Jerry Forte
Has the time come to replace Colorado Springs Utilities CEO Jerry Forte?
That’s the question City Councilman Tim Leigh ponders today in his electronic newsletter.
“I’m still fuming over the Neumann contract with the Colorado Springs Utilities. I can’t figure out who thought this was a good deal,” Leigh wrote.
“Who should be held to account? Is it time to consider changes in leadership?” Leigh asked.
Here is the full text of Leigh’s newsletter:
I’m still fuming over the Neumann contract with the Colorado Springs Utilities. I can’t figure out who thought this was a good deal.
The underlying rationale for the decision is easy to understand. [Pay less-get more.] The ultimate business points aren’t as easily understood.
Nuemann was going to provide a robust, full-bodied technology and equipment that would clean Drake’s coal-fired power plant emissions, removing SOx, NOx, particulates and CO2 at ½ the cost of other, (readily available), solutions and we were going to receive sale commissions when he sold the elixir. Now he’s merely brewing Neumann-Lite, a solution for SOx only with significantly less cost savings; and there are no customers.
From Neumann’s perspective – this is a sweet deal. He gets all his costs covered plus 10%. And there is NO cap on costs and NO date-certain for installation. And, if we use his technology at the Nixon Power Plant, we pay him more! His contract becomes cost plus 15%! How wonderful it must be, to be a government contractor. (Remember fishing when you were young? It was always a good time – except for the fish.)
I’m not faulting Neumann for being clever enough to pull-this-off. I’m faulting CSU’s system-of-governance and those board members specifically who were driving it when the contract was contrived. There was no legitimate oversight then, nor is there yet.
Realize – Neumann had no buyable product – nor does he. [He does not yet possess a proven-scalable product!] And shame on us, because his contract clearly says “Statement of Work for Experimental Emission Control Systems”. Furthermore, even if Neumann had a proven technology, I’ve been told he didn’t have sufficient funding available to build or install without CSU. We’ve given Neumann a free-pass. And if his stuff doesn’t work, we’re the schlemiel.
Legitimate questions are:
The Neumann spend at Drake ($121,000,000) will cause about a 10% electric-cost rate-increase to the average consumer by 2015. And CSU is facing at a similar spend at Nixon’s coal plant by 2016 (another 10% rate increase); and a similar spend for Mercury Emission Monitors across the system by 2017 (another 10% rate increase). [10% + 10% + 10% = 30% electric cost rate increase by 2017.] It’s time to look for alternative solutions! . . . and there are alternatives!
I remember questioning the leadership and board at Memorial Hospital. (You may recall; I called for the CEO’s firing.) Of course, I was quickly thrown off that bus by many of my contemporaries for making that request. That was a brutal time when I learned you need thick-skin to play this game. Eventually, the MHS bus ran into a cathartic ditch emerging as the new CSU/MHS healthy-heath system. I’m at the same point with CSU with a special indictment of the Carver Model and the lack of oversight driven therefrom.
The CSU bus has left the road. . . That it has, is manifest by dissatisfied employee groups, a divided board and a community crying for greater accountability. It’s time for serious change at CSU and this Neumann situation proves the point.
Tim Leigh, I would value your opinion much more if you hadn’t been the sole person on council what wanted HealthOne to buy Memorial rather than lease to UCH. You voted AGAINST UCH in the beginning.
Now I will always have to wonder if your “opinions” are yours or if they’re based relationships you have/want with other parties.
Sure, you changed your tune on the Memorial deal after everyone yelled at you (and you realized you would lose your argument), but now I will always wonder about your motives.
Somehow, along the way, you became a politician. Which is a shame, because you usually bring up a lot of valid points….
We get the government we pay for – our part-time council guarantees a lack of oversight and rubber-stamping CSU staff recommendations.
Time to consolidate City and County councils, pay a full-time wage, and demand full-time oversight.
The Drake and Nixon power plants together provide more than half of the power for our community. Emissions control equipment is required by the EPA and State of Colorado to be installed on these plants or they cannot continue to operate.
The Neumann Systems Group technology has been thoroughly tested over the last four years. After detailed review of conventional technology options, we believe our partnership with the NeuStream technology is the least-cost way to comply with clean air regulations and keep customer rates low. Our partnership with NeuStream will cost ratepayers an estimated $100 million less than older/conventional technologies.
An independent evaluation of the NeuStream 20MW pilot system was performed by the Electric Power Research Institute (EPRI) of Palo Alto, CA during the extended run period from June through August 2010. EPRI is a highly respected independent non-profit company performing research, development and demonstration in the electricity sector for the benefit of the public.
The evaluation concluded that the S02 removal performance of the NeuStream ™ system met the design criteria of greater than 90% removal, and EPRI stated that the technology is ready for full scale commercial implementation.
