The Laidlaw folly

With the Noble wind project receiving its preliminary approval from the Site Evaluation Committee, the Laidlaw Energy project is now facing its ultimate challenge, ie; that there's no capacity left on the transmission lines for the 60MW from Laidlaw out of Berlin. This is an issue that Mr. Bartoszek and friends have danced around for the past two years, it's one of the rabbits they said they would pull out of the hat along with their need to file with ISO New England/to be in the Queue.  I think that Laidlaw has been banking on the chance that the wind project would die in the planning process or that Mr. Bass could pull enough political strings along with his buddies at PSNH to have the State pickup the cost of the transmission line upgrade. What's also been added to the mix is the possibility that cheap Hydro Quebec power will bring somewhere between 1,000MW to 2,000MW to New England at a cost cheaper than anybody can produce it state-side. This scheme is so profitable for Hydro Quebec that they are prepared to pay for the cost of the new transmisson line. Some of the more astute investors in Laidlaw can see the handwriting on the wall and are cashing-in their chips while there's still around $0.0004 of value in the junk stock. I expect that the local Bartoszek clones will continue to support the Laidlaw project since their collective egos will not allow them to consider that they were duped and that they may have made a mistake. Not that I'm a blind supporter of casino gambling, but the proposal to bring a casino to Berlin with about 150 jobs and substantial tax payments sure puts into perspective the folly of Laidlaw and their project on the mill site.

Comments

[Wing Nut]

The hill that Laidlaw needs to climb to make the Berlin plant a reality is quite high indeed. However, I would argue that the Berlin plant is not dead yet. Here are a few things to consider;

1.) What if Mr. Bartoszek & PSNH have come up with a relatively cheap way to overcome the capacity issues with the grid? I've been told that PSNH/LLEG have a plan (although nobody that I know has been able to provide any details of this plan.)

2.) What if the power purchase agreement between PSNH & LLEG is so good for LLEG that the cost & availability of wood is not an issue? The price per KWH simply escalates as the price of wood increases, meaning that LLEG cannot lose (at the expense of NH electric ratepayers). Furthermore, what if the PUC who is supposed to protect the ratepayers doesn't do the responsible thing and decides to approve this deal?

3.) What if the State of NH also ignores the fact that there isn't enough wood and approves the permit (at the expense of the Northern Forest)? And, what if they do so despite the fact that the City Fathers are opposed to a Biomass plant in the heart of the City?

My friend, this thing isn't dead yet and with all the back room politics taking place I'm not convinced that this plant won't get built. The odds are stacked against LLEG, but you should never discount the full power of greed and politics. Common sense would indicate that LLEG doesn't stand a chance. However, money & greed may ultimately win out over common sense. I fear that the monster is coming, so let's not be complacent until Mr. Bartoszek has packed his bags and left Berlin for good. I won’t rest easy until the boiler and stack are finally destroyed.

Take care............WN.

[Rocky]

All your points are valid and well taken WN

[ralph]

I wonder what we could do to help Bartoszek to leave town?

[Rocky]

For one thing, you could get in touch with the Mayor or your Councilor and let them know how you feel about the boiler and stack. You should also ask them to take whatever action deemed appropriate to make sure the boiler and stack are removed from our landscape. Thank them for staying on the course we voted for them in the first place. Call the City Manager's office 603-752-7532 and tell them to pass your views along to Mayor & Council.

[Wing Nut]

The chatter had died down here on B&C. I guess that means either people have given up and are ready to accept our new master (i.e. LLEG) or people no longer believe that the new master is coming. I sincerely hope the latter is true but given the power of PSNH I still think the LLEG plant will get constructed despite all the evidence indicating it is a very bad idea. PSNH is greasing the wheels of this plan, and once it gets rolling there is no stopping it, no matter how ridiculous it is to have a plant of this size in the middle of the City.

Take care.........WN.

[Timothy Gordon]

Another explanation could be that the supporters of Laidlaw have figured out that their spin gets countered with the truth. Stand up and take a bow Jon.

