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Hello,

Please see below. Come to the Planning meeting Monday night at City Hall if you have any questions about the Calpine Power Plant that is coming to Dover. The below are items that have been discovered with things for consideration. If you don't ask you won't know. Copy and paste into a word doc for a better read. Now is your chance to be heard. Now is your chance to have a voice. It will be too late to speak up after it's built. Are you for or against it? Does the stated benefit outweigh the risk or negatives?

This information is being presented to assist in your decision making process. This information is also being disseminated to different groups, so parts may not apply to your particular interest. This report contains things that may not be openly discussed during the process of trying to develop new sites. The information contained within this research is information that was easily obtainable from the internet or by request. Anything in italic and underlined and in bold, indicates things for your consideration. In addition, the one factor that has not been researched yet is the fact that Delaware does have a high cancer rate. Should that be ignored?

Calpine

About

• Founded in 1984. CEO is currently Jack Fusco.
• Files for bankruptcy in 2005. (Reuters)
  • Weighed down by $17 billion in debt and court battles.
    • Did you know that one of these court battles actually took place here in Delaware for roughly $300+ million?
  • Wilmington Trust is the trustee for the top six largest positions of unsecured claims worth more than $4.5 billion.
    • How many people just in Delaware alone were adversely affected by job loss, investment losses, and shareholder losses? How many people trusted that their investments would be safe because of Wilmington trusts tenure in this state and because of who founded the bank? How many of you the reader realize that Wilmington Trust loss millions that forced the sale because of major losses from commercial debt?  
  • The company asks that the court reject some of its contracts including power sales under which Calpine contractually was obligated and must sell electricity significantly below its cost or market prices.
    • The municipalities, states or whomever may have  signed contractual agreements with Calpine to provide electric at a particular price... What impact do you think this would have on citizens and their rates if they were permitted to break those agreements?
• Acquired Conectiv in Delaware in July 2010 for $1.63 billion.
• Calpine is now the largest generator in the state with 18 operating power plants and a possible vested interest in the Sun Park.
  • What will happen if Calpine and it’s subsidiaries own the majority of the power plants in this state?
• Calpine Risk
  • As of 2/12 Calpine is highly leveraged with more than  $10 billion in debt. If unable to pay they could face bankruptcy AGAIN.
  • Slow economy could drop demand therefore affecting profits.
  • Reuters states Calpine posted a fourth quarter loss, hurt by low commodity and reduced tax benefits. Adjusted net loss of $43 million.
    • Calpine filed bankruptcy in 2005. They emerged from bankruptcy in 2008 and only just recently completed some agreements from that bankruptcy, should investors, states, and municipalities be cautious to see how they will handle themselves now?
• Calpine 10-K annual report (2012)
  • In certain situations the following may allow counterparties to seek damages against Calpine if not completed. (partial list)
    • Abandonment of the development, construction, maintenance, or operation of a power plant.
    • Failure to achieve construction milestones.
    • Failure to achieve certain output.
    • Failure to make payments
    • Failure to obtain permits
    • Events of liquidation, dissolution, insolvency, or bankruptcy.
      • The above is a list of reasons that an entity may  sue them for. Is it curious that they feel the need to list these in their annual report or is there reasons to be concerned?
  • Revenue may be reduced significantly upon expiration or termination of our Power Purchase Agreements.
    • Would it be prudent for anyone considering any project with them to inquire and get information to see which Power Purchase Agreements are coming due and how much it will adversely affect them? Would this help in deciding their financial standing? If revenue is reduced significantly would they be back into another bankrupt situation?
  • A prolonged economic downturn could result in reduction in revenue.
  • Conectiv Acquisition (2010)
    • During the second half of 2010 we initiated a voluntary retirement program which reduced the number of employees covered by the pension obligation by 31 employees.
      • Is this to be understood that people loss their jobs when Calpine took over? Even if it states “voluntary” isn’t this something businesses do  lower the workforce?
  • Under environmental matters Calpine states “We are subject to complex and stringent environmental laws and regulations related to the operation of our power plants. On occasion we may incur environmental fees, penalties and fines associated with the normal operation of our power plants.”
    • Does it seem odd that Calpine would have in their official reports the above sentence? Can they truly believe that “normal operation” of a power plant comes with environmental fees, penalties, and fines? Can you the reader understand that in order for them to have fees, penalties, and fines it means they violated something that is important to public safety or their employees safety? So can……                                     “normal operation” + fees, penalties, and fines = safe?
  • Calpine is a Delaware corporation engaged in development, financing, acquisition, ownership, and operations of independent power production facilities.
    • As stated above, what will happen if there is a monopoly and one company owns to many?

