From The Fillmore County Journal
By John Torgrimson
Friday, July 11, 2008
Fillmore County landowners will soon have an opportunity to participate directly in a new large-scale community-owned wind project.
National Wind LLC, a wind energy development company based in Minneapolis and Grand Forks, ND, will partner with Root River Energy LLC to develop 250 megawatts of energy over the next five years, enough electricity to power nearly 75,000 homes. It will require capitalization estimated at $500 million.
"Root River Energy is one of the few utility-scale community wind projects in Minnesota that gives landowners the opportunity to participate on many levels," says Patrick Pelstring, Co-Chair of National Wind.
Speaking by phone, Pelstring said the structure of the relationship between National Wind and Root River Energy will be similar to how many ethanol plants are structured in Minnesota. National Wind will be the project manager, while Root River Energy will be made up of shareholders, similar to a utility coop. Pelstring said that the majority of stock would be owned by local people.
National Wind, along with local landowners, and community leaders, have provided the initial capital to establish Root River Energy LLC. Root River Energy has formed a member's advisory board that consists of founders: Craig and Ardis Forland of Spring Valley, Joe and Barbara Nelson of Mabel, Rick and Gina Jahn of Spring Valley, Ronald and Lanna Gehling of Preston, and Kenneth and Therese Graner of Lanesboro.
"I am a strong supporter of renewable energy. I joined Root River Energy because I have the unique opportunity to steer the course of the project to meet the local needs of my community," Craig Forland of Spring Valley said in a press release. "I like that a portion of the proceeds from a community wind project stays in the hands of local landowners. The community's involvement really helps drive strong, local support for the project."
Root River Energy's financial commitment is to assure a portion of the project's development proceeds are shared with its local investors, landowners, and the surrounding community.
Last year, National Wind partnered with community members in Dodge, Olmsted, and Mower Counties to form Minnesota's first large-scale community wind project, High Country Energy, LLC. This 300 megawatt project currently has 150 megawatts committed to Wisconsin Public Service Corporation. In addition, National Wind recently announced the formation of Lake Country Wind Energy, LLC, a large community wind project in Meeker and Kandiyohi Counties, Minnesota. Lake Country Wind Energy will develop 250 megawatts of locally-owned wind energy.
"We are not soliciting any funding or financing at this time," Pelstring of National Wind said, noting that they are working on regulatory documents that will be filed with the state of Minnesta. Delphi Financial will be handling the investments, which are only offered to Minnesota residents, with priority going to the landowners involved in the project.
Pelstring said that it is very possible that Root River Energy would seek to develop a power purchase agreement with a large-scale utility in advance of development, similar to what High Country Wind Energy has done with the Wisconsin Public Service Corporation.
"I see wind as a crop that local landowners can harvest," Barry Rogne of Northfield, said. Rogne, an Ag banker who grew up on a farm near Elkton, is involved in High Country Energy and has been advising Root River Energy. He noted that most of the competition for wind energy in the area comes from international companies.
"We can differentiate ourselves from the competition because the community based model is better for the community," Rogne said.
Therese Graner said that Root River Energy will have a booth at the Fillmore County Fair so that people interested in the project can find out more information.
"We're looking forward to a good project for the community," Graner said.
For more information, visit www.rootriverenergy.com
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