South Dakotans Offered Local Wind Investment
July 23, 2010
SIOUX FALLS, SD -- A first-of-its-kind public investment opportunity for wind development was announced today by the creators of the South Dakota Wind Partners™, LLC (SDWP) during a press conference held Friday, July 23, 2010 at the Holiday Inn City Centre in Sioux Falls, S.D.
East River Electric Power Cooperative, the South Dakota Farm Bureau Federation, South Dakota Farmers Union and the South Dakota Corn Utilization Council have joined together to create SDWP.
SDWP Board President Jim Burg says that the formation of the South Dakota Wind Partners is an exciting project that opens the door for South Dakotans to become engaged with wind energy. “Through SDWP, for the first time, South Dakotans have the opportunity to become personally invested within this green energy source as it continues to grow.”
SDWP will own seven turbines adjacent to Basin Electric Power Cooperative’s 151 MW (101 turbines), Prairie Winds SD1 wind project in south central South Dakota’s Jerauld County. This community-based, locally-owned wind project will operate 10.5 megawatts of clean electrical generation, to power South Dakota homes, farms and businesses. Prairie Winds SD1 has agreed to operate the SDWP wind farm and purchase all of the electricity it produces.
For several years, individual ownership opportunities for wind energy development have been deterred by the federal tax code, which does provide significant tax incentives, but has typically favored large equity investors.
“This project represents a re-balancing and expansion of the value proposition that wind can bring to not only South Dakota, but across the nation with this model,” said Jeff Nelson, East River Electric Power Cooperative General Manager.
Historically, wind projects have depended on federal production tax credits (PTC), however with the recent economic down turn, the ability to use the PTC has been limited. Passage of the American Recovery and Reinvestment Act (ARRA) in February 2009, created a new tax option in lieu of the PTC, which provides a cash payment (tax grant) of up to 30% of the qualifying project costs.
This tax grant opened a new local wind opportunity for small investors to access government incentives and tax benefits allowing development of smaller, locally-owned wind projects. The SDWP offering will be selling ownership (shares) and debt (notes) in different combinations. The investment, open only to South Dakotans, will pay up to a 7 percent interest rate on the notes.
Investor meetings will begin on August 2nd at the locations listed below:
*Mitchell, August 2, Ramada Inn, 2 p.m. and 7 p.m.
*Wessington Springs, August 3, Springs Inn Café, 2 p.m. and 7 p.m.
*Oacoma, August 4, Oacoma Community Center, 2 p.m.
*Huron, August 4, Huron Events Center, 7 p.m.
*Platte, August 5, Platte Community Center, 2 p.m
*Yankton, August 5, Minerva’s Convention Center, 7 p.m.
*Watertown, August 9, Event Center, 2 p.m.
*Aberdeen, August 9, Ramada Inn, 7 p.m.
*Madison, August 10, Dakota Prairie Playhouse, 2 p.m.
*Brookings, August 10, Days Inn, 7 p.m.
*Lennox, August 11, High School Cafetorium, 2 p.m.
*Sioux Falls, August 11, Ramkota Inn, 7 p.m.
*Rapid City, August 12, Holiday Inn, 7 p.m.
Interested parties can get more information at info@sdwindpartners.com.
