Second Chateaugay wind farm canceled

CHATEAUGAY — Citing low energy production, Noble Environmental Power has abandoned its plan to build a second wind farm in Chateaugay.

The town of Chateaugay received a letter from Noble on Tuesday confirming the cancellation. The letter includes an announcement on Noble Bellmont Windpark. Noble will maintain development plans for 14 wind turbines there, but construction is suspended until "the economy improves."

"This is a financial abuse on taxpayers of the state of New York," said Dinah Miller of Churbusco, who fought against Noble in public hearings when the company first explored locating in the north country. "These wind turbines were paid for with federal and state tax credits."

Noble operates 71 towers at the Chateaugay I Wind Park and planned to build 13 more towers in a second park to produce 19.5 megawatts of electricity for sale on the state power grid.

Jack Sullivan, a Malone town councilman, has spoken against wind projects in the area and voted against Noble entering the town, saying he felt the wind turbines are not cost-effective.

"None of the projects in Clinton, Chateaugay, Ellenburg and Bellmont can pay for themselves without government subsidies," he said. "Most of the wind farms east of the Mississippi are in areas where wind speeds are too low."

Mr. Sullivan said Chateaugay's output for 2009 was 184,000 megawatt hours.

"That is not good," he said. "Those turbines are running at 19.7 percent of their capacity." When Noble addressed Malone's town board, according to Mr. Sullivan, the company claimed the turbines would run at 30 percent to 35 percent of their capacity.

The 71-tower wind farm has grossed $5.66 million in profit, but the park cost $212 million to build.

Noble's news release said it conducted a thorough one-year analysis of Chateaugay II Wind Park's anticipated construction costs, payouts to easement holders and poor rates on power production credits from the New York State Energy Research and Development Authority. It concluded that the ongoing carrying costs are not justified.

The cancellation of the project affects not only the town but numerous landowners who had contracts with Noble. Noble notified the project's landowners so they can contract their land with other wind developers if they wish to.

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