I cannot believe regular people want to destroy what is left of rural America by covering it with huge machines that don’t work. The thousands of huge wind turbines being built right now all over our country use ineffective, unreliable technology while destroying wildlife habitat, blocking migratory flyways, and literally sucking the breath out of thousands of insect eating bats.
Politicians want to believe developers’ claims about the wonders of the current technology. For those willing to admit that the Emperor’s New Clothes aren’t as wondrous as advertised, the fast tracking of the project approval process is but one example of how current policy is overriding the laws meant to protect us from such corporate scams.
A few media outlets have begun to dig into the corruption surrounding the corporate wind scam, but most, especially those in areas where thousands of 400 foot tall turbines are being erected, are turning a blind eye. Perhaps it is because they are afraid of rocking the boat, or being attacked by corporate law teams in the employ of the developers and their bankers. Perhaps it’s because they have been corrupted by the ‘advertising’ dollars they take from developers.
We’re seeing more and more examples of those government officials being demoted or fired when they try to blow the whistle on this gigantic scam. Local officials who try to remain objective are being hounded from office, not by the voters, but by other elected officials who have been corrupted, even while that corruption is being investigated.
There are many ways to address our energy needs. While each has it’s advantages and drawbacks, in the case of industrial wind turbines, only one side of the story seems to be reaching consumer, tax payer, and voter’s ears. I say ‘industrial wind’ because the small, residential turbines DO WORK, but the government doesn’t seem to want to bother with all us nasty individuals. They’d rather cave to the big money lobbyists that put in place solutions that really work.
Meanwhile, our borders, mountains, plains, and seashores are under attack. We better wake up before our rural communities are all shattered, our scenic vistas ruined, endangered species pushed to extinction, and our pockets emptied. And the problem not solved!
Saturday, September 06, 2008
Friday, September 05, 2008
Prattsburgh Wind Turbine Dispute in Supreme Court
BATH- It's up to a judge to settle a dispute over a plan to build wind farms in the town of Prattsburgh. When completed, the wind turbines would be similar to the ones now being built in Cohocton.
Friday lawyers for people opposed to the eminent domain proceedings went before a judge to try to stop it. Their lawsuit says the town supervisor, whose vote allowed the project to go forward has a conflict of interest, because he helped First Wind buy some land.
A lawyer for the property owners says he feels he has a good case.
“The judge certainly recognizes that the developer and the town have a very hard time getting around the fact the supervisor did receive compensation in the transaction. It’s something they simply are not going to be able to explain away,” says Derek Brocklebank.
Judge Marianne Furfure says she will have a ruling on the case sometime in the future. No word on when that ruling will be issued.
Town Supervisor Harold McConnell previously said he received a nineteen hundred dollar commission.
Our calls to the Prattsburgh town attorney and a First Wind attorney were not returned.
Friday lawyers for people opposed to the eminent domain proceedings went before a judge to try to stop it. Their lawsuit says the town supervisor, whose vote allowed the project to go forward has a conflict of interest, because he helped First Wind buy some land.
A lawyer for the property owners says he feels he has a good case.
“The judge certainly recognizes that the developer and the town have a very hard time getting around the fact the supervisor did receive compensation in the transaction. It’s something they simply are not going to be able to explain away,” says Derek Brocklebank.
Judge Marianne Furfure says she will have a ruling on the case sometime in the future. No word on when that ruling will be issued.
Town Supervisor Harold McConnell previously said he received a nineteen hundred dollar commission.
Our calls to the Prattsburgh town attorney and a First Wind attorney were not returned.
Barre Looks to the Future by Andrea Rebeck
September 4, 2008
The Town of Barre is about to enter a growing club, comprised of communities that have said YES to wind development. With the passage of their law permitting wind turbines to be built anywhere in the town with minimal setback and noise protections, Barre is ripe for development.
What will Barre’s future look like? Well, now that the Spanish company Iberdrola has managed to bypass the major safeguards usually imposed on utility companies, they are eager to find places to build their tax shelters – er, wind farms. Erecting wind turbines, whether in windy areas or in places where they won’t generate a single kW of electricity (like Barre) will provide them with enough tax credits and subsidies to pay off their investment in a few short years and also shelter them from paying taxes on most of the income that Energy East will earn them in New York State. For some reason, those facts escaped our elected officials, and didn’t deter them from heavily promoting the deal as a good one for New Yorkers (huh?).
But back to Barre, a small, rural, mostly flat township 10 miles south of Lake Ontario in western New York. A few powerful farmers and quarry owners dominate the political landscape here, and soon their wind turbines will dominate the actual landscape. Neighbors are being enticed to sign leases and agreements for a few thousand dollars that will tie up their land for decades and prohibit them from complaining about any of the nuisances that the turbines generate, and from even saying anything to their friends or family members about what they have done. The strain is already starting to be felt: people avoiding one another, refusing to speak openly when asked, or just plain telling others “It’s none of your business.” Funny how putting up a 420 ft. tall machine that may make loud noises just a thousand feet from your home is considered none of your business, but in this community it is. People are afraid to speak out, for fear of severing life-long friendships. Wait until they see what the presence of those machines does to those relationships.
So now the law is passed and Iberdrola has been busy signing people up. Next will come the earth moving equipment to blast and dig holes for the bases, then the trucks carrying 50-ton loads of towers and nacelles and blades, and the giant cranes to erect them. It won’t take long. The parts have been stored off the Thruway at various locations, just waiting for the formality of approval from the Public Service Commission. Now that that charade is over, the trucks will roll!
