As the hot summer of 2002 was coming to a close, Catamount Energy Corporation knocked on Magic Mountain’s door. The company, a subsidiary of Central Vermont Public Service (CVPS) based in Rutland, asked the owners of the perennially cash-strapped ski area if they would be interested in leasing ridge-top land for a proposed $58 million, 27-tower wind farm.
The lease could provide a—dare we say it?—windfall. In addition to the lease payments, Catamount Energy would pay the ski area a royalty based on gross receipts of electricity sold. Power from the wind farm would provide enough electricity for three to ten percent of the state’s capacity, and once the electricity entered the grid, it would likely remain in Vermont. Magic, however, would not receive power directly from the towers.
“They came by the mountain one day last fall and approached us with the idea,” said Cindy Creteau-Miller, one of five partners who purchased Magic at a foreclosure auction last August. “Our knee-jerk reaction was excitement. It would be additional income to carry us through the summers.”
“It’s a good deal for a ski area,” says Robert Charlebois, managing director of Catamount Energy. “It’s nice passive income.”
Catamount Energy chose Magic Mountain—or Glebe Mountain as it’s officially called on topographic maps—for several reasons, the primary one being its optimal north/south alignment to prevailing winds. The company was also looking for a ridge with existing development and road access—a mingling of new and existing uses that many state permitting agencies are encouraging.
The company’s site evaluation initially covered all of New England, says Charlebois. “We looked for wind resource, transmission interconnect ease and attractive market conditions. These were the first level of criteria. That identified about 46 sites. We layered on more criteria, like community acceptance and ease of regulatory review. This narrowed it down to eight or nine sites. We picked Magic from that lot.”
The ski area itself sits on only a portion of the three-mile-long ridge-top in question, but the neighboring landowner is also in favor of the wind farm. Although the project is still in its early stages, Catamount Energy has already signed leases with Magic and its neighbor.
Wind Farming in the U.S.
Wind has been used as a power source for millennia, but modern-day wind farming, with power going into the grid, got its start in Vermont. In 1941, CVPS constructed a utility-scale wind turbine on a mountaintop in West Rutland, Vt. Ironically, wind damaged it several years later, and it was eventually dismantled. In the 1970s, interest in wind power picked up during the energy crisis. As oil prices skyrocketed, companies invested in wind turbine technology R&D, which has led to the development of the current “extraordinarily reliable” wind turbines, as Charlebois calls them. Now, according to the American Wind Energy Association (AWEA), 50,000 wind turbines around the world are generating power. In Denmark, wind supplies 15 percent of the nation’s electricity demands. In the U.S., wind provides less than one percent of our energy needs—enough to power about 1 million homes.
As of January 21, 2003, the total installed wind energy capacity in the U.S. is 4,685 megawatts—more than double the amount generated five years ago. According to Charlebois, wind energy is the fastest growing electricity generating sector in the world for several reasons—a fact that has not gone unnoticed by Catamount Energy, which now focuses solely on wind-powered projects. With current technology, wind energy costs about 5 cents per kilowatt-hour, a price competitive with other forms of electricity generation. Wind energy is also clean and renewable. And landowners, particularly farmers, see wind farms as a way to generate extra income. The AWEA estimates that a single wind turbine can provide $2,000-$4,000/year in income even though only three to five percent of the land within the wind farm boundary is used for turbines and access roads, leaving the rest of the land available for crops or grazing—and winter sports.
The Proposed Wind Farm at Magic
With its eye on the favorable economics of wind farming, Catamount Energy is proposing to build 27 wind towers along the three-mile ridge that’s home to Magic Mountain. The proposed towers have a hub height of 200 feet with three 126-foot blades rotating on a turbine in the hub. Total tower height is about 330 feet, and rotor speed is 16.8 revolutions per minute. Each would generate 1.5 megawatts of power—enough for 1,000 homes. With the 27 towers, Charlebois says that the project could produce nearly 10 percent of Vermont’s average energy demands. The power would enter the grid via a powerline, but the location of this line has yet to be determined.
Although Charlebois cannot say how much land each tower will need until wind studies are completed, he did say that the towers would be placed about 500 feet apart and would sit in a line parallel to the ridge (and thus, perpendicular to the ski trails). The AWEA estimates that a ridge-top tower needs about two acres of land.
The wind towers would be visible from the ski area but would be set back from the trails at the summit of the ridge. Although skiers would see them, they likely would not notice the noise. At a distance of 750 to 1,000 feet away, the newest wind turbines are no noisier than a kitchen refrigerator, says Charlebois.
Potential Income
Neither Charlebois nor Creteau-Miller would divulge exact numbers about potential income to the ski area. But using the median of the AWEA income estimate ($3,000/year) from a single utility-scale turbine, the entire 27-tower project would generate $81,000/year. Although fewer than one-half of the 27 wind towers would stand on Magic’s land, simple arithmetic shows that 13 towers would generate about $39,000 annually for the ski area.
“We’re excited about having extra money to make improvements every summer,” says Creteau-Miller. Although she says Magic is back on “solid ground” after the foreclosure auction last summer, the ski area is in sore need of infrastructure improvement. Just ask any of the 175 skiers stranded for 3 hours in a broken chairlift right after Christmas.
“Any extra income in the ski business is welcome,” adds Creteau-Miller, “It’s like farming. We’re both weather dependent. If we can generate another $40,000 to $50,000 a year, that’s great!”
The town and state would also benefit. Not only is Magic one of the largest employers in the town of Londonderry, but Catamount would pay property taxes. The company estimates that, as proposed, the wind farm would pay $25 million in taxes over its life. Of that total, about $5.5 million would go directly to the town.
An added benefit is tourism, says Charlebois. “Data suggests that wind farms do attract tourists,” he says, pointing out that a wind farm near Barcelona, Spain, attracts over 215,000 tourists annually.
Current Status
In March 2003, Catamount Energy erected a meteorological test tower that will gather wind data for the next 12 to 24 months. This wind data will determine how many wind towers the energy company will ultimately construct. Catamount will also begin surveying the ridge top and conducting impact studies. Charlebois estimates that the project will be up and running in 2005.
Although the project has many supporters, it also has some detractors. Those in favor see the wind farm as a way to generate clean energy using already-developed land. But others think the towers will obstruct the view and are vehemently opposed. Critics of the project have created a three-page leaflet titled, “Wind Turbines Are Not Magic.”
The ski area and town are currently working with locals to address their concerns. At the annual town meeting in March, Londonderry voters approved a request that the town spend $25,000 to investigate the wind farm. Nonetheless, a group of about 70 people, many of them second-home owners, have retained a team of lawyers to investigate (and oppose) the project.
The debate highlights the difficult energy choices Americans face. Although 27 wind towers that are taller than any building in Vermont would definitely impact the view—for better or worse—Charlebois says that wind farms are needed in the state. Vermont’s current energy demand is around 600 megawatts, 550 of which are generated out of state. “Any electrical generation which can be produced locally should be encouraged,” he said.
Charlebois also says that Vermont, with its many high peaks and ridge lines, has enough good sites to reasonably assume that at least 25 percent of the state’s generation needs can be provided locally. But he won’t say if any of those sites are on ski area land.
