Saturday, December 13, 2014
The fight is on, again, over which tax credits will make the cut in this latest round of extender bills. The House of Representatives just passed HR 5771 which revives dozens of lapsed tax credits totaling $42 billion, including the controversial wind production tax credit (PTC) that expired last year. If approved by the Senate, HR 5771 will reinstate the 22-year old 'temporary' subsidy retroactively for 2014.
Wind proponents argue the 1-year extension is akin to no extension at all. They paint a dire economic picture of curtailed project development, lost jobs and the unraveling of an entire manufacturing sector. A failure to extend the PTC, they claim, will effectively impose an unfair tax on the industry in the form of higher wind prices. Those who oppose the credit are collectively dismissed as Koch-brother sympathizers, a narrative that has worked short term -- after all, it's easy to hate big oil. But the label is flatly false.
The Grassroots Speak
Leading up to the House vote, a grassroots network of thousands (and thousands!) of Americans nationwide quietly signed letters to Congress asking their representatives, and the leadership, to vote 'no' on any extension of the wind PTC. The signers, all regular, main street Americans impacted by the subsidy-driven push for more wind everywhere, hope their voices will be heard past the slick wind-marketing campaigns and paid mouthpieces with access.
They tell a different story as reflected in these excerpts from the letters sent:
Indiana: "Most of the [nearly 3000] Hoosiers who have signed this letter are directly threatened by the choice you will make. We live in the communities impacted by wind development. Many of our local elected officials have passed restrictive ordinances that effectively ban wind development due to the harms to our local economies, property values, health, wildlife and employment. The PTC encourages wind development in inappropriate places – it has fostered a generation of developers who are rewarded for siting turbines on every free acre that has transmission access, no matter who is in the way or how poor the wind resource."
Ohio: "The Production Tax Credit for wind “energy” serves only one purpose: tax avoidance. Wind is subprime power foisted upon rural communities by a predatory industry. Wind will not reduce the country’s carbon footprint. It will not power our factories. It is highly disruptive to the landscape we cherish. It is about tax avoidance – pure and simple. The burden of wind’s costs falls most heavily on those who can least afford to pay.... The signers of this letter are citizens –volunteers not funded by any organization. We are mothers and fathers. We are ratepayers and taxpayers. Unlike [Jonathan] Gruber’s acquiescent Americans, too dumb to understand the ACA, we understand wind energy. We understand it is little more than a dressed up bit of crony capitalism and support comes only at our expense. Speaker Boehner, please help to stop it. Don’t make us continue to pay for it. "
Texas: There is significant concern about the impact of wind energy subsidies on other sources of generation in Texas. ... Your active involvement in helping end the unjustifiable PTC for industrial wind energy is appreciated.
And for New Hampshire, Nebraska, Alabama and other states: "Renewing the PTC would cost billions that our nation simply cannot afford and the negative impacts on our communities, our scenic beauty and wildlife are significant."
Given the vigor in which proponents are pushing for another PTC extension, it's unrealistic to believe the wind industry can survive without the subsidy. Big wind grew up on the tax credit, developed market plans and forecasts that relied on it, and now the wind PTC appears to be a required component of the industry's economics. Warren Buffet recently reminded us that wind investment makes no sense without handouts from taxpayers.
The consequences back home of more federal subsidies for big wind are real. After more than two decades, it's time Congress learns what the public already knows and heeds the plea to pull the plug on this endless subsidy once and for all.
Linowes is executive director of the Windaction Group (windaction.org), an organization that opposes the wind power industry.
Thursday, December 11, 2014
Wednesday, December 10, 2014
Sun Edison Buying First Wind Scam
Most people know very little about the true economics in the solar and wind industry. Even less understand the cryptic disclosures in an SEC filing of reports from FERC. Yet the financial inventors are brilliant in concealing the simple business model that is supposed to generate earning from real economic activity. Let’s be generous and report on the public relations announcement, 5 Slides That Show Why SunEdison Bought First Wind. Reading such glowing projections might attract investors into the SunEdison, TerraForm Power Up Solar ETFs.