[Rocky]

Yes, Jon needs to be recognized for all the effort and time he's devoted to the issue of Laidlaw, thanks again Jon. ....The great majority of the people who visit this blog do not leave comments, but visit they do and, in the hundreds every day. Wing Nut is right, the 2,000lb elephant in the room is PSNH and their influence can not be underestimated. The Laidlaw project does not stand up to the facts/realities, but realities can be circumvented through the political process. The voters of Berlin showed incredible wisdom when they voted for the present Mayor and Council, if it wasn't for their position on Laidlaw, the project would have been rammed down our throats like it or not. Mayor and Council is the only political entity that hasn't been currupted by the Laidlaw influence when everybody else from Senator Gallus to the County Commisssioners have fallen at Bartoszek's feet and drank the koolaid. It's sad to witness the lack of vision, wisdom and integrity that so many have demonstrated over the past couple years. Let these events become lessons learned.

[Jonathan Edwards]

I really don't believe any recognition is due anyone in Berlin unless as a community we begin to speak up as a population rather than pretend we can have any influence as a silent majority. Fortunately, despite ourselves, we just may luck out from the Burgess mill site devastating us from biomass production in the middle of our city due to a power struggle that is ending PSNH's pull in NH.

Keep in mind that a 2000 lb elephant is easily visible and not able to effectively move behind closed doors. Too many zoo keepers effectively managing him from becoming too aggressive and his days in the wild are over. This elephant has been tamed by Canada and a handful of heavy hitters down state. When the potential of major increases in electrical rates becomes part of the equation, PSNH just lost it's power to those above, and it's about time. Laidlaw is following suit with a stock that can no longer climb in value but rather is suffering extreme dilution in the wake of lack of funds due to absence of power production from any owned or leased ventures. The existing coos loop with its 100 MW of maximum capacity is looking like it will become sustainably used by Noble and Clean Power. For those of you that have your doubts, go to the forum on Thursday night and learn why this outcome is most plausible.

[Jonathan Edwards]

Ellicotteville NY's experience with Laidlaw can save Berlin tens of thousands of dollars in legal fees. This court ruling is one of the most overlooked issues; carbon neutrality. A good question for Thursday night's forum would; If we can't sustain our own local forest, how does a biomass company achieve carbon neutrality by driving 75 miles each way?

"New York Court Says SEQRA Review Properly Considered Impacts of Greenhouse Gases

New York’s Appellate Division (Fourth Department) issued a decision in early February, 2009 upholding a denial by the Town of Ellicottville of site plan and special permit approval to construct a cogeneration plant using wood chips as fuel, as part of a larger development proposal. In Matter of Laidlaw Energy and Environmental Inc. v Town of Ellicottville, the court found that the conclusion contained in the New York State Environmental Quality Review Act (SEQRA) findings that "serious increases in harmful emissions" from the plant would result in an "unacceptable adverse impact" was not arbitrary and should be upheld.

In what appears to be one of, if not, the first decision in New York to deny a land use approval due to concern over carbon emissions, the court has found that this is a proper consideration under SEQRA. Unfortunately, the decision goes into little detail about the findings or the issues posed. However, thanks to Daniel Spitzer, Esq. the partner at Hodgson Russ LLP, who successfully defended the decision, we were able to obtain a copy of the Town’s detailed SEQRA findings.

The findings focused on a number of issues but Greenhouse Gases (GHGs) and Carbon Dioxide were a focus in the analysis of the cogeneration plant, noting in part: “the issue of carbon neutrality is far more complicated, and while biomass plants can be carbon neutral, the Laidlaw proposal is neither carbon neutral when viewed locally or regionally, because the Laidlaw proposal is not coupled with a sustainable agricultural management program….Laidlaw is not planting new trees to take up the carbon. It is burning the dead or trimmed mature trees, meaning the fuel source will not absorb the carbon released in equal portions.” The findings also discuss attempts to have Laidlaw put together a sustainable agricultural management program in conjunction with the plant and the refusal of Laidlaw to implement such a plan.

