LMUD ARROWROCK SCAM

    2000 power crisis   home page  page one  page two   other pages     Cady termination  

 NCPA COGEN      UAMPS-TRUCKEE     LMUD MEETINGS  LMUD 11-4-04

 

KWH CLAIMS

 FIRST VICTORY 

FOR RATEPAYERS

Someone should be in JAIL

ARROWROCK WAS A LIE FROM DAY ONE & WAS USED AS A SMOKE SCREEN FOR LMUD'S BAD MANAGEMENT

 

Kan We Help CONTINUES TO OPPOSE ARROWROCK May 8, 2006

 

 

ARROWROCK RISES FROM THE GRAVE ONLY TO BE BURIED AGAIN- FERC 4/19/06

HR 4377

Representatives Dingell and Barton have introduced HR 4377, to reinstate the Arrowrock license that was terminated. 

The Chairman of the  Federal Energy Regulatory Commission said no.

 

 

 

 

 

 

 

 

 

KWH THANKS FERC FOR ITS' DECISION ON THE ARROWROCK LICENSE

FERC COMMISSION ORDERS ON 9/1/05:

"The request for rehearing filed on June 24, 2005, by Boise-Kuna Irrigation District, Nampa & Meridian Irrigations District, New York Irrigation District, Wilder Irrigation District and Big Bend Irrigation District in this proceeding is DENIED"

If Lassen County had a District Attorney that would enforce the laws against white collar crime, Frank Cady, Wayne Langston, Darrell Wood, George Sargent, Nancy Cardenas, John Baxter, Don Battles, Louie Templeton, Marino Giannotti, Richard Parker WOULD BE INDICTED for their part in Arrowrock............

 

 

FERC DENIES BOISE IRRIGATORS A RECONSIDERATION 

 

KWH files Objection (6/27/05) to any Reconsideration to re-instate Arrowrock License

Al Barker & the Boise Irrigators attempt to snag another victim

ARROWROCK LICENSE TERMINATED

KWH FIGHTS FOR TWO YEARS TO GET LICENSE TERMINATED

LMUD, FRANK CADY AND THE LASSEN COUNTY TIMES DID EVERYTHING THEY COULD TO KEEP THE ARROWROCK ACTIVITY SECRET. 

Cady has fattened his bank account by keeping this phony project going and  denying the public the Arrowrock documents.  link

 

 

ARROWROCK WAS A LIE AND A SCAM FROM DAY ONE.

FERC 5/27/05 DECISION

 

 

 

Has LMUD violated Division 6?

Arrowrock Hydroproject may have been illegal from day one. 

The PSREC/LMUD co-generation plant may be illegal as well.

13091- Authorization for additional debt

 

 

KWH FILES OBJECTION TO FERC ARROWROCK LICENSE  LINK

 

Arrowrock FERC license expires on 3/26/05. Still no progress   link  link

 

The U.S. Department of the Interior says NO to the Arrowrock Project  link

 

 

Update: 1/5/05

KWH REQUESTS THAT THE ARROWROCK LICENSE NOT BE EXTENDED

Arrowrock Hydroelectric Project

Update: 12/22/04

The U.S. Department of the Interior says NO to the re-designed Arrowrock Hydroelectric project  link

There has been no progress on FERC-4656, the Arrowrock Hydroelectric project. Frank Cady got LMUD involved in 2001.

 FERC required the Boise Project Board of Controls (licensee) to submit the Articles of compliance by December 24, 2004, prior to the commencement of construction.  No submissions have appeared on the FERC website in compliance with submitting Articles 101-110, 112-115, 117, and 305.  link

Update: 9/29/04

FERC asks the U.S. Fish and Wildlife agency to review the modifications that the Boise Project Board of Controls want to make at the Arrowrock Dam. 

 

 Update: 7/12/04

In May/2004, the Boise Project Board of Controls (five Idaho irrigation districts that own FERC license P-4656) attempted to issue a Request For Proposal for  contractors. The illusive Feasibility Study was once again used.  The response to the RFP was again poor and unsuccessful. 

The Bureau of Reclamation requested information about the results and Ken Henley, BPBC, refused to disclose the results. Ken Henley stated that they are going "slow at it".

The "Substantial Completion", of the rehabilitation project at Arrowrock Dam by the Bureau of Reclamation, was filed on April 17, 2004. The Boise Project Board of Controls made no effort to install the turbines when the water was lowered for the valve replacement project by the Bureau of Reclamation. 

In that same month, LMUD made a public announcement that Arrowrock was very much alive. link  Frank Cady and the entire LMUD Board lied to the public. LMUD'S involvement in Arrowrock had been DEAD for three years....from day one. 

The Boise Project Board of Control have not submitted any of the required FERC articles to the necessary agencies. These FERC articles must be completed and  submitted to FERC, by December 24, 2004. The U.S. Army Corp of Engineers nor the Bureau of Reclamation have received anything from the BPBC. 

Frank Cady has never told the truth about Arrowrock and he never plans to now. 

 

Update: 6/14/04

THE FEDERAL ENERGY REGULATORY COMMISSION NOTIFIED THAT LMUD DROPS

ARROWROCK

It looks like the H.P.B. Arrowrock Feasibility Study may have been completed as much as five years ago

 

 

Lazard Biased? 

Frank Cady announces before Lazard's decision that Arrowrock is still viable. 

The LMUD Board even staged a phony attempt to buy the Arrowrock  hydroelectric plant, for Lazard. No hydroelectric  plant exists at Arrowrock Dam. The Arrowrock Dam is owned by the Federal government. The water rights are owned by five irrigation districts.

After the Lazard's decision to not release the Arrowrock Feasibility Study, LMUD drops Arrowrock.........??????

This information is still very important to get. It will show the culprits involved in this four year boondoggle. 

 

How dare the "Times" use this statement

Lassen County Times, 6/3/04 LMUD votes to pull out of Arrowrock

"Kan We Help, a citizens watchdog group, claimed the BBC (Boise Project Board of Controls) failed to inform LMUD ratepayers that it has never been able to secure a power-purchase agreement, a developer nor any financing for the project"

Correction:  "LMUD failed to inform the LMUD ratepayers that the BPBC has never been able to secure a power-purchase agreement, a developer nor any financing for the project"

All five LMUD Directors should be investigated for their part in this scam. 

The Lassen County Times went out of their way to suppress information on the phony hydroelectric scam.

 

 

ARROWROCK HYDRO PROJECT SUDDENLY DROPPED AFTER LAZARD'S RULING ON KWH LAWSUIT       

Thousands of hours and dollars were spent by KWH to show the public that the Arrowrock Hydroelectric project was not good for ratepayers. It has never been a viable hydro project from day one and Cady knew it. The LMUD Board knew it. KWH members knew it. 

******

Langston loses his fishing trips...no more free trips to Boise

Wayne Langston votes to keep the Arrowrock scam going (3-1, with Vazquez abstention)

 

All five LMUD Directors should be investigated for their part in this scam. 

The statements that the LMUD Board Members made sounded like they came straight from KWH.  

This Board and the previously recalled Board misled the LMUD ratepayers from December 18, 2000 to June 8, 2004.  

There wasn't a shred of truth, about Arrowrock, given to the LMUD ratepayers.

           Somebody needs to go to Jail

The "Motion to Intervene" filed, by KWH, was a chronological account of what was actually happening with FERC license P-4656 and what Frank Cady was reporting. This was a clear picture that the ratepayers were being lied to.  

Any honest Board would fire Frank Cady, but this board needs him to protect the documents from public exposure. link

The Arrowrock project's history (Failure to move forward with any progress since the issuance of the license) was available to Don Battles, Louie Templeton, Darrell Wood, Richard Parker and Wayne Langston and most of all, Frank Cady who profited from the Arrowrock scam.  