“SunEdison is among the largest holdings in both the Guggenheim Solar ETFs (TAN ) and the Market Vectors Solar ETF (KWT ), which climbed 5.1% and 3.8% respectively.
These two solar ETFs are alone in giving meaningful weight to TerraForm, SunEdison’s partner “yieldco” that went public in July, according to research firm XTF.”
Are you ready for some government and private sector newspeak? Note the following appears on the website of NREL - a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. - A Deeper Look into Yieldco Structuring.
“A yieldco is a dividend growth-oriented public company, created by a parent company (e.g., SunEdison), that bundles renewable and/or conventional long-term contracted operating assets in order to generate predictable cash flows. Yieldcos allocate cash available for distribution (CAFD) each year or quarter to shareholders in the form of dividends. This investment can be attractive to shareholders because they can expect low-risk returns (or yields) that are projected to increase over time.”
Surely you got that these “yieldco” are even better than derivatives, RIGHT???
Before you call your broker, review a recent edition of the BATR RealPolitik Newsletter on the topic - Another Green Energy Fraud. When Bloomberg announces that SunEdison, TerraForm to Acquire First Wind for $2.4 Billion, they are not disclosing the entire story.
“Expected to close in the first quarter, the purchase will consist of a $1.9 billion upfront payment and $510 million dependent on First Wind completing backlog projects.
TerraForm will add 521 megawatts of First Wind projects to its portfolio under the deal, with 1.6 gigawatts of projects expected to be developed by SunEdison and dropped down into TerraForm in 2016 and 2017, the companies said in the statement.”
The sorted history of First Wind strikes a record of questionable financial dealing, concealed debt obligations, flipping LLC ownership and holding company discrepancies. It came as no surprise that First Winds bizarre attempt to sell off their self proclaimed core projects fell flat. A local Bangor Maine newspaper has taken the lead on real investigative reporting. First Wind sale means end of $333 million partnership with Emera is but one in a series of damaging evidence on the shady business practices of First Wind.
“Ending a partnership challenged twice before state regulators and in court, Nova Scotia-based Emera has sold its interest in a $333 million joint venture with First Wind, which was purchased Monday by a Missouri-based renewable power developer.
Emera announced Monday that it has agreed to sell its interest in Northeast Wind Partners back to First Wind for $223 million.
The deal would end a legal challenge to that partnership, which Houlton Water Co. and a group representing industrial power users argued violated the intent of New England’s deregulation of its electricity market. But that money may be directed at other power generation resources in the region after the completion of the larger deal between First Wind and SunEdison subsidiary TerraForm Power.”
Ask yourself, why would a newly capitalized company want to acquire a debt ridden albatross like First Wind? When SunEdison Spin-Off TerraForm Power Scores Hot IPO came to market, a smell of a Wall Street bailout using another shell public company reeks. Since First Wind failed in their own IPO offering, just maybe a careful examination into the filings of these companies is warranted.
“TerraForm Power Inc. (NASDAQ: TERP), another spin-off from SunEdison Inc. (NYSE: SUNE), offered 20.1 million shares and raised about $500 million in its IPO, valuing the company at around $2.4 billion. SunEdison will retain nearly 95% of the voting power in the company. The IPO’s underwriters have a 30-day option on another 3 million shares.”
Next review the SECURITIES AND EXCHANGE COMMISSION Forum K-8 #001-36542 for TERRAFORM POWER, INC. and check out the full company description on TERRAFORM POWER, INC. (TERP) IPO.
Selling shares of public companies to pension funds for eventual shorting from the house accounts of underwriting firms is a favorite strategy that if caught, only gets a slap on the wrist.
The lack of disclosure of ALL the debt for projects that cannot even satisfy minimum interest payments must less retiring the actual obligations, is indicative of an industry that is based upon fraud and uncompetitive costs.
Wind proponents want you to believe that Wind Power Forecasting in U.S. Electricity Markets are based upon true figures of literal production that goes into the grid for actual consumer use. Nothing could be further from the truth. Sun Edison is no virgin to the mega corporation ownership game. Having started in 1959 as the Monsanto Electronic Materials Company, a business unit of Monsanto Company, their SEC filing is a wealth of information on connections to the usual suspects behind the renewable energy Wall Street schemes.
