Update on Wind Energy Costs in the Bakken

The wind energy story in Montana sounds a lot like the Cape Wind energy story here in Boston, Massachusetts.

Wind energy costs at least 30 percent more than conventional energy.

Wind energy promoter says his particular wind farm can only produce at 30 percent capacity: I suppose this means that the wind only blows at the right strength about 30 percent of the time. That would jive with what I saw while visiting Montana/North Dakota last summer; most of the turbines were not turning when I passed them (in the wonderful Amtrak trip from Los Angeles up to Portland, Orgeon, and then east to Williston (heart of the Bakken) and then on to Chicago, and finally south to San Antonio. What a fantastic trip!)

Incidentally, it has been my experience that most promoters of anything tend to exaggerate (including fishermen); if this promoter says his wind farm is producing at 30 percent capacity, I wonder what the true rate is.

The Public Service Commission (PSC) won't set rates for the wind farm (for a variety of reasons), suggesting that competitive bidding process be allowed to set rates.

The wind promoter is asking for $90 per megawatt-hour, significantly higher than the price currently being paid by the utility, $56. The average residential customer uses 9 megawatt-hours per year.