Subject: Wind Energy Weekly #5 2/3

From: [email-masked] (Howard Smith)
Date: Fri, 23 Jul 93 13:32:00 -0700

(Continued from previous message)

decline, resulting in lower electricity rates for consumers
(unless, of course, states chose to ramp up the fee!).

     Direct pollution fees are not the only option for taking
account of the environmental impacts of fossil fuels, however.
Legislation requiring that electric utilities consider
environmental impacts in their resource decisions can lend a
powerful impetus to efforts to develop alternative energy sources.
Preferably, environmental impacts should be monetized, but at a
minimum there should be rigorous adherence to objective processes
for incorporating environmental impacts in resource decisions.

     Similarly, utility regulators (if they have the statutory
authority) can require that utilities consider environmental
impacts in their resource decisions.  Only four midwestern states,
Iowa, Michigan, Minnesota, and Wisconsin, explicitly require
utilities to account for external environmental risks or costs, and
only one, Wisconsin, require monetization of external costs.
     Creating such requirements--even if damages are not
quantified--serves the valuable purpose of forcing utilities to
identify and evaluate the environmental consequences of their
resource plans.

1With one exception: The emissions allowance trading system being
set up under the Clean Air Act Amendments gives utilities an
incentive to minimize their emissions of SO2 independent of the
regulated cap.  However, the average price of an emissions
allowance--projected to be around $400 per ton--is far lower than
the estimated health and other impacts of SO2 emissions.  Thus,
only a portion of the environmental cost has been accounted for in
the price of coal-fired electricity.

[Copies of Powering the Midwest are available for $15 members, $20
non-members from AWEA.  For more information or to order by
VISA/Master Card, please call (202) 408-8988; FAX (202) 408-8536.]

NEW WORLD BUYS 50%
STAKE IN MEXICAN FIRM

     New World Power Corp. of Lime Rock, Conn., said it has
completed a $7.65 million offering of common stock to non-U.S.
investors and will use $1.5 million of the proceeds to buy a 50
percent share in Entec S. A. de C. V., a Mexican rural
electrification company.  The purchase is subject to Mexican
federal approval, it said.

     New World, which operates several windfarms in the U.S., said
in a news release that Entec, which will change its name to New
World Entec, is likely to build a 100-MW wind power plant in
Mexico.

     New World said its offering consisted of 850,000 shares of
stock at $9 a share and that Oakes, Fitzwilliams & Co. and Stifel,
Nicolaus, & Co., Inc., acted as placement agents.  The offering
took place in conjunction with an additional offering of 150,000
shares sold by the firm's principal stockholder, it said.

     In addition to New World Entec's rural electrification
activities, that company "and related joint ventures plan to
develop, own and operate renewable resource projects including
windfarms and hydroelectric power plants in Mexico," New World
said.

     New World will provide the Mexican firm with "an enhanced
financing capability, including improved equipment purchasing
terms, project financing for utility grid and village grid projects
and credit facilities for institutional and individual system power
sales," the release added.

     It said New World will initially manage, through its
subsidiary Field Service Maintenance & Supply (FSMS), renewable
energy power plants developed by New World Entec.  FSMS and another
New World subsidiary, Northern Power Systems, will also manufacture
some equipment for the Mexican company.

     New World said it will use $3.6 million from the stock
offering to "purchase and retrofit existing windfarms[,] . . .
$750,000 to fund development of a new generation of wind
turbines[,] . . . $250,000 to fund development of village power
modules and conduct marketing efforts[,] and . . . the balance . .
. for working capital and other general corporate purposes.

     The new offering, combined with an $8 million public offering
last October and a $3 million offering of Series B Preferred Stock
in December, brings to $18.7 million the amount of capital that New
World has raised in the past year, the release said.

JUDGE ORDERS EFFORT TO
SETTLE NEW YORK PROCEEDING

     A New York administrative law judge has ordered parties in a

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