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January 15, 2010

Beekmantown wind project to receive funding

By CASEY RYAN VOCK

BEEKMANTOWN — Penn Energy Trust’s proposed wind project in Beekmantown is one of several initiatives across the state selected to receive some of the $96 million allocated to renewable-energy projects.

Announced recently by Gov. David Paterson, the funding comes through a partnership with the New York State Energy Research and Development Authority and represents about one-third of a $300 million package being provided under the Renewable Portfolio Standard Program.

“Investments in clean, renewable energy will form the foundation for New York’s clean-energy economy by creating jobs and helping control energy costs for New Yorkers,” Paterson said in a news release.



SPREAD OUT

The $96 million will flow to five of the state’s largest renewable-energy projects over the course of 10 years, which is the duration of the contract the state is negotiating with Penn Energy, as well as project managers in Albany, Saratoga, Onondaga and Herkimer counties.

“We are ecstatic to be in what we consider a partnership with the state of New York on this clean-energy project,” Kirt Mayland, manager of Penn Energy’s Beekmantown project, told the Press-Republican.

He would not comment on the amount of the payments or the time frame for the funding due to ongoing contract negotiations with the state, but he said the partnership would provide necessary funding to soon make the project a reality.



HOPE TO START SOON

Penn Energy is negotiating the host-community agreement with Beekmantown and is applying for a building permit to begin construction on the ridge just west of Rand Hill Road and south of Diamond Way.

“We hope to be under construction very shortly,” Mayland said.

Jeffrey Gordon, a spokesman for the Energy Research and Development Authority, said it is not known how much will be allocated to each project.

“At this point, I can’t tell you. We are still in the process of finalizing the contracts.

“Our negotiation is with the project sponsor or provider — not with the local government. We don’t provide (the sponsor) with any funding until they have all the necessary approvals done. So all approvals needed from the local government are the responsibility of the provider.”



ENERGY PRODUCTION

The amount of money distributed will be determined by the performance of each project, so the funding will depend largely on the progress made.

“They (the project sponsor) will be paid only for what they actually produce in terms of energy,” Gordon said. “That is the defining point of the contracts: They’re performance based. (Project sponsors) will be paid as they produce power.”

The funding will be provided to each project as it delivers the energy, he added.



FUTURE GREEN

Beekmantown Supervisor Dennis Relation pointed to a decreased dependence on foreign oil as one of the greatest benefits of wind energy.

“The biggest thing is we don’t have to buy oil overseas as much. I think we all know what has happened over the last few decades with overseas oil. The U.S. has kind of been held hostage.”

That’s why Relation believes utilizing wind power is necessary.

“We do need it,” he said, referring to fluctuating oil prices as an economic challenge. “Anything that happens overseas could affect oil prices today. And it has a direct effect on our economy.”



GROUP REACTS

However, not everyone in Beekmantown favors the project. The West Beekmantown Neighborhood Association has fervently opposed the project since its inception.

In a written statement, the Neighborhood Association applauded the state’s effort to move forward with funding for wind energy.

“Development of this resource, however, should be in compliance with local land-use plans as required by law,” the group added.

“Wind-turbine projects are industrial projects that forever change the character of the area and make a lot of money for the Wall Street investors behind them.”

The association also refers to the dangers of a turbine falling down and asserted a belief that the turbines will never be removed, even once obsolete.

“Residential zones, like the one in Beekmantown, and state parks, like the Adirondacks, are not suitable locations,” the statement said.

Relation said he understands the concerns of the association.

“But the Zoning Board ruled three years ago that it was permitted use, and the courts have upheld that. Now it looks like the funding is available to carry out the project.”

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