Bob Strasburg letter to the Wayland/Cohocton School Board

Robert C. Strasburg II
60 Maple Ave.
Cohocton, New York 14826
Email rcs2nd@frontiernet.net
Phone 585-384-9318
Cell 585-703-1299
Fax 585-384-9318

November 27, 2006

Wayland Cohocton School Board
Wayland Cohocton School District
Wayland, NY 14572

Re: PILOT PROGRAM FOR UPC WIND PROJECT CURRENTLY UNDER NEGOTIATIONS WITH STEUBEN COUNTY INDUSTRIAL DEVELOPMENT AGENCY (SCIDA)

Dear School Board Member:

I am writing this letter to voice my strongest objection to any consideration by Wayland Cohocton School District to consider participating in the proposed P.I.L.O.T. program currently being negotiated through SCIDA. I am all for green energy programs that are properly administered in any Host community. I have done considerable research concerning the specifics of this UPC wind program and have discovered it to be nothing short of desperately wanting as a credible and responsible program.

Focusing specifically on the finances of the issue in this letter, I will provide some of the information I have discovered to remove the fallacy that UPC is in need of any subsidies in the form of a P.I.L.O.T. program. UPC is a Limited Liability Corporation composed of unknown investors seeking to reap huge profits in the wind energy industry.

Just the sale of electricity, not including the accelerated depreciation which amounts to millions of additional dollars, will produce $394,200 per turbine x 50 proposed turbines = $19,710,000.00 for the first two phases of the project proposed in Cohocton. This is based on the following formula from the facts I have uncovered thus far and these numbers can be confirmed through SCIDA:

1. UPC as best as I can determine will sell each Kilowatt of electricity produced from each turbine for .04 per Kilowatt hour.
2. N.Y.S.E.R.D.A. will provide an addition .02 per Kilowatt hour as a tax supported subsidy
3. Each Turbine has a 2.5 Megawatts capacity
4. UPC is projecting a 30% output of each turbines rated capacity due to the fact that the wind does not blow all the time.
5. UPC is currently proposing 50 turbines in Cohocton
6. 2.5 Megawatt Turbine reduced to 30% capacity = .75 Megawatts of potential output per hour
7. Each Megawatt is 1000 Kilowatts

.75 x 1000 = 750 kilowatts per hour x 24 hours in a day = 18,000 kilowatts x 365 days per year = 6,570,000 kilowatts per year x .06 per kilowatt = $394,200 per turbine per year x 50 turbines = $19,710,000.00 per year just on Phase one and two of the proposed project.

According to the attached release from SCIDA, they are currently negotiating the P.I.L.O.T. program to pay out only $500 per megawatt for the first year. This is $62,500.00 for the first year ($500 per megawatt x 2.5 Megawatts per turbine = $1250 per turbine x 50 turbines = $62,500). This $62,500 will then need to be divided amongst the Town, the County, and the School. This $62,500 represents only 3/10ths of 1 percent of the projected annual income just from the sale of the electricity. THIS IS A SCAM IN MY BOOK!

I respectfully urge you to due all you can to stop this abuse of us as taxpayers and demand that this profit seeking corporation pay FULL INDUSTRIAL TAXATION for each turbine it puts up. I am not against profit for corporations, but I am against us taxpayers subsidizing private corporate profits at this absurd level.

Sincerely,

Robert C. Strasburg II