NESCO terminates Sumas Energy 2
and Message from Chuck Martin

COMMENT: Hmm, wonder how much NESCO spent on SE2? Anything close to the $120 million or more that BC Hydro spent on GSX and Duke Point?

NESCO terminates Sumas Energy 2 project
http://www.piersystem.com/go/doc/19/113526/

- and appears in this excerpt to blame Canada for the failed project:

The termination of SE2 brings to an end a six-year regulatory process that began in 1999. SE2 received permit approval from the Washington State Energy Facility Site Evaluation Council (EFSEC) and then Governor Gary Locke in 2002. But in 2004 the National Energy Board in Canada rejected SE2’s license application for power lines that were essential for the plant.

March 28, 2006

Dear Friends and Supporters,

It is with deep regret that we inform you of our decision to terminate the SE2 Project effective immediately. In coming days, SE2 will withdraw its EFSEC permit and withdraw or cancel its other permits, permit applications, and project arrangements.

While we continue to strongly believe there is a need for facilities like SE2, and that there is a legal right to construct and operate such plants, discussions with City of Sumas officials convinced us that it is appropriate at this time to terminate the Project. The decision to terminate the Project is due in part to political uncertainties, the high cost of obtaining permits in today's regulatory environment, and to current market conditions, including the high cost of natural gas and the slowness of utilities to commit to future long-term power supplies.

We know that the $400 million construction project, the $5 million annually in local and state taxes, the permanent employment, and the much needed regional power supply that SE2 could have provided were important to all of us. We also know you understand that Sumas Energy 2 would have been the cleanest natural gas plant in the region. Because you share our concerns for both the Project and for the long-term economic welfare of this community, we wanted to let you know directly about our decision to terminate SE2.

Most of all, we want to thank you for your steadfast support as we have worked through this long and challenging process. Your strong encouragement, steady interest, and active involvement have helped immeasurably.

Thank you again for your support!

Sincerely,

Chuck Martin
Sumas Energy 2

http://www.sumasenergy2.com/