Herb Grutgen, Helene Williams and many others questioned the validity of this project from day one.  They were kicked out of LMUD meetings for expressing the truth. KWH members were thrown out of LMUD meetings for speaking the truth. 

KWH spent hundreds of hours speaking to the people directly involved with Arrowrock; Army Corp of Engineers, Bureau of Reclamation, Fish & Game, environmental groups, recreational groups below the dam.  The list is long.   

The one constant....the hydroelectric plant will never be built. 

So why did LMUD spend so much money in the last 31/2 years?

The only reason that this bogus scam continued was to let Frank Cady milk LMUD ratepayers out of hundreds of thousands of dollars. 

The "Feasibility Study" was completed  October/2001 link

Lassen County Times, 6/8/04, page 14A

"The feasibility study was expected to be completed by late fall at the latest"

How absolutely pathetic. Frank Cady is still lying to the public.  Why? To try and save himself from going to jail.  

 

RATEPAYERS DESERVE FULL DISCLOSURE OF COSTS

Arrowrock was a scam from day one. 

*somebody needs to go to jail*

Frank Cady, Louie Templeton and Wayne Langston lied about this bogus project for four years.

List of Arrowrock participants:

Frank Cady, Al Barker, Don Battles, John Baxter, Louis Templeton, Darrell Wood, Richard Parker, Wayne Langston, Al Vazquez, Nancy Cardenas, Evelene Twitchell, Bob Gaumond, George Sargent, Fred Nagel, Bill Stewart, Keri Richards, Sharon Edwards. 

 

*somebody needs to go to jail*

LMUD Board of Directors recently wanted to purchase the Arrowrock  hydro plant

 that didn't even exist. 

JUDGE LAZARD'S RULING SEVERELY FLAWED

Judge Lazard's ruling on the KWH writ makes references to statements and evidence that does not exist in the record. Judge Lazard's ruling sets stage for the appeal. 

LMUD files an insurance claim after the courts ruling. 

What was  the insurance claim for? 

The insurance company will pay KWH instead of LMUD? 

FRANK CADY DID PROMISE TO MAKE THIS STUDY PUBLIC IN 2001

LMUD RATEPAYERS PAID more than $150,000 FOR THIS STUDY

Note: Why didn't Cady make a copy? Why couldn't Cady get a copy from the Boise Project Board of Controls? 

Cady doesn't know where H.P.B is, so we know he couldn't get a copy from the company that he said did the study.

LMUD Board setting the stage to buy the Arrowrock Hydroelectric Facility in Boise, Idaho. 

One problem....it doesn't exist Link 

 

JUDGE LAZARD SETS A DANGEROUS PRECEDENT WITH LMUD RULING

1. The Public will not know, for awhile, what happened to the promised 2001 Arrowrock Feasibility Study. 

The Lassen County Times (5/4/04) calls the study "LMUD's Arrowrock Feasibility Study 

 LMUD claims that the study is owned by HPB, Hydroelectric Inc.  HPB performed the study paid for by the LMUD ratepayers.

Who do you think owns it?  Two guesses and the first one doesn't count. LMUD is still a public utility. link  

Cady claimed the project was "feasible"...exactly how was that determined Mr. Cady? Could it possibly be that the Arrowrock Feasibility Study was complete and that Cady lied to the court that it was merely a "Draft"..... 

A lot of substantial  actions were accomplished from this Feasibility Study. 

 A. The RW Beck Engineering company (This is the engineering firm that LMUD hired to analyze the Arrowrock Feasibility Study) This  RW Beck report is dated October 2001.    link

 Lazard ignored this evidence completely?   

B. Budgets were developed from the Feasibility Study. 

RFP (Request for Proposals) were issued and it was found that no one was interested in this tired old project. 

The 18 year failed history of this project continues to retard any interest by developers. 

Judge Lazard did not feel it necessary to look at the Feasibility Study?????

Evelene Twitchell, General Manager of LMUD stated publicly that Arrowrock "was not economically feasible at this time". How was that determined....no, not from the completed feasibility study?  WHICH IS IT......Feasible or not feasible?             

    Will Officials go to jail if this study is released?  

2. The Public will never know how much Frank Cady is "spending" on the Arrowrock scam or any new scam he is developing.

Frank Cady admits billing and getting paid for work on Arrowrock in 2001.

Cady's invoices clearly indicate detailed time and task yet he tells the judge that there are no entries for Arrowrock. ?????

Judge Lazard did not feel it was necessary to even look at Frank Cady's "unredacted" invoices??????????

We are going to take a closer look at Frank Cady's LMUD invoices

 

3. It is now "frivolous" to ask for public documents and only leads to lawsuits against public agencies.  

  Secrecy is the only answer for LMUD and Frank Cady's scams

4. The Public has no right to know what their government agencies are doing with public money. 

5. Prior to the Writ of Mandate filed against LMUD, LMUD  released Wayne Langstons "unredacted" checks for two months only

The Writ asked for all of Langstons checks since he was appointed.  Suddenly, Langstons checks were totally redacted.  

KWH uncovered that Langston had previously hidden money, he had received from LMUD,  in Cady's invoices. "Busted", Mr. Langston, busted.

The public has a right to expect that since Langstons checks had been previously released unredacted that any further requests would be unredacted.  

Cady redacted all information on the State and Federal payroll reports. These reports show "gross" amounts paid to Board members. Cady played games with the State and Federal payroll reports until he was forced to show the gross amounts paid to Board members. This happened after the Writ was filed. 

 

LMUD General Manager admits to  spending an additional  $141,000 of unauthorized  ratepayer money on Arrowrock. 

According to Frank Cady, Evelene Twitchell has authorized $141,000 to address KWH's  FERC intervention on the Arrowrock extension that was before FERC from March/2003 to February/2004.

Twitchell is paranoid and thinks that all public records requests are going to lead to lawsuits.......  link

15% of this amount was spent (Spiegel & McDiarmid) to try and cover-up a Brown Act Violation in May of 2003. LMUD submitted documents to FERC after announcing publicly that they would not spend any more money. These LMUD submittals remain on the FERC website. 

Frank Cady, 2/25/04: "However, the last dollar count for such intermeddling, including LMUD staff, this office and Washington DC attorneys, was close to $100,000 and climbing".

The LMUD Board has never authorized "any" money to be spent on fighting KWH's "Motion to Intervene" in FERC license P-4656 (Arrowrock Dam).  Link to Board's statement of no more money spent on Arrowrock

Evelene Twitchell was instructed by the LMUD Board, after a closed session, not to spend any money on KWH's intervention. Evelene Twitchell made a public statement that the Board has decided not to go forward with any intervention on Arrowrock. 

????????????????????????????????????????????

 

KWH WAS RIGHT ABOUT ARROWROCK

LMUD Board backs out of Arrowrock

and lies about their involvement

May 2004- Frank Cady states that LMUD is a partner in Arrowrock

June-2004- Arrowrock is Dead

LMUD lied to the LMUD ratepayers

Frank Cady promised to release the Arrowrock Feasibility Study, to the public, in December of 2001. 

 

 

 

U.S. Department of the Interior submits letter of concern, to FERC,  over Arrowrock Hydro extension being granted again. The list of endangered and threatened species grows. The U.S. Fish & Wildlife Service-Pacific Region asks that FERC "reinitiate consultation under section 7 of the Act to address potential project impacts to listed species"   Link

CADY ASKS JUDGE LAZARD FOR ARROWROCK STUDY BACK 4/16/04

Frank Cady, LMUD general counsel, asks Judge Lazard for the Arrowrock Feasibility Study back. Cady claims that he needs the original back to "refresh his recollection" of the study. 

