Sunday, March 17, 2013

Mistakes were made…



Shedding some Light on prior mistakes

At the STM on March 6th, Paul Q spoke about mistakes; that every department from BOS to TMLWP had made mistakes. Very true statement.

The wind turbine project was years in the making. It took many years for this project to reach completion. From the perspective of hindsight, the following list is some of the mistakes made:

No Town Meeting Vote  - This project was not brought before town meeting for a vote. A side agreement was reached with the school department to locate the wind turbine on school property. A town meeting vote was not necessary for the project to continue.


Indications of AAER financial problems – There were indications that AAER was in financial difficulty. The original option of purchasing a GE turbine was abandoned when GE would not sell TMLWP a turbine because the location was too close to the school. The Commissioners were informed of a company AAER, that would sell us a turbine. There was a sense of urgency to sign the contract with AAER, because the financing for the project had a deadline and was at risk of being lost.

There is no warranty on the turbine. In the contract with AAER, there is a clause for a performance bond in case the turbine failed or had reduced output based on projections. The commissioners did due diligence by insisting on a performance bond and turbine certification. However, all the "insurance/assurance" or warranty evaporated when AAER went bankrupt. We were not able to secure a performance bond. We are on our own.

Further complicating the wind turbine issue is the role of Massachusetts Municipal Light Department Wind Energy Cooperative Corporation(MMLDWECC) in our turbine project.
Templeton Municipal Light distributes electricity to residents in Templeton. Templeton Municipal Light cannot generate electricity. The solution was to join MMLDWECC.





Mass General Law Chapter 157

Mass General law Chapter 164 section 47C

After the contract with AAER was signed, the TMLWP Commissioners did not oversee the project. All of the invoices and costs and borrowing associated with the turbine were channeled through the MMLDWECC and its Board of Directors as well as through MMWEC.

In my opinion, it is a mistake to have postponed the Wind Turbine Cost Certification for 2 ½ years. I have asked numerous times for this document. TMLWP Commissioners do not have the actual proof of the costs involved in the erection and commissioning of the wind turbine. Until those costs are determined, no one can calculate the payback period or depreciation of the wind turbine.

Can the wind turbine be repaired?

Absolutely! You can fix anything…but at what cost? It appears  our turbine is experiencing gearbox failure.


Our gearbox is identical to the one in Portsmouth RI. We have maintained our turbine according to specifications. Portsmouth RI did not. After reading the Gearbox Failure Investigation, I don’t believe the lack of maintenance was the cause of the gearbox failure.

From page 20 of the Gearbox failure Investigation:

YAW ERRORS
The 824 yaw fault should be corrected immediately in order to allow the turbine to align with the wind. High winds acting on the blades in a flapwise direction could result in blade structural damage. In discussions with Windland technicians, the fault frequency can be reduced significantly by increasing yaw pad pressure on the slewing ring until Yaw Power is 5-6 kW (or exceeds the alarm threshold in the controller software). One other operator, Templeton Municipal Light and Water, reports AMSC changed the parameter settings in the software.

CONCLUSION
The following conclusions should be taken into consideration during discussions involving continued operation of the turbine:
1.       The AAER 1500/77-65m turbine is an orphan turbine with very few operating in North America, limited engineering and spares support, and a history of gearbox failures (3 of 5 installed).
2.       The AAER 1500/77-65m design never received certification by any recognized certification organization, though similar designs licensed from AMSC/Windtec have been certified by GL and DNV.

