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Reporters Report News, They Are Not News

9/27/2016

8 Comments

 
NPR stooped to an all-time low yesterday when it "reported" on another reporter's one-sided story and didn't question the reporter's statements made on behalf of elected officials and landowners that were never interviewed for his story.

Arkansas Business reporter Kyle Massey stopped reporting the news and inserted himself into the story yesterday in NPR affiliate KUAR's "story" about the Plains & Eastern Clean Line.  Massey not only repeated his own story, but also made statements representing the positions of elected officials and mysterious "landowners" he never interviewed for his own story.  Must have been a pretty lazy day at KUAR, when reporter Michael Hibblen chose to let a reporter from another publication make statements on behalf of other people, instead of interviewing those people himself.  Ethics in journalism is dead at NPR.
Hibblen:  "So, I take it the property owners don't want to sell?"
Massey:  "Well, some of them don't want to sell.  And others sort of resent being forced to sell even though they may get a good price for the use of their land."
How many landowners did Massey interview for his story?  None are quoted in this story, so my guess here would be none.  Massey is assuming the position of landowners based on his interview with Clean Line Energy Partners.  It's not a fact, it's an assumption based on the opinion of a company who wants to take land from the subject landowners.  Who says landowners "may get a good price for use of their land?"  Did a landowner say that?  Only a landowner can determine if the price for use of their land is "good."
Massey:  "Well, the delegation would say the difference is that this is the benefit of private company that is Clean Line Energy Partners of Houston and it's a little different from an interstate in that Clean Line has not been declared a utility by the PSC so the Congressional delegation is framing this as an unprecedented partnership between the Department of Energy, which is backing this project, and a private company."
But did the delegation actually say that?  I didn't see Massey quote the delegation in his story either, so how factual is it for Massey to speak for them?
Hibblen:  "What would be the benefits of this project?"
Massey:  "Well there would be a few jobs in maintaining the line, but the main benefits would be to the landowners."
Did any landowner claim a benefit from this project?  I didn't see any landowners interviewed in Massey's story.  He's so far off the mark here!  Clean Line is doing nothing more than attempting to compensate landowners for use of their land.  Legally, it is supposed to be intended to make landowners whole for something taken from them.  It is not a "benefit."  Furthermore, landowners are only being offered Clean Line's idea of "compensation," which many landowners feel does not adequately compensate them for taking their land against their will.

Is Massey saying that the only reason Clean Line is proposing this project is to shower Arkansas landowners with monetary "benefits?"  That's ridiculous!  Clean Line is attempting to build this project first and foremost for its own profit.  It wants to take land from Arkansans for a one-time pittance and then use that land to make money for its corporate investors in perpetuity.

Massey also takes a position on  another monetary "benefit" for Arkansans:
"But the big number is the $147M in taxes that would flow to the 12 counties that the line crosses."
That's $147M over the estimated 40 year life of the project.  That's $3.6M per year, divided by 12 counties, to equal roughly $306,250 per county, per year.  What does that buy?  According to this news story, the annual budget of Crawford County, Arkansas, is more than $7.04M.  $306,250 is chump change in a budget that size.  In 2014, it cost $9,616 per year to educate the average public school student in Arkansas.  $306,250 divided by $9,616 is 31.8 students.  There are 37,122 tax payers in Crawford County.  $306,250 divided by 37,122 taxpayers equals $8.25 per taxpayer.  The cost for Crawford Countians to educate those 38 extra students without Clean Line's contribution would be $8.25 cents per taxpayer.  Clean Line is hardly reducing county taxes by any appreciable amount.  It's not really a "big number" after all.  Massey is assuming that Arkansans are a really cheap date if they would accept such a pittance in exchange for the burden of hosting a ginormous transmission line for 40 years.  How much would the transmission line reduce taxable property values during that 40 years?  How much would it cost the county in public safety spending over 40 years to support the building and maintenance of the transmission line, not to mention the additional cost of any accidents or line failures that Crawford County public safety officials have to deal with?  Is having this hazard in their community really worth what the county is being offered by Clean Line?

Massey claims "there would be cheap energy."  But he provides no facts to back up this presumption.  Does he have any firm quotes from wind energy suppliers?  Does he have any firm quotes on the cost of transmission for this energy?  No, he doesn't.

Massey claims there would be "lasting jobs" in Arkansas to supply the project.  Lasting how long?  Once the line is supplied, the jobs to manufacture parts go away.  Hurtado claims his project would take three years to build.  Therefore the jobs would be temporary, not "lasting."
Hibblen:  "Are the landowners and Clean Line talking possible settlements?"
Massey:  "Clean Line is negotiating with individual landowners and they have commitments with a great many of them as I understand it."
As he understands it.  Where did he get his "understanding?"  Was it from real estate records, or was it from Clean Line, who has a distinct self-interest to misrepresent the number of landowners who have "made commitments?"  Again, Massey doesn't quote any landowners for his information.

