A first-of-its-kind public investment opportunity for wind development was announced Friday by the creators of the South Dakota Wind Partners, LLC (SDWP) during a press conference at the Holiday Inn City Centre in Sioux Falls.
East River Electric Power Cooperative, the South Dakota Farm Bureau Federation, South Dakota Farmers Union and the South Dakota Corn Utilization Council have joined together to create SDWP.
SDWP Board President Jim Burg said that the formation of the South Dakota Wind Partners is an exciting project that opens the door for South Dakotans to become engaged with wind energy.
"Through SDWP, for the first time South Dakotans have the opportunity to become personally invested within this green energy source as it continues to grow," Burg said.
SDWP will own seven turbines adjacent to Basin Electric Power Cooperative's 151-MW (101 turbines) Prairie Winds SD1 wind project in southcentral South Dakota's Jerauld County.
This community-based, locally-owned wind project will operate 10.5 megawatts of clean electrical generation to power South Dakota homes, farms and businesses.
Prairie Winds SD1 has agreed to operate the SDWP wind farm and purchase all of the electricity it produces.
For several years, individual ownership opportunities for wind energy development have been deterred by the federal tax code, which does provide significant tax incentives, but has typically favored large equity investors.
"This project represents a re-balancing and expansion of the value proposition that wind can bring to not only South Dakota but across the nation with this model," said Jeff Nelson of Madison, East River Electric Power Cooperative general manager.
Historically, wind projects have depended on federal production tax credits (PTC). However, with the recent economic downturn, the ability to use the PTC has been limited.
Passage of the American Recovery and Reinvestment Act (ARRA) in February 2009 created a new tax option in lieu of the PTC, which provides a cash payment (tax grant) of up to 30 percent of the qualifying project costs.
This tax grant opened a new local wind opportunity for small investors to access government incentives and tax benefits, allowing development of smaller, locally-owned wind projects.
The SDWP offering will be selling ownership (shares) and debt (notes) in different combinations. The investment, open only to South Dakotans, will pay up to a 7 percent interest rate on the notes.
Investor meetings will be held at the following locations:
*Mitchell, Aug. 2, Ramada Inn, 2 p.m. and 7 p.m.
*Wessington Springs, Aug. 3, Springs Inn Cafe, 2 p.m. and 7 p.m.
*Oacoma, Aug. 4, Oacoma Community Center, 2 p.m.
*Huron, Aug. 4, Huron Events Center, 7 p.m.
*Platte, Aug. 5, Platte Community Center, 2 p.m
*Yankton, Aug. 5, Minerva's Convention Center, 7 p.m.
*Watertown, Aug. 9, Event Center, 2 p.m.
*Aberdeen, Aug. 9, Ramada Inn, 7 p.m.
*Madison, Aug. 10, Dakota Prairie Playhouse, 2 p.m.
*Brookings, Aug. 10, Days Inn, 7 p.m.
*Lennox, Aug. 11, High School Cafetorium, 2 p.m.
*Sioux Falls, Aug. 11, Ramkota Inn, 7 p.m.
*Rapid City, Aug. 12, Holiday Inn, 7 p.m.
Interested parties can get more information at info@sdwindpartners.com.
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