Up in the air

Rising wind power prices are encouraging US producers to turn to the short-term and spot electricity markets. Increasingly sophisticated risk management techniques may follow. David Watkins reports

The wind power industry in the United States continues to expand, driven by a period of regulatory consistency after the federal Production Tax Credit (PTC) was secured until the end of 2008.

While uncertainty surrounds the future of the credit after next year, its recent solidity has cultivated three years of wind power growth. This contrasts with the annual boom and bust cycle that had been created by the bi-annual ­expiration and subsequent renewal of the PTC between 1999 and 2004.

"We've had