Mr. Stinson & Mr. Craig:
Why do you insist on repeating what you must know -- if you have done any serious analysis - is a false statement about Iberdrola proposed "investment" in wind energy. I'm referring specifically to your statement in today's article that:
"At stake are $2 billion in upstate investment, New York's reputation as a place to do business and what might happen to the fourth-highest residential electricity rates in the nation." (emphasis added).
If you have looked seriously at wind energy, you would know that spending $2 billion on one or more "wind farms" in upstate NY does NOT equal "$2 billion in upstate investment" for some very simple to understand reasons:
1. First, at least 75% of the $2 billion would be spent for turbines, blades, towers and other equipment that is not made in NY and much of it probably would be imported. That means about $1.5 billion of the $2 billion would be "invested" elsewhere.
2. Second, of the remaining part of the $2 billion, very little would actually count as an "investment in upstate NY." Consider, for example:
a. The payments of compensation to workers. Most of those workers will be from outside "upstate NY" because most of the work in assembling turbines and other equipment is performed by specialists who are brought in temporarily and who would spend only a small portion of their compensation IN upstate NY. Most would be spent in their home towns and they would be paying their income tax in their home states.
b. Few of the materials and supplies used in constructing the "wind farm" would be purchased locally and for the portion that is procured locally, only the local value added portion would make a positive contribution to the economy in upstate NY.
c. Even the rental payments made to landowners would make a positive contribution to the local economy if the money is spent, saved, or invested locally by the landowners. There would be little if any positive contribution to the local economy if the rental payments are received by absentee landlords or if the landowners spend or invest the rent money elsewhere.
Clearly, you have fallen for the false claims about favorable economic impact made by the wind industry and by state government agencies (e.g., NYSERDA) that have failed to understand the facts.
You should also understand that the principal reasons NY is NOT considered a favorable place to do business is because of (a) high taxes, (b) high electricity prices, and (c) the fact that local economies in upstate and western NY are being bled dry -- particularly by (a) and (b) -- so that citizens have little disposable income left to spend locally.
I'm attaching for you once more an analysis of the Iberdrola proposal that should help you understand the economic facts about the planned "investment" in "wind farms."
The lack of understand of elementary economics reflected in your statement quoted above is astounding -- not to mention a disservice to your readers!
Glenn R. Schleede (former western New Yorker)
18220 Turnberry Drive
Round Hill, VA 20141-2574
540-338-9958
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