We Knew It Was Bad. We Just Didn't Know It Was This Bad -- Wind Energy Costs in North Dakota: Coal, $20; Wind: $100 (2011)

Updates

December 21, 2012: a great example of how one can "lie" with statistics, or certainly be very, very disingenuous. This is truly beneath Bloomberg and suggests Bloomberg is becoming nothing more than just another blog.  But if you don't mind paying 5x the cost of coal for your electricity, good for you. The most regressive tax in the country: utility costs.

Original Post

As you read this, also remember this:

• a) North Dakota has a huge amount of wind, and costs are low, compared to other locations
• b) offshore wind costs up to 3x what onshore wind costs (think the London Array)

Now from the linked document:

The cost of electricity for MDU is:

• coal: $20/MWH
• Purchased: $30/MWH (when MDU needs to "buy" electricity on the open market to meet deman)
• natural gas: $40/MWH
• wind farms: $96/MWH

Narrative:

At present, all electricity produced by MDU comes from its coal plants. Any additional energy required to meet its customers needs is purchased wholesale at $30/MWH which is less expensive than producing electricity at its natural gas facilities for $40/MWH.

When the wind blows, MDU cuts back its purchase of $30/MWH energy and replaces the $30/MWH with $96/MWH energy.

To say that this is not cost effective is obvious and it is certainly not least cost to the ratepayers.

To the contrary, it costs the ratepayers more than triple the price for wind power as opposed to the purchase price and nearly five times the cost of coal-produced electricity.

It is also more than double the cost of electricity that can be provided by MDU's natural gas plants.

Someday, we will look back on President Obama's decision to kill the coal industry and ask, "what were they thinking?"

Cue up Connie Francis.

The source: letter to ND Public Service Commission, January 3, 2011. It's a PDF file but seems to load fairly quickly.

Not mentioned in this document:

• MDU will actually require more fossil fuel to prepare for demand when wind stops blowing
• wind plays havoc with the grid endangering hospitals, high tech manufacturing, and manufacturing in general

Coal: $20.

Wind: $100.

Do the math.

And off-shore wind can cost up to 3x as much. Wow, the Brits are going to meet reality with the London Array. New England will meet reality with CapeWind.

Wind energy has not one redeeming feature. Slicer and dicers are awarded 100% immunity from migratory bird kills.