Continues to page 21:
3.       The gearbox design may be defective, specifically having insufficient structural stiffness resulting in uneven 1st stage planet bearing load distribution and premature failure, or having defective bearings.
4.       A similar make and model turbines based upon the AMSC Windtec design, the Fuhrländer in Princeton, NJ, has had a similar gearbox failure, though the gear ratios are slightly different.
5.       Subsequent similar turbine models licensed by AMSC Windtec, the AMSC wt1650df and the
Hyundai HQ 1650 appear to have nearly identical nacelles, but may incorporate an improved gearbox. Retrofit options should be considered. Attempts to obtain confirmation of compatibility via AMSC Windtec or Hyundai to date have been difficult.
6.       Based upon a preliminary profit/loss estimate, it does not appear the turbine can be operated profitably, even if the gearbox is replaced and operates without failure for at least 10 years. A detailed 10-15 year pro forma with anticipated operating costs, debt servicing, revenues, energy credits, maintenance reserves, and insurance should be developed with assistance from a recognized authority such as DNV-Kema or GL Garrad Hassan.
7.       Due to limited service experience in the region, a collaborative users group should be developed. Potential collaborators are Windland (operates 3 AAER 1500 in California), Templeton Municipal, and Princeton.
8.       A procedure to prevent operation of the turbine with ice on the blades should be implemented, and a study of anticipated loss of energy production due to curtailment should be commissioned.
9.       The blades should be inspected by LM Glasfiber, and specifically checked for manufacturing defects by serial number.
10.   In the absence of a highly experience service provider, an Independent Engineer with intimate knowledge of wind project operations should be contracted to perform annual project monitoring.
11.   The GasTOPS wear particle monitor should be returned to service. This monitor will provide sufficient advance warning of a similar failure to plan for repair or replacement at lower cost and less downtime than the current event.
12.   A 24/7 vibration monitoring system should be installed. Bachmann Electronics is highly recommended for the turbine due to the Bachmann controller used in the turbine.
13.   Turbine SCADA gearbox bearing temperature should be more closely monitored for opportunities to obtain advance warning of bearing failure.
14.   The blade pitch system calibration should be verified by a qualified technician, and existing offsets should be recorded to determine whether the blade pitch is properly set. Incorrect calibration may have been a contributing factor to gearbox failure.
15.   Portsmouth should enroll in the free National Renewable Energy Collaborative (NREL) Reliability Collaborative to keep up to date on most pressing reliability issues, learn methods to improve reliability, and network with other owners.



Once the gearbox inspection by Jahnel Kestermann (JaKe) is completed, I hope the TMLWP Commissioners will make that report available to the public. In order to avoid past mistakes, it would be wise to obtain a Town meeting vote on how to proceed. Review Conclusion 6:

Based upon a preliminary profit/loss estimate, it does not appear the turbine can be operated profitably, even if the gearbox is replaced and operates without failure for at least 10 years. A detailed 10-15 year pro forma with anticipated operating costs, debt servicing, revenues, energy credits, maintenance reserves, and insurance should be developed with assistance from a recognized authority such as DNV-Kema or GL Garrad Hassan.

  
I have submitted a citizen petition to ask for a Forensic Audit of the wind turbine project:

To see if the town will vote to require the Templeton Municipal Light Department to conduct a forensic audit of all costs involved in the planning, construction and commissioning of the John LeClerc Wind Turbine to be paid for by the Templeton Municipal Light Department. The auditing firm to be selected by mutual agreement by both the Templeton Light Commissioners and the BOS and the report of the forensic audit to be presented to the Town at the next Annual Town Meeting.

I believe a forensic audit will clarify the role of MMLDDWECC in this project.

My opinions…supported by FACTS ! ! !

Julie Farrell

21 comments:

  1. 2 directors of the MMLDWECC are as follows!
    Gregg is also a commissioner TMLWP and Sean is general manager of sterling light dept
    Director Gregg Edwards MMLDWECC
    Director Sean Hamilton MMLDWECC
    Thanks julie for more info!
    Shareholder
    Dave Smart

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  2. I hope we will hear from Mr. Edwards and Mr. Hamilton several times on this issue as it is good to get a full story. Regardless of the technical and legal issues, if ice is being thrown onto the porch of a nearby neighbor would this not indicate a very real safety issue for all in the area of the wind turbine? Thank you Mr Smart for bringing this issue to light and taking the responsible step of running for L&W Commissioner.

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    1. Who would be liable if ice hit and injured a person standing in their yard? Would it be the town of Templeton or the L&W plant?

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    2. Or would it be the school's liability seeing the turbine is on school land?

