After reading through the hysteria of negative Patch blog posts and hearing the push-back from uninformed “taxpayer” groups that fear and distrust almost any change or innovation, I’m glad that EBEC has finally posted a blog entry of their own that addresses most of the concerns voiced so far. This blog post is available in its entirety at http://eastbayenergy.org/blog/ but I thought that it would be worth excerpting and summarizing some of its key points:
Why form a quasi-agency and why does it need eminent domain? Short answer: To be able to issue bonds. “Creation of a quasi-public agency requires a specific power as an “indicia of governmental authority”. There are three powers: police, taxation and eminent domain. The use of eminent domain in member municipalities is in the legislation. Eminent domain is a serious and complex process, and there is no current plan to use it, but EBEC requires one indicia of governmental authority to issue bonds. For EBEC there are three checks on the use of eminent domain: 1.) Any EBEC project and the exercise of eminent domain will require a majority vote of the board, 2.) Use of eminent domain will require the affirmative vote of the host municipality’s appointed representative and 3.) EBEC projects will include a host community payment. The council must approve the terms of this payment and any other restrictions including the use of eminent domain. But the governmental authority of eminent domain must be in the enabling legislation so that EBEC can issue revenue bonds. EBEC will issue tax-exempt bonds to finance the Tiverton project and future projects, and will not use the bonding capacity of member cities and towns, so the municipalities will not be liable for the debt, EBEC will.”
How will the Tiverton wind energy project be funded? “Our first project, the Tiverton wind farm, is an expensive one. Our member cities and towns will reserve their bonding capacity for their own projects and our project will pay for itself. The bonds will be guaranteed by a long-term electricity purchase contract with National Grid, who will purchase the electricity the project generates. This contract is the security that bond investors will look for. It is important to state that the Tiverton project, and any other project, will be subject to rigorous due diligence examination before it goes forward and any bonds are issued.
Why was Tiverton selected? “The Tiverton site is ideal because it is large, remote from residential areas, is near a highway for delivery of equipment, is near an interconnection site to the electrical grid, and has an adequate wind resource. The site was selected after two feasibility studies by a RI engineering firm who conducted a survey of municipal property in all nine cities and towns, with the assistance of the nine municipal planning departments.”
Will this project make our electricity rates go up? The short answer is that our rates will likely go up initially anyway, but not because of EBEC: “ National Grid is required by RI law to purchase a set quantity of renewable energy each year or pay a penalty, and we want them to purchase energy generated in RI.... Electrical rates are regulated by the PUC and are a combination of the cost of procuring the electricity, transmission, operation and maintenance, taxes and the Renewable Energy Charge. Once again, under Rhode Island law National Grid (NGrid) must purchase a certain percentage of its electricity from renewable sources each year or pay a penalty. If there isn’t enough electricity from renewables produced in Rhode Island to purchase at a good price, NGrid has to buy it from out of state. The PUC regulates rates, and they ultimately regulate the cost NGrid will pay for any electricity it purchases. Because they have to buy from renewables, don’t we want NGrid to buy a Rhode Island product and keep the money in-state for our taxpayers?
These excerpts address many of the key issues that are worrying people about EBEC, but the key reason for allowing EBEC to move forward is so that it allows for the process of legislative review to take place at the State House. After this process, each City or Town that is an EBEC member will have an opportunity to review the resulting legislation and decide whether or not they want to stay as members. By all means, tell your representative about your concerns but please do some reading first. The EBEC blog site is one source of information on this topic, but there will also be others. Don't rely on any one source, but do the research before you condemn a project that seems to me to have a lot of promise for our communities.
