Legalectric

It’s amazing how any company can get such great incorrect, misleading, inaccurate press coverage, all over the state, with just one little AP article (and a little help from Bill Hanna, see previous post). This AP article had three material facts wrong in one paragraph — where the heck did that information come from?? How about some basic fact checking?

Here’s the paragraph — find the errors:

The $1.2 billion Hoyt Lakes project by Excelsior, a partnership of former Northern States Power Co. executives, calls for using a clean-burning technology for making electricity from coal in a process called coal gasification.

Plus this article leads us to believe that it’s all for Excelsior! Fat chance…

To its great credit, AP handled it professionally and are on it — it’s not a small thing when, on the week before the PUC cost docket public hearings, the entire state is told that the plant costs a little over half of what it really costs!
Once more with feeling, THERE WILL BE A TEST:

COST:
DOE Financial Assistance Agreement $2.155 billion
DOE Notice of Intent $1.97 billion October 2005

HOYT LAKES:
Oh please.. just google “Excelsior” and “Taconite”

Former Northern States Power...
Julie Jorgensen CV (see NSP anywhere?)

So now, when you hear these cost estimates for the Mesaba project, point at the source and say, “Hey, you’re a billion dollars off!” Aaaaaah, but what’s a billion here, a billion there…

Here’s a partial list of the articles from a google search:

Energy project kept on track
Mesabi Daily News, MN – 20 hours ago
By BILL HANNA. So just what does the congressional language fix to last yearâ??s energy bill mean to the Excelsior Energy Inc. coal …

Congress passes tax benefit for coal gassification plant
West Central Tribune, MN – Dec 9, 2006
By CHRIS WILLIAMS AP Writer. AP – Saturday, December 09, 2006. An company with plans to build a clean-burning coal power plant on …

Senate passes tax relief for Iron Range gassification plant
Pioneer Press, MN – Dec 9, 2006
AP. UNDATED – An company with plans to build a high-tech power plant on the Iron Range could benefit from one of the final acts of …

Congress passes tax benefit for coal gassification plant
Winona Daily News, MN – Dec 10, 2006
By AP. MINNEAPOLIS (AP) â?? An company with plans to build a clean-burning coal power plant on the Iron Range could get tens of millions …

Congress passes tax benefit for coal gassification plant
LaCrosse Tribune, WI – Dec 10, 2006
By AP. MINNEAPOLIS (AP) â?? An company with plans to build a clean-burning coal power plant on the Iron Range could get tens of millions …

Senate Passes Tax Relief For Iron Range Plant
WCCO, MN – Dec 9, 2006
(AP) An company with plans to build a clean-burning coal power plant on the Iron Range could get tens of millions of dollars in tax credits from one of the …

Senate passes tax relief for Iron Range gassification plant
West Central Tribune, MN – Dec 9, 2006
AP – Saturday, December 09, 2006. An company with plans to build a high-tech power plant on the Iron Range could benefit from one …

Senate passes tax relief for Iron Range gassification plant
In-Forum (subscription), ND – Dec 9, 2006
AP – Saturday, December 09, 2006. An company with plans to build a high-tech power plant on the Iron Range could benefit from one …

Brainerd Dispatch too, the AP article, but the search didn’t pick it up.

Others? There must be but who knows…

Will somebody tell Bill Hanna that the sticker price of Excelsior’s Mesaba Project is NOT a mere $1.2 billion, but as of May, 2006, it was $2.155 billion, nearly twice as much as he’s stating? I’ve sent him the cover page of Excelsior’s DOE Financial Assistance Agreement, but does he want to be bothered with the facts?

I’ve tried, went right to the source. Here’s what I sent him about that error:

You’re wrong on price tag of Mesaba.

It’s $2.155 billion, nearly twice what you’re saying, and that should be corrected.

Here’s some primary documentation for you, attached. P 1 of the DOE Notice of Financial Assistance. This is as of May, 2006, and of course it’s more now.. how much more? Â

And his response? He doesn’t address that material error!

