Defining success

If I was a gambler, I would now put my money on the fact that Berlin will be blessed with an extra large sized and noisy power plant in its downtown. (Sorry neighbors) For months I’ve been saying that the project had a 50/50 chance of being successful, I’m now changing those odds to 80/20 in the affirmative. I believe it’s important to recognize that the project can be successful without that success being shared by the community as a whole. A few years ago there was another project just up the street/river in Dummer that is a close cousin of the Laidlaw project. Pontook Hydro was built with the same type of hype and political crass that we’ve seen here in Berlin. Pontook too had a “wanna-be” developer much like Mr. Bartoszek who had neither money nor experience, but managed to pull off the project by seducing the right politicians who are easily swayed since they have no sense of place or value. The outcome in Berlin will be the same as it was in Dummer, the community prostitutes its resource for the crumbs that will fall from the corporate table in the form of taxes. (After abatements, depreciations, exemptions etc). Both projects will have negative impacts on their respective communities for generations to come and, most importantly, they close the door to other projects with much more potential and higher returns for their citizens. Just a few days ago I accidently came across a developer who has been waiting in the wings to see if the so called Laidlaw project was going to collapse under its own weight. He has an industrial project that will employ 200 people and his project was probably going to pay twice as much in taxes due to a higher capital investment. At this time this developer has begun scouting other communities to locate his project and Berlin will again end up the loser. I’ve written several posts about the need for Berlin and the region to define a vision and establishing some goals and criteria. If such a strategy existed we wouldn’t be sacrificing our quality of life, our downtown and the mill property for 40 jobs. Without a vision of its future and in the absence of anything better, plus being desperate, Berlin will again settle for… ….”whatever”. So yes, the Laidlaw project will more than likely succeed and those without an ounce of imagination or vision will cheer, but Berlin will continue to fail as a successful community. Once the noise keeps us awake and the smoke starts coming out of the stack (Barry Kelley will smile again), Berlin will be ready for the next smooth talking salesman to sell them another bill of goods. How does that saying go……..doing the same thing over and over again and expecting a different result is a form of…. insanity?

Comments

[Tony]

"doing the same thing over and over again and expecting a different result".... JON EDWARDS maybe??? Haha, good to see you're coming around to the side of reality, Rocky.

[warren,]

Your Entire Past Attitude towards Industry precludes the credibilty of that vague statement of an Industrial Developer "waiting in the wings" with 200 jobs. "Free Beer Tomorrow, and a Chicken in Every Pot?" Why ever would the Presence of Berlin Station eliminate the possibility of another INDUSTRY coming to Berlin? Logically, This is a step in the right direction to MORE Industry, not Less. One attracts the Other, in other words, Why would a productive Industry be Upset about the Presence of a Biomass Plant? Heck, it could actually be a BENEFIT to Them if they Colocate!
More likely, Desperation is now setting in and You are grasping at Straws, spreading false Rumors & Propaganda.

[warren,]

Hey Antonio? Check this Out...

http://www.hartfordbusiness.com/news18442.html

Is not Connecticut Northeast Utilities Home State? They can NOT push Two Lousy Wind Towers past some Nutmegger's, Yet they expect Granite Stater's to Roll Over for 1000 Transmission Towers transporting Brown Hydro Electricity from another Country to.....Connecticut among other Southern NE States???
Hmmm.

[egrohs]

Thought it would never get to the appeal process Jon? You were pretty confident the ppa would never move forward. Couple changes, it's a go. This project is bigger than you think. Reminds me of Jersey politics. Berlin Station is coming. Appeals will come & go. All part of the process. When there's only a couple intervenors, one of whom has an obvious vendetta against the project and the others being Ipp's that are threatened by the competition, those appeals will fall on deaf ears. You have a long history of being wrong when it comes to this project moving forward. Same old song. You obviously have the wine, Cate Street has plenty of cheese, meet you at Berlin Station for the ribbon cutting ceremony.

As our good pal Mikey would say, Umquam Porro. Ever forward my friends. Ever Forward.

Anyone catch the scientific rebuttal of the Manomet study released the last couple days. Interesting reading, Lolololol.

Someone should also send Biomass Magazine the memo that the PPA was revised to make it practical & viable. That article should be popping up here any day or hour now. It's Antonio's favorite article. Guess they didn't get the updates.

[warren,]

I think Rocky would prefer "Hasta La Victoria Siempre"....

[wood burner]

PLAIN AND SIMPLE!!!

