By JIMMY LAWTON

OGDENSBURG -- AG-Energy, a company under contract with the state to provide heat to the St. Lawrence Psychiatric Center, is looking to once again produce and sell electricity.

The plant formerly produced electricity using natural gas, but removed the generation turbines in 2007. That decision was made with hopes of converting the plant to biofuel, but those plans never came to fruition. The company also studied a hydro-turbine model, but found that also would not be cost efficient.

However, times have changed and the company is hoping to begin producing energy again.

Gregg Sharland, a representative of the company, says Ag-Energy plans to reinstall its gas turbines and begin generating power again. He said this will create temporary construction jobs and eventually lead to eight permanent high paying jobs once the turbines are reinstalled.

City Manager Sarah Purdy said the company must clear a few hurtles before it can begin producing power. This includes approval from the Public Service Commission and that requires a public information meeting.

Purdy says the meeting will be held May 4 at 7 p.m. at City Hall.

“It’s good news for Ogdensburg. It keeps Ag-Energy operations going. It keeps employees here. It’s good for the future of the psychiatric center and for us,” she said.

The Public Service Commission is encouraging residents to attend the hearing. It hopes to gather comments from the community regarding the Ag-Energy’s plan.

Ag-Energy has operated at a loss for several years in its effort to make good on the state contract to produce heat at the psychiatric center. It

Until recently the company had owed the city $655,629 in back taxes and an additional $97,862 in interest.

In an agreement approved by city council last year the interest was waived the interest fees in exchange for payment of the back taxes.

According to the PSC, AG-Energy’s facility began commercial operation in 1994 as a 79-megawatt cogeneration facility, selling electric output to Niagara Mohawk Power Corporation and steam to the St. Lawrence Psychiatric Center.

The facility consisted of two gas turbine generating units, a steam turbine generating unit and two auxiliary boilers.

In 2007, AG-Energy removed the gas combustion turbines from service and, in 2010, put the steam turbine in protective lay-up. AG-Energy has maintained the equipment on site and performed maintenance activities to preserve the condition of the equipment and facility. AG-Energy now seeks to restart electric generation operation.

In January 2016, AG-Energy filed a petition with the Commission. If approved this would authorize AG-Energy to perform the work necessary to restart its existing electric generation facility, which will have the same generating capacity that it had before the gas turbines ceased commercial operations.

That work involves the reinstallation of the gas combustion turbines. AG-Energy also asserts that the facility will maintain oil-firing capacity, a document from the PSC says.

For those who cannot attend or prefer not to speak at a public statement hearing, there are other ways to provide comments to the Commission. Comments should refer to "Case 16-E-0033 – AG-Energy, LP" and are requested by May 10.

Comments may be submitted to at secretary@dps.ny.gov, or by mail or delivery to Secretary Burgess at the New York State Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350.

Individuals may also submit comments by calling the Commission's Opinion Line at 1-800-335-2120.