Disconnect Notice: Pleasants Power project at center of campaign finance, state loan controversy
Quantum Leap: Unraveling the Mysteries of Pleasants Power Plant's Transformation
The former Pleasants Power Plant has undergone a remarkable transformation, now known as Omnis Pleasants. However, this transition has not been without controversy, as public documents reveal potential ethical concerns surrounding the acquisition of the plant, the pursuit of taxpayer-funded loans, and the involvement of a political action committee that benefited a West Virginia economic development official's campaign. This in-depth investigation delves into the complex web of allegations and uncovers the intriguing story behind the plant's new chapter.Uncovering the Quantum Leap: A Transformative Journey
Acquisition and Expansion: The Pleasants Power Plant's New Owners
Omnis Fuel Technologies, a subsidiary of Omnis Global Technologies, finalized the purchase of the Pleasants Power Plant a year ago, acquiring the facility from Texas-based ETEM, which had planned to demolish the mothballed plant. The Federal Energy Regulatory Commission approved the transfer of the merchant coal-fired power plant on July 24, 2023, with the sale being finalized on August 1, 2023.The new owners, led by Santa Barbara businessman Simon Hodson and his family, have ambitious plans for the plant. They aim to build Hodson's patented "quantum reformers" on nearby property, a process that burns coal through "ultra-high temperature pyrolysis separation." This process, according to the company, creates two byproducts: graphite that can be used for various manufacturing processes and hydrogen, which can be pumped into the Pleasants Power Plant for electricity generation.Navigating the Legislative Landscape: The Role of Senate Bill 609
The passage of Senate Bill 609 on March 6, 2023, played a crucial role in the acquisition of the Pleasants Power Plant. The legislation required companies to obtain approval from the state's Public Energy Authority before decommissioning or demolishing power plants. This created pressure on ETEM to sell the plant instead of proceeding with its planned demolition.Former Senate President and Republican lawmaker Bill Cole, who has financial interests in other Hodson-owned companies in the state, was one of the individuals working to advocate for the passage of SB 609. During a meeting of the Public Energy Authority, Hodson acknowledged that without the requirements of SB 609, there would have been no way to purchase the Pleasants Power Plant.Securing Funding: The Million Loan and Potential Controversies
More than two months after the announcement of the plant's restart, the state Economic Development Authority (EDA) held an emergency meeting on November 9 to grant preliminary and final approval for a million loan to Quantum Pleasants, the entity operating the Pleasants Power Plant. The loan, with a 30-month term and a 1% interest rate, was intended for the expansion and retrofit of the plant, as well as to increase employment from 160 to 600 workers.According to the loan agreement, a portion of the million loan will be used to purchase between 30 and 60 acres of land adjacent to the Pleasants Power Plant. This land will be used to build a demonstration facility for the quantum reformer technology, an air separation unit, and space for additional quantum reformer units.However, the loan application process has raised some concerns. A former company official, Michelle Christian, has accused Hodson of making false representations to state and federal officials in order to secure the million loan. The company has denied these claims in response to Christian's federal civil rights lawsuit.Navigating the DOE Loan Program: Challenges and Uncertainties
In the loan application, Omnis Fuel Technologies claimed to have applied for a U.S. Department of Energy (DOE) Title 17 Clean Energy Financing loan. However, according to a Wall Street Journal article, Hodson was seeking 0 million through the DOE Title 17 program, but the company was told in March that it did not qualify due to not meeting the minimum requirements for a clean energy demonstration project.The loan agreement between Omnis and the West Virginia EDA states that Omnis is required to "promptly and continuously pursue the DOE application" and is prohibited from stopping that pursuit. A DOE spokesperson declined to confirm or deny the identity of applicants, leaving the status of Omnis's DOE loan application unclear.Raising Funds and Influencing Elections: The Role of Conservative Policy Action
Another aspect of the Pleasants Power Plant saga involves the activities of a federal 527 super political action committee (PAC) called Conservative Policy Action. According to the PAC's campaign finance reports, the first two donations it received were ,000 each from BC Holdings LLC, owned by Bill Cole, and Aumon Corp., whose CEO is Randall Smith, the CFO of Hodson's Omnis companies.Conservative Policy Action went on to spend more than 0,990 – over 70% of its total donations – in support of Kris Warner's Republican primary campaign for secretary of state, opposing his opponent, Doug Skaff. This raised concerns about potential conflicts of interest and the influence of Omnis-related entities on the state's political landscape.While the company denied any involvement in the donations made to Conservative Policy Action, the connections between the individuals and entities involved have sparked questions about the transparency and propriety of the entire Pleasants Power Plant project.As the Omnis Pleasants project continues to unfold, the complex web of allegations, political maneuverings, and financial entanglements surrounding the former Pleasants Power Plant has captured the attention of the public and regulatory authorities. The transformation of this once-mothballed facility into a hub of technological innovation and energy production has become a story of intrigue, raising important questions about the ethical boundaries of business, politics, and the pursuit of progress in West Virginia.