In addition, individual landowner "settlements" does not dispose of the legal issues regarding the U.S. Department of Energy's flawed interpretation of federal law to allow it to condemn property for this transmission line.  The lawsuit filed in federal court must be answered and adjudicated.

Massey shares that only "holdouts" are fighting it.  How many "holdouts" did Massey interview?  I would guess none.  How did Massey make his determination that the landowners who have not committed are "holdouts?"

Then he goes into advising landowners who are "holding out" that they are not "selling their land, they are only selling the easement."  I'm sorry, but Massey is not an attorney and has no business expounding on the legal ramifications of selling easements.  Landowners should consult a qualified attorney before selling anything.

Massey finishes up by stating that having an infrastructure project cross your land "can be emotional."  And he informs Hibblen that these landowners "can feel resentment toward being forced to give up any land that they don't want to relinquish."

That sounds rather dismissive.  Instead of addressing the very real and factual arguments of opposing landowners, Massey dismisses them as "emotional" and therefore not capable of rational thought.

Shame on you, Kyle Massey, since you didn't quote one landowner in your story!  I don't believe Massey interviewed even one landowner for his "story" upon which to base his thoughts and opinions about landowners.  That's unethical, from a journalistic perspective.
"So I think a great many people find this attractive and would be happy to have the money for the line coming through their land.
Who are these people?  Massey doesn't quote even one in his story.  He just "thinks" this is how they should respond, after all, it's not his property being crossed.

This whole "report" fairly screams desperation.   Clean Line is desperate to politicize this issue and marginalize landowners who are resisting efforts to "settle" with the company. That Clean Line found a sympathetic ear for their public relations scheme at Arkansas Business isn't surprising.  However, shame on you, NPR!  I'll never believe another one of your stories.
8 Comments

RICL Appeals Fall Flat

9/23/2016

0 Comments

 
I was obviously giving them much more credit than they deserved, but I sort of expected better than the exaggerated, whining dreck that RICL and its buddies filed with the Illinois Supreme Court. 

RICL Appeal
ICC Appeal
NRDC-WOW Appeal
IBEW Appeal

I didn't find it very appealing at all.  In fact, it only made me appreciate the decision of the Third District Appellate Court a little more.  I don't see where RICL and pals made any valid points, since much of what they complain about was already addressed in the decision they are appealing.

Let's examine RICL's points:

"The Appellate Court overrode the ICC’s interpretation and application of the PUA to erroneously hold that a CPCN applicant must already own or control utility assets in Illinois and have identified Illinois customers for the ICC to have authority to grant it a CPCN."

The Court said:
Rock Island does not own, control, operate, or manage assets within the State. In testimony before the Commission, Rock Island admitted that the project was in the planning stages and that it would only pursue construction if the company determined that it would be profitable in light of future market developments and financial support. Rock Island currently does not own any transmission assets in Illinois, nor does it have any agreements for service with renewable energy generators in this state. While the potential may exist for generators to purchase service on the line, no Illinois generators have agreed to use the proposed line.
The Court based its decision on the speculative nature of RICL.  Without any concrete plans to own or operate anything in the state, RICL cannot be a public utility NOW.

Second point:  "The Appellate Court departed from established principles of review and usurped the ICC’s role as finder of fact by reversing the ICC’s finding that the Project meets the “public use” standard."

The Court said:
The standard of review of the Commission’s findings of fact is deferential. Orders of the Commission are deemed prima facie reasonable, and the Commission’s findings of fact are deemed prima facie true. 220 ILCS 5/10-201(d) (West 2012). The Commission’s findings of fact may only be overturned if they are against the manifest weight of the evidence. Apple Canyon Lake Property Owners’ Ass’n v. Illinois Commerce Comm’n, 2013 IL App (3d) 100832, ¶ 57.

The Commission’s interpretation of statutory standards is also entitled to deference; however, reviewing courts are not bound by its interpretation of law. Citizens Utility Board v. Illinois Commerce Comm’n, 166 Ill. 2d 111, 121 (1995). The Commission’s interpretation of a statute is reviewed de novo. Commonwealth Edison Co. v. Illinois Commerce Comm’n, 398 Ill. App. 3d 510, 522 (2009). Where governing statutory language is clear and unambiguous, it must be applied as written, and there is no need to resort to extrinsic aids. Illinois Bell Telephone Co. v. Illinois Commerce Comm’n, 362 Ill. App. 3d 652, 657 (2005). Courts will not defer to an
agency’s construction where the statute is clear because “an interpretation placed upon a statute by an administrative official cannot alter its plain language.” Burlington Northern, Inc. v. Department of Revenue, 32 Ill. App. 3d 166, 174 (1975).

