The Long Island Power Authority has cancelled plans to construct a 140 megawatt wind project 3 miles off the south shore of Long Island.  The project's estimated costs had ballooned to more than $800 million including transmission lines.

Newsday reports that a study by Pace Global Energy Services, a consulting firm, found that the premium for wind-generated power from the Jones Beach project, over a 20-year period, would translate to about $2.50 per month to the typical residential consumer bill, or a total $66 million per year for all of Long Island. PACE arrived at the figure by comparing the cost of electricity produced in a combined-cycle natural gas power plant on Long Island, which is about $137 per megawatt hour, and a megawatt hour of power produced by the wind farm, which it said "could be $291."   Keep in mind that the $2.50 premium for wind is above the cost of gas, the highest cost power source.

This is a real blow to the Energy Bill passed earlier this month by the House of Representatives. The bill requires 15% of energy generation from "renewables." Renewables under the bill exclude nuclear and hydro. The bill is slated for conference committee in the fall. President Bush has said he will veto the bill because it is completely unserious about resolving the current energy situation.