Boise Guardian » Federal Government

Politico Takes Dynamis And Beer Seller Payments

dave — Sat, 05 May 2012 17:23:32 +0000

Looks like freshman Congressman Raul Labrador has taken money from Lloyd Mahaffey, the controversial CEO of Dynamis. Interesting to note back taxes in Boise County go unpaid while political payments are made.

Betsy Russell of the SPOKESMAN-Review lists Mahaffey as a contributor to Labrador–who happens to live in Eagle where Dynamis is based–to the the tune of $3,500.

Russell also noted the Mormon Congressman was paid $5,000 by the National Beer Wholesalers PAC.

Sparks Fly As Dynamis Deal Short Circuits

dave — Fri, 04 May 2012 23:48:36 +0000

Several interesting developments today in the saga of Dynamis Energy’s proposed waste-to-energy project at the Ada County landfill.

Commissioner Sharon Ullman has publicly claimed Ada County spent $2 million for design plans for the waste-to-energy facility and the money will be repaid once construction begins or is approved. Today after long consideration the GUARDIAN has determined there was no legitimate reason for the county to pay for design plans, drawings, or blueprints. The county has no business paying for plans to a facility it will never own, hold interest in, or otherwise operate.

The facility–if it is ever built–will be privately owned and operated by Dynamis on land it will lease for $1 a year from Ada County. The deal is akin to someone paying for architectural drawings for a home to be built, owned, and occupied by someone else! Any way you cut it, the best the county can claim is they made a loan and loans of public funds are illegal.

In another development, The STATESMAN linked two officers of the firm to the failed DBSI real estate development outfit that is subject of federal investigations and a bankruptcy. No sooner had the story been posted, it was removed from the DAILY PAPER website.

SATURDAY UPDATE–Statesman posted THE STORY.

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Assets vs Liabilities In Banking, A lesson

dave — Thu, 03 May 2012 09:00:54 +0000

Boise’s SYRINGA BANK is in trouble and faces a merger or takeover from state and federal regulators because it’s capital level is less than 10% of its assets.

Terms used to describe banks are somewhat reverse of what we normally think. When we DEPOSIT funds in a bank–savings, checking, or CDs–the institution shows that as a LIABILITY because it is ultimately owed back to the customer.

LOANS to customers who ultimately owe payments to the banks are shown on the books as ASSETS. It is confusing to most folks because it seems logical that money in hand (deposits) would be assets and money loaned out would be a liability. The problem with banks loaning more than is being repaid draws down their cash reserves known as CAPITAL.

When regulators talk about “seizing assets,” it is normally about taking over loan contracts and either the money being repaid or the collateral–usually a house–that is security for the loan.

Dorothy Goes Down Yellow Brick Road To Credit Union

Republicans Hijack Primary Election At High Cost

dave — Thu, 26 Apr 2012 14:00:09 +0000

When U.S. District Judge Lynn Winmill ruled that Republicans had a right to determine their candidates at at closed primary election, few people understood the ramifications of that decision.

The net result is massive confusion about who can vote for what or whom. Also we predict many voters will be so overwhelmed they will simply throw up their hands and go home–probably angry. Ada County chief election officer Chris Rich tells the GUARDIAN the process is expensive, noting he has hired 145 extra election workers–one for each precinct–just to explain the ballot. He also has produced several written documents which will be mailed to each voter.

It is such a mess that Republicans can vote in the Dems primary, but Dems aren’t allowed to vote in the Repub races. If you declare yourself as an “Independent” you get a ballot with only a couple of judge’s. Furthermore, your boss, your employees, and political adversaries can check the PUBLIC RECORD voter registration rolls to learn your party affiliation. This could be troubling to newsies–like the GUARDIAN–who profess to be free thinkers and not affiliated with any party: exercise your right to vote and get branded as a liberal or conservative.

The STATESMAN’s Cynthia Sewell did a nice piece today last week which offers some tips. She also explored the background with Rich in the SUNDAY paper.

The good news is it’s just a primary election and there will not be any confusion in November when there is no party declaration. Of course from a practical standpoint MOST of the Republicans who are elected at the upcoming May 15 primary will be sure fire winners in November.

ADA ELECTIONS website has all the info you need, including a way to find your polling place by entering your address.

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Thoughts From The Road

dave — Fri, 20 Apr 2012 04:53:47 +0000

The day job has the GUARDIAN on the road making photographs and observing the “American Condition.” We share some random observations.

–The new bridge across the Coloorado River below Hoover Dam is a great time saver if you are headed south of Las Vegas, but you can’t see it (or the dam) as you drive across. Thee is a parking lot and pedestrian access on the north end of the bridge.