Jim L
12:17 pm on Friday, May 18, 2012
Glad for both the posting and the facts sir, i belive this is a very important venture to the town of Tiverton and an ideal use of a majority of the industrail park space, given the terrain , the hiils and falley are suited for windmilla towers and the remaining flatland would be good for business building, if Curt can get millions we soon be able to get some state help
Tuna man
1:30 pm on Friday, May 18, 2012
Since this is in the Tiverton's ballpark then who is responceable for the upkeep,maintance and repair of this system? And who's pockets does all of this come from? Is the electric company going to have to pay double for the power generated like it's been forced to do with the Block Island wind project? If so then yes we know who will pay for that too and that will add to every electric customers bill. It will be a long time before that will change so we will just pay more each month. Someone is going to be making big money with this and it's not going to be the town or the people who reside here.
Robert E
6:28 pm on Friday, May 18, 2012
Hey Doug how is the Portsmouth wind turbine doing?
Joe Sousa.
8:18 pm on Friday, May 18, 2012
I am against any bonds floated by a quasi-agency . I understand the concept of the EBEC. I also understand I will continue to see increases in my electric bill as more of these sites are created. I may be willing to pay the increases. I am not willing to pay back bonds if the process goes the wrong way . Private venture VS. public. One puts me on the hook and the other doesn't
Robert E
8:24 pm on Friday, May 18, 2012
Not only that Joe but they can issue the bond at will there is no vote of the taxpayers and no cap on how much money they can obligate us for. What happens if we get a whole wind farm full of lemons like the one at Portsmouth High. The Government should stay out of the energy buisness. All these turbines are infrastructure and we don't have the money to maintain the infrastructure we have now.
Joe Sousa.
9:19 pm on Friday, May 18, 2012
Because of the The Davis–Bacon Act of 1931 it will cost a lot more to build.
Revenue bonds are considered riskier than general obligation bonds because repayment is dependent on specific revenue streams, such as user fees or lease .Revenue bonds issued for private institutions such as hospitals are even more risky. If the institution goes bankrupt and is unable to meet its debt obligations, the government or agency issuing the bonds for the companies is not under any legal obligation to repay the debt. This doesn't stop the lawyers and their clients from suing the parties responsible.
Jim L
9:38 pm on Friday, May 18, 2012
having read other town patchs on the ecdc deal i don't think it will fly, Tiverton needs to get the best price from private folkls they can, but NO fracking of the earth period
Dan D
6:47 am on Saturday, May 19, 2012
Im for the wind farm, and for it in Tiverton, not so sure about this quasi-private/public agency idea.
Robert E
9:31 am on Saturday, May 19, 2012
Dan I used to be for wind power but all you have to do is look at Portsmouth and what this mess is going to cost the people and the failures around the world to realize wind power will never turn a profit. This is why private investers don't want to get involved and the only way these will ever get built is gor the government to do it and just like 38 Studios it will cost the taxpayers a fortune.
Brian Medeiros
12:36 am on Sunday, May 20, 2012
Doug: Thanks for presenting the facts in a concise, direct manner. People have a right to whatever opinion they want on EBEC, or wind power in general, but it should be based on the relevant facts. I've been a supporter of alternative energy for years, so long as it can be done in a cost-effective, low-risk manner for the local communities. I'm still trying to learn more about the different aspects of this project, and having factual information is essential.
Robert E
10:15 am on Sunday, May 20, 2012
Brian why not ask Doug and his buddies on the PEDC about that lemon on a stick at the Portsmouth High School? The Portsmouth turbine shows just how unreliable this technology is. What happens when the people of the East Bay are on the hook for 20+ failed turbines at the Tiverton industrial park?
Brian Medeiros
11:59 pm on Sunday, May 20, 2012
As I said, my interest in wind & other alternative energies is dependent on it being both cost-effective & low-risk to the town. There needs to be some form of insurance/guarantee for the towns in case of turbine failure. My understanding of Portsmouth's turbine is that it's been a financial plus to the town, and despite the down-times for repairs, is expected to continue to be so. Do you have factual information to the contrary?
Jim L
10:43 am on Sunday, May 20, 2012
public is the way to go, i see no other towns looking to get into this, but wind is and should be a part of this towns future, and just about anything in the indy park is a good thing
Narragansett Warrior
11:03 am on Sunday, May 20, 2012
The hawks and falcons soar the perfect spot.
