Last month, FPL Energy, the Florida company that won the bid to build, own and operate the 40-turbine wind farm 3.5 miles off the Island's South Shore, said in a letter to LIPA that it was adjusting the anticipated costs for the project to $697 million. The original projection, in 2003, was $356 million.

A perfect example of how markets operate. Since wind power is cheaper than other forms the equipment makers can raise their prices until they are just slightly better than the alternatives. But since the cost of the competitors can't be foreseen over long periods of time it raises the risk level for these new projects. The same thing is happening with nuclear as the price of Uranium has been rising rapidly.

This affects plans for alternative energy because risky investments are less likely to get built.

Policies not Politics
---- Daily Landscape