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Miss Kitty Hamm Analyzes a Missouri Supreme Court Decision

8/15/2018

1 Comment

 
Miss Kitty Hamm fancies herself a leading member of the Feline Bar.  Miss Kitty Hamm is an amazing cat who not only can read, she can type for brief periods of time after consuming a certain pungent herb from her human servant's garden.  Miss Kitty Hamm got her dander in an uproar this morning after looking over my shoulder (really sitting on my keyboard) while I was reading a story in a fake news source.  Miss Kitty Hamm suddenly hissed and raced into the garden.  The following is what happened next.
For the love of a catnip mouse and a bowl of warm milk, my dear Hansy-poo!

The Missouri Supreme Court opinion did not say:

“What (the justices) said is that the only public interest determination to be made in Missouri is by the Public Service Commission,” said Hans Detweiler, vice president of development for Clean Line Partners. “So the counties… should not be making their own public-interest determinations. They should only look at engineering questions.”
The Missouri Supreme Court opinion said, and I quote:
Further, Grain Belt acknowledges it will be required to obtain county assent pursuant to section 229.100 if it intends to construct utilities impacting publicly owned roads. The provisions in that section, however, are not relevant to the Commission’s decision-making process in issuing a line CCN. Section 229.100 does not purport to give counties the authority to stand in the shoes of the Commission in determining whether a proposed utility project is in the public interest of the state or whether a utility should be granted a CCN. Other than providing that county assent must be obtained prior to beginning construction when county roads are impacted, section 229.100 is silent as to timing, order of priority, or any other reference to section 393.170 covering the Commission’s authority to issue CCNs. The Commission erred in relying on ATXI in denying Grain Belt’s application based on its failure to first obtain assent from impacted counties. Admittedly, Grain Belt will need to obtain such assent before it can begin construction if county roads will be impacted, but county assent is not required prior to the Commission issuing a line CCN.
What a catasstrophy!  The Court didn't say anything about limiting the county's authority to engineering questions.  It said counties are not granted the authority to "stand in the shoes of the Commission" in making a public interest determination in Sec. 229.100.

In Feline Law School, we were instructed that the plain language of a statute limits its intent to what is actually written.  A court may not substitute its own judgement for the plain text of the regulation.  A court may not presume additional text that is not in the statute in order to assume what the legislature meant.  The court was very careful not to interpret Sec. 229.100 in this order.

Let's look at Section 229.100:

2011 Missouri Revised Statutes
TITLE XIV ROADS AND WATERWAYS
Chapter 229 Provisions Relating to All Roads
Section 229.100. Improvements along public roads--location--control.
Improvements along public roads--location--control. 229.100. No person or persons, association, companies or corporations shall erect poles for the suspension of electric light, or power wires, or lay and maintain pipes, conductors, mains and conduits for any purpose whatever, through, on, under or across the public roads or highways of any county of this state, without first having obtained the assent of the county commission of such county therefor; and no poles shall be erected or such pipes, conductors, mains and conduits be laid or maintained, except under such reasonable rules and regulations as may be prescribed and promulgated by the county highway engineer, with the approval of the county commission.

The first phrase says no electric lines may be constructed on under or across public roads without having first obtained the assent of the county commission.  It does not specify what requirements must be met to obtain assent.  It simply says counties must assent before construction.  It does not limit or dictate the criteria a county may use to consider assent.  The court said a county may not "stand in the shoes" of the PSC in making a public interest determination.  The PSC's authority to make a public interest determination is a completely different statute.  I'm pretty sure no county ever claimed it could overrule (or stand in the shoes of) a PSC's determination of public interest.

Now the second phrase of 229.100 adds (with the word, "and") that a county highway engineer may make reasonable rules and regulations for road crossings, and said crossings must receive county assent.

Nothing in that statute says the county MUST task its county highway engineer to promulgate rules, and that a county MUST assent to said rules.

Therefore, my dear Hansy-poo, my cat-clusion is that the counties are still in the cat bird seat.  They never have to assent.  There's no point in giving them the power of assent if the statute were written to require them to assent.  That text is simply not to be found in the statute.

Clean Line finds itself in much the same situation I always find myself in when I rub the can opener vigorously and it continually fails to produce an open can of tuna, yummy yummy tuna.  Clean Line just spent a bunch of time and money to still be tangled up in Sec. 229.100 and still needing county assent.  Clean Line is right back where it started.  Might it not have been quicker and cheaper to simply attempt to gain county assent and forego the trip to the Missouri Supreme Court?  With county assent, the PSC would have issued a permit for GBE.  Why must you always do things the hard way, Clean Line?  Now you're out of time and out of money.

And I dare say you've further entrenched county resistance to your project with all this drama, and now you're trying to strong-arm the counties by making up things the Supreme Court never said?  I find that purr-fectly ludicrous.  If cats could laugh, I would be hissterical.  Just know I'm laughing on the inside.

There's probably not enough ham and pulled pork in the state to convince all the counties to assent.  However, I encourage you to try.  Please let me know when the first meal is served.  You're going to need some help consuming it all.

And what are you doing as the new spokeshuman for Grain Belt Express, Hans Detweiler?  Are you the only former Clean Line employee who has yet to find gainful employment elsewhere?

And furrthermore...

Well, I guess that's it for now...
1 Comment

Transmission Company Employee Thinks Opponents are Merely Greedy

8/10/2018

3 Comments

 
What better demonstration of the Peter Principle than within the hierarchies of investor owned utilities?  The Peter Principle, simply stated:  "In a hierarchy every employee tends to rise to his level of incompetence."  Bloated behemoth American Electric Power demonstrates its love of the Peter Principle every day, with more levels of unnecessary management than a multi-level marketing scheme.

