tomatawea Wrote:
May 08, 2012 11:35 AM
3) With no fuel costs, wind energy contracts can lock in energy prices for a 20-year term or longer, similar to the stability that a long-term fixed-rate mortgage offers to homebuyers. Wind energy protects consumers from the fuel price volatility that must be passed on to consumers and is the largest source of consumer electric rate increases. When Xcel Energy, a large Midwestern utility, secured a wind power purchase in 2011, the Colorado Public Utilities Commission stated that “the contract will save ratepayers $100 million on a net-present-value basis over its 25-year term under a base-case natural gas price scenario” while providing the opportunity to “lock in” a price for 25 years.--Tom@AWEA