Tax credit will benefit wind power

Included in economic stimulus package signed by President Bush on Saturday.
The generation of wind-powered electricity got a big boost Saturday when President Bush signed into law an economic stimulus
package that included a two-year extension of the Federal Production Tax Credit.

By MARTIN J. KIDSTON, IR Staff Writer – 03/13/02

The extension of the PTC removes a big hurdle to private energy contractors looking to harness the wind in a quest to provide a
clean and affordable method of power generation in the state.
The PTC provides low-cost incentives for the development of wind-generated power for the next two years. Originally introduced
through the Energy Policy Act of 1992, the PTC grants 1.7 cents per kilowatt-hour for the first ten years of operation of a wind plant.

With 116,000 megawatts of power-generating potential in Montana, energy experts believe the state’s wind resources could
theoretically meet 15 percent of the nation’s electrical needs.
But while the state’s ability to tap the wind remains in its infancy, the extension of the PTC may help wind projects figure
prominently in the future of the state’s power market.
A joint project between the Blackfeet Tribal Corporation and SeaWest Windpower to build 50 megawatts of power on the Blackfeet
Reservation is being explored, according to the Montana Environmental Information Center.
Montana Wind Harness is also looking to establish a 150-megawatt project within the state, and Nordex U.S.A. continues to explore
placing its North American manufacturing facility in Montana.
Jim Karkulis, founder of Montana Wind Harness, said that without the PTC, wind generation projects like that planned by his
company would not be able to go forward.
“Our congressional delegation actually had a lot of input on the PTC extension, and they worked extremely hard in accelerating
the timetable to get it extended,” Karkulis said. “It allows a much higher comfort level for our project. We’re real happy.”
Karkulis said the extension of the PTC could also help Nordex with its decision on whether or not to move its manufacturing facility
to the state. With the tax credit in place, Karkulis said, there is a degree of predictability that investments into wind power will grow
throughout the U.S.
Bill Lombardi, spokesman for Sen. Max Baucus, D-Mont., said Baucus promoted the extension of the PTC.
“This will extend the tax credit for two years,” Lombardi said. “It will really help with wind energy in Montana and help the state’s
economy by creating jobs and boosting energy production.”
In a conference call Tuesday, Sen. Conrad Burns, R-Mont., touted the PTC as an important part of the president’s stimulus
package.
“The renewables have the support of Congress,” Burns said, adding that he would support extending the wind tax credit for up to
five years.
Still, Burns said, it was important to explore opening Montana’s Rocky Mountain Front to drilling.
“It’s in the national interest to tap into those reserves and do it in an environmentally friendly way,” Burns said. “The environmental
impact is very, very small. We’ve got to start thinking about this country right now.”
Burns said it was in the nation’s best interest to investigate the energy reserves hidden under the Rocky Mountain Front.
“To say we can’t get those because of suggested damage to the landscape is not a solid argument,” said Burns. “Energy security is
economic security is national security.”
Lombardi said Bush’s stimulus package also included incentives for investments on Indian reservations as well as oil and gas
production on marginal wells.
The president’s economic stimulus package passed the Senate by an 85-9 vote and the House by a measure of 417-3. Bush signed
the bill into law Saturday.

http://helenair.com/montana/6A2.html