Out with the Old

With expired power purchase agreements and no interested buyers, four New Hampshire biomass power plants face possible shutdowns that would impact more than just the facilities themselves.
By Lisa Gibson | May 24, 2011

In the late 1980s, the state of New Hampshire made sure it was economically wise and feasible to construct new biomass power plants that would help reach renewable energy goals, even though its renewable portfolio standard (RPS) was not implemented yet. Part of the state’s push for the new, clean power included forcing its largest power distributor, Public Service New Hampshire, to enter into 20-year power purchase agreements with six independent biomass power plants. So with long-term revenue assurance in hand, those plants were constructed and each began producing between 15 and 20 megawatts (MW) for distribution to the utility’s ratepayers.

Fast-forward to today. Four of those power agreements have expired and PSNH has no interest in renewing them; the spot market for power and renewable energy certificates (RECs) is grossly unsatisfying due to depressed pricing; and New Hampshire’s RPS isn’t conducive to older renewable power.

Without improvements to policy or increases in power and REC prices, the outlook is bleak for Bridgewater Power Co., Indeck Alexandria, and Pinetree Power Tamworth and Bethlehem, both owned by GDF Suez. “Right now we’re losing money,” says Mike O’Leary, plant manager for Bridgewater Power, owned by Harbert Power Corp. and Public Service Enterprise Group. “If the situation continues based on the current forecast for power prices and REC prices, I don’t see [Bridgewater] surviving until the end of this year.”

Contributing Factors

Since the expiration of the long-term agreements with PSNH, some of the plants, including Bridgewater, were able to establish short-term agreements on the spot market with smaller utilities. But severely depressed power and REC prices don’t support continued operations or justify longer-term agreements, O’Leary says. “We’re hoping we can offer a long-term agreement that makes sense to keep us operating.”

Exacerbating the already enormous problem is the structure of the state’s 23.8 percent by 2025 RPS. Like some other New England RPSs, New Hampshire’s divides RECs into classes I, II, III and IV. Biomass power can be eligible for classes I and III. A number of issues can determine biomass REC categorization, but because of their operation start dates, none of the four plants are certified for anything above Class III, and some are not even certified for that.

REC prices are low because of an overcapacity of qualifiers, and the demand requirements of Class III RECs are based off utility load, which has gone down significantly with the economic downturn, O’Leary says. “With the REC program, you can’t foresee everything and I think that the REC was really designed to compensate the renewables for the fact that renewables cost more than conventional generation and then the energy would take care of itself,” he says. “Well, unfortunately, the energy prices dropped incredibly low and the REC price dropped to a fraction of the alternative compliance payment.”

The RPS specifies percentage requirements for each class every year up until 2025. The problem is that no increase in Class III energy is required of utilities above the current 6.5 percent. For 2011, the Class I requirement is 2 percent, increasing 1 percent each year until it reaches 16 percent in 2025. “Class III is already topped out,” says Scott Tranchemontagne, president of Montagne Communications. He works closely with the biomass industry and launched a website to bring attention to New Hampshire’s biomass issues. “What they need moving forward is more Class I energy and less Class III energy. I firmly believe that if they were able to offer Class I RECs, they would have a much stronger chance of getting a power purchase agreement.”

And he might be on the right track, as PSNH has entered into a PPA with the Berlin Project, a proposed 70 MW biomass power plant in Berlin, N.H. “It may not be a case of apples and oranges, but it is certainly a case of McIntosh versus Golden Delicious,” says Martin Murray, PSNH senior corporate news representative. “They’re all biomass plants, but the fact is the [Berlin] plant will produce Class I renewable energy certificates, which are different entirely from Class III.” But Murray also emphasizes the market price problems, saying the 20-year agreements were extremely costly to PSNH’s ratepayers and renewals are not in the best interest of the utility’s customers. “We’re just getting out from under those,” he says. “We do have an obligation to meet all our requirements; to serve customers and to procure renewable energy certificates, but we also have an obligation to do so in the most cost-effective manner. Our customers just can’t afford anymore to be paying more for energy than what it’s worth.”

Martin points out that PSNH is not the only utility that is uninterested in purchasing power and RECs from the biomass power plants and acknowledges their challenge. “These biomass power plants are in a pickle,” he says. “They are finding it very difficult in today’s deregulated marketplace to sell their product and to make a product based on the market price. Their production cost is at or above market price.”

The plants are caught in a downward portion of an economic cycle, he adds, and given the cyclical nature of the business, might find success again down the road if they can survive this difficult streak. But PSNH won’t be the saving grace in the meantime. “They’ve gotten our money in the past,” Martin says. “We don’t want to hand it over again in the future, at least not without a well-reasoned discussion about the costs and the benefits.”