Carol:

I know you dislike Tom Micheletti and the can’t stand the project.
But then write a letter to editor or guest column.
You seem to want to persist in saying he’s a liar and a thief, in previous e-mail you talked about money going in his pocket.
I don’t subscribe to finding the worst in someone, in this case someone who is trying to do some good economic development for the region.
Please feel free to write away for out Opinion/Commentary pages.

Thanks for your e-mail,
Bill Hanna
Mesabi Daily News Executive Editor

Let’s see, I’m saying HE’S off, and he’s saying I’m calling Micheletti a liar and a thief! That’s “triangulation.” This is about Bill Hanna’s misrepresentation of the price tag of Mesaba! And are there investors in this other than Micheletti and Jorgensen? Well, none yet, except the public, given all that public money, but we don’t get ownership shares for that! So far, I’ve sent Hanna the DOE Financial Assistance Agreement showing $2.155 and in response to this I also sent him that Oct. 2005 DOE NOI, which shows a price tag of $1.97 billion. And that’s his response. Oh my Dog!
Here’s p. 1 the DOE Financial Assistance Agreement — the primary documentation of the $2.155 billion.

Here’s the DOE Notice of Intent with the $1.97 billion price tag.

And just now, Hanna tells me that the $1.2 billion is a figure Micheletti provided, that’s it’s not HIS error, and hey, that $1.2 billion cost figure was in the AP article over the weekend — well, let’s see, that makes being materially wrong OK? I don’t think so. And for the record, yesterday I did send Chris Williams of AP the above primary documents too!

So is Micheletti misrepresenting the price of Mesaba to Hanna or is Micheletti misrepresenting the price of Mesaba to the DOE for the Notice of Intent and the Financial Assistance Agreement? Either way…

============

The unanswered question that inquiring minds want to know is: IF EXCELSIOR RECEIVES THIS TAX CREDIT, IS IT RETURNED TO RATEPAYERS IN PPA OR DOES IT GO INTO THE POCKETS OF EXCELSIOR? Well, maybe the answer IS here. The article says, “And now the package is more attractive with the tax credits for investors.” Oh-oh… looks to me like it ain’t the ratepayers who would benefit from this!

FYI, I can’t tell where in the empire this is coming from, this was listed as “Breaking News” on the grandrapidsmn.com site, but it’s at duluthmn.com, so who knows… but here it is:

Energy project kept on track
Excelsior $1.2 billion initiative aided by Senate

BILL HANNA
Editor at MMI
Monday, December 11th, 2006 07:47:46 AM

So just what does the congressional language fix to last yearâ??s energy bill mean to the Excelsior Energy Inc. coal gasification project for the Iron Range?

It means the $1.2 billion new-era utility initiative remains on schedule for construction to begin in 2008.

â??With the provision approved by the U.S. Senate early Saturday morning it means there is $1.8 billion allocated to spur new technologies. We can now apply for tax credits, probably $100 million to $200 million, which will help us move ahead with investors … thatâ??s what federal tax credits are for. It means we stay right on track,â? Tom Micheletti, Excelsior Energyâ??s CEO and co-president, said in a telephone interview Saturday afternoon.

Micheletti said any delay in the congressional fix to ensure that the Excelsior Energy project is included for tax credits could have pushed the project back. But not now.

â??The permitting process (state and federal environmental reviews) is going well and the power purchase issue is proceeding well. And now the package is more attractive with the tax credits for investors. We expect construction to still begin in 2008 and for the first plant to be online in 2011,â? he said.

The first coal gasification unit is slated for Itasca County in the Bovey area. It would create 105-110 permanent jobs, with construction jobs peaking at 1,200 to 1,400. Two other units â?? one in the central Iron Range and the other on the east end â?? are also scheduled for construction. Each would provide another 85 to 90 permanent jobs and the same number of construction jobs, Micheletti said.

