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Negative Prices and the High Price of Windpower (AWEA's distorting product)

By <a class="post-author" href="/about#llinowes">Lisa Linowes</a> -- October 3, 2012

This month, unity was shattered within the wind industry when energy-giant Exelon Corporation broke ranks with other renewable-energy developers and asked Congress to let the production tax credit (PTC) expire in December. Exelon rightfully argued that the subsidy was distorting competitive wholesale energy markets and causing financial harm to other, more reliable clean energy sources.

In a fit of fury, the American Wind Energy Association (AWEA) voted Exelon “off the island” for insubordination and dismissed their complaint as self-serving, aimed at protecting Exelon’s fleet of Midwest nuclear power plants. AWEA insisted that wind was benefiting ratepayers by driving down consumer electricity prices in the face of “expensive, inflexible generation” like nuclear and coal.

As usual, AWEA positionĀ is easily rebutted. Yes, Exelon is concerned about (bizarre) wind pricing on the rates received by its nuclear power plants.