GE Set for a Pickens Windfall

While forever remembered as a doomed energy trader, Enron once operated a booming wind business as well. The company sold $750 million worth of wind turbines -- and actually made a profit on them -- during its final year of operation.

With wind farms generating one-third of the new power capacity added last year -- and demand for turbines soaring -- GE knows it got a steal.

"We purchased this for less than $300 million," GE Power Generation Vice President Steve Bolze marveled at an analyst conference this fall. "It is a $6.5 billion business this year -- all organic growth, (with) good profitability and return on capital for the company."

Today, GE ranks as the only major supplier of wind turbines in the U.S. The company competes primarily against companies, such as Vestas and Siemens (SI Quote), that are located in European countries where wind power has long been embraced.

Since Pickens chose to buy American, GE wound up with a huge chunk of new business. This spring, during an early shopping spree for his new wind farm, he ordered more wind turbines than GE normally sells in an entire quarter. At the time, he was quick to tout the $2 billion order as the "world's largest single-site wind turbine purchase" ever made.

Still, under his plan, that record might not stand for long. While Pickens could light up a city with his new turbines, he wants the U.S. to power 22% of the country with wind power down the road.

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