Re: Update on Wind power on the Big Island





"Alvin E. Toda" <aet@xxxxxxxx> wrote in message
news:1185407704-sch@xxxxxxxxxxxxxxxx

On Wed, 25 Jul 2007, Jerry Okamura wrote:

"If" someone spends the money to construct a wind
farm, don't you think that they would want to recover
the cost of building the wind farm as fast as
possible? How can they recover the upfront cost,
"if" they do not charge for the cost of construction?

Assumptions, Jerry? I'm assuming that we're talking
about the size of the profit since the wind farm is
still in operation and more are planned. What do you
base your assumption on that they can't recover the
cost of construction?


No, I am talking about the cost of construction. No business spends money
to construct ANYTHING without wanting to recover the cost involved in
putting up the wind farm (in this case). And they want to recover that cost
as fast as practical. And there is no "profit" involved in a constuction
program. And I did not say that they could not recover the cost of
construction, I said that they want to recogver the cost of construction as
quickly as possble and the way to do that is to charge a little more (or a
lot more) from the electricity they generate, and sell. When they
accomplish that task, then they will most likely lower the cost of the
electricity they generate.

.



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