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If the State, or even local governments, aimed to own the community wind farms ... well, that's politically dicey. But farmer coops are ... well, they're normal things, nothing unusual about them at all.

There is more than one way to skin a cat.  There's a growing backlash against the use of property tax abatements for economic development in several states.  And I think that if you end these property tax abatments and the like, you could have local governments for city banks where the charter requires the loans be made only locally, and the city and county governments take a non conrolling interest in the project.  It's no different than the control of corporations that public pension funds have.  

So this way you can have the governemnt determining development with the promise of subsidized cash loans for start ups, instead of allowing large companies to evade their social repsonsibility.

Soft socialism of this variety, where you have localized finance, and a leading role for the government is something that is far easier to sell in North America than outright government ownership even of things like utilities.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sat Aug 25th, 2007 at 11:03:53 AM EST
[ Parent ]
I think this is OK in theory, but in the current US environment, Federal intervention would be a calamity.

  • They wouldn't use their buying clout to stimulate efficiency
  • They'd favour their know-nothing cronies
  • They wouldn't have any environmental location parameters

But I could see it working at State level. And read Chris Cook for how that might work. Legal cooperation between State (coordination+legal), Utility companies (buying say, 10 years supply of a certain megawattage at a fixed price), and consumers (buying 10 years supply as above). The State could also buy.

For consumers there might be two rates, one pay as you go, the other where you can buy as many units as you like providing you have the funds (which you could also borrow)

I would have thought that 10 years would pay back the investment,  however the funds come in.

But the US government might change in 18 months - then it could be proposed at a Federal level. Or rather, projects like this should be outlined and presented to selected Democratic candidates as very smart solutions to the energy problems.

You can't be me, I'm taken

by Sven Triloqvist on Sat Aug 25th, 2007 at 11:38:26 AM EST
[ Parent ]
An interesting example.

It's taken them ten years, but they're finally ready to start on the UK's first community-owned and community-funded wind farm.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Sat Aug 25th, 2007 at 07:20:18 PM EST
[ Parent ]
Energy4all calls itself a more-than-profit organization ;-)

You can't be me, I'm taken
by Sven Triloqvist on Sun Aug 26th, 2007 at 03:36:56 AM EST
[ Parent ]
They use Victorian vintage "Industrial and Provident Societies" (ie the genetically modified Companies the Cooperative movement uses in the UK) plus a good dose of borrowing.

But it's better for the Community than private development, I grant you, where you're lucky if the Community gets a new bus-shelter....

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Aug 26th, 2007 at 04:49:23 AM EST
[ Parent ]
I was being positive ;-)

'More-than-profit' is a good start as a meme in the present

You can't be me, I'm taken

by Sven Triloqvist on Sun Aug 26th, 2007 at 05:27:06 AM EST
[ Parent ]
I admire both the people and what they are doing.

But they are doing it with both hands tied behind their backs!

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Aug 26th, 2007 at 05:38:35 AM EST
[ Parent ]
I agree, noting everything that you have told us about new wrappers/models for cooperation.

Maybe this is the time to think about 'Organize (Your country here)' being as important for the future as 'Energize (Your country here)'?

You can't be me, I'm taken

by Sven Triloqvist on Sun Aug 26th, 2007 at 05:58:03 AM EST
[ Parent ]
Right on the button, as usual, Sven.

How can we "Energise America" when it's "organised" the way it is?

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Aug 26th, 2007 at 07:20:16 AM EST
[ Parent ]
To reclaim the 'means of production' and thereby redistribute wealth more equitably - this is what we have to accomplish. We need to demonstrate that cooperatives/LLPs/self-organizing systems, and all the other alternative non-hierarchical organizational systems can be more efficient, more motivated, more rewarding, more flexible and more socially oriented.

We need to show that 'cutting the fat' is no cure for the obesity of capitalist society. The concept of redundancy and decentralization in a structural system (the brain being a good example) is not an illustration of 'waste', but one of the main features of a healthy and complete ecosystem - as society should be, and as the planet should be.

My pet peeve is monocultures. Apparently efficient and apparently more productive, with all 'fat' cut away, they are indeed more efficient and productive - for quite long periods of time. But they are also dangerously susceptible to total and cataclysmic collapse.

