August 26, 2013 - Wind Power

August 26, 2013

Analytica94, Inc. Raises Questions, Looks for Answers on Life Cycle Costs of Wind Power


Washington, DC— August 26, 2013 — Today, Analytica94, Inc. announced an immediate launch of research into the true life cycle costs of wind power, enabling the stakeholders in the continued deployment of new energy infrastructure to benefit from the objective analysis and cutting edge tools of this new organization.

"There is a fundamental lack of consensus on true life cycle costs of wind," said Michael Majoros, Acting-Executive Director at Analytica94, Inc. "This definitive analysis will be unique and critical to understanding how these costs are assessed and, more importantly, how they should be."

Recent Findings Analytica94 Inc.'s founders recently conducted a statistical life study of wind farms based on data from actual wind units. The study indicates a 60 life span for these units. This result means that the capital costs of wind power production may be only one half of previous estimates. A94 will continue this research aiming to answer questions such as:

  • Should wind production be considered a finite commodity or a going-concern when evaluating its capital costs?
  • Should the Systems of Accounts utilities use for regulatory reporting be expanded to specifically identify wind production and other alternatives from historical capacity investments?
  • What are the true operating and maintenance costs of wind production?
  • What economic benefits do customer's derive from wind production, assuming it is properly costed? Analytica94 will pick up the research to include analysis of both embedded and the long-run incremental costs of wind power.



Research Availability

The interim results of this analysis will be available along with copies of Analytica94 Inc.'s other research and articles at www.analytica94.org.

Founded in 2012, Analytica94, Inc. ("A94") is a non-profit organization focused on the economic regulation of U.S. industries - primarily, but not limited to, the public utility, transportation and telecommunications industries. A94's sole purpose is to conduct research, develop economic models and provide the training necessary for Main Street individuals and organizations to evaluate the effectiveness of regulation. A94 provides a solution; it is a leveling mechanism and vehicle to fund the research, development and training required to respond effectively by spreading costs over a broader base.

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Analytica94, Inc. is a registered trademark or trademarks in the United States and/or other countries.

The names of actual companies mentioned herein may be the trademarks of their respective owners.

For more information:

Alison Wise

415-797-8099

awise@analytica94.org or wisealf@gmail.com

Michael Majoros

301-917-2993

mmajoros@snavely-king.com