Dear IndianaDG Readers:
When I read this newspaper article, I thought it was too good to be true. The article seems to say that Indiana Michigan Power (I&M) which is an operating subsidiary of American Electric Power (AEP) has agreed to a feed-in tariff (FIT) contract with the City of Winchester, Indiana. Unbelievable, I thought. WOW!
I wanted to know more so I contacted Performance Services Business Development Manager Tony Kuykendall this morning. First of all, I need to say that the Winchester has not awarded the bid yet for this wind turbine project. Second, according to Tony Winchester is still negotiating with I&M on the proposed contract to sell the electricity from the wind turbine to I&M. So any details concerning the length or terms and conditions of the proposed contract are premature.
As Paul Harvey used to say and here is "the rest of the story". 🙂
Laura Ann Arnold
Original story: http://www.winchesternewsgazette.com/articles/2012/10/03/news/doc506b5099e526a397167930.txt
By BILL RICHMOND City editor
Published: Tuesday, October 2, 2012 4:40 PM EDT
Winchester City Council Monday opened bids to construct an electricity-generating wind turbine at Vision Industrial Park and approved the third and final reading of an ordinance permitting the lease of Vision Park property by the Winchester Redevelopment Authority until the bonds are paid off.
The project's goals are to reduce the city's operating costs and to create a new revenue source for the city. The project calls for installation of a 850 kW Gamesa turbine. The 3-blade turbine will be 306 feet high with the blades extended.
Performance Services Business Development Manager Tony Kuykendall at council's Sept. 17 meeting said the revenue stream from the turbine will pay for the bond obligation without any tax dollars being used. The city has a feed-in tariff agreement with Indiana Michigan Power (AEP) that establishes a specific rate the utility will pay for renewable power that is guaranteed for 20 years with a 2.5 percent annual escalation. The turbine will deliver power to the Indiana-Michigan distribution system and the city will be paid revenues according to the feed-in tariff.