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Posts Tagged ‘AEHI’


Friday, February 4th, 2011

February 4, 2011
Nuclear Townhall

It may be a long time before a nuclear reactor rises in Idaho, but Alternate Energy Holdings took one small step back to undertaking the task yesterday when a federal judge unfroze assets locked-up in December by the Securities Exchange Commission.

U.S. District Judge Edward Lodge released the $7 million into AEHI’s treasury after considering SEC testimony that AEHI CEO Don Gillespie and vice president Jennifer Ransom had used the company assets as a personal piggy bank.

“SEC lawyer Mark Fickes . . . said they have looted the company of millions to finance a luxurious lifestyle, including jewelry purchases, a Maserati sports car and lavish trips to Asia, Colorado and Las Vegas,” reported Bloomberg News.

AEHI lawyer Richard Roth did not seem to dispute the raiding charges but concentrated on the point that AEHI has not violated securities law by promoting the idea that the small company can begin the process of building a nuclear reactor.

Part of the SEC case rested on the contention that AEHI had bamboozled the local populace and “pumped up” the stock by convincing them that the small start-up could build a reactor in the remote corner of Idaho. The judge accepted AEHI’s arguments.

The case against AEHI was originally incubated by the Snake River Alliance and other opposition groups that don’t want a reactor under any circumstances. Snake River openly bragged that it had drawn the SEC into the case when the federal crackdown occurred in December.

Newspaper stories highlighted the opposition groups’ arguments that it was absurd to think a small company such as AEHI could build a nuclear reactor. Gillespie countered, however, that his company would not be financing the reactor but would only do the preliminary regulatory and environmental work to the point where it applied to the Nuclear Regulatory Commission for a license. At that juncture, he argued, a major nuclear builder such as Toshiba/Westinghouse or Korea Electric Power could jump into the project. Since getting regulatory approval constitutes a huge portion of building a new reactor, AEHI would have something to offer. Judge Lodge accepted this point.

"We’re very, very pleased with the result [of the decision]," AEHI attorney Roth told The Associated Press. "We have a company that can continue. Banks and brokerages can be notified that the company is back in business.

Read more about it at Bloomberg


Saturday, January 15th, 2011

January 15, 2011

Nuclear Townhall
Alternate Energy Holdings, Inc. (AEHI) has filed "voluminous papers" in opposition to a U.S. Securities and Exchange (SEC) motion to freeze assets according to its attorney, Richard A. Roth, with the New York City-based Roth Law Firm, PLLC.
In a December 16, 2010, filing the SEC charged the company with "fraudulently raising funds for a $10 billion nuclear power project" while asking for an emergency order freezing the assets of the company and two executives, including Founder and Chief Executive Officer Donald L. Gillispie.
In a 46-page affidavit response from Gillispie, the defendent categorizes the "six (6) bases of wrongdoing" alleged by the government as "false."
Gillispie says the SEC’s "broad, consulsory, allegations of market manipulation are incorrect and wholly ignores all other possible explanations for AEHI’s sharp increase in stock price…" 
Gillispie also offers explanations for an alleged false statement that "AEHI’s nuclear power plant project is fully funded" — calling the Private Placement Memorandum cited by the SEC "an altered document that was not prepared or disseminated" by the company.  
In a rebuttal to charges that the defendants "promoted AEHI despite its weak financial conditions," Gillispie says the company "was engaged in a legitimate good faith effort to raise necessary capital for the company." 
Gillispie admits that "due to the complexities of building a nuclear power plant, however, things have not gone entirely to plan."
AEHI was incorporated in 2001 and began public trading in 2006 through a reverse merger. 


