Legalectric

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…

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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?