Cady claims that this is urgent because of all the new information that is coming in. There has never been any progress in this Boise hydro project in 15 years. 

Frank Cady needs more than a recollection.  

Frank Cady needs to look at the statements given to the court and to the LMUD ratepayers:

June 27, 2001- "Mr. Battles explained that the District had not expended the money as of yet, and the money would not be spent until we were sure we were at a point to begin the study".

THE FEASIBILITY STUDY WAS COMPLETE. "THE STUDY" WAS TO TAKE ANOTHER LOOK AT THE FEASIBILITY STUDY H.P.B. DID. 

June 27, 2001- "Mr. Wood added that we still need the hard numbers before the feasibility study is performed". Cady states that the only way to get "hard numbers" is to perform the study???????

THE LMUD RATEPAYERS ARE TOLD NOTHING BUT LIES, LIES AND MORE LIES

 

   *He claimed that he could not give the Arrowrock feasibility study to the LMUD public because it did not belong to LMUD yet 

 *  Cady claimed that the study was full of "inaccuracies and insufficiencies", yet budgets were developed from this study.

 *He claimed that the study was not completed, yet RFP's were issued to contractors.  Requests For Proposals were received from contractors from this study. 

*He claimed that the study was not complete, yet RW Beck Engineering completed their engineering analysis from the H.P.B Feasibility Study. 

 

 

Was this study complete, you betcha it was complete and it showed that the project was not economically feasible. But that fact is not news.         

He claimed that the study belonged to H.P.B. Hydroelectric

He claimed that LMUD had no control over the study. Past LMUD minutes state otherwise.........

Cady claimed the project was feasible...exactly how was that determined Mr. Cady? Could it possibly be that the Arrowrock Feasibility Study was complete and that he lied to the court that it was merely a "Draft"......

 November 14, 2001 LMUD Minutes: 

"RW Beck has been selected as the independent consultant and will examine such issues as output, water flow, and cost of production and transmission. He (Cady) estimates that it will take approximately 6 weeks for the consultant to complete his report to validate or invalidate the project."

 The RW Beck report was completed when Cady made this statement (The RW Beck report is dated October 2001) link

 

 

THREE HOUR KWH v LMUD HEARING ENDS WITH LAZARD TAKING THE CASE UNDER SUBMISSION LINK

 

KWH asks for the monies spent on Arrowrock

Frank Cady states that there are no records in LMUD's possession.  KWH continues to pursue this and finally Cady produces spreadsheets (after his denial of records of the monies spent) that existed when the public records request was made. 

These reports existed when KWH made the request and Cady lied about the existence of these reports to KWH and the Court. 

LMUD stalls Public Records Requests about Arrowrock and monies paid to Board Members

Prior to the Writ of  Mandate being filed, Frank Cady released "unredacted" checks issued to Wayne Langston for the months of April and May 2002,  yet when KWH requests checks before this period and they are totally redacted (?)

Frank Cady denies every request for the gross wages for the Board members prior to the Writ of Mandate being filed. Frank Cady released computer printed spreadsheets on the LMUD Board members gross salaries minus any names on the spreadsheets.  

In court, Cady slips in these five  spreadsheets with names on them and claims that he sent ten documents....five with names on it and five without names on it.  Now, why would the court believe this ?   

LMUD spends unauthorized $141,000 on Arrowrock Link

 

lmud board takes no action on the purchase of a phantom    hydro facility...no kidding ?

This LMUD Board has become quite the joke of the County. 

The LMUD Board actually placed the purchase of a phantom hydroelectric facility on their closed session agenda on March 4, 2004

March 4, 2004 Agenda Item 8b:

"Conference with Real Property Negotiators. Property Arrowrock Dam Hydro Electric Generation Facilities located upon the Boise River upstream of Boise, Idaho."

"No reportable action. President Nagel stated that LMUD has been advised by the Boise Board of Controls that they are actively moving to obtain final feasibility costs. Until that occurs, LMUD will not know the cost of power of the feasibility of the project."

The October 2001 H.P.B Feasibility Study included budgets.

A Budget for construction was given to Aqua Terra. H.P.B budgeted $11 million and Aqua Terra bid $19 million.  

 

 

LMUD BOARD OF DIRECTORS DISCUSS BUYING ARROWROCK IN CLOSED SESSION

 The purchase of Real Property: Property Arrowrock Dam Hydro Electric Generation Facilities located upon the Boise River upstream of Boise, Idaho.

The Arrowrock Dam is owned and maintained by the U.S. Bureau of Reclamation.  This is Federal property. 

The water rights are owned by the Boise Project Board of Controls

The FERC license to build a hydroelectric facility at Arrowrock Dam is owned by the Boise Project Board of Controls.

Evelene Twitchell states publicly that LMUD will not spend any more money on Arrowrock. It seems that the project was not economically feasible and was put on hold.

Frank Cady tells the Court on February 17, that the Feasibility Study is full of "inaccuracies and insufficiencies." But this LMUD Board is moving forward to purchase WHAT ????

Now, this LMUD Board is telling the public that they are sending two PSREC customers, Tinkerbell and the Tooth Fairy to negotiate to buy "Never Never Land".

This Board is going into closed session to consider buying a facility that does not exist and never will exist. 

LMUD Agenda: Decide that more studies need to be made. Decide to waste more money. Money that will line Frank Cady's pockets for the next ten months. 

 

 

U.S. DEPT OF INTERIOR FILES LETTER OF CONCERN ABOUT ARROWROCK HYDROELECTRIC PROJECT LINK

 

ARROWROCK WAS DEAD IN 1994 

AND IS STILL DEAD IN 2004

The Boise Project Board of Controls will do what they have done for 15 years. Suck money out of small power purchasers, because they know they don't have the sophistication to know that this has always been a project that can never be built. 

LMUD can lie all they want to now....Arrowrock is Dead

KWH has spoken with contractors that have had the unfortunate luck of getting involved with the BPBC. Without exception, Arrowrock is a no go.......... the cost to build this dam is not worth the amount of power that it will generate. 

The Feasibility Study was completed in October 2001, according to the contractors that received it from HPB Hydroelectric. HPB Hydroelectric is also now out of the project.  

No contractor would bid on a study that was not complete. 

All the bids came in and every one of the contractors backed out. "The Arrowrock project

is underbudgeted and depends on consumer financing" 

Ratepayers paid for this Feasibility Study with public money. 

The Ratepayers are entitled to this report. 

IT IS CRIMINAL THAT CADY AND THIS LMUD BOARD ARE LYING TO THE PUBLIC.

THERE WILL BE NO BONDS ISSUED, NO POWER PURCHASE CONTRACT, NOTHING BUT BIG TALK BY A SMALL TOWN ATTORNEY. the lmud ratepayers will subsidize frank for as long as we let him.

 

FERC CHAIRMAN FOUGHT THE CONGRESSIONAL EXTENSION FOR ARROWROCK Hoecker letter

FERC GRANTS FINAL CONGRESSIONAL EXTENSION TO THE ARROWROCK LICENSE

The Federal Energy Regulatory Commission granted the Boise Project Board of Controls their final extension on January 29, 2004.  Congress passed PL 106-343 that granted three-two year extensions to the Boise Project Board of Controls.   One year of the final two year extension is gone and the irrigation districts have until December 24, 2004 to complete the pre-construction requirements. Something that in the fifteen year project history they have never been able to do. 

The Boise Project Board of Controls has never completed the pre-construction requirements in the fifteen year history of this license. If construction is not started, on the hydroelectric project, by March 5, 2005....its simply over. 