If it’s not too windy, the towers will go up quickly, mostly by specialized crews from outside our area. Our little restaurants and delis will see a short boom in business while they are here. But before you know it, these workers will be gone, leaving us with several gleaming white towers supporting giant blades that will stand there. And stand there. Our wind in Barre is pretty fickle – too light to drive those giant blades most of the time and too strong for their hubs during times of high winds. So they will produce very little, if any, electricity that can be sold into the grid. We won’t know that, of course, because like the results of the meteorological towers that have been up for a couple years to measure our wind, we will never be allowed to see the results of their meters. The wind industry very carefully guards that information, claiming it is “proprietary” and that releasing it would somehow put them at a disadvantage against their competition. Except that they don’t have any competition. Before Thanksgiving, they will have gotten everyone who can be persuaded to part with their judgment for a few bucks to agree to permit the company to use their land for wind development for decades to come. Why an intelligent person would tie up their land, not only during their lifetime but for the lives of their children, is hard to understand. There is something about having money waved under your nose that makes otherwise good people do truly stupid – even harmful – things.
It probably wouldn’t matter if these greedy fools were the only ones who suffered the consequences. But the tragedy is that the ones who profit the most will probably move south in years to come, leaving everyone else to deal with the mess they have created.
What mess? Well, 60 or more turbines will march across our town in any direction that works for the developer. So expect them all over the most beautiful part of town where the open land and woods harbor all kinds of wildlife. When that room is used up, the turbines will be built 1000 ft. from homes and businesses, so that the maximum number of machines can be squeezed onto the land. If a property is needed for transmission lines, it will be taken by eminent domain and its owner minimally compensated for the loss. No one will be exempt, except those with large parcels who have agreements with the wind developer to keep the turbines away from their homes. Once again, the aristocracy comes out on top, and the rest of us suffer. I thought we lived in a democracy, but I must have been dreaming.
In a decade or two we will look very different from today. Now, we are a bucolic landscape with a few industrial intrusions. Tomorrow we will be an industrial wasteland, with perhaps a few corners of untouched beauty. The aging towers will stand idle, rusting and dripping hydraulic fluid all over the ground, contaminating what was supposed to be returned to farmland when the turbines were no more. But the money that built them will be long gone and its owners untraceable, and the locals will be stuck trying to find a way to finance the demolition of millions of dollars of aging equipment. The bonds and funds promised to pay for this will have proven to be worth no more than recycled paper. Anyone who could afford to leave the area and could manage to find a community where such degradation was not permitted, will have sold and moved away. Those left, the old, the poor, the family-bound, will not be able to deal with the costs. It will be a bleak and lonely landscape, indeed.
But never fear; a savior will rush in! The government of Abu Dhabi, providing Iberdrola with our oil dollars to build their turbines, will be happy to buy our farmland at fire-sale prices. The barren Middle East is facing a food crisis, and fertile farmland, even if somewhat polluted by wind turbines, is exactly what they need to feed their populations.
How will we feed ours, when we’ve industrialized our farmland and then given it away? Apparently nobody in power is concerned about that today. That will be a problem for the next generation to worry about. Our state agencies are more concerned about enriching farmers than they are with preserving farming, or they would never permit the industrialization of prime farmland like that in Barre. And our Barre farmers apparently aren’t very committed to farming, if they would sign deals that will bring such a future to their acreage.
As I read over what I just wrote, I think that I am a lunatic – and you probably do, too. I hope I’m dreaming and will soon wake up from this nightmare. But in case I don’t, hold on to this article for a couple decades and see how much of it comes true. I sincerely hope I am dead wrong, but I have an awful feeling that I have never been so right.
The Town of Barre is about to enter a growing club, comprised of communities that have said YES to wind development. With the passage of their law permitting wind turbines to be built anywhere in the town with minimal setback and noise protections, Barre is ripe for development.
What will Barre’s future look like? Well, now that the Spanish company Iberdrola has managed to bypass the major safeguards usually imposed on utility companies, they are eager to find places to build their tax shelters – er, wind farms. Erecting wind turbines, whether in windy areas or in places where they won’t generate a single kW of electricity (like Barre) will provide them with enough tax credits and subsidies to pay off their investment in a few short years and also shelter them from paying taxes on most of the income that Energy East will earn them in New York State. For some reason, those facts escaped our elected officials, and didn’t deter them from heavily promoting the deal as a good one for New Yorkers (huh?).
But back to Barre, a small, rural, mostly flat township 10 miles south of Lake Ontario in western New York. A few powerful farmers and quarry owners dominate the political landscape here, and soon their wind turbines will dominate the actual landscape. Neighbors are being enticed to sign leases and agreements for a few thousand dollars that will tie up their land for decades and prohibit them from complaining about any of the nuisances that the turbines generate, and from even saying anything to their friends or family members about what they have done. The strain is already starting to be felt: people avoiding one another, refusing to speak openly when asked, or just plain telling others “It’s none of your business.” Funny how putting up a 420 ft. tall machine that may make loud noises just a thousand feet from your home is considered none of your business, but in this community it is. People are afraid to speak out, for fear of severing life-long friendships. Wait until they see what the presence of those machines does to those relationships.
So now the law is passed and Iberdrola has been busy signing people up. Next will come the earth moving equipment to blast and dig holes for the bases, then the trucks carrying 50-ton loads of towers and nacelles and blades, and the giant cranes to erect them. It won’t take long. The parts have been stored off the Thruway at various locations, just waiting for the formality of approval from the Public Service Commission. Now that that charade is over, the trucks will roll!