The findings also reviewed related impacts: “proponents for sustainable biomass plants note the importance of local fuel sources. Here, where the travel routes are up to 100 miles, the carbon dioxide released by the transporting trucks unbalances the equation, even if the facility were otherwise carbon neutral. Conservatively estimating that each truckload will come from an average distance of 50 miles away, it is expected each truck delivering chips will travel 100 miles roundtrip per delivery. Using an average fuel economy of 5 miles per gallon of diesel fuel, each delivery of chips would require the burning of 20 gallons of diesel fuel. Based on EPA estimates. Some of this will occur in Ellicottville, and all will occur in the region. Thus, Laidlaw’s project is not carbon neutral on a regional level, and because it will concentrate in Ellicottville carbon sequestered over a large area, it is not neutral on a local level.”

After noting the other potential impacts of the proposal the Town concluded that other aspects of the project could move forward, subject to conditions, but “[a]s to the new biomass plant, the Planning Board has reviewed the Alternatives discussed in the DEIS, and additional comments in the FEIS, and, for the most part believes that Laidlaw is correct, that size, technology or other alternatives are unfeasible. The exception is the No Action Alternative, which the Town believes is the required route for the biomass plant based on the record….The proposed Biomass Cogeneration Facility will have unavoidable adverse impacts on the community at unacceptable levels; is inconsistent with and will have a negative impact on the neighborhood character; presents a use inconsistent with the goals of the community as stated in the Town Comprehensive Plan and Zoning Ordinance; will create unacceptable noise levels; and significant air pollution emissions; all of which are significant, unmitigable environmental detriments; and therefore, for each of these reasons individually and collectively, as well as the others stated in this Statement of Findings and Decision, the Site Plan is denied.”

[Wing Nut]

Jon,

I still believe PSNH will build this plant. Only two things can stop them;

1.) PUC does not approve power purchase agreement between LLEG & PSNH. This is not likely as I'm being told that the PUC is not necessarily a friend to the public or to the electric rate payers of NH whom they are supposed to represent. Or,

2.) Clean power builds their plant. This is also not likely since CP doesn’t seem to have the funding in place and they lack a power purchase agreement from PSNH (yes, PSNH is playing dirty here so they can build their LLEG plant).

Basically this plant is coming even though it is a bad deal for Berlin, for the State of NH, for NH electric rate payers and for the northern forests. Mark my words, this monster is coming to our downtown. Too many dirty politicians are in way too far to stop it now. That being said, I’m glad you have not given up the fight. Take care.........WN.

[V.]

Did you say PSNH will be building this plant? That is correct this is PSNH's factory and LLEG is a temporary facilitator/operator of the plan.

[Rocky]

Does the name Bob Shaw ring a bell with anybody? Mr. Shaw lived in Colebrook and was the developer of Pontook Hydro. Much like Mr. Bartoszek, Bob Shaw did not have the means to build Pontook, but got all the permits lined up and then sold the project as a package and made enough to retire. Like Mr. Bartoszek with Charlie Bass, Mr. Shaw had a political "friend" that greased the skids in Concord, his name is Fred King, now a State Rep and former Senator. Wing Nut, I hope you're wrong, but there's a good possibility you're right about the outcome, it won't be the first time the North Country gets the wool pulled over its eyes for money. (Prostitution is age old) I believe that our strategy should be to let the PUC know that "we're up" to the PSNH relationship with Laidlaw and that we're going to be watching very closely. The PUC has a consumer advocacy board and I don't think it's too early to give them a heads up too.

[V.]

Yes this exactly what is going on. Barty only needs to package the idea and sell that lease. What else can he do, he has to dilute to pay the rent, the sooner he sells the better at this point. It is obvious. Why else would he have never made a serious attempt to work with council? Because he never has to. Now PSNH can line someone credible up to run the machine.

