UPC First Wind Predators on the Prowl

UPC FIRST WIND PREDATORS ON THE PROWL

As related in ‘Lloyds of London calls First Wind Management Incompetent’, First Wind’s  Kahuku Wind project remains offline due to catastrophic fires that spewed lead, and that caused $2 million in damages paid out by Lloyds of London.  The contractor for the failed battery storage system at Kahuku Wind is Xtreme Power.  

Where are the public and environmental benefits?

I invite the friendly reader to consider the lack of public and environmental benefits derived from wind energy that is loud, obnoxious, expensive, unreliable, inefficient, and that harms humans, habitat, and wildlife.   Why must we purchase inferior and expensive wind energy, or tolerate its noise and related property value loss and environmental damage?

“Regulatory Capture”

Is this truly about public and environmental interests?  Or is this about “regulatory capture” as defined by Chicago School of Economics Professor George Joseph Stigler whose theory is that regulators eventually identify with and aspire to join the well-heeled people they regulate?  It is with disturbing frequency that the regulators are the regulated in New England. 

He who writes the rules wins 

Those following the money have taken note that the Executive Vice President and Chief Development Officer at First Wind, Kurt Adams, is the former Chairman of the Maine Public Utilities Commission and former Chief Legal Counsel for Governor Balducci.  Adams,  according to  Naomi Schalit of the Maine Center for Public Interest Reporting,  negotiated a pretty sweet deal for himself about a month before leaving the state's employ, with  first-year compensation at the firm totaled $1.3 million, which included $315,000 in salary, $658,000 in stock, $29,000 in "other" compensation and $315,000 in "non-equity compensation." Source:  ‘Revolving door the norm in D.C. but rare in Maine’ by the Editorial Board of the Sun Journal [4/23/10]. 

Now let’s look at Michael Jacobs, former Transmission VP at First Wind, and former utility analyst for the Mass. Dept. of Public Utilities.  Jacobs is also the pastUtility Integration (Sr. Engineer) at the National Renewable Energy Laboratory (NREL).  

Until August 2012, Mike Jacobs served as the Director of Regulatory Affairs and Market Policy at Xtreme Power, the ‘Piginapoke for Hawaii Wind Farm’ Hawaii Free Press.  Xtreme Power Director and First Wind Director is one in the same, Patrick Wood III.    http://www.hawaiifreepress.com/main/ArticlesMain/tabid/56/articleType/ArticleView/articleId/2496/Xtreme-Power-A-Piginapoke-For-Hawaii-Wind-Farm.aspx

The same month, Aug 28, 2012, Jacobs, who claims to have organized the First Wind demonstration of Xtreme Power's storage system in Hawaii, made a hasty exit, Hawaii Free Press reported: Kahuku Wind farm Catches Fire AGAIN, Battery Building Burns Down, Spews Lead all over Sacred ‘Aina

Look out California!

Mike Jacobs’ profile on Linkedin provides his current occupation as Technical and Strategic Consultant for Both Supply & Demand, LLC., Boston Area. His stint with Xtreme Power (‘Piginapoke’ molten lead) hasn’t deterred Mike from massaging regulations or regulators.  He’s back in the game advising the California Public Utility Commission about energy storage procurement!   

From Mike Jacobs' Linkedin profile:  

The regulatory treatment of new grid technologies often determines their value. I am continuing the efforts on FERC and state reforms for Energy Storage, and Solar plus Storage as a higher value product that fills a range of needs. Current work advising in the California PUC investigation of Storage procurement, and white paper with PJM on Energy Storage as an alternative to Transmission.[cut]

I have not yet found “Both Supply & Demand, LLC” by search of the Web, except on Michael Jacobs’ Linkedin profile.

Has anyone noticed the number of instances where First Wind execs have revolved thru the doors of Public Utility Commissions?

I would be remiss if I failed to mention that the Director of First Wind Holdings, Inc., is the former Chairman of the Public Utility Commission of Texas, Patrick Wood III.  Wood was acting in this capacity in 1999 when the Texas PUC adopted the original model mandate for the states, the Renewable Portfolio Standard (RPS).  Pat Wood was later appointed by President George W. Bush to serve as Chairman of the Federal Energy Regulatory Commission (FERC) based on the recommendation of Enron’s Ken Lay.  Wood was charged with the clean up after Enron’s energy market manipulation and the California Energy Crisis. 

Wood's failure to address the US most notorious case of corporate fraud by ENRON as FERC Chair prompted a response from the Executive Director, Foundation for Taxpayer and Consumer Rights Douglas Heller by June 16, 2004 letter to FERC Chairman Pat Wood III.  

“After Wood's Dismissive Reaction to Enron Tapes Exposing Energy Market Manipulation” excerpt: 

California ratepayers remain at least $7 billion short of what they are due in refunds in large measure because the FERC, under your leadership, has failed to protect consumers from the illegal profiteering of energy companies and has refused to enforce the law so Californians can recover billions of dollars stolen from the state.

It is, of course, not just the outstanding refunds that you have withheld, but your unwillingness to bring energy companies to the table for contract renegotiation that is so offensive. The market manipulation began at least as early as June 2000, according to a Department of Justice indictment of Reliant. It continued - as evidenced by Enron's "Fat Boy/Death Star" memo, the conversations about manipulation involving AES and Williams traders as well as the new Enron tapes and a host of other indisputable proof -- through the 2001 blackouts and price spikes. This should provide you with incontrovertible evidence that the contracts must be abrogated or renegotiated.

Although you do not attempt to defend these indefensible tapes, your effort to deflect their relevance in this manner demonstrates your continued allegiance to your long-time promoter Ken Lay. But more importantly, your letter shows that you do not grasp the heinousness of this massive larceny.

[cut] continue reading-

http://www.consumerwatchdog.org/node/9121

The public benefits never seem realized by the public in the endeavors of UPC First Wind that builds failing wind projects.  While this company, and their multitude of subsidiaries, are proficient at collecting public subsidies, and their execs excel at capturing regulators. The line-up of these characters has me wondering if we are on the precipice of the Northeast Energy Crisis. 

I offer my sincere gratitude to the brave citizens of Maine who sacrifice their time and energy to fight to protect your sacred and private property rights and environment under attack by this predatory machine. I'm also thankful for the tireless efforts of the good people behind the Citizens' Task Force on Wind Power-Maine.

Most Respectfully, 

Barbara Durkin

Northboro, MA

Resources: 

Patrick Wood III:  http://investing.businessweek.com/research/stocks/private/person.as...

Mike Jacobs: http://www.linkedin.com/pub/mike-jacobs/b/81/11

Kurt Adams: http://www.linkedin.com/pub/kurt-adams/12/105/aa6