Monday, May 15, 2006

Cape Wind: shoveling public money into private pockets

A new Beacon Hill Institute report on Cape Wind cash flow over the projected 25-year life of the facility found that 77% of the construction costs will be paid for by subsidies and tax credits, i.e., by the public, or 48% of its operating revenues. Only 20% of that public money will be returned to the public (in tax payments). Meanwhile, the analysis found, Cape Wind's investors will enjoy a 25% return on their equity.

Only 54% of the facility's revenue will be from electricity sales. Thirty-one percent will be from the sale of Massachusetts green credits, 11% from the federal 10-year production tax credit, and 4% from federal accelerated depreciation.

The press release is available here, and a 200-KB PDF of the report is available here.

Note to investors: Don't count on that 25% return. This analysis apparently uses projected production figures from the Cape Wind company itself, which are grossly inflated. They're lying to you, too.

wind power, wind energy, environment, environmentalism, anarchism, anarchosyndicalism, ecoanarchism