Dear GREENEXPLORED readers I have been mighty quiet on Bloom Energy but this is because I have been working hard to gather evidence of alleged fraud by Bloom Energy and Delmarva Power against the customers of Delmarva Power in Delaware. My investigation has uncovered significant overcharges for natural gas beyond the maximum quantity of natural gas in the final permit application. I wrote to two Deputy Attorney Generals and the Attorney General of Delaware (Mr. Beau Biden) outlining the allegations today. Below is my letter that was faxed at 1:20 pm pacific time this 8th day of April 2014.
I will report on developments. To date Bloom has collected $41,628,118 in subsidies from the customers of Delmarva Power for the unreliable, dirty, and expensive electricity they sell from their 30 megawatts of Bloom Coffins in the state.
To Mr. Stephen McDonald
Deputy Attorney General
Department of Justice
State of Delaware
Fax 302 577 2496
With Copy to Attorney General Beau Biden also at Fax 302 577
2496
And with copy to Deputy Attorney General Ralph K. Durstein
also at Fax 302 577 2496
April 8, 2014
From Lindsay Leveen
Regarding Bloom Energy and Delmarva Power – Alleged Fraud
Against The Customers Of Delmarva Power in the State of Delaware
Dear Mr. McDonald:
Over the past several months I have collected evidence of alleged
fraud in the billing of electric power charges to the customers of Delmarva
Power. By this email you are requested to open a
criminal investigation into the alleged fraud committed by Bloom Energy and
Delmarva Power against the customers of Delmarva Power in the State of Delaware. The allegations of fraud are based on the
following irrefutable written evidence that is in the public domain and has
been gathered by me:
Each month towards the end of the month Delmarva Power
prepares a monthly filing for the approval by the Public Service Commission of
Delaware (PSC) of the Qualified Fuel Cell Provider Project Tariff. The latest monthly filing dated March 28, 2014
is attached and is referenced in this fraud allegation.
The calculation worksheet on the last page of the filing provides
the calculation of the amount of money (subsidy to Bloom Energy) Delmarva Power
will collect from its customers in Delaware.
On line 11 of the worksheet Delmarva Power lists a “heat rate”. This heat rate is the quantity of natural
gas used to generate a unit of electric power and is in millions of BTUs per
megawatt hour. As you can see from the
attached filing, this heat rate is 7.19 million BTUs per megawatt hour for the
month of June 2014 and 7.16 million BTUs per megawatt hour for May 2014. The heat rate is then multiplied by the unit
cost of natural gas to determine the amount of money Delmarva Power’s customers
will be charged for the natural gas used by the Bloom Fuel Cells. Delmarva Power acts as Bloom Energy’s agent
to collect money from customers and then gives the money collected from its
customers to Bloom Energy.
The General Manager of Bloom Electrons, Mr. William
Brokenborough, under penalty of perjury submitted a revised and final permit
application on January 13, 2012 to the Delaware DNREC. On February 10 2012 Mr. Colin O’Mara the
secretary of the DNREC wrote a completeness report on the subject of the Bloom
Energy project and accepted and affirmed the data provided by Mr. Brokenborough
in the January 13, 2012 final permit application to be complete and correct. Note the data submitted by Mr. Brockenborough
on January 13, 2012 were the final data submitted by Bloom prior to the issuance
of the permit by the DNREC.
I quote from Mr. Brokenborough’s January 13, 2012 Final
Permit Application Titled Revised Application To Construct, Operate, or Modify
Stationary Sources. Under Project Description he states “each fuel cell has a
base electrical output of 200 kw with a maximum natural gas usage of 1.32 MMBTU
per hour”. For your reference kw is
kilowatts and MMBTU per hour is millions of BTUs per hour. The front page of the January 13, 2012 final
permit application with this quote is attached for your reference.