Despite PSNH’s seemingly steadfast refusal to renew the agreements, O’Leary isn’t bitter and instead expresses understanding of the utility’s reasoning. “We’re not looking for a long-term agreement,” he says. “We understand that there is more risk to ratepayers. We understand that PSNH has an obligation to their ratepayers. We’re looking for a short-term bridge that gets us to the point where the market turns around.”

Not-So-Quick Fix

It seems a bridge is crucial, but it may not connect to a better market. If the push for changes such as updates to the RPS succeed, it might simply bridge the older biomass power plants to a more friendly policy environment. But a policy change will take time, making that bridge from here to there even more crucial.

Working around policy changes, it’s possible for the power plants to qualify for Class I RECs, but the process involves substantial upgrades that would expand capacity and in some cases add emission controls. Bridgewater currently sells energy to power distributor ISO-New England and RECs to the Class I market in Connecticut. The plant isn’t even certified for Class III in New Hampshire because of its particulate emissions, so the investment to qualify for Class I in New Hampshire would be outrageous. “We’ve made an offer to the utility to put in particulate emissions removal and qualify for Class III if we could get a contract for a certain period of time,” O’Leary says.

So the better option seems to be a change to the RPS itself, which could include a new alternative compliance payment amount—paid by the load-serving utility to the power generator—or a percentage requirement change for REC classes, O’Leary says. “We feel like we are victims of short-term low natural gas prices, and we think it’s in the best interest of the state to come up with a mechanism that keeps us going until those natural gas prices rebound, which will bring up the regional average for energy.”

Some of the state’s politicians realize that sustaining operation of the plants is important, Murray says, and if the solution is subsidizing by the state, PSNH only asks that the burden be shared by all the state’s energy customers, not just its own. “People want to find a win-win solution,” Murray says. “There are discussions going on but no solution has been found because it is a real challenge.”
In fact, a number of discussions seem to be underway with multiple organizations pulling state senators and even Gov. John Lynch into the mix to help find that solution. The New Hampshire Timberland Owners Association has held a series of meetings to address the problems, drawing about 200 people to a mid-February gathering designed to discuss options to support the plants, according to the association’s program director Eric Johnson. “We’re fortunate we’re a small state and access to politicians is pretty readily available,” he says. “A lot are small business owners themselves and understand the risks, investments. A lot have taken the perspective that this is a small business issue.”

Trickledown

The shuttering of the plants would have an enormous impact on the state of New Hampshire, not the least of which falling on the loggers and feedstock providers, thus the push from the timber industry to solve the problem. “Those power plants consume a tremendous amount of low-grade wood and that’s of concern to me as a logging contractor,” Johnson explains. “If I can’t get all the low-grade wood on a typical harvest, then I’m forced to take only the nicer wood in order to make that a profitable operation.”

An ideal split for a timberland owner is one-third low-grade wood, one-third mid-grade and one-third high grade, he says. But more often than not the composition is 50 to 60 percent low-grade wood. It can be used for pulpwood or cordwood, but most is only used in whole tree chips. “If we’re going to sustain and continue to grow good wood, we need to have a market for the low-grade wood that comes out of a typical forest in New England,” Johnson says. Each of the state’s six independent biomass power plants use around 200,000 tons of wood annually, which is a large portion of the wood supply, he says, adding the two plants still under long-term power agreements are teetering on contract expiration, as well. The delivered price of that wood is about $25 per ton. “Logging contractors are going to be directly impacted if these plants shut down,” Johnson says. “It will severely curtail their operations. They have a lot at stake.”

The trickledown effect is much greater than with natural gas operations because the feedstock is locally sourced and consumed, he adds. Together, the four plants employ between 400 and 500 people, including the feedstock suppliers in the woods. Studies have shown that the impact of the four biomass facilities to the state is around $50 million including fuel and wages, but Johnson says that’s conservative and is closer to $70 million. “That’s a significant chunk of change that will disappear from the economy,” he says.

Whatever the solution to the looming closures, it needs to take effect soon to prevent significant adverse impacts to the state, not to mention the loss of hundreds of jobs for working families. The issue has been front and center for Johnson in his work for the association for the past three or four months he says. “It has the potential to be a huge issue for us if these plants shut down. It will have a big impact on the working forest and our members.”

O’Leary exudes hope for a timely resolution and continuance of biomass operations in New Hampshire. “We’re optimistic that the load-serving entities in the state will recognize the importance of in-state generation and the economic impact of this industry.”

Author: Lisa Gibson
Associate Editor Biomass Power & Thermal
(701) 738-4952
lgibson@bbiinternational.com

[Antonio Andolini]

Consider the source!
Who is BBI International?

