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So Called Expert Says The 24.4 Cent Rate For Wind Power is High But… March 13, 2010

Posted by truthspew in Uncategorized.
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Ok, so first this:

WARWICK — An energy consultant stood by his assertion that the price of power from an offshore wind farm proposed off Block Island is high, but he acknowledged Friday that the state Public Utilities Commission may consider long-term economic benefits from the project when it assesses the price.

“If you just look at the price in isolation, [it] is high compared to other [renewable-energy] projects,” said Hahn, a principal consultant with Boston-based La Capra Associates. “If that’s all you’re looking at, it would appear to be a high price. But there’s the potential for other economic benefits for the state. If you think those economic benefits are worth the price, you can conclude the price is commercially reasonable.”

The whole article is here.

No kidding it’s high. Look at the spreadsheet below. It compares the propose rate of 24.4 cents per KWh based on a 500KWh usage. I also show the standard rate from National Grid which includes the transmission and distribution charges.

Then over time I apply a 3.5% increase to each (wind and NG) because surprisingly the increases National Grid gets are about 3 or 4% on electric trates.

I don’t buy for a moment Hahn’s theory that it’ll be an economic boon to RI. They won’t manufacture shit here, it’ll all be farmed out to China and India.

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Comments»

1. Todd Hellskitchen - March 14, 2010

Pretty much all legislation these days must include the words “all work must be done using US workers in the US”… Otherwise, our economy is sunk…

2. Tom - March 15, 2010

Just stumbled on your blog… love it… “I’ll beee Baaaach”!

Tom


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