UPC Wind And Steuben County Industrial Development Authority Finalize Agreement For Cohocton And Dutch Hill Wind Power Projects

Boston, MA - UPC Wind, a leading independent North American wind power company, recently announced that it has finalized an agreement with the Steuben County Industrial Development Authority (SCIDA), establishing the second of two major economic packages for the region as part of its Cohocton and Dutch Hill Wind Power Projects. The agreement, called a Payment In Lieu Of Taxes, or PILOT payment, will be administered by SCIDA and used to provide more than $14M in important revenue and services to the Town of Cohocton, the Wayland-Cohocton School District and the Avoca School District.

"We are pleased to have finalized our agreement with SCIDA putting in place the second major component of our economic package for the Town of Cohocton and surrounding communities," said Chris Swartley, Director of Business Development for UPC Wind. "This 20 year, $14.5M commitment complements our existing agreement with the Town of Cohocton to provide annual revenues totaling $11.5M over the first twenty years of the project. As a community partner, we're happy to help prime the region's economic engine and help support schools, roads and other critical community services."

The PILOT payments join several other significant economic benefits of the Cohocton and Dutch Hill Wind Power Projects which combined make up a comprehensive economic stimulus package for the community and surrounding region. These include:

• $11.5M over the first twenty years of the project as part of a host agreement with the Town of Cohocton.
• $14.5M over the first twenty years of the project in PILOT payments which SCIDA will administer.
• Roughly 2/3 of the annual tax burden for area Special Improvement Districts.
• $150,000 towards restoration and preservation of the historic Larrowe House and the Village Greens.

"After two years of work and thorough consideration of the many public comments received, we are pleased to have reached an agreement with UPC Wind that will help reduce pressure on property taxes, support the region's schools, strengthen local services and contribute to the overall welfare of the community, said James P. Sherron, Chairman of the Steuben County Industrial Development Authority (SCIDA). "It is through agreements such as this that we can secure the new investment and job opportunities that will contribute to advancing the general prosperity of Steuben County."

UPC Wind's first host agreement payment, totaling $725,000 was paid to the Town of Cohocton in January 2008. This payment served to help off-set property taxes in the Town of Cohocton by approximate 30 percent.

"We applaud the completion of the second major component of the economic agreement between UPC Wind and the community," said, Jack Zigenfus, Cohocton Town Supervisor. "With construction well underway on the Cohocton and Dutch Hill Wind Projects, these are exciting times for the Town of Cohocton and we are pleased to already begin benefitting from the significant increase in revenue that accompanies our role as host to the first clean, renewable wind energy project in the Southern Tier of New York."

Construction began on the Cohocton Wind Project in the fall. Upon completion, the Cohocton and Dutch Hill Wind Projects will include fifty 2.5 megawatt (MW) wind turbines. In total, the project will produce approximately 125,000 megawatt-hours (MWh) of clean, renewable electricity annually – enough to power 54,000 homes each year.

The Cohocton Wind project will become an important part of the energy mix in New York State which has set a goal of 25 percent of electricity coming from renewable energy sources by 2013. Much of this additional energy is expected to come from wind.

In addition to increasing domestic energy production and increasing energy security, wind power is considered cost competitive with conventional sources of electricity, such as oil or gas. Unlike traditional polluting sources of energy, wind has no fuel cost, therefore serving as a natural hedge against volatile fuel prices, which in most markets in the US constitutes a significant portion of monthly electricity bills. Wind power does not emit greenhouse gases or other damaging pollutants.

SOURCE: UPC Wind