Wind farm proposal expected
OREGON, Ill. — Interest in Illinois as a source of wind-generated electricity has grown in recent years and is likely to grow further, even in parts of the state initially thought to be unsuitable for wind farms, a panelist said Wednesday at a forum held to discuss the issue.
“We’re receiving inquiries from Mason County, Monroe County and other counties we did not think would be indicated based on the wind map,” said Jerry Quick, attorney for the Illinois Agricultural Association. During the past five years, Quick said, his office has reviewed at least 20 different types of contracts for wind farms across the state.
The sparsely attended forum was hosted by the Ogle, Lee and DeKalb county farm bureaus. A now-operational wind farm in Lee County was the first in the state, and Ogle County approved a project in 2005 that has since been tied up in litigation.
The DeKalb County Board approved a proposal in 2002 that would have built a 64-turbine wind farm straddling the DeKalb-Lee county line, but Florida Power & Light withdrew its proposal in 2003. It resurfaced one to two years ago, when FPL began talking to landowners about leasing land to build the 200-foot-plus-tall turbines.
FPL is expected to come before the county board with a new proposal before the end of the year, DeKalb County Administrator Ray Bockman and County Board Chairwoman Ruth Anne Tobias said in separate phone interviews Wednesday.
Landowners presented with lease agreements by energy companies should be very cautious and, at least initially, ignore the amount of money in the lease, Quick said.
“Leave the compensation for the very end, because based on all the landowners I’ve spoken to, other things are more important, and you need to be comfortable with those first,” Quick said.
He suggested that landowners carefully read the lease themselves, then review it with an attorney. Among key questions to ask are what land is included, how long the lease or easement will last, and what rights the developer has. Landowners should also be satisfied with what will happen to the turbine at the end of its life span, which the industry estimates to be about 25 years.
Lee County Chief Assessment Officer Wendy Ryerson said state legislation passed last year creates a uniform property tax assessment for wind turbines.
Because the energy company pays the tax on the turbine, the land it sits on and the lane leading up to it, that property is assessed separately from the rest of the landowner’s parcel, she said.
The property tax is based on a turbine’s nameplate capacity, or the maximum amount of energy it is capable of producing in one hour running at full capacity. Land appreciation and equipment depreciation are also factored into the formula, she said.
Ryerson said a typical 2 megawatt wind turbine would be likely to generate about $18,000 in property tax in a year, depending on local factors like the tax aggregate.
By Dana Herra
28 August 2008
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