Exergy Group answers concerns and critics

Exergy Group answers concerns and critics

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by Stephanie Zepelin

Bio | Email | Follow: @ktvbstephanie

KTVB.COM

Posted on August 28, 2012 at 11:05 PM

Updated Tuesday, Nov 12 at 8:20 PM

BOISE -- The Boise-based Exergy Development group gained greater recognition after hosting North America's top professional cycling race for women in May.

However, Exergy has also faced tough questions about its ability to pay debts incurred by the event, along with various other agreements regarding its renewable energy development projects.

In fact, more than $300 million of Exergy's 2012 projects are currently on hold.

"A lot of it is tied to the investment climate, that we're just not getting as much investment money as we used to," said Exergy spokesperson, Martin Johncox.

Johncox says much of the hold up stems from a case with the Idaho Public Utilities Commission.

"Earlier this year, there was a case filed in front of the Idaho Public Utilities Commission." said Johncox. "It's very complex, and it deals with federal laws regarding how energy producers are to be reimbursed for these kinds of projects. As long as that case remains unresolved, investors are kind of wary about investing in these kinds of projects."

Johncox said fewer investors means less money, putting a stress on some projects. Though he says Exergy hasn't canceled its latest wind farm project in Idaho, he says the wind farm has been put on hold.

Exergy is also at the center of several financial disputes.

The city of Boise says Exergy owes $26,000 for police security at the 2012 Exergy Tour.

Exergy is also being sued by a Virginia-based energy company that claims Exergy planned to buy wind turbines, but did not.

"We don't have the money right now to purchase those turbines," Johncox explains. "Obviously we want to purchase those turbines."

Still, Johncox said Exergy has paid more than $1 million toward its Exergy Tour debts, along with $2 million in cycling sponsorships in the past year. He also says the company is up to date on payments to the U.S. Pro Cycling Challenge.

He admitted though, there are still payments on which the company is lagging.

"We are less than 90 days behind on some of our invoices to some of our subcontractors," Johncox said. "Rest assured, we are working very hard to get these people paid as soon as possible."

However, Johncox also said he is "not at liberty" to speak about the company's investments in projects in other states. He simply said Exergy is a strong company moving forward with a number of other projects.

KTVB asked about the future of the company's now signature Exergy Tour, and Johncox said they fully plan to continue with the Exergy Tour and Twilight Criterium.

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