“Didn’t we do this yesterday? Don’t mess with me, porkchop! What day is this?" Bill Murray-Groundhog Day

Well ... Here we go again .... As if the lessons of 38 Special weren't still clear, like an Anvil from the Acme Corporation

From the Fine Folks @ The Providence Journal ....

By Kate Bramson

kbramson@providencejournal.com

PROVIDENCE, R.I. — An early-stage company, rTerra PV Solutions, won final approval Thursday from a subcommittee of the Rhode Island Commerce Corporation for a $300,000 loan from the state’s Renewable Energy Fund.

The company, which is headquartered in Middletown, expects its flexible mounting system for solar panels can lower material and labor costs for installing solar panels.

The loan was approved by a unanimous vote of the corporation’s access to capital subcommittee, according to Oscar T. “Tim” Hebert, a member of both the corporation’s board of directors and its subcommittee. The subcommittee met in an executive session with a company executive Thursday morning to go over issues that arose at the last Commerce Corporation meeting, which was Jan. 27, Hebert said. The committee was satisfied that company executives are committed to investing in the company and remaining here in Rhode Island, Hebert said.

The loan will be paid out of the state’s Renewable Energy Fund, which is funded by a renewable energy surcharge of $0.0003 per kilowatt hour on electricity used by customers in Rhode Island. The company had applied to the fund’s “early-stage commercialization program,” which is intended to encourage the development of “emerging technologies in the renewable energy space.”

In a Providence Journal article dated January 28,

"Loan repayment would trigger once the company has positive cash flow for six consecutive months, according to the Commerce Corporation. The company forecasts that would be by July 1, 2015."

And if that never happens? Besides, its Solar Power ... What could possibly go wrong? Ask the Feds about Solyndra ... or the State of Massachusetts re: Evergreen Power ... I've listed a link below from Greentech Media which will give you a complete picture of the "Green Space"

My Objections:

Government should not be loaning\investing money to private industry, period. We continue, as a nation, to  privatize success and socialize failure through the use of taxpayer funded "investments" in private ventures. This is (very) thinly disguised crony capitalism.

• Private Equity exists to fulfill the role of market driven investments. If the technology is attractive, sufficient private capital exists to fund its growth
  
• Rhode Island State Government simply does not have the smahts, or the talent, to be an appropriate judge of investments ...
• And Rhode Island State Government should not be picking winners and losers using taxpayer money as risk capital
• As seems to be the EDC's MO, 300,00$ is the maximum investment allowed by the governing regulations (Sound Familiar?) And doesn't everyone always qualify for the Max?
  
• It appears that there will be little or no transparency as to the specifics of the arrangement, as in, the underlying financials, personal guarantees, board representation, etc At the time of submission, I have been told that a formal written request must be submitted for evaluation to the EDC RI Commerce. Prior history would suggest that this request will be denied ... Witness the "Executive Session" where the final decision/analysis was reached. More on this to come ....
  

Finally, the RI EDC\Commerce Commerce Commission has proven itself to be tragically incapable of successfully investing in private industry ....

So I repeat my mantra from the early days of 38 Special ... No Equity, No Board Seat, No Personal Guarantee .... No Future


Some Important Links ....

2013 RULES AND REGULATIONS FOR THE RENEWABLE ENERGY DEVELOPMENT FUND PROGRAMS
GreenTech Media: Failed Solar Companies
EcoRI News Article
January 28 Article - Providence Journal
February 6 Article - Providence Journal

One of my favorite sources for local news is GoLocalProv.com ... I'm there constantly. Like any pathological relationship, however, I am spurred to emotional highs and lows ... They are a great source of local reporting ... They are a wonderful example of new media ... Equally inspiring is GoLoco's local entrepreneurial flava'. And while their Who's Hot and Who's Not political column has the potential to keep me awake Friday nights, GoLoco has proven to be a wonderful example of what can happen when the Media "Gets Their Mission" ...

(Full Disclosure: GoLoco was kind enough to post an article I penned last month on the "State of Rhode Island Talk Radio")

With all of that in mind, I find myself repulsed by their choice of "Company of the Year"....My initial response, as posted there ...

I would enjoy hearing what all of you have to say ...

"Twin Rivers has been nothing less than an economic disaster for Rhode Island ... Hundreds of millions of dollars are drained from the economy of Rhode Island annually, all to feed the beast of Rhode Island State Government .. Rhode Islanders effectively subsidized the purchase of the Biloxi Casino ... And with the promise of Massachusetts competition on the horizon, watch this "hometown" company gradually wean themselves off  of their Lil Rhody Dependency within the next 2-3 years .... Probably to move their offices, and their Rhode Island blood profits, elsewhere ...

Government should never profit from games of chance, foisted upon an undereducated audience, with the imprimatur of government approval. This is a highly regressive tax, targeted at the poor .... A suckers bet, the house, statistically always wins

Think about this ... If Rhode Island State Government raised taxes hundreds of millions of dollars a year, the electorate, would be, I dare say, peeved? But let them play a cool video game, and its entertainment?

Imagine the effect on the Rhode Island economy if only a fraction of that money had been spent on local businesses ... But the biggest travesty is, given the vacuum our leaders make decisions in, we will never even know ...

As Rudy says ... Sleep Tite Vo Disland"