But American Electric Power isn't alone in this.  I've noticed it at every utility and call center I've ever had the pleasure of disagreeing with.  The mid-level manager... dumb as a box of rocks!  What do we do with dumb people?  We promote them off the front line where they tend to embarrass us, and give them a nice corner office where they can direct their incompetence into meaningless managerial tasks.

American Electric Power withdrew their application for cost recovery of their now cancelled Wind Catcher project the other day (although they want the OCC to bless their settlement agreement with Oneta Power -- how does the OCC approve a settlement agreement for a withdrawn proposal?).  Also on the docket were a collection of public comments that had been gathered before the proposal tanked.  One last look at the battling form letters and other creative ways AEP tried to make its misguided proposal look popular and therefore worthy of approval.  Amid the postage-paid postcards and hand-written letters from landowners opposed to the project were two absolute gems signed by AEP/PSO employees in Oklahoma.  Why, AEP, why?  Was this a company-sanctioned activity?  Were employees who voiced their support awarded with days off or a free breakfast?  Or are these employees simply trying to find something to do with their time in the corner office?  Each letter was hysterically incompetent in its own way and demonstrated the kind of unimaginative thinking characteristic of a bloated hierarchy full of incompetent middle management.  This is all on you, AEP.

First let's examine the letter from Debbie Burchett, Administrative Supervisor from Oologah.  Oologah is the site of one of AEP's massive coal/gas generation plants.  What is an "administrative supervisor"?  I have no idea, but she's "well versed in the electrical business on the generation side."  I'll assume this means she sits in the corner office and writes letters to regulators with ideas that are strictly her own (but submitted in her official capacity with AEP).  And she expects the regulators to call her on her cell phone to get further info (without a period because it's apparently a complete word at AEP) and leave a message and she will happy to return the call and talk to them about her perspective.  Yes, I'm sure that would be very helpful to the Oklahoma Corporation Commissioners when they're making a decision on this complicated matter.

Ms. Debbie's advice is full of threat and doom of what will happen if the Commissioners don't approve Wind Catcher.  Jobs and projects won't come to Oklahoma!  It will hurt the state in electric use! (huh?  what?)  It will cost consumers higher rates in the future!  People say they want renewables but Oklahoma won't approve a project that lowers rates!  (Again... where's the logic here?)  And then we get the dreaded double negative so bad it makes my head hurt!  "l wouldn't understand why you wouldn't do this."  And if that isn't convincing enough reason to approve Wind Catcher, "this would not be good if it failed for both the electrical industry and the consumers."  Not good, according to Ms. Debbie.  Ms. Debbie has been a consumer for 45 years!  (How old is Ms. Debbie?  I'm hoping she's 45, because it's pretty hard to live without consuming anything.  I suspect she's been a consuming burden her entire life.)  Well, she's got a leg up on people who have only been consumers for 25 years, or 40 years.  An experienced consumer is always the best judge of new regulated projects that depend on a captive customer base for their revenue.  Guess what, Ms. Debbie?  Regulators like the OCC Commissioners take the place of competition in a regulated environment to make decisions about what's best for captive customers.  Bless your heart, Ms. Debbie, you really gave it your best shot here.  I hope you enjoyed your corporate trinket.

And now let's move on to Mr. Brett L. Martin, who thinks he's both witty and a master of the English language.  His letter is addressed to "Esteemed Ambassadorial staff."  Who?  Maybe Brett addresses all his inter-office memos to his superiors with this salutation (because you don't get the corner office without a bushel of brown-nosing) but I don't think there are any Ambassadors at the OCC.  Feigned toadyism only works in corporate settings, such as at AEP.

Brett is a SCADA Engineering Sr and that apparently makes his intellect and logic on all topics superior.  Because he's an Engineer, y'all!  Now obviously Brett isn't one of those innovative and creative thinking engineers because his knowledge of topics he didn't learn in engineering school are unimaginative and devoid of logic and understanding.  Brett is headed to the corner office in a big, big hurry!

He makes "deductions" about resource adequacy and load projections that are not only completely wrong, his solution depends on an overly-expensive and intermittent resource that intends to ship 70% of the power produced out of Oklahoma.

His theory is that only wind is "green energy."  True "green energy" is sustainable energy.  Industrial wind is not a sustainable source because it becomes a burden on the land and population.  Maybe he meant to say its burden is less than other sources, but that's only true when the infrastructure isn't in Brett's backyard.  A completely myopic and boring repetition of meaningless and trendy climate change memes.

He then delves into gas v. wind prices and unknowingly makes a great argument for disapproval. "The forecast for natural gas cost is not a valid comparison unless the OCC wants to gamble on future markets."  That's precisely why the Texas PUC denied this project.  Thanks, Brett!  His solution obviously wasn't cleared by upper management, because he wants to "Ensure accountability for the provided statistics and this point is closed regarding protective assurances."  AEP did not want to provide these protections.  It couldn't.  That would have most likely caused a loss to the company.  That's how skewed their gas price forecast was, and they knew it.

Then we get a paragraph about the sky falling if "a negative result is found."  There will be massive state revenue losses!  (You mean like the ones related to state tax credits for wind?)  And many Oklahomans will hold the OCC responsible for any future repercussions!  Do you mean you, Brett?  Are you the Oklahoman who is going to sue the OCC over possible "what if" situations?  I hope your understanding of the regulated legal system is better than your understanding of rates and resource planning.  Go for it, Brett!  And while you're at it, good luck with that generation shopping thing.  It sure looks like you're suggesting if the OCC approved cost recovery for Wind Catcher from PSO's captive customer base that it could later on change its mind and allow customers to opt out and buy their generation from somewhere else.  Did you check that idea with management first?  I'm pretty sure the company wanted a cost recovery scenario that would be guaranteed... forever.

