Community Corner
Article 25 Wind Tubine Funding
Article 25 makes no mention of the Massachusetts Clean Energy Center, Giving up "Home Rule," Extending a 2009 contract between the Town of Falmouth & Mass CEC and hours of change including punishment fines on the Town of Falmouth
ARTICLE 25: To see if the Town will appropriate a sum of money to the Energy Receipts Reserved for Appropriation Account for further appropriation, and to determine how the same shall be raised, or do or take any other action on the matter. On request of the Board of Selectmen.
RECOMMENDATION (Finance Committee): That the Town transfer the sum of $300,000 from certified free cash for the purposes of Article 25.
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EXPLANATION: When the Town’s two wind turbines were conceptualized and implemented, the Business Plan (in furtherance of Special Legislation enacted by the Town in 2010) included the establishment of a $1 million Reserve Account in FY2009 to ensure that these large and complex machines were being operated in a sound, business-like manner on behalf of Falmouth taxpayers. Since that time, this Reserve Account has been incrementally depleted as a result of the Town operating both turbines at significantly less than full capacity. Operating at reduced capacity resulted in the ongoing need to utilize funds from this original Reserve Account to provide a subsidy for portions of wind turbine operations.
In September, 2013 the Board of Selectmen voted to expand the operating hours of both turbines to sixteen hours per day.
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This was the minimum calculated necessary to operate in a business like manner, including the replenishment of this Reserve Fund.
A Court order handed down in November, 2013 mandated the reduction in operations to twelve hours per day, and further to include a 24-hour Sunday full shutdown.
This has been projected to reduce turbine annual operating revenues by $250,000-$280,000. This action by the Court places the Town in the position that we must set-aside a subsidy of $176,859 from the General Fund to cover wind turbine expenses.
Further, this interim action by the Court prevents the responsible replenishment of the depleted Wind Turbine Reserve Account.
It is irresponsible to operate these turbines without a reasonable set-aside in this Reserve Account. This Article would move $300,000 from Free Cash to begin to replenish the Wind Turbine Reserve Account.
