Land Commish Jerry Patterson produces $250M for schools
Jerry Patterson, Commissioner of the Texas General Land Office, today awarded the first four competitively bid leases for offshore wind power in the nationís history.Giving the NPV first -- how refreshing to see intellectual honesty.
"The Texas Wind Rush is on, and the pioneers are staking their claims," Patterson said. "And wherever there are pioneers, the settlers soon follow."
The leases, awarded to Wind Energy Systems Technology (W.E.S.T., LLC), allow work to begin immediately on the construction of meteorological testing towers on each of the four tracts. Wind Energy Systems Technology is based in Louisiana. The company already holds the nation's only offshore lease for wind power, and is collecting data for a wind farm off the coast of Galveston.
Once the wind farms are operational, W.E.S.T. will pay the state's Permanent School Fund a minimum of $132 million over the 30-year life of the leases, discounted for the present value of the leases. The company's actual dollar commitment to the PSF, in todayís dollars, is $258 million.
Factor in the Permanent School Fund's minimum gross revenue from the wind farms producing at 250MW to 300MW, and that total rises to more than $231 million, discounted for present value, or $433 million over the 30-years the leases cover.
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