PEI gets $1.2 million in turbine compensation

subscribe

The PEI government has received $1.2 million in compensation from wind turbine company Vestas to cover the cost of energy lost while the turbines in East Point weren't operating in 2008.

The province spent close to $50 million to buy 10 Vestas turbines for its East Point wind farm in 2007, including a five-year warranty and maintenance package at a cost of $1 million a year.

The warranty came into effect in the spring of 2008, when trouble emerged in the gear boxes of the turbines. They had to be replaced in each turbine. Vestas paid for the repairs, but the turbines were down for months, so there were increased costs because of the lost electrical generation.

"What the agreement was when we purchased these ones was, if they're down for any amount of time because of this new technology you're using, you will have to pay us what we would have been getting from Maritime Electric," Energy Minister Richard Brown told CBC News.

Brown said the turbines are now working fine. The warranty runs to 2012, but Brown said the province intends to extend it.

"Once the five years is up we'll sign a year-over-year warranty or maintenance agreement with them. If anything happens then they come in and fix it up at that time," he said.

Brown said the $1.2-million payment will likely be reinvested into more wind turbines in the future.

Related News

tucson line workers

Cost, safety drive line-burying decisions at Tucson Electric Power

TUCSON - Though wildfires in California caused by power lines have prompted calls for more underground lines, Tucson Electric Power Co. plans to keep to its policy of burying lines selectively for safety.

Like many other utilities, TEP typically doesn’t install its long-range, high-voltage transmission lines and distribution equipment underground because of higher costs that would be passed on to ratepayers, TEP spokesman Joe Barrios said.

But the company will sometimes bury lower-voltage lines and equipment where it is cost-effective or needed for safety, or if customers or developers are willing to pay the higher installation costs

Underground installations generally include additional engineering…

READ MORE
dwight ball

N.L., Ottawa agree to shield ratepayers from Muskrat Falls cost overruns

READ MORE

electricity in restaurant

Extensive Disaster Planning at Electric & Gas Utilities Means Lights Will Stay On

READ MORE

renewable wind power

Renewable power developers discover more energy sources make better projects

READ MORE

solar power

Energy-insecure households in the U.S. pay 27% more for electricity than others

READ MORE