If it’s not too windy, the towers will go up quickly, mostly by specialized crews from outside our area. Our little restaurants and delis will see a short boom in business while they are here. But before you know it, these workers will be gone, leaving us with several gleaming white towers supporting giant blades that will stand there. And stand there. Our wind in Barre is pretty fickle – too light to drive those giant blades most of the time and too strong for their hubs during times of high winds. So they will produce very little, if any, electricity that can be sold into the grid. We won’t know that, of course, because like the results of the meteorological towers that have been up for a couple years to measure our wind, we will never be allowed to see the results of their meters. The wind industry very carefully guards that information, claiming it is “proprietary” and that releasing it would somehow put them at a disadvantage against their competition. Except that they don’t have any competition. Before Thanksgiving, they will have gotten everyone who can be persuaded to part with their judgment for a few bucks to agree to permit the company to use their land for wind development for decades to come. Why an intelligent person would tie up their land, not only during their lifetime but for the lives of their children, is hard to understand. There is something about having money waved under your nose that makes otherwise good people do truly stupid – even harmful – things.
It probably wouldn’t matter if these greedy fools were the only ones who suffered the consequences. But the tragedy is that the ones who profit the most will probably move south in years to come, leaving everyone else to deal with the mess they have created.
What mess? Well, 60 or more turbines will march across our town in any direction that works for the developer. So expect them all over the most beautiful part of town where the open land and woods harbor all kinds of wildlife. When that room is used up, the turbines will be built 1000 ft. from homes and businesses, so that the maximum number of machines can be squeezed onto the land. If a property is needed for transmission lines, it will be taken by eminent domain and its owner minimally compensated for the loss. No one will be exempt, except those with large parcels who have agreements with the wind developer to keep the turbines away from their homes. Once again, the aristocracy comes out on top, and the rest of us suffer. I thought we lived in a democracy, but I must have been dreaming.
In a decade or two we will look very different from today. Now, we are a bucolic landscape with a few industrial intrusions. Tomorrow we will be an industrial wasteland, with perhaps a few corners of untouched beauty. The aging towers will stand idle, rusting and dripping hydraulic fluid all over the ground, contaminating what was supposed to be returned to farmland when the turbines were no more. But the money that built them will be long gone and its owners untraceable, and the locals will be stuck trying to find a way to finance the demolition of millions of dollars of aging equipment. The bonds and funds promised to pay for this will have proven to be worth no more than recycled paper. Anyone who could afford to leave the area and could manage to find a community where such degradation was not permitted, will have sold and moved away. Those left, the old, the poor, the family-bound, will not be able to deal with the costs. It will be a bleak and lonely landscape, indeed.
But never fear; a savior will rush in! The government of Abu Dhabi, providing Iberdrola with our oil dollars to build their turbines, will be happy to buy our farmland at fire-sale prices. The barren Middle East is facing a food crisis, and fertile farmland, even if somewhat polluted by wind turbines, is exactly what they need to feed their populations.
How will we feed ours, when we’ve industrialized our farmland and then given it away? Apparently nobody in power is concerned about that today. That will be a problem for the next generation to worry about. Our state agencies are more concerned about enriching farmers than they are with preserving farming, or they would never permit the industrialization of prime farmland like that in Barre. And our Barre farmers apparently aren’t very committed to farming, if they would sign deals that will bring such a future to their acreage.
As I read over what I just wrote, I think that I am a lunatic – and you probably do, too. I hope I’m dreaming and will soon wake up from this nightmare. But in case I don’t, hold on to this article for a couple decades and see how much of it comes true. I sincerely hope I am dead wrong, but I have an awful feeling that I have never been so right.
Thursday, September 04, 2008
Comments Sent to the Energy Coordinating Working Group
Alice Sokolow Citizens Power Alliance
Andy McEvoy
Anne Harris, Town of Lyme
Archimandrite George Schaefer, Holy Trinity Monastery
Barry K Miller, PE Concerned Citizens of Cataraugus County
Boyce Sherwin, Regional SDolutions
Capital Region Energy Forum
Cohocton Wind Watch
Colleen Green
Cynthia Blair, Citizens Power Alliance
Dan Wing Cohocton Wind Watch
Debra Burns, Naples Valley Bristol Hills Association
Diane Rutigliano
Elizabeth M Mosher
Glenn R. Schleede
Hall Matilsky Sokolow Cohocton Wind Watch and Advocates for Prattsburgh
Harold Hambrose, Cape Vincent
Hilarion, ArchBishop of Sydney, Australia and New Zealand
James M Brbour
Janet Haskins
Jim Sawicki
Joan Simmons, Citizens Power Alliance
John Cowley
Mass Dispensation Engine Concept
P. Santiago Oretga
Phil Bariteau, Naples Valley Bristol Hills Association
Robert C Strasburg II
Ronald D. Morrison
Ronald Iocono
Schleede Critical Evaluation
Wayne Miller
Andy McEvoy
Anne Harris, Town of Lyme
Archimandrite George Schaefer, Holy Trinity Monastery
Barry K Miller, PE Concerned Citizens of Cataraugus County
Boyce Sherwin, Regional SDolutions
Capital Region Energy Forum
Cohocton Wind Watch
Colleen Green
Cynthia Blair, Citizens Power Alliance
Dan Wing Cohocton Wind Watch
Debra Burns, Naples Valley Bristol Hills Association
Diane Rutigliano
Elizabeth M Mosher
Glenn R. Schleede
Hall Matilsky Sokolow Cohocton Wind Watch and Advocates for Prattsburgh
Harold Hambrose, Cape Vincent
Hilarion, ArchBishop of Sydney, Australia and New Zealand
James M Brbour
Janet Haskins
Jim Sawicki
Joan Simmons, Citizens Power Alliance
John Cowley
Mass Dispensation Engine Concept
P. Santiago Oretga
Phil Bariteau, Naples Valley Bristol Hills Association
Robert C Strasburg II
Ronald D. Morrison
Ronald Iocono
Schleede Critical Evaluation
Wayne Miller
PSC Complaint Contact Site - NOT SURE YOU HAVE A COMPLAINT?
