Date: 10/29/2014

Source: M. Clements, National Association of Farm Broadcasters

Audio with Jim Michael, President of Alliance Power Inc. (MP3 4.5 MB). Download Windows Media Player. Time: 00:03:16.

Wind energy is paying dividends for rural economies. A recent project in Colorado is proving beneficial to the community by adding economic input. In December 2012, the Colorado Highlands Wind Project began commercial operation. In October 2013, the project expanded, increasing the facility's capacity to 90 megawatts. The facility employs six to seven full-time operating technicians, but the economic benefits to the county extend beyond that. Jim Michael, managing member of the project, says the benefits start with the price of electricity.

"The real incentive behind the wind project was cheap electricity. Wind has really come down over the last five years or so in terms of its cost. The towers have gotten taller, and the blades have gotten longer. So it's a great buy for the utilities in a sense that it's really the cheapest energy out there besides perhaps hydro. It really helps to stabilize the electric rate."

As for landowners, they see a monetary benefit. Michael says they have roughly 20 landowners in the wind project. The benefit they receive will also help the community.

"The general rule of thumb in Colorado is that those types of leases, for putting wind towers on their property, is they're receiving about 2% of the gross revenues of the project. So over 20 years, to put that into a real perspective, that's over $10 million that are going to be paid out annually, distributed over those 20 years to those local landowners. I know once the project became operational, a lot of folks out there, they were getting new pickup trucks, a couple of the wives said that they were going to get their kitchens remodeled. That's all local business. It makes a real impact on the community."

Michael says they are hoping to expand.

"We'd like to do more, we're working with Tri-State and the member districts. You know, it's about being competitive, it's a very competitive business. It's low cost, that's what the utility is looking for and a strong financial partner. And we continue to look at opportunities to see what we can do to expand and provide more wind energy to Tri-State."

As for the critics of wind energy subsidies, he says:

"You know, I've done coal plants, I've done natural gas plants, and I've also done wind. Certainly subsidies have helped to develop the initial industry as it's moved ahead, and it's getting more and more competitive. What I'd like to see is a level playing field. I certainly know that there's subsidies that are provided to coal and to oil and to gas. Certainly there's a subsidy to wind. If we're going to compete, we all need to compete fairly. But certainly wind is getting more and more competitive every day. I can see in the future, I believe those subsidies won't be needed. But I think it's a good investment today, to make that energy independence we're all looking for."

Researchers at the National Renewable Energy Laboratory analyzed the economic impact of 1,000 megawatts of wind power development in Colorado. They found that it supports approximately 300 permanent jobs in rural Colorado areas with a total annual payroll of $14.7 million, generates $4.6 million in annual property taxes, and generates more than $2.5 million annually in extra income for farmers and ranchers who lease their land to developers.

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