Monday Report
Wind Power February 9th, 2009


Public Policy Initiatives


  • GDP
  • Real GDP contracted at a 3.8% annualized rate in the fourth quarter of 2008, much better than the consensus expectation for a 5.4% decline. Still, this was the biggest contraction in the economy since the first quarter of 1982. Consumer spending, business investment, and investment in housing all declined in the fourth quarter. The U.S. remains in the midst of the worst recession since the Great Depression. Real GDP contracted at a 3.8% annualized rate in the fourth quarter of 2008, much better than the consensus expectation for a 5.4% decline. Still, this was the biggest contraction in the economy since the first quarter of 1982. Consumer spending, business investment, and investment in housing all declined in the fourth quarter. The U.S. remains in the midst of the worst recession since the Great Depression.
  • Personal Income
  • Personal income fell 0.2% in December, as expected, after falling 0.4% in November (downwardly revised from 0.2%). Wage income fell for the third time in the last four months, driven by large job losses. Spending fell 1% after falling 0.8% the prior month (previously 1%), similar to expectations. Real spending fell 0.5%, more than reversing November's gain. The core PCE deflator was unchanged for the third straight month, although the top-line deflator fell 0.5%, its third straight decline. The saving rate rose to 3.6% from 2.8% in November.
  • Agricultural Prices
  • The preliminary All Farm Products Index of Prices Received by Farmers rose for the first time in several months in January, gaining 1.5% from December. All upward pressure was from the crop index, which gained 5.4%, while the livestock index dropped 3.4%. Prices rose for soybeans, oranges, lettuce and broccoli, while producers received lower prices for milk, cotton, tomatoes and onions. Prices paid by farmers for the means of production on average were unchanged in the past month but remain 3.6% higher than in January 2008. Farmers paid less for mixed fertilizers, potash and phosphates, complete feeds, and diesel fuel. Feeder cattle cost more, and higher taxes, cash rates and interest expenses also dented farmers' bottom lines.
  • Productivity and Costs
  • Nonfarm business productivity in the fourth quarter advanced 3.2% at an annual rate, and unit labor costs increased at a moderate 1.8% pace. A sharp decline in hours worked more than offset the reduction in output during the quarter, supporting the gain in productivity.
  • Senior Loan Officer Opinion Survey
  • The January Senior Loan Officer Opinion Survey from the Federal Reserve Board indicates that while credit conditions are still tightening, the pace of the tightening has slowed measurably since the last survey. Though the share of banks that continue to tighten standards is high relative to previous peaks during 2001 and in the early 1990s, nearly all measures of lending standards either held the same since the October survey or were down slightly. This could be an indication that the aggressive actions taken by the Federal Reserve and the Treasury to restore credit market operations are beginning to take hold.
  • Employment Cost Index
  • Employer costs rose 0.5% in the fourth quarter of 2008, below expectations and following increases of 0.7% in each of the first three quarters of the year. Both wage and salary growth and benefits cost growth decelerated, to 0.5% and 0.4%, respectively. Tame wage pressures will reduce inflationary concerns for the Fed, but slower wage growth will squeeze consumers facing numerous economic headwinds.
  • Monster Employment Index