Are You Not Sure Your Complaint Should Be Addressed to the PSC?
Call Us Toll-Free At:
•1-800-342-3377 Calling from anywhere in the continental United States.
•1-800-662-1220 Hearing/Speech Impaired: TDD
Fax:
•1-518-486-7868 24-Hours
Write:
•Consumer Services Division
Consumer Assistance
3 Empire State Plaza
Albany, NY 12223-1350
E-Mail: csd@dps.state.ny.us
Call Us Toll-Free At:
•1-800-342-3377 Calling from anywhere in the continental United States.
•1-800-662-1220 Hearing/Speech Impaired: TDD
Fax:
•1-518-486-7868 24-Hours
Write:
•Consumer Services Division
Consumer Assistance
3 Empire State Plaza
Albany, NY 12223-1350
E-Mail: csd@dps.state.ny.us
State OKs purchase of NYSEG parent company
Despite misgivings, New York regulators on Wednesday cleared the way for Spanish energy giant Iberdrola to buy the parent company of two Upstate utilities while also owning and developing wind power facilities.
The state Public Service Commission voted 4-0 to approve Iberdrola's $4.6 billion acquisition of Energy East, the parent of New York State Electric & Gas and Rochester Gas & Electric.
As a condition of the deal, Iberdrola must provide $275 million to help lower rates for the 1.7 million customers of NYSEG and RG&E.
NYSEG serves customers in Cayuga County and pockets of Onondaga and Madison counties. RG&E has customers in Cayuga County.
The commissioners said they were reluctant to allow Iberdrola to own both wind turbines and utility-based transmission lines, because the company would have an incentive to operate its lines in ways that could drive up prices for its wind power.
But after more than a year of wrangling between the PSC staff and Iberdrola, the commissioners approved the deal, saying it would help lower rates for utility customers.
The $275 million required from Iberdrola is equivalent to a 5 percent decrease in electric delivery rates for five years for both utilities. The money may be used to offset future rate increases rather than to lower rates, however.
"This isn't a perfect deal," said Commissioner Maureen Harris. "And it may not even be a great deal. But, in my opinion, I think it's a good deal."
Not only did the PSC allow Iberdrola to continue in the wind business, it required the company to develop more wind power. A condition of the deal is that Iberdrola invest $200 million in new wind turbines over the next two years. If circumstances prevent the investment, the company must set aside up to $25 million in shareholder money to pay for economic development programs.
Iberdrola won many supporters among politicians and economic developers after promising to invest up to $2 billion in new wind power in New York state. The PSC's senior advisers 4 predicted that New York's wind industry would continue to develop with or without Iberdrola, but the commissioners expressed interest in the company's promise of economic development.
"Our economy is lagging, particularly Upstate," said Commissioner Patricia Acampora.
Approval by the Public Service Commission was the last regulatory barrier to completing the deal, first announced in June 2007, and Wall Street was betting Wednesday that Iberdrola would consummate the purchase. Energy East shares, which Iberdrola agreed to buy at $28.50 each, closed at $28.01, up 2.5 percent.
But Iberdrola officials were noncommittal Wednesday, saying only that they will study the terms of the PSC's approval as soon as they are available in a written order.
"We look forward to reviewing the order to determine the next steps," the company said.
Iberdrola, based in Bilbao, Spain, is one of the world's biggest power companies, with more than 40,000 megawatts of generating capacity and nearly 22 million customers. With 8,000 megawatts of renewable power - mostly wind turbines - the company is a leading producer of renewable energy.
Iberdrola owns 50 percent of the 321-megawatt Maple Ridge Wind Farm in Lewis County, and has other New York projects under development.
The company has promised to invest $8 billion through 2012 to build new wind farms in the United States - including up to $2 billion in New York state. Political leaders, including U.S. Sen. Charles Schumer, D-N.Y., welcomed that commitment and urged the PSC to approve the Energy East deal.
But PSC officials, who encouraged utilities to sell off their power plants a decade ago to create a competitive market, have been leery about letting utilities own generating plants. A utility such as NYSEG can affect the plants' profits by where and when it invests in new transmission lines, or how it operates the existing system.
The commission on Wednesday reaffirmed its general position that utilities and their corporate affiliates should not own power plants, but made an exception for Iberdrola's wind facilities after adopting new reporting requirements designed to let it monitor NYSEG's and RG&E's transmission operations more closely.
Iberdrola has agreed not to own any fossil-fuel generation, including RG&E's Russell Station, which will be sold. Iberdrola, but not NYSEG or RG&E, may own wind farms.
Schumer said the PSC made the right decision.
"Today's Public Service Commission unanimous ruling appears to strike a good balance between protecting New York consumers and encouraging investment in alternative energy," he said.
If Iberdrola completes the purchase of Energy East, the company will own its first regulated utilities in the United States. Besides NYSEG and RG&E, Energy East owns four small utilities in New England.
NYSEG has 872,000 electricity customers and 256,000 natural gas customers, including customers in southern Cayuga County, southeastern Madison County and pockets of southwestern Onondaga County. RG&E has 360,000 electricity customers and 297,000 natural gas customers in a nine-county area around Rochester, including northern Cayuga County.
You can contact staff writer Tim Knauss at tknauss@syracuse.com or 470-3023.
The state Public Service Commission voted 4-0 to approve Iberdrola's $4.6 billion acquisition of Energy East, the parent of New York State Electric & Gas and Rochester Gas & Electric.
As a condition of the deal, Iberdrola must provide $275 million to help lower rates for the 1.7 million customers of NYSEG and RG&E.
NYSEG serves customers in Cayuga County and pockets of Onondaga and Madison counties. RG&E has customers in Cayuga County.
