The money would be used = to build lines that theoretically would encourage more wind-power = development in the Panhandle and West Texas.

Wind-power advocates say = the potential expense could be a bargain, saying that besides leading to = clean... "=20 name=3Dkeywords>

Posted on=20 Thu, Apr. 03, 2008

Texas = ratepayers'=20 price tag for new wind-power lines in billions

By R.A. = DYER
Star-Telegram Staff=20 Writer

AUSTIN -- Texas ratepayers could be on the hook for = $3 billion=20 to $6.4 billion to build new transmission lines so wind-power turbines = can=20 connect to the state power grid, according to preliminary estimates = released=20 Wednesday.=20

The eye-popping cost projections by operators of the Texas power grid = could=20 equate to as much as $320 for every man, woman and child getting power = from the=20 grid, although the impact on individual bills remains unclear.=20

The money would be used to build lines that theoretically would = encourage=20 more wind-power development in the Panhandle and West Texas.=20

Wind-power advocates say the potential expense could be a bargain, = saying=20 that besides leading to cleaner air, the expensive new transmission = lines will=20 pay for themselves because of the zero fuel costs associated with wind = power.=20

"There is no question that adding more wind energy to the grid will = reduce=20 the overall cost of energy to ratepayers, particularly as fossil-fuel = prices=20 increase," said Ned Ross, director of regulatory affairs for FPL Energy, = the=20 state's largest wind-energy provider.=20

But skeptics say consumers should watch their pocketbooks. They say = that the=20 giant price tag will get coupled with additional hidden costs and that = much of=20 the benefit from lower fuel costs will go to energy companies and not=20 ratepayers.=20

"Anytime you're spending several billion dollars, that should be = cause for=20 concern for consumers," said Thomas Brocato, an attorney representing = Fort Worth=20 and other North Texas municipalities in utility matters.=20

Landowners could also lose thousands of miles of property through=20 eminent-domain proceedings.=20

The projected expenditures are largely associated with the legal and=20 regulatory cost of acquiring such right of way, along with the price of = the big=20 latticework transmission towers and wires needed to move power from the = far=20 reaches of the state.=20

The new cost estimates were released Wednesday as part of an = extensive study=20 on wind power by the Electric Reliability Council of Texas, the=20 quasi-governmental organization that operates the state's power grid. = ERCOT=20 conducted the study as part of its implementation of Senate Bill 20, a = 2005 law=20 calling for special zones where the construction of transmission lines = would=20 potentially encourage wind-power development.=20

The ERCOT study describes five different scenarios and outlines the = cost of=20 construction within each scenario.=20

It also examines the potential location of new lines and spells out = other=20 engineering and technical details.=20

The study now goes to the Public Utility Commission, which will = select a=20 scenario within months and then sign off on a transmission construction = plan=20 within about a year, a spokesman said.=20

The price tags for the five scenarios are $2.95 billion, $3.78 = billion, $4.83=20 billion, $5.46 billion and $6.38 billion.=20

The costs would be divided up among all ratepayers in ERCOT through a = fee=20 attached to bills and paid off over several years.=20

The least-expensive scenario could lead to 5,150 megawatts of = additional wind=20 power and would require about 1,600 miles of new transmission lines.=20

A single megawatt provides enough power for 500 to 700 households = under=20 typical operating conditions.=20

The most-expensive plan could be sufficient for 17,956 additional = megawatts=20 and require more than 3,000 miles of new transmission lines.=20

Public Utility Commission spokesman Terry Hadley said the agency's = three=20 commissioners will try to ensure that ratepayers get a good deal. He = said the=20 transmission construction could be complete within about five years.=20

"The commission will most likely begin reviewing this at their open = meeting=20 next week, and the cost is a large concern," Hadley said.=20

Wind-power advocates say the new transmission lines could pay for = themselves=20 because the cheaper wind power will replace more expensive power = generated by=20 fossil fuels. Ross of FPL Energy also said that the new transmission = lines will=20 serve other electric generators besides wind and that the state needs to = invest=20 in new lines to serve its growing population.=20

But critics have raised war- ning flags, noting that no state agency = has=20 undertaken an overall review of the relative merits and costs of = pursuing=20 alternative clean-air strategies.=20

Jeff Pollock, an expert testifying on behalf of a group of Texas = industrial=20 customers, told the PUC earlier that "what is known is higher = transmission and=20 [other] charges associated with new wind generation will increase the=20 electricity costs paid by all consumers."=20

With almost 5,000 megawatts of existing generation, Texas leads the = nation in=20 wind power. ERCOT said wind generation would leap to 12,000 to 24,000 = megawatts,=20 depending upon which scenario the PUC selects.=20

However, because of the intermittent nature of wind, ERCOT depends on = only=20 about 8.7 percent of capacity when determining available power during = summer=20 peak hours.=20

Wind Power=20

Texas in 2007 extended its lead as the nation's No. 1 wind-energy = state and=20 hosts four of the nation's five biggest wind farms, says a new report by = the=20 American Wind Energy Association. Still, the proportion of electricity = produced=20 by wind in Texas is below a number of other states. Here's a look at how = the=20 states stack up.=20

Total capacity

In megawatts and as a percent of state's total electricity generated = (a=20 megawatt is 1 million watts):=20

Texas 4,446 (2.0 percent)=20

California 2,439 (2.6 percent)=20

Minnesota 1,299 (4.6 percent)=20

Iowa 1,271 (5.5 percent)=20

Washington 1,163 (2.0 percent)=20

Capacity added in 2007

(in megawatts)=20

Texas 1,618=20

Colorado 776=20

Illinois 592=20

Oregon 447=20

Minnesota 405=20

Largest wind projects in operation

(in megawatts)=20

Horse Hollow, Texas 736=20

Sweetwater, Texas 585=20

Peetz Table, Colorado 401=20

Capricorn Ridge, Texas 364=20

Buffalo Gap, Texas 353=20

Source: American Wind Energy=20 Association