Turbine company has history of poor performance
POTSDAM — Problems getting generator parts for the village's $3.5 million hydroelectric project are eerily familiar, according to officials in the Canadian town of Bancroft, Ontario.
Bancroft Town Councilman Peter C. Whitehead said his community's dealings with Canadian Turbines Inc. turned out to be a "horror story" that ballooned what was supposed to be a $1 million hydroelectric project into one lagging years behind schedule and costing nearly $3 million.
Canadian Turbines Inc., Burlington, Ontario, is the same company hired to deliver turbines and other electrical generating parts for Potsdam's hydroelectric dam.
Potsdam's project is a year behind schedule because the company still has not delivered the parts needed to produce electricity, according to village officials. The village has paid the company about $1.1 million of the $1,387,432 owed to deliver the key components needed.
For Bancroft, it ended up in court.
"It was a horror story. There was always central equipment not showing up. Your concerns in Potsdam now are our concerns," Mr. Whitehead said. "The issues we had up here are very similar."
Mr. Whitehead said after years of delays and equipment performance problems, officials in the Canadian township of about 3,500 took Canadian Turbines to court. He said that led to counter-suits on the part of Canadian Turbines president and owner Richard Kuiper.
He said Mr. Kuiper later agreed to continue to work on the town's hydro project, but was later terminated for again failing to meet the terms of his contract.
Mr. Whitehead said about five years elapsed from the time Canadian Turbines was hired to the point where the company was fired outright for alleged breach of contract. He said so far the town has spent 250 percent more on the hydro project than originally budgeted.
"That does not include any lost revenue," he said.
Mr. Kuiper did not return repeated phone calls Monday.
Potsdam Village Administrator Michael D. Weil said that Mr. Kuiper has blamed a lack of cash flow for the company's problems in getting the parts delivered.
Trustee Stephen W. Yurgartis said word of problems involving Canadian Turbines in Bancroft is troubling, given the reality that the village has still not received parts for its own hydroelectric project.
"None of the central parts, the parts that make electricity are delivered," Mr. Yurgartis said. "We've received some of the fixed parts, but the majority of the equipment has not been delivered."
Mr. Yurgartis said he spoke with Mr. Weil on Friday to talk about options the village has for dealing with the company. Mr. Weil said that he has not heard from Mr. Kuiper in several days, but is trying to get in contact with him to arrange an in-person meeting with trustees sometime this month.
"We are trying to be in communication with him. Nothing bad has happened, except we're behind schedule," Mr. Weil said. "We are told that they've had some money issues because of the economy. That's not our issue, but it's becoming our issue. We believe that the parts are finished."
The administrator said he was not aware of any problems with Canadian Turbines' contract with Bancroft when the village signed its agreement with the company.
"It does appear that the parts have been made; now the question is, how do we get them either with Mr. Kuiper's help or without him," Mr. Yurgartis said.
Mr. Yurgartis said he also plans to contact officials in Bancroft to learn more about the reported problems they had with Canadian Turbines.
This fall Canadian Turbines gave Potsdam officials a timetable for delivery and installation of the final essential parts needed, but the company missed its own Oct. 12 deadline. The village is still waiting to receive the turbine shafts and blades, the gear box and other important parts. It has the generators for the project.
Canadian Turbines is more than a year late in delivering the rest of the parts, which originally were due to be received in December 2007.
Times staff writer Alex Jacobs contributed to this report
