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Former FERC Commissioner now says regulations must adapt to "evolving system"...

8/13/2011

2 Comments

 
... industry influence suspected.  Film at 11.

Okay, enough with the silly headlines.  This isn't a satire or parody website (okay, well most of the time anyhow, I'm just in a mood tonight).  Expecting laws to adapt to the behavior of the utility industry, instead of expecting the industry to adapt to the rules created to regulate it isn't a joke.  Suppose instead of of a transmission grid we were talking about drug manufacturers.  Would we expect the regulations that keep that industry in line to adapt to the whims of whatever the huge pharmaceutical corporations wanted to do to increase profits?  Of course not.  But for some reason, the utility industry wants us all to jump on the bandwagon calling for less regulatory scrutiny so they can construct a huge, expensive, dangerously centralized "national grid" at the electric consumer's expense.

In this interview with former FERC Chairman Joseph Kelliher, now working for NextEra Energy Resources, Kelliher talks about ways to work around the federal court rulings that threw a wet blanket on plans for a huge transmission build out.  NextEra bills themselves as the "Largest generator of wind and solar power in North America."  And what does a generator of midwest wind need?  New transmission lines.  Hmm... cancel that call to Sherlock Holmes, we're not going to need him on this case after all.

There have been three major federal court decisions in the past couple of years that threw a monkey wrench into the system the utility industry had "put in place" courtesy of their bought and paid for legislators.  First, the 4th Circuit said that FERC's backstop siting authority could not be invoked in the instance a state denied a transmission line application.  Next, the 7th Circuit said consumers could not be forced to pay for transmission lines from which they receive no benefits and remanded cost allocation to FERC.  FERC responded with its recent Order No. 1000.  Finally, the 9th Circuit vacated the Department of Energy's "National Interest Electric Transmission Corridors" which gave FERC their backstop siting authority to override state decisions, claim eminent domain powers, and site transmission lines.

Kelliher claims that the 4th Circuit's decision was in error and that "it's not the last word" on FERC's backstop siting power.

He also thinks that, in response to the 9th Circuit decision, DOE should re-implement NIETCs by allowing utilities to create smaller corridors  "on request" for each project they propose.

He claims the EPAct of 2005 was flawed because it bifurcated authority between FERC and DOE.  He thinks all authority should have been given to FERC, similar to their sole authority for siting gas lines.  But, no matter, says Kelliher, there are ways to bend the existing laws to suit the industry's purposes, so all is not lost.  Even if the industry push for federal control of transmission line siting doesn't happen soon enough, the industry can still manipulate existing law to usurp state authority and run a transmission line right through your living room, whether you like it or not.

Check out this crazy PowerPoint presentation by the Western Governors' Association.  "Searching for a Unified Theory of Transmission and Renewable Energy Development in the West" is apparently governor code for "The Corporations That Stuff our Pockets with Cash Need to Make More $Money$ by Building New Transmission to Transport Renewables From Coast to Coast!"  Take a look at Page 12, "Existing Paradigm for Renewables."  This is the paradigm that makes the most sense, both from a physics and an economic standpoint.  Page 13, "Changing the Paradigm" calls for large centralized generation areas in unpopulated areas connected to the rest of the country through a big network of huge transmission lines.  It's a coast-to-coast blackout in the making and it's going to cost hundreds of billions of dollars -- paid for by you!

When are we going to stop letting corporate money elect the legislators who are supposed to be representing the people? 

Let's do a little math here -- don't worry, it's really got more to do with simple logic than algebra.  New transmission grid to serve "renewables" = additional cost to electric consumers of $220B.  The talking heads tell us that this new grid will make electricity "cheaper."  FERC says their new policy will ensure that people who do not benefit will not pay for it.  Who's going to pay for this grid?  Certainly not less people than are paying for transmission lines now, or it wouldn't be "cheaper."  More people will be paying for this transmission grid.  FERC's definition of "benefit" is going to be so broad that everyone is going to "benefit" and end up paying a lot more for their electricity in order to finance new transmission.

Now, imagine if renewables were developed on a smaller scale and localized to load and didn't require ANY new transmission lines?  Cost for this version of meeting public policy goals = $0.  Benefit to you?  Priceless!
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2 Comments
bh link
8/13/2011 09:59:26 pm

I know you didn't want to go into more digression about regulated industries, but we have just seen what happens when an industry controls the political process and "reforms" regulation to "keep up with changes in the industry." The financial industry. Look where that got us.

Thanks for the great exposition of Kelliher's opinions. He was the guy that Cheney "put in place" (in Mike Morris's immortal phrase) to implement the power company mega-transmission plans at FERC.

It is no wonder that Big Wind and Big Solar swallowed him up to push their agenda to get their grid plans back on track.

Reply
Keryn
8/13/2011 10:27:51 pm

A little sanity needs to be brought to the table ;-)

Another point that I didn't bring up is the economic boost that will come with development of renewables. If all our renewables are centrally located in a handful of states, that's where all the money and jobs will go. Why the rest of the states are willing to give all this away and settle for paying more for transportation of renewables developed in other states to meet their own goals makes no sense.

If the people continue to remain ignorant and drink the green koolaid, it will all be quietly "put in place."

Gotta love a good Mikey quote -- they're like cheap paper decorations... there's one for every occasion!

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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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