Glenville, N.Y., Landowner Hopes to Pull Plug on Power Plant

Times Union, Albany, N.Y. --May 20

May 20--In a white cement building on Freemans Bridge Road in Glenville, near a hairdresser, an insurance agency and a company that installs wheelchair lifts in cars, lies an empty office.

The white sign above the door has been reversed, but the shadow of the company's name can be deciphered backward: Glenville Energy Park LLC.

Five years ago, the company proposed to build a power plant at the Scotia-Glenville Industrial Park. Now, GEP has defaulted on $109,000 it owes to the town of Glenville, and a landowner has filed a motion asking the state Board on Electric Generation Siting and the Environment to finally pull the plug on the troubled project.

"Their phones have been disconnected. Their office has been closed. They obviously don't have the money to build this," said Daniel Hill, who filed the motion last week. "I'm hoping the judge sees enough sense in it that he says, 'You're right.'"

The $350 million plant was to produce 520 megawatts of electricity, or enough to power more than 500,000 homes. It would have been constructed on a 22-acre site just west of Scotia, a half mile from the Mohawk River.

But municipalities resisted the plan. In the summer of 2002, the village of Scotia said it would not let GEP tie into its sewer lines. By autumn, Duke Energy North America had withdrawn its financial backing. And by the end of 2002, the city of Schenectady had decided not to sell the company the water it needed for the project.

In August, the company said it had a new "credible" source of financing. But monthly updates filed with the two judges overseeing the application process have not indicated any progress.

One of the judges, Daniel O'Connell, with the state Department of Environmental Conservation, said GEP would have until May 25 to respond to Hill's motion. After that, he and Michael Harrison, an administrative law judge with the state Department of Public Service, will issue a ruling.

"A hearing is a possibility," O'Connell said. He has not received anything from the company yet, he said Wednesday.

The project's principal, Thomas Macaulay, a former Vermont state senator, did not respond to interview requests made through his attorney.

GEP filed its application for the power plant under a law known as Article 10, which was meant to fast-track power plant approvals so the state could meet future power demands. The law expired in 2002, but GEP's application still is pending. It must be revised because of the changes and limitations placed on GEP's original plan.

Opponents tried to get the judges to dismiss the application last year when the company missed a deadline for filing materials. The judges declined, but said that even if GEP failed to provide the materials by April 2004, as it projected, they planned to move ahead with an issues conference in the summer.

"The applicant hasn't done what they said they would," Hill said. "It should be dismissed and the proceeding terminated."

Meanwhile, GEP had agreed to reimburse the town of Glenville for $109,000 spent on studies related to the plant. In October, the company signed a letter acknowledging its debt, said town Supervisor Clarence Mosher.

"Well, one month went by, two months went by and they still didn't pay," he said. "So we called them on it. We had a lawyer check on their assets and they didn't have any assets."

The town worked out an agreement with Spectra Engineering P.C. to pay $90,000 of the money owed out of the town surplus.

"If we find that GEP has any assets, then we will try to recover our (money)," Mosher said.

Hill, 43, lives in Schenectady and owns property less than a half mile from the proposed plant site. He is the 12th generation in his family to own the land, and has been hoping to build a home to replace a farmhouse that burned down in the 1960s. The plant has held him up.

He filed the motion as an individual, though he is a member of Citizens Advocating Responsible Development, a grass-roots organization that opposes the plant.

"We love the motion," said Neil Turner, president of CARD. "This whole thing is a bureaucratic nightmare to us. We'd like to drive a stake through the heart of this thing. We can't get the state somehow to put an end to it."

 

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