That "waste" steam can heat our new sparkling casino... wait... not enough parking, merchants won't be able to park in front of their stores! kill the idea! kill it! Berlin might develop a drug problem! Kill the casino! Berlin might turn into a place of crime and drugs and arsonists! Kill the Casino!!!!! Kill it! I don't want those sinners in my shoe store!!!!

[V.]

Bob Shaw.......

[V.]

Charlie Michaels......

[Wing Nut]

Rocky,

For what it is worth I've already written a letter to the PUC and they have acknowledged receipt of that letter. I expressed my concern about a supposed contract where the price paid to LLEG per KWH will go up as the price of wood increases (without any limitations). Obviously that is not a good deal for NH electric rate payers, for the Northern forest or for any other biomass plants currently in operation (due to an unfair competitive advantage). That being said, there is speculation that the PUC is a body that can be influenced by money. I cannot substantiate these rumors but there are a lot of people who give me funny looks when I say that the PUC will not allow the public (i.e. NH electric ratepayers) to be screwed by a questionable deal between PSNH & LLEG. I fear that the members of the PUC are for sale just like our crooked politicians. This is a great country, isn't it?

[Jonathan Edwards]

I would encourage everyone to go to unionleader.com and in the top left
corner go to past issues and bring up June 14 and look half way down the
right column to the links to the scrubber issues in Bow that PSNH is facing
and has faced throughout several months. I will provide the link here but
for some reason it doesn't hot link so you need to copy the whole link.

The point of the matter is that businesses and entities from the entire
State of NH will intervene against Laidlaw in Berlin, not just Berlin's city
hall if they were ever to file an application. Actually filing an
application would be the most foolish thing they could do as it will bring
the defense out of the woodwork. If anyone thinks for a minute that wood
commodity businesses throughout NH that compete for this supply won't begin
to intervene, or that environmental groups won't raise their voices as
regards sustainability or carbon neutrality or the impact of liquidation
harvesting on the prickly toed woodpecker, their head is in the sand. I
believe at this point Laidlaw is foolishly thinking they can sell the rights
to operate this boiler to someone else for a profit as they surely don't
want to run the risk of public damnation of this boiler by the heavy weight
organizations that can stamp out the vocal proponents of the plant with
court case rulings that pale by comparison to this monstrosity of a plant
due to it's many negative issues.

This plant's chances of opening in Berlin are about as good as a rebound of
the American paper industry. The problem we really face is the stagnation
created by its presence. If we didn't have the development of the Federal
prison, housing projects, and other more plausible biomass and pellet
projects in the works we'd be some hurting. With Hydro Quebec providing
thousands of Megawatts to New England with impacting the sustainability of
the northern forest do you really think that NH will ultimately still find
sense in an upgrade of 180 million to the coos loop when there is not enough
wood to sustain Laidlaw yet there is enough to sustain Clean Power and
enough grid space for Noble and Clean Power to coexist but not enough for
Laidlaw without a 180 million upgrade?

Additionally it is not unlikely that Clean Power will not build a plant due
to lack of having a power purchase agreement with PSNH. Clean Power is in
negotiations with other companies that have interest in Clean Power, however
at the same time, Clean Power has stated that they would prefer to deal with
the NH company.

I'm getting the impression we have no information as to the magnitude
of the entities that will be in opposition to the Burgess mill site ever
rearing its head again. Back room politics has been tried too often and is
now anticipated so that a powerful offense has been formed as the best
defense.

[V.]

And of course we know nothing of the magnitude of supporters for the project iethier....... Has Berlin spent those millions on housing yet? Very good news.... What about that casino? when is the vote?

[Jonathan Edwards]

V, We do have a good understanding, I think, of the magnitude of support for this project. On the opposing side, at a minimum, I think we have seen the following entities intervene on similar concerns in the past and if Laidlaw truly was a company interested in submitting an application rather than just hyping the value of the boiler as much as it can prior to a sale of it's leased interest, these entities would intervene if they are to stay consistent with what concerns they have intervened for in the past. Potential list of intervenors;
1.Wood commodity businesses in general
2.Sierra Club
3.NH Fish and game
4.AMC
5.Berlin
6.Rate Payer's Association

V-This is a formidable opposition to say the least. Testimony as to what PSNH is going through with its Bow plant continues today in the monitor and is a good example to what extremes people are now going to against PSNH. Go to concordmonitor.com today. Thanks to a higher court Chief Justice John Broderick for asking the question;" if the commission is correct in refusing to review the scrubber, who takes care of the ratepayer?" Haffer responded that the commission would review the case after the scrubber is built to see if PSNH acted prudently in its construction and to determine if the costs should be passed onto the ratepayers.

