US Tax Bill's Approval Would Be Boost For Wind Energy Co's

Dow Jones & Company, Inc. - Sep 23

WASHINGTON -(Dow Jones)- The expected approval of a multi-billion dollar tax bill is likely to boost the development of wind-power projects sponsored by companies such as Florida Power & Light (FPL).

Several utilities invested in wind energy projects in 2003, but placed those projects on hold this year as they waited to see if legislators would extend the federal tax credit for wind energy production.

A provision reauthorizing the expiring credit is part of the $146 billion tax bill now poised for approval in the House and Senate.

"A number of projects are likely to take place if the production tax credits are approved," said Standard and Poor's credit analyst Terry Pratt . "That credit helps to make these projects more economically attractive."

Florida Power & Light subsidiary FPL Energy is the largest owner of wind plants in the U.S. and is likely to benefit from the provision, said Pratt.

The same goes for Iowa utility MidAmerican Energy Co., which has a $323- million wind power project on hold, he said.

Pratt also noted that Danish turbine suppliers Vestas Wind Systems AS (VWS.KO) and NEG Micon would also benefit. "Any expansion of the U.S. market is definitely good for them," he said. The tax credit should also push forward projects sponsored by companies like Shell Wind Energy, which is owned by Royal Dutch/Shell Group (RD,SC), and American Electric Power (AEP), said American Wind Energy Association spokeswoman Kathy Belyeu.

"Really, all wind power companies stand to benefit," she said.

-By Maya Jackson Randall , Dow Jones Newswires; 202-862-9263; Maya.Jackson- Randall@dowjones.com

Dow Jones Newswires 09-23-04 1857ET