And let's finish up with Brett's completely wrong-headed ideas about right of way acquisition and drivers for landowner opposition.  This is so misguided, so arrogant, so tyrannical, it can only be a revelation of the institutional mindset of a corporation so used to persecution to get what it wants that it is completely devoid of the empathy that makes us human.  Karma has a package for Brett and someday it will deliver.
In conclusion, the only argument I've noticed that needs addressing, is the Right of Way with landowners. Most of the Transmission route is satisfactorily settled to landowners' liking. There will always exist individuals that aim to capitalize on any efforts to improve a populations quality of living. I understand and readily concur that there are some situations
that need clarification and potential settlements, but this in no way impacts pre-approval of cost recovery. Laws exist by the legislature to ensure both landowners and corporate entity interests are protected regarding Right of Way. It seems arguments are rather one sided lately favoring the landowners. If our nation aimed at 100% satisfaction, we wouldn't even be able to elect governmental officials. With corporate expansion, the same holds true. A majority of Oklahomans approve this project and want our state to lead the nation.
Landowners who oppose transmission are merely being greedy?  Is that what you think, Brett?  Do you believe they will drop their opposition if enough cash changes hands?  Wow, aren't you jaded?  Here's the reality you've been sheltered from in your little SCADA world... landowners oppose new transmission because their land isn't for sale at any price!  Landowners oppose transmission for a lot of reasons, but one of the most common is attachment to the land, often land that represents the blood, sweat, and tears of their family for generations.  There is no amount of money that can compensate for the permanent destruction of a person's home, especially one rich in heritage and memories.  Your accusation that landowners who resist new rights of way are merely trying to score a bigger pay day is so deeply offensive, Brett.  Where did you get such an awful idea?  Was it from your buddies in the land acquisition department who insist they are "working with landowners" to coerce right of way agreements, or did you think it up on your own while passing the trophy case on your way to the cafeteria on numerous occasions?  (Ratepayer-funded donuts!)

And can you tell me how many "most" is?  You say "most" of the route is settled.  I don't think that's true.  Most should indicate nearly all, or a vast majority of something.  Certainly more than 50%.  My experience with landowners affected by Wind Catcher was that "most" of them didn't want to sell.  Some initially felt persecuted enough by high-pressure land agents and injunctions that they just gave in.  These landowners were not happy to sell a right of way.  They were bullied and coerced to do so.  And others on the verge of giving up were empowered by other landowners who refused to negotiate, and they subsequently joined the ranks of opposition.  Your "most" is a declining population once opposition gets a toehold and begins to spread.

Additionally, your idea that laws adequately compensate landowners is not a view shared by affected landowners.  It is one shared by unaffected individuals and transmission owning bullies.  A one-time "market value" payment for only land taken doesn't even come close to just compensation for an entire parcel devalued by changed use forever.  "Just compensation" attempts to make a landowner whole for one particular point in time.  It does not compensate for loss to the entire parcel, nor for future uses that subsequently become impossible.  Land unobstructed by involuntary rights of way can be used for any purpose in the future, whether it is for new farming ventures, new businesses, or even future residential development.  Adding a utility right of way through the property forecloses all these future possibilities, yet landowners are never compensated for future scenarios.  Landowners are also not compensated for their emotional attachment to land, nor the burden of having to look at and live with new infrastructure and its inherent risks every day in perpetuity.  "Just compensation" serves the interloper, not the landowner.  Any ideas that a landowner merely holds out for higher compensation is nothing short of adding insult to injury. 

And there is no voting process for eminent domain.  It's a process reserved for the courts and special compensation boards or juries of landowning peers.  Your attempt to compare the eminent domain process to democratic elections is an utter failure.  The public at large hates eminent domain, for any reason.  If a person isn't a self-centered, greedy bastard who thinks he can profit or gain something through the use of eminent domain, if he is someone with common empathy for his fellow man, he will always see himself in the victim role.  If the community at large voted on eminent domain takings, they would cease to exist.  If eminent domain can be used on our neighbor for one reason, it can be used on us for a different one.

Brett, I pretty much think you may be an absolute jerk.  But thanks for that little peek into corporate think.  You're an asset to your company and hopefully you'll have that corner office soon.
3 Comments

News from the Neighborhood of Make Believe

8/9/2018

3 Comments

 
We're off to the neighborhood of make believe this afternoon!  Let's get in the mood!
Remember how "lean and mean" Clean Line got last week, when most of its employees abandoned ship?  Well, it's apparently gotten even leaner this week, as Head Rat Michael Skelly abandoned his own ship.

Michael Skelly Joins Lazard as a Senior Advisor
Oh, so now even Skelly had to get a real job?  That's pretty funny.  Now Michael Skelly is just another briefcase totin' drone.  No more tilting at windmills.

Except, who wrote this press release?  I'm still trying to wrap my brain around Skelly being described as:
He is an accomplished strategic thinker...

...his expertise in developing large-scale infrastructure projects

It must be a different Michael Skelly.  They certainly can't be talking about the Michael Skelly who spent over $200M of investors' money on a crackpot idea to build 2,000 miles of merchant transmission "for wind" that never attracted any commercial interest.  No customers.  No revenue.  No transmission lines.  Who spends more than $200M "developing" something that never earns a dime of revenue and then is called "accomplished."  Unless, of course, they meant "accomplished" in a "The Big Short" kind of way.

Expertise in developing projects?  Certainly transmission lines cannot be included in those projects, since none of Michael Skelly's Clean Line's projects ever got close to being built.

