State regulators are asking a biomass electricity company to explain why it’s not paying loggers for fuel, even though it received a state subsidy for that purpose.
Last year Maine lawmakers and Gov. Paul LePage authorized state utility regulators to award biomass electricity companies more than $13 million to boost payments for power generated in Maine. The goal was to assist Maine’s beleaguered forest products industry in the wake of multiple mill closures.
But loggers say one company that won a bid for the subsidy isn’t paying its debts.
Dana Doran, executive director of the Professional Logging Contractors of Maine, says Stored Solar, which operates plants in Enfield and Jonesboro, hasn’t paid many logging contractors in a month or more.
“Going as far back as second week in February. So the members just have not seen payments after that point in time for the majority of them. So it’s a very challenging situation,” he says.
Stored Solar has already received more than $400,000 in taxpayer subsidies this year, with the provision that it create 24 jobs and and buy a half million tons of biomass over the year.
The state Public Utilities Commission has sent the company a letter requesting an immediate update on the financial status of its operations in Maine and the status of its obligations to contractors, suppliers and employees.
“If these allegations are true, that is something of great concern to the commission and hence our request for an immediate response by Stored Solar,” says Harry Lanphear, commission spokesman.
It’s an unusual position for the regulators, whose job includes overseeing electricity consumers’ interests but not taxpayer subsidies. Under the recent bailout law, the biomass companies were required to post surety bonds. LePage recently asked the utility regulators to adjust the terms of that requirement — a request they are still reviewing.
A company official listed in state filings, William Harrington, did not return telephone messages seeking comment for this story.