Alternate Energy Holdings, Inc. (OTCQB:AEHI) CEO Interview

Alternate Energy Holdings, Inc.
CEO:Donald L. Gillispie

Alternate Energy Holdings, Inc. (AEHI) is a unique corporation founded by former senior executives in the utility and finance industries specifically to address the mounting ‘energy crisis’ affecting the US economy and standard of living today. A key objective for AEHI is decreasing US dependence on foreign sources of power, which are progressively proving less reliable and more political in their influence. Another goal is to reduce energy costs to consumers by supplying low cost electricity; provide technology to construct buildings and homes without energy bills; improve grid reliability with large base load plants; and create much-needed jobs.

AEHI’s primary initiative is construction of a proposed nuclear power plant in Payette County, Idaho. AEHI will be at the forefront of this opportunity as the first publicly traded independent nuclear generating company in the U.S. and will easily outperform large nuclear and fossil type utilities with their inherent bureaucracy.

AEHI additionally seeks small green energy companies for acquisition and the creation of new ones. By providing superior management and networking skills to expand their markets, AEHI assists acquisitions with growth and development. The company will continue to look for opportunities for expansion through the purchase of additional sources of eco-efficient power. Through the ownership of existing power generation sources, AEHI will assist in expediting the regulatory approval for its construction of new energy sources, including joint ventures to produce reactors and nuclear components as well as other energy sources.

Interview Transcripts:

Juan Costello: Good day from Wall Street. This is Juan Costello, senior analyst with The Wall Street Reporter and joining us today is Don Gillespie, the CEO for Alternative Energy Holdings. The company trades on the Bulletin Board and their ticker symbol is AEHI. Thanks for joining us today Don.

Donald Gillispie: Thank you Juan. It’s good to be here.

Juan Costello: Great. Always good having you on. Now, starting off, give us a brief history and overview of AEHI for some our listeners here who are new to your story.

Donald Gillispie: Okay. AEHI was formed after I retired as an energy executive with the idea of helping revive or create the nuclear renaissance in this country. As the large utilities at that time had said that they didn’t want to do it unless somebody else went first. So I found some like-minded colleagues like myself who most of us have 40-plus years, long in the tooth in this business and had done this in the past.

And so we thought we could help jumpstart the nuclear renaissance so we formed this company to do that. And I’m pleased to say that now we have 34 proposed plants around the US, two which are ours and well the others re moving a little slow, we’re not.

We’re moving right ahead so we’re pretty encouraged about that and I found good support here in Idaho. We picked the west in part because of the, there’s only five nuclear plants in the west. The other 99 in the total of 104 in the east. And so primarily the new power sources in the west were being coal particularly in the west.

And so we thought nuclear power would make more sense. It’s cleaner and more reliable at lower cost. And we see this as a good market for us not just the State of Idaho but the entire west region and have little competition out here as it looks right now.

Juan Costello: Well certainly…oh go ahead.

Donald Gillispie: And this project has passed the initial approvals by the county. So we’re entering our final phase of re-zone approval actually starting December 2nd. And we expect within about two months after starting that, we will get the final answer and then we’ll be done with the local boat.

Then that will put us into the nuclear regulatory process. So that’s kind of people say, “Well, that’s a tough process and extensive and takes a while.” It’s indeed the case but it’s like forming a briar patch. That’s a process we know and we’re happy to get into it and get out of the more emotional political phase of getting these things initially approved in a county or state.

But that’s almost done and we’re very encouraged by that and so we’re looking forward to the next phase which we will be starting early next year.

Juan Costello: Well great. And so yeah, bring us up to speed on the other recent company activity. You recently signed a funding commitment with Roswell Capital.

Donald Gillispie: Yeah. The first phase of this process is as we call it. It’s two phases really to building things. The first phase, you have to build of course, acquire the site, acquire the water rights and the west particularly is a little different than the east. And of course to acquire the NRC license to construct and operate the plant.

That total package is around a hundred million dollars give or take depending on the engineering work that will be needed. So we required a credit line essential with Roswell Capital in Alpharetta, Georgia. And with the idea that we can draw from that as we need money since during this money will be spent over three years. It’s not something we need as a lump but we need it a span of three years to pay for these various cost that I mentioned to get this plant approved.

Of course, once this plan is approved then a hundred million-ish if you will, will convert that site into something that’s probably worth a billion or more dollars. So you end up with a fairly large asset once you go through regulatory approval. And then you know some people who talk about marketing the asset but that’s certainly not our intention. Then that asset would be the basis for a construction loan to actually build the plant. That would kind of be the scenario.