BBI International produces globally recognized bioenergy events and trade magazines. In addition to the International Biomass Conference & Expo and its allied regional events, BBI owns and operates the largest, longest-running ethanol conference in the world—the International Fuel Ethanol Workshop & Expo (FEW)—and the soon-to-be launched International Biorefining Conference & Trade Show. The company publishes Biomass Magazine, Ethanol Producer Magazine, Biorefining Magazine, and Biodiesel Magazine, as well as a number of ancillary products including maps, directories, e-newsletters and other Web-based industry resources.

[Antonio Andolini]

Thank you President Obama for the stimulus funds.
http://www.seattlepi.com/default/article/Report-Tax-deadbeats-pocket-billions-1393082.php

[Antonio Andolini]

Well put, Rocky. Berlin, with its short-term focus, will continue to be left out, left behind. Like any junkie, Berlin is out for a quick fix. Get it and then start looking for the next one.

[wood burner]

Ho Mighty Antonio you form Berlin?? Well run for office oh great one.You and others here seem to have all the answers right?? Don't say no, You and Rocky seem to know how to solve all Berlins problems.Through in a little Edwards,Ha Ha Ha Ha !!!He will soon see he can't play with the big boys! WELL PUT UP OR SHUT UP!!!
Don't forget this little tid bit ok? Jon been awful quiet lately? NO JON not the quiet befor the storm LMFAO!!!!

http://link.brightcove.com/services/player/bcpid71225501001?bctid=21676095001

[wood burner]

Rain on a parade??? Hummmmmm what you think Jon Boy??? So how is business going??? LOL!!! Just asking??

[wood burner]

Jon, you the PIMP of Berlins realtors?? Just asking???

[Antonio Andolini]

"....have all the answers right?"No, far from it, wood churner. We are asking the question, though. You seem to believe you have all the answers. Or should I say THE answer, namely, stick a power plant in the middle of town where once the mighty mill stood. (You remember the mill, where you were "set for life"?) Out with the old, eh? Seems more like "meet the new boss, same as the old boss." And then what? Start looking for the next fix. "Live for today, don't worry 'bout tomorrow."

[Antonio Andolini]

When all your arguments fail, attack the man (ignore his arguments.) Attack his character, attack his business...keep wasting time.

[wood burner]

Tell you what Antonio Seems like a good place to start with NO one banging the doors down!!You did not answer, you a Berlin native?? eh?? IT IS GOING TO BE BUILT!! Period!Now, what do you want to see here Tony?? NO highway to send or recieve goods!!FORGET ABOUT toursim!! Thats a WET DREAM!! We have the worst roads in the state!! Look it up!! ALL you flatlanders think a school or collage, casino,hotels will save Berlin or the OHRV system. Give me a break!! Like the south will let that happen!! LMFAO!!! So the tourist Industry will save Berlin right?? At $8.50 an hour ok.You guys NOT IN THE REAL WORLD!! What you do you do for a living Tony?? In the great northwoods? Seems you could care less about the avarge joe in Berlin thats in his 40's- 50'S and no place to go!! Put all there blood and sweat to stay here !! Tell them Antonio !!! Almightyone!!! Will the Mill in cascade hire them all back? I DOUBT IT!!Will Berlin station doubt it!Some YES experenced needed!!Same as cascade!I think alot of folks are in for a big surprise!! PEOPLE NEED TO WORK!LET"S FACE IT!!! Do I have the altermate ANSWER? HELL NO!!!! But atleast get people back to work NOW Boiler people,forestry people (trucker,cutters,labors,) not to even mentiom LOCAL SUPPLY PEOPLE,STORES, RESTRUNTS,(motels or inns short time ofcourse)WE NEED FULL TIME YEAR ROUND JOB'S!!!) NOT JUST SEASONAL!! or for a year or two!!

[Antonio Andolini]

"NO highway to send or recieve goods!!"
*So, they airlift goods to Wal-Mart, Caron Building Supply, Isaacson Steel?
"Seems you could care less about the avarge joe in Berlin thats in his 40's- 50'S and no place to go!! Put all there blood and sweat to stay here !!"
*Wouldn't be involved, would have left a long time ago, if I didn't care.
"Will the Mill in cascade hire them all back? I DOUBT IT!!Will Berlin station doubt it!Some YES experenced needed!!Same as cascade!I think alot of folks are in for a big surprise!!"
*Agreed.

[Rocky]

New and fresh ideas sure as hell scare some people, so it's best to recycle the old and familiar failed ideas. Pretty pathetic thinking process. Wood Barker, you make it sound like the world is against Berlin, you need to look closer, maybe in the mirror.