LMUD has wasted our utility money for 4 years. Natural gas prices continue to escalate...the economic environment couldn't be worse for building a hydroelectric plant that runs on gas turbines. Boise, Idaho is in a chronic drought...common to this area. 

If this LMUD decides to "further participate" in Arrowrock     this Board should be recalled and put in jail. 

The ratepayers have no idea how much has been spent on this scam. This LMUD Board has spent thousands of our dollars just  to keep the actual costs from us.  

The BPBC went to Congress when FERC notified them that they were terminating the license due to the fact that they had not been able to satisfy the requirements of the license since the license was granted.

The January 29, 2004 notice states that there has been no secured financing or power purchase agreement signed.  The power industry is well aware that the project is not viable. (NOT ENOUGH RETURN FOR THE INVESTMENT). 

 The notice referenced LMUD as being a "potential power purchaser".    The only trouble is that there is no power to purchase.  No responsible entity would sign a power purchase agreement when there is no hydroelectric plant to produce power.  

So why does LMUD continue to waste the ratepayers money?  Frank Cady profits from this illusion............who else is profiting.....NOT RATEPAYERS.  

 

LMUD BOARD LIES ABOUT ARROWROCK SPENDING 

 

LMUD, at their May/2003 meeting,  informed the public that it intended not to spend any money on KWH's Motion to Intervene on Arrowrock. 

Frank Cady was then instructed, by this Board, to file with FERC, on the phony Arrowrock project.   This is not only a criminal Brown Act Violation....but a breach of trust. Why does Frank Cady still represent LMUD.....(a pig at a trough)

Frank Cady writes libelous letter to KWH and accuses a KWH member of sending these documents to FERC to hide the fact that he did it. 

LMUD Board did know that Frank Cady has spent over $11,960.25, just on trying to hide the fact that LMUD filed these FERC documents. 

Now, Frank Cady states in a document to Superior Court that LMUD has spent over $100,000. Criminal, just criminal. The lies continue

Total misuse of PUBLIC FUNDS. 

FERC is standing firm that LMUD sent the documents.   Cady used Spiegel & McDiarmid to attempt to get the LMUD documents removed from the FERC website. 

Cady has no limits on his spending. NONE.  He is out of control. The LMUD Board is out of control. 

How do you get rid of an incompetent attorney when he still can be used to put together rotten little deals for the LMUD Board. 

 

 

KWH ASKS LMUD BOARD TO GIVE FINAL REPORT ON ARROWROCK FEASIBILITY STUDY 

LMUD PROMISED TO GIVE REPORT ON FEASIBILITY STUDY WHEN IT WAS COMPLETED. NOW LMUD REFUSES TO INFORM THE PUBLIC OF THE RESULTS. 

Arrowrock Feasibility Study was completed in 2001. 

Link:  KWH requests Board to give Final Report on Arrowrock

Link:  Arrowrock Feasibility Study

Link:   RW Beck Review

 

ARROWROCK MONEY NOT AUTHORIZED

LINK    LANGSTON AND RICHARDS GIVE FALSE STATEMENT TO COVER UP SPENDING

 

 

 

KWH ASKS LMUD TO REPORT ON THE ARROWROCK FEASIBILITY STUDY THAT WAS COMPLETED IN 2001.

LMUD REFUSES  

Link    Terry Francke, attorney for California First Amendment Coalition, demands report given to School Board is a public document.  Feasibility study given to LMUD Board, now public document

LMUD BOARD CAUGHT IN  LYING TO THE PUBLIC...again

LINK       LMUD TOOK ACTION ON ARROWROCK

   LINK  LMUD REPORTED NO ACTION

LMUD LIED ABOUT CLOSED SESSION ON MAY 8, 2003

The LMUD Board met in closed session on May 8, 2003 to make a conference call to Spiegel & McDiarmid, in regards to the Arrowrock project (FERC P-4656). No action was reported to the public...yet LMUD went ahead and filed with FERC on May 19, 2003.   

The LMUD Board of Directors are LIARS. 

They have lost all integrity and credibility

       May 8, 2003 Agenda    May 8, 2003 Minutes     LMUD'S action w/FERC

 

CADY WON'T SIGN STATEMENT ON VOTE AT THE APRIL 25, 2001 MEETING

At the rescheduled LMUD meeting, on August 12, 2003, Frank Cady was asked to sign a statement given to him by KWH . KWH is asking Frank Cady to sign a statement that he witnessed a unanimous vote by the LMUD Board, Wayne Langston, Louie Templeton, Marino Giannotti, and Richard Parker, to authorize funds for the Arrowrock scam. 

Frank Cady was the general counsel and parliamentarian at the April 25, 2001 meeting.

 Statements were signed by Wayne Langston and Keri Richards that they witnessed a vote taken on the April 25, 2001 agenda item (10d) that would have authorized money to be spent on the Arrowrock scam. Cady is unwilling to stand by his public statement that he witnessed a vote by the LMUD board to authorize money to be spent on the Arrowrock scam. 

Langston statement            Richards statement

April 25, 2001 LMUD minutes

The recalled LMUD chairperson, Louie Templeton, handed the gavel over to Darrell Wood to chair the meeting.   Darrell Wood, according to the April 25, 2001 meeting minutes made a motion to authorize the LMUD general manager to sign the Arrowrock MOU.     April 25, 2001 LMUD minutes

Darrell Wood can not make a motion while occupying the chair position.  

Louie Templeton then seconded the motion.   This motion was improper and a vote could not be taken.  A vote was in fact NOT TAKEN. 

NO VOTE WAS NEEDED, NO VOTE WAS TAKEN

All subsequent action taken on this "improper motion"

is null and void.   

It wasn't an accident that Frank Cady introduced this Arrowrock Agenda item 10d at the beginning of the meeting.  It wasn't an accident that it was not included in the Agenda prior to the meeting.   

All of the money, every dime of it, was spent without any authorization.

Cady is now willing to further break the law by this COVER UP.  Cady has been paid thousands of dollars to keep this scam going.....Cady is still being paid to this day for a huge scam on the public. 

The question now is will this LMUD Board fire Cady before or after he goes to JAIL ?

Will the present LMUD Board be indited also for their part in the cover-up?  

Will the General Manager be the first to be arrested........

frank cady lies about the 

arrowrock feasibility study

Frank Cady tells the Court that these documents are not relevant and asks that they be stricken from the record. 

bpbc releases  feasibility study to ferc          

  cady denies study     

Frank Cady has threatened to sue KWH five times  and has abused his authority by announcing A FAKE LAWSUIT.  

 Judge Bradbury notified

It seems that the local courts could try and correct Cady's behavior....  

Eventually, all of Cady's dirty deeds will catch up to him.....guaranteed !!!!

The Courts might also become extremely interested in Frank Cady's recent activities. KWH will be more than cooperative in submitting the evidence to the Lassen County Courts and  State and Federal Courts.  

ARROWROCK FRAUD 

FRANK CADY CAUGHT IN MORE LIES

KWH seeks to end Arrowrock scam and has filed this "Motion to Intervene" with the Federal Energy Regulatory Commission. 

www.ferc.fed.us/ferris.htm.  

*************

UNITED STATES OF AMERICA

BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

MOTION TO INTERVENE- 4656-016

Kan We Help (KWH), a local advocacy group in Lassen County, California, hereby file this MOTION TO INTERVENE to the Federal Power Act, 16 U.S. C. 791 (a)-825 (r), and the Rules of Practice and Procedures, 18 CFR 385.210, .211, .214.

