For Immediate Release
January 26, 2010
Alger Delta Threatens Granot Loma Over Utility Easements
In an effort to complete Kennecott’s unpermitted power line to Big Bay and the Yellow Dog Plains, Alger-Delta Electric Co-op has filed a lawsuit against Granot Loma Farms for 15 easements along their 4-mile portion of the project. Co-op manager Tom Harrell refers to the lawsuit as a ‘legal complaint’ and is pressuring Loma Farms owner Tom Baldwin to give up his property beyond the legal right of way.
According to Baldwin, “The co-op’s original permit application allows construction within legal utility right of way. However most of the line is outside of the right of way. They (Alger-Delta) threatened to discontinue power to Loma Farms, which was designated an historical landmark in 1991”. He has been negotiating with Alger-Delta on behalf of Kennecott and the utility is handling the lawsuit.
As compensation Alger-Delta offered Baldwin an undisclosed amount of money for the additional property needed. “It’s about a property owner signing a fine print ‘contract’ with a utility which allows them to do whatever, wherever they want,” said Baldwin. “Alger-Delta expects me to pay property taxes on my land that Kennecott is using for free to earn themselves 10 billion dollars”.
Alger-Delta has an alternate plan to re-engineer the utility lines for Granot Loma that could cost Kennecott an additional $75,000. In retaliation, power lines and equipment could be taken off of Loma properties and Baldwin would be forced to pay back to the co-op the costs for reconnecting to the grid in the future. “Basically they are trying to bully me into being a good co-op member” said Baldwin.
Kennecott has financed the entire $8.4 million dollar project, allowing Alger Delta to contract the work and broker the electricity. “Alger-Delta is like Enron – they’re just a broker. A good question to ask is why are we in Powell Township paying some of the highest electric rates in the state?”
One reason, Baldwin said, is that Alger- Delta purchases 100% of their power from companies that sell wholesale electricity and they recently signed a 30-year contract with Wisconsin’s WPPI. The co-op claims that Kennecott’s ‘upgrade’ combined with a reliable power source like WPPI will keep Powell’s electric rates low. Baldwin disagrees, “We all know that’s not going to happen”.
In October Baldwin recommended that Kennecott finance the building of a small community wind farm for Powell Township. “Citizens of the community will not benefit from a mine project on the Yellow Dog Plains, much less the potential ecological disaster that is connected to the Eagle Project. This would give Kennecott a way to somehow payback the community for all the aggravation and distress which goes with what they’re doing here. It would be an environmentally friendly way to provide energy to the township,” Baldwin said.
Baldwin believes that given the current green energy climate the incentives being offered by both the federal government and the USDA for alternative energy projects are excellent. Kennecott could recoup 30% of its multi-million dollar investment if they would connect to an alternative energy source. Matt Johnson, spokesman for Kennecott said, ‘We’ve talked a little bit about this. It’s something we’d be interested in looking into”.
Baldwin has looked into it and recently acquired a zoning permit with Powell Township to install a wind turbine on his own property. “The more wind energy we put into the system, the less carbon we produce, and that’s good for everybody”.
Legal issues with Alger Delta and Granot Loma will be reviewed at a mid-February court hearing. In the meantime the wind continues to blow in Powell Township as Kennecott pushes heavy power lines to Big Bay.