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Invenergy Wants To Use Eminent Domain To Take 95% Of Right Of Way For Its Transmission Line

12/20/2018

1 Comment

 
Oooh... the clueless media... and media whores.  Yay, you, James Owen of Renew Missouri, you got your name in the news again!  And yay, you, Beth The Substation Tourist, you actually believe landowners don't hate Invenergy.  It's brainless dreck for the stupid.

But this article might make those with a working brain think.  I'll sum it up for you (and perhaps elaborate a bit).
Clean Line Energy, which is in negotiations to sell the project to sustainable energy developer Invenergy, is seeking permits from state regulators in Kansas and Missouri to build the power line.
Who is Invenergy?
Invenergy bills itself as North America’s largest privately held renewable energy provider. The Chicago based company has 89 wind projects worldwide that generate 12,814 megawatts of power. The firm and its affiliates claim to have more than $9 billion in total assets.
And who was Clean Line?
The Commission’s concerns regarding undue preference and affiliate abuse arise when a merchant transmission owner is affiliated with customers. Applicant does not have any affiliates that currently plan to secure transmission service rights on the Project. Applicant is therefore a purely merchant transmission owner with respect to its proposal to allocate up to 100% of the Project’s capacity pursuant to bilateral negotiations.
Oh, it looks like Invenergy may have a conflict of interest.  Good luck to all the other wind generation companies who want to secure capacity on the Grain Belt Express.  I'm certain the auction process will be completely fair... if it ever happens.  After all, Invenergy's goal here MUST BE to provide transmission service for its competitors to get their generation out of SW Kansas and NW Oklahoma, without favoring its own proposed generation in the area... such as the 800 (federal tax credit eligible) turbines under construction that Invenergy owns which were left as a stranded investment when AEP abandoned its cancelled Wind Catcher project.  What are you going to do with those, Invenergy?  Make a bid for service on NextEra's Plains & Eastern Clean Line?

Because then Invenergy wouldn't be in a position to have to take 95% of the GBE route in Missouri through eminent domain proceedings.  It could simply let NextEra take 95% of the Plains & Eastern Route in Oklahoma for its merchant generation tie line... except Oklahoma law doesn't allow eminent domain for wind generators.
Local leaders in the Oklahoma Panhandle are pinning their lingering hopes on the idea that some version can be salvaged. The mostly rural region has struggled to attract employers, and this would have been by far the largest investment in its history, with a projected 4,000 construction jobs and a dramatic increase in tax revenue for local governments.

Its demise is still sinking in for Michael Shannon, director of the region's economic development office. "I'm stunned," he said, adding, "There has to be a Plan B."
Or maybe it's now Plan GBE?

I think Hans Detweiler said that GBE has secured easements on 39 properties in Missouri, but it needs 739 easements.  Grain Belt Express needs 700 more easements in Missouri, 95% of its route across the state.  Detweiler thinks that GBE will need to take easements by eminent domain before it can complete final engineering and obtain its project financing.  Where ya been, Hans?  The real transmission companies are all about getting injunctions for surveys long before a project is permitted by a state.  What makes Hans think things are different in Missouri?  Hansypoo's claims rang just a bit hollow for me.  Ditto the other clowns at the circus who were quite insistent that Invenergy would have to use eminent domain before it had completed engineering or found customers.  How many times in the past has Invenergy possessed the right of eminent domain?  How smart is it to give eminent domain authority to a generation company?  Then wouldn't every generator (or wannabe generator) want to have eminent domain authority for their generators and tie lines?  What would make GBE different from a new fossil fueled generator that wanted to build in Missouri and ship the power generated to another state via a private transmission line?

But what happens if the MO PSC approves GBE, and then the company begins eminent domain proceedings against 700 property owners long before it has found buyers for capacity or financing to build the project?  Or even before the assent of county commissions?  What if GBE obtains easements across the state and then changes its project into a generation tie line that doesn't actually serve Missourians?  Will the PSC make GBE give the easements back?  Unlikely.  Where would the authority for that be?  What if this is just a big ruse to gain the power of eminent domain for a private utility's generation tie line?  Is that what Commissioner Hall is smelling this time around?  The Missouri Public Service Commission must absolutely determine that GBE is actually a public utility before awarding them the power to take private property for their own use (because it's actually supposed to be for PUBLIC use).  Is this smelly thing going to survive challenge in the appeals courts? 

