The fundamental purpose of allowing any Wind Power Project within the jurisdiction of the Town of Cohocton should and must achieve a genuine public benefit. The corporate model of 95% for the company and a mere 5% divided up among landholders and municipalities is an offensive formula. The alternative is to examine, consider and approve a business plan that is far superior to accepting the meager pay scheme that is the economic basis of the UPC proposal.
Several C-BED community based energy development projects are currently in operation that provide real and significant benefits to their respective local communities. A brief overview can be reviewed on the website:
http://c-bed.org/overview.html
Benefits of C-BED projects are substantial.
· The financial benefits of ownership stay within the community.
· Financing is typically done with local area banks.
· Compared to out-of-area owners, a higher portion of the construction and operational expenditures stays within the local community and regional area.
· C-BED projects create and support many jobs for union and local contractors, engineers, accountants, lawyers, bankers and main street businesses.
· As a result, significantly more dollars per KWh circulate in the local and regional communities compared to non-C-BED renewable power projects.
This successful business example can resemble a co-operative ownership. No doubt some communities may not want to be responsible for the direct development and operations of a community based project. That certainly can be a valid concern. So the alternative to community based ownership is a community owned private enterprise. Who would you want to own a project that effectively controls your land and risks your economic future? The answer should be clear, don’t trust a faceless corporation financed with foreign capital.
The solution and sensible choice is to encourage and deal with a local venture that would be owned, developed and managed among Western New York investors and residents. One such project is currently being organized in the township of Perry, NY. The Perry Area Wind Energy project offers landowners and residents an opportunity for local participation and meaningful protection from the excess of the Enron bankrupt corporate culture.
Cohocton is faced with dire consequences and adverse risks that are inherent in the flawed UPC business plan. This is the time to take a deep breath and undertake a serious look at other options that offer a far greater return and benefit to the entire community.
From the real world experience of C-BED projects the direct and indirect financial benefits to the local township, landowners and residents can reasonably be estimated at 20-50% of revenues. That is a 4-10 times larger amount then the 5% sum coming out of the UPC corporate proposal.
Common sense and sound business judgment indicates that Cohocton should not settle for crumbs. The income from wind generation is a “Cash Cow” for corporations. Why would our neighbors and friends settle for such a small distribution when a much better deal can be created?
The profit and cash flow from just five community based wind turbines would compensate landholders and the Town of Cohocton the same monetary value as the current 58 proposed units. The corporate plan wants to keep the cream and nearly all of the milk, while our community is left with the fallout of an ill-conceived and unfair revenue sharing scheme.
Let’s get serious! It is a time to be honest with ourselves and everyone else. If the stated goal for approving a wind project is to generate financial revenue for the community and to the municipality, why is the Town of Cohocton selling out our God given natural resources for a nickel on every dollar? We can all do better.
A levelheaded business proposal would provide for the protection of the entire township and all its people. Public safety issues, property value protections, liability safeguards and environmental preservation are all legitimate concerns that are not sufficiently addressed or provided for in the UPC impact DEIS report.
The rational approach is to demand that the lead agency, the Cohocton Planning Board, issue a moratorium while a new Wind Mill Local Law can be re-written. During this period of constructive re-evaluation, other competing business plans should be reviewed, based upon the standard of what best benefits the entire Cohocton community.
Consistent with this approach and based upon the dramatic increase in revenue sharing available from wind generation by a local developer the following proposal is being offered for your consideration.
1. An industrial location would be secured to accommodate a wind turbine project.
2. Serious protective setbacks from residents would be adopted.
3. Revenue sharing percentage would be significantly increased and a formula for dividing dividends from the locally owned project would include every landowner of record in the Town of Cohocton.
The advantage to each and every landholder and property owner is real significant and self-evident. Community opposition to the structural deficiencies in the current proposal could be resolved. Current lessor landholders could be fairly compensated within a sliding scale share from dividend payouts and avoid the ongoing risk of costly litigation and liability damages. The Town of Cohocton would enjoy stable property tax revenue based upon real property value protection as well as a more generous and equitable split from a community project developer.
Why support or approve a corporate wind proposal when you can earn a far greater return under a community based and owned project? Why not include every property owner into a beneficial payout method? Why not protect and preserve the township from the danger of eminent domain, foreign ownership and a fire sale split of revenues?
Cohocton can do better, much better!
James Hall - May 18, 2006
No comments:
Post a Comment