King and Gardiner's Federal Loan Guarantee Application - the Smoking Gun on their Financial Capacity?

Rumford Falls Times November 15, 2010. 

To the Editor,
 
Angus King and Rob Gardiner's Record Hill Wind project in Roxbury is not yet moving forward despite King and Gardiner's representation to the citizens of Roxbury in a letter that construction was planned to have resumed in late summer. 
 
The latest news comes from a letter sent to the town of Roxbury from the US Dept of Energy indicating that King and Gardiner have applied for a Federal Loan Guarantee, a step that indicates that there is not financing in place for this project because the commercial credit market considers the project to be not credit worthy.   If King and Gardiner are successful in obtaining a loan guarantee, the US taxpayer will bear 100% of the risk for this project.  King and Gardiner have indicated in their DEP application that the project would be financed with "non-recourse" debt,  meaning that King and Gardiner are not personally liable for any loans.  Instead, they want us,  the taxpayer, to stand behind their loan,  making them entirely immune from any adversity the project may encounter. 
 
This is very troubling on a number of counts.   DEP rules require that evidence of  financing must be demonstrated in the application.   The evidence submitted, and relied upon by the DEP in granting the permit, has been shown by King and Gardiner's  statements and actions to be apparently inaccurate.  This is a serious matter, because by signing the DEP application the applicant swears that the information submitted is accurate.  
 
Furthermore,  the draft permit issued by the DEP contained a standard condition stating that evidence of financing must be demonstrated prior to the commencement of construction.  When the final permit was issued 5 days later, someone had changed the word "construction" to "operation", meaning the project could be constructed without satisfying the clear requirements of the law.   This improper condition gave King and Gardiner the ability to begin construction in 2009,  making them eligible for a 30% rebate on the entire cost of the project under the federal stimulus program,  a no-strings attached gift to King and Gardiner from the US taxpayer that would be worth $40 million.  When this conflict in the language of the permit was pointed out to DEP, no one admitted responsibility for this language change, other than an admission of a "drafting error". 
 
There is nothing in the record to indicate who requested this change or why this change was agreed to.  When the DEP was forced to admit that an improper condition was included in the permit,  they asked King and Gardiner to submit evidence of financing.  In response, King and Gardiner submitted a letter from a Chicago bank called Northern Trust, indicating that Bayroot, the majority partner in the Record Hill Wind project would provide the funds for construction.  With the news that King and Gardiner have now applied for a federal loan guarantee,  it appears that this representation was questionable.
 
According to the Wall Street Journal, in a story about the loan guarantee program on November 11,  President Obama's economic advisers have recommended to him that the loan guarantee program for wind projects should be reconsidered because of lack of return for the tax payer.  
 
Steve Thurston

Views: 76

Comment

You need to be a member of Citizens' Task Force on Wind Power - Maine to add comments!

Join Citizens' Task Force on Wind Power - Maine

Comment by Leola R. Ballweber on February 19, 2011 at 3:59pm
If, I understand this correctly, King and Gardner are in Breach of Contract and false pretense of the contract with DEP. Why hasn't the DEP pulled their permit and nullified things? Why hasn't the Attorney General started an investigation? It seems that there definitely is something illegal going on. It is time the State of Maine begin the breakdown of false statements made by the wind industry. It is also time to get the Federal Government involved. No questions asked.....
Comment by Monique Aniel Thurston on February 18, 2011 at 9:44am

So lets  get this  straight : first the  Concerned  Citizens  of  Roxbury spent thousand  of  dollars  trying  to  prove that  King and  Gardiner do  not meet the necessary   requirements  of financial  capacity  to the DEP , BEP  and  Law  court  and to the PUC who had  to  deliver  a  permit  for the  transmission   Interconnect  that  King  and  Gardiner had to finance  by  law  as well .

All those regulatory agencies  are satisfied  with  King and  Gardiner so  called  proof  of  financial  capacity !( except for  the Law Court whose  decision we  are  still waiting for )

And  now  it  is  again the  taxpayers  who  have  to  guarantee a  project that is  obviously impossible  to  finance privately !

First  we  fight to demonstate they they  do NOT have  financial capacity, then we loose ,then obviously we were right and  now they  have the  gumption to ask for our miserable tax  dollars to secure their  loans , for a project that is neither  necessary , neither convenient  , neither reliable and profoundly despised by many local residents ,  

If  having a conscience  is  what separated men  from  beast , I will trust  my dog Charlie  more  than the  principals  of Record Hill LLC and the members  of the  agencies  who gave  them their  permit on the  basis of acceptable  financial capacity .

monique Aniel  

Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

Not yet a member?

Sign up today and lend your voice and presence to the steadily rising tide that will soon sweep the scourge of useless and wretched turbines from our beloved Maine countryside. For many of us, our little pieces of paradise have been hard won. Did the carpetbaggers think they could simply steal them from us?

We have the facts on our side. We have the truth on our side. All we need now is YOU.

“First they ignore you, then they laugh at you, then they fight you, then you win.”

 -- Mahatma Gandhi

"It's not whether you get knocked down: it's whether you get up."
Vince Lombardi 

Task Force membership is free. Please sign up today!

© 2019   Created by Webmaster.   Powered by

Badges  |  Report an Issue  |  Terms of Service