Jack Baillargeron
11:18 am on Sunday, May 20, 2012
This is how a quasi-Government entity works, It is also how once these things are in place are legislators, put in things that are to big to fail clauses that force the taxpayers to give money, forever, without the option of allowing it to fail, Until the private investors are paid. (back seat yet again for Taxpayers), Really sad is it not? Do we really want to go down this road,?
This is why the EBEC needs to be an advisory entity only, with no power over taxpayers funding or bonding powers. They are unelected and will not be answerable to taxpayers. Just another BCWA in waiting, and that is wrong no matter how it is spun.
Friday, 18 May 2012, 6:53 PM EDT
Nearly $50 million gone now
The gaming company, which relocated to Providence from Massachusetts last year in return for a $75 million taxpayer-guaranteed loan, has so far received $49.8 million of the loan proceeds, with the rest set aside as a reserve to pay off bondholders. 38 Studios says it's blown through the entire $49.8 million, Gallogly said.
Rhode Island taxpayers could be asked to pony up money to pay back the bondholders on 38 Studios' behalf as soon as next year. If the company is unable to make a $12.8 million loan payment next May the EDC will have to tap a reserve account; if that happens, Chafee is required to ask lawmakers to replenish the account.
http://www.wpri.com/dpp/news/politics/local_politics/gov-chafee-news-conference-38-studios
Robert E
11:35 am on Sunday, May 20, 2012
INDUSTRIAL WIND TURBINES DO NOT PROVIDE CLEAN ENERGY! Not one coal or gas plant the world over has been decommissioned because of IWTs...and eliminating our dependence on fossil fuels is their whole purpose. To quote an expert: “Because wind blows intermittently, electric utilities must either keep their conventional power plants running all the time to make sure the lights don’t go dark, or continually ramp up and down the output from conventional coal-or gas-fired generators (called “cycling”). But coal-fired and gas-fired generators are designed to run continuously, and if they don’t, fuel consumption and emissions generally increase.” This is happening worldwide, and in places like Colorado and Texas where CO2 and power plant pollution have increased since installing wind farms:
http://www.forbes.com/2011/07/19/wind-energy-carbon.htmlhttp://www.denverpost.com/headlines/ci_15081808
http://www.clepair.net/IerlandUdo.html
http://www.thespec.com/news/ontario/article/610422--cost-of-green-energy...
http://articles.baltimoresun.com/2011-07-25/news/bs-ed-wind-farms-201107...
The wind industry is built on crony capitalism, it is the only way it can exist. Taxpayer money builds them and power companies are mandated to buy wind generated power at much higher rates than conventionally produced power. There is no true benefit, except to wind power companies, politicians and lobbyists.
Blowin Smoke
10:52 pm on Friday, May 25, 2012
Robert E's assertions are complete fiction. For anyone interested in the facts, take a look at: http://www.umass.edu/windenergy/publications/published/communityWindFactSheets/RERL_Fact_Sheet_2a_Capacity_Factor.pdf
Jack Baillargeron
11:35 am on Sunday, May 20, 2012
Part 1
At the Bristol Town Council meeting on May 16, 2012 who started the EBEC in the first place. The EBEC had not one person get up and defend it, refute anything, those against the Bill that spoke or even defend the EBEC itself. This is an organization you support, it did not even have the guts to defend themselves on this bill in public.
One member there of the EBEC, Diane Williamson admitted, she was frustrated about all this, and that the EBEC needed to move on this Bill as the next step in their evolution and that is why they had to have the powers. She also stated that the legislators would not even support the bill unless the town gave them support beforehand. The old approve it so we can then read it. Funny I thought the EBEC was about bring renewable energy projects to the area, not forming their own company. Who new.
There was never talk of the EBEC become a quasi-government agency, nor was that what Marshall, who thought this up ever said. This thing has become a dangerous precedent for any group formed by towns to become yet more quasi-government entities in my opinion. The Apex rep. and his presentation and question to him, for me proved private enterprise is the answer period.
