Invenergy
Beech Ridge Wind Farm Update
West Virginia Wind Working Group – September 18, 2007
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Invenergy Wind - Corporate Overview
Developer, owner and operator of large-scale wind powergeneration projects in North America and Europe.
One of the ‘top 5’ wind energy developers in NorthAmerica based on projects over built the last two years.
More than $1.5 billion in wind energyprojects (over 1,000 MW) in operationand late stage construction.
Secured 1,300 MW of wind turbinesfrom GE for 2007 & 2008 build programin the U.S.
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Beech Ridge Wind Farm
Northwestern Greenbrier County
Proposed 186 MW facility
124 GE 1.5 turbines (77 meter rotors)
Key landowner: MeadWestvaco
Target Schedule
PSC Siting Certificate: August 2006
Start Construction: April 2007
Start Operations: December 2007
Expected Output: 570,000,000 kwh/yr
Economic Impacts
$300,000,000 investment
200+ construction jobs
15-20 permanent jobs
$400,000 /yr property taxes
$200,000 / yr B&O taxes
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Beech Ridge Opposition
Anti-Wind
MCRE
CRW
Tourism
The Greenbrier & Sporting Club
Greenbrier Co. CVB
Elected Officials
US Rep. Mollohan
WV Senator Guills
WV Delegate Canterbury
WV Delegate Campbell
Lewisburg Mayor Manchester
Numerous Local Citizen Organizations
Greenbrier River Watershed Association
Williamsburg VFW
Williamsburg Ruritan etc…
Grassroots
2,000+ letters of opposition
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Beech Ridge Supporters
Labor (ACT)
Industry
WV MFA
WV Forestry Association
Environmentalists
Sierra Club
Coal River Mountain Watch
Local Government
Rainelle, Rupert, Quinwood,Richwood
Greenbrier Co. Commissioners
Grassroots
700+ letters of support
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January 2007 PSC Order
Key Finding: Granted Certificate for all 124 turbines
18 Pre-Construction Conditions, including
Compliance with USFWS, DNR, SHPO
Decommissioning
Minimum property tax guaranty
Compliance hearing and affirmative PSC confirmation
11 Post-Construction Conditions, including
3 years of bird and bat studies
Technical Advisory Committee
Mortality Monitoring
Adaptive Management Testing
Minimal lighting
No aerial herbicide spraying
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2005
November – Submitted Application
2006
April – Public Hearings (Fairlea)
May – Evidentiary Hearings
August – PSC Order
2007
January – Final PSC Order (Reconsideration Denied)
February – Supreme Court Appeal
April – Supreme Court Agrees to Hear Appeals
Summer – Supreme Court Briefs
Fall – Supreme Court Hearing
Winter – Supreme Court Decision
WV PSC Permitting Timeline
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Appelees:
Alicia and Jeffrey Eisenbeiss
Mountain Communities for Responsible Energy
Appelants
Public Service Commisssion of West Virginia
Beech Ridge Energy LLC
WV State Building and Construction Trades Council, AFL-CIO
Amicus Curiae
MeadWestvaco Corporation
Tom Vance
Appalachian Power Company
Utility, Telecommunications, and Energy Coalition of West Virginia
West Virginia Oil and Gas Association
West Virginia American Water Company
WV Supreme Court Appeal
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Potential Appeal Outcomes
Application Dismissed
Beech Ridge reapplies
Order Remanded to PSC
New PSC Order
Eligible for reconsideration and appeal
Order Upheld
Pre-Construction Compliance
Eligible for reconsideration and appeal
Invenergy
S.B. 441 –Implications for Wind Energy
West Virginia Wind Working Group – September 18, 2007
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Senate Bill 441:Background
May 2001 Legislation
B&O Taxes
Set “capacity factor” for wind at 5%
Property Taxes
In West Virginia, pollution control equipment istaxed at salvage value – 5% of appraised value.
Classified wind turbines and towers as pollutioncontrol equipment.
Resulted in most of a wind project being valuedat “salvage value”
2006 Sessions
Governor’s Tax Modernization Project
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Business & Occupation Taxes
Applies to Industries Regulated by PSC
Based on nameplate capacity
Base rate of $22.78 per kilowatt
Note: $20.70 rate for coal plants usingdesulfurization technology
Adjusted by legislated “capacity factor”
FuelOld CFNew CF
Coal 40%40%
Wind 5%12%
Peaker5%5%
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Governor’s Original B&O Tax Proposal
Raise B&O Taxable Capacity Factor forwind (and only wind) to 20%
Four times the effective B&O tax burden
$170,000 in additional taxes per 100 MW
Would have resulted in wind paying
50% more per MWh produced than coal-firedelectricity and
300% more per MWh than gas-peaker firedelectricity.
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B&O Taxes under Senate Bill 441
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B&O Taxes under Senate Bill 441
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Property Tax (Old System)
Pollution Control /Salvage Value
(as % of Capital Cost)
Coal = 33%
Wind = 85%
Appraised Value (as % of Capital Cost)
Coal = 69%
Wind = 19%
Assessed Value (60% of Appraised Value)
Coal = 41%
Wind = 12%
Property Tax Burden (per MWh generated)
Coal = $1.96
Wind = $1.65
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Governor’s Property Tax Proposal
Eliminate classification of wind turbinesas pollution control equipment
Raises property tax burden to more thanfive times then current payments
Increases annual property tax burdenapproximately $2,000,000 per 100 MW(20-year average)
Results in wind paying
50% more than coal per dollar of capital cost
400% of what coal pays per MWh produced
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Gov’s Proposal Would Have Made WVUncompetitive with Neighboring States
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Property Taxes Under S.B. 441
Capped percentage of wind facilityassigned salvage value at 79%
Impact varies depending on percent offacility costs originally eligible forsalvage valuation
Should result in wind paying moreproperty taxes per MWh than coal
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Property Taxes Under S.B. 441
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Property Taxes Under S.B. 441
