New energy source blows into Nome

"It's not only a way to help cut (energy) costs," said Foster. "We felt it was like putting our toe in the water, to become more and more self-sufficient. The intent is to add more to that, to increase our expertise and knowledge of alternative energy. The next step for us is to move into the villages. We want Nome to be the hub."

Bering Straits Native Corp., which is the Alaska Native regional corporation for the Nome area, along with area village corporation Sitnasuak Native Corp. jointly own Banner Wind's turbines, which have the potential to generate up to 1.2 megawatts of power.

The turbines were up and running Dec. 31. A formal ribbon cutting ceremony is to be held Thursday.

The wind farm was designed and built by Canadian firm Entegrity Wind Systems Inc.

Power generated by the $5.5 million, 18-turbine wind farm is being sold to Nome Joint Utilities under a temporary power purchase agreement.

"We will sell it to them at below their cost to create a kilowatt," Foster said. "It will be up to them to decide how much of the savings to pass on to consumers."

Nome Joint Utilities also has plans for a big wind farm, one that will generate up to 3 megawatts, depending on wind conditions.

The utility's electrical grid is powered by diesel fuel, which costs commercial customers 38 cents per kilowatt-hour. Nome Joint Utilities has yet to determine how purchasing power from Banner Wind LLC will affect consumer rates.

Jerald Brown, vice president of Bering Straits Native Corp., said that Banner Wind sees the project as a way to benefit the community of Nome while returning the capital investment to the partners.

"It should have an immediate downward impact on the cost to the utility to produce fuel and a leveling effect on the future cost as well, because the price of wind does not fluctuate," he said.

So far the wind farm has been well received by Nome residents.

Brown said residents excited about the project have stopped him on the streets of Nome to ask for more information about solar panels, as well. For the first nine months after installation, 96 solar panels, measuring about 2.5 feet by 5 feet each, have saved BSNC about $5,500 in energy costs, he said. The project cost $200,000.