| FROM: | Alliance Energy Renewables, LLC | FOR IMMEDIATE RELEASE |
| CONTACT: | Jane E. Rubinstein Rubenstein Associates 212-843-8287 direct / 516-993-0708 cell |
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STATEMENT OF ALLIANCE ENERGY ON STATUS OF OGDENSBURG FACILITY
(New York, NY - August 23, 2007) - Alliance Energy, New York LLC ("Alliance") remains extremely interested in redeveloping the Ogdensburg facility. While no determination has been made to date, Alliance is considering various options including biomass and other biofuel alternatives. In 2006, Alliance performed an exhaustive performance test burning almost a quarter of a million gallons of clean biodiesel, while at the same time producing a zero increase in greenhouse gas emissions.
Before Alliance can pursue use of alternative fuels and site redevelopment however, it is actively seeking to resolve the ongoing financial and operational concerns with the State that were not concluded with the prior Administration. Alliance looks forward to working with the new Administration so that operational practices can be improved and facilities within the NYS St. Lawrence Psychiatric Center can be corrected to eliminate wasted energy that Alliance could otherwise use to produce clean renewable electricity.
Additionally, the State is contractually obligated to reduce its total steam burden. If the State would only comply with this requirement, the economic feasibility of redevelopment would be significantly impacted in a positive way. Throughout its fifteen-year history, the Alliance facility in Ogdensburg has expended more than $30 million in fuel costs in exchange for the lease of three acres on which the facility is sited. Once this one-sided burden is balanced, we will be able to unleash the potential present in the facility as an energy-generating model for alternative, environmentally innovative fuels, and for continued economic and job development.
Alliance is pleased that a mutually-positive settlement with the City of Ogdensburg has returned the facility to the public tax rolls, following the retirement of the prior PILOT (Payments in Lieu of Taxes) agreement. Alliance looks forward to continued amicable relations with the City and joint efforts in economic and job development.
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