Legalectric

Yes, Tom Micheletti and Excelsior Energy’s Mesaba Project had another rough time at the Public Utilities Commission yesterday.  The PUC was deciding on Excelsior’s Motions for Reconsideration in “Phase II” of the proceedings:

Excelsior’s Motion to Suspend, for Reconsideration etc etc etc

Staff Briefing Papers – 5-28-09

It was fast, the tone seemed to say that the PUC had had enough of it, and wanted to be done.  Deny, deny, deny, the end.

So, now what?  I don’t know, because Charlotte Neigh, of Citizens Against the Mesaba Project, had inquired with Richard Hargis, of the DOE, as to the status of the EIS in the siting docket, scheduled to be released in June (yeah, right, as if…).  He said:

Ms. Neigh,

I don’t think this affects the issuance of the FEIS.

Richard Hargis

Huh… so now what?  Haven’t a clue.  My client, mncalgasplant.com, was an intervenor in this case, beginning nearly five years ago.  Will this thing end some time in my lifetime?  I’m starting to wonder…

WASHINGTON, D.C. — This morning, at “Coffee and Potica” or Minnesota Morning with Senator Amy Klobuchar, who should be there but Tom Micheletti! Yes, Excelsior Energy’s Tom Micheletti was there.  And he was there on the eve of the DEADLINE, the day before the PUC said it would pull the plug on Excelsior Energy’s Mesaba Project.

The legendary Alan Muller, Green Delaware, was in Amy’s office this morning too!  He got there, and “the only other person I knew in the room was Tom Micheletti.”   Too weird.   And here I had to stay home and dogsit.  DAMN!  I could have used the aerobic exercise of duking it out with Tom again.

Sen. Klobuchar’s energy staffer, Charlie Moore, said he wasn’t in on the conversation between Micheletti and Klobuchar’s chief of staff, Alan said they were huddled together for quite a while.  Moore also said that he didn’t know that there was a May 1 deadline.  Oh, really?  Not good.  It’s bad enough that we have to worry about what Micheletti might be saying, but now we’ve also got to be concerned about what he isn’t saying.

And sorry, no photo, yes, I’m MOST disappointed, oh well… but there’s a photo of Sen. Klobuchar with Alan in his Neighbors Against the Burner shirt.

Will it happen?  Will they pull the plug?  They sure better, they’ve been stalling long enough.

Here’s Excelsior Energy’s filings in their attempt to keep the PUC from FINALLY pulling the plug on the Mesaba Project:

Excelsior Energy’s Last Gasp – Motion April 27 2009

So let’s just let this thing die.  Xcel doesn’t want it, the Minnesota municipal utilities don’t want it, the PUC doesn’t want it, and mncoalgasplant.com sure doesn’t want it and neither does Citizens Against the Mesaba Project.

THE MESABA PROJECT IS DEAD, DEAD, DEAD!  Coal gasification is not happening.  IGCC ist zu ende!  How many silver stakes through its slimy heart will it take?

Once more with feeling:

IGCC is TOO EXPENSIVE!

IGCC doesn’t provide any significant environmental benefit!

IGCC is not in the public interest!

This is from Charlotte Neigh, Co-Chair of Citizens Against the Mesaba Project, who, having reviewed the recent spin-doctoring of Excelsior Energy, and their tentacle-reach toward Minnesota Municipal Utilities — they’re trying to make it look like they’ve got something they haven’t got:

It is not correct to say that the federal government would back 73 percent of the total cost, or that the federal government has “pledged” $800 million in loan guarantees, or that municipal utilities would have to raise only 27 percent of the project costs to secure ownership of Unit 1 of the Mesaba Project.

Excelsior Energy has not yet been awarded any loan guarantees. It is one of eleven final applicants to share in a pool of $4 billion. Excelsior admits that its negotiations with DOE will continue throughout 2009. DOE stated in October 2007 that projects relying upon a smaller guarantee percentage will be given greater weight. Despite this statement, Excelsior repeatedly misled the media and even the PUC about the status of the loan guarantees, suggesting that they would cover 80 percent of the project costs.

