This clearly demonstrates the flaws in Longview's "Desigh/Build" approach, and shows why the PSC should have required complete engineering plans up front, before the start of construction.
Jim Kotcon
"Paula Hunt" pjhunt@xemaps.com 8/4/2008 9:11 AM >>>
================================================================ Updates on Longview's Continuing Troubles -- paula ================================================================
Longview Power plans to obtain its water from the Mon River, not from treated mine water. Longview obtained approval to do this from Pennsylvania, where the intake will be located. It turns out that treating all that water by the very expensive process of reverse osmosis is cost prohibitive. * As if they didn’t know that from the very beginning ….. *
Construction on the Longview Power Plant, located in the Community of Fort Martin near Maidsville, WV (just north of Morgantown), has begun but is going very slowly. Rumor has it that they are fighting subsidence problems on site and are having trouble finding workers. * Where are all those unemployed union workers that packed the public meeting, I wonder… ? *
Bids are being accepted until the end of August 2008 to buy part or all of Longview Power, LLC. Merrill Lynch is conducting the auction and PPL Corp (PPL EnergyPlus), FirstEnergy, PSEG, International Power America, and Energy Investors Funds are thought to be bidders. PPL EnergyPlus has already committed to taking 300 megawatts (MW) of the 695 MW. Goldman Sachs and WestLB have funded part of the construction, putting $1.15 billion into the project last year. Apparently that wasn’t enough, and another $950 million was supposed to come from other sources. The original $900 Million power plant has turned into a $2 Billion power plant (and counting). It appears that this new $950 Million funding is no longer available. Presumably this is why the auction is needed. GenPower supposedly wants $3,500 per kW or more, which is higher than the $3,000-3,250 per kW, which is usual for electricity from a new plant.
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James Kotcon