Jack Baillargeron
11:36 am on Sunday, May 20, 2012
Part 2
Mr. Shipiro a Representative of APEX wind, Bidding in Tiverton stated.
The company does not allow towns to own or operate the equipment or they will not build them. They are in the business of building farms all across the country that they run, and lease land from private owners or public. They fund it with their own investors and on this project need nor want public funds. Which by the way he stated is closer to $60 million not $50 million he said.
The company seems to be very upset that they are going to have to compete with the EBEC if the law passes, as eminent domain clauses would leave them unable to compete in bidding process, a well founded complaint. He also stated that, should this law pass as it is now, the Company will leave R.I., which he said will be about a $150 million loss to the State. The company informed the legislatures of this also.
They are an enormous American Company, also buying up all the Smaller outfits, nation wide, and so far have a good record, far as I can tell anyway. There link is here.
http://www.apexwind.com/news/
J. Lane McMahon
12:13 am on Monday, May 21, 2012
Jack,
Stop telling fairy tales....Apex is a subsidiary of BP....US based...NOT US comapany.
Jack Baillargeron
11:36 am on Sunday, May 20, 2012
Part 3
The Deeper I get into this, the more come to the conclusion these projects must be privatized and of a massive scope, in order to be viable. By massive scope I mean real wind farms with dozens of wind mills. When you look at the life span of just the Blades being 20-25 years and that is only with an extensive maintenance program, this is way out of the league of these towns, wanting the taxpayers to fund this.
When you are talking replacing entire farms after 20 years, even with staggering the years of individual turbines, you must have need to be making massive amounts of money to keep the business viable, that is something no government agency can do.
The turbine and electronics are completely another matter of money concerns and longtivity also, not to mention the Battery problems that still exist with, life spans, serious chemical hazards and toxicity concerns.
Good site to give you on the maintenance of these things is here.
http://www.ropeworks.com/service_wind_blade.htm
I am amazed at the recycling problem with these blades, that has now come to light. See link below, it also explains exactly how they are made, with materials and more information then you need to know lol.
http://www.appropedia.org/Recycling_of_wind_turbine_blades
Jack Baillargeron
11:40 am on Sunday, May 20, 2012
Part 4
Private Business is the way to go forward, not quasi-government, with powers the EBEC neither deserves nor earned. Appointee’s leave the taxpayer no control, and usurp the most basic right of the people, that is to elect those who would represent the people.
Jack Baillargeron
11:50 am on Sunday, May 20, 2012
Part 5
1. Fact; Power corrupts and absolute power corrupts absolutely.
2. Fact; The EBEC is a group of people wanting to become a taxpayer utility.
3. Fact; It is a fallacy that any government or quasi government entity is fiscally responsible, of efficient and not involved in fraud, waste, abuse, favoritism and cronyism.
4. Fact; Renewal energy is not at the point of viability in small form right now or in the near future. To provide the needs of this State or any State to do the stated goals of the EBEC. Only massive farms are viable.
5. Fact; All over this Country, it has already been proved small projects are not cost effective.
6. Small players in the energy field cannot survive without taxpayer funds and failure Rate is high in the industry for small projects.
7. Fact; Like all major projects of this kind, only advancing technology, and private enterprise can run and build something like this. That is a proven business formula that works.
8. Fact; no Government created agency has ever gone away once formed, unless it was due to illegality. Also none has ever done anything but grow in size, scope of work, powers, cost, and corruption.
9. Fact; The majority of people, support renewable energy, but are smart enough to know that the government id not capable of it. Technology is there yet for it to be cost friendly. One of the main problems being storage.
10. Fact, real long term numbers have yet be shown.
Narragansett Warrior
10:39 am on Friday, May 25, 2012
Perfect location for storage.Ask cyberspace URI?