  • U.S. employers placed fewer online recruitment ads during January than in December, bringing recruitment activity to a new cycle low. The Monster Employment Index fell 13 points between December and January, a slightly larger decrease than the 12- point drop between November and December. Of the 20 industries tracked by the index, all but two reported month-ago decreases in job availability. The decline dragged the index down 26% on a year-ago basis, a greater annual rate of decline than the 22% drop recorded in December. The greater rate of decline points to a weak start for employment in 2009.
  • Factory Orders (M3)
  • Factory orders fell 3.9% in December, only a slightly larger decline than expected. This was the fifth consecutive month of decline, which sets a series record for consecutive declines. Orders excluding transportation were down 4.4%. Orders for durable goods were revised down further from their first estimate to a 3% drop, and nondurables shipments fell 4.8%. Durables shipments and unfilled orders also were revised lower. Durables inventories rose 0.4%, while nondurables inventories fell 4.4% because of a drop in petroleum inventories.
  • Semiconductor Billings
  • Global semiconductor sales fell to $17.4 billion in December from $20.8 billion in the prior month on a three-month moving average basis. Weak demand in consumer, manufacturing and automotive sectors is depressing demand for semiconductors.
  • Jobless Claimsv
  • Initial claims for unemployment benefits increased by 35,000 to 626,000 for the week ending January 31, exceeding expectations for a milder gain. Continuing claims also edged higher, rising by 20,000 to 4.788 million for the week ending January 24. This indicates the labor market is still rapidly deteriorating.
  • Major Job Cuts
  • Job cut announcements surged in January in tandem with announcements of plunging fourth quarter earnings or losses and the expectation of very weak market conditions in 2009. Companies announced job cuts totaling 241,749, the highest total in more than seven years and 45% more than in December 2008.
  • Pending Home Sales
  • The pending home sales index rose 6.3% in December, significantly exceeding expectations for a 1% increase. November's preliminary reading underwent a small upward revision. The increase in pending home sales in December suggests that more buyers took advantage of low interest rates and bargain-basement house prices. This reading provides a hopeful indication that sales of existing homes could firm modestly over the next few months.
  • MBA Mortgage Applications Survey
  • In the week ending January 30, the MBA market index rose 8.6% to 795.4. This was driven by an increase in the refinance index, which climbed 15.8% this week to close at 3,906.3. For a second week, the purchase index declined 11.2% to finish at 261.4. These relatively large swings occurred despite slight increases in contract rates.
  • Chain Store Sales
  • Consumers continued to cut spending in January but at a slower pace than in recent months. Chain store sales fell 1.6% for the month, according to the ICSC, compared with December's 2% decline. Excluding Wal-Mart, sales tumbled 4.8%, slightly more than December's 4.6% drop but still less than November's sharp decline. Gasoline prices again were a significant drag on sales for the month, undermining sales at warehouse clubs. The few bright spots were discounters selling food and drug stores.
  • Oil and Gas Inventories
  • Crude oil inventories ballooned by 7.2 million barrels during the week ending January 30, according to the Energy Information Administration, far surpassing expectations of a 3 million barrel build. Gasoline inventories rose by 300,000 barrels. Distillate inventories fell by 1.4 million barrels. Refinery operating capacity rose to 83.5% from 82.8%. Total domestic petroleum demand rose slightly. This report points to lower oil prices.
  • Weekly Natural Gas Storage Report
  • Working gas in underground storage decreased by 195 billion cubic feet during the week ending January 30. The consensus estimate was for a decline of 190 billion cubic feet.


