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In the 1920's, Joseph and Marcellus Jacobs developed a practical wind energy system to provide electricity to their remote Montana ranch. Recognizing the need for this energy source, the Jacobs Wind Electric Company was founded in the mid-1920's. After moving to Minneapolis in the early 1930's, the company established a modern manufacturing facility to produce wind electric plants which provided power to isolated farms and ranches. During the next 30 years, thousands of these systems were manufactured and sold throughout the world. In the 1950's as the supply of other types of energy was becoming more plentiful and less expensive, and power lines funded by the U.S. Government were extended into the remote regions of the country, wind energy development and advancement were almost halted. The Jacobs Company halted its large scale manufacturing in Minneapolis and established a research facility in Florida. With the energy crisis of the 1970's, attention again focused upon alternative energy sources. In 1970 Control Data Inc. entered into a minority stockholder agreement with Jacobs Wind Electric Co. for the purpose of getting into the wind energy field and a production of a new generation of Jacobs wind energy products began. In 1982 because of manpower requirements and capital required to enter into windfarm applications, controlling interest was acquired by Control Data Inc., Renewable Energy Ventures Inc., was established in 1983 for the acquisition of land, permits and planning of wind farms. With the pending acquisition of Winco, an alternator and portable generator manufacturing company located in LeCenter, MN., the corporate name of the company was established as Earth Energy systems Inc. (EESI) to better reflect the nature of the corporation. Jacobs products included all wind related components and Winco was the manufacturing facility and supplier of all generators and lighting standards. Both divisions marketed existing products under existing trade names and logo's as divisions of EESI. From 1980 to 1986 EESI sold approximately 1500 wind energy plants in the United States and 8 in other countries. It also set up five wind farms, three (3) in California and two (2) in Hawaii. Several factors contributed to the large number of sales in the United States. As mentioned previously, electric costs rose dramatically due to the oil crisis of the 1970's and the resulting increase in oil and gas prices. Also, homeowners, farmers and businessmen received Federal Income Tax credits and sometimes state income tax incentives for purchasing wind energy systems. Also 1978 Federal Law (PURPA) regulation in the National Energy Act, mandated that local electric companies were required to purchase excess electricity generated by wind turbines privately owned. In addition, many people realized the long term benefits of installing an energy system which did not have an adverse impact upon the environment and which used as its energy souce a renewable resource. In late 1985 and early 1986 Control Data decided to divest itself of its wind energy division. It is believed this decision was based upon several factors - falling oil prices, repeal of Federal Income Tax credits for wind energy systems and the internal financial position of Control Data. Wind Turbine Industries Corporation ("WTIC" or "Company") was incorporated on May 28, 1986 as a Minnesota corporation. Beginning in 1986 Wind Turbine Industries Corporation, owned and controlled by Archie Pavek, purchased all exclusive rights, title and interest in trademarks, patentable rights, trade secrets, technology, tooling, engineering and manufacturing drawings and all other documentation on the 10 thru 20kw wind generators which includes the Grid Intertie System and the Hybrid System.
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