May 21, 2004

Wind Harvest Company Wind News
A compilation of story leads from around the world.
By:  Kevin Wolf

Note:  These story titles and lead paragraphs predominantly come from Energy Central's daily posting of the world's energy stories. Others are sent to me by subscribers of Wind News.  Energy Central requires paid membership to read full stories.  You can often paste the headline into the Google search engine and find the original source of the story.   When I have them, I will include the URL.  Please send me stories that you find, and I will add them into the next edition of Wind News.  Thank you. Kevin
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LAMAR, COLO., WIND FARM GETS 'GREEN' LIGHT

  State representatives, local government officials and dignitaries
  from three major energy companies gathered in front of 200 local
  citizens to dedicate the Colorado Green Project Friday.
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PacifiCorp Ventures Indicate Wind Power is Economically Viable (UtiliPoint -
By Ken Silverstein Director, Energy Industry Analysis
05 13, 2004 - PowerMarketers Industry Publications

When PacifiCorp set out to add 1,100 megawatts of renewable generation to
its overall portfolio over the next seven years, it discovered that wind
energy has huge possibilities. The Portland, Ore.-based utility received 42
bids totaling 5,600 MW of new renewable resources that equate to 54
projects—85 percent of which are for wind units.

The request for proposals (RFP) is a good example of a utility seeking to
diversify its energy portfolio with wind power because it can be an
attractive economic proposition. Once a wind farm is built, the cost of
power over time is stable and not subject to fuel price volatility. Wind
power therefore provides a valuable hedge against natural gas price spikes—a
phenomenon that has hurt the overall economy. In the Northwest and West, the
power source also helps to conserve water, which is used for hydroelectric
generation. That value is unique to that part of the country.
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TUCKER COUNTY, W.VA., WIND TURBINE BLADES KILL 2,000 BATS YEARLY

  The whirling blades of the 44 wind turbines atop Backbone Mountain
  in Tucker County killed more than 2,000 bats and nearly 200 birds
  last year, according to estimates from researchers hired to study
  bird and bat deaths at the site.
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DESPITE DRILLING, U.S. GAS OUTPUT CONTINUED DECLINE IN Q1

  Three analyst groups have concluded that quarterly U.S. natural
  gas production dropped between 4.9-5.3% compared with a year ago,
  led by a sharp decline among the majors. - (NGIís Daily Gas Price Index)
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U.S. utility wants 500 MW of new renewables

DENVER, Colorado, US, 2004-05-12 (Refocus Weekly) The fourth-largest utility
in the United States wants to acquire 500 MW of predominantly wind power.

Xcel Energy has filed its least-cost resource plan with the Colorado Public
Utilities Commission, to develop 3,600 MW of generating capacity by 2013.
The PUC requires a plan every four years to plan for growing energy demand
in the state.

The utility analyzed 100 resource mix options, using a “reasonable range of
potential fuel costs and environmental regulations,” to recommend that it
obtain up to 500 MW from renewables, mainly wind, “acquired ahead of other
needed resources.” It also wants to use an all-source bid process to secure
new capacity from natural gas or other fossil fuel-fired generation,
additional green power resources, and demand reduction programs.

It asked for PUC permission to request proposals for the green power this
July, to take advantage of the expected renewal of the federal production
tax credit for wind energy and to have the renewable energy power available
by late 2006. It also intends to request proposals for additional wind or
solar resources to further hedge against volatile fossil-fuel prices.

It also wants to spend $1.3 billion to add 750 MW of capacity to its
coal-fired Comanche facility near Pueblo, of which Xcel Energy would own 500
MW. Eighty percent of the proposed new generating capacity would be
competitively bid, and the utility will also seek bids for programs that
lead to reductions in overall customer electricity demand. It will evaluate
all supply and DSM options to develop the least-cost mix of resources.

The Colorado electric customer base served by Xcel grew by 20% in the past
ten years, to reach 1.2 million last year, while individual demand grew by
13%. Customers in the state now require 60% more peak electricity than a
decade ago, and the plan asks for a waiver to rules that limits the utility
to owning no more than 250 MW in any single generating unit that is not
competitively bid.
“Demand for electricity continues to rise in Colorado, both in terms of
overall customer growth and per-customer requirements,” says David Eves.
“Much of this demand drives the need for additional base-load generation,
resources that run virtually all of the time. Our plan offers the best mix
of resources to help us serve that demand at reasonable prices.”

Xcel Energy has regulated operations in eleven states and serves 3.3 million
electricity and 1.8 million natural gas customers. In terms of customers, it
is the fourth-largest combination natural gas and electricity company in the
U.S.

The utility buys power from the Colorado Green windfarm in Prowers County,
and that region is expected to benefit from the announcement to purchase
more green power.