Wind energy brings consistency to electric bills in Oklahoma

May 28 - McClatchy-Tribune Content Agency, LLC - Paula Burkes The Oklahoman, Oklahoma City

 

Q: Although we're known as an oil and gas state, Oklahoma ranks fourth in the U.S. for wind capacity. How does this diversification in our energy portfolio affect our state and nation?

A: Wind energy continues to play a key role in electricity generation in Oklahoma through its predictability and long-term price stability. Oklahoma wind farms generate more than 3,000 megawatts of electricity -- enough to power more than one million homes. But because wind energy is variable, our utilities complement wind energy with natural gas to stabilize production. Since natural gas prices fluctuate, wind power also is used to hedge against price unpredictability. Oklahoma utilities can lock in wind energy prices, which brings consistency to electric bills.

Q: Wind developers have benefited from tax incentives in Oklahoma for 12 years. How has that investment in wind benefited taxpayers?

A: Oklahomans produced tax incentives for wind in order to grow the industry and move our economy forward, just like they did for natural gas and oil. Our state made a $120 million investment in wind, which has allowed the industry to invest more than $6 billion back into Oklahoma since 2003. Wind energy has created more than 1,600 full-time jobs in our state, with wages of more than $340 million. Landowners are paid $30 million annually in royalty payments and more than $42 million is invested annually in property taxes for counties, governments, public services and schools.

Q: How will current legislation affect the wind industry?

A: Wind developers have worked with the state Legislature so Oklahoma incentives meet future budget needs -- most recently conceding the five-year ad valorem exemptions. However, some incentives, like the zero emission production tax credit, are necessary to attract future wind projects and remain competitive. By increasing wind's position in Oklahoma's energy portfolio, we'll create economic development, royalties for landowners and jobs in our communities.

PAULA BURKES, BUSINESS WRITER

newsok.com

http://www.energycentral.com/functional/news/news_detail.cfm?did=36307682