StopPATH WV
  • News
  • StopPATH WV Blog
  • FAQ
  • Events
  • Fundraisers
  • Make a Donation
  • Landowner Resources
  • About PATH
  • Get Involved
  • Commercials
  • Links
  • About Us
  • Contact

FERC's Transmission Siting Federalism Coup

8/27/2011

1 Comment

 
In a previous post, we told you about FERC's new plan to take over NIETC designation in an attempt at trumping state authority to site new transmission projects.  This isn't a new plan, but simply another attempt at a plan that has been kicking around for more than two years.  In fact, the plan seems to have been born right around the time former FERC Commissioner Joseph Kelliher left the Commission and went to work as a lobbyist for NextEra Energy, Inc.  When current FERC Chairman Jon Wellinghoff was appointed, he was handed Kelliher's torch to federalize transmission siting and neutralize state authority. 

In the wake of the U.S. 4th Circuit decision in Piedmont Environmental Council v FERC that found FERC could not exercise its "backstop authority" and take over siting of a transmission line in the event a state issued a denial, FERC and the industry went back to Congress to "put in place" new legislation that created interregional planning and cost allocation to promote utility scale renewables and also made PEC v FERC moot by specifically granting FERC backstop authority in the event of a state's denial of a transmission line.   As discussed in an Energy Law Journal article from 2009, page 454, The 2009 Waxman-Markey bill H.R. 2454, Reid's S. 539, and Bingaman's S. 2454 were supposed to take care of FERC's and the industry's "little problem". 

Chairman Wellinghoff even testified before Congress during this time, begging for federal control of transmission siting in order to transport utility scale renewables great distances to load centers.  He also mentioned the need for interregional planning and cost allocation in order to achieve this huge, expensive grid build out.

"In summary, to achieve the Nation’s renewable energy goals, Congress and Federal and state regulators, including the Commission, must address in a timely manner the issues of transmission planning, transmission siting and transmission cost allocation. Congressional action to address all three of these related areas, particularly additional siting authority to build EHV transmission lines to accommodate high quality, location-constrained renewable energy, would provide greater ability to achieve these important goals. For example, both the bill that you, Mr. Chairman, have circulated and the bill introduced by Senator Reid last week address all three of these areas. I would be happy to work with the Congress as you consider legislation to provide a regulatory framework for tackling the challenging energy issues that we face, and to provide Commission staff technical assistance respecting any legislation the Committee may consider."

However, none of these pieces of legislation succeeded.  FERC and the industry had to find another way to federalize transmission siting in order to build their desired "national grid."

When their initiatives in Congress failed, FERC and the industry began to explore achieving their goals through manipulation of existing laws in order to bestow FERC with the authority it was not granted by Congress. 

Last fall, the Congressional Research Service was tasked with creating a report that "looks at the history of transmission siting and the reason behind the movement toward an increased federal role in siting decisions, explains the new federal role in transmission siting
pursuant to EPAct, and discusses legal issues related to this and any potential future expansions of the federal role.
"

According to this report, "The location and permitting of electricity transmission lines and facilities have traditionally been the exclusive province of the states, with only limited exceptions. However, the increasing complexity of the interstate transmission grid, as well as widespread power outages in recent history, has resulted in calls for an increased role for the federal government in transmission siting in an attempt to enhance reliability."

Get familiar with this theme, because it's prevalent throughout all the documents I've linked in this post.  Those "widespread power outages" apparently refers to the 2003 blackout in parts of the Northeast.  What's missing from this equation is the fact that the wide geographical reach of the blackout was caused by the increasing complexity and interconnected nature of our ever-expanding grid.  The blackout was caused by human error and lack of transmission line right-of-way maintenance as determined by a joint U.S.-Canadian task force.  It was not caused by lack of transmission infrastructure, therefore, building new transmission lines won't prevent another blackout.  A future blackout will only be exacerbated by addition of new transmission lines.

In addition, where are those "calls for an increased role for the federal government in transmission siting" coming from?  They're obviously not coming from the states or the citizen stakeholders, so they must be coming from the industry or the federal government itself. 

"The Energy Policy Act of 2005 (EPAct; P.L. 109-58) established a role for the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) in making transmission siting decisions. The act directed DOE to create “transmission corridors” in locations that would help to ease strain on the interstate electricity transmission grid. The act also granted FERC secondary authority over transmission siting in the corridors. This new federal role in a decisionmaking process that had previously been the province of state governments was predictably met with resistance from those seeking to protect local and regional interests. However, the process of creating “transmission corridors” and increasing the federal role in transmission siting has moved forward. Indeed, there have been calls for further expansion of the federal role in transmission siting by some policymakers and commentators. This report looks at the history of transmission siting and the reason  behind the movement toward an increased federal role in siting decisions, explains the new federal role in transmission siting pursuant to EPAct, and discusses legal issues related to this and any potential future expansions of the federal role."

Policymakers?  What is that word supposed to mean?  Who are these people?  Please read the entire report yourself.  I guarantee it will be a real eye opener.

"One of the most prominent commentators on transmission siting policy has been former FERC Chair Joseph Kelliher. Kelliher served as a FERC commissioner for five years and as FERC chair for three years. In a letter written to Senator Bingaman dated January of 2009, Kelliher, in the midst of his departure as FERC chair, wrote that Congress should grant FERC “exclusive and preemptive federal siting for transmission facilities used in interstate commerce.” Kelliher stressed the importance of expanding transmission facilities in order to address reliability concerns, encourage competitive wholesale markets, and respond to climate change concerns (by allowing “green” energy sources increased access to the grid). Kelliher was critical of the existing framework for electric transmission facility siting, including the EPAct transmission corridor scheme, saying that it “promises years of litigation, while diffusing responsibility for siting electric transmission facilities.”