Renewal Energy World explains, SunEdison Launches Yieldco to Unearth, Leverage Solar Asset Values, and sure sounds like a lot of financial trickery.
“Here's why SunEdison and the rest of the industry is so keen to pursue new finance options. Back in its 3Q13 financial results SunEdison calculated its current business model of building and selling solar projects yields about $0.74/Watt -- but those assets' true value could jump as high as $1.97/W if the company can find ways to enumerate and apply various methods: lower the cost of capital, apply various underwriting assumptions, and factor in residual value in power purchase agreements. That's a startling 2.6× increase in potential value creation that SunEdison thinks it can unlock, and creating a yieldco structure to attract interest from the broader investor community is a big part of the answer.”
Birds of a feather flock together and care nothing about all the fowl kill is a bad deal for investors and electric rate payers.
James Hall – December 10, 2014
Wednesday, December 03, 2014
Even the Loony Left understands that the PTC extenders is a bad deal . . .
I just told the Senate Democrats to not cut any tax cuts that help big businesses, hurt working families, and expand the deficit paving the way for more devastating cuts.
I think you should too!
I think you should too!
Help knock the wind out of lobbyists. Tell Congress to #EndWindWelfare
“Help knock the wind out of lobbyists. Tell Congress to #EndWindWelfare http://bit.ly/11yXQNk pic.twitter.com/HW9AKwV7Un http://thndr.it/1zARubo”
It's that time of year again. Now that our Congressmen think they're safe from electoral consequences, wind industry lobbyists are aggressively pushing to revive their favorite subsidy, the wind production tax credit (PTC).
The PTC is a key part of President Obama and Majority Leader Reid's attack on affordable energy, from natural gas and coal to nuclear power - an attack that will prove costly for hard-working Americans. Our legislators need to know you oppose subsidies for special interests like industrialized wind.
Two more years of these wind subsidies would cost American families over $13.3 billion. If Big Wind gets its way and makes these subsidies permanent, that $13.3 billion will be coming out of your pockets for years to come.
Thursday, November 20, 2014
BATR RealPolitik Newsletter - Another Green Energy Fraud - November 20, 2014
Tuesday, November 18, 2014
Thursday, November 13, 2014
Negative health impact of noise from industrial wind turbines: The evidence
Thursday, September 11, 2014
Allegany wind project officially dead
Close to eight years of legal battles, community upsets and neighbors bickering with neighbors over a proposed 29-turbine wind project in the town of Allegany came to an end Tuesday.
The final nail in the coffin of the proposed EverPower Wind LLC project in the Chipmonk and Knapp Creek areas was hammered when the Allegany Town Board unanimously voted to rescind the wind overlay district.
“It’s been a long time coming, and I’m glad this is over,” said Chipmonk resident Karen Mosman after the meeting. “But I’m in shock — is it real?”
The vote came at the beginning of Tuesday’s regular meeting in the Allegany Senior Center on Birch Run Road. The room was three-quarters full of residents who sat quietly as Town Supervisor John Hare read through a 25-page State Environmental Quality Review form and zoning map amendment to rescind the wind overlay district. The form listed a number of issues that will not be affected by rescinding the overlay district, such as geological features, air, plants and animals, agricultural resources, aesthetic resources, transportation, energy and human health. The board agreed with each of the 13 issues reviewed before voting unanimously on a “negative declaration regarding the removal of the wind overlay district.”
The action brought applause from the audience.
The board then voted unanimously on another motion to adopt an ordinance that rescinds the wind overlay district created by town board members on Aug. 29, 2011, which brought another round of applause.
When an older member of the audience asked Mr. Hare to explain exactly what had transpired the town supervisor replied, “Basically by the two actions we took tonight, this rolls back or eliminates the overlay district created approximately three years ago.”
“Thank you very much,” responded a woman in the audience before everyone got up to leave.
