Meeting Notes for Friday, December 19, 2008. 

Present:  Roger Moody, Dave Jackson, Ray Andresen, John Enright, Philip Conkling, Bob Shotwell, Skye Hirst,  Don Abbott, Richard Remsen, Joan Phaup

Meeting Notes for December 5 were  approved (weren’t addressed, and will be placed on the Januarty 2 agenda.)

Discussion with Community Wind Energy Expert Dr. George Baker, led by the CAFG Green Energy Task Team (John, Philip, Dave, and Richard): “Fox Islands Wind Power: a Model for Coastal Maine?”

1. Situation on Fox Islands: consumer-owned co-op has 2,000 customers, high electricity costs
2. Wind resource: Study by UMass Renewable energy Research Lb-average wind speed at 40m = 5.3 m/s, but they can get 6.5 m/s at 80m tower height; seasonal mismatch between high winds in winter and high population in summer, driving needs for more energy.
3. Economics: Generate enough power to cover annual load, using three GE 1.5MW turbines for 11,8000 mwh per year. Excess power goes back to the cable connecting islands with the mainland. Of the total power  generated, more than half is used on the island: selling over 5,000 mwh per year and buying 4,000 per year. Project qualifies for Renewable Energy Credits (RECs). Cash flow would be about $1.1 million.
4. Financing:  Capital costs would be $14 million. Project generates federal tax credits, which have to value to a non-profit: Production Tax Credits/accelerated depreciation. Flip model allows us to give tax benefits to another company, who in turn gives the co-op $5 million. Fox Islands Wind LLC is owned by the co-op and the passive tax investor. The remaining $9 million will come through RUS loans, pre-sale of REC’s, grants, etc. Cash flow: $751,000; Annual principal and interest: $503,000.
5. Project Impact: Cash flow available (after debt service): $247,000; potential rate reduction 2.5 cents/kwh in first 10 years. Another 3-4c after that; represents a reduction of 10% to 20%. Locking in a price of 6.1 cents/kwh for the next 20 years. Price stability! Make Fox islands economically self-sufficient in electric power. Largest wind project on the New England Coast. Second largest on the East Coast. High profile renewable energy.
6. Rick Assessment: virtually no power price risk: buying and selling in about equal amounts; insulates the Coop from electricity price fluctuations. Pre-selling the RECs reduces risk; wind resource uncertainty. Demo project for other communities.
7. Current Status: wind assessment complete; also engineering study and avian impact study. Tremendous community support; co-op members all invited to vote; town meeting approved ordinance revision 60 to 1. Quote from GE for August delivery of turbines; permitting.
8. Prospects for Ragged Mountain (A very basic analysis): Annual electric load 30,000 mwh/yr for Camden-Rockport; smaller summer peak than on the islands; average wind speed: 8 meters per second (higher than islands!). Assuming three 2.5 MW turbines, total cost of purchase, construction, pre-development and contingency would be $20 million (very approximate!). Challenging construction site. Financing via tax equity investor, REC pre-sale and 20-year loan. Principal and interest payments would be $865,000/year; operating expenses $300,000/yr; cost per hwy would be 3.5 to 5 cents. Assuming the wind resource proves to be as powerful as it seems, this is definitely a possibility worth exploring. How to do it: bring in a wind power developer to build the project, own the turbines, and sell the output on the grid to generate lease revenue and /or property tax relief for the communities (as in Marrs Hill) or develop the project through a municipal entity and sell the power on the grid with economic benefit to the towns. Two other possibilities: 1) Set up a community-based “Competitive Energy Supply” company, and sell power to the members of the community at a rate lower than the “Standard Offer.” 2) Contract with an existing CES (e.g. Constellation Energy) to sell your excess output, buy what you need, and give the community the opportunity to buy power at less than the standard offer price.
9. Next Steps for Camden: Continue to collect wind data; being thinking about how you want to structure the project (community or outside ownership? Tax revenues or lower electricity costs?); Bring in a consultant to help the community develop a project plan and a public outreach strategy. It’s important not to talk about such a project too much without having obtained a great deal of information about it. Do the feasibility study first, then talk about it. (The Camden Energy Committee is looking at this and is in touch with the Town of Rockport about it too.)

Information Updates:

• C-R-L Chamber of Commerce News – skipped New Executive Director to be invited to attend our next meeting.
• Downtown Business Group News -
• Suggested Appointees to the New Camden Community and Economic Development Advisory Committee (CCEDAC) – No one has been appointed yet. They are still looking for strong candidates .  (Has anyone approached members of the Tannery Committee?) Camden business owners, even if they are not Camden residents, are eligible to serve on this committee.

CAFG Task Teams Reports:

1. Camden Downtown Cinema  - Bob, Dave, Don, Carla, and Ray.  We are nearly ready to create a for-profit corporation and name its president. This project will take $1.5 million to get started and will need to be presented to the public in a positive way.  Ray Andresend moved and Skye Hirtst seconded that CAFGE  we appropriate $300 money for a Camden cinema public forum and presentation at the Camden Congregational Church. The motion carried, with 2 opposed and one abstention.
2. Internet Capacity Analysis – Joan Phaup reported on conversations with Scott Carlson, Kip Wright, and Derek Anderson and Steve Hand about local internet capacity. For domestic consumers in Camden it was generally agreed that capacity and options are sufficient, but users in more remote areas have few options. More powerful systems such as T1 lines are available for business, but pricing is more expensive than in the Portland area. Cell phone reception has been a problem for customers of some carriers, but this is being remedied. It was agreed to invite representatives of Fairpoint Communications (soon to complete a transition to new operating systems) and Verizon to meet with CAFG. This could help CAFG understand how the Midcoast compares with the Portland area regarding access to and pricing of such services as cable, DSL, T1, etc .
3. Statistical Reports Concerning Jobs, Unemployment Rate, Employment Trends, Retail Sales, and Other Measures of Economic Activity to Allow Thoughtful Analysis by CAFG and the Community.  Create and Issuing an Annual Camden Area “State of the Economy” Report – John, Don and Eric Galant    This Task Team has not yet met, but John summarized recent retail sales reports for Knox County, which showed a decline of about 8% from sales figures a year ago.
4. Commercial Space Inventory for Businesses Seeking to Locate in the Camden Area – Roger, Skye and Ray  The Task Team has scheduled a meeting with the Town Code Officer and the Asessor to understand what data is contained in the Town assessing records which could be brought into the commercial building and industrial property data base CAFG plans to develop.
5. CAFG Forums to Focus Community Thinking on Economic Issues, Including Helping to Convene a Meeting of the Camden and Rockport Select Boards Concerning Economic Development - open

Our Next Regular Meeting Will Be Held on Friday, January 2 from 8-10 a.m. in the Washington Street Conference Room