Wind power saved electricity consumers during last year's 'polar vortex,' trade group says

Jan 09 - Daily Oklahoman (Oklahoma City)

With temperatures plunging again, the wind industry's trade group said last year's "polar vortex" was tempered for consumers by the availability of wind energy.

The American Wind Energy Association said its analysis shows electricity consumers saved $1 billion when utilities shifted to wind power as natural gas spot prices escalated during a cold snap in January 2014 .

During the polar vortex, extreme cold weather conditions were felt farther south, with temperatures in some places plunging more than 30 degrees below normal. The colder weather prompted record winter demand for electricity and natural gas as customers turned up their heaters.

'Critical contribution'

"In many regions of the country, wind power made a critical contribution to keeping the lights on and also keeping power prices low," said Michael Goggin , research director for the association.

Goggin's analysis looked at which power plants were used and fuel prices during the Jan. 6-7, 2014 , polar vortex. In most circumstances, grid operators are required to run the lowest-cost generation first.

The analysis focused on a region that includes 60 million customers in the Mid-Atlantic and Great Lakes areas. Wind power utilized during the 2014 polar vortex saved customers there about $1 billion , or 27 percent, from the estimated wholesale fuel sales in that period.

"The fuel cost is always free, and you can guarantee that for the life of the project," Goggin said.

As utilities used wind instead of natural gas generation, it also freed up some natural gas supplies for home heating, Goggin said.

The association said its estimates were conservative because they didn't look at how wind helped keep natural gas price spikes in check.

The Oklahoma Property Rights Association , which has opposed some wind farm projects in the state, said the wind association report on savings doesn't take into account federal and state incentives used to build wind farms.

Subsidies lower prices

"The price of wind-generated electricity is subsidized by federal and state production tax subsidies that artificially lower the price of the electricity," the property rights association's Rick Mosier said in a statement. "Without the enormous wind power subsidies, Oklahomans would pay lower taxes and government would still have additional money to spend on education and other essential services."

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