Reason Finally Prevails As Senate Says “No” To Alpine

February 9, 2012

In the end it came down to the money.

While the conversation touched on a number of factors we’ve addressed in these pages, the downfall of the Alpine Energy (AEG) agreement in the Legislature on Wednesday came down to dollars and cents.

After months of hearings, discussion and debate, the lease for the Bovoni site upon which the St. Thomas solid waste conversion plant was to be built was not granted, stalling this project for the second time.

At the root of the discussion was not only the $20 million annual cost the Alpine contract required in its agreement with the Virgin Islands Waste Management Authority (WMA). It was all the other costs beyond that and the now apparently accepted fact that a primary requirement of the deal – that the Virgin Islands produce a minimum of 400 tons of trash a day to meet its obligations before even more costs were applied – simply couldn’t be guaranteed.

The other financial sticking point concerned a credit support bill that Alpine’s investors insisted upon before they would commit to funding the project. The only alternative in their eyes was if the Legislature had agreed with the Governor’s proposal that the WMA would be placed under the jurisdiction of the Executive Branch – which was rejected by the Legislature. And while the Governor had indicated he would send the support bill to the Legislature for approval, they have not received it.

Sen. Usie Richards was the most specific about the true costs – $30-40 million to close the Bovoni landfill; $30 million to close the Anguilla landfill on St. Croix   – added to the $20 million annual fee it’s a minimum of $90 million just to get started in year one.

And, as he pointed out, the provisions of the credit support bill are unknown, and Richards, along with several other senators, were not comfortable voting without more specifics on the total financial commitment.

The conversation included community concerns about environmental hazards; the amount of power that would be generated once the solid waste pellets were converted to fuel; ongoing costs to the community in the form of tipping fees and other costs that would be created by the plan; and the indirect cost to the government from tax and other exemptions for which Alpine would qualify.

The most visible support came from Sen. Carlton Dowe, who said he viewed the proposal as a solution to the Territory’s solid waste problem, with the power generation aspects just a bonus. He said he will be bringing legislation that will be targeted toward improving the efficiency of the operations of the Water and Power Authority because with or without Alpine, the solid waste problem remains.

So what started with a bang ended with a whimper. We still have a serious solid waste removal problem, but today’s actions give us time to explore more than one option as a solution, And since the Federal Aviation Administration has extended the deadline before taking further action against the Territory for the closing of the Anguilla landfill, more rational (and cost effective) solutions can be explored,

In the end it all came down to money – and perhaps just the tiniest bit of awareness that any major expenditures are under intense scrutiny right now.

But whatever the motivation, for now, Alpine is dead.

And  we thank the Gods for that.

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89 Responses to Reason Finally Prevails As Senate Says “No” To Alpine

  1. Anonymous on February 20, 2012 at 8:59 am

    That is not proof that Hugo and May didn’t get a piece of the pie. Sure they got their cut. John would have not allowed the whole charade if he thought he was dealing with honest people. Hugo and May are still in position because John knows their price and has paid it

  2. Anonymous on February 20, 2012 at 10:45 am

    Alpine has no evidence that May or Hugo done anything wrong. Alpine submitted fraudulent information to get the contracts and Hugo did not know. Alpine is back in Colorado where they belong. They are marked for life in the Virgin Islands as con men. Thanks May and Hugo for sending them packing because they tricked you from the beginning. You never know what kind of trash is going to wash up on the white sandy beaches of the Virgin Islands.

  3. Anonymous on February 20, 2012 at 10:56 am

    For May and Hugo to be so pro AEG, Hugo changing the RFP to meet AEG requirements, For both of them to even entertain AEG being here having DONE NO PROJECTS, they got bribe money.

  4. Anonymous on February 20, 2012 at 10:59 am

    Bottom line AEG is gone for good.

    Next on the scam agenda, is Globevest VI. On to the most recent topic on this site.

  5. Anonymous on February 20, 2012 at 11:59 am

    Andy Hixon and Don Hurd acted alone. They gave no proof or can’t produce any proffered that Hugo took any kick back. Don should be more concern about explaining to his investors how him and Andy lived like royalties on there money. Andy stop whining and go lick your wounds. Hugo and May are heroes for kicking you con men out of the VI. Now beat it!

  6. Anonymous on February 20, 2012 at 12:39 pm

    If Hugo and May don’t know when they are being scammed,(they are suppose to have some expertise in their fields) then they have no business heading up their agency.

  7. Anonymous on February 20, 2012 at 12:53 pm

    Look at how Andy Hixon came on to this site trying to scam us too. Andy can’t even get the EPA to accept anything he writes. Very incompetent fella.

  8. Anonymous on February 20, 2012 at 1:34 pm

    Hugo, May, senators, PSC, SEA, WAPA and WMA boards, governor ALL took bribes.

    None of the above have done anything without personal profit for the VI.

  9. Anonymous on February 20, 2012 at 4:12 pm

    Andy go sit in the corner at lick your wounds.

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