I’m going to speak at Platts Nuclear Conference the next February and talk a little about this since we’re one of the few if not the only ones in the United States had done this. And we’ve gone through an independent nuclear plant and maybe in the world as far as that goes. So it’s interesting in how we’re able to do this as not a large company like most of these have been built. But we believe the method we’re using will allow almost any sized company to do this if they have the expertise.

Juan Costello: Well great. And so talk to us a little bit more about some of the trends right now in your sector and how well positioned the company is through some of your subsidiaries to capitalize on them?

Donald Gillispie: I think we’re about to announce our first revenues. Well that should be in December. Our energy neutral subsidiary that uses renewables and puts them on homes and offices either new or retrofit to take away or dramatically reduce their energy bills. And we tried to do these in an affordable way so almost anybody can have these at homes.

And so we built a model home here. Well actually we started last fall and finished it in the spring and had it on display here for the media and people to tour and put it on the market here at the end of the summer. And we just contracted it to sell.

So that will be our first revenue to the company. We also have five more going in this area that we’re building. And these we’re building more on the starter end because it seems to be the more growing market for new bills.

What’s nice is that people today either being a retiring or just starting out on their first home can actually have a home that have this stuff on. It’s primarily solar in this area to reduce their power bill or even eliminate it depending on the options they pick. And they can do this in affordably priced home whereas most of this in the past has been on multi-million dollar homes in California and Colorado and Arizona and places like that. Now it can be affordably done for anybody. You think about so many people retiring, the baby boomers if you will are going out on fixed income, this is something to be very attractive to them on a smaller to medium sized home that has no energy bill.

So we’re pretty excited. It’s been a little slow start because the economy went kind of bad when we lit this company on. But we see that starting to pick up a little bit. We also have, we’re in the final stages of our first two license agreements or franchises if you will, one on the east coast and one down in Arizona. So we’re going to start franchising this idea out to builders to apply it throughout the country.

Juan Costello: And what would you say Don makes AEHI unique from some of your competitors and some of the other players in your sector right now?

Donald Gillispie: Well I think we use nuclear technology in unique ways. The other business that we have is Green World Water. And that’s we worked with China National Nuclear Corporation to develop and market a reactor that will produce both electricity and fresh water from the ocean and desalinization.

So we’re the first company to offer a commercial power plant that will do that. We have at least 30 countries now that have shown interest in this. We figured it probably takes, for these kind of large contracts where you’re building particularly in countries that has never had a reactor, a lot of these developing countries.

We opened our office recently in Africa. We’re probably going to be selling one of these. It takes about a year to negotiate them, to find a site, negotiate the price. And one of the things we offer in that package not only.

If you look at desalinization which is done around the world usually by fossil plants, mostly by gas and coal, they’re pretty expensive and they have pollution associated with them. And they can make you the water or electricity. Ours can make both because it’s such a strong thermal source than some of the reactor.

So when people see this and see the cost compared to what else they’re considering, there’s a heck of a lot of interest in it. But it takes a while in these non-nuclear countries to go through and educate them about nuclear power and how it can benefit them and the dual products it produces cheaper than really any other source they can get it from.

So we’re pretty excited. We believe we’ll be probably signing some contracts. It will be probably next year now so we just started this summer to go through this long negotiation process but we have several countries that are very, very interested. We have met with the ambassador of Afghanistan. We’ve been to the Ghana embassy and it responds to their interest. And so we think Africa is going to be hot areas as well as the Middle East so we’re pretty excited. This maybe our second revenue and larger than the energy neutral revenue. It could be starting next year as well.

So what makes us unique is there’s nobody else doing the kind of things we’re doing as an energy company. And we’re also looking into many reactors which we have not pulled the trigger on that but we’re involved with one. Let’s see if we want to add that to our business units.

And we’re also looking at solar desalinization through another company, an acquisition type thing and see whether we’ll be able to use these in small islands such as the Caribbean where it’s not really large enough for a reactor in order to need one. But maybe enough water for five or ten thousand people can be done through these solar desal units.

We continue to expand, add, and we’re a holding company. Our purpose is to use clean energy to help the world. And we’re having a great deal of success and a lot of interest, and starting to work a little with some missions that go out and try to help countries with water, fresh water around the world and some well establishments. And we think there’s a good link there where we can actually go in and help solve some problems with these missions.

Juan Costello: Certainly. Walk us through your background and experience Don if you will. And talk a little bit about the strength of the leadership over at AEHI for us.

Donald Gillispie: Well as my staff says here I’m 105 and I have 900 years of experience. I’ve been at this a little over 45 years. I’m 67 and I’m involved in the first round of these plants in the ‘60s and I’ve been in this business really ever since.

