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Now its $275 million? It started out at $100 Million than grew to $150M, $200M. $250M and now $275M. Sounds like the "Big Dig" in Boston.
My source at PSNH confirms that story. She has been telling me the talks were ongoing ever since Cate street said they had stopped. She said the governor's office and DRED are really pushing hard to resusitate this deal.
All we can do at this point is to wait and see what happens. The value of my stock is right back where it was when I bought it so its definitely "wait and see" for me. The important thing to me is the Berlin negotiations seem to be continuing, keeping my hope up that LLEG will collect their last couple of $mil. The SEC mess is a complete unknown.
As I've told you in my email yesterday Matt, the negotiations are continuing, though sporatically, and the general feeling is that the Berlin Project is too big and involves too many people to be allowed to fail. As far as LLEG failing......if they do it'll not be due to lack of funds. The SEC mess may have sunk the California project but I doubt will have any affect on New Bedford. My one worry is if LLEG management decides that keeping the company puplic is not worth the hassle and decide to take it private.
Even if LLEG owns a portion of the project, what about the ownership of the land and buildings. The listed owner is PJPD Holdings LLC, a group of investors who are also part of Cate Street. If another group comes along with plans for the mill yard, will they talk to Cate Street or PJPD? There must be some sort of timetable agreement between PJPD and Cate St. as to when the Berlin Station project's rights to control the land and buildings cease allowing PJPD to deal with someone else.
This $2.7 million was on the books as of the end of 2010, over six months ago. We don't know where that money is now. It may have been used to purchase the New Bedford property, used for payroll, or is still sitting in the company bank account. Like everything else we talk about here it is really an unknown. Remember the $1.0 million grant given LLEG for the development of Ellicottville? Was that ever used?
I used to call my ENRON shares my "treasure" stocks I was holding onto for retirement. Let hope it doesn't come to that but I think at this juncture in time LLEG's "treasure" status is probably 50/50. The 50/50 rating is based on the fact we have no solid information either way.
Pacific Gas and Electric - huge company best known for making Erin Brokovich a household name.
No you don't understand. The independent biomass IPPs have always been a burr under PSNH's saddle since the 1980's. It all goes back to the battle over the Seabrook Nuclear Plant, competition from the IPPs,and the cancellation of the second reactor. PSNH does not like dealing with them and has always dreamed of controling the biomass generating business in NH. This is the reason for the option to buy paragraph in the PPA. If you were from NH and have had anything to do with the grid and PSNH you would know this.
They can when they feel the other company is trying to make themselves into a monopoly.
I also miss spoke - the Whitefield residents gripe is with PSNH not Berlin. They (at least the ones I talked to) feel PSNH is the cause of the problem by giving a deal to Berlin only, a plant they plan to buy and operate in the future.
From what I heard in Whitefield on Friday you'd get lynched by the Whitefield residents. Their view is Berlin was screwing them over.
Wish I'd taken it, LMAO. My wife is giving me a hard time over it - says it the first sign of Alzheimers and I should show her where all the hidden money is before I forget.....women!
what I meant to say in that last post is we didn' have a camera but I had my cell phone which I was too stupid to use as a camera. This is what 10 hours of driving does to your mind.
I am too - I bought early and the pps would have to drop quite a bit more before I see a loss. Anyway you shouldn't invest money you really need in the pinks.
We've been talking so much about Whitefield the last few days I thought it might be nice to see what the plant looked like and talk to a few locals. If we had the time I could have stopped by Berlin and Bristol too. I'm glad the lady was able to send me a picture. We didn't have our camera with us and for some dumb reason I was thinking since there wasn't any coverage I couldn't take a picture. LMAO
I guess the result of our little side trip is I tend to see the IPPs point of view and put more of the blame on PSNH and less on Cate Street and LLEG. Most of the locals I talked to put the blame squarely on PSNH and have nothing against Laidlaw. They also seem pretty steamed about the proposed HydroQuebec Power line too, mainly because of its proposed route.