ARGUMENT

Kan We Help has filed a Motion to Intervene with the REQUEST TO EXTEND TIME REQUIRED FOR COMMENCEMENT OF CONSTRUCTION AND REQUEST TO EXTEND THE TIME FOR COMPLIANCE WITH LICENSE ARTICLES as submitted on March 18, 2003, by the Boise-Kuna Irrigation District, Nampa & Meridian Irrigation District, New York Irrigation District, Wilder Irrigation District and Big Ben Irrigation District (the Applicants) filed the above action.

Kan We Help would like to submit the enclosed document. As evidenced in the documents we would like to submit the following concerns:

On March 27, 1989, the Applicants were granted a FERC license for the hydroelectric project to be located on the Boise River 22 miles upstream from Boise, Idaho. 46 FERC 61,385 (1989). The hydroelectric project will include a powerhouse and penstock to be installed at the U.S. Bureau of Reclamation's existing Arrowrock Dam located upstream of the Lucky Peak Dam and Reservoir. Part of the project will occupy lands managed by Reclamation, the U.S. Army Corps of Engineers, and the U.S. Forest Service in the Boise National Forest.

On April 26, 1989, the Applicants requested that the Commission remove Articles 104,111,117,402-403 and 412 of the Applicants FERC license. The Commission denied this request on May 26, 1989. The Commission's decision was upheld on December 6, 1990 but also amended the requirements to add Article 414 (the Project was not to impair any vested water rights granted under state law). 53 FERC 61,328 (1990). The Commission also revised Articles 402, 403, and 412.

The Applicants did not move forward with this hydroelectric project at Arrowrock Dam and the Applicants FERC license was due to expire. The Applicants requested an extension of time to develop and complete this project with deadlines of March 1999 to commence construction and March 26, 2001 to complete Construction. In addition, the Applicants were granted an extension of time for Articles 101-110, 1112-1115, 117 and 304. The Applicants were granted an extension to comply  with these Articles until December 26, 1998. 

Again, the Applicants did not move forward with compliance. The Applicants time had run out. The Commission, on May 3, 1999, denied the Applicants request for a stay and gave notice of the probable termination of the Applicants license for the Arrowrock Dam Project. The Applicants appealed to Congress. In October of 2000, Congress enacted Public Law 106-343 which authorized the Commission to extend the deadline for commencement of construction up to a maximum of three consecutive two-year periods.

Public Law 106-343 however requires "....good faith, due diligence, and public interest requirements" On August 16, 2001, the Commission issued an order granting extension of time to commence and complete the project of construction. The Commission concluded that Section 13 of FPA and Public Law 106-343 authorized granting the request for extension of commencement  of the Project to be extended to March 26, 2003 and completion of the Project construction by March 26, 2005 and compliance with the Article provisions by December 24, 2002 or 90 (ninety) days prior to starting land clearing or spoil producing activities.

The Applicants have not complied with the second extension and are now requesting the third and final extension.

REQUEST THAT THE THIRD EXTENSION BE DENIED FOR THE PUBLIC INTEREST

The Applicants, in a desperate attempt to receive the second extension, sent a flurry of letters out to power purchasers on December 18, 2000. The Applicants, again,  have not been able to market the idea of a hydroelectric power plant at Arrowrock Dam. The objections to this power plant have been many over the life of this license. The lack of interest and viability, of this project, has been apparent since the issuance of the FERC license to the Applicants and it is even more apparent today.

PUBLIC DECEPTION

Lassen Municipal Utility District was one of the potential power purchasers contacted in December of 2000. Mr. Frank D. Cady, general counsel for LMUD, was approached by HPB Hydro, Inc. in 2000, and he expressed interest in the hydro electric project. Mr. Frank D. Cady wrote the Applicants on March 1, 2001, stating "I am pleased to advise you that LMUD is very interested in negotiating a power purchase agreement with the irrigation districts, which hold the FERC license for the Arrowrock Hydro Project. LMUD has reviewed the draft terms you provided and, while we have some suggested changes, we are optimistic that an agreement can be reached with the irrigation districts to purchase the output of the Arrowrock Hydroelectric project."

Lassen Municipal Utility District was facing a financial crisis in December 2000. The LMUD Board was discussing ways of approaching bankruptcy. The Arrowrock Project was brought before the ratepayers at the April 25, 2001 meeting. It was presented as a joint venture (between the Boise Project Board of Controls and Lassen Municipal Utility District) to develop the hydroelectric project at Arrowrock Dam in Boise, Idaho.

At no time, was LMUD in the position to finance the Arrowrock hydro project. The LMUD Board of Directors at the time (Richard Parker, Wayne Langston, Louie Templeton, Marino Giannotti, and Darrell Wood) proceeded to deceive the public that they needed $150,000 to finance a "Feasibility Study" to see whether or not the hydroelectric power plant at Arrowrock Dam, Boise, Idaho, would be worth floating municipal bonds. The LMUD Board estimated and advised the public that it would cost approximately $32 million to build the hydroelectric plant. LMUD was in no position to float municipal Bonds.

In August of 2001, HPB was still identified as the developer. LMUD is still advising the public and their ratepayers that they are actively pursuing the joint venture , to also be the developers on the project and even announced the obligation to "pay the debt service on the facility plus the cost of operation and maintenance and a royalty to the irrigators" (April 25, 2001 LMUD meeting) of the facility. Mr. Frank D. Cady advised the ratepayers that LMUD must determine the cost of wheeling and transmission of the output to Lassen Municipal Utility District's customers.

Frank D. Cady refuses to disclose documents on Arrowrock and KWH has filed a Writ of Mandate to acquire these documents. Mr. Frank D. Cady states in a letter (dated 2/13/03 that he has provided a copy of the Memorandum of Understanding between LMUD and the Applicants, to a member of KWH. KWH has never requested a copy of the MOU due to the fact that Mr. Frank D. Cady has announced publicly that the MOU is exempt from disclosure.

Mr. Frank D. Cady, stated in a letter (dated 3/19/03) that the MOU is exempt from disclosure.

Mr. Frank D. Cady and Board members Wayne Langston and Fred Nagel traveled to Arrowrock Dam, Boise, Idaho on July 3, 2002. The Board knew that the project was dead in the water at this time. 

The Applicants will not acknowledge this meeting, however, the LMUD Board members "Board Members Statement of Meetings" revealed that Frank Cady, Fred Nagel, and Wayne Langston traveled to Arrowrock at the ratepayers expense in July of 2002. These LMUD Board Members refuse to disclose the purpose of this meeting in July of 2002 after continuing requests from the public.

The Applicants own recollection of the past fourteen years speaks volumes of the failure to market this Project. The myriad of objections over the past 14 years should now be looked at with renewed interest.

EXPENDITURE OF FUNDS

Frank D. Cady has advised the LMUD Boards not to disclose copies of the supporting documents for payments made for the Arrowrock Dam Hydroelectric project or what LMUD has paid Mr. Frank D. Cady to perpetuate this scheme. It is known from the Accounts Payable Report that LMUD has paid the Boise Project Board of Controls, in excess of $125,000. It is possible that Mr. Frank D. Cady has received this amount also for legal fees. KWH has filed a Writ of Mandate to require LMUD to disclose the actual amount given to Mr. Frank D. Cady. Mr. Frank D. Cady continues to invoice for work on Arrowrock.