Combined Cycle Power Plant proposed for Dover

• Is a combination of gas turbines and steam turbines.
• Calpine states will use 1.8 million gallons of potable water a day if ran fulltime.
  • This is a lot of water. In the event we have a drought like years in the past, will this have a negative impact on drinking water availability and farmers?
  • Calpine states the units will only emit 0.13 lbs of NOx, 0.0047 lbs of SO2, 8.69 CO2 and 0.00 Hg per megawatt hour.
    • Even if these numbers are lower than traditional methods of coal or other power plants, after prolonged exposure will this in fact add up to a lot and increase already high cancer rates?
    • Calpine states they are unsure of from where the 16 positions for the power plant will come from. It is yet to be determined.
      • Shouldn’t the staff come from this area? Shouldn’t Delaware be the one to benefit from more jobs? They are unsure?

• Calpine states the data sheet provided is meant to demonstrate that their emissions are less as compared to other provider’s fuel fired plants. Calpine states this is because gas has less emission than coal of oil.
  • Same as above. Even if these numbers are lower than traditional methods of coal or other power plants, after prolonged exposure will this in fact add up to a lot? Just because something is less harmful than something else doesn’t mean it still isn’t harmful.
  • Calpine states the primary fuel will be natural gas. The facility will also be permitted to use ultra-low sulfur diesel fuel for a limited number of hours.
    • Will the emissions and type of emissions change when they swith to diesel?
    • Calpine states the plans call for the use of an onsite storm water retention pond.
      • Will this be anywhere near the protected source of water(drinking) that exist on the Garrison tract? And even if its not if the retention pond goes beyond its boundaries and runoff goes into the soil what impact will this have on the protected source of water that is there?
      • Calpine states small amounts of chemicals are added as needed to control bio-fouling and to control the acidity of the water. It then goes out and is sent to the county.
        • Same as above. What happens when all the small quanities add up?
        • Calpine states during certain times a plume may be visible.
          • How will this affect property values and aircraft from DAFB?