Go away, Invenergy.  Your dastardly plan is never going to succeed.  Transmission lines that plan to use eminent domain for 95% of the route are rarely approved.  And these landowners are winning because they have stuck together.  It's unlikely they're going to cave at this point.  Go away, Invenergy.  Just go away.  You don't understand eminent domain because you've never had the authority to use it.
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Send in the Clowns, Invenergy!

12/19/2018

8 Comments

 
Another episode of Grain Belt Express before the Missouri Public Service Commission has come and gone.  I watched some of it, but missed a big portion of Michael Skelly's cross examination due to another meeting.  But, I saw enough.  Oh, yes, it was plenty.  (And there's always the video archive for later).

One of the things that potential Grain Belt Express purchaser Invenergy's Kris Zadlo said yesterday maybe should have been used by the company in Missouri as well.  Zadlo claimed Invenergy thought it stood a better chance before the Illinois Commerce Commission without Clean Line in tow.  Not that I believe that is the reason for not making approval by the ICC a condition precedent in the purchase agreement for a second, but Invenergy probably would have done much better before the Missouri PSC without the Clean Line clowns in its witness line up.

I hear that Skelly confirmed that Clean Line no longer has any employees.  *cough*  Personnel change?  *cough*  There have been no employees since June, 2018.  That's when the Clean Line crew hit the unemployment line.  Many had a soft landing with former COO Jayshree Desai's new venture to spend investor cash at ConnectGen (what has ConnectGen actually DONE, except spend money?)  Others found themselves at other renewable energy companies, like Pattern, or Invenergy.  And some grew the beard of unemployment and set out on their own.  Apparently Hans Detweiler is one of them, because he now has more hair on his chin than on his head and he shared this morning that he has aspirations of working for Invenergy.  Although, he seemed not to know much about anything.  Just a human placeholder, adopting the testimony of all the missing Clean Line employees (and certain experts) as his own, in exchange for cash.  Hans truly looked bewildered on the stand.  I'm not sure he even knew what he was testifying about.

I did manage to catch Skelly telling MLA counsel that Grain Belt's FERC negotiated rate authority can be transferred to Invenergy without any filings at the Commission, and that when Invenergy buys GBE, it also buys that FERC approval.  Not even.  Zadlo tried to save that line of questioning by demonstrating his knowledge of FERC's requirements for granting negotiated rate authority.  Perhaps he should read them again.  And perhaps the MO PSC should also read them as well.

As mentioned earlier, Zadlo had a lot of reasons why ICC approval is not a condition precedent for purchase of GBE.  If Invenergy's charm (really, they strike me as more sneaky than charming) doesn't win them a permit in Illinois, they may have to reconfigure the project.  It could go north.  It could go south.  It could terminate in Missouri.  I guess he had to try to cover for what Dave Berry said earlier... he may have "discussed in passing" with Invenergy that Grain Belt Express may not extend past Missouri.

This is not the same project currently before the Missouri PSC, and the PSC needs to do some hard thinking about what would happen if they didn't sufficiently condition any approval to prevent these kinds of changes.  Perhaps Commissioner Hall scents skunk in the air because he seems to be very concerned about when eminent domain may be used if the MO PSC permits the project.  Would it be before GBE has all its financing in place and is ready to build?  Perhaps he should take a page from Kansas and propose the condition that GBE has all its permits in all 4 states (Kansas, Missouri, Illinois and Indiana) in place before any construction (or  eminent domain) may begin.

And guess what?  Here's a little factoid to ponder over the holidays.  Clean Line has spent $197 million (that's MILLION) dollars of investor cash.  Despite GBE's attorney's baseless accusations that Missouri Landowners Alliance Counsel couldn't (shouldn't) be trusted with confidential financial information, it was Karl Zobrist himself who blurted that fact out in the public portion of the hearing.  Oh, the irony!