The Lassen Municipal Utility District never voted to authorize either the Memorandum of Understanding or to spend any money on the Arrowrock hydroelectric project in Boise, Idaho.  The LMUD charter, Public Utilities Code 11909, Division 6, requires that a vote be taken and it must pass by a majority of Board Members to be able to take action on any item. (See April 25, 2001 and August 8, 2001 minutes) 

PUC Code 11909, Division 6:

"The acts of the board shall be expressed by motion, resolution, or ordinance. No ordinance, resolution or motion shall have any validity or effect unless passed by the affirmative votes of at lease  three directors of a five ward district, or at least four directors of a seven ward district"

The Applicants claim that in excess of $500,000 was spend on obtaining the FERC license and that they now have spent in excess of $700,000 on this hydroelectric project at Arrowrock Dam, and $250,000 has been spent in the last two years. ($700,000-$500,000=$200,000). The Applicants make no mention, at all of any money that was paid or shared by Lassen Municipal Utility District. 

The Applicants have no power purchase agreement in place. Nor do they have a developer agreement in place. The history of the Applicants indicated that a developer agreement will not come until a power purchase agreement is signed given the history of this project, neither is likely to occur.

This project has been marketed to death and most likely will not produce any interested parties unless it is the intent of the Applicants to seek out and create another scheme like they were able to do with the public utility LMUD.

It is unknown, if similar situations have existed in the past with other entities drawn into the Arrowrock Hydroelectric Project at Arrowrock Dam, Boise, Idaho.

CONCLUSION:

It would be in the "Publics best interest" not to grant any more extension to the Boise Project Board of Controls for their FERC license to develop a hydroelectric facility at Arrowrock Dam. The risks to the public are apparent and conclusive and the protection for the public far outweigh the reasons to extend this license another day. The public, private enterprises and the irrigation district members have paid too big of a price for this scheme to continue.

Respectfully submitted this 5 day of April, 2003

signed, James G. Forbes, Eileen Spencer, Jack L. Helsel, Executive Committee Members

The full KWH document ( 231 pages) can be accessed on the FERC website,  www.ferc.fed.us . Click on  FERRIS at the top of the page. Click on the green box marked "Advanced Search". Simply enter March 1, 2003 in the first "Date:" box. Enter P-4656 (Docket number) and scroll down to the bottom of the page and    click submit.

 

WAYNE LANGSTON AND FRANK CADY  NEVER TOLD THE TRUTH ABOUT ARROWROCK 

Wayne Langston and Frank Cady never told the truth about LMUD's part in Arrowrock. 

The Arrowrock Memorandum of Understanding was never for purchasing power from Arrowrock.  The MOU obligated the LMUD ratepayers to DEBT. The MOU was in effect from August 21, 2001 to December 31, 2001.  In that time, Frank Cady was paid huge legal fees for putting this scam together.  Now, the Boise Project Board of Controls is claiming that the MOU has been "reconfirmed" by LMUD.  What exactly DID LMUD AND BPBC DO WITH THE PROJECT development from January 1, 2001 until June 1, 2003.  

Answer:  ABSOLUTELY  N O T H I N G.  

SECTION 6. EXCLUSIVITY 

"LMUD and the Irrigation Districts agree to deal exclusively and in good faith with one another regarding this MOU and the Project while this MOU is in effect." 

" Who" ended the exclusivity ?  The BPBC or LMUD.   The MOU was evidently cancelled and therefore the "EXCLUSIVITY ENDED" ????

Frank Cady has denied the public this MOU many times. Frank Cady has received thousands of dollars to deny the public this  public document. KWH was able to persuade Evelene Twitchell (with the help of the FBI) that it would be in her best interest to release this document to the public. 

The following is a copy of the MOU that Don Battles signed. Don Battles (General Manager) never signed a power purchase agreement with the Boise Project Board of Controls, even tho the document is titled "POWER PURCHASE-SALES AGREEMENT".

ARROWROCK    M.O.U.

ALL ARROWROCK DOCUMENTS ARE AVAILABLE TO THE PUBLIC

ARROWROCK POWER PLANT PROJECT

MEMORANDUM OF UNDERSTANDING

POWER PURCHASE-SALES AGREEMENT

This Memorandum of Understanding is entered into this _______day of _______, 2001 by and between the Boise-Kuna  Irrigation District, the Nampa & Meridian Irrigation District, the New York Irrigation District, the Wilder Irrigation District, and the Big Bend Irrigation District ("Irrigation Districts"); and the Lassen Municipal Utility District organized under the laws of the state of California and is authorized by law to enter into long term contracts to purchase electrical energy and distribute that electrical energy to its customers; and

WHEREAS, LMUD has an immediate need for a long-term power supply contract and wishes to purchase the entire output of electrical power and energy from the proposed Arrowrock Power Plant Project (the "Project"), if construction of the Project proceeds under the Federal Regulatory Commission ("FERC") License No. 4656; and

WHEREAS, the Irrigation Districts are organized under the laws of the State of Idaho and Oregon and are authorized to construct and own hydroelectric generating facilities, to supply electrical energy and to sell surplus electrical energy; and

WHEREAS, the Irrigation Districts are the holders of the FERC License No. 4656 to construct, operate, and maintain the Project and are willing to sell the surplus of electrical power and energy from the Project to LMUD under the terms and conditions described herein, and

WHEREAS, the irrigation Districts have incurred from the beginning of its development and licensing efforts through the year 2000, in excess of $339,000 in licensing and development costs; and

WHEREAS, additional development costs are required to be expended by the Irrigation Districts to permit the expeditious start of construction of the Project; and those additional costs are expected to reach $300,000; and 

WHEREAS, there is a potential opportunity to develop the Project and begin construction in 2001 in coordination with the Bureau of Reclamations Valve Rehabilitation Project, which is currently scheduled to begin construction in September 2001; and

WHEREAS, LMUD'S electricity needs must be communicated to the developer of the Project in order to design and construct the Project in a fashion that best meets the needs of both LMUD and the Irrigation Districts; and

WHEREAS, under the circumstances all parties must move forward expeditiously on a fast track to ensure that the Project is begun and completed as required by the FERC license, that the Project is designed and built in coordination with the Bureau of Reclamation's Valve Rehabilitation Project, and that the Project's design and  construction is properly coordinated with the necessary regulatory agencies, including FERC; and

WHEREAS, the Irrigation Districts have previously entered into a Power Purchase and Sales Agreement with the City of Seattle ("Seattle PPA") concerning the Irrigation District's Lucky Peak Power Plant Project, a copy of which has been delivered to and reviewed by LMUD.

NOW, THEREFORE, the Irrigation Districts and LMUD agree as follows:

SECTION 1. DEVELOPMENT AND ENGINEERING SERVICES

HPB Hydroelectric Inc. and Trans-Tec Consulting Inc. (collectively "HPB") are performing development work for the Project. The Arrowrock Project is licensed for a 60 MW of electrical energy. The development proposal from HPB is to design and develop a project of approximately 30 MW's capacity. (HPB also has agreed to study the development of certain Lowhead hydroelectric projects on canals operated and maintained by the Irrigation Districts but unless otherwise agreed such work is not considered part of LMUD's development cost sharing obligation under this MOU). the outcome of this development work by HPB will be to establish a plan for construction of a generating facility of approximately 30 MWs capacity at the Project to determine the annual output of such facility, an d to provide an engineer's  estimate of cost of construction and all operation and maintenance costs and all debt service costs associated with the project. This development proposal meets certain of the needs of LMUD. Additional Development work and costs incurred or to be incurred beginning January 1, 2001 include an Idaho Power interconnection study (estimated $10,000), McCreedy Consulting, coordination of the Project with the Bureau of Reclamation Valve Rehabilitation Project, Bureau of Reclamation review of HPB plans, costs of compliance with the modification of FERC license requirements, and other costs to be determined as the development proceeds.

