“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

A Response To Richard, aka Those Who Believe Public Employee Unions Serve A Noble Purpose 

I actually agree that within the world of free, private enterprise Labor Unions serve a useful purpose ... Financial organizations merge, organize to gain clout in the marketplace, and economies of scale ... Producers of raw materials do the same thing ... Labor is entitled, actually required, in the free market, to organize, collectively .... However, if one component (labor, capital, or raw materials) renders the entire product non-competitive in the marketplace, the entire enterprise fails

Public Employee Unions pervert the entire system, however .. In order for the free market system to work, ultimately, some enterprises MUST fail. The government, because of its seemingly limitless ability to tax, has until now, never been allowed to fail. There is no responsibility to the marketplace for the final product. There is no competition. Couple that with the ability of public employee unions to effectively vote in their own boss (See Lincoln Chafee), the system begins to act in favor of its employees, not the customer\shareholder\stakeholder (The Citizen Taxpayer) In a State like Rhode Island, where a disproportionate share of the populace draws sustenance from the State, whether it be employee, or charity case, the interests of the state take precedence over the interests of the Citizen.
Not only is the condition terminal financially, it also tends to provoke a complete breakdown in the quality of the goods and services delivered, in this case, by the State of Rhode Island
Apt comparisons can be drawn between the collapse of government services in the waning days of the Soviet Union to the intolerable conditions here in Lil Rhody ... the poor school systems, the crumbling infrastructure, the inept law enforcement (see Providence) ...

So Richard, I thank your Unions everyday ... Everyday that I pay for a private education for my children, while my confiscatory taxes feed an incompetent public school system (that is clearly more focused on the quality of teacher compensation, than the teachers themselves) I thanked the Unions last year when I blew out a tire in late spring on Hope Street, in a pothole the size of CF ... I thank the Unions for a Law Enforcement system that forces citizens to give up their drivers license if they are late on the seemingly endless series of taxes, but encourages illegal aliens to drive on my rutted potholed streets .... I thank the Unions for creating a Dept of Motor Vehicles that would be shamed in the Soviet Union ... And of course, every night when I say my prayers, I thank the Unions for helping to elect an incompetent useful idiot, who may be borderline functional in the real world, to the title of Governor of the State of Rhode Island (and Providence Plantations)