Diversity is what we need to encourage, respect and to ensure.

You can't be me, I'm taken

by Sven Triloqvist on Sun Aug 26th, 2007 at 09:06:43 AM EST
[ Parent ]
btw, just across the border from the Dakotas in Minn are the first examples of farmer-owned or community wind projects in the US.  and they're growing.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin
by Crazy Horse on Sun Aug 26th, 2007 at 07:26:36 PM EST
[ Parent ]
...and John Deere himself is financing.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin
by Crazy Horse on Sun Aug 26th, 2007 at 07:27:23 PM EST
[ Parent ]
We need to demonstrate that cooperatives/LLPs/self-organizing systems, and all the other alternative non-hierarchical organizational systems can be more efficient, more motivated, more rewarding, more flexible and more socially oriented.

The problem is that none of these will make a difference if the motivation behind them remains exploitative.

There's no reason why a traditional market economy can't be run in a socially sustainable way. Increase progressive taxation, especially on unproductive speculation, fund innovation and sustainability, move money towards effective social programs - and so on.

The measures have been tried, they work, and there's no reason they couldn't work again.

What really needs to be changed is the motivation of the players. The Anglo-Saxon disease is based on the principle of fuck-you, and with the right culture fuck-you is just as likely to take over a non-hierarchical corporation as a hierarchical one.

Nothing will improve until the fuck-you narrative is debunked and replaced with a more culturally sustainable and inclusive ideology.

Until then elites will continue to see workers, customers and shareholders as resources to be exploited, and not as equals to be respected.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Aug 27th, 2007 at 11:39:40 AM EST
[ Parent ]
Not to speak of the little detail that to claim our hierarchical human structures are not the result of self-organisation is untenable.

Can the last politician to go out the revolving door please turn the lights off?
by Carrie (migeru at eurotrib dot com) on Mon Aug 27th, 2007 at 11:45:13 AM EST
[ Parent ]
 
The problem is that none of these will make a difference if the motivation behind them remains exploitative.

Which is why the requirement is for a framework within which it is to my advantage to cooperate with you/ work WITH you rather than to compete with you/ work FOR you, because we are "both on the same side".

That's what an "Open" Corporate like the UK LLP and its (non-Corporate) US relative, the LLC,  enables, and why the structures I advocate are emerging.

Because they WORK.

They do so by bringing the different stakeholders together "inside the box" rather than leaving them as "costs" to be exploited outside it.

A non-hierarchical "Corporation" is still a Corporation, and it suffers from the fundamental faultline of all Corporations - whether or not "For Profit" - between the interests of the "Principal" Owner, and the "Agent" ie the management, whether they structure themselves hierarchically or not.

Production/revenue sharing between Capital provider/ Investor and user of Capital changes all that. It brings them on to the same side, takes the motivation of "self interest" and turns it around so that our self interest is actually served better by working WITH each other openly, transparently and cooperatively.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Aug 27th, 2007 at 12:19:13 PM EST
[ Parent ]
Yes, but there's nothing to stop - for example - all of us on ET getting together to sell widgets we've designed, setting up an LLP, and then using Chinese sweatshop labour to make the widgets, while we share the profits between ourselves. (Doubtless very equitably.)

LLPs are an answer - one of many - if the desire is there to be ethical in the first place.

If it's not, they do nothing to force ethical behaviour.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Aug 27th, 2007 at 01:33:22 PM EST
[ Parent ]
Of course: you can't make a silk purse out of a sow's ear.

And conversely, lots of people succeed in trading ethically despite the incentives built in to the system to do otherwise.

Bu then there's nothing to stop the Chinese widget makers clubbing together in their own "People's Corporate", nicking our widget design and selling the widgets directly to our customers on the Net....

My thesis is that a Cooperative of service users, working with a Cooperative of service providers, is actually both an ethical and an optimal structure, and that those enterprises that do not use the structure will be at a disadvantage to those that do.

I guess we'll have to see if I'm right...

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Aug 27th, 2007 at 01:48:38 PM EST
[ Parent ]
There's a growing backlash against the use of property tax abatements for economic development in several states.

True & a Good Thing, IMNSHO.