  • Bellini Juvenile Designer Furniture
  • Bellini Juvenile Designer Furniture operates at 60 locations nationwide.
  • The stores, offering upscale furniture and accessories for children, occupy spaces of 3,500 sq.ft. to 5,500 sq.ft. in lifestyle, specialty and strip centers.
  • Growth opportunities are sought throughout major metro markets nationwide during the coming 18 months, with representation by Sommers Consultants.
  • Typical leases run 10 years.
  • A vanilla shell is required. T
  • he company is franchising.
  • For more information, contact
    • Ron Sommers,
    • Sommers Consultants,
    • 01 North Main Street,
    • New City, NY 10956


Grants for Fire Departments!

Assistance to Firefighters Grant Program

  • POSTED: 1/29/2009
  • ELIGIBILITY: Fire departments and nonaffiliated EMS organizations
  • $ AVAILABLE: $35,000,000
  • MAX GRANT SIZE: $2,750,000
  • DEADLINE: 3/6/09
  • DESCRIPTION: Grants to enhance fire departments' and nonaffiliated EMS organizations' firefighting and emergency response needs by funding additional tools and resources necessary to more effectively protect the health and safety of the public.

Increased Financial Lending in Distressed Communities!

Bank Enterprise Award Program

  • POSTED: 1/30/2009
  • FUNDING SOURCE: Dept. of Treasury
  • ELIGIBILITY: Insured Depository Institutions, including CDFIs
  • $ AVAILABLE: $20,000,000
  • MAX GRANT SIZE: $500,000
  • DEADLINE: 3/13/09
  • DESCRIPTION: Grants to encourage Insured Depository Institutions to increase their levels of loans, investments, services, and technical assistance within Distressed Communities, and financial assistance to Community Development Financial Institutions (CDFIs) through grants, stock purchases, loans, deposits, and other forms of financial and technical assistance.


  • Wind Power - State Rankings
    • Capacities
    • Under Construction
    • Utah Projects
    • Top 20 Potential Capacity
  • Public Policy Initiatives
  • Economic Notes
  • This Weeks Leads

  • State Total Power Capacities (MW)

    StateExisting CapacityUnder ConstructionRank (Existing)
    Texas7,116 1,6511
    Iowa2,79020 2
    California2,517 2753
    Minnesota1,752 04
    Washington1,375 705
    Colorado1,068 06
    Oregon1,067 2507
    Illinois915201 8
    New York8324649
    Kansas815 19910
    North Dakota7140 11
    Oklahoma708 12312
    Wyoming6760 13
    New Mexico497100 14
    Wisconsin39 5415
    Pennsylvania361 23516
    West Virginia3300 17
    Montana2720 18
    South Dakota18751 19
    Missouri163 14620
    Indiana131 40021
    Michigan1290 22
    Idaho7571 23
    Nebraska73 8124
    Hawaii630 25
    Maine4757 26
    Tennessee29 027
    New Hampshire250 28
    Utah200 29
    New Jersey8030
    Ohio70 31
    Vermont60 32
    Massachusetts5 333
    Alaska30 34
    Rhode Island1035
    Arkansas00 36
    Arizona00 37
    Maryland00 38
    Nevada00 39
    Virginia00 40
    South Carolina0041
    Mississippi00 42
    North Carolina0043
    Alabama00 44
    Connecticut00 45
    Delaware00 46
    Florida00 47
    Georgia00 48
    Kentucky00 49
    Louisiana00 50

    U.S. Wind Energy Projects - Utah (As of 12/31/2008)

    Power Capacity - Existing projects (MW): 19.79
    Power Capacity - Projects under construction (MW): 0.0
    Rank In US (by Existing Capacity): 29
    Rank In US (by Potential Capacity): 26
    Potential Capacity (in MW): 2770
    Annual Energy (in billion kWh): 24

    Utah Wind Energy Projects (As of 12/31/2008)

    NameLocationPowe r Capacity (MW)# UnitsTurbine Mfr.DeveloperOwner Power PurchaserYear Online
    Spanish Fork Utah County, near Spanish Fork18.99 Suzlon Edison Mission Group Edison Mission Group PacifiCorp 2008
    Camp William Utah National Guard Riverton 0.66 1 Vestas Camp William Utah National GuardCamp William Utah National Guard 2005
    Camp William Utah National Guard Riverton 0.23 1NEG Micon Camp William Utah National Guard Camp William Utah National Guard 2000


    The top twenty states for wind energy potential, as measured by annual energy potential in the billions of kWhs, factoring in environmental and land use exclusions for wind class of 3 and higher.

    1. North Dakota 1,210
    2. Texas 1,190
    3. Kansas 1,070
    4. South Dakota 1,030
    5. Montana 1,020
    6. Nebraska 868
    7. Wyoming 747
    8. Oklahoma 725
    9. Minnesota 657
    10. Iowa 551
    11. Colorado 481
    12. New Mexico 435
    13. Idaho 73
    14. Michigan 65
    15. New York 62
    16. Illinois 61
    17. California 59
    18. Wisconsin 58
    19. Maine 56
    20. Missouri 52

      26 Utah 28

    Source: An Assessment of the Available Windy Land Area and Wind Energy Potential in the Contiguous United States, Pacific Northwest Laboratory, 1991.