The commissioners said they were reluctant to allow Iberdrola to own both wind turbines and utility-based transmission lines, because the company would have an incentive to operate its lines in ways that could drive up prices for its wind power.
But after more than a year of wrangling between the PSC staff and Iberdrola, the commissioners approved the deal, saying it would help lower rates for utility customers.
The $275 million required from Iberdrola is equivalent to a 5 percent decrease in electric delivery rates for five years for both utilities. The money may be used to offset future rate increases rather than to lower rates, however.
"This isn't a perfect deal," said Commissioner Maureen Harris. "And it may not even be a great deal. But, in my opinion, I think it's a good deal."
Not only did the PSC allow Iberdrola to continue in the wind business, it required the company to develop more wind power. A condition of the deal is that Iberdrola invest $200 million in new wind turbines over the next two years. If circumstances prevent the investment, the company must set aside up to $25 million in shareholder money to pay for economic development programs.
Iberdrola won many supporters among politicians and economic developers after promising to invest up to $2 billion in new wind power in New York state. The PSC's senior advisers 4 predicted that New York's wind industry would continue to develop with or without Iberdrola, but the commissioners expressed interest in the company's promise of economic development.
"Our economy is lagging, particularly Upstate," said Commissioner Patricia Acampora.
Approval by the Public Service Commission was the last regulatory barrier to completing the deal, first announced in June 2007, and Wall Street was betting Wednesday that Iberdrola would consummate the purchase. Energy East shares, which Iberdrola agreed to buy at $28.50 each, closed at $28.01, up 2.5 percent.
But Iberdrola officials were noncommittal Wednesday, saying only that they will study the terms of the PSC's approval as soon as they are available in a written order.
"We look forward to reviewing the order to determine the next steps," the company said.
Iberdrola, based in Bilbao, Spain, is one of the world's biggest power companies, with more than 40,000 megawatts of generating capacity and nearly 22 million customers. With 8,000 megawatts of renewable power - mostly wind turbines - the company is a leading producer of renewable energy.
Iberdrola owns 50 percent of the 321-megawatt Maple Ridge Wind Farm in Lewis County, and has other New York projects under development.
The company has promised to invest $8 billion through 2012 to build new wind farms in the United States - including up to $2 billion in New York state. Political leaders, including U.S. Sen. Charles Schumer, D-N.Y., welcomed that commitment and urged the PSC to approve the Energy East deal.
But PSC officials, who encouraged utilities to sell off their power plants a decade ago to create a competitive market, have been leery about letting utilities own generating plants. A utility such as NYSEG can affect the plants' profits by where and when it invests in new transmission lines, or how it operates the existing system.
The commission on Wednesday reaffirmed its general position that utilities and their corporate affiliates should not own power plants, but made an exception for Iberdrola's wind facilities after adopting new reporting requirements designed to let it monitor NYSEG's and RG&E's transmission operations more closely.
Iberdrola has agreed not to own any fossil-fuel generation, including RG&E's Russell Station, which will be sold. Iberdrola, but not NYSEG or RG&E, may own wind farms.
Schumer said the PSC made the right decision.
"Today's Public Service Commission unanimous ruling appears to strike a good balance between protecting New York consumers and encouraging investment in alternative energy," he said.
If Iberdrola completes the purchase of Energy East, the company will own its first regulated utilities in the United States. Besides NYSEG and RG&E, Energy East owns four small utilities in New England.
NYSEG has 872,000 electricity customers and 256,000 natural gas customers, including customers in southern Cayuga County, southeastern Madison County and pockets of southwestern Onondaga County. RG&E has 360,000 electricity customers and 297,000 natural gas customers in a nine-county area around Rochester, including northern Cayuga County.
You can contact staff writer Tim Knauss at tknauss@syracuse.com or 470-3023.
Deal to Double Wind Power in the State
ALBANY — State regulators approved a deal on Wednesday that will allow the construction of hundreds of new wind turbines in New York, doubling the amount of wind power capacity within a few years.
The Public Service Commission voted unanimously to allow Iberdrola S.A., a Spanish energy conglomerate, to acquire Energy East, a Maine-based utility with operations in five states.
Iberdrola said earlier this summer that it would invest at least $2 billion in wind turbines across upstate New York if the commission allowed it to acquire Energy East, subsidiaries of which supply electricity or natural gas to 1.7 million customers in the state.
The commission’s decision was the final hurdle for the $4.6 billion deal, which had been approved by federal and other state regulators, but spent a year under scrutiny by the commission’s staff, which recommended that it be blocked.
In approving the acquisition, the commission substantially lightened the conditions of sale that had been recommended by its staff, which had been criticized as onerous by Iberdrola and elected officials of both parties. The commission likewise moderated the recommendations made in June by an administrative law judge, who largely endorsed the staff proposal.
For example, the commission said that Iberdrola would need to provide only $275 million worth of rebates to Energy East’s current New York customers, far less than the $646 million the commission’s analysts had earlier proposed.
The commission’s staff had also opposed allowing Iberdrola to build wind turbines in the state, arguing that it would violate a longstanding commission policy to prevent the generation, transmission and distribution of power by a single company, which could leave customers and suppliers vulnerable to price manipulation.
But the commission members said they would allow Iberdrola to develop wind power as long as it obeyed restrictions devised to mitigate the risk of price manipulation.
“Developing renewable energy sources is critically important for New York,” said Garry A. Brown, the commission’s chairman. “Our decision today allows Iberdrola to fulfill its commitment to invest in renewable energy projects in New York State.”
In a statement, Gov. David A. Paterson said the commission had “struck a well-considered balance” in its proposal. “I anticipate the company will readily embrace this decision and accept its conditions, and I welcome Iberdrola to New York,” Mr. Paterson said.
