Homeowners huffing over windmill delay

[Dan Andrews]

http://www.thespec.com/article/285413

Homeowners huffing over windmill delay

TheSpec.com - Business -

Al MacRury

The Hamilton Spectator

(Nov 22, 2007)

Perhaps the answer is blowing in the wind?

After waiting 18 months for delivery of the roof-mounted residential windmill they ordered from a Niagara dealer, the Harbottles have run out of energy. They want their $9,500 deposit returned.

They are tired of hearing excuses.

Way back on Dec. 27, 2005, Niagara Windpower Inc. of Welland and the Mag-Wind Company LLC of Texas issued a joint press release announcing the "unveiling and introduction" of the MW 1100 wind turbine. The firms also held open houses in Ontario and Texas.

But even the windmill's co-inventor now admits there hasn't been a single unit delivered to a consumer's home.

Indeed, Thomas Priest-Brown of Burlington told Action Line no patent has yet been issued for the MW 1100, although he still hopes to have the windmill on the market within three to six months.

"Our product was conceived and developed in Ontario by a local group of entrepreneurs," Priest-Brown said. "We have investors (small and large) from all over North America and Europe. While we have had delays and some technical issues, many were beyond our control. These included a hostile takeover attempt by partners in the U.S. That issue alone consumed financial resources and worst of all, our time. But, after many months we are back on track."

However, Action Line has learned that one "rogue" Mag-Wind dealer is under investigation by the FBI in Montana for allegedly accepting deposits from consumers without the approval of the Mag-Wind Company.

And one of the three principals of the Texas firm recently resigned from his position.

Priest-Brown told us he now intends to have his windmill built north of the border and is negotiating with a potential Canadian manufacturer.

"We've heard nothing but excuses from these people," Lucinda Harbottle of Beamsville says. "Our windmill was supposed to cost $19,000. We were asked to make a 50 per cent deposit. They made a verbal promise to return our money, but said they'd have to pay by instalments."

On Aug. 15, 2006, Niagara Windpower issued another letter to its clients, stating: "The long-awaited Mag-Wind 1100 is almost here!" The firm warned there were only 32 units available for "pre-sale" and urged consumers to call "today to guarantee delivery this year."

When contacted by Action Line, Niagara Windpower vice-president Deborah Power was defensive.

"You're just looking for the big story," Power said. "Well, there is no big story here."

She described Niagara Windpower and Mag-Wind Company as "pioneers", adding; "I'd see no problem placing a deposit on an electric car and waiting for delivery."

The Consumer Protection Act, however, specifically addresses the issues of Unfair Practices (Section III) and Future Performance Agreements (Section IV).

If a consumer places a deposit on a product that is not delivered, they have the right to demand the return of their money 30 days after signing the contract, or 30 days after the scheduled delivery date has passed.

In a Nov. 13 e-mail, Power promised us she would return the Harbottles' money.

She maintained Niagara Windpower has already returned "several other deposits" and said two of her customers have purchased a solar panel system instead of the Mag-Wind 1100 windmill.

"The rest of our pre-sold customers are willing to wait until the unit is ready. We are just as anxious as our customers to start installing these units. It is unfortunate Mr. Harbottle could not wait. There was never a question of him not getting his full refund."

Critics of Mag-Wind voice their opinions on the househacker.com website, while the firm's own site is mag-wind.com and Niagara Windpower's is niagarawindpower.com.

If you have a consumer problem, call 905-526-4665 or e-mail amacrury@thespec.com. Not all calls and letters can be answered.