Republicans rap Carcieri on Deepwater, 38 Studios

Leading Republicans are among those criticizing GOP Governor Carcieri for his support of Deepwater Wind’s controversial power-purchase agreement and the $75 million loan guarantee approved for 38 Studios. The former got the nod yesterday from the state Public Utilities Commission.

State Republican Chairman Giovanni Cicione had this to say during a taping today of WRNI’s Political Roundtable (which airs tomorrow at 5:40/7:40 am and is also posted at wrni.org):

Both of these projects [Deepwater and 38 Studios] are massive government investments, and generally I’m opposed to that. More specifically, I’m opposed to it when the process has to be end-run in order to do that, and I can’t believe I’m saying this but I’m actually encouraging Attorney General [Patrick] Lynch to step in in this manner [of planning to appeal Deepwater’s power-purchase agreement to the state Supreme Court], because I think it’s important for the state to determine once and for all whether or not this kind of process is acceptable and whatever happens with the outcome . . . I hope this works, I hope it’s wonderful for the state, but whatever the outcome, we can’t have the process be modified to fit one company’s needs, and that’s my biggest fear with this whole project.

Cicione was referencing critics, like Republican Representative Laurence Ehrhardt, who say Carcieri and the General Assembly have aided Deepwater by supporting an end-run around the PUC’s usual regulatory process.

House Minority Leader Robert Watson says he’s disappointed by state government’s interactions with Deepwater and 38 Studios, saying, “I don’t think that they’re good for the state.”

Watson, who stopped by WRNI this morning for an unrelated interview, said he previously tabbed the loan program used for 38 Studios as “a scandal waiting to happen. And while I didn’t anticipate such a big grab from a celebrity coming to town, and putting stars in people’s eyes, and grabbing $75 million, I think it is a scandal. And it should be stopped,” because government shouldn’t be choosing favored companies.

Watson opposes the power-purchase agreement for Deepwater because, he says, rising electricity prices will damage Rhode Island’s business climate.

Supporters of these two deals say they represent good bets to help the local economy. Governor Carcieri has also touted the importance of establishing a renewable energy industry in Rhode Island.