Robert E
11:53 am on Sunday, May 20, 2012
Let’s Compare Power Generation Costs
Coal fired power station $79 per kw/h (kilowatt/hour)
Gas fired power station $97 per kw/h – or 1.2 times the cost of coal power
Wind farm power $1502 per kw/h – or 19 (nineteen) times the cost of coal power
Solar power $4004 per kw/h – or 50 (fifty) times the cost of coal power
they are certain to warm the hearts of those who pay the electricity bills.
DownTown
12:51 am on Tuesday, July 24, 2012
Solar costs are lower than wind costs at least using the latest tech from companies that are already manufacturing and selling it. In less than 2 years solar will compete head to head with coal and natural gas without a subsidy.
Unfortunately the area does not have the space for it.
Google put $150 million into Nano Solar a few years back and they are rolling out some mind boggling good products.
http://www.nanosolar.com/
I am surprised though that no hydro power has been developed in RI with the wealth of rivers. Its cheap to develop and provides inexpensive power.
Jack Baillargeron
11:59 am on Sunday, May 20, 2012
Wanting something from the Taxpayers does not mean you get it, why not have a vote on it, for the november election, why the big rush?
If this is so good for the taxpayers, then it should be the taxpayers who decide, because in the end, we are still a Republic, and all the smoke and mirrors of what is said in the letter above with no real long term cost of all steps and things involved in this. Does not give the EBEC or the legislature the right to deny the public a vote on a projects that cost 10's of millions of dollars.
Make no mistake there are many tax liabilties involved in this, but not with private industry. I am also against subsidies for any private industry, In this Country you succeed or fail onyour own money, not my tax money. Least it use to be that way.
Joe Sousa.
6:19 am on Monday, May 21, 2012
When I was young the "amana radar range microwave" which were new to the market cost over one thousand dollars. The same unit today cost just two hundred dollars. In time as these forms of electrical generation become common place the cost will go down. I see some merit in this venture but don't think we need a Quasi to advance the cause. Gov. should advance this technology ,but not be in charge of it. Private investment ,privately owned ,and maintained. Tax breaks and help to get the permitting processed are as far as I would go.
Narragansett Warrior
8:16 am on Saturday, May 26, 2012
Coachman's Clams Casino ,Northeast Petro,Thanks Marshfield Tri-S
Bill Carson
9:57 am on Friday, May 25, 2012
Any Scoop on the wind turbine and the parts ? Imagine having 25 broken down turbines. Where would the EBEC get the money to repair all the turbines?
William F Horan
11:22 pm on Monday, July 23, 2012
Bunko scam fraud and a looting of the electrical rate payer and tax payer while destroying our public utilities structure. SOP for the RI General Assembly and its EDC. So called renewable green energy is based on voodoo math, excessive subsidies and inflated electrical rates. We need a viable energy policy and companion conversion and distribution of electrical power that remains affordable, predictable and reliable. This EDC SOLAR and Wind turbines do not meet the requirements. Solution increase the size of natural gas transmission lines to RI and increase the size of the Johnston RI facilities, Look toward R&D disruptive technologies for the future, Global warming and peak oil are both junk science & frauds. e mist shut down and kill the ill advised and dangerous RI GA EDC EBEC before it squanders even more tax payer and rate payer monies. Both Government and Academia have over stepped their roles responsibilities and enumerated limited powers. Public Utilities and the RI PuC must be allowed to assume their charters by law roles and responsibilities. We are very shocked re the EBEC agenda and specifically exhibited behaviors attributed to elected officials. Yes,the intellectual dishonesty, ignorance & incompetence demonstrated by several political figures and elected officials!? This does not pass the smell test, business & technical models etc. Hopefully the Federal Government will shortly sunset the between 20 and 30 years support of this failed agenda.
DownTown
1:58 am on Tuesday, July 24, 2012
RI politicians realize that the taxation rates local and state have reached a saturation point where further taxation will cause exodus (case in point me). So they are going to scheme for other ways to reach the taxpayers pockets by selling services that the taxpayer has no way to avoid short of going completely off the grid.