In reaching our conclusion, we acknowledge the Commission’s position that public utility status is not a prerequisite to seeking a certificate of public convenience and necessity under sections 8-406(a) and (b). The Act does not require an applicant to be a public utility before it seeks certification under the appropriate provisions. A plain reading of the statute shows that an applicant may seek public utility status while, at the same time, applying for a certificate of public convenience and necessity to transact business and construct facilities. See 220 ILCS 5/8406(a), (b) (West 2012). In this case, the issue is whether jurisdiction was properly conferred
based on the Commission’s decision that Rock Island was a public utility. We conclude that it
was not.
Third point:  "The Appellate Court decision denied a CPCN for a project the ICC found will be beneficial to the Illinois public, and will discourage developers from pursuing beneficial transmission projects into and across Illinois."

Huh?  Wha?  Does this have some basis in law?  RICL sort of talks about the Commerce Clause, but what does that have to do with this point?  The Court determined RICL was not legally a public utility under state law.  This was filed in the Illinois Supreme Court.  This is about Illinois law right now.

Here's the most ridiculous thing RICL said in its appeal:
Further, the Court ignored that it is perfectly logical for Rock Island to have no service agreements with customers before receiving its CPCN. Not only did §8-406 prohibit Rock Island from transacting utility business before receiving a CPCN, but customers will not contract for service on a transmission line that does not have regulatory approvals. Rock Island could not even establish pricing for its service before receiving its CPCN, since the ICC must approve a route for the line and could impose requirements with potentially major cost impacts – such as requiring that a
longer route, or one crossing more difficult terrain, be used, thus increasing the costs to construct the Project and provide the service.
I can't believe they had the nerve to say this!  Clean Line has priced its service and contracted with customers in Missouri to buy its service DESPITE its lack of a CPCN, an approved route or regulatory approval.  Who are you trying to kid here, Clean Line?  And even if it wasn't prudent to enter contracts before receiving a CPCN, RICL had a CPCN in Illinois for a year and a half before the Appellate Court ruled, but yet it never signed any contracts.  This is nothing but a big, fat excuse for RICL's speculative nature, and RICL's speculative nature is the reason it cannot be a public utility at this time.  The ICC's approval was based on a fantasy -- that all RICL's plans would fall into place and that it would do all the things it promised the ICC it would do.  The Court's disapproval is based on reality -- that none of RICL's promises mean anything until they actually happen.

But RICL isn't the only one with a really stupid statement in their appeal.  The Natural Resources Defense Council (NRDC) and Wind on the Wires (WOW), a couple of groups with financial interests in big wind, also stepped on their own toes with a whopper.
The Appellate Court also seems to misunderstand the physics of the transmission
system. The Project will deliver all of the electricity into Illinois, where Illinois consumers will consume some portion of the electrons. The uncontested facts in the record show that Rock Island’s equipment will convert the electricity from direct current transported on the Project into alternating current in Grundy County, Illinois, where the current will be injected into a transmission network owned by Commonwealth Edison and controlled by the regional grid operator PJM Interconnection.
It is NRDC and WOW who misunderstand the physics of the transmission system, and Clean Line's HVDC system in particular.  RICL's AC/DC/AC converter stations act as toll gates to prevent the injection of current into the transmission network owned by ComEd unless a customer has paid the toll to transmit power on RICL.  Customers who pay the toll have purchased the power transmitted.  Not all customers (and in fact currently NO customers) are located in Illinois.  While it's true that all electrons look alike, only AC electrons will flow on ComEd's grid.  Clean Line's DC electrons can only become AC electrons if the toll is paid by a customer to convert them, otherwise, nothing is converted and injected anywhere.  NRDC's and WOW's "understanding" of the grid is probably intended to mislead the court, because they really can't be that stupid, can they?

And I gotta wonder... did all these entities get together for study group or something?  Or did they simply pass around a cheat sheet?  The appeals are all basically the same and rely on the same dreadful misinterpretations of the Third District Court's opinion.  I guess they couldn't find any valid points, so they exaggerated and made crap up.

Now the other side gets a chance to answer and assert a little reality into this case.  Remember, the Supreme Court takes very few cases.  I don't think RICL and its pals made a very convincing case for the Supreme Court to take this one.

That leaves RICL DEAD IN THE WATER WITHOUT A PERMIT.
0 Comments

FirstEnergy Self-Dealing Scheme Not In The Best Interest of Potomac Edison/Mon Power Customers

9/22/2016

0 Comments

 
...so sayeth "The P3 Group," aka PJM Power Providers Group, a non-profit group of competitive energy providers in the PJM region collectively owning over 84,000 megawatts of generation assets.  P3 is joined by the Electric Power Supply Association (EPSA), a national power providers' trade association.

