No new wind taxes needed
Over the past few years, PNE Wind USA, Inc. has invested millions of dollars toward the development of a wind farm in Oklahoma without expecting to receive any Oklahoma tax subsidy. The Chilocco Wind Farm intends to start construction in Kay County this year and is expected to provide approximately 200 megawatts of clean, low-cost power to Oklahoma residents.
We expect the Chilocco Wind Farm to employ more than 200 local people during construction and 10-20 full-time local people during operation. In addition, the project is expected to pay nearly $1 million per year in land payments and taxes to local land owners and state and county governments (over 7 percent of revenues).
New wind farms provide jobs, property tax revenues, landowner lease revenues and clean, fixed-price, low-cost power to Oklahoma electric customers.
New wind farms can assure a fixed price for electricity for the life of the plant (20-30 years), since no fuel charge is required. New wind farms like Chilocco will receive no tax subsidies or other benefits from state or local communities.
Wind farms in operation before the end of 2020 will receive 100 percent production tax credit benefits from the federal government, benefits that lower electricity costs for Oklahoma residents. Finally, new wind farms can provide electricity at prices that are competitive with electricity generated from natural gas generators, and much cheaper than prices from coal or nuclear fuel-based generators.
Wind farms will continue to provide clean, lowcost power, with no risk of fuel price increases, while conventional generators who buy natural gas, coal or uranium may face escalating prices and consumers may need to pay more for electricity from these sources.
PNE Wind USA strongly opposes the idea of a new wind tax. This would make new wind farms uneconomic. No new wind farms would be built, and no new tax revenues would be obtained. New wind taxes on new wind farms won’t help anybody!
Flax-Davidson is chairman and CEO of Chicago-based PNE Wind USA, Inc.