–Arizona entrepreneurs have figured a way to sign up residents to buy solar panels for their rooftops. The the deals amount to obligations to purchase, but are to be repaid with the money earned by selling power back to the electric company that is forced to purchase the power. The real money is in the “Renewalable Energy Credits”–a mini version of the windmills lumped into thousands of invididual homeowners.

–Old semi-trailers are used along the freeways as billboards. Either to skirt a billboard law or just because they can be moved easily.
–Trucks outnumber cars by at least two to one on I-10 from Phoenix to El Paso, Texas.

–From El Paso to San Antonio you really have to WANT a speeding ticket…the speed limit is 80 mph. Some of the trucks actually go that fast, but the 585 miles stilll go slow, even at 80!

–Amazed at the number of people who choose not to watch news or read papers. A friend in boise gave up news for Lent and liked it so much he has adopted the practive permanently.

–Motorhome culture in Arizona provides lots of jobs. The big ones are everywhere–even with gas at $4 per gallon.

–Border Patrol seems to be everywhere. The inspection station at Sierra Blanca, Texas permanently blocks I-10 just like at a border crossing. Dogs sniff vehicles and the armed agents check everyone passing through…both reassuring and disconcerting.

U.S. Corp. Taxes High, But Few Actually Pay

dave — Tue, 03 Apr 2012 19:25:12 +0000

Senior Sen Mike Crapo put out a PRESS RELEASE today claiming the USA Corporate tax rate is the highest on earth and called the U.S. Government “antagonistic” toward job creators.

Crapo claims there is also growing evidence that high taxes stifle business growth and employee wages.

We see it a little differently. The following come to mind here in the Gem State:
–Micron hasn’t paid taxes in years because they are the largest “non-profit” in the state.
–The Boise Valley Railroad sought tax CREDITS for routine expenses to maintain their railroad track and Crapo supported the subsidy.
–Chinese owned Hoku solar panel plant in Pocatello gets urban renewal funds, energy credits, etc. and they don’t even pay their electric bill, let alone pay a single cent in taxes.
– French owned Areva continues to take taxpayer cash and has suspended its plans for a private facility at Idaho Falls–thanks to Rep. Mike Simpson.
–Dynamis avails itself of federal largess which will pay up to 30% of construction costs for a private for-profit electric plant at the Ada Landfill.
–Then you look at the largest private employer in the state–ST. LUKES–which pays no taxes at all, despite a $40,000,000 profit.
The list goes on. With Federal debt in the trillions and few companies, if any, actually paying the top rate, it makes no sense to push for tax breaks in our opinion. If a company is paying 39% income tax it is because they are making a bunch of profit and can afford to do so.

Of Ethics, Conflicts, Right and Wrong

dave — Mon, 26 Mar 2012 01:51:24 +0000

We are left shaking our head almost daily asking the rhetorical questions, “What were they thinking?” and “doesn’t anyone know the difference between right and wrong?” Mom and Dad would be aghast.

The recent mess incident at the City-owned Idaho Ice World was a disaster waiting to happen. It all started back in 2008 when Team Dave’s Ethics Commission was asked for an advisory opinion. The question was whether or not it would be a conflict of interest for the City Hockey Director ($44,000 salary in public money) to also serve as a coach for his son’s Peewee league team. The panel ruled it would be OK as long as he wasn’t paid to be a coach.

We don’t understand their logic, but it is obviously a conflict for a parent to be the coach and also the guy who is the top dog when it comes to EVERYTHING involving the hockey program. He didn’t make any money from his “off duty” volunteer job, but it’s still a conflict.

That same ethics panel told Boise’s treasurer it was OK to put the arm on banks and others with whom he routinely deposits public funds, to help finance a convention of city treasurers. They said as long as he was soliciting funds for the group and not in his position as city treasurer it was OK. Give me a break! Nothing illegal or dishonest, but still a stinky act of panhandling and an obvious conflict.

Same is true for the State Senator who holds gas and oil leases and votes on laws that will regulate (or not) oil exploration and production in Idaho and on his land. Legislators ruled it was no conflict because he didn’t receive a personal gain (money) from his votes. HOGWASH! It’s a conflict, plain and simple. May not be criminal, may not even be dishonest, but it IS a conflict.

We can go on about the Nampa mayor using tax money to buy lunch for city employees so they can hear his “state of the city” speech. Or the mayor of Caldwell getting a family membership at the YMCA on the backs of taxpayers. Conflicts and total disregard for ethical behavior and understanding right from wrong.

