Concord Steam can't find anyone to buy the power from the plant they propose to build. That's why they're so pissed.
This was in yesterday's Concord Monitor
Concord Steam's years-long effort to build a new wood-burning plant in the South End remains stalled as the company tries to find customers for the electricity it will generate and financing to build the facility, which has a price tag above $70 million.
The company's attorney, Richard Uchida, is scheduled to appear tonight before the city planning board to request a one-year extension for the project, which was originally approved by the body in 2008.
Without the extension, permission for the project would expire Dec. 17 and Concord Steam would need to go through the approval process again to build the plant on a nearly 36-acre site at Langdon Avenue and South Main Street.
"We're hoping to start things soon," said Concord Steam President Peter Bloomfield, adding, "We've been delayed 2½ years-plus now, so I've been saying this for a long time. We're going to start as soon as we can, basically."
Concord Steam provides heat to about 200 buildings, mostly in downtown. It wants to build a new plant to replace its facility on the state hospital campus. The 30-year lease on that property was set to expire in August but was extended for three years.
Land for the new plant, which would burn wood chips and produce 17 megawatts of electricity in addition to heat, was bought in 2007. The city zoning and planning boards okayed the plans in 2008. The zoning board's approval, valid for two years, was extended an additional year in February.
The cost was estimated at $70 million, though Bloomfield said that's likely risen. He did not have an updated figure.
"It's going on three years, four years since we started this project, so prices aren't getting cheaper," he said.
The facility was once expected to be completed this year. The problem, Bloomfield said, is that Concord Steam can't secure financing for the plant until it finds customers for the electricity produced there.
The New Hampshire Electric Co-op has committed to buying a 40 percent share, and a utility in Reading, Mass., will buy 33 percent, he said. But a second Massachusetts utility backed out of the project earlier this year. That 27 percent hole remains to be filled.
"We've got some positive leads," Bloomfield said. "One thing, we're trying to talk and work through the details to see if we can sell the power directly to the state of New Hampshire for use in state offices. We already sell them the steam, but it's more complicated to sell them the electricity."
Once the electricity is sold, the money should start to come together, he said.
"We've got some financing groups lined up, but they've basically said, 'Come to us when you have a final deal, and we'll see what the numbers are,' " he said.
Bloomfield has said the current plant is inefficient, leading to higher costs. The new plant is expected to lead to lower rates.
The city council in April gave the project a 50 percent break on its taxes. Instead of an estimated $1.2 million in tax payments by the company, Concord Steam will make an annual payment in lieu of taxes starting around $564,000 for 17 years.
But the city's involvement at this point is minimal, according to Carlos Baia, deputy city manager for development.
"We're very hopeful that they can move forward. . . . We just have to wait and see," he said.
(Ben Leubsdorf can be reached at 369-3307 or bleubsdorf@cmonitor.com.)
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