Another chance?

A couple days ago I heard that the deal to purchase the Cascade Mill had gone through, certainly a day to celebrate! I believe it’s too early for anyone to know for sure how many people will eventually be hired and at what wage, but regardless, this is good news for the people of Berlin/Gorham.  What concerns me for the second or third time, (Over the past 10 to 20 years) is the fact that we might again just sit back and stop the efforts to identify and develop a new economy for our North Country communities. When American Tissue filed for bankruptcy, community leaders mobilized and created strategies to deal with the impact of the mill closings. Eventually this mobilization led to the Fraser purchase which should have given us time to develop a full fledge effort at creating and diversifying our economy. But as is often the case, the Fraser purchase was seen as the economic salvation of the region. Soon the committee members lost interest, disbanded and we went on to do business as usual as if all had been resolved. Of course nothing could have been further from the truth and, if you doubt that this was a false conclusion then just look at the empty pulp mill site and the closed Cascade Mill. So, are we going to behave the same way again? My fear is that we will. Each time we recycle our old paper mill economy it shrinks and we end up with fewer and fewer jobs. I believe that we need to be thankful for the purchase of the Cascade Mill, but re-opening the Cascade Mill is not the answer to our shrinking communities and failing economy. We need to realize that the purchase of Cascade is no more than a calculated gamble by investors who will attempt to squeeze a return on their investment. It’s not that there’s anything wrong with them making a profit or that we shouldn’t be grateful for this positive development, it’s that this is not the answer to our long term economic survival and the need to develop a sustainable economy for the region. Our task remains to identify what makes sense for us to promote and develop going forward. The Cascade Mill purchase buys us time to do this. We must not repeat for the third or fourth time the mistake of the past where we sit back and wait for the next crisis to occur and where again, our backs will be to the wall. Have we learned our lesson?

Comments

[warren,]

Why not open a Branch of the "Peace and Freedom Party" right here in Berlin? Commplete with a Call Center, Printing Press, and Training Courses for Radicalizing the Youth, etc. Agitate Comrade! Grab those Staple Guns! Now is the time for Action!
Sieze the Chance!

[Rocky]

After writing my last post, I realized that I could have added a perfect example of what happens when we have our backs to the economic wall. When we're in a desperate situation, quite often we grab onto anything and everything that looks like it will save us or at least improve our lot. I believe that for a lot of folks in Berlin that, this is the case with the Laidlaw/Berlin Station/ /PSNH project. People know a power plant of that size doesn't belong in the middle of town, they know it's an eye sore, they know it will damage the quality of life, but they're desperate and it's better than "nothing". It's that "nothing" that we need to address. By doing nothing we get the crumbs that falls from the table. We continue the cycle of being at the mercy of outside forces and influence, we hold our noses and accept our lot. It doesn't have to be that way if we elect the right people, become involved and chart a course going forward.

[Tony]

GO LLEG!!!

[warren,]

Yada, Yada, Yada....

Tried that already with Bertrand, Failed Miserably. Now even His "Merry Men" have Moved On, Time You should as well. I'm Happy for Cascade and wish them Luck, with Help from the AVRRD Gas Line. Looking forward to the Colocater(s) next to Berlin's Biomass Plant! I see a Bright Future ahead, it will take some Time and Effort but will be worth it, Power to the People! and Up the Bourgeoise! Right Up, if You get My Point.

Yes, Go Get Em Berlin Biomass!

[Music Man]

Good point Rocky - when you act and look homeless and you look desperate you typically remain desperate. We have to be more selective and work together to attract viable businesses. We continue to believe in a dream and dreams are most times not reality. The fact remains that the mill site conversations have been going on for 4+ years and still nothing real. Sooner or later someone's bound to realize that this is the type of promise you get when you look desperate andbelieve in dreams that are really nightmares. By the way - Grenier's term is rounding it's last turn and can you remind me as to how many jobs this group has brought to Berlin? More dreamers.

[Rocky]

Welcome Music man. Desperation does make us do weird things, we don't do our best thinking when desperate. I'm not a great believer in politicians creating jobs, individuals and businesses create jobs, the public sector creates the climate for business to flourish. I'm just waiting for Grenier to claim that he made the Cascade sale happen and brought Laidlaw/Berlin Station/PSNH to Berlin. Dream on Paul, in private these business love you like nudists love mosquitoes.

[Music Man]

You can bet on it Rocky. Didn't you know that he orchestrated the entire sale. I've laughed more than once at the comments he made regarding the prospective buyers of the mills to only have the deal fall apart less than 30 days letter. Where the he'll did he get his degree in Finaance and Economics. Like I said before - another dreamer.

[jon]

finally New Page responds...note that Ross D'Elia represents the newly proposed fuel supplier (Richard Carrier) The enclosed email is from New Page. Carrier furnishes New Page with pulp and would be creating significant competition for New Page if the Laidlaw project ever came to fruition. here's what new page has to say.

"Firstly I would like to note that Mr. Ross D’Elia is in no position to comment on the impact of any wood consuming project on NewPage or its facilities. He has no knowledge nor involvement in our wood procurement or production activities.

