Wind farm does well in first year

By Joe Kafka, Associated Press Writer | Saturday, October 09, 2004

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HIGHMORE - Standing against the broad horizon like tall tin soldiers with flailing limbs, 27 turbines thrash the air in tempo, turning wind into electricity.

The whir of the 110-foot propeller blades atop 213-foot towers is the sweet sound of money to LeRoy Ratzlaff, 76, and his wife, Rena, 74. Seven of the giant windmills perch on their land, and the rental payments provide them extra income and boost the fortunes of the county and nearby Highmore, population 850.

"I can't think of any drawbacks to a wind farm at all," LeRoy Ratzlaff, who raises cattle and wheat, said.

"It's been no problem as far as our farming and ranching operation goes. Maintenance personnel have been very careful about keeping the gates shut, and our activities go on as usual."

The Hyde County wind farm, built by FPL Energy of Juno Beach, Fla., began making electricity in October 2003 and will start making money for the Ratzlaffs and other landowners in December, when they get their first annual payments.

The power is sold to Basin Electric Power Cooperative of Bismarck, N.D., and then marketed to East River Electric Power Cooperative at Madison and Rushmore Electric Power Cooperative in Rapid City.

The wind farm began operating last October.

Dean Peterson, former Hyde County Commission chairman, said it's the most important local development in this area since the rural electric system was built decades ago.

Benefits from electricity produced by unrelenting prairie winds - a scourge for early settlers blasted by summer dust and winter blizzards - can boost struggling rural economies and feed the electrical needs of urban centers.

"I tell people, the wind we've got in South Dakota is at least good for something," Ratzlaff said.

For centuries, farmers have used small windmills to pump water for livestock. Decades ago, windmills generated the first electricity for isolated farms and ranches until utilities finally reached them.

Helped by a federal tax credit, wind energy has become economical. Both large and small companies are diving into the business.

Jim Edwards, assistant general manager of operations at East River Electric, says the wind farm's output has exceeded expectations.

"The Highmore wind farm is performing much better than anticipated and, to date, has averaged a capacity factor of roughly 40 percent, which is very good," Edwards said.

A wind farm's capacity factor is the actual energy produced during a certain period divided by the energy that would have been produced if turbines had run at maximum output. A capacity factor of 30 percent is considered good.

"So far, the Highmore project has the best output and performance of wind farms that the cooperatives in South and North Dakota are involved in, which includes a sister project to the Highmore project near Edgeley, N.D.," Edwards said.

The $42 million Hyde County wind farm can churn out enough power for 10,000 homes. FPL also put $65 million into the Edgeley complex, a 61.5-megawatt wind farm.

The American Wind Energy Association says North Dakota, which is ranked No. 1 in wind energy potential, is 13th in actual wind-farm output. South Dakota is ranked fourth in wind power potential and 17th in wind energy production.

If both states maximized their wind potential, it is estimated they could supply the needs of nearly 64 million homes.

By comparison, the six Missouri River dams in Montana and the Dakotas have a hydroelectric capacity of 2,436 megawatts, or enough output for about 609,000 homes.

The 2003 South Dakota Legislature helped the Hyde County project by providing major tax breaks for wind farms. Property taxes are paid only on the huge concrete foundations and the steel towers for wind turbines. The expensive turbines and blades are not taxed.

Connie Konrad, Hyde County auditor, estimates FPL will pay $222,000 in annual property taxes to schools, the county and a local water district.

Robert Bowdon, Hyde County Commission chairman, says he has been told that an FPL study showed extremely good wind potential on the ridge, which stretches about 100 miles from southern Hughes County to Wessington Springs in Jerauld County.

"They said this is the best constant wind area in the United States," he said.

Aside from the revenues, the wind farm is also a bit of a tourist attraction.

"We've had several busloads of people that have included the wind farm with their stops, like going to the state Capitol," Bowdon said.

Ratzlaff agrees that sightseers are fascinated by the turbines, adding that the giant machines are surprisingly quiet.

"There is a little bit of a noise from the turbines, but we can't hear it inside the house," Ratzlaff said. "It all depends on how hard the wind is blowing. If the wind is real strong, we can hear a chop-chop sound as the blades are going around. But if the wind is lighter, we can only hear a slight hum."

John DiDonato, FPL director, says only that electrical output at FPL wind farms in the Dakotas has met expectations. He does not elaborate. Harnessing the wind is a competitive business.

But DiDonato says FPL is interested in building more wind farms in the Dakotas if sufficient transmission lines are built.

"The wind profile of those states is extremely good," DiDonato said.

FPL is the national leader in wind energy, with 43 wind farms in 15 states.