Apr. 12--LYONS FALLS -- A provision in the proposed state budget that could negatively affect the Tug Hill wind farm's second phase may also put the Lyonsdale wood-fired cogeneration plant in jeopardy.

A community rally and press conference will be at 10 a.m. today at the 3823 Marmon Road plant "to urge New York state officials to approve various rules that would keep the Lyonsdale plant from closing," according to a release from E-3 Communications Inc. of Buffalo and Albany, which is representing Lyonsdale owner NGP Power Corp. of Irving, Texas, and other renewable energy producers.

Included in the budget bills passed by the state Legislature on March 30 is a provision that would give state lawmakers control of money the New York State Energy Research and Development Authority receives under the direct oversight of the Public Service Commission. That money includes $150 million raised annually by the System Benefits Charge, which is included in electric bills and used for energy research programs.

The concern is that such dedicated funds, some granted as long- term incentives to renewable energy producers, could be appropriated elsewhere by lawmakers. A commission spokesman has said that the legislation could affect whether the SBC program is extended beyond 2006.

Earl V. Wells III, president of E-3 Communications, said he hopes the rally will influence decisions made by the Public Service Commission at its meeting Wednesday morning, adding that some of NGP's concerns involve the application process for "hardship status" funding. However, he declined to be more specific, noting that the "nuances" will be explained by NGP President Eric L. Spomer at the rally.

Maggie Duffy, director of public relations and public affairs services for E-3 Communications, said that investors in the Lyonsdale project have indicated they may pull out by the end of the month if their concerns are not allayed.

"Their investors need to be ensured that they can remain operational," she said. "Lyonsdale just needs that firm commitment from the state."

NGP on May 30, 2003, purchased the financially strapped Lyonsdale Power Co. from Primary Power Management and Development of Ithaca, Mich. Since then, the company has operated the 19-megawatt plant under the name Lyonsdale Biomass.

According to the NGP Web site, the Lyonsdale facility employs 20 full-time workers, and up to 100 loggers provide the plant with more than 260,000 tons of wood products annually. The plant produces electricity for delivery to the New York Independent System Operator and exports steam to the neighboring Burrows Paper Corp. plant.

Also scheduled to speak at the rally are Plant Manager David M. BonDurant, Lyonsdale Town Supervisor David F. Rounds, Lewis County Economic Development Coordinator Dianna M. Pell and Carl S. Golas, a wood products industry specialist at the Adirondack North Country Association.

Patrick A. Doyle, director of development for Zilkha Renewable Energy of Houston, Texas, has said the proposed state legislation could jeopardize next year's 75-turbine second phase of the Maple Ridge Wind Farm, which his company and PPM Energy of Portland, Ore., are beginning to construct in the towns of Martinsburg, Harrisburg and Lowville. However, the 120 turbines the company plans to install this year likely wouldn't be affected.

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