An energy company that received a $43 million loan guarantee through the same federal program that backed Solyndra has followed the path of the failed solar firm and filed for bankruptcy. Beacon Power Corporation filed for Chapter 11 bankruptcy on Sunday in U.S. Bankruptcy Court in Delaware. The company, which develops energy storage systems based on what are known as "flywheels," had received the federal guarantee for a 20-megawatt energy storage plant in Stephentown, N.Y., back in August 2010. The loan was expected to cover the lion's share of the $69 million project, one of several that Beacon was developing across the country. (snip)
Rep. Morgan Griffith, R-Va., who sits on the House Energy and Commerce oversight subcommittee probing the program, said the news about Beacon Power is troubling. "We're very, very concerned about this and many other loans that have been made by the Department of Energy over the last several years," he told Fox News on Monday. Griffith said plenty of companies in the U.S. would make "good prospects" for federal help, but the committee investigation is trying to find out whether the government was "just trying to get the money out the door." Sen. Jeff Sessions, R-Ala., ranking member of the Senate Banking Committee, called the revelation of the bankruptcy another example of "the reckless abuse of taxpayers' dollars in the pursuit of green jobs." He also suggested that crony capitalism had a hand in the decision to give Beacon a loan.
Read more: Another Energy Company Goes Bankrupt, $39 Million Borrowed From Taxpayers | Fox News