We drove home to NH for a couple of days and my wife wanted to see the new Old Man of the Mountains display in Franconia Notch. We drove through Twin Mountain and I took a side trip up to Whitefield to see Whitefield Power and Light. The plant is not small in physical size. It was about three times the size of what I expected and was very impressive. Most of the chip piles are under a roof. I can only imagine what the Berlin plant will look like if it ever operates. We ate at a Chinese restaurant in Whitefield and had a chance to talk to a few of the locals. They were very supportive of the Whitefield plant and totally against the Berlin Project if it meant shutting down their plant. One of the local wood cutters was there and said if only one plant was left standing (Berlin) it was going to increase his operating costs drastically because of the time and distance involved to deliver wood to Berlin vs Whitefield and Bristol. One of the people put the blame on PSNH for "meddling" in the process. They all agreed if PSNH treated all the power plants equally there would be no problem and they would be happy to see Berlin built.
I have a picture I took of the plant but I don't have any idea how to post it.
Well the 15th has come and gone. The second so-called deadline.
Sure thing "prayer" you talked to "ed" who told you "they were told the tweets and other things were considered a problem because they were considered i guess you would call it private information that didnt go out to every one. So was his blog. So lawers sugested heavily to be quite" than he proceded to tell you personally everything that was going along. Don't you think this is kind of strange? He did just what he said the "lawyers" told him not to do.......Hummmm
Did you have the LLEG Website in mind?
Good point.
That's fine but why are the IPPs spending so much time giving interviews saying there is no negotiating going on?
Talk about mixed messages. I've heard the 15th date and I've heard they're still negotiating yet everything in print says the opposite. From what I understand everything is going on as normal at the project site which leads one to believe negotiations are ongoing. I give up!
I talked to a salesman who's called on them. All pie in the sky stuff. You're right nothing concrete.
They haven't. I made a few calls today and most think they are lacking in backing (ooh a rhyme LOL). They've been around awhile and seem to be another Clean Power, all talk and no financing. The engineers I talked to say their process seems to be too good to be true, meaning it probably ain't.
I concur
Before you get your knickers in a twist, Mr. Fortune, the guy pushing the biofuel spoke against Laidlaw at the PUC hears and said he had a better idea for the site. All the longs here made fun of him the next day. I was just reading our old friend Byte & Chew and Spence had posted his testimony. As soon as I read it I remembered him.
I didn't think so - thks matt
Give it a break, LLEG is no where in the article.
My contact at PSNH said the word "lawsuit" is being bandied about. that sounds a bit farfetched to me though.
Dunno...the article didn't specify Berlin or the millyard. They may have another location in mind. Anyway I don't put much stock in it. New Biofuel ideas and systems seem to pop up all the time and then fizzle out. Its hard to get financing for an unproved process. There was a group about 4 years ago that were going to convert the old papermill at Groveton to a biofuel project. That project died when Laidlaw and the wind farm came along to monopolize the powerline capacity. I remember the the longs here saying the wind farm would never fly (no pun intended)and its the only successful project and is in the process of being built.
Berlin Paper - Second Article
New Developer???
New developer interested in Berlin
By Barbara Tetreault
Jul 13, 2011 12:00 am
BERLIN -- With the future of the Berlin Station biomass plant in doubt, another developer is interested in Berlin for a plant that would convert biomass into ultra-clean synthetic fuel as well as produce electricity and process heat.
William Fortune of Industrial Consultants Inc., of Lee, said unlike a convention biomass plant is which is about 35 percent efficient, his proposed plant would be 85 percent efficient.
The plant would use a gasification process to convert the biomass to ultra-clean synthetic diesel and jet fuel. Fortune said the U.S. military, for one, has indicated its intention to use renewable fuels.
While renewable fuel is the primary product, the process allows for the co-production of electricity. Fortune said he projects producing 65 megawatts of electricity for the grid.
The plant would also produce steam which could be used for district heating or to run a commercial greenhouse operation.