The coal gasification process qualifies for the federal tax credits because it uses a clean-burning technology for making electricity from coal.

Micheletti praised the work of Minnesota lawmakers in Congress, especially Republican Sen. Norm Coleman, for their efforts to get the language change included before the current Congress adjourns for the holiday season.

â??Norm jumped all over this and wouldnâ??t let go of it for months until it got fixed. Heâ??s hardest working senator in my lifetime to help the area. And the work of (8th District Democratic Rep.) Jim Oberstar and (Minnesota Republican Rep.) Jim Ramstad was unbelievable and so appreciated. Itâ??s fantastic to see when thereâ??s a good project that makes sense and then there are these people there to help,â? the Excelsior CEO said.

Micheletti said he is also encouraged by support for the project and other new energy technologies from some key Democrats who will be in positions of power in the new Congress following the Nov. 7 election, where Democrats regained control of both the House and Senate.

â??(Minnesota Sen.-elect) Amy (Klobuchar) has been supportive from Day 1 … sheâ??s endorsed the project. Thatâ??s critical because sheâ??ll be on the Senate Environment Committee. Sheâ??s strong on the global warming issue and realizes that new technology is key. And sheâ??s a quick study,â? said Micheletti, who said other senators, such as Barbara Boxer of California, also recognizes the importance of the coal gasification process.

Micheletti said he â??still likes the LTV site a lotâ? for a unit on the east side of the Iron Range.

â??I really like how the mayor (Marlene Pospeck) and the people of the area have supported us,â? he said. â??I would like to find a way to get started on that site.â?

Don’t forget that today is the Open House for Excelsior’s new office in Coleraine. It’s from 4-7 p.m. at the Peterson Funeral Home, be sure to stop in and ask when they’re holding the memorial service for Excelsior! With any luck, I should receive some photos from some little birdie or another…

What literally got me thinking about that was that I’d forgotten to feed the birdies and all my birdies were out over the poop deck bitching and kvetching, mad chickadees, junkos, nuthatches, blue jays and cardinals, not safe to let the grrrrrrls out, those little guys would divebomb like the eagles do at Colville Park! So, they’re taken care of, back to business…

Julie Risser, i.e., voterisser4senate.com, was netletted today in the STrib:

Better rethink coal-gasification plans

Regarding the Dec. 3 Business section article “Power-plant plan producing hot debate”: Tom Micheletti and Julie Jorgensen’s vision of six coal-gasification plants springing up over the next 30 years in northern Minnesota is outrageous; Minnesota lacks the geography needed for carbon sequestration and it does not produce coal.

Minnesota is already too dependent on coal to meet its electricity needs — more coal plants will not move us closer to energy independence. The cost of coal will continue to rise — approximately 50 percent of already comes from transporting it.

Finally, the potential pollution problems to Minnesota’s lakes, rivers and streams are enormous. Coal gasification is not a good fit for Minnesota. Team Excelsior should take its plans to Wyoming or Montana — go where the coal is.

JULIE RISSER, EDINA

But “to Wyoming or Montana?” They are clamoring for it, BUT water problems there have the same impact as water problems here, and then there’s… gasp… TRANSMISSION!!!

Coal gasification everywhere! Every where you go, oop, urp, there’s another one, it’s the canned blurbs on this Mesaba Project boondoggle. Can you stand it? And yes, there’s more! I heard it was on MPR too, but there’s nothing on the web, their site takes a while to catch up.

You know, I’m not really even a Beatles fan, but my tape loop is stuck on relics, right now “The Taxman” cometh, anyway, while you’re waiting for MPR, see how many material errors you can find in the article below:

Congress passes tax benefit for coal gassification plant
CHRIS WILLIAMS – Associated Press Writer

MINNEAPOLIS â?? An company with plans to build a clean-burning coal power plant on the Iron Range could get tens of millions of dollars in tax credits from one of the final bills approved by the Republican-controlled Congress.

