Central Wyoming News

U.S. Senator John Barrasso (R-WY), ranking member of the Senate Committee on Energy and Natural Resources, has formally requested an investigation by the Department of Energy’s (DOE) Inspector General into a $1.66 billion loan guarantee to Plug Power Inc. The request raises concerns about potential conflicts of interest involving Jigar Shah, Director of the DOE's Loan Programs Office (LPO).

In a letter addressed to DOE Inspector General Teri Donaldson, Barrasso highlighted the financial losses sustained by Plug Power in recent years. "It appears that DOE’s Loan Programs Office (LPO) continues to provide taxpayer support to entities with which its Director, Jigar Shah, has conflicts of interest," Barrasso wrote. He noted that Plug Power reported a $1.4 billion loss in 2023, nearly double its $724 million loss in 2022.

Barrasso's concerns extend beyond financial performance to potential impropriety within the LPO under Shah’s leadership. The senator pointed out Shah's previous role at Generate Capital, a company that financed energy projects including a $100 million loan to Plug Power in 2019. Shah left Generate Capital for his position at the LPO in March 2021.

"I respectfully request that you investigate DOE’s conditional commitment to Plug Power and specifically examine any potential impropriety on the part of Director Shah and the LPO more broadly," Barrasso stated in his letter.

The timing of certain transactions also raised questions for Barrasso. He noted that Plug Power repaid its loan to Generate Capital ahead of schedule in December 2022 without incurring early termination penalties while it was seeking a DOE loan guarantee.

Barrasso also pointed out connections between Taite McDonald, a lobbyist for Plug Power at Holland & Knight, and Shah. McDonald is described as a “longtime friend” of Shah and has led numerous companies through the LPO selection process since Shah became Director.

"My concerns about DOE’s conditional commitment to Plug Power arise from Director Shah’s prior role at Generate Capital," Barrasso wrote, highlighting how these professional and personal relationships could undermine the impartiality required for evaluating loan applications.

The senator further outlined specific areas for investigation:

- Potential pre-tenure involvement: Whether Shah was involved in discussions regarding Plug Power before his tenure as LPO Director.

- Impartiality in loan decisions: Whether Shah’s relationships impacted decision-making within the LPO.

- Loan repayment circumstances: The early repayment of Plug Power’s loan to Generate Capital.

- Ethical compliance: Adherence to ethical guidelines including the Biden Ethics Pledge.

- Excessive financial risk: Whether issuing a final loan guarantee would pose atypical financial risks compared to previous guarantees.

Barrasso emphasized the importance of maintaining public trust and ensuring transparency within the LPO: "Given the significant financial implications and the need to maintain public trust, a thorough investigation into the LPO’s conditional commitment to Plug Power is essential."

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