So, you're Skelly.  You've spent $197M of other peoples' money and have pretty much nothing to show for it.  I know if I were him, I might be a little nervous.  But no, apparently Skelly thinks nothing of it.  He still begins all his answers with the word "so" as if to reframe the question into something worthy of his great consideration.  He still likes to mock others in the room, at one point redirecting his microphone toward MLA counsel because I guess the question was too lengthy for Skelly to pay attention to.  We could hear Mr. Agathan just fine.  The only thing that did was demonstrate what a smartass Mr. Skelly can be.  I'm not sure what Mr. Skelly even added to the proceeding that may make the Commission more likely to approve the project.  Perhaps the Commission is quite as sick of Skelly as the rest of us are at this point.  It gets old.  Really old.

Invenergy would have done much better without the Clean Line clown parade.  Of course, Invenergy owns nothing and has applied for nothing.  Invenergy is nothing but a bit player in its own future.  Some business decisions are sound, and some aren't.  You get what you pay for.

So... *take a shot* there's still briefing to come.  It's going to be epic.  Meanwhile maybe the circus will come to town and collect its clowns?

Happy Holidays, everyone!
8 Comments

Hey, Invenergy, Don't Forget To Pick Up Your Bag of Doorknobs On Your Way Out...

12/14/2018

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It's almost hearing time in Missouri!  Again.  How many times does this make?  I've lost track.

In preparation for the hearing, there are certain things the parties must file, such as their list of issues, and their position on these issues.  The issues are the questions the Commission must contemplate in making its decision.  All the position statements have been filed.  Some were short and sweet - question & brief answer.  And some were like the War & Peace version of a position statement.  Clean Line's was of the second variety. 

Blah, blah, blah, shoulda, woulda, coulda.  It reads like a fairy tale about a magical beast.  You've heard all this garbage about how wonderful Clean Line *could* be before.  Nothing much new.

However, there was a pair of footnotes that caught my eye and made me laugh. 
4 The KCC granted the Company’s Petition for a siting permit to construct the Kansas portion of the Project on November 7, 2013. Subsequently, on October 4, 2018, the KCC issued an Order Granting Limited Extension of Sunset Provisions (Docket No. 13-GBEE-803-MIS) which extended the term of the 2013 siting permit order to March 1, 2019. Pursuant to this order, Grain Belt Express updated the KCC regarding its financial, managerial, and technical ability to complete the Project, including the pending Invenergy acquisition. On November 21, 2018, the Company and KCC Staff filed a joint motion for stay of procedural schedule and extension of sunset term, seeking extension of the siting permit order until further order of the KCC to accommodate the remainder of the procedural schedule and the future acquisition docket schedule. The KCC granted this request on December 6, 2018 and extended the sunset term to December 2, 2019.

5 On November 12, 2015, the Illinois Commerce Commission (“ICC”) granted the Company a certificate of public convenience and necessity (“CPCN”), and authorized Grain Belt Express to construct the Illinois portion of the line. Pursuant to a decision of the Illinois Appellate Court, this order of the ICC was reversed on procedural grounds. In Concerned Citizens & Property Owners v Illinois Commerce Comm’n, ___ N.E.3d ___, 2018 IL App. (5th) 150551, 2018 WL 1858128 (Ill. App., Apr. 17, 2018), the court held that while Grain Belt Express owned an option to purchase property to be used for the transmission of electricity, it was required under Illinois law to “own, control, operate, or manage” utility infrastructure “at the time of application” before it could qualify as a “public utility,” and remanded the case to the ICC. The court specifically found that applicants like GBX “may seek recognition as a public utility while, at the same time, applying for a certificate of public convenience and necessity ... as long as they have obtained the ownership, management, or control of utility-related property or equipment at the time of the application.” Id. at *5-*7. After the Company receives an extension of its Kansas siting permit to 2023, and after the Company receives a CCN from this Commission, it can acquire utility property or equipment in Illinois that will permit it to file a new application with the ICC.
Footnote 4... uhhh, that's a creative re-telling of recent events in Kansas.  Clean Line sort of skirts around the KCC's Order for it to file evidence of its financial, managerial and technical ability to undertake the project.  Evidence!  Not hot chat over brimming bowls of vanilla panna cotta.  Clean Line didn't file any evidence, instead it met in private with the KCC Staff and fed them a bunch of malarkey, then it asked the Commissioners to be excused from filing anything... after the deadline to file had passed.  So, are we to think that private meetings with KCC Staff are perfectly good substitutes for filing evidence?  That certainly lightens things up in Kansas.  I wonder what restaurant the KCC Staff would prefer to be wined and dined at during the impending acquisition proceeding, instead of the company filing actual evidence?  Furthermore, the KCC did not grant Clean Line's request for an open ended extension.  It set a firm date to coincide with the decision on the acquisition application.  That's going to take at least 300 days from the date it is filed.  So, we're talking at least another year in Kansas, with no guarantee of success.

