If I Had Known Then…

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I am sure our builder and the subs are frustrated to the degree we need transparency in costs of job sections but we know the rules for renewables and Cost Containment Intl (www.c2intl.com ) will be doing oconsulting on a Cost Segregation study to accelerate depreciation. Hotels are usually good prospects for a Cost Segregation analysis and are able to classify 25% to 40% of items from 39 year depreciation to 5 to 15 year depreciation. That can be a big benefit to pay off the investment earlier. More on that process later.

In 2011 you can still get a cash grant of 10% to 30% and have accelearted depreciation. We expect the grant to go away in 2012 but the ITC or Investment Tax Credit will remina in place. Geothermal and Cogeneration or CHP only qualify for a 10% grant(residential geothermal is 30%) and solar- both thermal and electric qualify for 30%. Between the grant or ITC and depreciation, 55% of your solar is recouped (assuming you can monetize the depreciation value) so it is critical to have the cost of these parts of an overall project broken down carefully. Wind is also at 30% and we will run through how the numbers actually work later.

Underground rainwater storage, electric, gas, geothermal wells, thermal water storage insulated to R-80, domestic water well, just like the veins and arteries and nervous system for the entire campus to function in a holistic energy system. Each part of the system is designed to do more than just one thing. Typically the well guy does his thing and the rainwater capture guy does their thing and the geothermal guy does their thing and the aerobic on site waste water system does their thing but in a Holistic Energy System design, the geothermal is integrated to use the domestic water being pupmed out the ground and the heat exchanger opens up the 20,000 gallons of underground water storage and the aerobic waste water treatment ties into the geothermal system as it pumps and treats water from tank to tank before returning it to the earth.  And the highly insulated thermal storage tank allows us to shift heating and cooling capacity from off peak times to support and enhance onpweak energy usage time of day.

More on Holistic Energy Systems but they can be applied to communities and cities to use resources they are already have spent capital and energy on to reduce their load and carbon foot print.

We need some co-operation from the weather to get the construction area back to something other than a mud version of slip and slide but we have finally set a date for the commissioning.  This will be a great opportunity for officials and other area residents to be up close and personal for the first time to a real wind turbine. It is important for people to have the opportunity to see solar panels, solar tracking modules, turbines and towers to hear a turbine up close and get used to seeing these technologies all around. It was no different when telephone poles and electric wires were being strung everywhere. People were up in arms tearing them down. Can you imagine not having electricity or phone service.

I still don’t like seeing celltowers everywhere but not having calls dropped has been important to growing commerce. When cell towers were first coming out, local authorities were doing everything they can to block the ugly things from being installed in their backyards. It finally took national pre-emptive laws to remove the local barriers to get cell service rolled out under the commerce and national security clauses.

Personally, I can’t imagine not having a wind turbine in my back yard.

There are still some final items that have to be done on the 50kw Endurance Wind turbine (distributed in WI by www.frontierwindenergy.com ) like hooking up the internet link, changing a control, plugging hand holes in the tower. It is a beautiful site to see out our windows. In fact, every time I go by a window I look up at it. Almost done and operational- should be this week. Then we just have to pay for it! Randy Faller’s crew did a great job on the installation and will be handling the annual service- (www.kettleviewre.com ) A lot of pictures and video will be coming so check back.

Actually, Alliant Energy, our local electric utility powered up the transformer a couple of weeks ago setting the stage for the wind turbine installation. It was amazing how quickly their installation crew was in the cold weather.

Cost overruns are another story!

Alliant Energy, our local electric utility bringing new service and 480 volt back to the 50kw Endurance Wind Turbine so we can complete the installation and start generating electricty.

The first step was to drill under hwy 50 and through the woods that are along the roadway. Technically it was directional drilling- a technique often used in drilling for oil and natural gas. For this, a short string of warm days made the drilling go quickly and they were done in a half of a day.  The county ordinances require electric service be underground to a wind turbine. But then again as an upscale boutique hotel projec, underground power lines look nicer and are safer.

The next step will be done next week for trenching from the boring inside of our fence all the way back to the transformer. For this stage they like the ground nice and frozen so the ground doesn’t turn into mush. We already had that with the cement pouring and 2 ft deep trenches that cost $2,000 to smooth out. Final stage is running the lines from the roadway underground and energizing the transformer, meter and interconnect panel.

Then it is time to schedule the installation and pop a bottle of champagne celebrating the commissioning of the largest privately owned wind turbine in the midwest.

The turbine and area required is larger than we first thought so the landscape designers will have a challenge on their hands.

We got a quote for one company that would charge $2,000 and another that you rent their camera for a week for $1,500. I guess it is time to learn a new skill- actually for Catherine to learn a new skill and save some money. That is one thing we have learned is that you have to do ongoing research for everything to keep costs under control.

We are now in that process for the entire building and design to get building prices under control. Developing the specs and handling the bid process is critical for a custom property.

1st step right now is the turbine installtion which should be around mid February- video to follow.

Actually first we wanted warm temperatures in Nov to get the wind turbine foundation poured and keep it a little warm for 28 days for curing to reach the over 4,500 psi strength. Anderson-Ashton did the foundation. The entire process was very interesting.

Start out with soil borings so the geotechnical company, Giles Engineering Associates (www.gilesengr.com ) did their analysis of the soil types.

That report goes to the structural engineer for the turbine tower manufacturer to design the foundation. Spread footings were designed/ A surveying company had to come out to locate the exact spot for the wind turbine. Then the plans go to the county and state to get permits and pay a fee.

It is critical to not disturb any more soil then what is being filled so you don’t get settling.
The hole was dug, stone compacted in the bottom, and a few tons of rebar were carefully tied together by the Anderson- Ashton crew (www.andersonashton.com ) and the base foundation was poured with a bunch of rebar sticking up in the air from the base foundation for the second pouring so the two pieces are structurally tied together.

Then came the rain right when the cement trucks were coming to pour and after a half a dozen cement trucks pull in on our yard, we had two foot deep ruts. And then it all froze in place like a rock. There goes another $2,000 to get it leveled and smoothed out and we kept our fingers crossed that the cold weather (not a huge fan of cold weather normally) would stay and get the ground froze to support the weight of the crain and trucks with the turbine tower on it to be unloaded without sinking in to the ground.

The cold weather held out and we ploughed the yard so the snow that of course came would not insulate the ground like a blanket so the frost could freeze deeper. The day the turbine arrived started at 7am (logistics company forgot about an hour time zone difference), freezing cold, camera in hand (coffee in the other hand), and a huge smile on my face like a little kid on Christmas morning.

So far it looks like we will be a little over 10% over budget. That includes $29,000 to Alliant Energy to bring power back to a transformer by the turbine- nothing is ever easy- they will be directionally boring under Hwy 50 and then trenching under ground to the transformer. Of course winter surcharges apply this time of year. Oh well, being green costs grren.

We have committed to sponsor the renewable energy, green building, sustainable living fair to be held by Lake Geneva WI July 16-18, 2010. In fact, we will be one of the tour stops where people can see our wind turbine up close along with a dual axis tracking solar photovoltaic system. More info at www.ecofair360.com