Atlantic Canada’s largest wind farm is up for sale. Creststreet Power and Income Fund LP of Toronto, a significant owner of the $50-million wind farm in Pubnico Point, Yarmouth County, wants to sell its share of the development in response to the federal government’s decision to eliminate the tax benefits of trusts. "The change in the federal income trust rules doesn’t allow trusts to grow," said Derren Newell, Creststreet’s CFO. An independent board of directors of Creststreet has set up a special committee to conduct a "strategic review" of the income fund’s two wind energy projects in Quebec and Nova Scotia, which have a total of 47 wind turbines and power generating capacity of 84.6 megawatts. Mr. Newell said the new tax rules come into effect in 2011, but the board is looking at selling the assets while renewable energy is a "hotly traded commodity" that will make sense for the unitholders of the income fund. "The committee is looking at maximizing unitholder value," he said. To help in the review, the committee hired CIBC World Markets Inc. and Davies Ward Phillips Vineberg. The Harper government passed legislation last year to start taxing income trusts at corporate rates. The proposed rules will apply a new tax on the money distributed to shareholders by newly formed income trusts and tax some of the income at corporate rates. These new rates started for trusts trading after October 2007. But existing trusts such as Creststreet were given a four-year transition period, ending in 2011. PPWF Management Ltd., Creststreet’s partner in the Pubnico wind farm and its operator, is a local firm owned by four Nova Scotians and headed by lawyer Charles Demond. Creststreet has been a "good partner" and expects any transaction to be completed by the end of this year, said Mr. Demond, president of Atlantic Wind Power Corp., a wind developing company. The Pubnico wind farm has 17 turbines, has been generating electricity since 2005 and sells directly to Nova Scotia Power through a long-term-power purchase agreement. Creststreet’s recent quarterly results show that for the first nine months of 2007, Pubnico Point’s production was eight per cent below the independent engineer’s projection, compared with seven per cent the previous year. The lower production is being blamed on lower wind speeds, according to the Creststreet report.
3 comments:
There was an interesting segment on "Island Morning" from PEI this morning. Brian Higgins interviewed two residents close to the East Point wind farm. 11 turbines have been operating there for year and more are on the way.
The first resident said she found the turbines visible through her kitchen window " beautiful" and characterised the sound as " soothing". Brian Higgins said " sitting in your kitchen, all I hear is your refridgerator."
Questioned again about noise levels, the lady replied " there is no loud noise, only a soothing whoosh". She also said the access roads were "great for walking and biking".
In an attempt to provide fair and balanced reporting , the journalist interviewed a gentleman worried about the expansion plans. This man said he lived " about in the middle" of the project. He said " the noise is not too bad" and that the " sound is something like the surf". His worry stems from rumours circulating about Pubnico, not actual experience.
The head of the Oleary community committee said she has heard "no complaints, only comments". She also thought that tourists were being drawn to the wind farm and that some local businesses were benefiting.
John McManus
I was wondering when someone was going to make a comment on this post. I guess I will have to wait a while longer, because John's comment is about the piece on PEI CBC radio, which I also listened to with interest. Wondering if we listening to the same show, because there are some important points JM didn't mention:
In the second interview, the gentleman said it wasn't "too bad" with the emphasis on "too". He then went on to say that that was the case with just 11 turbines, but wondered what it would be like with 44.
The gentleman mentioned that families "down east" (the Baileys) and Pubnico (d'Entremonts) had moved out of their homes. There is no rumour circulating about this. This happened. We have spoken with these people.
The interviewer also commented upon the fact that he'd talked to many more people than were interested on expressing their opinions on the radio, that they were concerned with upsetting neighbours. This is a common situation when any kind of development has been built where a few benefit and the rest just keep quiet, not wanting to stir up trouble with their neighbours, friends or employers.
"No complaints, only comments" What does that actually mean? It could just as easily be the same scenario as those who were reticent to be interviewed on the radio - those who have a complaint, but do not want to be recorded as such and thus start a problem with their neighbours, friends or employers.
Tourists coming to look at turbines come once and go home, never to return. The "tourists" we attract to this area stay here for a weekend or for months at a time. Day trippers cannot bring about the economic benefits that cottagers do. Particularly when they end up retiring in that area.
There was no mention as to whether there was any tourism in the area previously.
The lady who liked the turbines is lucky that they don't bother her, and I'm glad for her. But this is a sample of one. Not important statistically.
The people in Mars Hill, Maine who are being very seriously affected by the noise disturbance from a wind farm tell us that one of the most irritating aspects is that the noise comes and goes. You may go there one day and not hear a thing. Just wait a while and you'll hear them. The unpredictability of when they are noisy or not adds to their frustration.
Lisa:
We istened to the same radio spot and I stand by my post.
The interviewer said " sitting in your kitcken, all I hear is your refridgerator". I found this significant as some anonymous responders have scoffed at the similar sound pressure levels of wind farms and refidgerators. They are roughly equivalent, as witnessed by a reporter searching for a negative hook (look at this story on the CBC text site).
The beauty of the turbines was also noted in the piece. " There is just no loud noise. There's nothing to it and if you sat and watched them , they coud actually lull you to sleep."
I did include the phrase " the noise is not too bad", but continued the quote: the" sound is something like the surf". Leaving the second part of the quote out , to my sensibility, changes the meaning from positive to negative. ( Mention that surf infrasoud measues about 85db has been ridiculed in comments mae anonymously to this blog ).
I used " rumor" as I intended. A rumor is " unverified information". No high noise levels, either above or below 20hz have been recorded at Pubnico despite several studies. Reorts of high infrasonic levels are rumor.
The gentleman who found the sound level " not too bad, something like the surf" is worried , not because of personal experience, but because he has heard rumors about noise.
When I read websites from Mars or Western New York,etc., I regard their unsupported allegations to be fear mongering. With this interview we see how misinformation can influence people to disregard their own senses and experience.
John McManus
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