But opponents of the deal, including the Independent Power Producers of New York, a trade group of utilities, said they remained worried that Iberdrola would gain too much market power under the deal.
“My concern is that there are a multitude of wind generators that want to operate in New York, so it is critical that Iberdrola respect the limitations that have been put on them, so that there is not a potential for market manipulation,” said Gavin J. Donohue, the group’s president.
Under the terms of the deal, Iberdrola would be bound to invest $200 million in wind power. But the company has promised to spend 10 times that amount, with plans for numerous wind parks spread throughout upstate New York.
New York is expected to have about 1,000 megawatts of existing capacity by the end of this year, and the plans would add about 1,000 megawatts of wind capacity to the state within a few years.
“It is a really large investment and a very significant number,” said Carol E. Murphy, executive director of the Alliance for Clean Energy New York, a trade group of environmental advocates and wind power producers, including Iberdrola. “This is a major infusion of dollars and investment into our wind industry.”
Under commission rules, the staff will release a detailed version of the proposal in coming days. It will then be up to Iberdrola to agree to the deal, if it so chooses. Elected officials, including Mr. Paterson, said they expected the company to accept it.
In a statement, the company said, “We thank the commission for its time and effort on the matter, and we look forward to reviewing the order to determine next steps.”
Last week, the commission postponed a vote on the Iberdrola acquisition after one commissioner fell ill; a second commissioner was also absent on the day of the vote and soon announced that she was resigning from the commission for personal reasons. The vote on Wednesday was 4-0.
The commission’s proposal also included a requirement that Iberdrola insulate its New York operations from any financial risks the company assumes in other states or abroad. Iberdrola would also have to divest Energy East’s fossil fuel generating plants, though it could retain the company’s hydroelectric power operations.
United States Senator Charles E. Schumer, who was among the critics of the original requirement that Iberdrola drop its wind power plans, also praised the deal.
“We have argued long and hard for Iberdrola’s ability to develop wind power, and we very much urge them to accept this ruling,” Mr. Schumer said in a statement.
The Public Service Commission voted unanimously to allow Iberdrola S.A., a Spanish energy conglomerate, to acquire Energy East, a Maine-based utility with operations in five states.
Iberdrola said earlier this summer that it would invest at least $2 billion in wind turbines across upstate New York if the commission allowed it to acquire Energy East, subsidiaries of which supply electricity or natural gas to 1.7 million customers in the state.
The commission’s decision was the final hurdle for the $4.6 billion deal, which had been approved by federal and other state regulators, but spent a year under scrutiny by the commission’s staff, which recommended that it be blocked.
In approving the acquisition, the commission substantially lightened the conditions of sale that had been recommended by its staff, which had been criticized as onerous by Iberdrola and elected officials of both parties. The commission likewise moderated the recommendations made in June by an administrative law judge, who largely endorsed the staff proposal.
For example, the commission said that Iberdrola would need to provide only $275 million worth of rebates to Energy East’s current New York customers, far less than the $646 million the commission’s analysts had earlier proposed.
The commission’s staff had also opposed allowing Iberdrola to build wind turbines in the state, arguing that it would violate a longstanding commission policy to prevent the generation, transmission and distribution of power by a single company, which could leave customers and suppliers vulnerable to price manipulation.
But the commission members said they would allow Iberdrola to develop wind power as long as it obeyed restrictions devised to mitigate the risk of price manipulation.
“Developing renewable energy sources is critically important for New York,” said Garry A. Brown, the commission’s chairman. “Our decision today allows Iberdrola to fulfill its commitment to invest in renewable energy projects in New York State.”
In a statement, Gov. David A. Paterson said the commission had “struck a well-considered balance” in its proposal. “I anticipate the company will readily embrace this decision and accept its conditions, and I welcome Iberdrola to New York,” Mr. Paterson said.
But opponents of the deal, including the Independent Power Producers of New York, a trade group of utilities, said they remained worried that Iberdrola would gain too much market power under the deal.
“My concern is that there are a multitude of wind generators that want to operate in New York, so it is critical that Iberdrola respect the limitations that have been put on them, so that there is not a potential for market manipulation,” said Gavin J. Donohue, the group’s president.
Under the terms of the deal, Iberdrola would be bound to invest $200 million in wind power. But the company has promised to spend 10 times that amount, with plans for numerous wind parks spread throughout upstate New York.
New York is expected to have about 1,000 megawatts of existing capacity by the end of this year, and the plans would add about 1,000 megawatts of wind capacity to the state within a few years.
“It is a really large investment and a very significant number,” said Carol E. Murphy, executive director of the Alliance for Clean Energy New York, a trade group of environmental advocates and wind power producers, including Iberdrola. “This is a major infusion of dollars and investment into our wind industry.”
Under commission rules, the staff will release a detailed version of the proposal in coming days. It will then be up to Iberdrola to agree to the deal, if it so chooses. Elected officials, including Mr. Paterson, said they expected the company to accept it.
In a statement, the company said, “We thank the commission for its time and effort on the matter, and we look forward to reviewing the order to determine next steps.”
Last week, the commission postponed a vote on the Iberdrola acquisition after one commissioner fell ill; a second commissioner was also absent on the day of the vote and soon announced that she was resigning from the commission for personal reasons. The vote on Wednesday was 4-0.
The commission’s proposal also included a requirement that Iberdrola insulate its New York operations from any financial risks the company assumes in other states or abroad. Iberdrola would also have to divest Energy East’s fossil fuel generating plants, though it could retain the company’s hydroelectric power operations.
United States Senator Charles E. Schumer, who was among the critics of the original requirement that Iberdrola drop its wind power plans, also praised the deal.