And then let's examine Footnote 5.  Clean Line is only telling part of the story of what happened in Illinois as well.  It completely overlooks the opinion of the Supreme Court in the RICL matter, which left for another day the question of whether or not Clean Line (or Invenergy, for that matter) could ever be deemed a public utility with eminent domain authority.  And if you've ever watched the archived video from the Supreme Court argument on the RICL case, you may conclude that the chances of a merchant transmission project with negotiated rate authority becoming a public utility in Illinois are slim to none.  Just because Grain Belt Express may "seek recognition as a public utility" doesn't mean it's going to happen.  Heck, I could seek recognition as a super model tomorrow.  Doesn't mean I'll be on the runway next year.  It's just not going to happen.

So, (I'm warming up for Tuesday's drinking game) here's the bag of doorknobs.  After the company receives an extension of their Kansas permit to 2023...  This can't happen for at least another year and is far from certain.  And after GBE receives a permit from the Missouri PSC... also something that is far from certain.  And after it purchases utility property in Illinois... it will apply for a permit again.  Doesn't mean it will be granted.  In fact, I'm 99.9% certain it won't happen.  This footnote looks like this:
Clean Line's domino set up is about as useful as a bag of doorknobs.  That's what Invenergy purchased, a bag of doorknobs.

And speaking of Invenergy, here's a song for them.
If you have time to tune into the Missouri Public Service Commission hearings next Tuesday and Wednesday, I guarantee it's going to be a really big show.  Perhaps some surprises.  Everyone loves surprises this time of year, don't they?  Here's a link to the program line up.  You can watch live video from a link here, or on the MPSC's home page.

My money's on Missouri Landowners Alliance for the win.
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Propaganda and Puffery:  Need for Cardinal Hickory Creek Evaporates

12/13/2018

1 Comment

 
Really great article in the Wisconsin State Journal this week profiling the devastating effects the Cardinal Hickory Creek project will have on small businesses in its path.  A farm operation that supplies beef to some of  Wisconsin's best restaurants, an award-winning cheesemaker, and an event center are just some of the small businesses in the bullseye of a new transmission line whose need seems to have evaporated since it was cooked up in 2011.  That's nearly 8 years ago!  In the fast-paced world of electric transmission, that's a whole different era.

Interspersed with the interviews of business owners and community group representatives is the opinion of Cardinal Hickory Creek project owner ATC's spokeswoman.
The utility companies say the project, which they want operational by 2023, could provide Wisconsin customers with “net economic benefits” of between $23.5 million and $350 million over its expected 40-year life. The Midcontinent Independent System Operator, the regional electric grid operator, has endorsed the project as one of 17 across the region that will improve the reliability of the electric system, provide economic benefits to utilities and consumers, and support the use of renewable energy by delivering low-cost wind energy from Iowa to population centers where the power is needed.

“Those drivers have not changed for the project. Those have been consistent since the project was announced,” Freiman said.

But have they?  Have they really?  Here's something Freiman probably hopes you don't find out.

