The Register-Herald, Beckley, West Virginia

Local News

September 23, 2008

Officials want Co-Gen money back

By Christian Giggenbach

LEWISBURG — The Greenbrier County Commission is considering suing Western Greenbrier Co-Generation because the now defunct power plant owes the county $50,000.

Co-Gen officials pitched the county commission for a $50,000 loan for the coal-fired power plant that recently had its federal funding canceled. President Lowell Rose said more questions need to be answered about how Co-Gen officials spent over $16 million in funds.

“We supported the Co-Gen project,” Rose said. “I hope the three communities (Quinwood, Rupert and Rainelle) that own the project go back and start asking some serious questions and try to salvage the project. There possibly might have to be a change in management.”

Commissioner Betty Crookshanks said the project’s demise “was a shame,” and asked if any of the permits could be transferred or sold. Co-Gen officials at one time said the coal-fired electric producing plant would generate nearly a half-billion dollars in profit for the three communities over the life of the project.

Co-Gen manager Wayne Brown previously said over $53,000 had been contributed as a “matching participant” by the county, but the plant had no legal obligation to pay it back. However, Brown recently said he will file a “claim” against the government — in essence he is suing the Department of Energy — for over $8 million, which would pay back his debtors.

Commissioner Brad Tuckwiller said the county should make a legal move now, regardless if the money never materializes.

“Don’t you think it would be prudent to file for a judgment for the $50,000?” Tuckwiller asked. “Just under general rules of business practices for non-payment of a debt?”

Former county commissioner Steve Malcomb, who supported the power plant and voted for the $50,000 loan, agreed with Tuckwiller and Rose. He also suggested the commission should file a claim against Co-Gen.

“This needs to be pursued where all the money went,” Malcomb said.

The governing body did not vote on the issue Tuesday and will take the issue up at their next meeting.

— E-mail: cgiggenbach@register-herald.com

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