Secondly, his comment in response to this question is incorrect. The Laidlaw facility will consume sawmill residual bark, forest residues produced from unmerchantable trees and tops And WHOLE TREE WOOD CHIPS. Whole tree wood chips consume the entire bole and top of the tree, the bole being the pulpwood or roundwood portion of the tree. Therefore if the Laidlaw project consumes whole tree wood chips it will be consuming pulpwood/roundwood which means that the Laidlaw project will be in direct competition with NewPage and create an immediate impact on NewPage’s ability to procure pulpwood for the Shelburne chip plant.

Thirdly the NewPage pulp and paper mill in Rumford, Maine does consume biomass and forest residues to fuel its Co-Generation boilers. Any additional biomass consuming facilities within the planned wood procurement radius will create additional competition.

Q.What effect will the Laidlaw project have on the NewPage facility?
A. We currently serve as a supplier for the NewPage facility. The NewPage facility
uses round wood and not whole tree wood chips. Therefore, it not be in competition with
Laidlaw for whole tree wood chips. In fact, I believe the Laidlaw project complement the
NewPage facility and the suppliers who provide it with round wood by creating demand for a
complementary wood product in the region.

Sincerely,

Tony Lyons
Director of Fiber Supply & Governmental Affairs
Rumford Mill
NewPage Corporation

Voice (207) 369-2615
Cell (207) 357-3440

[Antonio Andolini]

Runnin' on empty; runnin' down a dream.
From Biomass Thermal & Power:
http://www.biomassmagazine.com/articles/5513/ppa-adjustments-might-make-berlin-n-h-project-impractical

[jon]

Motion for Rehearing

May 18, 2011

Pursuant to RSA 541:3 and N.H. Code Admin. Rules Puc § 203.33, Edrest Properties LLC of

New Hampshire hereby requests rehearing of Order No. 25,213 dated April 18, 2011. In particular, Edrest Properties LLC requests that the Commission reconsider its conditional approval of the PPA between PSNH and Laidlaw Berlin BioPower, LLC (“LBB”) dated April 18, 2011. Under RSA 541:3, the Commission may grant rehearing or reconsideration when the motion states good reason for such relief.

In support hereof, Edrest Properties says as follows:

1.Significant changes to the ownership structure and fuel supplier have occurred since the PPA was conditionally approved by the PUC that can significantly impact whether the PPA is in the public interest.

2. Pursuant to RSA 162-H:11, decisions of the Committee are reviewable in accordance with RSA 541:3. Under RSA 541:3, any party to the action or proceeding before the Committee, or any person directly affected thereby, may apply for a rehearing in respect to any matter determined in the action or proceeding, or covered or included in

the order..."

3. Edrest Properties can be directly impacted by the decision of this committee by properties owned and managed within close proximity to the facility.

4.The NH SEC, due to significant changes within the ownership structure and fuel supplier have issued a new docket number for this application and are currently moving through adjucatory process. The PUC should consider the same process as a legal right of the rate payer.

5.RSA 541-A:31, in pertinent part, requires adjudicative proceedings when a matter is considered a "contested case." See RSA 541-A:31 (1997 & Supp. 2001). "Contested case" is defined as "a proceeding in which the legal rights, duties, or privileges of a party are required by law to be determined by an agency after notice and an opportunity for hearing." RSA 541-A:1, IV (Supp. 2001). As RSA 378:18 governs special contracts for service, the language contained therein determines whether there is here a contested case for which an adjudicatory proceeding is required.

6.Edrest Properties LLC contends that the PUC’s decision to approve the amended special contract without the benefit of an adjudicatory hearing pertinent to the changes in ownership structure and fuel supplier is a violation of due process under both the Federal and State Constitutions. See State v. Cannuli, 143 N.H. 149, 151 (1998). Because Part I, Article 15 of the New Hampshire Constitution is at least as protective of the ratepayers’ rights as the Due Process Clause of the Fourteenth Amendment, cf. Knowles v. Warden, N.H. State Prison, 140 N.H. 387, 389 (1995), we do not engage in a separate federal analysis. See State v. Ball, 124 N.H. 226, 232 (1983).

7. There has been considerable debate over the authority of the commission to rule on this PPA after year 2025, Commissioner Below specifically making note of this concern is this very order.

8.To date, no one other than Edrest Properties has concentrated on the impact this PPA can have on broadening the 35% depreciation zone impacting the entire value base within the city of Berlin that offsets the economic benefit derived from the PPA . Edrest Properties LLC contends that potential wood monopolization due to the new fuel supplier and related wood cost increase brings into potential jeopardy thousands of jobs and massive tax revenue risk within six towns between New Hampshire and Maine. It is no secret that all north country existing biomass facilities have been included in this docket as intervenors. Most recently, the NH SEC has received an email from New Page in Rumford Maine voicing significant concern over increased competition that in Edrest Properties’ opinion goes beyond free trade through pass through costs to the rate payer.