When these events and practices reach critical mass, there is always an ethics panel, attorney general opinion, or others who defend the conflict. We readily admit some things are certainly “gray,” but Mom and Dad always said if you have to think twice about whether or not you should do something, it is probably wrong. We would add if you have to spend a lot of time justifying the action, it probably wasn’t the right thing either.

We all make mistakes, but these days they all seem to be justified, rationalized, and defended. If the city or a politico screws up, best to admit it, take steps to prevent a recurrence and more on. Mom and Dad would be proud.

Idaho Power Tells Commission Its “Over Powered”

dave — Tue, 20 Mar 2012 15:14:33 +0000

Idaho Power is seeking a suspension of the law which requires the utility to purchase power from small “renewable energy” producers. A hearing is set for Wednesday at the Idaho Public Utilities Commission headquarters 9:30 a.m. at 472 W. Washington St. in Boise.

Oversupply of wind power has been a major bone of contention recently due to high water levels in the Columbia Basin and less consumption than previously predicted. Here is the official version from a PUC press release:

The Idaho Public Utilities Commission will hear oral arguments Wednesday on an Idaho Power Company motion to temporarily suspend the utility’s federal PURPA obligation to enter into sales agreements with qualifying small-power producers.

Idaho Power claims the suspension is needed while the commission processes a case (GNR-E-11-03) that addresses how energy from the small projects, called Qualifying Facilities (QFs), should be priced. That case is ongoing with technical hearings scheduled for Aug. 7-9. In the meantime, Idaho Power argues, it may be forced under PURPA to enter into contracts with small-power producers for energy it claims it does not need at prices it claims are too high, unduly inflating customer rates.

Several groups, including Exergy Development Group of Idaho, JR Simplot Company, the Idaho Conservation League and the Snake River Alliance filed comments opposing the suspension. PacifiCorp, doing business as Rocky Mountain Power, supports the motion and asks that the requested suspension also include proposed sales agreements in its eastern Idaho territory.

Oral arguments are scheduled to begin at 9:30 a.m., March 21, in the commission’s room at 472 W. Washington St. in Boise.

The federal Public Utility Regulatory Policies Act (PURPA) requires regulated utilities to buy energy from qualifying small-power generators, such as hydro and wind projects. The rate utilities must pay QFs is called an “avoided cost rate,” and is based on the costs the utility avoids by not having to generate or buy the power itself.

The commission must act quickly, Idaho Power claims, because 27 QFs representing 595 megawatts of capacity are “seriously exploring” sales agreements with Idaho Power. These projects would be in addition to the existing 119 PURPA projects, representing 989 MW of nameplate capacity, already in place. “Without adequate interim relief from its duty to purchase output from QFs at those inaccurate avoided cost rates, Idaho Power’s customers are likely to suffer substantial harm,” Idaho Power stated. The cost of the energy generated by the projects is included in customer rates.

Exergy, a Boise-based wind developer, said Idaho Power’s motion should be denied. Exergy urges the commission to maintain the schedule now in place to process the avoided-cost rate case. Exergy claims Idaho Power failed to cite a federal statute granting the Idaho commission authority to impose a moratorium on Idaho Power’s PURPA obligations under federal law. “That is because no such authority exists,” Exergy claims.

Exergy states that granting the suspension would “in all likelihood destroy the economic viability” of all the projects expected to seek agreements this year. “The listed projects would, if all were built, add about 500 megawatts of new capacity on Idaho Power’s system. Why this is a bad thing is never explained, except for identifying the expense to ratepayers over the lives of these projects and an assertion that if Idaho Power gets its way, the new avoided cost rates will reduce that amount,” Exergy stated.

In an order issued today, the Commission said it wants the parties to the address the following issues during Wednesday’s oral argument:

1) Whether Idaho Power has established a prima facie case for emergency relief from its obligation to purchase QF power;

2) Whether the existing schedule in the GNR-E-11-03 case should be modified to expedite the proceedings and outcome; and

3) What action, if any, should be taken on Idaho Power’s motion for a stay.

In late 2010, the commission lowered the size of wind and solar projects that can qualify for the commission’s published avoided cost rate from 10 megawatts to 100 kilowatts. Wind and solar projects larger than 100 kW can negotiate an avoided-cost rate with the utility based on a commission-approved methodology.

Customers can track the progress of the case on the commission Website at www.puc.idaho.gov. Click on the electric icon, then on “Open Electric Cases,” and scroll down to Case No. GNR-E-11-03.

