Public Service Commission of West Virginia Grants Siting Certificate for Pinnacle Wind Farm at NewPage

January 11, 2010 -- The Public Service Commission (PSC) of West Virginia granted a Siting Certificate for the construction of the Pinnacle Wind Farm at NewPage. The project, developed by Pinnacle Wind Force, LLC, a wholly owned subsidiary of US Wind Force, LLC, is the product of a joint development agreement between US Wind Force and Edison Mission Group (EMG).

"Pinnacle is delighted that the public service commission has granted the permit. While we have not yet had the opportunity to review the entire order, we are ready to put skilled West Virginians to work building this clean, renewable energy project. We anticipate that construction will likely begin once the terms of a power purchase agreement are finalized", said Dave Friend, vice president of US Wind Force.
The 23 turbine Pinnacle Wind Farm at NewPage will be located on Green Mountain, near Keyser WV, in Mineral County. The turbines will generate approximately 55 megawatts of power, which is enough electricity for over 14,000 households. The cost to construct the project is estimated at $130 million. County property taxes are projected to average more than $433,000 annually, placing it among the county's largest taxpayers. Additionally, Pinnacle has voluntarily committed to establish a community benefit fund that will provide locally controlled financial resources for community projects throughout the life of the project.

NewPage Corporation, the largest coated paper manufacturer in North America, is partnering with the project by placing six of the turbines on NewPage property near the company's Luke, Maryland facility. “NewPage is proud to partner strategically with US Wind Force, especially during a time when our country is facing significant energy challenges. This partnership is an example of our commitment to support the growth of sustainable energy and is consistent with our goal to continuously explore renewable energy opportunities for our facilities," said David Bonistall, vice president, environmental, health and safety for NewPage.

As part of the project planning process, a Community Advisory Panel (CAP) was established to create an ongoing dialogue with community members from the Keyser, New Creek, Piedmont, and Elk Garden areas. Members continue to meet to discuss the project and its progress. In addition to meeting with CAP members, US Wind Force has met with local civic and service organizations in Mineral County and conducted open house events. Friend added, "[W]e appreciate the tremendous amount of support the project has received from stakeholders in the local community and their willingness to provide valuable input throughout this phase of the process."

To learn more about the Pinnacle Project, please visit the US Wind Force website at www.uswindforce.com. Project area residents may stop by one of the community information repositories located at the Keyser Public Library, the Elk Garden Community School, and the Piedmont Public Library to see a copy of the application. A toll-free project line, 1-866-929-4429, is also available to anyone with questions about the project.
US Wind Force, LLC, based in Greensburg, Pennsylvania, is a privately held developer of utility-scale wind energy projects.

EMG companies rank as the seventh largest developer of wind energy projects in the United States with a current portfolio of 27 wind projects capable of producing more than 1,500 MW of electricity in operation or under construction in 10 states, including two projects in Somerset County, Pennsylvania. EMG also operates a power generating facility in Grant Town, West Virginia, which uses waste coal to generate electricity. EMG is headquartered in Irvine, California and is a subsidiary of Edison International.

West Virginia wake up, Cap and Trade will kill our state

WV land owners benefit from high energy prices

High energy prices around the world are impacting many people in a negative way. We are reminded each time we fill up our vehicles with $4 plus a gallon gas, but for some there is an up side. Many landowners have valuable energy that the market now wants.

Just a few years ago gas leases were running around $100 per acre, today most are in the $300 to $400 per acre range for the first 3-years with a bump to $1,700 per acre in the fourth year. Once the well starts producing the land owner will typically be able to negotiate between a 1/8th royalty on the low side and a 1/4th on the high side.

Wind farms are also providing a positive economic impact for landowners. Some are paid $5,000 per year per wind generator, while others opt for a $3,000 per unit lease with a percentage profit from the electricity generated.

Even if you are not a land owner you will see a positive impact in the local economy. Each dollar pumped into the area will act as three dollars to the local economy. The facts are people tend to spend extra money they get. After all that was why the Federal Government sent out the economic stimulus checks. They knew most people would spend them pumping money into the economy.

Most of the people receiving royalty and lease checks from the gas and wind companies will do the same thing. They will buy the boat they always wanted, build a garage they always wanted, start a business the didn't have the extra money to risk on, etc. Somebody will have to sell that boat, someone will have to build that garage, somebody will have to work at that new business. All of those people benefit indirectly from the increased wealth in the area.

Rising energy prices can benefit the local economy when you are in an energy producing region and the Potomac Highlands has the ability to be a major playing in the current energy market.

Killing the Golden Goose

As global demand for energy rises, West Virginia is poised to take advantage through use of our abundant energy resources. West Virginia has produced oil and natural gas continually since the 1800’s. Our mountains allow us to efficiently produce electricity from both hydroelectric and wind energy, but coal is still the energy Golden Goose to the states economy.

Unfortunately instead of feeding and caring for the Golden Goose most of the time the state stalks the Golden Goose like a predator using taxes as its favorite weapon. Some 200 years ago US Supreme Court Chief Justice and namesake of Marshall University, John Marshall warned, “The power to tax involves the power to destroy.” The evidence that Marshall was correct is all around us in West Virginia as we rank 50^th in business opportunity due to our punitive business tax structure destroying our economy.

The latest hunter taking aim at the Golden Goose is DEP Secretary Stephanie Timmermyer, who went before the Senate Finance Committee February 7^th requesting a state tax on coal be doubled. West Virginia is already at a huge economic disadvantage and this will only add more. We have the 7^th highest tax rate in the nation and at the same time we rank 49^th in per capita income. The destruction of the states economy through a punitive tax structure has dropped the states population from 1.3% of the US population in 1950 to 0.6% today, a drop of more than half.

Simple economics explains how the global coal market will respond if the coal tax increase is enacted. West Virginia coal will become more expensive in the market place. Just as we shop for the lowest price on food or gasoline, those in the coal market will also shop for the lowest price of coal. That will put West Virginia coal producers at a disadvantage. It will be harder for them to be price competitive. New coal orders will drop as a result. The drop in orders will mean less need for manpower, transportation, and supplies further increasing the adverse effects on the West Virginia economy.

Secretary Timmermyer’s request for an increase in coal taxes personifies the problem with Charleston’s understanding of the economy. Ronald Reagan clearly identified the problem when he stated, "The problem is not that people are taxed too little, the problem is that government spends too much." West Virginian’s have been taxed so heavily for so long that a large unused surplus exists in various state accounts. In 2005 State Senator Russ Weeks estimated that at $1 billion, Senator Herb Snyder at $3 billion, and West Virginians Want to Know at $5 billion. When the state has somewhere between $1 and $5 billion dollars sitting unused in various accounts; we should not be talking about raising taxes.

With world demand for energy high and West Virginia sitting on coal, oil, gas, hydroelectric and wind to supply the world, tax cuts are in order to help our economy grow. The money not spent on taxes will be plowed back into the businesses of the state thus feeding the Golden Goose. If the power to tax is the power to destroy, then the power to reduce taxes is the power to create.