a. The 1.42% "system benefit charge" (the "tax" imposed by the NYS PSC) that is added to the electric bills for customers of all NY investor-owned utilities -- the proceeds of which flow to NYSERDA and is then handed off to others (i.e., subsidies). That's the source of the $295 million that your Governor, NYSERDA and NYS PSC. on April 19, 2007, promised to 9 "wind farm" owners and a few small hydro and biomass producers.) (See Attached paper for details.)
b. The added costs you pay via your federal and state income tax bills because the federal and state governments have decided to give "wind farm" owners huge tax breaks -- which breaks mean that the tax burden escaped by "wind farm" owners is shifted to ordinary taxpayers who don't enjoy the tax shelters enjoyed by "wind farm" owners. The three principal tax breaks are:
1. The Federal Production Tax Credit of $0.02 per kilowatt-hour of electricity produced during the first 10 years of the project's operation.
2. Five-year accelerated depreciation deduction from income subject to federal corporate income taxes.
3. The deduction in #2 above "flows through" and results in lower state corporate income taxes.
Again, see attached paper for details.
c. There are other costs that DO flow through your electricity bill but they may be too complex for your presentation to your town board. These added costs are due to the intermittence, volatility and unreliability of electricity from wind turbines. Examples include the cost of providing reliable generation backup, reduced efficiency for the backup generation unit because it is running at less than full capacity, added burden of grid management. These parts of the true costs are, in effect, hidden in your electric bill.
No comments:
Post a Comment