  • Public Policy Initiatives
    • IA - Culver Proud of Wind Energy Investment. Gov. Chet Culver says Iowa now ranks second in the nation in wind energy capacity, surpassing California. Culver cited a new report from the American Wind Energy Association. Culver says that in recent years Iowans have worked tirelessly to build on the state's natural strengths and made it a national leader. Culver says the study is proof that investment in wind energy is working and will benefit the state.
    • WA - Gregoire: Emissions Plan Would Create Jobs. As Washington's economy reels, Gov. Chris Gregoire sent state lawmakers a plan she said would create new high-tech jobs while clamping down on greenhouse-gas pollution. The proposal, in bills introduced in the state House and Senate, would make Washington one of the first states to embrace broad limits on carbon dioxide and other emissions linked to global warming. Gregoire said forcing businesses to confront greenhouse-gas pollution would help propel the state's economy toward growing demand for "green-collar" jobs in fields like renewable energy and energy efficiency. Not tackling the problem, Gregoire said, puts the state at risk of missing future business trends, much as U.S. automakers fell behind their foreign competitors. 0m.html
    • PA - Rendell Pushing for Boost in Tuition Aid. Gov. Ed Rendell is proposing a $128 million plan to boost financial aid for students entering the 14 universities in the state system or community colleges this fall, and also wants to provide more help for current students. Students whose family income is less than $100,000 would be eligible for up to $7,600 for tuition, books, fees and room and board when they enter the 14 State System of Higher Education universities and the 14 community colleges. Rendell also proposes adding $45 million in grants to current and incoming students through the Pennsylvania Higher Education Assistance Agency. "Among all of the serious problems families are facing, perhaps the most serious is the decision about whether they can continue to afford to send their kids to college," Rendell said. 45
    • NC - Perdue Signs Expansion of Mortgage Interest Tax Deduction. In a move to help stimulate the economy with the sale of more than 1,500 North Carolina homes, Gov. Bev Perdue signed the authorization that will provide new financial assistance to first-time home buyers. The authorization enables the North Carolina Housing Finance Agency to expand its Mortgage Certificate Credit (MCC) program, which allows eligible home buyers to reduce their federal tax liability by 20 percent of the mortgage interest they pay annually. "The MCC will help stimulate the housing market, which is integral to the recovery of our state's economy," Gov. Perdue said. "This is just the type of innovation from a state government agency that will help spur our economic recovery." interest-tax-deduc/
    • CO - Ritter Seeks Federal Partnership to Improve Health Care System. Colorado can't fix the health-care system on its own, Gov. Bill Ritter said. "The fix has to be a partnership with the federal government," Ritter said. "It's important for us to do what we can do about the incremental parts and, at the same time, look at this partnership." Ritter said it's hard for a state to tackle health care alone because "there are so many layers controlled by the federal government." The federal government has full control over Medicare and also can dictate how Medicaid dollars are spent, he said. Ritter also said it's important to pay attention to wellness and incentives to stay well. "At the end of the day, an ounce of prevention is worth a pound of cure," he said. "It shouldn't just be about caring for the sick."
    • OH - Strickland Rolls Out Plan for Education, School Funding. Longer school days and years, mandatory all-day kindergarten, ending the Ohio graduate test and stronger accountability for public school teachers are among the proposals outlined in education reform presented by Gov. Ted Strickland. Much of the governor's State of the State speech focused on education and school funding reform, capping two years of meetings across the state in which the Democratic officeholder listened to ideas from teachers, parents and students. "It is absolutely clear to me that simply tinkering with centuries-old education practices will not prepare Ohio's children for success in college, in the workplace, or in life," Strickland said. "Therefore, today I present my plan to build our education system anew."
    • MT - Schweitzer Lays Groundwork for Coal Development. The Schweitzer administration is supporting a new bill to lay down the rules on storing carbon-dioxide underground in Montana - and legislative Republicans are preparing their own approach as well. The two bills, yet to be introduced, have emerged in the wake of Gov. Brian Schweitzer's call during his State of the State address to tackle the issue, saying it's vital for coal development in the state. Future development of coal-fired power plants or other coal-burning technologies won't happen in Montana without a way to store carbon-dioxide, a major greenhouse gas and cause of global warming, the governor and others have said. And storage of CO2 won't happen without a legal framework that spells out who owns the underground "pore space'' and who's liable for any problems, Schweitzer said. al.txt


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