King Friday XIII must have written this press release:
Mr. Skelly is the founder and Chairman of Clean Line Energy Partners, a leading U.S. renewable energy infrastructure company.
Leading?  Leading whom?  If Clean Line is at the head of this parade, I wonder who is bringing up the rear... Solyndra?  Perhaps they meant leading in the amount of investor cash wasted on an idea the energy industry said would never pan out?  That's the only parade Clean Line seems to be leading.

Oh, and hey, look at that.... Michael Skelly has been promoted to Chairman of Clean Line Energy Partners in 2018.  Is that because he's now the only board member and chairman by default?

So now Michael Skelly is working for some other "financial advisory" company to bring home a paycheck.  Can we just quit pretending that he's going to build Grain Belt Express now?  How is one man working only on nights and weekends going to build a 750-mile transmission line when an entire company couldn't pull it off before?

Move on, Michael Skelly, move on.  Go have a nice life pumping cash out of people with more money than brains, and tilting at new and improved windmills with other people's money.  Just go away, won't you?
3 Comments

It's Time for PJM to Fall Gracefully on its Sword and Cancel Transource IEC

8/6/2018

2 Comments

 
Transource IEC opposition groups in Pennsylvania and Maryland have been slowly building for the past year.  Their building, until recently, has flown under the radar of PJM Interconnection.  Although PJM should have been paying attention (at least since it was first called to explain itself to the community at a local meeting last year), PJM chose to dismiss the opposition and tune it out.  PJM has been listening only to its "member" Transource about project progress, and perhaps its perceptions have become skewed.

The Transource IEC project is not proposed for "undeveloped land," as the PJM Board was told in a pre-approval whitepaper.  The Transource IEC project is proposed for fully-developed farmland, the majority of which is conserved.  Who does your constructibility reports, PJM?  Do you hold a seance and consult with utility planers from 1930?  It's been many years since farmland was "undeveloped land" that has no value of its own and is seeking linear infrastructure projects to increase its value to the community.  In fact, that's probably never been entirely true, although in the last century farmers were a politically disenfranchised population whose cleared, relatively flat land looked good for cheap, linear infrastructure at 30,000 feet.  That's no longer true, especially in the eastern portion of the PJM region, where dwindling farmland has become a highly-prized commodity worthy of protection from cluttered over-development.

In addition, time has not been kind to the IEC.  Like a parasitic houseguest who drinks all your beer and leaves hair on your soap, IEC has not become more valuable over time.  It's become less valuable.  And the people can't wait until it leaves for good.  Market efficiency projects have a very short shelf life, which PJM obviously realized when it inked its agreement with Transource to build the IEC project.  Now it's time to re-evaluate and send IEC to the great dump heap of failed projects.

Opposition to IEC is entrenched and wide spread.  Cancellation is the only option.

The opposition recently voiced its reasons for cancelling the project in a letter to the PJM Board of Managers.  This opposition was bolstered by additional letters to PJM from Pennsylvania Representatives Kristin Phillips Hill and Stan Saylor.  In addition, Pennsylvania Public Utility Commission administrative law judges evaluating the project have become increasingly critical of the project, with Judge Elizabeth Barnes stating that she'd be "hard pressed" to approve the currently proposed project.  Things are not going well for this project in Pennsylvania.

What's happening in Maryland?  Governor Larry Hogan recently sent his own letter to PJM requesting the project be stopped until it can be re-evaluated or develop a new route using existing rights of way.  Things aren't going so swell in Maryland, either.

Face it, PJM, this is the kiss of death for the Transource IEC.  It's time to cancel the project and go back to the drawing board, presuming any actual "need" to relieve congestion still exists.  And PJM has stated that a re-evaluation is in process and will be revealed at PJM's September TEAC meeting.  What PJM's magic math giveth, PJM's magic math can subsequently taketh away.

The number of abandoned PJM projects is steadily increasing, and with generous FERC incentives to reimburse project costs in the event of cancellation, costs to ratepayers stemming from PJM failure are well into the hundreds of millions of dollars.  Hundreds of millions of dollars added to the electric bills of PJM consumers for badly planned projects that never even get off the drawing board!  You've got a big, big problem, PJM!  Your planning process isn't working and desperately needs revision.

I'd start with PJM's subjective "constructibility analysis."  There's no uniformity here.  PJM needs to add some reality to its engineering staff.  Just because something looks good ("robust" in PJM parlance) from an engineering standpoint, does not mean it should be constructed.  Engineering needs to intersect with the reality of politics, regulation, land use, and community relations.  That's the point of a "constructibility analysis."  But there are no standards.  While I have seen "constructibility" analyses that factor in possible opposition, others don't even mention it.  Environmental factors are not the only thing that makes a project unable to be constructed as planned.  In fact, environmental factors are the ones most nimbly avoided.  It's those other factors that kill projects.  It's high time PJM add some uniform standards to its "constructibility" analyses and require each greenfield project to be evaluated according to set standards.  A greenfield project that is technically superior to a rebuild isn't so superior when it can't be built.  In that case, a lesser rebuild is the solution that best serves consumers because it is more likely to actually get built.

And PJM needs to come out of hiding and own its work.  Transmission owners hide behind PJM by claiming they're only following orders.  PJM in turn hides behind transmission owners by turning a blind eye to what is actually happening with the projects it orders, and instead receiving all its information about a project's progress from the transmission owner.  In order for PJM to have any credibility, it needs to actively participate in tracking project progress.  PJM has long been in desperate need of an effective public relations program.  Why is it that 99.9% of the consumers PJM serves have never heard of PJM?  Because PJM likes it that way.  Only when PJM realizes it exists to serve consumers (not simply member utilities) and develops a relationship with its consumers will its credibility and purpose be recognized by the consumers.  When will PJM recognize the usefulness of doing its own community consultation and not leaving that task up to increasingly patronizing and arrogant transmission owners whose only concern is the amount of money it can make from a project?

