When "Free" Isn't Free -- August 18, 2015; Update On Bakken Economy -- Rural Electricity, Mandan Low-Income Housing

This might be the biggest intermittent energy news story I will see all week. I followed this Northwood, Iowa, school district wind turbine story from the beginning, thinking how foolish it was when I first saw it many, many years ago.

This is really quite amazing. This school district is considering selling its wind turbine after 13 years because it is generating less profit than they thought it would. I honestly don't get it. One would think that after 13 years, the turbine would have been paid for (perhaps twice) and all that free wind energy would have meant no electric bills.

And I certainly didn't think school districts were into making profits on wind. One would think that school districts would simply want to pay the least possible for electricity. I would assume that ditching "free wind" now and starting to pay for conventional electricity would be more expensive, so there must be more to the story. And there is. Paragraph four in the AP story below:

The Northwood-Kensett school district is considering selling its wind turbine that officials say has generated smaller profits than initially projected.

The school district bought the 250-kilowatt turbine about 13 years ago for an estimated $68,000, the Mason City Globe Gazette reported. Officials had planned for the equipment to be moved to the Northwood-Kensett school campus in Northwood, but it never happened.

The turbine remains at a wind farm, where it generates electricity that the district sells to Alliant Energy.

Superintendent Mike Crozier said the turbine has produced about $4,050 in total profits for the district over the past five years. Officials estimate that the equipment should generate between $12,000 and $14,000 annually, but has earned far less due to mechanical breakdowns.

Crozier said that if there's a "market out there, we'll go ahead and sell it."

One wonders how many years they've been operating in the red, when all costs are taken into account. It's interesting that they don't provide a better figure on how much income is actually being generated. Again, if there was even a $100/year profit, why would they get rid of it?

Probably because the intermittent hassle is becoming less intermittent and more continuous.

Maybe they plan to buy a new wind turbine.

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Bakken Economy

KXNET is reporting that Minot-based Central Power Electric Cooperative is getting a $46 million federal loan for infrastructure improvements.

The money is through the U.S. Department of Agriculture's Rural Utilities Service. The Minot-based co-op will use it to build 51 miles of transmission line and make improvements to its distribution system.

This comes on top of a loan guarantee of more than $29 million the co-op received last year.

KNXET is also reporting that the Mandan (ND) Junior High building will be converted to low-income housing, a project spearheaded by the Spirit of Life Catholic Church.

"The list for low-income housing is so long that they've stopped adding names to the list because they're just so far behind being able to meet the need," says Gion.

Mother Teresa Outreach, an organization formed through the church, is the new owner of this building.

Their plan is to convert it into 62 low-income family apartments.

It will be called Sagrada Familia Apartments or in English - Holy Family Apartments.
"From my understanding, it is needed in Bismarck and Mandan and Spirit of Life is doing a wonderful job. I can feel so many people come for food and shelterless and they are below poverty line. They need our help," Sister Mary Michael, Congregation of Teresian Carmelites.

Gion says this will be more permanent housing, with no cap on how long families stay.
"The goal is stability, a place that's safe and where families can be at peace and so I would hope that that would be a part of what the whole neighborhood experiences," says Gion.