Early Saturday morning, the U.S. Senate approved a catch-all bill that includes $38 billion worth of tax cuts over 5 years, including a special measure backed by Sen. Norm Coleman, R-Minn.

Coleman said in a news release that the provision will allow Minnesota’s Excelsior Energy Inc. to qualify for federal clean coal tax credits. Specifically, it changed technical language in last year’s energy bill that excluded the project.

“After nine months of hard work, we were able to find a solution that keeps in place the intention of the clean coal tax credits, but does not penalize Excelsior for doing exactly what we want them to do by creating cleaner energy,” he said.

The $1.2 billion Hoyt Lakes project by Excelsior, a partnership of former Northern States Power Co. executives, calls for using a clean-burning technology for making electricity from coal in a process called coal gasification.

If the project moves forward, it’s backers say it could create hundreds of local construction jobs and many permanent jobs when commercial operations begin.

Co-President and Chief Executive Officer Tom Micheletti said becoming eligible for the tax credits was “a very significant deal.”

“I was up so late last night waiting for calls and watching the computer,” he said Saturday. He finally got word that the Senate passed the bill at 5:30 a.m. Saturday.

Under the new law, Excelsior will apply to the federal government for the tax credits. He said the company would probably seek between $100 million and $200 million worth.

“We will have to be sure we are not greedy,” he said. “We will ask for what we need.”

He was confident the departments of finance and energy would look favorably on his company’s application in the competitive process. “We feel very, very good because we’ve got terrific technology,” he said.

He said he planned to break ground in early 2008. The project is currently undergoing environmental reviews by the state and federal government. The state Public Utilities Commission is also examining financial aspects of the deal.

â??â??â??

Chris Williams can be reached at cwilliams(at)ap.org

The Arrowhead-Weston transmission line, looking east as it winds toward the St. Louis River and Wisconsin…

High-voltage power line nears completion

(if you want to comment, click on the lnk above to get to the paper’s site and tell them what you think of the Arrowhead Project — that is, unless you’re one of my loyal readers from Minnesota Power!!!)

Duluth News Tribune – 12/08/2006

A controversial high-voltage transmission line is nearing completion, as energy has begun to flow on about two-thirds of the proposed 210-mile Arrowhead-Weston power line in Wsconsin.

A segment of line between the Weston Power Plant and the Stone Lake substation in Sawyer County was energized Nov. 30.

In Northwest Wisconsin, about 66 miles of the line remain to be constructed, including a segment that will run through Douglas County.

Pete Holtz, general manager of the Arrowhead Weston project, said it was necessary to power up the line to complete its construction. The line will run through Northwest Wisconsin along the path of an existing power corridor. To allow for the new lineâ??s construction, a smaller line will need to be taken out of service temporarily. Holtz said the newly energized line will be used to feed customers, minimizing electrical disruptions along the route as the project goes forward.

The line is scheduled for completion in May 2008.

When finished, the line will carry 600 to800 megawatts of energy â?? enough electricity to power 200,000 to 250,000 households.

At present, Holtz said the energized segment of line is operating at only a small fraction of its capacity.

Opponents of the line fear electromagnetic fields and stray voltage from the fully operational 345-kilovolt line could endanger the health of its neighbors.

Tom Kreager said the power line passes within 100 feet of his house in Mosinee, Wis., and said he shares those concerns.

The American Transmission Co., which is building the line, has assured residents it will pose no health danger.

As president of a group called Save Our Unique Lands, or SOUL, Kreager has been involved in unsuccessful efforts to block the construction of the Arrowhead-Weston line.

Now that the project is moving forward, Kreager called on the Wisconsin Public Service Commission to keep a close eye on its cost, warning that rate payers could be stuck with the bill for any overrun.

Holtz said the project is on schedule and on budget. The line is expected to cost $420 million.