What's next the EBPC (East Bay Phone Company)??
DownTown
1:06 am on Tuesday, July 24, 2012
Actually natural gas power plants can and do provide power as needed as well as supporting continuous operation. Gas fired plants start up quickly. Coal is not well suited to anything other than continuous operation. Ocean State Power (natural gas) in Burriville provides on demand power to ISO New England and does not run continuously. Coal is dirty no matter what they do to it there is still the issue of the ash leftover after its burned. Coal needs to be replaced by natural gas as those plants are decommissioned.
However the wind turbine is a decade or more away from parity with natural gas or coal and yes wind cannot be used as the sole or main source of power. Anyone other than a blind person can see the local turbines when they are not spinning. They spin when there is a minimum of wind - the bigger the turbine the bigger the minimum and they cannot spin in high winds either. The turbines are maintenance heavy and have an estimated life span of only 20 years.
New England uses no oil fired plants for power. The last being the one on the Cape that was decommissioned some time ago.
DownTown
1:07 am on Tuesday, July 24, 2012
Next years National Grid rates are headed down to 5 cents/kwh for the power alone so anything over that for the price of power is extra that consumers will pay.
Wind cannot replace coal because coal provides continuous power to the grid and wind cannot. Wind will always be an expensive supplement to the grid.
Wind could never provide the entire nations power needs unless every home and business had one and in the case of business some would need dozens and some would need hundreds and some would need thousands. 100's of millions of turbines would be necessary to come close to that fantasy.
Didn't all the towns that backed the EBEC back out of it? That was the smart thing to do. There is a huge downside to this and a minuscule if any upside.
Buying a product made overseas (components for these are mostly made overseas and the best products are made overseas) and installing it in RI does not make it a RI product. Electricity is a service not a product and the EBEC's entire propaganda spiel is fatally flawed because they don't even understand the electrical grid.
On top of that charging people more (that is the eventual goal of the EBEC) for something that is already sold in RI at one of the highest rates in the nation is outright theft no matter what these idiots want to call it. When I see a black kettle I see a black kettle but I'm not sure what a politician sees but I'm sure it's not a black kettle.
BILL KELLY
1:11 am on Tuesday, July 24, 2012
When they finish the roof over the town of Tiverton it will be the world's largest insane asylum. They are truly a village with an extra idiot or two.
DownTown
1:15 am on Tuesday, July 24, 2012
Is the turbine moving at Safeway yet? I hope they don't get stuck with a lemon like Portsmouth did. Good people at Safeway.
Jack Baillargeron
1:29 am on Tuesday, July 24, 2012
After they got the bugs out of it, downtown it seems to have been running fine everydat I have been by it lately. But that is privately owned and grandfathered in on the ordinences so I doubt many more private owners will be able to do it. It is cool that it can be lowered hydralicly if a heavey wind or hurricane comes though. Alsomakes for economical repair I would think.
Jack Baillargeron
1:25 am on Tuesday, July 24, 2012
Problem is after this guy posted this and many people did actually look at waht it really was, we found out that it was and still is and always wil be a scam to rape taxpayers period.
The lies that were on that site and the minutes of meetings of these EBEC people proved, once and for all they are evil in my opinion that support this, with dreams of money our money for them!!
Bill Carson
8:14 am on Tuesday, July 24, 2012
The EBEC is going forward ! East Bay Energy Consortium (EBEC) is a volunteer group of people from nine towns. The only background any of them have with industrial wind is the Portsmouth High School finical fiasco a total failure.
This is about giving people power and money who have only one thought of taking your property by Eminent Domain. These volunteers will form a new state quasi-public agency and issue $60 million in high interest revenue bonds. 38 Studios all over again.
The purpose of the EBEC looks to stop private investment in any renewable wind projects and give the EBEC power through Eminent Domain and special private laws for only the EBEC.
.
http://oceanstateteapartyinaction.wordpress.com/2012/06/08/east-bay-energy-consortium-press-and-public-dont-be-fooled/