By LAURIE KIEFABER
Indiana Correspondent

ELWOOD, Ind. — Developers of a 17,000-acre wind farm over four counties have requested tax abatements in Grant, Madison and Tipton counties.
The farm – with portions in Howard County – is part of a 20-year power purchase agreement between E.ON Climate & Renewables North America and Indiana Michigan Power (I&M), an operating company of American Electric Power.

Plans for the wind farm were announced May 27 in press releases from both companies. I&M has agreed to purchase 100 megawatts of wind power from the proposed Wildcat I Wind Farm, about 45 miles northeast of Indianapolis in Madison and Tipton counties and north of Elwood. Local officials speculate the name of the project stems from the Wildcat watershed in the area.
“We are excited to be expanding our wind energy business in the Midwest,” E.ON CEO Steve Trenholm said. “The Wildcat project will produce enough energy to power roughly 60,000 homes and will offer new clean energy resources to I&M’s customers.“

“Our agreement with E.ON is just another example of continuing efforts to diversify our generation portfolio,” said Paul Chodak III, president and chief operating officer for I&M. “This project will not only provide renewable energy to serve all I&M customers, it will bring jobs and provide long-term economic benefits to communities in our service territory.”

Tax abatements for the project have essentially been granted in two counties. Grant County Auditor Roger Bainbridge confirmed a 10-year abatement had been granted May 18 for a $50 million investment in buildings, substations and access roads. Another $125 million will be invested in turbines and related infrastructure. Six to 10 jobs also will be created there.

The Tipton County Auditor’s office confirmed a 10-year abatement had been granted for a $175 million investment there in equipment and real estate improvements. Four to six permanent jobs will be created there.

In Madison County, however, the county council recently voted down a 10-year tax abatement for a $175 million-$200 million investment, according to local media reports. Howard County Commissioners President Tyler Moore said officials there have not yet been approached for a tax abatement.

“We will have to wait and see what happens over next 30 days,” E.ON Communications Manager Matt Tulis said of the Madison County abatement. Madison County officials might still bring the matter back for a vote.

Tax abatements and other government assistance are needed for wind farms to start up, according to Howard County Commissioner Bill Thompson. Wind energy can’t compete directly with the economics of inexpensive coal-fired electricity generation, according to information from Purdue University’s Discovery Park Energy Center.

In the first phase of the Wildcat project, Tulis said approximately half the megawatts, and thus half the turbines, would be in Madison County, with the other half in Tipton County. The lease agreements with farmers for the first phase of Wildcat I are finalized, and company representatives are talking with other landowners for additional phases.

“Landowners typically receive a per-acre rental payment during the development term,” Tulis said. “(They receive) surface damage payments during the construction period and royalty payments during the operations term.”

One landowner who has leased his land for the project is Grant County farmer Jack Farley. He and his son have leased more than 600 acres to the company, but it’s difficult to say exactly how many turbines will be on their property in Phase II of the project. Construction on Phase II might begin in the latter part of 2012, Farley said.

“I think it can be a good thing,” he added, of the wind farm. “(The turbine) will be another obstacle in our field we have to farm around, but when you consider the monetary (gains), we can go ahead and farm around one. I’m looking forward to (the turbines being installed). There may be one every 80 acres.”

E.ON officials have set up meteorological towers to determine wind speeds and direction, Farley said. Exact turbine locations will be determined after these studies are complete. His land is in the flight path of the Marion airport, so this is a consideration as well.

Farley said there might be three different phases to the project. Other county officials have said there are two – I being Tipton and Madison counties and II being Howard and Grant counties.

“I’ve not heard any objections from my close neighbors,” Farley said. “We’ve been talking about it at least two years.”

In some areas, Farley has heard people complain about the noise made by the turbine blades. However, after standing underneath one, he’s found there’s very little noise. “I can talk to anyone and don’t have to raise my voice,” he said.

Tulis said the sound produced by wind turbines is similar to background noise found in a typical home. “Wind farms are generally located where the wind speed is higher than average, and the background sound of the wind will often ‘mask’ any sounds that might be produced by operating wind turbines,” he said.
Bainbridge said in Grant County the setbacks had been extended from what was originally planned to ensure noise would not be an issue.

Farley said another concern he has heard is neighbors “have to look at them.” Tulis said the turbine supplier has not yet been determined, but typical turbine heights are around 400 feet from the base of the tower to the tip of the blade at its highest point.

“We have transmission lines scattered around the country,” Farley said. “You get used to them. You can’t build them within 1,000 to 1,200 feet of a home or homestead, and you have to be so many feet from roads.”

Farley has been told each wind turbine takes up 1.5 acres, which includes the tower and a maintenance road.

Some farmers have not signed lease agreements with wind farm developers because of drainage tile concerns. “During the construction phase, they have really heavy equipment that will be going across the field,” Farley said. “(The weight might) break down drainage tile three to four feet down in the ground. They did say they would repair that.”

If the project moves forward, construction on the Wildcat I Wind Farm (Phase I) is expected to start before the end of this year and should be fully operational by the end of 2012. The wind power agreement resulted from a request for proposals issued by I&M in January to construct a wind farm within its service territory.

I&M Communications Manager David Mayne said E.ON was chosen for the project because of its knowledge in the field. “It’s good for us because E.ON has a tremendous amount of experience building wind farms,” he said. “They’re one of the leaders in the world. They have the experience and the economies of scale to get the project done in a cost-effective way and on time.
“We’re proud to be partnering with E.ON and looking forward to making this clean, renewable power available to our customers.”