A bill (H.R. 1308) signed into law last week by President Bush extending until Jan. 1, 2006 a production tax credit (PTC) for power derived from various sources, including wind, spurred several power companies to confirm that they are now moving forward with various wind power projects.

The legislation cleared the U.S. Congress in late September, providing a much-needed gust of renewed optimism and enthusiasm for backers of several wind power projects. The PTC extension is part of a broader $146 billion tax cut package for the middle class signed by Bush in Iowa last week.

The PTC, which had expired Dec. 31, 2003, will be extended retroactively from that date to Dec. 31, 2005. The American Wind Energy Association (AWEA) previously pointed out that lack of Congressional action in moving to extend the PTC had effectively sidelined several thousand megawatts worth of wind power.

With Bush’s signature, look for the wind power bottle to be uncorked. Indeed, officials with Iowa-based Alliant Energy last Monday said that the extension of renewable energy production tax credits will allow its utilities to proceed with plans to add 230 MW of wind generation to its already substantial renewable portfolio. It will also allow Alliant Energy’s “WindConnect” division to resume the development of wind energy projects in locations all over the country.

“Extension of the PTC is welcome news for Alliant Energy,” said Frank Greb, general manager for wind business development at Alliant. “Uncertainty surrounding the extension had brought the company’s wind energy development business to a standstill, but today’s action will allow Alliant Energy to affirm its strong commitment to being a leader in renewable energy.”

Alliant Energy said that its WindConnect division has built “a strong nationwide reputation for its superior work with wind farm developers in designing, engineering and constructing the electrical infrastructure for wind power facilities. The realization that there was a need not only to build wind farms, but for specialists with the knowledge to connect them to the grid, opened the door to projects in Iowa, Kansas, New Mexico, Oklahoma, and Tennessee, to name a few.”

In December 2003, Alliant Energy announced plans to add 1,600 MW of generation to its portfolio, including 230 MW of wind generation in its Iowa and Wisconsin service territories. At year-end 2003, Alliant Energy was already providing its customers with nearly 7% of the total wind capacity in the U.S.

“As part of our commitment to provide our customers with safe, reliable, cost-effective, environmentally-friendly power, wind energy continues to be an important energy source to our company,” states Kim Zuhlke, vice president for new energy resources at Alliant. The company continues to receive proposals from landowners who wish to partner with Alliant Energy to develop wind energy facilities. Several proposals are currently being reviewed.

On Tuesday, ScottishPower said that its PPM Energy unit will now move forward with plans to build two new wind farms in Oregon and Minnesota, generating a combined 175 MW.

The fully permitted projects, the 75 MW Klondike II wind project in Oregon and the 100 MW Trimont wind project in Minnesota, are expected to be immediately enhancing to earnings once completed in 2005.

PPM also announced it has signed a 15-year power purchase agreement with Great River Energy, an electric cooperative, for all the Trimont output, and the output from Klondike II is also expected to be sold under long-term agreement currently under negotiation.

Great River Energy said completion of the Trimont project in 2005 will increase the renewable content of its energy portfolio to approximately 5%. The project will meet the energy needs of approximately 29,000 cooperative customers.

Moving to take advantage of the PTC extension by Congress, Xcel Energy earlier this month asked Colorado state regulators to speed up its utility bidding process for up to 500 MW of new wind power projects in the state.

Meanwhile, MidAmerican Energy on Sept. 24 announced the locations for its previously announced 310 MW wind project in Iowa. The $323 million project will be located on two sites in north central and northwest Iowa.

Federal regulators are also keeping wind power on their agenda. FERC last week said that it will host a technical conference on Dec. 1 in Denver to assess the state of wind energy in wholesale electricity markets.

This conference will follow on the heels of a FERC-sponsored meeting held last month examining issues arising from a petition for rulemaking previously filed by the AWEA related to the adoption of certain requirements for the interconnection of large wind generators.

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