Thursday, September 13, 2012

Shock: Wind turbine project was supposed to be profitable, but it's not

Electricity rate among highest in state
In 2011, Princeton residents’ electric rates were 36 percent higher than the average rate in Massachusetts. The average PMLD customer using approximately 800 kilowatts per hour of energy a month paid $516 more for electricity in 2011 than the average Massachusetts customer paid.

In 2011, the wind turbine project lost $628,000. From Jan. 1, 2010 through June 20, 2012, the wind turbine project has lost $1,875,000. That is after credits for renewable energy production.

Original projections for the wind turbine project showed that Princeton residents would receive a financial advantage, wrote Allen. “In fact, Princeton residents have suffered a financial loss. The original projections overstated both the kilowatt hours produced, as well as the price of electricity and understated the expenses associated with the project.
Allen expects the wind turbine losses to continue at the rate of approximately $600,000 a year, assuming current wholesale electricity rates, no need for extraordinary repair and that both wind turbines continue operating. If any major repairs are needed that would mean additional expense. The original warranties on the turbines have expired and extended warranty options are not available.  [Hat tip:  JP]

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