An EverPower Renewables wind-turbine project that has been put on hold in the community of Howard has caused concern for town of Allegany officials where a similar EverPower wind-turbine farm has been proposed.
An article printed earlier this month in The Evening Tribune in Hornell said EverPower was notified April 1 by the New York State Energy and Research Agency that Howard Wind LLC’s proposal for Renewable Energy Credits from the project was not accepted by the state agency. Consequently, EverPower officials have to consider other options for the sale of credits and power from the project, stated Kevin Sheen, senior director for EverPower.
Mr. Sheen was further quoted in the article stating that the company “had to make the difficult decision to temporarily delay the commencement of construction while we review alternative strategies.” The 25-turbine commercial wind farm was to be constructed this month in the town of Howard.
The article stated that Renewable Energy Credits are certificates issued by a government agency to a power company that utilizes environmentally friendly methods to generate electricity. The certificates can in turn be traded and sold on the open market, providing an incentive to companies that produce “green” power.
The publication also stated that the “sudden decision to halt the (Howard) project comes as Terra Firma, which acquired EverPower last August for a reported $350 million, is experiencing financial troubles.
“The British private equity firm bought EMI Group PLC for about $3.8 billion in 2007, according to a report from KPMG. But with CD sales plummeting, funds might not be raised. According to the AP, $165 million will be needed to get through the year, and the company owes $6 billion of debt as of last March, mostly to Citigroup. The company needs to raise money by June 14 according to the AP, or risk defaulting on loans. If that happens, then Citigroup might seize EMI and cause it to be sold or broken up.”
In response to this, Mr. Sheen said Terra Firma invests in a wide variety of businesses on behalf of its clients worldwide.
“It is important to note that the investment made in EverPower is completely independent of the investment in EMI Records,” he said. “Funds committed to the growth of EverPower will not be affected, either positively or negatively, by changes in EMI records.”
Mr. Sheen said he believes the current Renewable Energy Credits program used in New York state needs to be overhauled. He said that of the 31 states that use this system, almost all use a market-based implementation. For example, at a project in Pennsylvania the company is currently in a long-term power-purchase agreement with First Energy in Ohio for the sale of the power and credits for the project.
Mr. Sheen said an overhaul of the current system in New York state “would certainly be very complicated to achieve a significant amendment to the current system.
“We firmly believe, however, that until (New York) improves the current program or adopts a better system, wind-energy companies will continue to deploy resources to other states with better policies,” Mr. Sheen said.
The publication stated that EverPower was established in 2002 and is currently developing seven projects in four states, with two in New York, three in Oregon and one each in Pennsylvania and Ohio.
“Wind projects are operating in communities all over the (United States) and can be a vital part of our energy future and a great contributor to the local and national economy in the future,” Mr. Sheen said. “EverPower is pleased to be working on a project that brings the environmental and economic benefits to Allegany and (New York state.)
The company has also proposed a 29-turbine commercial wind farm for the Chipmonk and Knapp Creek area in the town of Allegany. The proposed wind farm has been opposed by members of Concerned Citizens of Cattaraugus County. The group held a public forum earlier this month that was heavily attended by residents opposed to the wind farm. A public hearing conducted last week by the Allegany Planning Board drew a similar response from a large number of area residents.
“Our decision to delay construction in Howard and our decision to move forward with Allegany is not shaped in any way by other Terra Firma businesses,” Mr. Sheen said. “We will continue to make decisions on our wind portfolio based on the market conditions and the details of each project.”
Pat Eaton, town of Allegany supervisor, said the current issue with the Howard project has caused some concern for town officials.
“Our biggest concern is that EverPower has to pay all the costs” incurred by the town for the ongoing studies and consultant fees stemming from the project, Mr. Eaton said. “We don’t want to get stuck with all these bills.”
According to the town of Allegany comptroller, the town has received $160,000 from EverPower since January 2009, and to date has spent $129,194 of that amount. The comptroller said the town recently received additional funds from EverPower to pay consultant and research fees related to the project.
Mr. Eaton said he has left a message with Dan Spitzer, a Buffalo attorney who has been hired as a consultant on the wind-farm proposal.
“I’m waiting for advice on this from Mr. Spitzer,” Mr. Eaton said. “My main concern is to make sure (EverPower) pays their bills. If they can’t, the research stops.”
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