Below are the dates that Utilities staff provided information to the Utilities Board about Drake and the NeuStream project:
Aug. 20, 2008 — Staff describes project, and original positive test results. Plans for larger scale testing.
March 18, 2009 — Update on NSG partnership, small scale testing, plans for larger scale testing.
June 5, 2009 — NSG project update, including projected costs and initial test results.
July 2, 2009 — Board given memo about power plant emissions control, EPA requirements.
Aug. 19, 2009 — Discussed high monetary commitment that will be needed for SOX and NOX regulations. Dr. Dave Neumann discussed success of 2 megawatt project. 20 megawatt project started.
Step. 25, 2009 — Board given memo about scrubber byproducts .
Feb. 17, 2010 — Discussed NSG as an example of public/private partnership.
June 4, 2010 — Board given results on 20 megawatt tests of NSG technology.
June 16,2010 — Board receives update about NSG technology. Discussion on positive testing results and whether NSG technology is accepted by the state.
April 20, 2011 — Update and discussion on NSG project operation and financial, regional haze standards.
June 22, 2011 — After City Council elections, discussion and tour of the Drake power plant, including NeuStream.
April 18, 2012 — Update on NSG project operations and financials, timeline, discussion for timeline.
May 16, 2012 — Update and discussion about the NSG scrubber operations and financials.
June 20,2 1912 — Drake retirement discussion, operations and financial analysis.
July 18, 2012 — Drake retirement analysis and NSG project. Vote to move forward with NeuStream at Drake.
More information about the community discussion about Drake can be found at: http://www.csu.org/residential/energy/Pages/drake.aspx
Dave Grossman
Colorado Springs Utilities
“I’m faulting CSU’s system-of-governance and those board members specifically who were driving it when the contract was contrived. There was no legitimate oversight then, nor is there yet.”
Tim? Really? Are you not one of the ones responsible for providing the “legitimate oversight”? As much as you flip-flop on votes, maybe the citizens ought to remove you from office and get someone into office to attend meetings who can understand the materials. You don’t seem like you’re capable of doing that.
How many times did Tim Leigh vote to move forward with Neumann Systems at Drake? Every time! If there is a problem with governance, he is a big part of the problem. But this is not about Neumann Systems, environmental issues, or facts… It is about power, control, land and money.
The real thing that should happen Tim is you should resign and immediately. You are a detriment to the the city and unethical person. Your only motive is that of a puppet of the mayor. You can not think for yourself and you do not have the intelligence to make a call on utilities as you said yourself. You are not competent. Why don’t you just disappear I am sure after you resign Bach will find some other dirty work for you to do.
This man never should have been hired in the first place and should have been terminated years ago.
Tim has referred to himself as a cone head. Or, that a cone head can stand in for him at the Council meetings.
So there you have it from the horses mouth.
Lilithia
Daniel – I am disappointed in you for “stirring the pot.” This is just another lame attempt to get the “public” riled up about something going into the 2013 municipal elections.
RMS,
I’m sharing information with the public that one of their elected officials wrote about a $1.1 billion city enterprise and its CEO.
When did sharing information become a bad thing?
Daniel
Sharing information isn’t bad, becoming a mouth piece for the Mayor and other elected officials that have not pissed you off is.
Rick,
This is probably the first time anyone has accused me of being a mouthpiece for the mayor. Thanks for the laugh!
Daniel
Daniel keep “stirring the pot”, get a bigger spoon. No get two big spoons.
You do the bidding of Wayne who never sides against the Mayor.
Daniel,
Many people have accused you of just being a mouthpiece for the mayor, they just don’t waste their time posting on your blog. This entire paper is simply a mouthpiece for the mayor. If I ever read an article from the Gazette that actually fit into the category of objective journalism that’s not originally from the AP, I think I would fall out of my chair.
The Gazette is anything but objective. They are not unbiased in their reporting at all. The few reporters that are left need to stand up to management and do some real reporting and stop basing their reporting on whatever political inclinations that management has.
I hope the new publisher FIRES ALL CURRENT MANAGEMENT (and several reporters) at the Gazette, and turns this newspaper around and into something that community can be proud of.
Tim Lees only concern is getting re elected and being part of the Mayor’s group. Lee hasnt followed through on one project. Ponds arent filled, bike sharrows arent finished. Everything he has promised has been paid for by GE Johnson who has a contract with the City and CSU. He has changed his voting position to many times to count. Lee has admitted to not being smart enough to be on the utility board, has admitted to voting on CSU matters without knowing what he was voting for, and he is part of the secret meeting Steve Schuck arranged to keep ratepayers in the dark about what is going on.
dishin drama is all the Gazette cares about. Let the well paid staff at City communications tell the City how great Mayor Bach is and you fellas keep it objective. BTW, how many people does the Mayor have working for him in his office?