Thursday, April 26, 2012

The Rich Get Richer: General Electric Gets $1.5 Billion in Oregon

Robert Bryce and Stephen F. Hayward:
"U.S.-based General Electric has a starring role in one of the most egregious examples of renewable-energy corporate welfare: the Shepherds Flat wind project in Oregon. The majority of the funding for the $1.9 billion, 845-megawatt project is coming from federal taxpayers. Not only is the Energy Department providing GE and its partners — which include Caithness Energy, Google, and Sumitomo — a $1.06 billion loan guarantee, but as soon as GE’s 338 turbines start turning at Shepherds Flat, the Treasury Department will send the project developers a cash grant of $490 million."
Apparently the deal was so egregious that even Obama
"energy-policy czar Carol Browner and economic adviser Larry Summers wrote a memo saying that the project’s backers had 'little skin in the game' while the government would be providing 'a significant subsidy (65+ percent).' The memo goes on to say that, while the project backers would only provide equity equal to about 11 percent of the total cost of the wind project, they would receive an 'estimated return on equity of 30 percent.'”


MAX Redline said...

The SF wind farm pays off in more ways than that. They've truly learned the fine art of farming - in which government pays the farmer to grow nothing: during periods of peak flow, BPA will pay wind-farmers to shut down the turbines.

T. D. said...

[Face palm] Yep. The rich get richer because they have the connections to milk the system.

Ten Mile Island said...

Jealousy, gentlemen, is unseemly.

T. D. said...

TMI, it's only jealousy when you really would like to be them. Heh.

A good name is to be more desired than great wealth . . . .
Prov. 22:1a