For your reference one megawatt is 1,000 kilowatts. Therefore five Bloom fuel cells each of 200
kilowatts will generate one megawatt of electrical power. Five fuel cells will use five times as much
natural gas as one fuel cell. Therefore
per Mr. Brokenborough’s admission under penalty of perjury the maximum usage of
natural gas would amount to 5 times 1.32 million BTUs per hour per megawatt
which equals 6.60 million BTUs per hour per megawatt. Restated this is a heat rate of 6.6 million
BTUs per megawatt hour. The maximum
permitted quantity of natural gas to be used is therefore indisputably 6.6
million BTUs per megawatt hour.
Yet Delmarva Power and Bloom Energy have collected money each
month from Delmarva Power’s customers for a period of more than 18 months using
heat rates that exceed 6.6 million BTUs per megawatt hour which is the maximum
permitted amount. This is akin to
permitting a five story building but building a six story building and then renting
out an extra unpermitted floor. In a
nutshell Bloom operates beyond the permitted quantity of natural gas and correspondingly
Delmarva Power charges its customers beyond the permitted quantity of natural
gas. Using the data from the Delmarva
Power filing that is attached the May 2014 charges for natural at 7.19 million
BTUs per megawatt hour are a 9% overcharge compared with the permitted maximum quantity
of 6.6 million BTUs per megawatt hour.
Returning to the analogy of a building, if the owner of
building applied and received a permit for only a five story building but built
a six story building their occupancy permit would be terminated and they would
be forced to demolish the building.
Bloom’s operating permit for the subject power plant should be revoked
and all money illegally and fraudulently collected by Delmarva Power from its
customers should be returned. Bloom’s
power generation stations (Brookside and Red Lion) should be shut until such
time they can operate with only using a maximum of 1.32 million BTUs per hour
in each and every one of their fuel cells.
Their General Manager under penalty of perjury and in writing claimed
this quantity to be the maximum usage of natural gas in their final permit
application. Note the quoted statement
in the final permit application is “each fuel cell has a base electrical output
of 200 kw with a maximum natural gas usage of 1.32 MMBTU per hour”. Therefore each 200 kw fuel cell that Bloom
Energy has installed and operates must meet this threshold of natural gas
efficiency or remain shut. All 150 fuel
cells installed by Bloom Energy need to meet this requirement before they
should be allowed to continue to operate the power plants.
You must remember that increased natural gas usage means
increased CO2 emissions. The EPA has
ruled and the US Supreme Court has affirmed that CO2 is harmful to the health
and wellbeing of citizens. The Delaware
Department of Justice must uphold the laws of the land and must bring criminal
charges against Bloom Energy and Delmarva alleging the fraudulent operation of
a power plant and the fraudulent billing of charges to customers of Delmarva
Power who live in Delaware.
I can be reached at xxxxxxxxx on my cell phone or yyyyyyyyy on my home phone. Please note that
I and my newspaper the Tiburon Ark won First Prize for a Serious Column in the
National Newspapers Association 2013 awards for the greenwashing boondoggle
Bloom has perpetrated in Dealware. I
look forward to reporting to my readers that criminal charges alleging
fraudulent billing and operation of a power plant have been brought in Delaware
against Bloom Energy and its agent Delmarva Power.
As soon as these criminal charges are brought, I suggest
that a criminal investigation then begin into how the DNREC issued a
permit. We now have written evidence
that Bloom removed hazardous solid waste that contained sulfur in tanks from
the coastal zone.
Sincerely,
Lindsay Leveen
Attachments Delmarva
Power March 28, 2014 Filing with the DE PSC and Page 1 of the January 13, 2012
Revised Application to Construct Operate, or Modify Stationary Sources.
I anxiously await to see how this matter unfolds. Thank you for fortitude and willingness to expose green going/gone wrong.
ReplyDeleteKim thanks these gangrene guys have excluded real green folks from access to government funds. Their exposure will help clean up the environment and free up funds for honest folks with green projects.
ReplyDeleteBelow is my letter that was faxed at 1:20 pm pacific time this 8th day of April 2014qui tam attorney
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