Therefore, LMUD and the Irrigation Districts agree that they shall evenly share, on a 50/50 basis, the DEVELOPMENT work and costs (exclusive of the Lowhead work) described above. The Irrigation Districts shall undertake the initial responsibility for payment of the Development work and costs described above as they are incurred. LMUD shall pay the Boise Project Board of Control, as operating agent for the Irrigation Districts, within 30 days of the date that the payment is made and copies of invoices (as well as a copy of the work product or a description of the work done and invoiced) is provided to LMUD, its 50% share of all such costs paid by the Boise Project Board of Control or the Irrigation Districts on behalf of the Irrigation Districts. LMUD and the Irrigation Districts agree that neither shall be obligated to expend more than $150,000 each for the Development work and costs. If the costs necessary to bring the Project into development, from January 1, 2001 forward, exceed a total of $300,000, LMUD and the Irrigation Districts shall either negotiate an appropriate sharing of costs which exceed $300,000, or shall have the option of terminating this Memorandum of Understanding

SECTION 2. POWER PURCHASE AND SALE AGREEMENT

 The Irrigation Districts and LMUD agree to expeditiously proceed to negotiate a power purchase and sale agreement ("PPA") with substantially the following terms, using the Seattle PPA as an outline or guide:

( a ) The parties will enter into a long-term power purchase and sale agreement for the term of the FERC license to the year 2039, with a form of renewal or right of first refusal to be negotiated by the parties, if the FERC is extended or renewed or if the Project is reticence. 

( b ) LMUD shall purchase all of the surplus output of the Arrowrock Project, for the duration of the agreement. Surplus output shall be treated in this PPA similar to the way it is treated in the Seattle PPA.

( c ) The parties will discuss the purchase and sale of the surplus output from the Lowhead hydroelectric projects. More information must be exchanged before the parties can agree on an approach to the Lowhead hydroelectric projects, their costs and the HPB study costs incurred by the Irrigation Districts. 

( d ) It is currently contemplated that LMUD will issue the required bonded indebtedness necessary to finance the construction of the Project. The Irrigation Districts also may issue bonds to finance the construction of the project. Funding must be consistent with FERC's licensing requirements. In any event, LMUD shall pay, directly or indirectly, (1) all bonded debt service (including all other fees, costs and reserves required by the bond indentures) for the Project and (2) all O & M (operating and maintenance) costs (including, but not limited to) costs in addition to (1) above, such as payroll, fees taxes and insurance. A reserve fund shall also be established either through the bonded indebtedness or through additional payments by LMUD in an amount to be determined by the parties. The reserve fund monies shall only be used for the purposes set forth in section (f) below. The reserve fund monies shall at all times belong to LMUD subject to their restricted use and purpose. At the end of the term of this Agreement or at the end of term of any Agreement entered into upon renewal or extension of the FERC license, whichever, is later, any monies remaining in the reserve fund shall belong to LMUD. 

( e ) In addition, LMUD will pay the Irrigation Districts a royalty payment of "10" mils/kwh of net output metered at the delivery point. The PPA shall provide that the amount of the royalty shall be adjusted upward or downward pursuant to a formula similar to that found in section 4 ( c ) of the Seattle PPA using the estimated project cost, from the engineers' estimate. The gross royalty amount derived from the formula shall remain constant during the initial  term of the PPA and shall not be readjusted upon satisfaction of the debt service.

( f ) Extraordinary repair costs i.e., those not budgeted in the O & M budget will be paid out of the reserve fund, which will then be replenished by LMUD's subsequent payments. The parties will endeavor to insure against such extraordinary repairs to the maximum extent practicable.

( g ) When the initial term of the PPA is reached, LMUD will continue to pay the costs of operations and necessary repairs and improvements, and the royalty payments made by LMUD for an subsequent term will be increased by an amount sufficient to recognize changes in market price of electrical power at that time and by such additional amount as is appropriated given the fact that there will be little or no debt service on the Project in any subsequent term of the PPA. If the parties cannot agree on a royalty, they will submit the royalty computation for the subsequent term to binding dispute resolution using a dispute resolution process similar to that set forth in Seattle PPA.

( h ) LMUD will provide the necessary guarantees to the lenders or bondholders that the bonded indebtedness, the O & M costs of the Project and the reserve fund obligations will be secured by LMUD or LMUD payment obligations, to ensure that the financing will be nonrecourse as to the Irrigation Districts and that the Irrigation Districts property and assessments are not subject to liens and claims.  

( i ) LMUD arranges for transmission of power from point of delivery (Arrowrock/Idaho Power substation) to LMUD and pays all costs associated with transmission.

( j ) LMUD is entitled to resell, trade or exchange any or all of the power received and is entitled to retain all benefits from any sale of excess power to any other  users, but shall do so in a manner that does not jeopardize the tax-exempt status of the bonds and so that the Irrigation Districts and LMUD are not in default on any bond obligations. 

( k ) The Project may be operated in a peaking mode, but all power production is subject to the release of water for irrigation purposes, under the terms of the FERC license.

( l ) The funds which will be made available to the Irrigation Districts to fulfill their obligations under the Power Purchase Agreement shall be strictly limited to those revenues actually received by the Irrigation Districts from the sale to LMUD of surplus electrical energy from the project. None of the assessments or other revenues received or to be received by the Irrigation Districts in payment for relating to irrigation water supplied for the purposes of operating the Irrigation Districts maintaining, operating, constructing, reconstructing, repairing or acquiring irrigation facilities or for the payment of obligations of the Irrigation Districts incurred to finance the construction or acquisition of irrigation facilities shall be utilized or available for payment of any of the Irrigation Districts obligations contained in the Power Purchase Agreement, nor shall the Irrigation Districts be required to exercise any statutory assessment authority as a result of the Power Purchase Agreement, nor shall any lien be established upon any lands within the Irrigation Districts as a result of the Power Purchase Agreement.

Under Idaho Code 43-2305, the Irrigation Districts are required, before entering into indebtedness for construction of a hydroelectric Project or before executing a Power Purchase Agreement, to obtain approval of the form of the agreement from their Board of Directors and submit the indebtedness and the Power Purchase Agreement to a vote of their qualified electors. Authorization of the indebtedness and Power Purchase Agreement by a 2/3 vote of the qualified electors of each Irrigation District is a condition precedent to a valid Power Purchase Agreement.

LMUD, in order to enter into a binding power purchase agreement must obtain approval of its Board of Directors by resolution.

SECTION 3. REIMBURSEMENT OF DEVELOPMENT COSTS FROM PROJECT                      FINANCING

If  LMUD and the Irrigation Districts enter into a PPA for the Project, and financing is obtained to build the Project, the Irrigation Districts, the Board of Control and LMUD shall be reimbursed, to the extent available from the bond proceeds, for the costs paid by the Irrigation Districts and LMUD to develop the Project, with interest at 8%, from the date of payment. The Irrigation Districts shall have no obligation to reimburse LMUD for any development costs. If Project financing is not obtained which is sufficient for the entire costs of Project's development, design and construction, the Irrigation Districts and LMUD shall have not rights to reimbursement of any such expenditures from one another except as described in Section 1.

SECTION 4. TERMINATION

LMUD shall have the right to terminate the MOU and payment for any further development and engineering services, upon giving written notice, if in its option the Project cannot effectively meet the terms of the FERC license, or if, the engineers estimate exceeds $32.5 million. Any notice of termination shall not relieve LMUD from its obligation to pay any costs which accrued or were incurred prior to the date of the Irrigation Districts receive LMUD's Notice of termination. 

The Irrigation Districts have the right to terminate the MOU if LMUD fails to make payments required hereunder or if LMUD cannot demonstrate the legal or financial ability to enter into a satisfactory Power Sales Agreement that will enable LMUD or the Irrigation Districts to finance the construction of the Project. 

