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Tag Archives: wind power scam

When wind farms fail, farm owners can be liable

21 Wednesday Jan 2015

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 1 Comment

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community wind farms, wind farm, wind farm bankruptcy, wind farm leaseholders, wind farm leases, wind power, wind power bankruptcy, wind power scam

This should be shared with anyone you know who owns agricultural acreage and might consider a wind turbine lease…

More Wind Power Outfits Go Bust: “Farmer-Investors” Lose their Shirts in the US

January 21, 2015 by stopthesethings 5 Comments

american-farmer-425x282

In Australia, the wind industry is in total melt-down, with many of its “BIG” players on the brink of financial collapse.

And the dreadful “uncertainty” about the willingness of governments to continue fleecing power consumers and taxpayers – in order to keep throwing massive subsidies at the greatest rort of all time (which, on the wind industry’s pitch will be needed until kingdom come) – has resulted in the collapse of more than 120 wind industry suppliers in the past two years, “including 88 from Asia, 23 from Europe and 18 from North America” (see our post here).

In Germany – despite the fact the the wind industry there has pocketed the lion’s share of at “least half a trillion € in subsidies” – German investors are taking a flogging: “37 percent of wind farms are losing investors’ money” and “two thirds are in deficit or just about cover their running costs” (see our post here).

Around the world, wind farm investors are being fleeced by the same types of hucksters and weasels that run outfits like near-bankrupt Infigen (aka Babcock and Brown); and the smarmy gits that set up so-called “community wind farms” – praying on greed and gullibility in their efforts to pocket $billions in REC Tax/Subsidies.

The scam is the same the world over: pitch numbers that show returns that are too good to be true (they are) and watch the suckers beat a path to your door: greed trumps common sense often enough.

As PT Barnum said: “every crowd has a silver lining” – an adage put to great effect by wholesale fraudsters like Bernie Madoff in scams often tagged “Ponzi” schemes; named after Charles Ponzi – who would have taken to the wind industry like a duck to water.

Madoff – who ended up with a 150 year stretch in stir for his share-market shenanigans – would, no doubt, be pleased to know that the wind industry has followed his “model” and is keeping the Ponzi “dream” alive.

Wind power outfits routinely base their expected returns on pumped up wind forecasts – thereby way overstating their anticipated gross returns (see our posts here and here and here and here).

While, at the same time, lying about their true operating costs (see our post here), which start to tack up pretty quickly when it’s revealed that turbines last less than half the time claimed: with an ‘economic’ lifespan of 10-12 years, as opposed to the 25 years wildly claimed by fan makers (see our posts here and here).

Or, in the case of top-flight German manufacturer, Siemens – less than 2 years – one of it’s latest batches required wholesale blade and bearing replacement, starting almost as soon as they cranked them into gear (seeour post here) – Siemens blaming “harsh weather conditions both onshore and offshore” – as if its fans had been designed to run inside aircraft hangars ….

Like all inevitable financial collapses, the dread-disease is spreading fast: a bunch of Minnesota farmers have just lost their shirts – having thrown their hard-earned at a pair of wind power outfits that have just hit the wall; and gone completely ‘belly-up’ on the prairie.

Owners of two Minnesota wind farms file for bankruptcy court protection
Star Tribune
David Shaffer
7 January 2015

Power to people on the prairie — it’s the idea, born in Minnesota, that farmers should own some of the wind turbines spinning above their fields.

But that idea has turned into a financial loser for about 360 farmers and other landowners who invested in two small wind farms more than a decade ago near Luverne, Minn., in the windy southwest corner of the state.

The companies that collectively own the two Minwind Energy projects filed for reorganization this week in U.S. Bankruptcy Court in Minnesota. The owners stand to lose their investment, and the wind farms eventually may have to shut down, according to regulatory filings.

It is the first of the state’s approximately 100 operating wind power projects to seek bankruptcy protection, and the case is raising questions about whether the small-scale wind farm model still works in an era of ever-larger wind-generating projects.

“The wind business is not for the faint of heart,” Beth Soholt, director of the St. Paul-based trade group Wind on the Wires, said in an interview. “These are big energy facilities … It is a long-term contract with utilities that expect you to produce. A lot of things can go wrong.”

The Minwind wind farms, with 11 turbines that went on line in 2002 and 2004, made a profit until 2012, and are still operating, according to its financial reports. The electricity is sold to Minneapolis-based Xcel Energy and Cedar Rapids, Iowa-based Alliant Energy under long-term deals. Some of Minwind’s power is fed into a giant battery built by Xcel near Luverne to store electricity for when the wind doesn’t blow.