So I worked for Westinghouse and large utilizes like the Tennessee Valley Authority and Duke Energy and helped start up these plants, turn around the ones that were struggling. I’m involved in almost every phase of the nuclear business.

I’m involved in a company called Institute of Nuclear Power Operations in Atlanta which is the nuclear and safety lifestyle group that is formed after three mile island and inspects all of the nuclear power plant in the UN. I helped form one of the cornerstones of that business.

So I’ve been at this long time. It’s something I live and breath. And one of the reasons I came out of retirement when I saw this great technology not being used not only for electricity in this country but for other methods such as water. It would be helpful to many parts of the world.

So I came out of retirement to do this and it’s kind of my swan song and hoping to help others and hoping to help others. I think that’s what we’re called to do in the end of our business careers is help people and not necessarily play golf all the time. So that’s what I’m trying to do.

Juan Costello: Right. So what are some of the…

Donald Gillispie: It’s not that there’s anything wrong with golf. I mean you got to play a little golf.

Juan Costello: Right. But not everyday right?

Donald Gillispie: Yeah, exactly. You get blisters. [laughs]

Juan Costello: Exactly. So in terms of some of the milestones, what are you guys hoping to accomplish outside of the 18 holes. What investors look forward to this year? What are [overlap]

Donald Gillispie: Our first revenue’s in December. And then additional ones from Energy Neutral into the year as we sell these license agreements or franchises good to go. We expect to see even more potentially larger revenues and if we sign contracts on these [indiscernible][0:12:43] reactors which we fully expect to do next year because these are paid for in progress payments as you may know. And the way it’s set-up, progress payments are not refundable. So when a progress payment is made, then we get a cut of it. We get to start enjoying revenues from any sale of these bill of contract next. And we expect it could be more than one in light of the interest right now amongst quite a few countries.

So we think we can see some more significant revenue. We could even go profitable next year in light of that sale. Of course next year we’ll be into the, we’ve past the local approvals here in Idaho and into the regulatory process to approve this commercial plant here in Idaho. And then if that’s going away, we think we will probably start our second project in Colorado maybe near at the end of the year, the nuclear site there.

Juan Costello: Well good. And so when it comes to investors and the financial community, do you believe that the AEHI story, your message and ultimately the company’s upside potential are completely understood and appreciated by investors and the financial community?

Donald Gillispie: Well I think not completely. I think partly we were, our stock was going up very well this fall and then some anti-nukes here in Idaho combined with the less than scrupulous website which I won’t mention their name. And they printed some stories about us that are totally false. And it has hurt our stock. It has knocked our stock back as people have read those stories.

We try to counter those stories but sometimes it’s not because of rumors tend to get people more excited than fact. So that hurt us a little bit but you know as we hit these milestones I was mentioning that will all be overcome. But it’s sad that there are companies out who’s sole purpose is to hurt another company and for the purpose of making money.

And this particular company I’m talking about and written about in the American Journal of Review. It’s called Short on Ethics is the article. It refers to this same company that’s trying to do this to us. I’m not going to mention their name because I don’t want to give any credibility but they were formed by a penny stock felon and they’re out doing this with impunity which is amazing.

But we suffered from slings and arrows from them that actually have hurt our stock a little bit. I think it’s a good bargain right now in light of what they’ve done.

Juan Costello: Certainly. And so once again joining us today is Don Gillespie, Chief Executive Officer for Alternative Energy Holdings which trades on the Bulletin Board, ticker symbol is AEHI. Currently trading at 63 cents a share. Before we conclude Don, to recap some of your key points here, why do you believe investors should consider AEHI as a good long term investment opportunity?

Donald Gillispie: From a long term, these plants are in a deregulated market, the nuclear power plant leaving the other business units beside from them. We have a capability of making billions of dollars. I once told a reporter. I said that if I could build six units somewhere in the United States and operate them in a deregulated market which is what I’m doing, that we can rival Exxon Mobil in profitability. That’s the kind of profit that these plants can make looking at the current wholesale price of electricity. So we are pretty confident. There’s not too many investments that can rival this thing once it gets rolling in the sense that in the energy field I believe.

Juan Costello: Well we certainly look forward to continuing to track your company’s growth as well as report on your upcoming progress. I like to thank you for taking the time to join us today Don and update our investors on AEHI. It’s always good to have you guys on.

Donald Gillispie: Juan, it’s nice to talk to you again. I hope that you have a nice Thanksgiving and take care.

Juan Costello: You too, thanks.

Donald Gillispie: Okay.