Either party may terminate if FERC revokes or terminates the FERC license for the Project. 

SECTION 5. DEVELOPMENT COMMITTEE

The Irrigation Districts and LMUD shall appoint representatives to participate in a Development Committee, which shall review the progress of and make recommendations concerning the development, design and construction plans. The Development Committee shall jointly review the progress at lease monthly, and at such regular intervals as deemed necessary by the members and appropriate for the stage of development plans. The Development Committee shall have access at all reasonable times to all records, studies and data relating to the development plans.

SECTION 6. EXCLUSIVITY

LMUD and the Irrigation Districts agree to deal exclusively and in good faith with one another regarding this MOU and the Project while this MOU is in effect. The Irrigation Districts will not market power from this Project to any other buyer and LMUD will not seek to obtain the equivalent amount of capacity for its long-term needs from any other supplier during the term of this Memorandum of Understanding. except that LMUD may seek to establish agreements for sale, trade or exchange of power, as set forth in Section 2 (i) [sic   ( j ) ]

SIGNED

LMUD 

DON BATTLES, 8/9/01

BOISE-KUNA IRRIGATION DISTRICT, 8/16/01

NAMPA & MERIDIAN IRRIGATION DISTRICT, 8/21/01

NEW YORK IRRIGATION DISTRICT, 8/16/01

WILDER IRRIGATION DISTRICT, 8/16/01

BIG BEND IRRIGATION DISTRICT, 8/16/01

DOUBLE TALK BY NEW GENERAL MANAGER

"I believe this changes the approach of analyzing this project", Twitchell said during an Arrowrock update at the Thursday, May 1, LMUD Board meeting, "from one of analyzing it on an economic basis. As the economics of the project changed this board should analyze it based that it has now changed to the point that I think this board needs to do an analysis of what legal approaches they need to review and possibly take."

It you don't know what she just said, don't feel bad. Twitchell talks in nonsensical phrases. It may have something to do with the fact that she does not know what she is talking about and just makes up things when she's asked to speak or she has no experience and has nothing to offer LMUD as a general manager or  as anything else.  The KWH videos show Fred Nagel, George Sargent and Bill Stewart asleep during her meeting reports.   

KWH feels that it would be not only irresponsible to hire an additional attorney to find out why Frank Cady lied but criminal to allow this FARSE to go on another minute. What the ratepayers DO NEED is for the lies to stop. 

This LMUD Board immediately needs to terminate Mr. Cady's services. IMMEDIATELY.

Mr. Cady  gives the LMUD Board advice that gets them into legal trouble and then he sits back and laughs at all of us, because ALL OF THOSE FIRES HE STARTS HE GETS PAID TO PUT THEM OUT. 

LMUD meeting, June 26, 2003

Agenda Item 5, A1: Approval of  Minutes-June 5, 2003 regular meeting

 KWH objected to Agenda Item 4 a, of the 6/5/03 minutes. LMUD reports that Ms. Twitchell made the statement "Arrowrock MOU does not tie LMUD to construction of the facilities"

KWH admonished Ms. Twitchell about making such statements of untruth. KWH acknowledges that she had no part in writing this MOU but now has an obligation to read, understand and report the truth  about the MOU document. 

The Arrowrock MOU states: (all agreed to language  is binding in this contract)

"Section 2 (d) It is contemplated that LMUD will issue the required bonded indebtedness necessary to finance the construction of the Project." (See Termination section below)

"Section 2 (g) When the initial term of the PPA is reached LMUD will continue to pay the costs of operations and necessary repairs and improvements, and the royalty payments made by LMUD for a subsequent term will be increased by an amount sufficient to recognize changes in market price of electrical power at the time and by such additional amount as is appropriate given the fact that there will be little or no debt service on the Project in any subsequent term of the PPA."

"Section 4- Termination

"if LMUD cannot demonstrate the legal or financial ability to enter into a satisfactory Power Sales Agreement that will enable LMUD or the Irrigation Districts to finance the construction of the Project."

This Arrowrock MOU was signed by Don Battles on August 9, 2001. On June 30, 2001, LMUD announced an $8.7 million dollar loss and discussed hiring a bankruptcy firm. In December of 2002, LMUD hired a bankruptcy firm www.ckmwlaw.com. (more info below)

Mr. Cady stated at the Special LMUD meeting on 6/26/03 

"that until both parties sign an agreement, it is not binding", 

"The obligation of the Arrowrock agreement is conditioned on both parties deciding to go forward with it." 

"Neither side has made a decision to go forward with it."

REMINDER: 

 THE BOISE PROJECT BOARD OF CONTROLS AND LMUD DID NOT GO FORWARD WITH "ANYTHING" AFTER THE MOU WAS SIGNED. 

THE BPBC HAD A VALID LICENSE WHEN THE MOU WAS SIGNED. TWO YEARS HAVE GONE BY.............Nothing  ????? (thanks GM)

LMUD needs a competent attorney.   One minute the Irrigation District claims that the MOU has been terminated, then Wayne Langston claims that it was not terminated, now LMUD's legal counsel states that the Arrowrock MOU, that was signed illegally by LMUD's General Manager Don Battles and all of the Irrigation Districts was not   "Binding".  Where did Mr. Cady go to law school ?????

KWH will notify the Boise Project Board of Controls, since the BPBC has reported to FERC that LMUD had told them that the MOU is still in effect. KWH will also report this new development to FERC. Mr. Cady's statement will be given to them .....verbatim. 

THE BOISE PROJECT BOARD OF CONTROLS DID NOT PRODUCE A POWER PURCHASE AGREEMENT, DEVELOPER,  OR FINANCER BY THE MAY 25, 2003 FERC DEADLINE. 

JUST MORE PROMISES, 14 years of promises

LINK:     www.ferc.fed.us/ferris.htm.   The Boise Project Board of Control (Arrowrock Irrigation Districts) on May 23, 2003 provided FERC with the same promises to produce a power purchase contract, a developer and financing, but as usual could not provide any signed agreements.  The BPBC's response to FERC's request for additional information is available on the FERC website or "free" from KWH. 

Frank Cady provided the BPBC with recently (?) acquired letters regarding Wayne Langston's position on the Board. We are attempting to understand the motive behind putting all of these letters together for the BPBC. Was it an  attempt to discredit KWH. KWH's Motion to Intervene was totally based on LMUD minutes, BPBC documents and FERC documents. The BPBC apparently could not attack their own documents, LMUD's minutes and federal and state agencies past concerns. 

LMUD's recent press releases, on Arrowrock, do not indicate any commitment to Arrowrock. KWH has placed all of LMUD's press releases on the FERC website. 

The BPBC included only a reference about LMUD, in their comments to FERC. Cady apparently has recently provided the Irrigation Districts with another "timely" letter to help them with their final request for an extension. Now, the BPBC claims that the MOU between LMUD and the Irrigation Districts has been recently reconfirmed.  It now appears that LMUD may have ended the MOU and not the BPBC. The Feasibility Study will disclose the truth. (the MOU  and KWH's Motion to Intervene is provided, in their entirety, below)

The BPBC included only a reference about LMUD, in their comments to FERC. Cady apparently has recently provided the Irrigation Districts with another "timely" letter to help them with their final request for an extension. Now, the BPBC claims that the MOU between LMUD and the Irrigation Districts has been recently reconfirmed.  It now appears that LMUD may have ended the MOU and not the BPBC. The Feasibility Study will disclose the truth. (the MOU  and KWH's Motion to Intervene is provided, in their entirety, below)

KWH will acquire the Arrowrock "Feasibility Report". KWH is forced to go to court to get this document, but we will get it. Cady has fattened his bank account by denying the public the Arrowrock documents.