You could do so much better, PJM, on a lot of fronts.  But, for now, it's time to fall gracefully on your sword once again and cancel the Transource IEC project.
2 Comments

Michael Skelly Aspires to be Meaner

8/1/2018

1 Comment

 
How much meaner could one be than to continue to attack people in 3 states with pie-in-the-sky promises to impede their businesses and take their land by eminent domain, when the likelihood of ever actually doing so is hovering near zero?
"We knew that if we were going to focus, we would need a leaner, meaner team."
Really, Michael Skelly, I can't help laughing at your feeble attempt to pretend you're some incredible go-getter who can suddenly make Grain Belt Express happen with a "leaner, meaner" approach.

Is "leaner" meant to cover the fact that there are no Clean Line employees anymore?  I notice you suspiciously skirted around that issue in your ego-polishing interview with Houston Business Journal. 
Though he declined to comment on the sale price of the assets Clean Line has sold or the company’s current, reduced headcount, Skelly did say he isn’t looking to move into a smaller office with the slimmed-down team.
Oh, c'mon!  We know that ConnectGen has taken over Clean Line's former ugly orange office space on McKinney Street.  When a person calls Clean Line's former phone number, it is answered "ConnectGen."

It looks like most of the management of the former Clean Line Energy Partners has reconstituted itself at ConnectGen, including the former Grain Belt Express project manager.
Leaner?  So lean that there's no longer a need for a project manager?  Who does still work there, and are they actually drawing a paycheck?
Houston-based Clean Line Energy Partners LLC has trimmed its portfolio down to one $2.3 billion project in the midwest called Grain Belt Express.

That left Clean Line with Grain Belt Express, a transmission project moving wind power from Kansas to as far east as Illinois. That’s what Skelly wants to hone in on, he said.

Grain Belt is still in the permitting phase, and it had been hung up in a Missouri Supreme Court case around who determines whether the project is in the public interest. The court ruled that the central Public Service Commission gets to decide, a favorable outcome for Clean Line, according to a July 26 press release.


The PSC has broad discretion in how it handles the decision going forward, so the timeline for the project could still change depending on what it does, Skelly said. But right now Grain Belt is looking at five or six years before it’s operational, he said. Clean Line should hear the PSC’s decision within the next several weeks, Skelly said.

Since its single remaining asset is still in development, Clean Line is not producing revenue right now.
Seems like Skelly forgot some parts.  Clean Line will STILL need the assent of Missouri counties before it can begin construction on its line.  While the court said the PSC can issue a permit before county assent, it must issue a conditional permit that is only good after county assent.  It was completely an issue of timing, not authority.  Skelly also forgot to mention that GBE's Illinois permit has been revoked by the Corporation Commission upon order of the Illinois Appellate  Court.  The court found GBE was not a utility, and even if it somehow manages to buy utility property and re-apply under the long process, there are unresolved issues at the Illinois Supreme Court in the RICL opinion regarding whether Clean Line's merchant business model prohibits it from being a public utility under Illinois law.  Chances of building GBE are slim to none.  But building GBE may not be what Skelly has in mind.
Clean Line’s founder and president, Michael Skelly, hasn’t yet decided what to do with Clean Line once it either sells or completes Grain Belt, he said. If it sells the project, it will have cash and a very small number of employees — a good position for the company, Skelly said. It’s still to be determined whether the company would make an exit from the market at that point or start working on a new project, he said.
Sell Grain Belt Express?

Why, who in their right mind would buy Grain Belt Express?

And is there some Failed Utility Ideas Gazette where one can take out a classified advertisement to sell used transmission project ideas?

It almost sounds like Michael Skelly is simply preening and polishing for the express purpose of trying to unload this turd on some unsuspecting mark with more money than brains.
So, here's a scenario that Michael Skelly didn't envision in the article.  What if he fails to sell the doomed GBE project?  Does he have the cash and expertise to complete it himself?  How does one man with little to no cash build a transmission line more than 700 miles long?  How far are we supposed to stretch belief here?

What if Michael Skelly fails to sell or complete GBE?  With no cash and no employees, a bad position for Michael Skelly, will he finally become humbled enough to admit that Clean Line is defunct?  Can he man up enough to release these landowners from his empty threats?  Michael Skelly needs to quit wasting everyone's time and money!
1 Comment

Dear Abby, Dear Abby...

8/1/2018

0 Comments

 
Dear Abby, Dear Abby
Bet you never thought
Telling your lies, that you'd ever be caught;
There is no PUC deadline for eminent domain
The deadline is yours, and your lie is insane.
In a recent news article about public hearings for the 133 eminent domain petitions filed by the Transource Independence Energy Connection, spokeswoman Abby Foster says:
Many landowners are in the process of negotiating rights of way, and Transource had to meet the PUC deadline for any easement which might require eminent domain, according to Transource spokeswoman Abby Foster.

"Those names may come off as negotiations happen," she said.

Transource will not proceed with eminent domain proceedings until the project is approved, according to Foster.

Landowners should meet with Transource right-of-way agents so they can understand the process and can negotiate the location of the line, she said. 

"They can still say no at the end of the process," she said. "It's up to the landowners whether to sign the documents."