And Kelliher scored a cushy, new job with a Midwest wind producer, NextEra Energy, who needed new transmission lines to move their product around the country, and are the ones who originally proposed this power grab to preempt state authority to FERC.  What a coincidence!

The CRS report concludes that the legal problem presented by state authority to site transmission lines can be solved through use of the Commerce Clause of the Constitution, giving Wellinghoff the green light for this new coup designed to put federal transmission siting in place.

"Legal precedent suggests that federal involvement with transmission siting would likely pass constitutional muster, assuming a connection to interstate commerce is shown." 

As both StopPATH WV and The Power Line told you in the spring, there is a huge race going on between midwest wind and offshore wind to corner the immensely profitable renewables market in the huge, coastal load centers.  However, energy corporations looking to profit from midwest wind need a $220B "national grid" to win the race.  Offshore wind is lagging behind, but it doesn't require a bunch of new land-based transmission due to its proximity to coastal load centers.  The concept of transporting midwest renewables thousands of miles to load centers doesn't make sense, physically or economically, when a different, more promising, renewable potential is located near load and is expected to be available in the very near future.  It looks like FERC has chosen to side with land-based wind by attempting to enable their necessary "national grid" that is going to be unjustly expensive to consumers and necessitate hundreds of thousands of citizens to sacrifice their properties for new transmission line rights-of-way.

The Energy Law Journal article comes to a conclusion that NIETC corridors and FERC backstop authority have not been effective in encouraging new transmission, and it has nothing to do with P.E.C v FERC.  In fact, new transmission was on the rise, even before the EPAct 2005.  The article concludes that the real driver has been FERC's transmission incentives.  In fact, they quote AEP as saying, "the Commission‘s incentive policies are the single biggest contributor to rapidly growing investor interest in new interstate transmission investment."  FERC currently has an open NOI on their transmission incentives policy.  Don't miss your opportunity to comment on the single biggest factor driving expensive and unnecessary transmission projects -- deadline is September 12.

Former FERC Commissioner Suedeen Kelly's dissent of Order No. 689 (2006) summed up the problem with federal transmission line siting quite well:

"The authority to lawfully deny a permit is critically important to the States for ensuring that the interests of local communities and their citizens are protected. What the Commission does today is a significant inroad into traditional state transmission siting authority. It gives states two options: either issue a permit, or we’ll do it for them. Obviously this is no choice. This is preemption."

Chairman's Wellinghoff's "three issues" mentioned in his 2009 testimony before Congress (planning, cost allocation and siting) are now being accomplished by doing an end run around Congress.  FERC Order No. 1000 took care of the planning and cost allocation.  It's not surprising that a review of the more than 60 requests for rehearing filed on the Order contain accusation after accusation that FERC has overstepped its statutory authority.  Now the last piece is being achieved by FERC's recent plan to assume DOE's authority to create NIETCs and wield the sledgehammer of interstate commerce to prevent any further meddling by states, environmental groups or citizens.  FERC's recent self-annointed "authority" will most likely be tied up in the courts for many years, which will allow offshore wind to catch up and ultimately allow sanity to prevail.

As long as energy corporate "persons" are permitted to continue unfettered lobbying of both Congress and FERC to advance their financial interests, we'll continue to see higher energy costs, a more vulnerable electric grid, eminent domain land grabs, increased federal preemption, a slow economic recovery in coastal states that are prevented from developing their own local renewables, and subversion of your individual rights.


Share
1 Comment
Laddie
8/28/2011 03:33:50 pm

That's a fine kettle o fish you've created now Jonny!

Reply



Leave a Reply.

    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.


    Need help opposing unneeded transmission?
    Email me


    Search This Site

    Got something to say?  Submit your own opinion for publication.

    RSS Feed

    Archives

    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories

    All
    $$$$$$
    2023 PJM Transmission
    Aep Vs Firstenergy
    Arkansas
    Best Practices
    Best Practices
    Big Winds Big Lie
    Can Of Worms
    Carolinas
    Citizen Action
    Colorado
    Corporate Propaganda
    Data Centers
    Democracy Failures
    DOE Failure
    Emf
    Eminent Domain
    Events
    Ferc Action
    FERC Incentives Part Deux
    Ferc Transmission Noi
    Firstenergy Failure
    Good Ideas
    Illinois
    Iowa
    Kansas
    Land Agents
    Legislative Action
    Marketing To Mayberry
    MARL
    Missouri
    Mtstorm Doubs Rebuild
    Mtstormdoubs Rebuild
    New Jersey
    New Mexico
    Newslinks
    NIETC
    Opinion
    Path Alternatives
    Path Failures
    Path Intimidation Attempts
    Pay To Play
    Potomac Edison Investigation
    Power Company Propaganda
    Psc Failure
    Rates
    Regulatory Capture
    Skelly Fail
    The Pjm Cartel
    Top Ten Clean Line Mistakes
    Transource
    Washington
    West Virginia
    Wind Catcher
    Wisconsin

Copyright 2010 StopPATH WV, Inc.