Trash Talk–Power, Politics, Economics, Ownership

dave — Wed, 07 Mar 2012 19:01:25 +0000

A forum of experts in turning “Waste To Watts” was assembled Tuesday by the IDAHO BUSINESS REVIEW and it completed the circuit for many not plugged into the energy circuit.

Idaho Power rep M. Mark Stokes, along with attorney Peter Richardson who reps small electricity producers selling power–like wind generated and landfill projects, really cut to the heart of why there is so much interest, legislation and litigation over energy.

It all boils down to Renewal Energy Credits (RECs) created out of thin air. They can be bought and sold on the open market. These credits cannot be put in a box, they don’t come off anyone’s tax bill, but they play into every major decision to build so-called alternative energy projects. Without the credits most projects are doomed to failure because the value of the power is less than the cost to produce it.

In a nutshell here is how it works: Back in the 1970s the U.S. government wanted to stimulate “alternative energy sources” to cut down on foreign oil dependence. With visions of small farmers using windmills to power their milking machines, congress required the utility companies to purchase the excess electricity from these small producers to reduce consumption of fossil fuels and help offset the farmer’s cost of construction.

The high voltage utility companies are simultaneously required to have a certain percentage of their power generated by renewable energy sources. Alternatively, they can buy RECS on the open market. The idea sounds noble enough. Clean alternative power, burn less fossil fuel and it is financed in part by RECS. The low watt producers have a guaranteed market and use the money from RECS as part of their funding formula–or profit.

Fast forward to 2012 and those little farmer-owned windmills have blossomed into thousands of acres of 200 foot towers owned by the likes of Shell Oil, British Petroleum, and General Electric. In Idaho alone there is enough wind power to supply the minimum needs of Idaho Power.

But unlike politicians and salesmen, the wind doesn’t blow all the time. Under terms of the monopoly, the utilities must have enough DEPENDABLE power to meet peak demand–but still purchase whatever RENEWABLE power is produced.

Which brings us to this new generation of generators who are flocking to the nation’s landfills cutting deals to use the Municipal Solid Waste (MSL) as fuel for electrical generators. Again, sounds great. Trash volume at the dump is reduced, reliable electricity is generated, and we all have plenty of juice for lights and air conditioning.

In Ada County the Commishes were so eager to plug into the idea they ponied up $2 million to Dynamis Energy for an “oxygen-deprived gasification” device that appears to be a glorified incinerator. It is said to create heat to boil water to turn a turbine to make electricity. Currently the company has no pending DEQ permit application and it was denied funding by the Idaho Energy Resource Authority because that outfit doesn’t fund the mandated purchase deals known as PURPAs.

The latest Dynamis news is a plan to double the amount of trash to be burned each day. That signals to some the original plan didn’t “pencil out” so they just increased the “projected” amounts. It jumped from about 200 tons to 400 tons of trash to be burned.

Meanwhile we hear rumblings from the city and others with regard to who actually “owns” the trash which has now become a “fuel stream” with value to the likes of Dynamis. One argument holds that since the city contracts with a firm to pick up the trash, it is the city’s. The county claims it’s theirs once it hits the landfill.

In some cities the generators actually pay for the trash or share in the profits generated by the generators. Ada was happy to just reduce the trash to ash in the case of Dynamis. The county actually is paid for the methane production by sharing in electricity revenues.

Now for the politics. Remember those RECs? In most recent deals Idaho Power has shared the RECs with the producer. They now have a bill before the Idaho Legislature to get ALL the money–a plan the little guys say will put them out of business. Idaho Power charges customers all the costs associated with the purchase of the PURPA power and claims sale of the RECs helps offset costs, hence it provides a saving to customers.

So as we complete the circuit, it isn’t about the ELECTRICITY generation. It’s about the MONEY to be generated by political influence and government mandated regulations.

Navy Contract Reads Like Dream Ski Vacation

dave — Wed, 29 Feb 2012 15:43:16 +0000

If you are swishing the Warm Springs run at Sun Valley and find a guy following you with machine gun and a bumper sticking reading, “WE GOT OSAMA,” you just might be in the middle of a training exercise.

We feel a bit like the Wikkileaks guy in England, but since the information is already on the internet and appears to be a legitimate U.S. Gov posting, we have decided to share what is either a dream vacation, a recruiting film production, or an attempt to boost the economy of a lucky ski resort–like SUN VALLEY.

The Idaho ski resort is no stranger to the Navy, having provided hospital-type care facilities during WWII.

“Ski passes, helicopters, guides, snowmobiles, lodging above 5,000 feet elevation, and back country guides” are all included included in what appears to be a Navy Seal “education and training” bid specification.

Check out THE LINK.

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