The Department of Energy guaranteed a $43 MILLION loan for Beacon Power which has just entered bankruptcy. The guarantee became effective in 2010 – supposedly worthy of $43 MILLION from the American people, and yet a year later the company is already in bankruptcy. Apparently, our highly paid Liberal government hacks at the Department of Energy know nothing about reading balance sheets or…the loan was a way for Obama to pay back donors. Beacon executives and board members did donate to Obama and for every dollar they gave, they got $17,200 back.
Beacon Power Corp., which develops energy storage systems, filed for bankruptcy protection in the U.S. Bankruptcy Court in Delaware.
Beacon Power had received a federal loan guarantee to help build an energy storage plant in Stephentown, N.Y., that began operating in January. The Treasury Department’s Federal Financing Bank provided the loan.
Beacon sought bankruptcy protection two days after the White House ordered an independent 60-day evaluation of the Energy Department’s loan programs aimed at ensuring effective management and monitoring.
In the words of The Hill writer Ben German, when the bankruptcy of Solyndra was revealed after a $535 MILLION loan guarantee, “a torrent of GOP-led attacks on the Energy Department’s loan guarantee program.” Isn’t that telling? Only the GOP objected? There isn’t an ounce of integrity among Democrats in Congress, in fact, the Democrat Party of California is listed as a Solyndra creditor. Solyndra executives raised hundreds of thousand for Obama and the Democrat National Committee (DNC).
The company drew down $39 million of that loan for a $69 million energy storage plant in Stephentown, New York. But the Energy Department says Beacon Power’s woes aren’t quite as bad as Solyndra’s: The New York plant is still running despite the bankruptcy, marking a contrast to Solyndra’s shutdown.
And unlike Solyndra, the first debt Beacon must pay off is to the government, the department notes. Among the reasons for the bankruptcy are Energy Department financing rules, Beacon’s delisting on Nasdaq, and “the current political climate,” the company says.
A couple of days ago, Keith Koffler at The White House Dossier said the Federal Energy Regulatory Commission approved a regulation allowing electricity storage “such as Beacon to receive incentive payments.” Sounds like a loophole to me, but I’m listening. Nope, don’t hear a single Democrat decrying it.
The Daily Caller says Beacon Power executives and board members are closely tied to Harry Reid and other Democrats. Beacon Power Corp donated to Obama and their return on that investment is $17,200 for every dollar donated – and they donated zero to Republicans.
According to the Center for Responsive Politics, Beacon Power president and CEO F. William “Bill” Capp donated $500 to Obama’s presidential campaign. He also donated to Democratic Massachusetts Rep. Niki Tsongas, and to the failed Massachusetts Senate campaign of Democrat Martha Coakley, whom Republican Scott Brown defeated in a special election for the late Sen. Ted Kennedy’s open Senate seat.
Beacon government relations director Matthew E. Polimeno donated $750 to Rep. Tsongas and $250 to Coakley. Beacon Power CFO James M. Spiezio also donated $250 to Coakley.
Through their companies, these donors were rewarded with $17,200 of Energy Department funds for every dollar they donated to Democrats.
We can only guess how many ludicrous loans the Obama administration has made. So far we possibly have taxpayers on the line for Beacon Power, Solyndra, and Tonopah Solar, totaling $1.325BILLION