9.The companies,PSNH and Laidlaw Berlin Biopower/ Berlin Station, involved with the PPA would essentially be rewarded with a renewable energy project that can bring into the equation price escalation that can negate forward progression of the 25% renewable intiative prior to 2025 by forcing significant risk onto already established northern NH biomass facilities and their host towns and cities, not due to fair trade, but due to pass through costs to the ratepayer. RPS statutes include Class III source generation facilities that began operation on or before January 1, 2006 and produce electricity from eligible biomass technologies having a gross nameplate capacity of 25 megawatts or less or methane gas facilities. the total RPS obligation 13.8% for 2015 .There is significant time to rehear the potential impacts of recent changes made in both ownership and fuel provider structures prior to year 2015’s goal of 13.8% renewable derived energy production.

Respectfully

Edrest Properties LLC

Jonathan Edwards
Member

[Tony]

Jon's last hurrah...

[jon]

That would be nice, Tony, but a last hurrah only occurs if they approve the motion. Otherwise it goes to the appeal process doesn't it, Tony?

[warren,]

And how ARE those "nearby biomass operations" doing lately?

Interventions based on missunderstandings? That is W-A-Y Over Polite! Anal Pig Headedness would be more appropriate.
Berlin Biomass is a Worthy "Dream", unlike the "Pie in the Sky" Opium Fantasies of the now Come down hard Bertrand era...

[jon]

Warren, The nearby biomass operations are currently operating. That is the difference between your "worthy dream" and reality. Additionally, the biomass facilities and New Page in Rumford are testimony to thousands of jobs and massive tax revenue, where Berlin's biomass proposal is testimony to proposed jobs and revenue. Just saying.

[warren,]

An "Existence" is not much of an Operation, jon. Just saying.
Oldsmobile, Pontiac and Plymoth were ALL testimonies to thousands of jobs and massive tax revenues...

[jon]

I've often thought that of your...existence, Warren. Wishing them away on a potential proposal is as ludicrous as Wanting the job loss you exhibit. The existing biomass plants are far from going under as you will see in the coming few days my friend. Stay tuned as your three hundred foot stack may very well be the first to fall. This is a loooooonnnnngg way from over as all of you will soon see.

[warren,]

Now here is a little "something something" for the ole Hookah Pipe, http://www.cleanpowerdevelopment.us/business.php
I'm Just Hooked on a Feeling...High on Believing....

[warren,]

.....Take another Hit jon.

[egrohs]

The fat lady has stepped up to the mic. Lolololololol

PSNH to file modified PPA today
By Barbara Tetreault
May 18, 2011 12:00 am
BERLIN – Public Service of N.H. will file a modified Power Purchase Agreement with the state Public Utilities Commission today for the Laidlaw Berlin BioPower biomass plant according to a senior official at Cate Street Capital, which owns the facility.

“It’s being filed tomorrow by PSNH,” said Richard Cyr of Cate Street Capital yesterday afternoon.

The PUC last month rejected the agreement as filed, ruling it was not in the public’s interest. The agency said the contract could cost as much as $2 billion over its 20-year term. The PUC said it would approve a modified PPA that would reduce payments to approximately $1.3 billion over the 20 years.

PSHN had until today to file a modified PPA.

Intervenors also had 30 days to file for a rehearing of the decision. Edrest Properties LLC yesterday filed for a rehearing and Cyr said he understood the wood-fired Independent Power Producers had done so as well.

In his motion, Jonathan Edwards of Edrest argued the PUC should follow the example of the Site Evaluation Committee, which set up a new adjucatory proceeding in light of the proposed change in corporate structure of Laidlaw and the request to change fuel suppliers.

“The PUC should consider the same process as a legal right of the rate payer,” he wrote in his appeal.

[Antonio Andolini]

No eminent domain for private gain!
http://www.forestsociety.org/issues/hb648/

[Antonio Andolini]

Northern Pass would make the Old Man of the Mountain Sick
http://www.unionleader.com/article/20110518/OPINION02/705189991

[Antonio Andolini]

I wish the lesson was learned, Rocky, but I fear that old complacency will take over again. We could hope that if Berlin Station stays mired in the PUC / EFSEC process, folks would start realizing it's time to look elsewhere, but some like banging their head(s) against the wall. (It feels good when you stop, so let's keep at it.) We had a mill, we lost it, we got another one; we had a mill, we lost it, we got another one; we...
Reminds me of that classic definition of insanity.

[Rocky]

The whole notion of determining what we want and working towards that goal seems to be so foreign to most people in Berlin. They bitch and complain but don't get off their a$$ to do something about their circumstance. That's the difference between Berlin and say...Littleton. Littleton has a core group of people who are engaged in economic development and community development, but then they never had a paper mill that did their thinking for them.

[Antonio Andolini]

"...but then they never had a paper mill that did their thinking for them."
Precisely the problem, Rocky. Lately, just replace "paper mill" with PSNH.

[woody]

Yeah, that must be the only difference between Littleton and Berlin. Hmmmm, it has nothing to do with I93 running right through the center of the town.