Thursday, December 16th, 2010

Nuclear Townhall
December 16, 2010
From the Editors


Anti-nuclear groups have discovered a new way to block the development of new nuclear reactors – call in the Securities Exchange Commission.
This week the SEC suspended trading of Alternate Energy Holding Corporation (AEHI) after the Snake River Alliance orchestrated a campaign to block the company’s plans to build a nuclear reactor in rural Idaho.
In announcing the investigation, the SEC raised concerns about AEHI’s ability to fund construction of a $5 billion reactor plus compensations made to “certain AEHI officers.”  "The commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company," the SEC warned.
The probe comes at a crucial point when AEHI appearing to be making substantial progress with its admittedly ambitious plans. This week the Payette County zoning commission voted 10-to-1 to rezone AEHI’s property to accommodate a reactor. Don Gillispie, the Navy veteran who is CEO of AEHI, called the decision “monumental” and said it was “the first decision of its kind regarding a western US Greenfield nuclear site in 33 years and the first rezone ever of a Greenfield site for an independent company.”  “We haven’t had any complaints from investors,” he added.
Instead, according to Sun Valley Online, the entire SEC investigation has been prompted by complaints from Snake River Alliance, which has opposed the project from day one. “The Alliance and legions of concerned Idahoans have been urging state and federal securities investigators for more than two years to examine the behavior and financial practices of AEHI,” Liz Woodruff, policy analyst for the Alliance told Sun Valley Online. “This is a company that has been misinforming Idaho investors, county officials, and others almost since arriving in Idaho four years ago today. AEHI President and CEO Don Gillispie has tried to explain away the reasons for his company’s failure to attract legitimate investors and to move this project forward, but he cannot explain away an SEC investigation. It is unfathomable that AEHI can now attract any investors with an SEC cloud over its head.”
“Woodruff, who has worked with local residents in Elmore and Payette County, . . called on Payette County officials to immediately halt their consideration of AEHI’s rezoning application, which just last week received a favorable 10-1 recommendation by the Planning and Zoning Commission to the County Commission for consideration,” the Sun Valley Online report continued. “Woodruff said. `For Payette County, it’s better late than never.’”
What is obviously shaping up, then, is the usual situation where the broad community supports a project but a highly dedicated band of activists with better access to the media and government agencies is able to neutralize popular sentiment. The pattern is seen over and over with reactors, where local support often approaches 90 percent but small, vocal activist groups are able to convince the media that there is widespread opposition. Press reports routinely declare that “NIMBY” opposition is what is holding up nuclear progress but the opposite is true. People who are most affected by reactors are usually most in favor of them.
The SEC may also discover that AEHI’s ambitions are not as impractical as they might seem. Gillispie has no illusions that he will be able to raise $5 billion to build a reactor but says AEHI plans to do all the preliminary work leading to a license application before the Nuclear Regulatory Commission and then hand the project over to an established company. Many start-up ventures work this way. Since France, Korea and Japan are all offering funding and loan guarantees to support their domestic nuclear industries, the prospect that one of them might pick up the Idaho project is not all that unlikely.
In addition, although the reactor project serves as AEHI’s shop window, the company has several other potential sources of revenue. AEHI just completed its first full-scale model of an Energy Neutral Home and is planning to franchise their construction. Its Green Water World subsidiary also has an agreement with a Chinese company to market reactors for desalinization of water in the developing world.
Nuclear critics always argue that nuclear technology is completely impractical and is only being forced on the country by some gigantic “nuclear industry.”  (The fact that such an industry no longer exists in the United States usually escapes them.)  AEHI represents the complete opposite – a small, entrepreneurial venture working from the ground up in an attempt to realize nuclear energy’s enormous untapped potential. It’s nice to know the anti-nukes are opposed to that business model as well.
AEHI will have until December 28 to respond to the charges.

Read more about it at World Nuclear News


Tuesday, November 16th, 2010

November 16, 2010

Nuclear Townhall

From the Editors


One advantage of having a small company in Idaho that is trying to build a nuclear reactor without any help from anyone else is that the CEO is always looking for publicity.
Don Gillispie, chairman of Alternate Energy Holdings Incorporated, has become a whirlwind of public relations, touting the advantages of nuclear and the disadvantages of everything else. It may not get him an NRC license – that could take ten years – but it is sure putting AEHI on the map.
This week Gillispie is heralding a little-noticed Swedish study that came out last month showing that nuclear is 60 percent cheaper than wind and almost as cheap as hydro, which has long been the cheapest of all.
The study was undertaken by Price Waterhouse at the behest of SKGS, a Swedish industry group that has become concerned about the availability of power. Sweden now gets 47 percent of its electricity from hydro and 42 percent from nuclear – a contribution often overlooked by the rest of the world. Now, of course, Sweden is under strong pressure from environmental groups to expand its wind capacity to match neighboring Denmark, which claims to get about 12 percent of its output from wind.
The Price Waterhouse study, however, found wind to be completely uneconomical and propped up only by lavish government subsidies. At the same time, it noted that Sweden’s nuclear industry suffers special tax discrimination, which raises its costs by almost 50 percent. On a level playing field, nuclear would be far superior, surpassed only slightly by hydro. Yet hydro has very little chance for expansion since most of the good dam sites have already been developed and proposals to develop anything new inevitably meet with fierce environmental opposition.
The Swedish Parliament took all this into account earlier this year when it finally abandoned the 1980 national law – adopted right after Three Mile Island – that was supposed to close down all the nation’s reactor by 2020. Now, with neighboring Finland building reactors, Sweden is looking at nuclear expansion.
All this doesn’t do much good for AEHI, which will be seeking final zoning approval from the Payette County Planning and Zoning Commission on December 2. That still leaves the much more formidable task of trying to get the Nuclear Regulatory Commission to look at its application. But Gillispie, an ex-Navy man who has spent a lifetime in nuclear, is confident it will all work out. Stranger things have happened.

Read more about it at Market Watch


Friday, October 29th, 2010

The idea that a small, independent company in Idaho with a penny stock can accomplish what Constellation Energy and Duke Power are finding almost impossible may seem far-fetched. But Alternate Energy Holdings is trying.
The company, whose stock sells for 75 cents a share, announced yesterday it has received a Securities Purchase Agreement with Source Capital Group, Inc. for a commitment to purchase of up to 170 million shares of common stock worth approximately $120 million today. The funds would be used to cover payments for land, water rights and engineering work plus pay the application fees to begin licensing procedures before the Nuclear Regulatory Commission.
AEHI, which bills itself as “the nation’s only independent nuclear power constructor,” is proposing to build two 1700-MW power plants in Payette County, Idaho. The idea may seem quixotic but AEHI has the complete support of Payette County officials and has now managed to convince investors the project has merit.
“We must have baseload electricity, which means large, highly reliable sources of power that renewables can’t deliver,” says CEO Don Gillespie, a 45-year veteran of the nuclear industry. “If we don’t build clean low cost nuclear plants, it will be more of the same – pollution from toxic coal plants that are already being planned because of the current nuclear plant delays."
Payette County is only one of AEHI’s projects. It is also working on the Colorado Energy Park, a combined nuclear and solar power station, and Green World Water, a system that helps developing countries use their nuclear reactors for the production of potable water and other applications. The company also has a subsidiary, AEHI China, headquartered in Beijing, that is developing joint ventures to consult on nuclear development and produce nuclear plant components.

Read more at Market Watch