As designed, Fortune said the plant would consume about 650,000 tons of biomass a year - about 100,000 tons less than projected for the Berlin Station. The plant would also be able to use sewer sludge, construction debris, and municipal solid waste as its fuel source.
Fortune said the plant would employ about 18 people directly but would create many more jobs in the forest industry. The plant would have low emissions and, because it uses renewable biomass, would be considered low carbon emitting.
Because of its efficiency, Fortune said the plant would be able to sell its power and heat at market rates.
Fortune has developed a business plant that calls for constructing two such plants - one in the southern part of the state and one in the northern section. The business plan notes that raising the funds to construct two plants simultaneously will be a challenge. The plan notes there are tax advantages if they can break ground in 2011.
The business plan described its mission as multi-fold - “to bring prosperity to the local community, provide an excellent return for our investors, yet at the same time set the highest standards for environmental stewardship”.
Fortune was a production engineer for 16 years at the Portsmouth Navel Shipyard where he developed, purchased, and maintained numerous equipment and facilities for the overhaul of nuclear submarines. He started Industrial Consultants Inc., in 1983. Also part of the management team is Bill Rollins, the president of NovelEdge Technologies and a consulting engineer in equipment design specializing in the power industry. Rollins has a partnership agreement with the Department of Energy for the development of advanced processes for the production of synthetic fuels.
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Cate Street is saying the financing of the project has fallen apart which is bad news.
"But Cate Street Capital spokesman Scott Tranchemontagne said the parties knew there was a June 30 deadline for an agreement to allow his company to get their financing. He said the deadline was real."
Berlin Paper - New Article
Both sides blame other in collapse of biomass project
By Barbara Tetreault
Jul 13, 2011 12:00 am
BERLIN -- More than a week has passed since Cate Street Capital announced its plans for a 75-megawatt biomass plant in Berlin were dead.
No new negotiations have been scheduled between Cate Street Capital and the six small biomass plants that have challenged the 20-year power purchase agreement between Cate Street Capital and Public Service of N.H. And both sides are blaming the other for the breakdown.
The two parties admit they were close to an agreement that would see the wood-fired Independent Power Producers withdraw their state Supreme Court appeal.
A spokesman for the IPPs said they believe there is an opportunity for both sides to benefit and are still willing to negotiate.
“We’re hopeful we can start negotiating again and stand ready to do so,’ said Paul Young.
But Cate Street Capital spokesman Scott Tranchemontagne said the parties knew there was a June 30 deadline for an agreement to allow his company to get their financing. He said the deadline was real.
Tranchemontagne said PSNH agreed to short term power purchase contracts for the IPPs which he said was their initial request. He said, however, two of the plants demanded additional incentives. He said during a conference call, Whitefield Power and Light requested a $13 million cash payment. He said Indeck Energy Services plant in Alexandra wanted PSNH to commit to purchasing over $6 million in renewable energy credits at above market price.
Young flatly denies there was a request for cash payments from any of the six plants.
“There was never a request for cash payments,” he said.
Young said it is hard to understand Cate Street Capital walking away from a 20-year power purchase agreement with PSNH.
“Those contracts are hard to come by,” he said.
He suggested Cate Street Capital made have had trouble financing the plant after the N.H. Public Utilities Commission reduced the value of the contract from $2 billion to $1.3 billion. Young said Cate Street Capital may be trying to make the IPPs the scapegoat for their failure to be able to finance the plant.
Tranchemontagne said the IPPs just got greedy.
“It’s incredibly frustrating to give the other side what they asked for in negotiations and it’s still not enough,” he said.
Work on the site is still on-going but Tranchemontagne said that will be ending in a couple of weeks. He said the crane will be moved off the site soon and the dismantling underway will end. Instead of the 20 people that have been working on the site, Tranchemontagne said a couple of employees will be left to serve as caretakers.
“We’re in the ramp down mode,” he said.
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I don't understand why - Big Bucks says he's buying all he can.
So I can tell them there really is one......
Thanks Matt