Last Friday, Yellowstone Valley Co-op filed suit against SME, the other co-ops and ECP. Below is the article at the Billings Gazette:
A family feud among Montana electrical cooperatives trying to build a power plant near Great Falls has escalated into a lawsuit.Yellowstone Valley Electric Cooperative of Huntley filed a lawsuit Friday against Southern Montana Electric Generation and Transmission Cooperative or SME, which is trying to build a coal-fired electric generating facility near Great Falls. The power would be shared among five Montana electric cooperatives and the city of Great Falls.YVEC General Manager Terry Holzer said his cooperative's members have spent between $7 million to $8 million on the Highwood project had tried unsuccessfully to leave the cooperative.
"We have not been successful at being able to negotiate a settlement," Holzer said. "In addition to the added liabilities and cost exposure Southern Montana and the other systems are taking on, we feel we have to seek this action to add stability and predictability to our future."
The lawsuit said the proposed cost of the Highwood plant has doubled, from $456 million to nearly $900 million.The lawsuit filed by Billings attorney John Crist asks that YVEC's membership in Southern Montana be terminated, that there be a financial accounting of Southern Montana's activities and damages of an
undetermined amount, including punitive damages.The lawsuit also asked that the cooperative return to Yellowstone Valley power it was receiving from the Western Area Power Administration.Contracts for relatively cheap hydro-electric power from the Pacific Northwest are ending and that spurred the Montana cooperatives to try to build their own power plant.In April, SME essentially kicked Yellowstone Valley out of the project. Although SME's chief executive Tim Gregori said Yellowstone Valley knew of the vote to end its membership. The contract between the two runs 22 years.Earlier this month, the U.S. Army Corps of Engineers suspended one of Highwood's building permits saying that further review was needed on the power plant's impact on Meriwether Lewis and William Clark's route in 1805, now declare a National Historic Landmark.
Construction on the 250-megawatt plant started in October in order to beat a November regulatory deadline set by the Montana Department of Environmental Quality. However, the project has run into financial and legal troubles.Two other lawsuits against the project are pending.Tim Gregori, general manager of Southern Montana Electric G&T and its sister company Southern Montana Generation and Transmission Cooperative, said he received the lawsuit about 11:30 a.m. and had no immediate comment.
"Our attorneys are taking a look at it. We see this perhaps as a continuation of what we tried to address in April. Right now we haven't even a chance to read it," Gregori said.
14 comments:
It's now time for the city to follow suit (pun intended) and also declare ECP bankrupt, be done with all this wasteful foolishness and get back to the business of running Great Falls.......
YES INDEED, WAKE UP CITY HALL!!!!!
Also follow the 'money trail' to First Interstate Bank and Stockman's and note their board members and 'connections' to the city and county.....and no wonder
we get no 'justice' at boards and hearings when the 'deck is stacked'...
Racketeers at work.
We do get to vote on a new county commissioner in 2010. I think this scandal, once fully exposed, will get us another new face in that position. The crows are coming home to roost.......
Anon, 7:42. What are the supposed Stockman Bank 'connections' to the city and county? That's a pretty big accusation to throw at a reputable business.
GeeGuy,
Mr Weber who is an officer in our local First Interstate Bank also sits on the county planning commission and voted to allow the rezoning for the HGS. This bank loaned the city the money for its original share in SME/HGS and now also recently extended SME 1.25 million line of credit for the HGS construction in July ( as indicated in the Lawsuit). Kind of smacks of a bit of conflict of interest in my book. Mr. Weber should have recused himself and perhaps we would not now have this gigantic mess. If he had done that the board would have been evenly split with no recommendation to the commissioners whom both said they relied heavily on the board's positive recommendation.
Anon 10:12, I am aware of the whole Weber/First Interstate allegation. I was specifically asking about the Stockman Bank allegation.
Well Geeguy at least I got that part of it off my chest. I do not know what the Stockman Bank connection is and hope that Anon 7:42 will respond on that matter.
With this new lawsuit and associated charges and discovery I am sure there will be more garbage exposed than we can all stand!
When I run for the City Commission I was asked my view on the Coal Plant. I made it clear I was NOT in favor of the City's involvmemt. I said I was looking forward to the proponents answering questions under oath. We might be getting closer.Jolley
"My purpose in writing to you is one of full disclosure in the public interest. As you konw, I currently serve as the local president of First Interstate Bank of Great Falls. I am also a member of the Cascade County Planning Board, which serves as an advisory board to the Cascade County Commissioners......First Interstate Bank of Great Falls has a depository relationship with Southern Montana Electric Cooperative. The bank has no financial interest in the final decision of the Coutny Commissioners since First Interstate Bank is not now providing any operating or construction funds to SME, nor, to my knowledge is and planned in the future. I do no consider SME's depository relationship with First Interstate Bank of Great Falls to represent a conflict for me...."
--Bill Weber on 12/4/07
Just before he voted in favor of the rezone. The vote, incidentally, was in favor 5-4.
Well, Anon, you have provided us with a great demonstration of how easy it is to throw out accusations on an anonymous comment, with little or no support. Then, when called on it, you simply vanish.
This is a good reminder of why we all need to take commenters with a grain of salt.
I wish Anon 7:42 would enlighten us. Perhaps just jumping to conclusions? I'm baffled about the connection to Stockman's. Nonetheless, he's on mark in regard to First Interstate and Mr. Weber.
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