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Because the region is awash in federal power, the wholesale price of electricity on the spot market is effectively zero. That enables owners of fossil fuel plants to shut down, save on fuel costs and still supply their customers with federal power. Thermal plant owners in the basin often schedule maintenance and repairs to coincide with the spring rise. This year's rise is the largest since 1997, but only the 7th largest in the past 40 years. In the past decade, wind farms nurtured by government regulations and tax benefits have come on-line in large numbers
-- and are expected to double within the next decade. But they don't share the operational benefits of fossil fuel plants. The wind is free, so they can't save on fuel, and many rely on tax credits pegged to their production. That's why they've objected to being shut down without compensation. They say the shutdown isn't necessary, will cost them millions in tax benefits and will discourage investment in the business. Traditional customers of the Bonneville Power Administration, such as public power districts prominent in Washington state, say they'd have to bear that cost so they object to the idea of compensating wind farms. In anticipation of high water, the Hanford nuclear plant was shut down weeks ago for refueling. The agency sells power wholesale from a variety of fossil fuel plants
-- coal and natural gas -- and markets power from a number of smaller sources, such as landfills and sawmills making power from biomass. Milstein says they, too, would have been subject to shutdowns if they were operating.
[Associated
Press;
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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