A PUC deadline, you say?  It's been a while since I read one of Transource's eminent domain petitions (filed in May) but I don't remember anything about there being a PUC-imposed deadline to make those filings.  So, I gave it another look.  In one such petition against a landowner in York County, I found this admission:
However, given the construction schedule and in-service date for the proposed lEC-East Project, it is necessary for Transource PA to seek Commission approval to exercise the power of eminent domain in order to ensure that the lEC-East Project is constructed and operational by the in-service date.
So it's actually a self-imposed deadline by the company.  IT IS NOT A "PUC DEADLINE."

Where I come from, we call this a lie.  In fact, I'd categorize as the bold-faced variety.

What was the purpose of this lie?  Was it because 133 eminent domain petitions looks bad for Transource?  Especially when there was no reason whatsoever to file them.  Except maybe Abby's statement reveals Transource's reasoning...  the company is STILL trying to get landowners to negotiate.  But landowners are STILL routinely slamming doors in Transource land agent faces.  How many is "many," Abby?  The dictionary defines "many" as "a large number."  133 is a large number, and many of those individuals have refused to negotiate.
Miss Abby, Miss Abby, I have a complaint,
The truth is the truth and truth this just ain't
So, listen up, missy, and listen up good
Stop telling your lies and go back to your 'hood.
Landowners should NOT meet with Transource right-of-way agents... unless they just want to amuse themselves "negotiating" the location of the line to Nick Akin's backyard.
0 Comments

The Lessons of Wind Catcher

7/30/2018

1 Comment

 
In the wake of Wind Catcher's cancellation on Friday, there was celebrating to be done.

Just like that?  Yes, just like that!  It's over!

While many transmission opposition battles are marathons that try the finances and patience of entrenched opposition, Wind Catcher was a sprint to the finish.

I think this is maybe the best victory news story I've seen come out of one of these pitched battles.
Never underestimate the power of the people.  Good advice from an extraordinary lady with a huge heart who stepped up to the challenge Wind Catcher presented and did whatever she needed to do to stop it, even when she had to step outside her ordinary comfort zone.  And even though she got emotional and ended up crying during almost every TV news interview, she persevered.  And on Friday, she was smiling!  That makes my heart happy!

Landowner Maurice Storm hit several truths head on in his comments.  First, "It was just massive corporate greed disguised as green energy and consumer benefits."  This not only so succinctly describes Wind Catcher, but every other "renewable" project hounding the Midwest in recent years, and resonates deeply across projects and state lines.  It's not about "green energy" to energy corporations, it's about greenbacks.  It's the same energy story that has been told again and again for more than 100 years, that of out-of-state corporations mining centralized energy sources in less populated states for their own financial benefit.  And it will never change until the pious environmentalists and urban parasites these corporations serve begin to take responsibility for their own energy use.

Storm also dug deeply into AEP's corporate corruption:  "It's hard to believe with the kind of lobbying budget these guys have to buy influence in state governments and regulatory affairs that they still couldn't get it done."  Is this a sign of regulatory morality, or was this project, as Storm suggests, really just so bad that it couldn't be shined up and packaged for approval?  I mean, how much corporate arrogance can a regulator take before it turns on them and bites?  The worse the projects become, and the more corporations lean on regulators to look the other way and acquiesce, the stupider it makes regulators look.  I think AEP reached saturation levels with Wind Catcher.  It was a step too far.  Never overestimate the power of corporations.

The reporter thinks this project will become one for the textbooks, and he may be right, for a lot of reasons.  But his reason was the way AEP treated landowners in Oklahoma.  Lonni summed it up best, "You don't treat people that way."  That's not the way to do business in Oklahoma, or the rest of rural America.  Applying the business practices of Columbus, Ohio, to Tulsa, and other locations in Oklahoma, wasn't just a bad plan.  It was a stupid plan.  It was an arrogant plan.  A plan that had virtually no chance of success.  For every landowner AEP and its agents harassed, belittled, and lied to, the resolve to resist the project just got stronger.

No harm, no foul, right, AEP?  Not exactly.  You woke the sleeping giant, and you filled him with a terrible resolve.  While Wind Catcher fades away, a stronger, braver, and more engaged citizenry emerges determined to shape its own future to avoid being victimized again.  AEP shall reap what it has sown.
1 Comment

Wind Catcher is not only merely dead, it's also most sincerely dead

7/27/2018

3 Comments

 
Texas Commission Decision Results in Cancelation of Wind Catcher Project

TULSA, Okla., July 27, 2018 – Public Service Company of Oklahoma (PSO) today announced it is no longer pursuing its proposed Wind Catcher Energy Connection project following a decision by the Public Utility Commission of Texas on July 26 to deny approval of the project. The project had previously received approvals by the Arkansas Public Service Commission, Louisiana Public Service Commission and Federal Energy Regulatory Commission. A decision was pending at the Oklahoma Corporation Commission.

Announced a year ago, the $4.5 billion project would have provided PSO customers with low cost wind energy from a 2,000 megawatt wind farm in the Oklahoma panhandle. Combined with a dedicated power line to deliver the energy, Wind Catcher would have lowered electric bills by $2 billion over the life of the project, created thousands of jobs during construction and generated hundreds of millions in much-needed tax revenue for the state.

“We are disappointed with the decision in Texas that resulted in the cancelation of the project. Wind Catcher represented an extraordinary opportunity to provide our customers with low cost, clean Oklahoma energy and create a positive economic impact across the state,” said Steven Fate, PSO Vice President of Regulatory and Finance. “We remain committed to finding new solutions that add value for our customers. All of us at PSO deeply appreciate our partners and supporters for their commitment to the project.”


Congratulations, Oklahoma!  You did it!  You persevered and slayed the giant!

And now I'll trot out "the song."

Celebrate!
3 Comments

Texas PUC Denies Wind Catcher

7/26/2018

6 Comments

 
The Public Utility Commission of Texas just DENIED a CCN for AEP's Wind Catcher project.

