Big incentive!<br />Tom Scott<br />Billings, MTTom Scottnoreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-9810140048284692422012-11-10T09:00:15.840-06:002012-11-10T09:00:15.840-06:00I guess I was thinking of the other side of the co...I guess I was thinking of the other side of the coin: how little it cost consumers to entice companies to put up wind farms. It almost appears CPAs and the CFO need to know calculus to figure out if tax incentives are worth it. Once they max out the tax credits, they can sell the asset. Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-19527349707123093722012-11-10T07:32:20.494-06:002012-11-10T07:32:20.494-06:00 Bruce to give you a idea of the Dollar amount of ... Bruce to give you a idea of the Dollar amount of tax credit given to any one company, Montana Dakota Utility ( MDU ) which is in the heart of the Bakken has 2 wind facilities.<br /> The 20 Unit Diamond willow , South of Baker ,Mt. and the 13 unit Cedar Hills wind farm west of Rhame,Nd.<br /> The 2011 MDU annual Report on page 7 shows the Diamond willow in 2011 generated 98,867,000 KW.<br /> The Cedar hills wind farm generated 59,468,000 KW. The total of 158,335,000 KW generated gave MDU a $ 3,483,370 tax credit at the .022 cents per KW..donnoreply@blogger.com