These two groups popped up with a comment this week in the West Virginia Public Service Commission case regarding the issuance of a Request for Proposals for additional power supply for FirstEnergy's Mon Power and Potomac Edison subsidiaries.

The power providers say that the PSC has the authority to require FirstEnergy to issue an RFP for additional supply, and that only an RFP will ensure that Potomac Edison and Mon Power customers get the best price for new generation.
The best and most appropriate manner for this Commission to fully examine potential supply options would be with the use of a broad, competitively neutral RFP in which multiple suppliers could actively compete to meet the needs of West Virginia consumers. This would ensure that all available supply-side and demand-side resources are transparently reviewed in accordance with the state’s applicable rules and laws.
It doesn't take a rocket scientist to figure out that soliciting competitive bids for power will produce the lowest cost.  But if you're FirstEnergy, you don't care about costs for West Virginia electric customers, you only care about your holding company's balance sheet and stock price.

The power providers quoted a research paper prepared by the National Association of Regulatory Utility Commissioners and the Federal Energy Regulatory Commission as support for an RFP:
The first key issue for incremental resource procurements is the design of safeguards to prevent potential improper self-dealing by the utility. Because the utility may financially benefit from the selection of its own self-build offer or a proposal from an affiliate, safeguards are necessary to ensure that the process is not improperly tilted toward the selection of such offers.
The power providers join the West Virginia Consumer Advocate Division, the Staff of the Public Service Commission, WV Citizen Action Group, WV SUN, and West Virginia Energy Users Group in calling on the Public Service Commission to order FirstEnergy and its subsidiaries to issue and RFP that will definitively and transparently determine the cheapest resource for adding additional capacity.

What is it FirstEnergy is trying to hide with its opaque self-dealing insistence that the purchase of one of FirstEnergy's own resources is a "good deal" for West Virginians?  Sunshine is the best disinfectant!
0 Comments

Community Participation in Urban Transmission Plans

9/21/2016

2 Comments

 
Building new transmission is hard.  Building new transmission in urban areas is really hard.  Building new transmission will always foment opposition of some kind.  When the proposal affects urban areas, opposition will be loud, widespread, and fierce simply due to the number of people affected and the lack of space to construct new infrastructure in an already crowded landscape.

I came across an article recently that provides an opportunity to compare and contrast the actions of two different utilities attempting to build new transmission capacity for short distances in urban areas.

Dominion needs to build new capacity in the City of Alexandria, Virginia.  In preparation, it convened a "resident-led work group" and involved city officials in coming up with a plan that was least objectionable to the city and residents.  By doing this, the affected individuals were allowed to "buy in" to a solution that they felt they had some control over.  By giving the affected community a (real or imagined) voice in selecting a solution, opposition was ameliorated.
“In my view, Dominion looked really hard at the input this community had and listened to us around the table. I’ve served on a lot of task groups in Alexandria, but this is probably the best I ever sat on.”
It probably bears mentioning that the Dominion proposals included underground options.
And Mayor Allison Silberberg touted Dominion’s proposal for the fact that both options keep power lines underground.

“The good news is Dominion put forward two alternatives that are, in the proposal, both shown to be underground in Alexandria,” Silberberg said. “That’s really good, because that has been a top concern. We are awaiting more info from Dominion with regard to the specifics, and then once we get that specific info from them, we will be reconvening the work group, which has been excellent, to go over these considerations and the two options.”
Underground proposals rarely gather the same kind of fierce opposition as overhead proposals.  So, good for you, Dominion, for being flexible enough to compromise in order to realize the goals of the project, and not stubbornly insisting on a configuration the community would reject.

Now, let's compare this to FirstEnergy's current kerfuffle in New Jersey.  FE affiliate Jersey Central Power & Light (JCP&L) wants to build a 10-mile transmission upgrade in urban Monmouth County, NJ.  And they want to do it overhead, along a commuter train right-of-way.  FirstEnergy has not consulted with the community, but is insisting on building the project to its own specifications.  Opposition has been huge, swift, and fierce.  Community opponents number in the thousands.  Legislators have gotten involved.  And opposition to this particular transmission proposal has leaked over into FirstEnergy's proposal for a transmission only utility spin-off in the state.  What a mess FirstEnergy has made of this project and its community goodwill.  There's no going back from this.

By refusing to take community suggestion, and insisting that it cannot bury the project along the train right-of-way (although Dominion seems to be able to do just that in Virginia), FirstEnergy has done nothing but encourage opposition to dig in its heels and spread like wildfire.  The MCRP will never be built as currently envisioned by JCP&L.  FirstEnergy cannot bully or buy its way to community support for MCRP.

It's time for some new thinking at FirstEnergy's transmission headquarters.  In days gone by, it was accepted practice for a transmission utility to simply buy enough community support to get a project approved despite community opposition.  A utility never had to compromise when it could buy enough support to fool regulators and provide "political cover" for elected officials to claim that the community at large supported the proposal.  A utility simply presented its planned project as a fait accompli and ignored any community opposition.  The times, they are a changing.

Dominion has accepted that there is a better way to get transmission built without widespread community opposition that delays projects and increases their cost unnecessarily.  FirstEnergy is still banging its corporate head against a brick wall, refusing to change, and causing delays and unnecessary costs for projects it does manage to get approved through third-party advocacy.

There is a better way.  And it works.  If FirstEnergy wasn't so mismanaged, it would clean house in its transmission department and restock it with folks from Dominion.
2 Comments

FirstEnergy's Coal Plant Purchase Has Cost You $130 Since 2013

9/20/2016

0 Comments

 
That's according to a recent report from the Institute for Energy Economics and Financial Analysis (IEEFA).

Back in 2013, FirstEnergy, parent company of West Virginia distribution electric utilities Mon Power and Potomac Edison, came up with a bright idea to sell the Harrison Power Station to itself in order to raise cash to shore up its sagging balance sheet.  The plant was originally owned by FirstEnergy's competitive electricity supply company, Allegheny Energy Supply.  When owned by Allegheny Energy Supply, the plant was required to cover its own operating costs and make any profits by selling electricity into regional markets at a cost higher than its costs to produce the power.  However, market prices for electricity began falling due to the glut of cheaper gas-fired generators, making it harder and harder for Harrison to compete and turn a profit.  FirstEnergy proposed that Allegheny Energy Supply "sell" the plant to its West Virginia distribution affiliates at a jacked up price.  Once Mon Power and Potomac Edison owned the plant, their ratepayers would cover the cost of operating the plant, with electricity sold to the power market at going rates.  Except the going rate for power not only didn't produce any profit for the company's ratepayers, it didn't even cover its own operating costs.  Therefore, ratepayers of Mon Power and Potomac Edison have been subsidizing the cost of operating the plant at a loss since 2013.  The IEEFA estimates that the bill for ratepayers has climbed to $164 million.  That equals roughly $130 in extra electric bill charges for every customer of Mon Power and Potomac Edison, paid to cover the losses of operating the Harrison Power Station.

The IEEFA calculated the costs by using monthly reports of operating costs and market prices submitted to the Public Service Commission since 2013.  The IEEFA report reveals that the plant has produced a net cost (not benefit) to ratepayers for 28 out of 33 months.  And future prospects for the plant turning a profit remain dim.

FirstEnergy "still believes the plant is still a good deal for customers in West Virginia."
Todd Meyers, a spokesperson for MonPower, responded to questions about the study by saying the company believes the purchase benefits their customers and that it supports coal mining.

“It continues to provide reliable, low-cost power to our customers, and has preserved the opportunity to use more than 5 million tons of West Virginia produced coal annually, supporting hundreds of coal miners with solid, family-sustaining wages,” he said.
No word on whether Meyers still believes in Santa Claus, the Easter Bunny, and the Tooth Fairy as well, but I recently bumped into a leprechaun riding a unicorn and he told me that he does.

What are customers of Mon Power and Potomac Edison paying for?  Are they paying for the electricity they use, or are they paying to subsidize the coal industry?  Or are they instead simply subsidizing FirstEnergy's quarterly dividends paid to shareholders?

And guess what?  FirstEnergy has recently proposed selling ANOTHER of its competitive coal plants to Mon Power and Potomac Edison, citing the "model" of Harrison as the basis for another "good deal for customers in West Virginia."  We can't afford another one of FirstEnergy's "good deals!"

Heads up, West Virginians, we're going to need all hands on deck to stop this one!
0 Comments

How Many Clean Line Supporters Are Actually Dead?

9/18/2016

0 Comments

 
The Consumer Energy Alliance recently got caught sending fake letters of support for a pipeline project to the Federal Energy Regulatory Commission.  One of the letter writers has been dead since 1998.

Hmm... Consumer Energy Alliance.... where have we heard that name before?  I know!  The Consumer Energy Alliance was behind the "EDJ Alliance" that was used in a lame attempt to drum up support for Clean Line's Plains and Eastern project in Oklahoma, Arkansas and Tennessee last year.  Since then, it has been suspiciously quiet... almost like it is dead itself.  And the Consumer Energy Alliance also pretended to speak in favor of Clean Line's Rock Island project at an Illinois Commerce Commission public hearing in 2013.  Clean Line is a "member" of the Consumer Energy Alliance, although it (along with all the other "members") aren't "consumers" at all.  The CEA represents "consumers" in name only, while it really represents the interests of its paying industry members.  That's what's called a "front group."
A front group is an organization that purports to represent one agenda while in reality it serves some other party or interest whose sponsorship is hidden or rarely mentioned.
In the recent pipeline case, attorneys for opposition groups have asked the U.S. Postal Service to investigate the CEA for mail fraud, since it stupidly mailed its fake support letters to the Federal Energy Regulatory Commission to be placed on the pipeline docket.  The attorneys have also asked FERC to
...immediately convene an independent audit of all public comment statements submitted to docket of Case No. CP16-22 since the opening of the comment period for the Draft Environmental Impact Statement; that the Commission strike Intervenors’ Exhibits A through O from the docket and grant leave to any intervenors to this proceeding to submit
further pleadings relating to striking other public comment statements from the docket; finally, that the Commission make a referral to its Division of Investigations, the U.S. Department of Energy Office of Inspector-General, the U.S. Environmental Protection Agency Office of Inspector-General, and the U.S. Postal Inspection Service.
The opposition groups claim "someone appears to have undertaken widespread criminal fraud to influence the outcome of this federal pipeline certificate proceeding." And have produced evidence that at least 15 of the letters submitted to FERC by the CEA were done so without the knowledge or permission of the purported authors.

The CEA answered the opposition complaint, requesting "... that the Commission decline to address Neighbors’ protest (the “Protest”) as its contentions are false and have no merit."  CEA goes on to claim that it has records to prove that the authors of the letters gave permission to CEA to create and mail the letters to FERC.  The authors claim otherwise in numerous affidavits.  In one instance, the author has been dead since 1998.  In another, a relative of an author claims she could not give permission because she has dementia.  Another author  interviewed by Newsnet5 said, "I’ve never said none of those words. I don’t have a typewriter, I don’t have a computer to make a letter as such.”

Here's how CEA explained this "misunderstanding."

As an energy consumer advocacy organization, CEA has developed a process of gathering grassroots support for affordable, reliable energy projects. As part of that widely accepted business process, CEA conducts automated telephone surveys with selected individuals. When an automated call is placed, and consistent with accepted industry practice, the call is directed to the individual listed in phone company records. The individual who participates in the survey is asked a series of questions from a scripted questionnaire to which he or she is requested to answer by pressing on the phone’s keyboard “1” for “yes” and “2” for “no”. But, it is the nature of automated surveys that the questions are not asked by a live person and there is no process to identify and confirm who answers the phone and responds to the question.

The survey used here began with an introductory statement telling the respondent that the Commission is considering whether or not to grant a permit to build the NEXUS pipeline and explaining the benefits of the pipeline, including creation of jobs in the region and reduction of energy costs for manufacturers and consumers. The survey continued with the express question on whether or not the respondent would give his or her permission to relay to the Commission his support for the pipeline. If the respondent replied with “no”, the survey would ask another question reiterating the importance of the Project and again ask the respondent if he or she would support the pipeline and authorize CEA to pass that view on to the Commission. On behalf of those respondents who indicated their support for the project and authorized CEA to forward that viewpoint to the Commission, CEA then generated the letter for the 347 individuals that were filed.

Moreover, it is implicit in the nature of any automated phone survey that from time to time there will be instances where the person who answers the phone and responds to the survey is not the person listed in the telephone company’s records as the householder. This would explain the inadvertent error that can occur when a supporting letter is generated in the name of the person listed as householder, but someone else actually answers the phone. So, even though the householder – in whose name the support letter was generated – may not be competent or even in agreement, the person who answered did respond affirmatively and authorize support for the Project. Similarly, in some instances the respondent may not fully understand the presented question, unintentionally answer it in the wrong way and later change his or her mind. Or, in some cases, the respondent may forget that the survey even took place, let alone that he or she gave the authorization for his comments to be filed with the Commission. CEA regrets any such misunderstanding or miscommunication that may have occurred.
So, CEA robocalls people and asks them to push a number on their phone and that constitutes permission to create and mail a letter in their name to the federal government?  One news account says that CEA robocalled 25,000 households, and from that it found only 347 people supposedly gullible enough to push the right button to give permission?  And even then, many deny ever getting the phone call in the first place.

I guess we can assume that the other 24,653 people contacted by the CEA did NOT support the pipeline, although CEA didn't bother generating a letter from those consumers expressing their opposition to the project.

CEA doesn't represent consumers.  CEA represents its paying industry members.  One of those members is Clean Line Energy Partners.

So, if you're a live person in relatively good health, you'd better get your comments opposing the various Clean Line projects filed with regulators now.  Otherwise, the CEA may submit comments supporting Clean Line to regulators using your name. 

What a bunch of dirty, cheating tricksters!
0 Comments

How to Disrespect the Court, by Clean Line

9/8/2016

2 Comments

 
If Clean Line wrote a guide to disrespecting the courts, it would probably sound a lot like this.

It's no surprise that Clean Line doesn't agree with the decision of the Illinois Third District Court of Appeals that voided the permit for its Rock Island Clean Line (RICL) project issued by the Illinois Commerce Commission.  What is sort of surprising is that RICL has taken to the media to appeal the appeal in the court of public opinion.  It's also surprising that Clean Line whined to a different Appeals Court hearing the appeal of the ICC's grant of a permit to the Grain Belt Express project, suggesting that the court should not rely on the Third District's Opinion, but allow arguments on its merit.  Since when is an appeals court the proper venue to appeal the decision of a different appeals court?

The Opinion of the Third District Court of Appeals is the rule of law unless and until the Illinois Supreme Court takes the case and issues its own opinion overturning the lower court.  The Illinois Supreme Court takes very few cases, saving its review for cases of great importance to the state, cases that disagree with prior Supreme Court rulings, and cases where a conflict has arisen between the opinions of different appellate courts. 

It doesn't matter what RICL's counsel thinks, what the ICC thinks, what the labor unions think, what the media reports, or what a smarmy RICL lobbyist pretending he's a lawyer spews to a reporter.  The only thing that matters is the opinion of the Third District, and that Opinion reversed the Order of the Illinois Commerce Commission that granted a certificate of public convenience and necessity and ordered the Illinois Commerce Commission to enter an Order consistent with the Court's decision.  It no longer matters what the ICC did in 2014.
Detweiler said the ruling ignores that the project would lower electricity prices for Illinois consumers as more power would be made available in the market. The new line would be designed to move up to 4,000 megawatts, enough to power 1.4 million homes.
There's no proof that the project would lower electricity prices for Illinois consumers.  No Illinois consumers have signed up for service on the project (and may never do so).  In fact, it's possible that all the power may be purchased by utilities in those mysterious "states farther east" resulting in not one electron being used by any person in Illinois.  Simply dumping power into an existing market doesn't necessarily lower prices if it creates an expanded market that encourages higher priced markets to begin to compete for available supply.
It's different than most high-voltage lines in that its developers aren't asking regulators to force captive ratepayers to pay higher electricity rates to finance the project. Instead, Rock Island is a "merchant" line and will be a success only if it signs up enough wind farm developers to pay it to move their output from low-population parts of the Dakotas, Minnesota, Kansas and Iowa to population centers like Chicago and the mid-Atlantic.
What makes RICL different is that it skipped the regional planning process whereby lines are found needed and the costs of building them are assigned to consumers who will benefit.  Being a "merchant" project doesn't make a project more consumer-friendly.  It just means that there is NO reliability, economic or public policy need for the project.  It is not needed to keep the lights on, make power cheaper, or meet state renewable energy laws.  Instead, it's a completely extraneous project built on the premise that voluntary customers may want to pay for it.  Therefore it is not a public utility worthy of wielding eminent domain over private property "for public use."  RICL has no customers who want to pay for its project.  The ICC's now voided approval depended entirely on hypotheticals -- something RICL would accomplish later to be granted a permit now.  RICL wants to be a utility now, although it will only legally become one later.  Chicken.  Egg.
The decision doesn't pass constitutional muster, [Detweiler] said.

"It's a terrible precedent—not just for us but any nonincumbent," Hans Detweiler, Rock Island vice president of development, said of the decision in an interview.

He argued that the logic of the ruling is that only established utilities like ComEd and Ameren Illinois can win approval for transmission lines. That undermines competition, he said.
Picture
I must have missed the article about Hans Detweiler being a constitutional law scholar.  I think he should go back to law school and brush up on this, and perhaps take a course in logic while he's at it.  Then he can do a couple internships at regional transmission planning organizations, where nonincumbents compete to build needed transmission all the time.  Let's face it... Clean Line's projects are nothing but pure market speculation that may never serve any person in Illinois.  In fact, they may never serve any customer, any where, at any time.  Certainly that kind of market speculation is not "for public use," it's for private profit, and not worthy of a utility's eminent domain authority.

The chances that the Illinois Supreme Court will decide to take up RICL's appeal of the Third District's decision are slim.  No matter what RICL wants to pretend for the media, the courts have spoken.  No media spree can change that.
2 Comments

Clean Line Can Eradicate the Zika Virus, and Other Ridiculously Desperate Claims

9/6/2016

2 Comments

 
While others were enjoying their pre-holiday week, Clean Line and its sycophants were busy embarrassing themselves in a most ridiculous way.

