First Wind gives project a second wind

After lying dormant for a couple of years, the plan for a wind energy project on Grand Manan has passed from one company, Eastern Wind Power of Quispamsis, N.B., to First Wind of Newton, Mass., which is expecting to begin construction at the site next year. First Wind representatives will hold a public meeting to discuss the proposal on Thursday, September 18, at 7 p.m. at the Grand Manan Community School.

First Wind, formerly known as UPC Wind, is proceeding with the project, called Grand Manan 1, to erect 13 wind turbines on the western side of Grand Manan, near Dark Harbour. The land is owned by Crabbe Lumber Ltd. of Bristol, N.B, which had purchased the former Sawyer property that covers about one-third of the island. The turbines would be able to produce 19 megawatts (MW) of power, which is all that the power cable between Grand Manan and Campobello can handle. The power could be sufficient to provide enough electricity for the island, but it would be purchased by New Brunswick Power and go into the electricity grid. According to Grand Manan Mayor Dennis Greene, NB Power may replace the cable to the island in about 10 years and might upgrade its capacity then. At that point, a second wind project, Grand Manan 2, which would be able to produce 100 megawatts, would be considered for the island by First Wind.

In late August, First Wind flew Greene and two of the village councillors to its Mars Hill operation in Maine, which has 28 wind turbines. "I was really impressed," says Greene. He says they had concerns about noise and bird kill, but he notes that they were able to carry on a conversation at the base of the turbines, and the bird kill appeared to be "very little." First Wind has hired a person to count, five days a week, the number of injured or killed birds.

John Lamontagne, public relations director for First Wind, says that because of the company's filing of an S1 document with the U.S. Securities and Exchange Commission, he is limited in releasing information about the company. According to the S1 document, First Wind purchased the development assets relating the project and the parcel where the substation will be located from Eastern Wind in February 2008. First Wind is leasing the land on which the wind farm will be located from Crabbe Lumber under an agreement with an initial term of 20 years from commencement of commercial operations, with an option to extend the lease for an additional 20 years. The power would be sold to NB Power and forwarded into New England, qualifying the power for renewable energy credits in northeastern states.

Legal wind storms

In 2005, Eastern Wind Power had obtained the necessary environmental permitting for the Grand Manan project from the provincial government. Eastern Wind was a subsidiary of Western Wind Energy Corp. of British Columbia, and the parent company ended up in a legal battle with the two directors of Eastern Wind over claims of unpaid bonuses, conversion of corporate funds and defamation. Western Wind claimed that the Grand Manan project was not commercially feasible and ended up firing the Eastern Wind directors. The parent company alleged that the two directors had burdened Western Wind with $3 million in expenses and caused $15 million in damages.

When it took over the project, First Wind was able to have the environmental permits transferred to the company. According to Greene, the island's zoning for the property allows for the project, so the only requirement by the village would be for a building permit.

In New York state, the Attorney General's Office is currently investigating allegations of improper dealings with public officials and anti-competitive practices by First Wind. Lamontagne of First Wind says, "We have been and will continue to fully cooperate with that office's review." Also, a lawsuit has been filed in New York state concerning the vote by a town board in Prattsburgh, N.Y., to approve eminent domain proceedings to allow for a First Wind project. Lamontagne comments, "In regards to the Prattsburgh lawsuit, First Wind does not comment on pending litigation."

Concerning the New York Attorney General's investigation, the Grand Manan mayor says, "I take people at their word. I trust people. Until we've been misinformed or not enlightened on something, this is great." He notes that the project would contribute to the island's tax base. Although there could be a number of jobs during the construction phase for island contractors, there would probably be only two permanent jobs created on the island.

First Wind is also developing a wind energy project at Garvie Mountain in Glassville, N.B. In Maine, the company's wind farm at Mars Hill is operating, and it is constructing another wind farm at Stetson Mountain in Danforth, while a nearby third project in Penobscot County, called Rollins Wind, is in the pre-construction phase. The company also has projects in Vermont, New York, Utah, Oregon and Hawaii. As of June 30, First Wind's projects have a total of 5,564 megawatts of capacity, with projects in operation able to produce 92 MW and ones under construction expected to produce another 182 MW.