Developer Admits to Plant Washington Scheme

It’s official: Dean Alford, developer of Plant Washington and spokesman for Power4Georgians (P4G), admitted on the record that he never planned to use the $27-million-plus he’s finagled from customers of Georgia’s Electrical Membership Corporations (EMCs) to actually build a coal-fired power plant. Instead, he would use the millions of dollars he continues to draw from four EMCs to secure state environmental permits, which he would then try to sell — in an unfriendly market. If he can’t sell the permits, he’s already made a substantial paycheck, but customers will be out millions of dollars. Click here to download our explanation of how the money flows to Mr. Alford and other individuals.

Alford made the admission to Cobb EMC at its board meeting last month, according to minutes that were released to members last week. According to the Marietta Daily Journal,

“Mr. Alford … commented that coal is still the backbone of the country and that it is important to have a diversified portfolio of energy. Power4Georgians owns the permits but he stated that P4G never intended to build Plant Washington. He stated P4G’s goal has always been to obtain the permits needed and then sell them to any interested party that could build the plant.”

“Alford’s remarks [during the meeting] that ‘P4G never intended to build Plant Washington’ are likely to further infuriate Cobb EMC’s member-owners, who involuntarily committed $13.5 million toward getting those permits. The power plant was the ‘baby’ of now-indicted ex-Cobb EMC head Dwight Brown and his sidekick Alford, who also served as vice chairman of corporate spinoff Cobb Energy.”

An industry source pointed out to the MDJ the high risk of trying to sell the permit: “As for the argument that the permits could be sold? ‘Good luck,’ our first industry source said. ‘Who would buy those, if Cobb and others are saying they don’t need all that power?’”

In light of this information, Snapping Shoals EMC, Central Georgia EMC, Washington EMC, and Upson EMC ought to immediately end their EMC’s spending on Mr. Alford’s project, and turn to cleaner solutions for any future power needs, including energy efficiency, solar, and other renewable sources. If you are a member (customer) of one of these EMCs, please call your EMC today and demand NOT ONE MORE DOLLAR be spent on Dean Alford’s “project”.

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1 Comment

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You are missing two persons from your rouges gallery for Plant Washington. They are J.W. Rayder who bills Cobb EMC $80 K per month to consult on this project and to chair the Gas South Executive Committee, and Anis Sherali of Energy Consulting Group who has been billing 4 full time employees at close to $300 per hour (for a $250 per hour margin) on the project since the fall of 2007. For a 160 hour man month Sherali’s take is also $80 K per month so it proves that there is honor among thieves.

P4G never intended to build Plant Washington. The whole thing has been a scam from the onset. There was never any typical utility load and resource planning process that indicated a need for the plant. The project originated when Cobb was approached by TXU in late 2007 to potentially acquire the interest in one of their coal projects that they were divesting as part of an agreement to settle litigation surrounding eleven proposed coal plant projects.

TXU contacted a bunch of companies not just Cobb. Mr. Brown seeing the opportunity to set himself and his cronies Dean Alford, JW Rayder, Anis Sherali and the Tarbuttons in various, very lucrative, no bid development, planning, consulting and land deals paid for by uninformed and trusting GA EMC ratepayers decided to pretend to assume the project and pretend to build a coal plant. The payoff of course would be a very lucrative annuity while pretending to build the plant and then a nice kicker at the end when the permits were sold.

The big question is just who owns the permits? They are not in the name of P4G or Cobb EMC but in the name of individuals.

Comment by Webster Fahren on March 8, 2012 9:47 pm

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