Miscellaneous

• Liz Weston MSN Money (Weird stuff that hurts home value)
  • A University of California at Berkeley showed homes within two miles of a power plant had values that were 4% to 7% lower than comparable homes farther away.
  • Burbed (Neighbors that hurt your bottom line) states 4%-7% hit within two miles of a power plant.
  • Real Estate MSN (Seven neighborhood threats) states Bad neighbors can be a serious problem, according to the Appraisal Institute. An unkempt yard, proximity to a sex offender or having certain commercial facilities nearby, such as a power plant or funeral home, can reduce the value of surrounding homes by as much as 15%.
  • Realtor posted 2/12 states being located next to a power plant can drop value by around 10%
    • After reading the above, what will happen to property values with a power plant that close to residential areas? Can homeowners insurance be affected by a power plant in close proximity?
    • Utility Committee
      • On February 13, 2012 the Utility committee met and the city manager brought forth the Calpine proposal. (This was done to encourage the city of Dover to participate in the initial funding for infrastructure of $6 million out of $12 million.) The city manager stated that Calpine is proposing to construct a 309 megawatt facility. It was also stated that this project would lower wholesale energy cost for Delawareans. The city manager stated there has been no formal discussion with Eastern Shore Natural Gas or Chesapeake Utilities. The city could potentially own the lines. The city could potentially receive revenue. When the city manager was asked if there were any concerns from Wild Meadows he responded he was not aware of any. He also stated that a “field trip” was planned for the residents of Wild Meadow. The city manager stated that this project would decrease wholesale cost by $95 million.
        • Why do the public documents that are available from the city speak of a 309MW plant and Calpines 10-K annual report states it will be a 618 MW facility? If you read the utility and council minutes you never hear that it’s the larger size. Can it be expected that they will start with this and once constructed they will ask for a add on and at that point the public is stuck? Should conversations with the gas provider already have happened to see if it is feasible and what the cost will be? The city manager states he is not aware of any concerns from Wild Meadows. Are there any concerns from Wild meadows? It is stated that  cost would be reduced by $95 million. Is this primarily for the rest of Delaware? Will the citizens of Dover see anything more than the $1.25 or so a month decrease? Is this project worth a $1.25 or so less each month in our electric bill? Why is this project not benefiting the city of Dover more than the surrounding area?
        • Council meeting 2/12.
          • The above utility committee meeting is listed as a consent agenda item. Which read as follows: Items on the consent agenda are considered routine and non-controversial.
            • Why would this have been listed as a routine and non-controversial item? If it wasn’t asked to be remove from the consent agenda would the consent agenda just been approved and nobody would have been the wiser? 
• The city manager is asked where the other $6 million will come from if Dover puts up the first $6 million. He responds it is hoped that the remaining $6 million will be obtained from the State of Delaware.
  • Should the discussion already have happened with the state to see if they will be participating? Isn’t this placing the cart before the horse? Should the state offer assistance in light of the fact many here were affected by the Wilmington Trust issue?  Will the citizens of Dover be left to foot the bill of $12 million?
• Mr. Bonar explains how he feels that any delay on this project would send a negative message to Calpine and the state. He also states that not acting on the project could force the project to go elsewhere like other projects in the past.
  • Should the potential risk be ignored to appease Calpine or the state? Should the city have taken its time to understand all that is involved from all points so they could make a more educated decision? Should the PLUS waiver have been granted? Can a project like Calpine even be placed in the same sentence as say the loss of Wal-Mart to Cheswold? Do these two companies even compare?
  • City of Dover Planning Commission and the Site Development Master Plan for Garrison Energy.
    • To be constructed in two phases on 86.42 acres.
    • Is subject to the SWPOZ tier 2(Source Water Protection Overlay Zone). All development in this area must be evaluated. Must be determined if the proposed use is permitted by zoning. Also certain uses are prohibited. The Overlay Zone purpose is to protect public health and safety by minimizing contamination of the aquifer.
      • What is Source Water Protection as outlined in the Utility Committee?
        • A focus on quality and quantity.
        • Ground water is the sole source of Dover’s water.
        • We have an obligation to our rate payers and bond holders to protect our investment.
        • Dover must adopt ordinances which protect our regional supply position and this critical resource.
        • Create protective land use policies.
        • Preserve critical open space.
        • Some uses prohibited.
          • Gas stations
          • Chemical processing / storage facility
          • Junk yard
          • Underground storage tanks
          • All other facilities involving the collection, handling, manufacture, use, storage, transfer or disposal of any solid or liquid material or waste having a potentially harmful impact on groundwater.
          • Hazardous Material is ignitable, explosive, or highly toxic.
    • Tier 2 land protection (which is a part of the tract in question) is a primary wellhead protected area. The purpose of this area is to guard and protect potable water resources of Dover and Kent County. And to guard public health and safety through regulation of land use and development. The preferred land use is open space. Where possible land in Tier 2 should be acquired and preserved as open space. New development must demonstrate that they will not produce, store, transfer or otherwise handle hazardous material or substances.           
      • Can placing a power plant on this site be safe at all for our drinking water? The gas lines and the possibility of many gallons of ammonia, does this fall under ignitable and highly toxic? Does having runoff and a retention pond have effect on this valuable resource, our drinking water? Should there have been a letter confirming compliance by the city on 1/20/12 or should there been more review?  
• Non Residential development of 75,000 square feet must complete the PLUS Review process prior to application. PLUS involves reviews by all applicable state agencies at the start of any land development.
  • This was waived by the State Planning Coordination on 2/1/12. “The circumstances surrounding this project are unique, and warrant a waiver because this project has the potential to provide extraordinary benefits to the State of Delaware and the City by creating critical community infrastructure that will improve electric reliability.
    • If this was not so easily waived could all interested parties have gotten together and had all necessary answers before this started?
• The tallest element will be 190 feet
  • Approximately 19 stories.
    • Will this be a visible nuisance? Will the expected height and a plume as well, impact aircraft?
• Landscape Buffer and Opaque Barrier. By code may waive the requirements for the barrier and require only a durable and continuous evergreen screen. By code visual and sound screening is required.
  • The northwestern most corner is adjacent to Wild meadows. Zoning requires buffering when a non-residential use is next to residential use. Buffering is to be a fence, wall, or berm.
    • Why was Calpine granted a waiver to these requirements? Arent these rules in place to help residential homeowners? Is granting waivers such as this neglecting the rights of the people around the plant? Will just the existing trees be enough to protect the residential properties from the sight of and the noise of a power plant? The existing trees are they deciduous or will they lose their leaves and visibility will be there during the winter months?
• The power plant will be located at least ½ mile from Wild Meadows.
  • A ½ mile…..Would you want to reside within a ½ of a power plant?
• Lot 7 is only proposed as part of Garrison Oak Technical Park. It must be approved and recorded prior to approval.
  • If this is not part of the tract then can it even be considered or plans accepted? If this is opposed what affect will it have on Calpine?
  •  
  • Delaware and Calpine 3/10.
    • November 2010, the Governor welcomes Calpine.
      • Should political parties accept campaign contributions from large companies?
• Purchasers Conectiv and becomes the largest supplier in the state.
  • Will they monopolize the electric?
  • DEDO (Delaware Department Economic Development) is responsible for attracting new investors and businesses to the state of Delaware. States Calpine could have gone anywhere but they recognized the value here.
    • With the deal with Calpine purchasing Conectiv, it shows tax exempt bonds and under the heading bond issues it list the Delaware economic Development Authority for a total of approximately $88 million.
      • What kind of investment does the state already have in Calpine? Will the concerns of citizens be heard if the state has a considerable interest?