What techno and his friend are proposing is different.  200,000 windmills (or even 20 windmills) plus all the infrastructure required cannot be placed onto a couple of trucks and hauled elsewhere.  Nor is the project, like a sports stadium, one of those nice 'economic development' projects where the private owner(s) gather all the income and the public entity gather all the bills.  

A cost/benefit analysis (hint, hint) will reveal the number of windmills for the project, the point at which manufacture of the windmills in-state is economically feasible (break-even,) the point at which manufacture is beneficial (don't forget to include making the spare parts for service & repair!,) and the potential for selling windmills to other installations.  

Speaking to the latter, the manufacturer would be much better off in the long term by selling the windmills at cost plus a little bit and taking the rest of their profit long term, either as a percentage of power, sales, or defined yearly payment.  

Also, selling service contracts is a real money spinner.  That's how IBM made their money in the mainframe days.  Their junk wasn't any better than anyone else's junk but, if you paid them, they would send a repairman out to fix their junk when it broke down.  A not-so-obvious benefit from this is - since you aren't an Idiot, you'll listen - the field service people will be able to tell you where the equipment is failing, how it is failing, and (sometimes) how to change things to fix the failures.  This is the best of all worlds since your customers are paying you to learn how to better manufacture your product and the better your product is the more you can sell.  

I'm not a materials engineer so take the following with much salt:  there are some very exciting materials being reported.  You & friend are in the position to take advantage of them as you do not have an established manufacturing base AND the producers of the materials are, putting it bluntly, hungry they should be willing to help you use the materials in your design.

And what most of this response has to do with MfM's comment escapes me, but WTH.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sat Aug 25th, 2007 at 01:45:23 PM EST
[ Parent ]
... an in-state manufacture threshold is a serious concern. The real long term money flows are in the sales of the electricity itself as a durable export base ... and the trick is to ensure that the ownership is, in fact, in-state, so that its not just the wages for maintenance workers that re-circulate in South Dakota.

Which is why I proposed the seed corn approach to establishing the wind farms.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Aug 25th, 2007 at 02:44:44 PM EST
[ Parent ]
Depends on how many they put in SD.  If they are erecting 200,000 of the darn things transportation costs become a major expenditure.

Your proposal and my off-the-cuff remarks are actually complimentary.  

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sat Aug 25th, 2007 at 03:03:40 PM EST
[ Parent ]
... yes, but if they are assembled in SD, the components will still be produced elsewhere, and then there is the issue of whether the assembly should be closer to the component production or closer to the point of installation.

If they are being installed elsewhere at the same time, then it could well be that the assembly into the component units for on-site installation would be somewhere along the rail lines between Chicago and South Dakota, with component production spread through the Great Lakes states and Toronto.

Indeed, off the cuff, that might also be the most natural approach for organizing a coalition in support of the electricity export infrastructure, as into Minnesota and then into the industrial Great Lakes would be a natural direction for electricity export ... especially if it involves an HVDC bacbone tied into local grids in parallel to the regional HVAC distribution grid.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Aug 25th, 2007 at 06:07:49 PM EST
[ Parent ]
I really like the idea of municipalities and states taking non controlling stakes in these facilities, and working to raise funds locally.  The unique system of social finance in Navarra allowed them to embrace renewable energy.  Navarra is set to be 100% renewable for electricity by 2010.  Which is simply incredible.  The cajas played a huge part in this.

Another possibilit for organizing finances might be a stakeholding instiution built around the National Farmer's Union, to market electricity, and allow for collective action.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sat Aug 25th, 2007 at 03:04:06 PM EST
[ Parent ]
In that, I would expect that it would be least controversial for the state to take a stake in the distribution system, and for communities to take a stake on local wind farms themselves ... and, indeed, a community stake would not be hard to build into a farmer's co-op system.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sat Aug 25th, 2007 at 06:09:09 PM EST
[ Parent ]
I think that Gamesa Eolica, a spanish turbine manufacturer has some production facilities in Minnesota.
They've expanded rapidly in the US over the last few years, but there's still a lot of run for growth.

The big problem with the mountain west (in which I include South Dakota is that it makes little sense to send power produced in South Dakota to market in Chicago, because there are significant losses in efficiency sending it that great a distance.  Migeru wrote on this a while back.

