DOC PREVIEW
UVM PA 395 - Public Revenue from Wind Farms

This preview shows page 1-2 out of 6 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 6 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 6 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 6 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

Public Revenue from Wind FarmsCurrent Public RevenuesPotential Public RevenueProposed GuidelinesEstimates for DiscussionConclusionPublic Revenue from Wind FarmsMay 2008Susan SkalkaCurrent Public RevenuesPpty Taxes:Determined by municipality, no standard calculation$153,995 to Searsburg in 2001, PPM offered $240,000 for proposed expansionSheffield will pay $520,000 annually to mitigation fund, ppty taxesH.520, Sec. 5402c: Fee based on production $0.00225 in fiscal year 2009$0.0025 in fiscal year 2010$0.003 in fiscal year 2011 and thereafterPotential Public Revenue Capture economic rent on profits created not by producers, but by nature and the marketDifferent fiscal structures could be usedEconomic analysis by energy economist would be needed to determine which would work bestWould need to not discourage production of wind energyInstead of taxing production (which is a cost), take portion of economic rent (not a cost) Revenue could go into a fundFund management would need to be discussedProposed Guidelines•Progressive Profit Tax•Percent of royalties taken increases as profits increase•Fiscal Structure should take into account age of facility:• New and older facilities have smaller percentage, those in their prime have highest percentEstimates for Discussionhttp://www.revermont.org/windfarm_benefits.pdf*http://sciencepolicy.colorado.edu/moveabletype/mt-comments.cgi?entry_id=850**2002 Study*: VT could produce 10% of electric energy from 6 wind-farms,with about 150 1.5 MW wind turbines = 225MW totalVermont Net generation: 7,084,344MWH/year (EIA) x 10% = 708,434.4MWH/yr=708,434,400 KWH/yrCheck:225,000 kW x 24hrs/day x 365 days=1,971,000,000 KWH/yrx .35 (capacity factor) = 689,850,000kwh/yrX * 5.6 cents per kWh est. cost * = $38,631,600Assume 6.6 cents per kwh* selling price** x 689,850,000kwh/yr= $45,530,100 - $38,631,600 = $6,898,500.00 Assume 10.6 cents per kwh* selling price** x 689,850,000kwh/yr= $73,124,100 - $38,631,600 = $34,492,500Assume 30.6 cents per kwh* selling price** x 689,850,000kwh/yr = $211,094,100 - $38,631,600 = $172,462,500Conclusion Vermont should complete an analysis and be prepared to share profits/ economic rent with wind industry as profits from wind-produced power grow due to factors other than work put in by wind


View Full Document

UVM PA 395 - Public Revenue from Wind Farms

Documents in this Course
Load more
Download Public Revenue from Wind Farms
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Public Revenue from Wind Farms and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Public Revenue from Wind Farms 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?