Saturday, April 10, 2010

Noble scraps plans for second wind farm

CHATEAUGAY — Noble Environmental Power has abandoned its plan to build a second wind farm in Chateaugay.

“We got a letter from Noble, saying they are discontinuing with Chateaugay II,” Town Supervisor Donald Bilow said Wednesday. “It’s because of the market.

“I know the price of power is very low, and I think that’s the main reason.”

COSTS ‘NOT JUSTIFIED’

The town received the letter Tuesday, which also includes an announcement on the cancellation of a 100.5-megawatt Noble Alleghany Wind Park project in western New York.

The company, which operates 71 towers at the Chateaugay I Wind Park, planned to build 13 more towers in Chateaugay to produce 19.5 megawatts of electricity for sale on the state power grid.

But after review of anticipated construction costs and factoring in continued payouts to easement holders and poor rates on power-production credits from the New York State Energy Research and Development Authority, “Noble has concluded that the ongoing carrying costs are not justified,” the letter states.

LOSS TO LANDOWNERS

The cancelation of the project affects not only the town but numerous landowners who had contracts with Noble.

Steven Carter said his family farm was looking forward to the extra cash that wind-farm easements would bring.

“It was only going to be 14 towers, but everybody here wanted it. But with electricity, the wholesale price dropped. It’s so cheap now.

“This (project) was something good, not just for the people who were going to have the easements. Everybody benefited from the lower taxes. The land and school taxes had dropped, so there were benefits to them.

“We really could’ve used them,” he said of the Chateaugay II towers. “But that’s the way it goes for dairy farmers. It’s not often they give us something up here, and now they snatch it away. “We will still get the lower taxes from the (Chateaugay I towers) Noble still has, but this would have been a little more,” Carter said.

“They don’t improve the skyline any, but (wind towers) sure help people with their taxes.”

BELLMONT SUSPENDED

The company says it is maintaining its development plans for 14 wind-energy towers at Noble Bellmont Windpark, but construction there is suspended until the economy improves.

“We continue to assess our development portfolio,” said Noble Chief Executive Officer Walter Howard, but the company is redirecting its focus from New York to projects in New Hampshire, Minnesota, Pennsylvania, Maine and Texas.

Bilow said he was not surprised by the news, given the uncertainty of the global economy.

And because of that, the Town Council has been very cautious in its plans and expansion into wind-energy projects all along.

“I never anticipate anything until I see it,” the supervisor said. “We’ve moved slow on this.”

APRIL 6 MEETING

He said the topic will likely be discussed at the town’s next regular meeting on April 26.

Noble generates 612 megawatts of wind power in New York including 97.5 megawatts at Noble Altona Windpark, 100.5 at the Noble Clinton Windpark and 81 megawatts at the Noble Ellenburg Windpark.

No comments: