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How much do you want to pay for PATH in 2011?

9/12/2010

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The PATH companies have submitted their Projected Transmission Revenue Requirement for 2011.  They are projecting a 2011 revenue requirement of $36,895,492 for recovery of dollar for dollar costs such as O & M and income taxes.  They also recover a return.  The big spending, however, ends up in the rate base.  The amount of the yearly revenue requirement will be collected beginning January 1, 2011 from the 51 million rate payers in the PJM region.  That means you!  PJM pays the PTRR to PATH and then bills this amount to your electric service provider, who passes the cost on to you in your monthly bill.

The formula rate set by FERC is administered by PJM through the Open Access Transmission Tariff (OATT) Attachment H-19A & B.  PATH is required to submit a complicated-looking set of documents twice a year to first collect their projected revenue requirement, and then to report actual spending when the year ends.  At that time, the actual is compared to the projected amount which has been collected throughout the year and an over recovery is refunded, or an under recovery is added to the next year's recovery (process known as "true up").

Now, herein lies the problem.  Nobody pays any attention to how much they spend or whether or not it should be an allowable expense!  That is the job of "interested parties" like you (and your state PSC, who doesn't pay attention either).  This "business as usual" scenario has been going on forever and is costing you money.  Want to do something about it?  Here's how:  Wednesday, October 6 at 10:00 a.m., an "Open Meeting" on PATH's 2011 PTRR will be held at Pillsbury Shaw Winthrop Pittman, 2300 N Street, Washington DC.  If you cannot attend in person, you may attend via conference call.  This is your opportunity to have PATH's proposed spending explained to you by Allegheny Energy's Assistant General Counsel, and your opportunity to ask questions.  We are urging all citizens to get involved in how your money is being spent! To attend the meeting either in person or by phone, here's what you need to do:  RSVP to [email protected] by September 30 with  your name, address, name of person or entity you are representing, and whether you will attend in person or via phone.  You may also RSVP via phone at 724-838-6894.

Here's just a sample of what may be discussed at one of these meetings:  "Safety, Education, Siting and Outreach Advertising".  This expense ends up in the O & M total. This is the cost of all PATH's propaganda advertising that you've seen and continue to see.  Ever wonder how much that costs and who's paying for it?  In 2009, PATH recovered $2.1 million for advertising costs.  In 2010, they are collecting $1.78 million.  In 2011, they project only $400,000 in advertising costs.  But, what happens if they spend more?  No biggie -- they just collect it from you the next year if the true-up reveals they didn't collect enough. Interested enough to send in your RSVP yet?  I guarantee you the questions for Randy Palmer are going to get a lot harder this time.

If you're one of our readers from outside the PJM region, or an opponent of another transmission project, you can do the same thing on your own project of concern.  I won't say it's easy to figure this stuff out, but anyone can do it. You don't need to be an accountant, and while a background in corporate accounting may help, it is not a pre-requisite.  Contact [email protected] and I'll get you headed in the right direction.

And speaking of meetings, check out the new list of meetings announced on our Events page.  There's  new content sprinkled around the website, so if you're a straight-up blog reader, we welcome you to look around again for new stuff.
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Name calling and condescendence as a strategy

9/9/2010

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My friend,  Esther, recently sent me a link to a 2009 interview with AEP CEO Michael Morris entitled, "You have to tell people the truth".  I think Morris wouldn't know truth if it snuck up and bit him on the rear end, but I found it quite interesting nonetheless.  You can watch the video of the interview (you have to join to see full version, but it's free) or read a summary.  In the interview, Morris states that demand forecasts are often wrong (really?  you mean like PATH's fictional "need"?)  He also runs on and on about how transmission should be regulated at the federal level.  It is essential that the allocation of cost be spread to all ratepayers because the "benefit" of an interstate electric transmission grid will inure to everyone who lives in this country (rah, rah, wave your flag!)  If transmission were under federal control, you would see a "tremendous amount" of transmission capacity added to the system. Sure you would -- AEP and other energy companies would be lining up to build new transmission at no cost to themselves and rake in a hefty return on equity, exactly the motivation behind PATH.  Beware of what he's saying here -- AEP has plans to circumvent state-held control of transmission decisions and have the cost of building his "national grid" paid for at your expense. This bears watching.

But here's where it gets really interesting -- Morris starts talking about "NIMBYs" and the "inertia in this country" that causes people to say "nothing in my backyard" when they flip on the light switch.  So, Mikey, what's in YOUR backyard?  Swimming pool?  Tennis court?  Stable of expensive foreign sports cars?  Until you're willing to trade backyards with a few friends of mine, shut your pie hole! It's really easy to call names and pontificate when it doesn't affect you, isn't it?  He goes on to say that "the American people are equally bright (reference to earlier comment about AEP employees being bright) and all you have to do is tell people the truth".  In that case, we've been doing your job for you for the past two years -- telling the American people the truth, and they get it.  Oh boy, do they get it!  They all know that PATH is a greedy scam.

And, what about Allegheny Energy's take on "NIMBYs, BANANAs and NOPEs"?  First, I just have to get this out of my system -- QUIT ABUSING THE APOSTROPHE!  An apostrophe is used to show possession or to take the place of missing letters in a contraction.  It is NOT used to indicate a plural noun.  Okay, now back to the show...

Aldie Warnock of Allegheny Energy actually embarrassed himself giving this inspid presentation at a NARUC meeting.  He listed the following "problems" with transmission expansion:  NIMBY's, BANANA's, NOPE's (yes, I'm shuddering), Viewsheds, Federal Lands, Heritage Zones and Conservation Easements.  I've got one more for ya -- LACK OF NEED!  He then goes into the problems they encountered with the TrAIL line.  Pay particular attention to slide 18, TrAIL Timeline, "November ELECTIONS!", this will come into play later in this post. He details his "Public Opinion Findings" that just make me laugh!  How out-of-touch with the actual public is this guy?  Most of these are the absolute truth and can't be fixed, except for the last two:  "Third party validation can impact the business communities views" (shudder again) and "Residents listen to their local business and industry". Aldie, nobody believes anything FERC, DOE, and especially PJM, say anymore -- they've cried wolf regarding the need for PATH a few too many times to retain any credibility. As far as residents listening to local business and industry -- nobody believes them either, and because they're local we already know their reputation and word travels fast when power company-funded front groups are mixed into the equation. Bad idea!

He finishes up with the "Lesson's Learned" (shudder), but it's readily apparent that Allegheny Energy hasn't learned these lessons at all!  "Education, Education, Education, Early and Often!"  The ship has already sailed on this one, and PATH wasn't on it.   Oops!  Beat to the punch by the opposition!  "Very clear and concise messaging"  Ship.   Sailed.  The minute you hired Charles Ryan Associates. "Tours for Media and Public Officials" -- we all know how great that one worked out, don't we?  Can you say public relations disaster?  "Third Party Validators" -- great idea, if you had any real friends at all and didn't have to pay them to pimp your project.  "Companies need ALLIES".  See answer to last bright idea.

If you thought that was pathetic, Holly Kauffman of Allegheny Energy revamped the presentation (and cleaned up some, but not all, of the apostrophe abuse) and presented it again at an EEI meeting.  Holly adds "WIFM (What's in it for me?)" to the list of "problems".  Great -- but you don't have anything to offer.  Anything at all.  She also adds two slides entitled "Public Concerns" and offers this unintelligible gem, "Can't see electric when line is overloaded".  ???  If you think that's bad, she also offers some information that is JUST PLAIN WRONG, such as: "Lack of Understanding of the Legal Process".  Apparently she must have been referring to herself because under this heading we find, "Right to access properties to do studies necessary for CPCN and permits".  PATH has no such right!  Do you suppose this is where Louis Berger Group got their instructions?

Read her rendition of "Opposition Topics".  Holly's confusion intensifies here because some of these are actually power company strategies, such as:  the entire concept of fearmongering, among which she details "Federal Government will over rule State's Authority" (how many times have they played the FERC card in the PATH case?); "Fear of neighbor retaliation if ROW is signed" (they put this idea in landowners' heads to coerce them to sign); and the best one, "Put public officials on the spot before elections" (remember Aldie's TrAIL Timeline?)  The last one is a real screamer, "Not held accountable like utility to be factual in statements".  Oh, boy, if someone is holding the utility accountable for their lies, there's a HUGE debt waiting to be paid!  The rest of these topics are true... does the truth hurt so much that you need to try to garner sympathy by mentioning them?

See slide entitled "Other CPCN Hearing issues".  Holly continues to whine about landowners not allowing them to do their surveys before having a permit in their hand; and "Agreements reached between parties in case were viewed cynically because negotiations are confidential".  No, Holly, they were viewed cynically because the PSC staff recommended that TrAIL's permit be denied and Governor Manchin's interference with "closed door" meetings is what got you your permit.  It was crooked and illegal, you twit!

It's time to write a new chapter in their book of strategy. They're being soundly pummeled by the opposition on all fronts.  Must be because their strategy sucks.  After PATH is defeated, maybe I'll let them know exactly what went wrong.  Or maybe I'll just pack up my bag 'o tricks and move on to their next project ;-)


Addendum:  For more about how FERC, power company, coal company and political players arrogantly conspire against us "little people", visit Calhoun Powerline for quotes from the 2005 Charleston Love Fest, such as Chairman Wood of FERC who said, “[I] hope we don’t have that transmission project become common dinner table talk for the average citizen before we actually take care of it.”
18 Comments

Keep moving power forward... to New Jersey!

9/8/2010

6 Comments

 
I hear that PATH has begun their new advertising campaign, and like the greatest of straight men Charles Ryan Associates has set us up with the perfect punchline. Blah, blah, blah, old, decrepit grid, blah, blah, failing grid, blah, blah, blah *insert fear mongering here* To keep moving power forward!  Took about 1.5 seconds to tag the end of it ...to New Jersey!  And I'm not the only one who thought of it, so there ya go, another joke of an advertising campaign that's costing the ratepayers thousands, if not millions.

I haven't seen or heard the commercials, but those who have report that it has something to do with the grid being on the verge of failure.

Absolutely not true, but if it were, why would that be? Because companies like Allegheny Energy and American Electric Power don't want to "waste" money on things like maintaining and modernizing what they already have. There's no profit in that for them. Instead, they want to build a brand new transmission line and rake in 14.3%. This would be like buying a new car every time you needed an oil change.  Is that the financially smart thing to do? Only if someone else is paying for the new car, and that's precisely what's happening here.  The ratepayers in the 13-state PJM region are paying the cost of constructing PATH and the power companies bank a sweet amount of profit.

So, what happens to all those "old, decrepit, failing" transmission lines?  Unfortunately, those "old, decrepit, failing" transmission lines are what keep the power on in West Virginia, but we don't matter.  Classic, isn't it?  West Virginia is expected to bend over again and again and "sacrifice" for the good of the bastions of urban sagacity on the east coast.  Others are driving the shiny, new car we pay for, and we're left to make due with a beat-up, old, pick'em up truck that runs on two cylinders.

Fortunately, it doesn't have to be this way.  Dominion Virginia Power has proposed an alternative to PATH that will modernize existing transmission lines.
6 Comments

More "accidental" trespassing?

9/7/2010

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Looks like PATH is planning to have a bunch more trespassing "accidents".  From their website:

Starting in August and continuing through October, multiple contract survey crews will be working in public highway rights-of-way for the PATH project. Each contract survey crew, consisting of two or more people, will be using conventional and GPS (Global Positioning System) surveying equipment. The purpose of this activity is to support preliminary engineering studies for the PATH team. This surveying will not require the contacting of private property owners.


No, this doesn't mean they are considering routing PATH up the median of the interstate.  It means that they will be utilizing what they believe are public road rights-of-way to do their surveying.  Your property has road frontage (it doesn't have to be a highway) and as part of this, your property bordering the road is under easement for operating and maintaining the roadway.  This doesn't necessarily mean that your particular easement is "public" for PATH's purposes.  However, considering PATH's track record with "accidental" trespass on numerous properties in order to carry out their "surveys", be aware that many more "accidents" could reasonably be expected to happen, so keep an eye out and know the width of your particular easement so you can determine when the trespassing begins.  If you have questions about this, consult an attorney.


If you're lucky enough to live in a subdivision with a privately maintained road system, you have every right to ask them to leave immediately.


You could wake up one morning, open the blinds, and come eye-to-eye with a PATH survey crew set up on the edge of your property along the roadside, with no prior notification or request for permission.


There are lots of great dogs on death row at your local animal shelter.  Adopt one... or more!  They truly are a man's (or woman's) best friend.
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Once upon a time...

9/2/2010

7 Comments

 
Gather 'round kiddies, it's story time!

PATH counsel has filed the description of the current state of the PATH project in Maryland and Virginia, as ordered by the WV PSC last week.

I'm really surprised the first four words weren't "Once upon a time," because it reads more like a fairy tale than a factual description of case status.

Here's how often wishy-washy weasel words were used:

expect - six times
assume - twice
believe - twice
anticipates - four times
intend - once
potential - once

There are very few facts, just wishes.  Let's help them out.