“We have argued long and hard for Iberdrola’s ability to develop wind power, and we very much urge them to accept this ruling,” Mr. Schumer said in a statement.
Wednesday, September 03, 2008
Investigation into business practices fails to derail Noble IPO
US wind farm developer Noble Environmental Power yesterday moved a step closer to its planned IPO, despite an ongoing investigation into the company by New York State Attorney General.
The company, which filed plans for a $375m IPO on the Nasdaq back in May, confirmed yesterday that it would be offering around 24.44 million common shares as part of the floatation. It failed to offer a price range for the shares.
The announcement signals that the IPO is set to proceed despite an ongoing probe into its business activities by the New York State Attorney General.
Noble Environmental and Mass.-based First Wind Holdings, formerly known as UPC Wind, were both issued with civil subpoenas back in July as part of an investigation into alleged improper dealings with public officials and anti-competitive practices.
Speaking at the time, Attorney General Andrew M. Cuomo said his office had received numerous complaints regarding the two companies alleging improper relations with local officials.
"The use of wind power, like all renewable energy sources, should be encouraged to help clean our air and end our reliance on fossil fuels," he said. "However, public integrity remains a top priority of my office and if dirty tricks are used to facilitate even clean-energy projects, my office will put a stop to it."
The subpoenas requested a wide range of documents, including information on all benefits given to any individual or entity in connection with wind farm activity, and any agreements between wind companies that may indicate anti-competitive practices.
Noble Environmental has said that it is cooperating fully with the requests of the New York State Attorney General.
First Wind is also pressing ahead with an IPO, announcing plans last month for a $450m floatation.
The company, which filed plans for a $375m IPO on the Nasdaq back in May, confirmed yesterday that it would be offering around 24.44 million common shares as part of the floatation. It failed to offer a price range for the shares.
The announcement signals that the IPO is set to proceed despite an ongoing probe into its business activities by the New York State Attorney General.
Noble Environmental and Mass.-based First Wind Holdings, formerly known as UPC Wind, were both issued with civil subpoenas back in July as part of an investigation into alleged improper dealings with public officials and anti-competitive practices.
Speaking at the time, Attorney General Andrew M. Cuomo said his office had received numerous complaints regarding the two companies alleging improper relations with local officials.
"The use of wind power, like all renewable energy sources, should be encouraged to help clean our air and end our reliance on fossil fuels," he said. "However, public integrity remains a top priority of my office and if dirty tricks are used to facilitate even clean-energy projects, my office will put a stop to it."
The subpoenas requested a wide range of documents, including information on all benefits given to any individual or entity in connection with wind farm activity, and any agreements between wind companies that may indicate anti-competitive practices.
Noble Environmental has said that it is cooperating fully with the requests of the New York State Attorney General.
First Wind is also pressing ahead with an IPO, announcing plans last month for a $450m floatation.
P.S.C. approves Iberdrola deal
The New York state Public Service Commission Wednesday afternoon approved the takeover of Energy East Corporation, the parent company of RG&E and NYSEG, by Spanish energy giant Iberdrola. The vote was 4-0.
It is a blockbuster deal that took months of negotiations between Iberdrola and the P.S.C staff. Just how it affects RG&E customers' bills is unclear. But Iberdrola did agree to provide $275-million in public benefits to customers. The P.S.C. Staff originally asked for more than $600 million in ratepayer benefits.
Rochester Gas and Electric was acquired by Energy East several years ago.
Iberdrola will also be required to make a $200 million investment in renewable energy resources like wind power. The OK is also contingent on Iberdrola meeting numerous conditions that affect safety and reliability, and customer service.
Local customer advocate Charles Straka, who has represented consumers in previous RG&E rate cases, remains skeptical. He says the deal would only provide a five percent decrease in rates for customers. Straka says the P.S.C. staff has concluded that RG&E electric rates are excessive.
RG&E is at the end of a multi-year rate agreement with the P.S.C., and a new rate case is expected to begin within a year. It has been delayed by the hearings regarding Iberdrola.
It is a blockbuster deal that took months of negotiations between Iberdrola and the P.S.C staff. Just how it affects RG&E customers' bills is unclear. But Iberdrola did agree to provide $275-million in public benefits to customers. The P.S.C. Staff originally asked for more than $600 million in ratepayer benefits.
Rochester Gas and Electric was acquired by Energy East several years ago.
Iberdrola will also be required to make a $200 million investment in renewable energy resources like wind power. The OK is also contingent on Iberdrola meeting numerous conditions that affect safety and reliability, and customer service.
Local customer advocate Charles Straka, who has represented consumers in previous RG&E rate cases, remains skeptical. He says the deal would only provide a five percent decrease in rates for customers. Straka says the P.S.C. staff has concluded that RG&E electric rates are excessive.
RG&E is at the end of a multi-year rate agreement with the P.S.C., and a new rate case is expected to begin within a year. It has been delayed by the hearings regarding Iberdrola.
PSC approves Iberdrola-Energy East merger
The $4.5 billion merger between Energy East Corp. and Spanish power producer Iberdrola SA won the unanimous approval today of the state Public Service Commission, removing the final regulatory hurdle facing the deal.
The commission approved the merger in a 4-0 vote, ending a lengthy review that led to state regulators imposing a host of conditions on the deal.
Those conditions include a commitment by Iberdrola to spend $200 million on new wind power facilities in New York within roughly two years, which PSC officials said would add about 100 megawatts of renewable generating capacity.
Iberdrola also would be required to pass on between $250 million and $300 million in benefits to customers of New York State Electric & Gas Corp. and Rochester Gas & Electric Corp., the two New York utilities owned by Energy East. NYSEG provides electric service, and some natural gas service, to about 175,000 customers in some suburban and rural portions of Western New York.