Apparently Excelsior is now seeking 73 percent but this is a long way from becoming reality. A key requirement for qualifying is to have an assurance of revenues to be generated from sale of the product. This means a long-term commitment from a customer to purchase the energy. This is why the failure to achieve a PPA with Xcel Energy is critical. Other obstacles are DOE requirements for: credit assessment without a loan guarantee; approval of environmental and other permits; reduced greenhouse gases; and relative amount of cash contributed by the principals.

Now Excelsior is trying to entice municipal utilities into purchasing ownership interests by suggesting that 100 percent ownership can be obtained by raising 27 percent of the costs. Municipal utilities should carefully assess the likelihood that this amount or any loan guarantees at all will be awarded for the Mesaba Project before issuing bonds to finance such a purchase.

More information and analysis about the federal loan guarantees can be found by scrolling down to the October 8, 2007 entry on the CAMP website: www.camp-site.info/

Charlotte Neigh, Co-Chair
Citizens Against the Mesaba Project

Here’s an example of the bogus spin, from Business North — note she can’t even get the announcement time-frame right… Excelsior announced Mesaba in December, 2001, that’s EIGHT years ago:

No customer for controversial energy project

Excelsior Energy targets municipal PUCs in search for a buyer as key May 1 deadline looms.

4/1/2009
by Beth Bily

About six years ago in the wake of the permanent closing of LTV Steel Mining in Hoyt Lakes, momentum began to develop behind a project concept, one since celebrated and renounced.

That proposed Mesaba Energy project with a price estimated at $2 billion has moved through various phases of public review to a potentially new location further west. Along the way it has become one of the most vigorously debated economic development initiatives proposed for Minnesota’s Iron Range.

Meanwhile, an important deadline looms that could make or break the project. The Minnesota Public Utilities Commission had ordered talks between Mesaba’s parent, Excelsior Energy, and power giant, Twin Cities-based Xcel Energy. The two sides were directed to negotiate a Power Purchase Agreement (PPA) for the approximate 600 megawatts of electricity Mesaba’s proposed Unit One would produce. That ordered negotiation period ends on May 1 and there is no evidence an agreement will be reached.

Read the rest of this entry »

Excelsior Energy’s Mesaba Project has been delayed… AGAIN… until June… and when we get closer to June, well, we know what will happen… delay again!

DOE chart showing Mesaba FEIS delay March 13 2009

Thanks to Charlotte Neigh and CAMP for keeping on this!

So what the hell is a “procedural reconsideration?” Today the PUC had the never-ending (until May 1, 2009) saga of Excelsior Energy’s Mesaba Project. The issue? Yet another Motion to Reconsider from Excelsior Energy, they don’t want to take NO for an answer.

November 25, 2008 Staff Briefing Papers

The PUC staff recommended reaching the hand toward the life-support plug, but not yanking it with a final decision:

Staff acknowledges the comments of Minnesota Power requesting the clarification of whether the Commission’s approval or denial of Excelsior’s petition for reconsideration at this time constitutes a final decision for purposes of appellate review. In the alternative, the Commission will not enter a final decision until May 1, 2009, the deadline for negotiations. As such, Staff believes that the most judicially efficient course would be for the Commission to grant the petition for reconsideration for procedural reasons and hold further consideration in abeyance until after May 1, 2009.

Briefing papers, p. 13. And so they voted unanimously for alternative 1:

Grant the petition for reconsideration and rehearing for procedural reasons and hold further consideration in abeyance until after May 1, 2009.

For the whole Excelsior Energy saga, GO HERE and search for Docket 05-1993. And if that’s not enough, search also for 06-668!

So we’re still holding… zzzzzzzzzzzzzzzz