Maryland hasn't set a procedural schedule yet.  There is a pre-hearing conference scheduled for September 28. PATH has no idea what will happen afterward.

They haven't filed an application in Virginia yet.

They have no idea what the procedural schedules will be in either state, therefore, they don't know if they will be aligned.

See how easy that was?  Facts -- short and sweet.

So why should West Virginia continue with this case right now?  Not to "align the procedural schedules in all three states", that's for sure.  Are counsel for PATH trying to mock the WV-PSC?  If the Commission believes PATH's wish list provides any assurance that the case will move forward with no further delays, then I'm 5'8" and blonde.
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Dunleavy supports StopPATH WV

9/1/2010

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While spending a week with other organizations and vendors in the Jefferson County Fair's "tent alley", you get to know your neighbors.  Great for conversation during slow times, borrowing and trading supplies and tools, and getting information about items of interest.


Today, I was sent a copy of an article posted on Jefferson County's Listener web group by fellow fair booth resident Ed Dunleavy that's worth sharing.  Thanks for the kind words of support, Ed!


After accumulating information during the last several years regarding the Potomac Appalachian Transmission Highline (PATH), I attended several informational meetings recently. As many County residents know, PJM, a regional electric transmission operator, created the PATH project and designed it to supply electricity to the NY- NJ market from coal-fired generating plants in the Ohio Valley. After researching this project, I've reached the opinion that the proponents of PATH should be embarrassed by this project. It is travesty being foisted upon the residents of Jefferson County solely to satisfy their corporate greed. 

The economic rationale for PATH is that east coast residents will pay higher rates for the electricity of Allegheny Energy and American Electric Power, two of the partners in PATH. However, the cost of PATH, which is estimated to be $2.1 billion will be paid for by ratepayers in 13 states including West Virginia, while none of the electricity will be delivered to WV ratepayers. 

The proposed route for the PATH transmission line has been changed three times and may be changed again; so if you haven't been interested in this project; watch out - because it could pass by your home eventually. Its present proposed route will deface and despoil the County's landscape and many of its historical sites and homes. 

In my opinion, PATH is a pending disaster for the residents of Jefferson County. Luckily, a coalition of Jefferson County landowners formed StopPATH WV, Inc. to intervene before the WV Public Service Commission. This group of citizens should be congratulated for their tireless dedication to both keeping the public informed and continuing the effort to stop PATH. Last week, I spoke with a number of this organization's members at the Jefferson County Fair. I urge all Jefferson County residents to visit their website at: www.stoppathwv.com. The website provides information needed to understand PATH and its potential to ruin the County's landscape. I also urge County residents to join in the effort to stop PATH, sign their petition, and donate to the cause.

Ed Dunleavy
Independent Candidate for
Jefferson County Commission
www.Dunleavy4CC.com 
0 Comments

PATH attempts to buy the town of Brunswick

9/1/2010

2 Comments

 
Word from our Maryland and Virginia compatriots is that PATH has donated money to "sponsor" Brunswick Railroad Days on October 2 & 3, and that their logo appears on the program.  PATH seems to be under the impression that they can buy the support and goodwill of the folks who attend the event, as well as the town of Brunswick, and get a little PR equity at the same time.  The Town of Brunswick seems to be under the impression that taking a handout from PATH won't affect the attendance of locals who are being severely impacted by PATH's plans.  Looks like Tweedledee and Tweedledum are going to be very unhappy together.  When you lie down with dogs, you get up with fleas.

I won't be attending this year -- I refuse to give my support to a town and event that is so easily bought by a corporation with ruinous plans, not only for my area -- but their own backyard as well!  If you feel the same way, be sure to let the town of Brunswick know how you feel.

PATH has been quite busy "donating" to the communities it's about to devastate -- to the tune of $53,054 in 2009.  Reminds me of a praying mantis, where the female eats the male's head after mating.  I have heard many tales of organizations that were approached by PATH as donation targets who turned the money down or gave it back when they realized whose name was on the check. In fact, one tale included a quote from the Allegheny employee being handed back a check from PATH as saying, "We can't give this money away!"  Indeed. Who wants any of your dirty money?

Oh, wait, that's really MY dirty money -- because these donations come from electric ratepayers and are used as a deduction to PATH's income (which comes entirely from the ratepayers) for tax purposes.  Who pays PATH's taxes? You do and I do.  It's all part of that great cost recovery set-up they were granted by FERC.

Just say NO to Brunswick Railroad Days this year.
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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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