November 2004 Newsletter

Burley Wind Farmer Gets $500,000 Grant

September 17, 2004
By Chip Thompson, Twin Falls Times-News

A local farmer's dream of constructing a 10-megawatt wind farm on his Burley Butte property got a big boost Wednesday.

LeRoy Jarolimek received a call in the afternoon from Dale Lish, Idaho's rural energy coordinator for the U.S. Department of Agriculture, who said Jarolimek had been awarded a $500,000 USDA grant for the next phase of his project -- installation of a 1.65-megawatt turbine.

The new turbine and equipment to connect it to the power grid are expected to cost up to $2.5 million, Jarolimek said, but a private investor from the Sun Valley area has agreed to finance the remaining amount.

"She's interested in renewable energy and creating jobs in the agricultural area and sees this as a tremendous opportunity for farmers," Jarolimek said, adding that he did not want to name the investor without speaking to her first.

Jarolimek installed a 20-kilowatt turbine May 20, which began powering his home and shop building in early June. The turbine generates more power than he uses on average, so he receives a check each month from Idaho Power Co. for the additional power created.

Ultimately, Jarolimek said he plans to install six large turbines on his property and that with enough investment capital all six could go in next year. The towers will stand as high as 250 feet and cost about $1.3 million each to install once the connection to the power grid is established, he said.

"If we can put in all the towers at the same time then it would be cheaper to install them than doing one at a time," he said.

Much depends on passage of production tax credits at the federal level, Jarolimek said. If tax credits pass the project becomes much more profitable and would attract more investors.

Under the Public Utilities Regulatory Policy Act of 1978, Idaho electrical utilities are required to purchase power from qualifying facilities, which include those generating less than 10 megawatts, at set rates under 20-year contracts. The price is based on the "avoided cost" for the utility to build and operate a natural gas power plant.

According to the Idaho legislature's Web site, Idaho has the highest avoided cost rate when compared to Utah, Wyoming, Oregon and Washington.

Jarolimek said the rate is currently at 4.5 cents per kilowatt hour but could go as high as 7 cents. Each of the planned turbines is expected to generate 4.9 million kilowatt hours annually, meaning that Jarolimek's farm could generate between $1.3 million and $2 million each year for 20 years.

But Jarolimek didn't start looking at wind power as a way to get rich. Instead, he said he was concerned about the difficulties independent farmers faced just trying to make a living. So a little over two years ago when his son, Ronnie, suggested the family consider wind power at their farm, he began educating himself on the concept and discovered wind power might be a way to help make farming profitable for farmers and their families.

Since then he's traveled across the state and the West attending and speaking at seminars and talking with farmers about wind power and grants available to help them get started.

Neighbors of Jarolimek have been supportive of the project, he said, and have told him they are curious to see the new towers. A few of his neighbors have even begun testing their property for wind power potential, he added.

The project is still awaiting approval from Cassia County officials, but Jarolimek said the county is working to make the process easier for small wind farmers by eliminating the need for a special-use permit.

Looking to the future, Jarolimek said he may apply for a grant to develop a new kind of turbine uniquely suited to powering just a few homes. The design would allow a single tower to turn separate, smaller generators that would then provide electricity to individual homes.

NewsTracker:

• Last we knew: LeRoy Jarolimek installed a 120-foot, 20-kilowatt wind turbine on his farm on the Burley Butte west of town using about $30,000 in U.S. Department of Agriculture grant money and $20,000 of his own money.

• The latest: Jarolimek got news Wednesday that he'd been awarded a $500,000 USDA grant to help fund installation of a 1.65-megawatt turbine on his property.

• What's next: The new turbine, one of six Jarolimek plans to install, is expected to be in place by next summer with the help of a private investor from the Sun Valley area.