Far better is to investigate the placement of wind turbines on the Western Coast of Michigan, and in the relatively shallow waters of lake Erie.  These locations are much better than the West, and there's a shorter trip to market.

Looking for example at Nebraska, there's relatively small areas of Class 3 or higher commerically viable wind areas.  The South Dakota maps are held private, but compare this to the offshore and lakeshore capacity in Western Michigan and Northern Ohio where class 4 and 5 wind areas predominate.

Even better it's very close to a market, so you don't have the transmission issues.  Thirdly, you have a ready made consumer for overnight capacity in the electric arc furnaces churning out steel in these regions.  A second use might be to develop deep lake water cooing systems for the greater Chicago area.  All of which could make Chicago an even greener city.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sat Aug 25th, 2007 at 03:00:24 PM EST
[ Parent ]
Wind power from South Dakota will be naturally complementary to windpower off the Great Lakes, because they are far enough apart to be statistically independent sources of wind energy, reducing the total energy storage infrastructure required per Terawatt.

The numbers obviously have to be run up, but offsetting the additional transmission costs of windpower from SD is the additional installation and maintenance costs of offshore windfarms.

Indeed, if substantial wind power is installed in the eastern fringe of Lake Michigan and across Lake Erie, then the HVDC transmission from Northeast Ohio through Chicago into Wisconsin could well end up being shared between transmitting power from west to east and transmitting power from east to west. That would reduce the share of the infrastructure costs that would have to be carried by High Plains windfarms.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Aug 25th, 2007 at 06:16:56 PM EST
[ Parent ]
And what most of this response has to do with MfM's comment escapes me, but WTH.

Well, since Sven gave me a mention in his response to MfM I thought I might as well rise to the bait, and follow up the very useful points made.

It seems to me that an enterprise  model (ie legal and financial structure) is needed that aligns the interests of the turbine producer, developer and the "Community" (who in my book should own turbines).

The requirement is for a model that minimises the total cost of the hardware over time, and that is IMHO a quasi leasing model.

ie bring in the turbine manufacturer as a "manufacturer/operator partner" in an Energy Partnership (LLC or LLP) so that his profit margin:

(a) in producing the turbine; and

(b) in servicing it;

are paid for by allocating to him an agreed proportional "Equity share" in the turbine's production.

The result - particularly if an amount of production were dedicated to depreciation/replacement - could essentially be a sort of "evergreen lease".

The actual "costs" ie whatever amount the turbine manufacturer has to find to pay HIS suppliers, would be funded by selling to Investors units of electricity from the "Pool" of future production.

The resulting "energy debt" would constitute:

(a) an interest-free loan which would be repayable in units of electricity, or their sale proceeds at the market price;

(b) a direct investment in future production of electricity (and a "hedge" against energy price inflation).

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sat Aug 25th, 2007 at 03:23:17 PM EST
[ Parent ]
Also, selling service contracts is a real money spinner.  That's how IBM made their money in the mainframe days.  Their junk wasn't any better than anyone else's junk but, if you paid them, they would send a repairman out to fix their junk when it broke down.

Yeah. Actually, they would stick a flunky in your installation (or a whole lot of them, if needed) to fix stuff in minutes. I was one of them.


Capitalism searches out the darkest corners of human potential, and mainlines them.

by geezer in Paris (risico at wanadoo(flypoop)fr) on Sun Aug 26th, 2007 at 12:31:44 AM EST
[ Parent ]
...
And I think that if you end these property tax abatments and the like, ... and the city and county governments take a non conrolling interest in the project.

... that is, leaving out that particular mechanism and looking at the overall outcome, would be to do this:

if the State of South Dakota wanted to pursue that model, it could commit to building the long distance infrastructure, and fund start-up generators for wind farm coops, organized as owned by the farmers whose land would be used. In return for the wind generators, the coops would commit to investing a certain percentage of their revenue into expanding the wind farm.

If the coops are state chartered public interest corporations, the commitment to return a share of the revenue into generating capacity expansion, provided the available wind resource and market, could be built into the charter.

In reversing energy from being an import into the state to being an export from the state, then the increase in incomes generated within the state yields the state's financial stake in the individual cooperatives.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sun Aug 26th, 2007 at 06:12:50 AM EST
[ Parent ]

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