The board was asked to decide on the matter in June after the Allegany Town Planning Board recommended that the wind energy overlay district be rescinded. Their recommendation came three months after the New York State Supreme Court dismissed an appeal filed by EverPower against the planning board.
Following the dismissal, EverPower relinquished its rights to build a wind farm in the town of Allegany. The company had planned to build the $160 million wind farm after it was given the go-ahead for the project by the previous town board. The project fell through after three years of legal struggles with the town and Concerned Citizens of Cattaraugus County.
Residents who included Kathy Boser, president of Concerned Citizens, wanted to see the overlay district rescinded because the planning board had indicated that another developer could potentially step in and use the zoned parcel for a new wind-turbine project.
Following the meeting, Mrs. Boser said she and others in the community were grateful for the actions of the town and planning boards.
“Now that it’s rescinded, any (wind company) could come back in, but they’d have to start over again,” she said. “I think there were some lessons learned from this one and I think the boards will be better prepared.”
Concerned Citizens member Gary Abraham agreed with this thought and declared, “It’s over for any (proposed) wind farm in Allegany.”
Allegany resident and businessman Dennis Casey said he was “thrilled” with the outcome.
“We’ve had time to anticipate this,” he said in commenting on the relatively quiet response from the audience during the vote.
Others who commented included Mrs. Mosman’s husband, Ray, who said he hopes the action will help the community heal.
“I think this is done; it’s been a long haul and a heck of a burden off our shoulders,” Mr. Mosman said. “But I think now is a time of healing, because this made enemies out of friends.”
Thursday, September 04, 2014
Friday, August 29, 2014
Saturday, August 23, 2014
New lawsuit filed in Orangeville
A group of about 60 town residents has filed a $40 million lawsuit against the Invenergy wind energy company.
The State Supreme Court suit was filed Aug. 1 in Wyoming County. Invenergy operates the Orangeville Wind Farm within the town.
The suit alleges “constant noise, vibrations and flicker” significantly impacted the plaintiff’s health and well-being, causing sickness, soreness, lameness and disability.
It also accuses Invenergy of diminishing the plaintiffs’ property values, creating noise pollution, and regularly violating the town’s 50-decibel noise ordinance.
The suit asks for $20 million for personal injuries, lost quality of life, and a loss in property value. It also asks for $20 million in punitive damages, compensation for court costs, and any other relief the court deems necessary.
Invenergy said in a statement issued Thursday that it will vigorously defend itself against what it described as unfounded claims.
“While support for renewable energy is strong across our country, we take seriously any concerns of those who live in a project host community,” the statement reads. “That is why we took great care in developing the Orangeville wind farm in accordance with all local, state, and federal laws and regulations. The lengthy authorization process was open and inclusive, allowing extensive opportunity for citizen input.
“In addition, since the Orangeville wind farm commenced commercial operation, the facility has been operated and maintained in accordance with all applicable laws and regulations, including local zoning laws, relevant state agency directives, and Federal Aviation Administration requirements.”
This is not the first time legal action has occurred involving the wind farm.
The Clear Skies Over Orangeville group twice sued the Town of Orangeville unsuccessfully in 2010 and 2012. The lawsuits were dismissed each time.
Property owner Robert White also filed a suit in 2011, which said a proposed turbine tower was too close to his hunting cabin off Bantam Road. He was successful, and a special use permit and site plan approvals for the tower were nullified.
Many of the plaintiffs in the lawsuit are couples, representing about 25 different addresses within the town. The plaintiffs include several affiliated with CSOO.
The Orangeville Wind Farm has 58 turbines. Each is about 430 feet tall. Commercial operations began in March.
Thursday, July 24, 2014
After legal challenge, Maine utility regulators again OK $333 million partnership between Emera, First Wind
First Wind Holdings Inc. IPO public offering
Why the SEC should not allow First Wind to be listed on NASDAQ
after Wall Street no confidence in company
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Risks of Industrial Wind Turbines is a group of citizens and organizations dedicated to preserve the public safety, property values, economic viability, environmental integrity and quality of life of residents and future generations.