another energy company goes bankrupt, $39 million borrowed from taxpayers - energy storage companies

An energy company secured a loan guarantee of $43 million through the same federal project that supported Solyndra, which followed the path of bankruptcy solar and filed for bankruptcy.
Beacon Power Corporation filed for bankruptcy in the United States on SundayS.
Delaware bankruptcy court
The company has developed an energy storage system based on the so-called "flywheel" and has obtained 20-
MW energy storage plant in Stephen town, New YorkY.
In August 2010
The loan is expected to pay the largest share of the $69 million program, one of several projects developed by Beacon across the country.
But the company's CEO said in a statement to the court that all these projects are "capital intensive" and that the company is trying to attract the additional investment needed to keep everything running.
The fact that the company faces elimination
He said listing from Nasdaq did not help.
Ceo f. "At present, the income generated by operations . . . . . . Insufficient to fully support the operations of these operations, the current operating losses of the debtor
William Cappe said in a court statement.
"In addition, the current economic and political climate, the Ministry of Energy and the financing terms recently canceled by Beacon
NASDAQ's listing notices together severely restricted Beacon's access to additional investments through the stock market.
"Massachusetts-
A factory based in the town of Pa Hazle also received $29 million in grants from the Department of Energy and Pennsylvania through separate projects.
Beacon Power Corporation has yet to respond to a request for comment from FoxNews. com.
Filing for bankruptcy comes as lawmakers are digging into billions of dollars in federal loan guarantees for alternative energy companies, including solindra.
The Obama administration also launched an investigation. Rep.
Morgan GriffithVa.
He is a member of the energy and business oversight subcommittee of the House and is responsible for investigating the project. He said the news about the Beacon Power supply was disturbing.
"We are very, very concerned about the loans and many other loans that the energy sector has provided over the past few years," he told Fox News on Monday . ".
Griffith says there are many companies in the United States. S.
This will bring "good prospects" to the help of the federal government, but the commission's investigation is trying to find out if the government is "just trying to get the money out of the door ". "Sen.
Jeff Sessions. Ala.
Senior members of the Senate Banking Committee say the disclosure of bankruptcy is another example of "reckless misuse of taxpayers' money for green work.
He also said nepotism was involved in the decision to provide loans to Beacon.
One of the most controversial aspects of the Solyndra case ---
In addition to the size of the guarantee of $0. 535 billion ---
It was a decision earlier this year that private investors took precedence over taxpayers in the event of bankruptcy.
Republicans have accused the government of giving priority to investors in companies that are also supporters of Obama.
"Like Solyndra, the head of Beacon Power seems to be a supporter of President Obama," Sessions said in a statement . ".
"We are moving more and more away from the capitalist tradition to a system where most Americans follow the rules and some people are able to manipulate the games that are good for them.
The real divide is not based on income distribution, but on politics --
Connection and those-
Whether it's a business or an individual
They just want the freedom to make a living.
But a spokesman for the Department of Energy said the agreement with Beacon included "many protections for taxpayers" and that the government was the only "senior secured lender" in the project ".
"Protecting taxpayers' money remains the secretary's top priority (Steven)
Spokesman Damien LaVera said in a statement.
"The department's loan guarantee is provided for the project of Steph town Regulatory Services LLC, not for the parent company, the way the loan is set up is to ensure that the department is not directly exposed to the liabilities of the parent company.
LaVera noted that "the New York factory that operates and generates revenue" is a "valuable collateral" for the company when it enters bankruptcy proceedings ".
"Under the terms of our loan guarantee agreement, Stephentown Regulatory Services LLC currently has cash reserves and the plant proceeds required as collateral for loans," LaVera said . ".
According to court documents, the company owes the government $39.
1 million of the loans-although it has the right to borrow up to $43 million.
LaVera said the company did not borrow in full due to insufficient factory budget.
When the project was approved, DOE reported that loan guarantees would help to save or create 14 permanent jobs and 20 construction jobs.
Capp emphasizes in court documents that there are many positive factors in the company.
After spending $0. 2 billion on "R & D" and having won nearly 30 patents, Capp said the company's "long term
Strong long-term prospects.
He said that the company's "engineering and other technicians are very good" and can produce "niche" products that the market needs.
He also pointed out that a recent decision by the Federal Energy Regulatory Commission will enable grid operators to pay more for faster services ---
Beacon's system "responds in seconds" and it should allow the company to "earn significantly increased revenue" in this way ".
Energy Department spokesman Dan Leistikow also cited FERC's decision to promote lighthouse loan guarantees on Monday on the DOE blog.
The decision will help the company generate more revenue, he said.
Leistikow defended the decision in support of Beacon, saying the company is trying to solve the problem of insufficient energy storage in the United StatesS.
This is a weakness in the country's power grid.
"Even with a slight increase in energy storage capacity in the United States, our system will be more flexible, stable and reliable," he said: "played an important role in our overall efforts to reduce costly power outages every year. ".
"A promising new technology for dealing with the present --to-
The instantaneous fluctuation of our power grid is the flywheel energy storage.
He said, "freewheels, as developed by Beacon," spin them faster by using electricity and "charge" by using a flywheel to rotate the turbine and generate electricity ".
He described the lighthouse plant as a "shock absorber" for the grid and said it was the first such plant in the world.
He also noted that, unlike Solyndra, factories funded with the help of the Department of Energy are still operating.
The campaign's financial records show that senior officials at Beacon contributed to the Democratic candidate.
Apparently, he was a supporter of Obama and gave him at least $500 in 2008.
He also contributed to the representative.
Niki Cong Gus, D-Mass.
Since 2008, Beacon employee Matthew Polimeno has donated $750 to tsong's campaign, donating $250 to the defeated Massachusetts Democratic Senate candidate, Martha corkley.
Chief financial officer James Spiezio also donated $250 in the 2009 Coakley campaign.