The commission also imposed several conditions to limit the market power that Iberdrola would gain by owning wind energy projects at the same time that it owns electricity transmission systems within the state.
The PSC, for a decade, has pushed for the state's utilities to divest their conventional power generating plants and focus their operations on transporting and delivering electricity to their commercial and residential customers.
Some PSC commissioners had raised concerns that Iberdrola would have too much market clout … and potentially could unfairly favor its own wind farms … if it was permitted to allow substantial wind power facilities, as well as the power lines that would transmit that electricity and that of competing power plants.
Iberdrola would be barred from owning any New York power plants that are powered by fossil fuels, such as natural gas, coal or oil. The company also would be required to sell fossil fuel-powered generating stations currently owned by RG&E.
The commission approved the merger in a 4-0 vote, ending a lengthy review that led to state regulators imposing a host of conditions on the deal.
Those conditions include a commitment by Iberdrola to spend $200 million on new wind power facilities in New York within roughly two years, which PSC officials said would add about 100 megawatts of renewable generating capacity.
Iberdrola also would be required to pass on between $250 million and $300 million in benefits to customers of New York State Electric & Gas Corp. and Rochester Gas & Electric Corp., the two New York utilities owned by Energy East. NYSEG provides electric service, and some natural gas service, to about 175,000 customers in some suburban and rural portions of Western New York.
The commission also imposed several conditions to limit the market power that Iberdrola would gain by owning wind energy projects at the same time that it owns electricity transmission systems within the state.
The PSC, for a decade, has pushed for the state's utilities to divest their conventional power generating plants and focus their operations on transporting and delivering electricity to their commercial and residential customers.
Some PSC commissioners had raised concerns that Iberdrola would have too much market clout … and potentially could unfairly favor its own wind farms … if it was permitted to allow substantial wind power facilities, as well as the power lines that would transmit that electricity and that of competing power plants.
Iberdrola would be barred from owning any New York power plants that are powered by fossil fuels, such as natural gas, coal or oil. The company also would be required to sell fossil fuel-powered generating stations currently owned by RG&E.
Iberdrola Buys OFF NYS - PSC fails to protect the public
The four remaining PSC Commissioners all voted YES on the Iberdrola acquisition of Energy East. For a mere $275,000,000 + another $25,000,000, another foreign monopoly buys an important utility infrastructure and gets a bonus – the special exemption – to the well established policy of vertical integration prohibition. Shame on the PSC Commissioners and even greater disdain to the PSC Staff for being enablers of this betrayal.
PSC meeting on Iberdrola is today
MADRID, Sept 3 (Reuters) - A ruling by regulators expected on Wednesday on the planned acquisition of U.S. company Energy East (EAS.N: Quote, Profile, Research, Stock Buzz) by Spain's Iberdrola (IBE.MC: Quote, Profile, Research, Stock Buzz) will not include details of any eventual conditions on the deal, a source close to the Spanish utility said Wednesday.
"The most that can be expected today is a short statement saying whether the deal has been approved unconditionally, with conditions or rejected outright," the source said.
"If the deal is approved with conditions, these won't be released until later in the week," the source added.
Four members of the New York Public Services Commission are due to meet at 1430 GMT to discuss and possibly rule on Iberbdrola's planned $8.6 billion acquisition of Energy East and its debt.
The Spanish company needs a majority of three votes in favour of its acquisition for the deal to go ahead.
Iberdrola has said it will abandon its purchase if any restrictions are placed on its plans to develop Energy East's wind power assets.
"The most that can be expected today is a short statement saying whether the deal has been approved unconditionally, with conditions or rejected outright," the source said.
"If the deal is approved with conditions, these won't be released until later in the week," the source added.
Four members of the New York Public Services Commission are due to meet at 1430 GMT to discuss and possibly rule on Iberbdrola's planned $8.6 billion acquisition of Energy East and its debt.
The Spanish company needs a majority of three votes in favour of its acquisition for the deal to go ahead.
Iberdrola has said it will abandon its purchase if any restrictions are placed on its plans to develop Energy East's wind power assets.
PSC meeting on Iberdrola is today
New York's Public Service Commission will try again today to answer the long-running question: Should Iberdrola SA of Spain be allowed to purchase Energy East Corp. of Maine?
The PSC was widely expected to resolve the 14-month takeover issue last week, but two of the five commissioners were absent from an Albany meeting, with one announcing her resignation because she's getting married and moving out of state.
Commissioner Cheryl Buley will not participate in the Iberdrola-Energy East decision, the PSC said.
That leaves the matter in the hands of Commissioners Garry Brown, Patricia Acampora, Robert Curry and Maureen Harris. Three votes are needed to approve the deal.
Energy East is the parent company of Rochester Gas and Electric Corp. and New York State Electric and Gas Corp.
The deal has been controversial, with proponents citing Iberdrola's promise to invest $2 billion in wind energy projects in the state, and opponents saying that wind power is overrated and that RG&E and NYSEG ratepayers could be adversely affected.
The PSC was widely expected to resolve the 14-month takeover issue last week, but two of the five commissioners were absent from an Albany meeting, with one announcing her resignation because she's getting married and moving out of state.
Commissioner Cheryl Buley will not participate in the Iberdrola-Energy East decision, the PSC said.
That leaves the matter in the hands of Commissioners Garry Brown, Patricia Acampora, Robert Curry and Maureen Harris. Three votes are needed to approve the deal.
Energy East is the parent company of Rochester Gas and Electric Corp. and New York State Electric and Gas Corp.
The deal has been controversial, with proponents citing Iberdrola's promise to invest $2 billion in wind energy projects in the state, and opponents saying that wind power is overrated and that RG&E and NYSEG ratepayers could be adversely affected.
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