The Tennessee Valley Authority's Board holds periodic public "listening" sessions, where folks can sign up to say any old thing, as long as it fits into a three minute time slot.  I've watched these before, and the most fun part is guessing what speakers in the queue might talk about based on the bottom half of their outfits and any props they have in their hands.  The same parade of environmental group representatives come back again and again, saying basically the same thing.  This appears to go on for hours.  The Board sits stoically, stone-faced and unresponsive, perhaps playing the same mental guessing game I do.  Wow, what a great party!  Or maybe just a colossal waste of time.  Certainly nothing newsworthy, since none of these comments are ever acted upon, it's all just so much posturing.

I guess the Southern Alliance for Clean Energy wanted to spice up its continual posturing last month when its Director told the Board that taking private property through eminent domain to build a $3B electric transmission "clean line" would eradicate the threat of the Zika virus.  No, really.
 The United States issued the first domestic infectious disease travel advisory since the 1950’s earlier this month for Florida over the spread of Zika virus. This is an historic advisory. (The FDA is now expanding the testing of blood for Zika in the United States.) SACE has a pregnant staff member in south Florida who is now effectively in a state of house arrest because of this vector borne tropical disease outbreak.
Clean Line can also make summer not so hot, and stop flooding.  Who is this guy kidding?  He's got nothing to back up his ridiculous claims that a "clean" line is "an historic opportunity of national significance."

The only thing historic about this is the amount of private investor cash that's been dumped into a company that will never realize one dime of revenue.  Or perhaps federal government overreach to effect private property takings outside its statutory authority.  Or both.

And then Dr. Doomsayer let the TVA Board know how economic a "clean" line would be with a bunch of armchair energy planning "analysis."  Such as:
The low cost wind coupled with the concurrent transmission revenue that TVA will likely receive for wheeling the wind power to other recipients makes the deal more competitive for TVA consumers, even if your demand is low, by displacing higher cost fossil fuels.

We believe Clean Line is “in the money” or very close.

What?  What money?  What qualifications does SACE have to analyze the economic competitiveness of a merchant transmission line, and moreover, why should the TVA Board rely on SACE's amateur analysis?  I'm pretty sure the TVA has a whole staff of its own economic experts to study a "clean" line and whether it's "in the money."
Not to be outdone, the Clean Line puppet master also made an appearance with some spurious claims of his own.
Jimmy Glotfelty, executive vice president for Clean Line Energy Partners, told the TVA board last week that it could deliver wind-generated power from Oklahoma and Texas up to 60 percent of the time at around 3 to 3.5 cents per kilowatt-hour, which is cheaper than some of TVA's other energy costs. Such wind-generated power could be available in two to three years after new wind turbines are erected in Oklahoma and Texas, where the wind blows more steadily than in the Southeast, and after Clean Line builds its proposed 700-mile line from the panhandle of Texas to Memphis.

The cost will be cheaper this year because the maximum federal production tax credits, worth the equivalent of 2.2 cents per kilowatt-hour, will begin to decrease after Jan. 1.

Delivered for 3.5 cents?  If the delivery costs 3.5 cents, what does the energy cost?  Since Clean Line doesn't own any wind generation and does not sell energy, the only costs it can quote are for transmission capacity on its own proposed line.

And who does Jimmy think pays for all those delicious federal tax credits that would make energy so cheap for TVA?  The taxpayers.  So while Jimmy is telling TVA it would get a 2.2 cent break on every kWh if it signs up for transmission capacity before the end of the year, the energy consumers in TVA would also have a part in paying for that tax credit!  Maybe Jimmy really believes the federal wind production tax credit is free money that falls from the sky?  Except the tax credit isn't available to transmission companies, only generators.  Where are the generators for TVA to ink a deal with, if it was even possible to do so by December 31?  Jimmy sounds like a carnie, urging his mark to put their money down and spin the wheel at a shady joint.

And why is Jimmy continuing to beat this dead horse anyhow?  It's not going to get up and pull his wagon.
TVA President Bill Johnson said no decision has yet been made about Clean Line or any other proposal. He said TVA could move ahead "if it makes sense under our timetable, not someone else's timetable.

"We've been in long-range discussions with them (Clean Line Energy) under several memoranda of understanding," Johnson said. "Our objective here is quite simple: to have the least cost, cleanest, most reliable system all at the same time. If it turns out that Clean Line is a part of that, then we will do that. But we are still in the evaluation phase."

Jimmy says:
"We continue to to have strong discussion with utilities in the Southeast and we continue to have productive talks with TVA because we believe this is a very competitive source of clean energy which we think would add value to their portfolio," Glotfelty said.
Well, shoot, Jimmy, if your discussions with other utilities are so "strong," why don't you just sign contracts with them instead of engaging in Kabuki theater at TVA board meetings?

Where are the customers, Jimmy?  Having trouble "selling" a hypothetical transmission line fed by hypothetical generators with a hypothetical "approval" to utilities who expect the resources they contract for will be available when needed?

Chicken.  Egg.  Chicken?  Where have all Clean Line's chickens gone?
2 Comments

    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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