Although power companies operating in North Carolina have withdrawn a joint motion that could have delayed or hindered a Fibrowatt plant from locating in Surry County, the companies have still have not reached a power purchase agreement.

The firms, under a state mandate to purchase some of their electricity from renewable sources, had filed a joint motion with the Utilities Commission in Raleigh requesting to reduce the amount of power they had to buy from Fibrowatt. But on Dec. 16, the companies submitted a letter withdrawing their motion regarding poultry waste set-aside requirements.

Terry Walmsley, vice president of environmental and public affairs for Fibrowatt, said the company has not yet applied for state permits for its plants planned for Surry, Montgomery, and Stanley counties. He said Fibrowatt is still negotiating power purchase agreements.

“It’s very typical for a project like this, hinging on a power purchase agreement,” said Walmsley

He said it appears that the energy companies are more receptive to Fibrowatt now that talks have been under way.

Walmsley could not give a time frame for when a power purchase agreement would be reached.

Beginning in 2007, state law required energy companies to set aside or buy a certain amount of poultry or hog waste for energy. The energy companies originally requested to delay the implementation of this requirement and reduce the amount of poultry waste to be set aside.

Surry County submitted a motion for intervention to the utilities commission to counteract the energy companies’ motion. A testimony by Commissioner Craig Hunter was also submitted to the commission.

Hunter said in an e-mail yesterday, “I cannot speculate why the (public utilities’) motion was originally filed. All I know is it could have impacted Surry County in a huge negative way if embraced by the NC Utility Commission.”

Hunter also said, “My testimony to the NC Utility Commission was exactly what it states — information on the positive impact expected from Fibrowatt/Fibrohills building and operating a new renewable energy power plant in Surry County and the negative consequences if that does not happen as announced by the company.”

Paul Johnson, chairman of the board of commissioners, said the next step for the county once Fibrowatt moves further along in the process would be to hold a public hearing on an incentive package agreement for Fibrowatt.

“That’s something that’s still a work in progress,” said Johnson.

The county has been working with Fibrowatt since 2007 to bring a plant to the area. The county spent nearly $800,000 to purchase property in Elkin for the facility to be called Fibrohills. The commissioners hope this will add $140 million to the county’s tax base and create around 100 permanent jobs.

Local groups such as the Citizens’ Alliance for a Clean, Healthy Economy and the Blue Ridge Environmental Defense League continue to argue that the plant would increase pollution in the area.

Contact Meghann Evans at mevans@mtairynews.com or 719-1952.