Wind Catcher is done.
And here's a perfect example of how mainstream media takes its direction from corporations.

Largest U.S. Wind Project Dealt Potentially Fatal Blow in Texas

Potentially?  No, Wind Catcher is dead.  Not potentially dead.  Laying on the side of the road in a matted mess while being feasted on by flies and vultures dead.

Because Bloomberg doesn't want it to be so, and because Bloomberg would never, ever report a fact without the permission of a corporation, Bloomberg pretends there's some way for AEP to take Wind Catcher for a Weekend at Bernie's.
“We’re extremely disappointed in today’s Public Utility Commission of Texas’ decision rejecting our Wind Catcher proposal,” Melissa McHenry, an American Electric spokeswoman, said in an email. “We are evaluating our options.”
Options?  Okay, lets evaluate your options, AEP.  You can spend months asking for rehearing in Texas and then appealing the denial in the courts while taking on billions of dollars in debt to build the project.  You can reassign all the Texas costs to Louisiana and Arkansas, since they approved it, and let Texans have that stuff for free.  You can try to take the project merchant, apply for negotiated rate authority, and then try to find enough customers to finance it while taking on billions of dollars of risk that you won't find enough customers.  You can build this project and operate it at a loss by providing real customer protections.  There are no good "options" here.  The best option is to abandon the project and withdraw your application in Oklahoma.  Done.  Move on.

Honestly, after yesterday's earnings call I'd have thought you had the whole abandonment packaged and ready to go.  Obviously AEP expected to be denied in Texas, Oklahoma, or both.  Maybe this guy was kidding himself about how much time he had.
Picture
Awwww.... who's a gloomy gus?  Why don't you go have some nice beer and chicken wings?  Play some music.

Maybe you should have listened to this one months ago.
Everyone saw this coming but you, AEP.
“Looks like curtains to me,” said Paul Patterson, an analyst at Glenrock Associates LLC. “Almost everyone was opposed to this. Barring any big concessions from AEP, it looks to me like it’s dead.”
What was it you told analysts again on your earnings call yesterday?
Ali Agha - SunTrust Robinson Humphrey, Inc.
Thank you, good morning. Good morning. First up, on Wind Catcher, Nick, to be clear, if either Texas or Oklahoma does not approve, can the project still go forward or do you need both of those approvals for this project to happen?
Nicholas K. Akins - American Electric Power Co., Inc.
Yeah. My going-in assumption is we need both of those approvals, because these are regulated jurisdictions and that's where the needs are. And so, our – certainly, our strong preferences for that project is sized based upon the wind farm that's in existence with the transmission line and to do something different than that would be suboptimal so, we're really focused on making sure that all of the jurisdictions approve it.

Paul Patterson - Glenrock Associates LLC
And then, also – and just to clarify on the Ali Agha's question. There is really, I guess, no sort of Wind Catcher light or – I mean, basically, it's kind of you guys might do other things, obviously, you're always looking for things and other opportunities, but it sounds like, essentially, it's kind of – this deal is kind of – it's kind of a pretty much not really given to any significant modification, if this doesn't have – if there's a rejection or something like that, we shouldn't think of there being a sort of Wind Catcher light opportunity per se with respect to this project, is that correct?
Nicholas K. Akins - American Electric Power Co., Inc.
That's correct. I think you could see, I mean, obviously, with the integrated resource plans that we followed, you may see smaller projects develop in some fashion but they could be renewables, may not be renewables. So, you really – but you won't see another Wind Catcher-like project because that one has – that one's very unique in its scope and scale and the benefits provided. And so, it's – you're probably moving to either less efficient type of opportunities and there certainly will continue to develop those kinds of options. But keep in mind, you should look at AEP as a 5% to 7% foundational growth stock with all these little incremental opportunities.

There are no "options."  Wind Catcher is done.  Anything else is just stupid.

Look at this.  That huge dip coincides with the denial in Texas.  However, it looks like investors shook it off and didn't sit around dithering over "options."
Picture
Since the media is so slow on this one, go watch the video of the PUCT meeting for yourself.  To get right to the punchline, click Item 4 on the menu on the right, then fast forward to about minute 40.
Wind Catcher is over and done.  It was so ambitious from the outset that it bordered on insane.  Maybe AEP ought to look at its management and make adjustments.  Who looked at the faces of the Texas PUC during the July 12 Open Meeting and thought there was a good chance they would approve this thing?  C'mon, you were only fooling yourselves!  So, who isn't getting their bonus this year because of this?  I figure if all the bigwigs don't get a bonus it just about might pay for the "tens of millions of dollars" already spent on a project that never stood a chance.

This time the risk is all on you, AEP.

6 Comments

Miz Tootie Sugarbush's Review of AEP's 2Q 2018 Earnings Call

7/25/2018

4 Comments

 
Well, goodness, y'all.  Miz Tootie had to rise and shine quite early this morning to listen in on American Electric Power's 2nd Quarter Earnings Call.  Good heavens!  All those acronyms and numbers Mr. Brian was gushing, just a mile a minute, a gal could upset her delicate digestion just trying to keep up!  Miz Tootie has no idea what he was talking about, and can we be frank here... Miz Tootie simply doesn't care about those things.  Miz Tootie only wanted to hear about AEP's Wind Catcher project.

That nice Mr. Nick just talked a blue streak about Wind Catcher to start things off.  I thought he was never going to stop to take a breath, or even to make a reference to an old rock song, and was simply going to pitch forward onto the conference table and gasp for air.  But he persevered in the spirit of the old South.  You're such a trooper, Mr. Nick!

