In a Nov. 12 filing with the New York State Public Service Commission, Syracuse University said that Project Orange Associates’ cogeneration plant, which produces steam and is built on university land, became the university’s property when the company broke the terms of a steam agreement.

Project Orange asked the Public Service Commission on Oct. 22 to regulate the university’s sale of steam to its customers. It claimed that the university is making an illegal profit.

The state legislature has granted the university the right to sell steam to non-profit institutions without regulation, SU said in the response to the Public Service Commission written by Jonathan Fellows of the law firm Bond, Schoeneck & King.

The terms of the lease the university signed with Project Orange in 1990 said ‘the cogeneration plant will revert to the university upon termination of the steam contract.’ The university argues that the contract was terminated when the company stopped making steam.

Project Orange has sued SU and questioned the validity of the contract.

Kevin Quinn, senior vice president for public affairs, would not confirm Friday that SU is planning to take over the cogeneration plant, but said ‘the university has no intention to run the cogeneration plant.’ The university is currently producing steam with two boiler plants adjacent to the cogeneration plant.

Project Orange President Adam Victor disputed SU’s claim to the cogeneration plant and said Project Orange had filed an injunction to prevent an eviction order.

‘As usual, the university is lying,’ Victor said.

Quinn also declined to comment on why the university did not accept Project Orange’s offer of free steam two weeks ago.

There is no indication yet of when the Public Service Commission will reach a decision.

jdmurp05@syr.edu

Published on December 18, 2009 at 12:00 pm