Minwind has told federal regulators that the turbines have needed extensive repairs, including main bearings, and the company no longer can afford the upkeep. To make things worse, Minwind got into a jam with the Federal Energy Regulatory Commission for not filing certain paperwork since 2006. The result is a $1.9 million regulatory liability that has left a potential buyer uneasy about signing a deal to acquire the wind farms.

Minwind’s attorneys have told the government that the owners were “unsophisticated” in regulatory matters, and should be excused from the filing lapse. Some of the owners also had invested in the former Agri-Energy ethanol plant in Luverne, which was sold in 2010 to another biofuel company.

“None of the owners has had any experience in the power sector, except through ownership and operation of the facilities,” the company’s Washington-based legal team led by Margaret Moore said in a regulatory filing.

But federal regulators didn’t buy the lack-of-sophistication argument. Indeed, the company led by President Mark Willers, Luverne businessman and farmer, has long been credited with creating an innovative business structure with nine separate limited-liability companies allowing investors to take advantage of federal wind energy tax credits, a now-discontinued state assistance program for small wind projects and USDA grants.

Willers declined to comment in detail, but acknowledged that the company was tripped up by a rule change that FERC made eight years ago — a time when the company didn’t have a Washington attorney on retainer to watch for such things.

In its bankruptcy case, the Minwind companies filed for reorganization, a process that allows companies to shed liabilities. That potentially could clear the way for a sale to a turbine repair company. Under a proposed deal, the wind farms would be sold for the cost of the remaining debt with no additional return to investors, Moore told regulators.

It is unclear how much individual investors will lose.

State support for small wind

Minnesota has long supported community-owned wind farms, and more than 30 of them have been built, according to state data. Most have less than 20 turbines, a fraction of the size of large wind farms built by major energy developers.

Soholt of Wind on the Wires said there have been long-standing concerns about whether small, community-owned wind farms have set aside enough funds to maintain wind generators for the typical 25-year operating agreements. But she said Minwind’s case is the first she heard of a small wind power company facing those troubles.

Michael Bull, who had a top state energy post during the Pawlenty administration, said that in the mid-2000s, Minnesota policy on small wind farms changed. The direct state subsidies ended, and state officials paid more attention to whether small companies could sustain the long-term maintenance needs of wind farms.

“My sense is that the industry got pretty sophisticated — a lot of more sophisticated as the projects got larger,” said Bull, who is now policy and communications director for the Center for Energy and Environment, a nonprofit that promotes energy efficiency.

Carol Overland, a utility attorney based in Red Wing, Minn., who was not involved in Minwind, said it’s possible that other small wind power producers could get caught in similar regulatory, maintenance and financial struggles as the Luverne-area wind farms.

“Small wind development is a good thing, but it developed in Minnesota in a way that was not in the public interest or the interest of the people developing it,” said Overland, who has challenged transmission and wind power projects on behalf of affected landowners.
Star Tribune

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Don’t look for ‘justice’ in wind turbine debate

09 Tuesday Apr 2013

Posted by ottawawindconcerns in Health, Ottawa, Renewable energy, Wind power

≈ 1 Comment

Tags

Anne McNeilly, Ben Lansink, David Cooper, Dr Hazel Lynn, Feed In Tariff Ontario, FIT Ontario, Green Energy Act, health effects wind power, health effects wind turbine noise, health effects wind turbines, infrasound wind turbines, Ken Lewenze, Port Elgin turbine, property value loss wind power, Toronto Star, wind power development, wind power Ontario, wind power scam

This commentary, written by a journalism prof, is an excellent summary of the issues around the wind power scandal in Ontario … and a question as to why the Ontario media in the main, doesn’t “get it.”

Check out the original here, and feel free to comment at The Toronto Star. http://www.thestar.com/opinion/commentary/2013/04/09/dont_look_for_justice_in_ontarios_debate_on_wind_turbines.html

Don’t look for justice in Ontario’s ‘debate’ on wind turbines

It’s wealthy corporate behemoths supported by the government against vulnerable people with limited financial resources.
Don’t look for justice in Ontario’s ‘debate’ on wind turbines

David Cooper / TORONTO STAR

Anti-wind-turbine groups converged on the convention centre in downtown Toronto last week to protest wind farms, a story largely ignored by the mainstream media. (April 3, 2013)

By: Anne McNeilly Published on Tue Apr 09 2013

When there’s social injustice, you don’t expect large corporations, the provincial government and a union like the CAW to be climbing into bed together to ignore the problem. But slap a motherhood label on the issue, such as the so-called “Green Energy” Act, and all of a sudden it’s OK to ignore the very real hardships, both health and financial, happening to people in non-Liberal ridings.

