A BET ON THE PTC’S EXTENSION PAYS OFF

First Wind Gambles On PTC Extension - And Wins

Mark Del Franco, 15 January 2013 (North American Windpower)

“Faced with the prospect of being saddled with wind energy assets unable to be financed, many wind developers abruptly halted projects that could not be completed in time to qualify for the wind energy production tax credit (PTC), which was slated to expire at the end of last year.

“However, in looking over its portfolio, Boston-based developer First Wind realized that several of its projects were in the latter stages of development and were too important to merely be put on hold…[though in anticipating the extension that came December 31, it took a risk]…[When] the PTC was extended for one year…the developer's gamble paid off…First Wind expects to begin construction on 500 MW this year and plans to grow its portfolio by 50% in the future…”

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“…The PTC extension allows First Wind the time necessary to begin building projects, such as Oakfield, a 150 MW wind farm in Maine that the developer deemed too important to shelve…Maine’s Supreme Judicial Court recently upheld the building permit, thus allowing First Wind to begin construction on the project this year…[T]he company’s 48 MW Bowers Wind Project [in Maine]…was aided by the PTC extension…

“The PTC extension means First Wind’s two Maine wind farms will begin construction this year. In addition, the company could break ground on late-stage projects in Oregon, Washington, Idaho, Utah and Hawaii by year-end…[But before] First Wind can begin further development, it must await guidance from the U.S. Treasury Department on what it means to begin construction - not that it will deter First Wind, which spent much of last year toiling behind the scenes…”

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