The Problem with Wind Farms in West Virginia*

What Are Wind Farms?
Wind farms use windmill turbines, located on the tops of mountains, to generate electricity. These turbines are huge machines that can range in height from 300 feet to a potential 465 feet. By comparison, the West Virginia State Capitol is 292 feet tall, and the U. S. Capitol in Washington is just 300 feet tall.

There is currently one wind farm operating in West Virginia, the Public Service Commission has approved a second and a third is awaiting approval. With three farms operating in this state, there would be a total of 410 turbines spread over nearly 40 square miles on the top of some of West Virginia’s most scenic mountains in Preston, Tucker and Grant counties.

Operating and Proposed Wind Farms in West Virginia

Owner or Developer	Status	Site Area	Turbines
FPLEnergy Mountaineer Energy Center Backbone Mountain, Tucker County	Operating	6.9 sq. miles	44
U. S. Wind Force Mount Storm, Grant County	Certified 8/29/02	20 sq. miles	166
NedPower Allegheny Front, Grant County	Awaiting Certification	12.5 sq. miles	200
Guascor Group Rich Mountain, Randolph/Tucker Counties	Planned	7 sq. miles	65
Crites Jack Mountain, Pendleton County	Planned	Unknown	Unknown

People who support wind farms claim that they are both environmentally friendly and good for West Virginia’s economy. They’re wrong. Throughout the United States and Europe, people are becoming acutely aware of two things:

1. Economic and environmental benefits of wind-generated electricity are overstated.

2. Costs to consumers and taxpayers—as well as negative impacts on environmental, ecological, scenic and property values—are understated.

How Much Electricity Can They Produce?
Wind farm advocates readily admit that electricity produced from windmills costs more than electricity from traditional energy sources like natural gas and coal. What they don’t say is that wind generated electricity is less efficient and reliable than electricity generated from more reliable sources.

• At best, wind farms produce electricity at an efficiency rate of just 30 percent, compared to other sources, which have an efficiency rate of 70 percent.

• Operating at a constant efficiency rate of 30 percent for one year, the three West Virginia wind farms would produce less than 2 percent of the electricity produced in the state in 2000. It would represent just 39/100 of 1 percent of the electricity consumed in Maryland, Virginia, Delaware, New Jersey, Ohio and Washington D.C., which import electricity generated from West Virginia.

• Wind energy has less value because it is unreliable. Electricity cannot be stored—it must be produced as it is demanded by consumers. Wind is unpredictable and its output is uncontrollable by dispatchers. As a result, the availability of electricity is intermittent and highly variable. Because of its unreliability, back-up generators are needed. These units operate on stand-by at increased cost and wear than if they were operating at maximum efficiency.

• More reliable methods can be ramped up or slowed as demand increases or wanes, making them more efficient and cost effective.

Government Subsidies Give Owners “Windfall” Profits
The truth is that wind power is being pursued aggressively by businesses not because they believe that it is the best alternative to traditional energy sources, but because wind farms are first-rate tax havens thanks to enormous federal and state government subsidies. Larger corporations with taxable income to shelter take advantage of these opportunities by buying wind farms from the smaller companies who set them up. Without these tax breaks, it’s doubtful that any of these corporations would be endorsing wind power.

Federal Subsidies
• Accelerated Depreciation – One generous subsidy provides wind farm developers with a depreciation rate four times faster than the rate for other types of businesses. As a result, a company can fully recover construction, equipment and start-up costs in just five years instead of 20. In addition, the 2002 Job Creation and Worker Assistance Act will allow the developers to take a special 30 percent depreciation deduction in the first year for qualified asserts purchased between September 10, 2001 and September 11, 2004, if those assets are in service by January 1, 2005.

• Production Tax Credit – A second generous subsidy provides wind farm operators with a production tax credit of $.0018 for every kilowatt-hour (kWh) of electricity production over the first ten years of a wind farm’s life. Even at an inefficient production rate of just 30 percent per year, this amounts to approximately $14 million per year. Without this tax break, wind production would not be economically viable.

State Subsidies Include
• Business and Occupations (B&O) Tax – Although nearly all forms of electric generating units are valued at 40 percent of their capacity, in 2001 a tax break for wind farms has their rate set at just 5 percent.

• Industrial Expansion and Industrialization Revitalization Credit – This tax credit further offsets a wind farm’s B&O tax liability up to 50 percent.

• Reduced Property Taxes – In West Virginia, property taxes are assessed for landowners based on 60 percent of the fair market value of the property. In 2001, the state passed a tax break for wind farms which allows those properties to be assessed at just 5 percent of their market value, resulting in significantly lower taxes. This tax break is particularly detrimental to county school systems, which are dependent on property taxes for funding.

Bad for West Virginia Communities
Scenic Impairment
Wind farms are proposed for some of West Virginia’s most scenic mountain areas. Scenic impairment figures prominently in the state since our mountain landscapes and vistas figure prominently in state tourism marketing campaigns. Placement of wind farms on top of these mountains will be nothing less than putting intrusive billboards on top of them. After viewing another FPLEnergy wind farm on the Oregon-Washington border, an Oregon official stated, “Could anyone think it’s anything other than ugly? . . .How is it any different than wanting to put up a big ugly billboard?” (Tri-City Herald).

Loss of Property Value
Although the extent to which wind farm development devalues neighboring property values cannot be determined up front, the government and residents need to be aware of potential losses. A study of residents around one Wisconsin wind farm found than more than half did not want to live within two miles of the facility because of noise and those who lived closest were significantly concerned about health and safety issues. An analysis of wind farms in Denmark showed declining property values for home and land owners who were near turbines, with value decreasing in proportion to larger numbers of turbines (http://www.tva.gov/environment/reports/windfarm/appendix_f.pdf). It should also be noted that the declining quality of the local school system—which will be affected by the substantial loss of property tax revenue from the wind farm facilities—will further decrease the value of local property.

Adverse Effects on Tourism, Recreation and Second Home Development
The counties surrounding existing and planned wind farms represent some of West Virginia’s most important tourism areas. Tourism in those communities has contributed significantly to economic development and the creation of local jobs. West Virginia’s scenic beauty, which will be marred by the intrusion of 300-ft turbines on tops of the mountains, has been central to successful tourism marketing campaigns. In addition, tourism and recreational opportunities have led to the development of numerous second homes in these communities for both weekend visitors and those who retire to the area. The number of jobs provided by tourism, recreation, home construction and visitor services outnumber those which could be provided by the wind farms. In addition, these industries do not strip the local tax base and provide additional tax dollars to the local economy through visitors and new, permanent residents.

Environmental, Health and Safety Issues
Wind energy advocates suggest that it provides an environmentally sound alternative for electricity production, but that is not accurate. Instead, it presents several environmental and safety concerns including:

• Noise pollution from the turbines is a concern frequently downplayed by the industry, but it is a problem for those who live in the surrounding area, as was noted in the Wisconsin study.

• Broken blades, ice throws and collapsing towers present a safety concern for the people, homes, businesses and roads in the surrounding areas.

• Bird deaths and interference with migration patterns for birds who live in and migrate through the area, including several endangered species, has led the U.S. Fish and Wildlife Service to publish their own studies about the negative ecologically effects of wind farms.

• Strobe effects created by the turning blades have been another concern for those who live near the wind farms.

* Taken from Wind Energy Economics in West Virginia by Glenn R. Schleede