Miz Tootie thinks he said that he had worked a deal with his lovely suppliers to get a 4-week delay in his next notice to proceed on the project.  Hot as it's been, that's probably a good idea.  A body just can't move too fast in the summertime or it's liable to get all red in the face and begin to perspire.  We have to keep our cool.  Miz Tootie thought she heard Mr. Nick say August 31 was the newest deadline for a decision on the project.  He reasoned that would take them past the primary elections in Oklahoma so that they could wrap up "contemplating" an order without distraction.  Miz Tootie just can't imagine what distractions he meant, unless maybe it's gathering campaign contributions.  He just couldn't have been insinuating that the Commissioners weren't paying full attention to their stately duties at this time.

Miz Tootie's head was positively spinning when Mr. Nick launched into a football analogy.  "We're deep in the red zone... blah.... blah.... blah."  He was talking lickety-split just like those sports announcers on TV.  Miz Tootie is sure he practiced that in front of a mirror.  What a great performance!  Miz Tootie doesn't dabble in football so the analogy was lost on her.  How many better ways are there to spend your time when the weather becomes cool and crisp and mother nature puts on her party dress for the Fall Cotillion than sitting in front of a television set?  Miz Tootie simply wouldn't be caught dead indulging in such a grotesque and classless pursuit.

But then he mentioned beer and chicken wings.  Miz Tootie has been known to enjoy a beer or two during a harvest festival, but chicken wings are ghastly things!  The only civilized way to eat chicken is in a cool, creamy chicken salad with pecans and apples, served in a luminous globe on a bed of delicate baby lettuces with a tall, icy glass of sweet tea.  Miz Tootie simply must invite Mr. Nick over to learn about the finer things in life.  Chicken wings, indeed!

Mr. Nick said that his company "gave it our best shot" on Wind Catcher.  Miz Tootie imagines it was quite like the effort she recently made to save her petunias from the Japanese Beetle swarm.  Luckily, petunias are on sale down at the garden center, so she simply tossed the raggedy old things in the compost pile and bought some new ones.  Just like AEP, Miz Tootie's garden is still strong, even though she chucked out those once lovely petunias.

Miz Tootie was positively delighted with Mr. Nick's choice of song reference for today's earnings call.  It's a lovely song, isn't it?
Yes, and how many times can a man turn his head, And pretend that he just doesn't see?

The answer, my friend, is blowin' in the wind...

Yes, Mr. Nick, how is it that you just don't see how your project would ruin the future hopes and dreams of hundreds of Oklahoma landowners?  Miz Tootie hopes there's nothing wrong with his vision!  It seems a bit myopic.

Miz Tootie got the distinct impression that the answer Mr. Nick expects to be blowing in the wind in Texas and Oklahoma is a resounding NO.  What other reason would he have to refer to Wind Catcher in the past tense in response to the first question from Ms. Claire?

Wind Catcher was incremental...
 Who else caught that unseemly slip?  Miz Tootie dearly hopes all those earnings call analysts had their lie detector machines plugged in and set to "high" this morning.

Miz Tootie thought Mr. Nick would just about exhaust himself trying to talk fast enough to answer Mr. Ali's probing question.  Mr. Ali wanted to know why Mr. Nick's project decision deadlines were just about as slippery as a fat garden slug, and when Mr. Nick would make the call to walk away from Wind Catcher because it was pressuring his company stock.  Mr. Nick had a very long story to stutter through, and honestly Miz Tootie was getting sort of bored.  But when Mr. Nick mentioned a 60% off sale, Miz Tootie's ears pricked right up!  But she didn't quite catch the location.  Miz Tootie hopes it's Belk's, she could use some refreshing of her modern, southern style!   Mr. Nick said something about a deadline of August 31, so Miz Tootie is looking forward to a late summer shopping trip!

Mr. Paul wanted to know what Mr. Nick thought was likely to happen in Texas on Thursday.  Miz Tootie thinks it's going to be dreadfully HOT in Texas on Thursday, but Mr. Nick is nothing if not optimistic.  He thinks it's more likely that he'll just have to answer a few questions.  As if those lovely people in Texas have nothing better to do than play 20 Questions with Mr. Nick and his friends.

Miz Tootie thinks she heard Mr. Nick making plans for neutralizing his company's loss on Wind Catcher by reducing his O&M in 2019.  Miz Tootie finds it quite distressing to contemplate the electric service needs of customers like herself being run like a 60% off sale at Belk's next year.  Miz Tootie hopes Mr. Nick's O&M cuts won't do anything drastic that affects customer service but will instead focus on cutting the fat overload in AEP's transmission planning department.  Wouldn't that be just desserts?  Who doesn't love a delicious plate of Strawberry Schadenfreude... err, Miz Tootie meant to say shortcake.  Strawberry Shortcake.

And finally, Miz Tootie never delves into unkindness, and she believes it was quite unkind of Mr. Nick to say that Mr. Hunter is "way off base."  Miz Tootie's mama always said, "Tallulah," (Mama never was fond of endearing nicknames and insisted on calling Miz Tootie by her full name).  "Tallulah," she said, "If you don't have something nice to say about someone, you should say nothing at all."  I'm not sure where Mr. Nick was raised to speak ill of that lovely Mr. Hunter that way, and in such a public venue, too, but maybe he wasn't as fortunate as Miz Tootie to be raised in one of the best Southern families.  Bless his heart!

And now that Miz Tootie has had her curiosity about Wind Catcher satisfied, it's time to move onto more fruitful pursuits (and couldn't we all benefit from moving on), like supervising the pool boy and planning entertainment for the upcoming Southern Heritage cotillion.  It's just going to take your breath away, y'all!
4 Comments
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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