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Plumas Countys Energy Contract with ENGIE Under Scrutiny for Financial and Execution Concerns

Plumas County’s decision to enter into a contract with ENGIE Services U.S. for energy-related infrastructure improvements has come under scrutiny less than a year after its approval. Initially seen as a way to address outdated equipment and achieve significant savings, the $10.9 million contract now raises concerns among the county’s Board of Supervisors.

At a recent meeting, the supervisors questioned both the financial viability and the execution of the project. Supervisor Mimi Hall, who was not in office when the contract was approved, highlighted issues such as the absence of a required public hearing and the potential fiscal impact on the county’s general fund. The project’s financing package, approved amid controversy, involves significant long-term costs, with financing expenses exceeding projected savings.

Specific elements of the project, such as the LED lighting upgrade and generator replacements, have raised alarms. County Facilities Director Nick Collin questioned the high costs of these upgrades and the suitability of the selected equipment. The use of out-of-county contractors, contrary to promises of local economic stimulation, has also been criticized.

The county now faces the challenge of ensuring fiscal responsibility while managing contractual obligations. The supervisors have directed a review of the ENGIE contract and are exploring options for potential modifications or cancellations. The situation underscores the complexity of balancing infrastructure needs with prudent financial stewardship. The outcome of the review and subsequent actions will determine how the county navigates these challenges moving forward.

 

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