MABS: Wind farm owner owes nearly $50,000
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL - The Locust Ridge II Wind Farm near Raven Run.
RAVEN RUN – The Oregon-based company operating windmills on Municipal Authority of the Borough of Shenandoah owes roughly $50,000 to said authority, directors discussed at Thursday evening’s meeting.
Avangrid Renewables, of Portland, Oregon, operates 16 windmills on MABS property atop Locust Mountain in West Mahanoy and Union Townships, and has had a lease for them since 2008.
According to Jennifer Hepler, office manager, the lease agreement involves the payment of the lease itself and the reimbursement of property taxes. Hepler said that, though MABS is a tax-exempt organization, the windmills are not, so property taxes must be paid for the windmills.
“Since March, I’ve been emailing them repeatedly,” Hepler told the board. “Every year, they were fine. This year, they’re not sending me the checks.”
“They owe us a little over $50,000 that I’ve paid out of the general fund, waiting to be reimbursed, and I need that money to pay bills and payroll or everything,” Hepler added.
Hepler said she’d reached out to the Mahanoy Township Authority and Girard Estate, the other two entities upon whose land Avangrid operates its Locust Ridge I and II wind farms. According to Hepler, MTA is in the same situation, and Girard Estate is checking into the matter.
A motion was made by board member Leo Pietkiewicz to allow Hepler to transfer money from the authority’s wind farm account to the general fund to cover bills and payroll.
Attorney Joseph Nahas, attending via phone, then asked the board to permit him to “cut me loose to go after these guys.” Pietkiewicz amended his motion to allow Nahas “to take whatever steps necessary.”
Pietkiewicz’s motion was approved unanimously. Brian Dillman was absent.
Nahas expressed concerns regarding the company’s location in Oregon and the situation that state is in. Though, Nahas said he believes that, since it is an out-of-state company and not an individual, COVID-19-related property tax relief does not apply to them.
He said that, today, letters would be sent out explaining the situation to the company and adding a late fee and attorney’s fees.
As of Thursday, the company is five months late for school taxes — $33,000 — and will be late on local taxes — $15,000 — if they’re not paid by the end of August. The authority paid the taxes on time and avoided a late penalty itself.
The authority agreed to impose a 10% late fee, the standard the authority uses for its water service, on the taxes.
Regarding future action, Nahas said, “Other than suing them, it’s not like you can shut the windmill off. I don’t even know what recourse, other than suing them and having this tied up, [there is.]”
“Chris [McCoach, MABS engineer], have you ever seen anything like this where they’re not paying the lease of the land, it’s not like we can just go up and throw a windmill on our back and take it off the property, where are we at with that with regards to windmills,” Nahas asked.
“I’ve never seen an active utility lease not being paid,” McCoach replied.
Nahas also expressed concern with the company continuing to generate electricity and revenue from MABS’ land without reimbursing property taxes, as per the lease agreement.
According to Avangrid’s website, the Locust Ridge II wind farm, situated partially on MABS land, was completed in May of 2009 and generates 102MW of electricity from 51 total windmills, 16 of which are on MABS land. The Locust Ridge I wind farm, above Mahanoy City on Mahanoy Township Authority land, was completed in February of 2007 and generates 26MW of electricity from 13 total windmills.
Avangrid operates two other wind farms in Pennsylvania, the Casselman wind farm in Somerset County and the South Chestnut wind farm in Fayette County.
According to a media release dated August 18, Avangrid is building a new, 200MW wind farm in Sherman County, Oregon.
About Author