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  3. Once there is knowledge of a hazard,saftey,health,danger,or other evidence of potential harm.The fact that our children play under it and people live next to it puzzles me as to why! There is a 2 million insurance liability policy. After the 2 million ?
    I would guess the school,TMLWP,MMWEC,MMLDWECC,our COOP ? I'll ask and demand a answer to that, From multipal sources.Any complaints are turn over to MMWWEC.
    Why did they put it where they did? Who thought about this and we need to keep them from thinking for us ever again.
    There will be a list of the people involved and should be a warning to voters to not elect people that think our vote means nothing. You did not get to vote on this windmill project! You should have been able to vote yes or no. It was Templeton's money.Many investigations and reports are comming to light. It will be a good thing to have a large amount of people go to the next light and water meeting next month and hear for youself where the money will be spent.Why spend and have no vote on how? Why trust what their doing now?
    Shareholder
    Dave Smart

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    1. Is two million dollars enough money to replace the life of one of our children? What is the responsible thing to do? I hope we will ask the tough question of our officials and take some personal responsibility ourselves. Thank you Mr. Smart for having the courage to ask these questions while the rest of us cowered to the L&W interests.

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  4. A heartless answer would be:As i've been told,What was the childs potential of earnings!
    That insurance talk and such a load of crap i almost threw up.
    It's up to the school to insure our kids safety and when they get paid off with 5,000. lease per year and lower electric rates. One would have to wonder what's more important safety or money? Go to the school board and demand their input on record about the project and what they were told by the projects leaders. Also join me at the next Light and Water meeting and let them know who is more important to you the kids or the light Dept/windmill!
    We should be haveing the L+W meet at the BOS so to be put on TV, open for all to see! You didn't get to vote on this windmill project either.I would think the folder was hard to put our hands on again?
    Shareholder
    Dave Smart

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  5. Ask these questions,Who set the amount,what if not only one injury,what if it fell over,who pays to clean it up,fix the track and other things that could result!
    I think asking the directors these questions would be a proper thing to do. Sean Hamilton and Gregg Edwards are 2 of the directors "MMLDWECC" and should have all the answers as they have had a hands on from the start, Did i mention Gerry Skelton too. Mr. 252 folder himself! Hmmmmmmmmmmmm
    Shareholder
    Dave Smart

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    1. All of these things are the reason behind the push back we got when we started asking questions at the Light Co. These are the reasons Julie is hated by the "good old boys!" She asked questions, and would not go away. The 150,000. was to shut us up about the PILOT. The PILOT still needs to be decided. The Light and Water Dept. needs to stop trying to duck this issue. Water Dept. has its own issues. It has 2 workers, 1 foreman, 1 supervisor, 1 general manager, 1 accountant, and 1 secretary on its books. Now you can wonder why your rate to be a customer went from 12.00 to 28.00. This may also be a reason the water department is broke. "The deeper we dig, the worse it looks. Bev.

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    2. how much was your water rate up on south rd were you live o yea you dont have town water that far i forgot.

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    3. Anon 5:18pm- It may be a foreign concept to you, but its ok to care about issues that don't always affect your own life. Bev speaks her mind on issues because she cares about the town and more importantly cares about the people. You can try all you want to discredit her. The people that know her know that she means well and just wants the best possible for everyone. Please use your energy to either correct any false info you see or to share your solutions to problems.

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  6. So BEV, If you go back 30 years, how many office workers were there just with the Light Dept? Now as far as the Water Dept. the 2 Workers, the foreman and the supervisor all do on there knees, in the trench and hands on work plus their paper work. These ar facts.

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    1. Yes, that is what is wrong with the picture!! The workers are busting their ba--s, and management is making the money!! I will stick up for you guys in the field any day, make it the sewer dept. highway dept. or water dept. It is the bloated management I have a problem with. I do not have town water, and never will. I am lucky to have a great well, with no iron!! I do not understand what I have heard about the Light lineman? Why arn't they paid as much as the line men in other companies?? That is where the money should go. I do not want the people to pay more than they should, for anything. I will always fight for what is right, and if you don't like it, tough ----. Bev.

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  7. I would bet the whole crew combined were making less than the super is now. we'll know that number soon.

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    1. One of the consequences of Chapter 93 Acts of 2000 (in addition to a large increase in salary for Gerald P. Skelton) was to split apart the workers. Highway and water and sewer employees were once together. The sewer treatment plant was operated by NEWS under American Tissue and Erseco when operated by Erving Paper Mills. Operation of the treatment plant by the sewer commissioners is a fairly recent phenomenon...1990's.

      The sewer lines, the water system and the highway were one department. Now we have a fragmented organizational and operational structure.