I find it pathetic that review take place after something is constructed.Wouldn't it be too late to see if PSNH or any other entity acted prudently after construction? Isn't it more sensible to review any case such as this prior to a monetary investment? Doesn't this type of review happen all too often after the fact of construction? Doesn't a review after construction provide reason for a tainted review due to the money involved? Who would want to admit in a review that was handled after construction of a multimillion dollar construction project that the project shouldn't have occurred? Aren't we schooled to review our homework Before we turn it in? With the Canadian Hydro project potentially producing over 1000 Megawatts for New England why are we not focusing more on expediting the NH projects that don't threaten additional pass through expenses to the ratepayer? There are plenty of projects and it seems that the projects that threaten the very infrastructure of our state (trees and grid space) or pollution are the projects that would inevitably lead to pass through costs leading to higher electrical rates.

For several months now the state has also been recognizing that a transmission line in the north country called the coos loop needs to be upgraded (at the rate payer's expense) at a cost of $180 million in order to allow a green biomass giant to strip the north country of it's sustainable stand of trees based on expert wood studies. PSNH is supporting this company in the north country, while not supporting another project that would not require this 180 million upgrade as the project is smaller in scope and does not risk northern forest sustainability. PSNH is well aware of forest sustainability issues with its Schiller station having to reach out further and further to keep it's biomass plant operating. Do you think for a minute that this demonstrates PSNH's eagerness to keep pass throughs from increasing rates?Does it demonstrate concern for the very infrastructure (trees) within the state of which tourists galore come to view and be a part of for one of our biggest industries NH enjoys? Do you think that the entities listed above are not going to intervene for the northern forest because Berlin is a bastard child? I don't think so. I think these entities will intervene despite Berlin.

All too often review of the bigger picture occurs too late. NH needs to keep in mind that bad decisions not only impact our current ratepayers, existing businesses and our economy, but also the prospects of people and businesses moving into areas that could use a helping hand with tax rates and jobs. It's good to see higher court Chief Justice John Broderick asking very meaningful questions, but it's a little disturbing to note this even needed to go to a higher court.

[Jonathan Edwards]

The story relative to the scrubber issues is difficult to find without copying the following link;

http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20090617/NEWS01/906170317/1043/NEWS01

[Wing Nut]

Jon,

What you say is perfectly true. The plant is as very bad idea for the very reasons that you have presented in your previous post. That being said, this country has for the longest time done things the wrong way (look at the auto industry, the failed banks, the corrupt politicians, etc.). PSNH is going to push very hard behind the scenes for this plant. You better hope the opposition really does line up to fight LLEG or we are going to be stuck with a plant in the wrong location that is bad for the City, bad for the Northern forest and bad for the NH electric ratepayers. I hope these people/groups are waiting in the wings to pounce on LLEG once the application is submitted. The fate of our fair City and of our Northern forest depends upon it.

Keep it up.............WN.

[ralph]

I just read where bidpa/Berlin want to buy 215 acres for an industrial park? Are they nuts? With everybody going to China who in hell coming to Berlin? There's already empty buildings and land at the industrial park. Somebody better wake up and put a stop to this waste of money.

[Rocky]

I just heard from a friend that Fraser Papers in Toronto has just announced that it has filed bankruptcy. I have no idea what impact that will have on the local mill, but wanted to give folks a heads up.

[Lea]

It just popped up on IHUB to. Quite a bit of Laidlaw stock (250 million shares) was traded today. I wonder if this had something to do with it.