What’s more surprising about the wind-turbine debacle, though, is the relatively low media profile that Ontario residents who are being negatively affected by the monster machines are receiving. News outlets and publications usually lap up stories of social injustice. The problems associated with lead paint, urea-formaldehyde foam insulation, asbestos and cigarettes are all famous for the media attention they received that led to change.

But it was difficult even to find news stories last week about the wind turbine protest at the energy conference in downtown Toronto. People from across the province pooled their resources to hire buses to come to the city to try to draw attention to their plight. If there was a broadcast or a print story, I didn’t hear or see it.

And despite public outrage and protests, the Canadian Auto Workers’ union last week started operating a monster wind turbine, built with government subsidies, in its Port Elgin convention centre parking lot that violates the 550-metre Ontario setback regulations. Residents, particularly children, are already experiencing the sleepless nights, anxiety and migraines being experienced by others around the province. Who cares? Certainly not CAW president Ken Lewenza, who has secured a seat on the province’s wind gravy train. When I recently suggested to a colleague who works on a documentary radio show in Toronto that the problems with turbines were worth a story, she responded: “I think they (wind turbines) are beautiful.” And that was that.

On one “side” of the wind-turbine debate are wealthy corporate behemoths supported by a government that removed the democratic rights of its citizens, without debate, to launch a misguided and ill-advised initiative that’s going to cost taxpayers’ into the billions. On the other “side,” you have vulnerable Ontario residents with limited financial resources who have had their democratic rights trampled and monster industrial monsters rammed down their throats.

Many are sick, although they are having trouble getting urban residents and to believe it, and many now own property where the value has been cut by as much as half. To ignore a situation where one “side” holds all the financial and political power while the other side struggles to make their voices heard, but not from lack of shouting and protesting, is a grave injustice.

So why are those who have found themselves living next to these industrial “farm” factories not getting more attention? Is it because of the greater good? If only that were true. Anyone who has done even five minutes of research knows that turbines are never going to solve the province’s or the world’s energy problems, despite the propaganda being spun by the wind companies and the province with its “Green Energy” Act, a brilliant piece of propaganda.

The fact is, is that the energy produced by turbines can’t be stored and they produce a fraction, (an estimated 20 per cent or less) of what they are capable of at times of the year when their energy is most needed, winter and summer. The auditor general outlined last year how the province “leapt before it looked” into this billion-dollar boondoggle that’s already costing taxpayers plenty.

A roundup of peer-reviewed health research, which is difficult to link to due to academic pay walls, from a variety of medical and science researchers can be found in the August 2011, 31(4) issue of the Bulletin of Science, Technology and SocietyAugust 2011, 31(4) issue of the Bulletin of Science, Technology and Society, and is easily available at any public or university library. In addition, the medical officer of health in Grey Bruce, Dr. Hazel Lynn, submitted a report to the Ministry Health in February that found that there is, indeed, a link between health and wind turbines. Hard data on how property values have been cut by as much as half can be found in a report done by Lansink property and appraisals here: http://mlwindaction.org/2012/10/04/new-ontario-wind-turbine-property-value-analysis-ben-lansink-aaci-p-app-mrcs)http://mlwindaction.org/2012/10/04/new-ontario-wind-turbine-property-value-analysis-ben-lansink-aaci-p-app-mrcs)

Curiously, or maybe not, is that when energy issues arise in Liberal ridings — a planned natural gas plant, for example, in Oakville, or offshore Toronto turbines that would have obstructed “the view” of Scarborough Liberals — the projects are quickly quashed. So far, Premier Kathleen Wynne, nicknamed McWynnty by those in turbine-infested locales, has had little to say beyond acknowledging, sort of, that there’s maybe a problem and that municipalities should be more involved in the siting process for wind turbines. Well, yes.

Let’s be clear. People forced to live beside wind turbines are emphatically not anti “green” energy — what they are opposed to are industrial machines that are ruining their lives, while the government, and the media, turn a blind eye to the problem.

Anne McNeilly is an assistant professor in the School of Journalism at Ryerson University who likes to vacation in Bruce County, at a place that is more than 550 metres from the nearest turbine.

 

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