      Water department budget request (FY14) $1,407,378. Water department is an enterprise fund, but not carried on the town books. This budget figure includes long term debt service. The $28.00/quarter "service fee" ( $112.00/year) was raised in 2009 from $12.00/quarter in order to cover a water department shortfall and pay the interest on the $3.8 million dollar bond. This charge has been on our water bills ever since. The water commissioners did vote to conduct a water rate study (March 12), which may find that this charge can be incorporated into the rate structure or eliminated now that the billing is outsourced and the interest payments on that 3.8 million dollar bond are declining. No Water Enterprise Reserve Fund.

      The FY 14 sewer operational budget request is $860,677. I believe part of the long term sewer debt is paid by the sewer department (25%) the rest is paid out of our taxes(75%). Sewer department operates under Chapter 44 53 F1/2 Enterprise fund accounting. The sewer department has a large Enterprise Reserve fund.The sewer department is facing many costly projects including the lagoon decommissioning (DEP consent order).

      As a town, we can't begin to look at restructuring our organization and our debt until we can somehow align these departments.

      I supported Article 6 at the STM meeting on March 6th. Water infrastructure and sewer infrastructure are both under ground..under the ROADS (think highway). These departments use the same type of equipment and are more alike than a municipal light department which deals with poles and lines ...up in the AIR. Different equipment...different skill sets, different training.

      Misinformation (aka- lies) was spread that the intent of Article 6 was to sell off the Light company and fire all the workers. The intent of Article 6 was to abolish the Light and water commissioners and place control of Light and Water under the BOS. I supported Article 6 because I believe it was the only way to try to reorganize the operations of vital town services: water; sewer and light.

      I am convinced that the formation of a DPW will benefit the taxpayers in the Town of Templeton with better service at less cost. Can't begin the process of the formation of a DPW without a crucial element - the water department.

      I don't foresee a change in the transparency or cooperation at TMLWP; which is why I have submitted 3 citizen petitions for the ATM in May.

      One citizen petition is to require the Templeton municipal Light department to negotiate a formal PILOT payment agreement, a citizen petition to require a forensic audit of the turbine and a citizen petition to require the water department to produce a report on the water main breaks which occurred on July 14, 2012.

      I believe the Light commissioners have enough to do dealing with Light department issues.







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  8. Who would elect more of this? Why elect more of this?
    We will get the truth one way or another. It would mean more if it was from the source not the enforcement. They can blog too,Just sign and we believe you. Keep quiet and your fate is what we find.You can't defend silence, Just try! JD post the results of fridays test. We can do it like this or that again.

    Shareholder
    Dave Smart

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  9. Thank you Julie for this information. I was one of the people who was prompted to STM from friends at the L&W. I admit that ignorance is bliss and now feel a little embarrassed for staying in the dark. Please keep the "opinions supported by facts" coming our way, we are not getting it any where else.

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    1. One of the things anonymous 9:09 can do is tell the people you know the real story. A majority of people who attended the STM were not going to listen. Now that time has passed, maybe they will understand. We need to make changes, like Julie suggested, to get thee town to run more efficiently. Bev.

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  10. Yes Mr "Q" mistakes were made. Mistakes that will rear their ugly effects for years to come. What the town needs to do is learn from the mistakes that have been exposed and try to deal with them in the most responsible way. Look back on the past few years. You stood up and stated that the recall of two civic minded, responsible selectmen needed to happen. Really?? Do you still think that needed to happen? I believe to replay history by electing either you or Mr. Skelton to the select board would not only be a conflict of intrest but also a BIG mistake. Make yourself useful to the town in another capacity. Do not attempt to sit on the same board as your son-in-law.

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  11. As a Fern Street resident this whole thing is crazy to me. It looks like crap, doesn't work properly, my property value is in the toilet.....Take it down and sell it!

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  12. Glad to see the input from you on "fern street". A little note to all interested. In the event the turbine does not run for 1 year it must be removed. I think the injunction may be a way to acomplish that. It may take 6-7 months to replace a gearbox and with the many ways to slow the repairs,tick tock. Time for a sell out crowd at the next TMLWP meeting, if theres no room for all theres no meeting. bring your kids and neighbors. Ask about their safety,health. Did i hear cory check for all workers at schools? Did it get done? Ask you'll be surprised by the answer.
    Stand your ground Templeton,They lie to get what they want,or need to keep!
    Shareholder
    Dave Smart

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