[jon]

We're all flatlanders in Berlin from a Pittsburg perception. There will be a few that exercise puffed stomachs to vent their last harrumphs that they defeated an opposition that enhanced a better project. At a minimum, it's time to put the "fists" and insults away and move the city forward. Much has come through the process of discovery that will soon be readily available to the public in the coming months that wasn't disclosed prior to. It's baffling to me as to why project proponents wouldn't have shared their specific reasons and information prior to the 11th hour and, at the same time, it's always better being late than never. There is too much at risk for anyone to assume any project has won or anyone has lost. It's been a pleasure watching debate entice a far better plan. And it's been a pleasure to watch debate attempt to preserve what we've already accomplished with northern NH biomass facilities and attempt to avoid what we've all witnessed as horrific logging practices recently that have been highlighted by demands to the return of responsible forestry going into the future. But the area and the project probably can't get a better package without significantly more risk to the economic viability of the area. I'm close to resting my case. Others are not. We need to carefully move forward in a more united front at this point in time based on information never produced until Monday of last week that potentially changes and brightens the picture going forward.

[Rocky]

As the old saying goes, "It ain't over until the fat lady sings". Let's wait and see what the community thinks about this project until it's fired up and that fat boiler sings, and sing it will. A lot of people are in for a surprise.

[warren,]

Don't Worry Rocky, The Community will L-O-V-E It!! Especially when those Pay Checks Hit Main St! And A Puff of Steam every so Often will Not even be Noticed. Time to think of Recycling this Blog to another Subject, perhaps energy related, but NOT Politics..HaHa..as Your Failed Socialist Theories did not do so well at B & C..HaHa...

[wood burner]

Great ad's in todays BDS pages 7,9 and 19!!!

[warren,]

Hey WB, Any News from Colocater(s) to the Site of Berlin's future Berlin Station? There is still plenty of room for a Developer with more Jobs...know of any just "waiting in the wings"??? I know We'll never get as many Jobs now as Dave Bertrand's proposed Marina & Yacht Club with Cassino, Hilton Hotel and Big Name Restaurants, Oh Well....

[warren,]

Steve Griffin of Isaacson's forgot to Include jon edwards in His Address....I wonder if that has any significance, hmmm.

[warren,]

...Taxman!

Still being Delinquent on One's Rental Property's going into June is Another good reason for some Economic Developement here in Berlin, Eh?

...Don't ask me what I wan't it for...

How about a Vision for Downtown Developement!!! Front & Center in Todays BDS........... PUKE!!!

[wood burner]

Hey Jon how is it going?
THE STATE OF NEW HAMPSHIRE
CHAIRMAN
Tel. (603) 271-2431
Thomas B. Getz
FAX (603) 271-3878
COMMISSION ERS
Clifton C. Below
TDD Access: Relay NH
Amy L. Ignatius
1-800-735-2964
EXECUTIVE DIRECTOR AND SECR ETARY Debra A. Howland
PUBLIC UTILITIES COMMISSION 21 S. Fruit Street, Suite 10
Website: www.puc.nh.gov
Concord, N.H. 03301-2429
May 25, 2011
Re: DE 10-195, Public Service Company ofNew Hampshire Proposed Purchase Power Agreement with Laidlaw Berlin BioPower, LLC Pending Motions for Rehearing
To the Parties:
On May 17, 2011, the Commission received a motion for rehearing of Order No_ 25,213 (Apri118, 2011) from Bridgewater Power Company, L.P., Pinetree Power, Inc., Pinetree Power-Tamworth, Inc., Springfield Power LLC, DG Whitefield, LLC d/b/a Whitefield Power & Light Company, and Indeck Energy-Alexandria, LLC in the above captioned docket. On May 18, 2011, Edrest Properties, LLC also filed a motion for rehearing of OrderNo.25,213. TheCity ofBerlinandPublicServiceCompany ofNewHampshire filed objections to the motions for rehearing on May 24,2011.
Finally, on May 18, 2011, Public Service Company ofNew Hampshire filed an amended and restated Purchase Power Agreement (PPA) with Laidlaw Berlin BioPower, LLC and Berlin Station, LLC with a letter stating that the PPA complied with the terms ofOrder No. 25,213.
Pursuant to RSA 541 :5, the Commission hereby suspends Order No 25,213 pending a decision on the motions for rehearing and determination ofcompliance of the revised PPA with the terms set forth in such order.
Sincerely,
_:~_L,-~ 1\ ~< ,(<, (
Debra A. Howland Executive Director
cc: Docket File