NCPA LODI POWER PLANT, "Resource 500"

December 21, 2005

Conspiracy to Defraud

Frank Cady and Jaimee Richey lured the LMUD Board into the Phase I Agreement under false pretenses

 Frank Cady and Jaimee Richey represented this Phase I project as a five year old 525 MW gas fired, combined cycle power plant located in Northern California. 

The December 6, 2005 LMUD meeting minutes released, at the December 20, 2005 Regular meeting, stated that the "Staff" had concluded that acquiring a portion of this large plant fits well into LMUD's developing long term electric resource portfolio.

Frank Cady specifically states: "The negotiations for purchase of the project are expected to take approximately four months, at which time a final decision to participate in the project will be made by each of the Project Development Participants"

The LMUD December 6, 2005 minutes reflect a unanimous vote to approve the Phase I Agreement. The reported initial cost to LMUD would be $56,250. 

On December 20, 2005, fourteen days after the Board approved Phase I, Frank Cady attempted to LMUD 12/20/05 AGENDA present a Phase II Agreement as the Lodi project.

KWH's calls to the CVP, Corporation, on December 19, 2005, alerted Frank Cady to inquiries being made about the Lodi Project. 

Frank Cady immediately approached Nancy Cardenas to remove the Phase II Lodi project Agreement  from the Agenda after he saw KWH member, Eileen Spencer in attendance.

KWH member, Eileen Spencer,  confronted Frank Cady about this fraud and he immediately took it off the Agenda.

The Reason:

The Lodi Project doesn't exist, at least not in the way Cady and Richey presented it to the Board on December 6, 2005. 

Frank Cady, after the close of the meeting, quickly stated, "The Phase II Agreement has not been finalized by NCPA. This project has not been built yet and is a 250 MW project". It was said in an act of desperation.

Sorry, Frank, you were already busted............................

NOTE: It is unknown what part NCPA played in this, since all of the documents were created and submitted were for internal use. No Phase I or Phase II Agreements were submitted by NCPA to LMUD that have been released. 

The Truth: 

NCPA (CVP,Corp) owns a small 50 MW "peaker plant" (built around the late 1980's) that sits near the City of Lodi's waste water treatment facility between Highway 12 and Highway 5. This facility is a used only for peak power, otherwise it remains unused. There is a PGE gas main near this 50 MW facility also.

The City of Lodi is a NCPA member and voted to participate in the "proposed" project, but reports no activity other than a "proposed" agreement to lease the land to NCPA should they decide to build a larger facility on this site. The proposed facility (gas-fired power plant) has never moved forward due to previous hurdles, some say "unsurpassable" hurdles. The project appears not to be "cost effective". 

Where have we heard that before: NCPA co-generation plant, Arrowrock Hydro Project...all Cady promoted projects.  

NO FIVE YEAR OLD 525 MW FACILITY EXISTS IN LODI

Frank Cady and Jaimee Richey committed fraud on the LMUD Board and ratepayers. If Jaimee Richey has invoiced LMUD for any work on this fraud, she should return the money and immediately withdraw from representing LMUD.  Frank Cady should be terminated. The District Attorney should be advised of this fraud. 

Frank Cady has brought phony projects to this Board before and even convinced this Board of Directors to purchase a power plant that didn't exist. The Arrowrock scandal. The ONLY ONES THAT HAVE EVER PROFITED FROM THESE BOGUS PROJECTS ARE THE ATTORNEYS.  When does it stop ? 

Frankly speaking, the Ratepayers get screwed every time.

There is no "hydro electric facility" at the Arrowrock Dam.

 This was a Fraud. Someone should have gone to JAIL.