Turbine company blows off Kittery; $191K refund unpaid after bankruptcy
KITTERY, Maine — The town could well be out nearly $200,000 for a wind turbine that never performed up to expectations, now that the Canadian company that manufactured it has declared bankruptcy.
The town was to be repaid $191,028 by Entegrity Wind Systems Inc., beginning in June, when the town announced the turbine at the Kittery transfer station was producing only 15 percent of the electricity expected.
Under the terms of the agreement with Entegrity, the company would make monthly payments starting in July with a balloon payment this month for the remainder of the cost of the turbine.
To date, Kittery hasn’t received any money.
“It’s unfortunate,” said Town Manager Jon Carter. “The energy committee did everything in the right vein, the town did everything in the right vein. Unfortunately, wind levels as far inland as Kittery are not the most efficient for wind turbines.”
The 50-kilowatt turbine installed in October 2008 failed significantly, producing less than 11,000 kilowatt hours of electricity. Entegrity had estimated it would generate 70,000 kilowatt hours.
Entegrity Chief Executive Officer James Heath was unavailable for comment Wednesday. However, according to published reports in Prince Edward Island, Canada, and Boulder, Colo. — where Entegrity had a sales office — the company went into bankruptcy in October.
At the time, it owed $3 million to Toronto-based Mercantile Finance Services and more than $6 million to other creditors, the Boulder Daily Camera reported.
Carter said he has been in contact with Heath right up to the present and said the reason for the bankruptcy was “the recession and business practices.” He referred further questions to Heath.
Carter said “we had been monitoring the bankruptcy proceedings, but there wasn’t too much we could do about it.”
He said Heath is trying to form a new company, and “he’s still hoping to honor his agreement with us.”
The turbine is still in place at the transfer station. According to Carter, Entegrity contracted with a computer company that monitored several hundred turbines, including the one in Kittery. The town also had a card that it could use to regulate the turbine. When the center shut down because of nonpayment from Entegrity, the turbine blade locked and the card was rendered inoperable, he said.
Carter said he is in talks with Cianbro Corporation, which has a wind division. He has also talked with the computer company and determined the town might be able to regain control of the turbine for $1,200 a year. One path he is pursuing is having Cianbro take over maintenance and keep the turbine running.
Asked why the town would want to run a poorly performing turbine, he said, “if the asset is standing still, is that best for it or is it the best idea to get it going again?”
Another possibility might be selling the turbine, which the Town Council has the authority to do.
“There’s no rush here,” he said. “It is discouraging, but we’re going to keep an eye on what’s happening and keep our options open.”
By Deborah Mcdermott
17 December 2009
Tags: Wind power, Wind energy
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