Transmission planning was a recent topic of discussion at a meeting of the  Midcontinent Independent System Operator (MISO), the electric grid planner for the region, and creator of the 8-year old "need" for the project.  RTO Insider's coverage of that meeting revealed that MISO members are questioning the "business case" for further transmission expansion in light of current system needs and increased transmission costs.
Multiple stakeholders said another possible crop of MVPs, if any, will need a new business case process, especially considering the fleet change that has occurred in the intervening years and the transmission cost allocation plan MISO will file at the end of the year.
By the time MISO has gotten to the end of its 2011 MVP portfolio of new transmission, the "need" for such projects has evaporated.  It's time to jettison old ideas and concentrate on today's needs.  Cardinal Hickory Creek isn't one of them.  Utility regulators need to quit rubber stamping old ideas.

Opposition to MISO's MVP transmission project portfolio has also entered a new era.  The people simply aren't going to stand for more unneeded transmission that destroys local communities.
“What if customers have had enough of transmission expansion? What if they’re tired of having transmission lines going across their farms, yards. … They have more options to bypass us completely. You can talk about MISO’s value until you’re blue in the face. What customers see is rising bills,” Madison Gas and Electric’s Megan Wisersky said.

She said customers might be better served by a reinforced distribution system than more transmission projects.

“We have to remember that these transmission lines do impose on communities,” said Coalition of Midwest Transmission Customers attorney Jim Dauphinais, who agreed that overbuilding transmission will result in more expensive bills.
That's right, customers have had enough!  The revolt isn't just on the horizon, it's here now.

So, what do the people want?
Opponents say the line is not needed and would damage important conservation areas, disrupt the scenic beauty and harm agricultural businesses dotted along the routes. They argue Wisconsin consumers would be better served by energy efficiency and local renewable-energy projects. And they have no desire to advocate for one route at the expense of those along the other.
This message was also aired at the MISO meeting.
Alliant Energy’s Mitchell Myhre said he didn’t think MISO would need an entirely new transmission planning playbook but that it should analyze transmission project alternatives and engage in conversations about them. He said more analysis on transmission project alternatives may have lessened the late-stage disagreements over at least two projects in this year’s Transmission Expansion Plan. (See related story, MISO Board OKs Full MTEP 18 Over Stakeholder Complaints.)

“We ask that those conversations [about alternatives] happen at the front end of the process so they don’t come up in the back end of the process,” Myhre said.
Engage in conversations?  What does that mean?  Is it so MISO can say it considered alternatives and rejected them?  Is this all about scheming up ways to plug the holes that developed in MISO's last MVP debacle?
“We think there needs to be a study; we think there needs to be a process” to see if a long-term regional transmission plan makes sense, Missouri Public Service Commissioner Daniel Hall agreed.
Sigh.  This guy.  The one who wants to toss Missouri taxpayers under the bus by giving the power of eminent domain to a wind generation company.  He wants to concoct some malarkey "study" to back up MISO's transmission expansion aspirations.  Many of the comments in the article supporting another MISO MVP portfolio are all about finding ways to make new projects seem needed.  These interests include an effort to build infrastructure for Big Wind at the expense of MISO ratepayers.  That's what this is all about, at its most basic level.  It's about Big Wind proposing generation projects and stacking them in MISO's interconnection queue.  When faced with new generators wanting to connect to its system, MISO wants to provide service.  But how many of these new wind projects are intended for export outside MISO?  And should MISO ratepayers fund the transmission infrastructure that enables big wind generation companies to get their product across the MISO region so that it may be used by others outside the region?  If these were merchant projects, they'd have to demonstrate a commercial need before being financed and constructed, and only the committed customers would pay for them.  Instead, MISO has expanded its transmission system based on where it believes Big Wind wants to build, without any consideration for who will ultimately purchase the electricity.  And it has done it on the backs of ratepayers who will see little, if any, benefit and perhaps not even use the electricity transmitted.  These are captive ratepayers, not free market customers.

MISO's planning director doesn't seem to want to pursue another MVP portfolio.  He says the costs to connect every Big Wind project in the queue will be uneconomic. 
MISO’s transmission queue contains 483 projects totaling about 80 GW. Executive Director of Resource Planning Patrick Brown said MISO may be reaching an economic “break point” where the costs of network upgrades render projects uneconomic, especially in the wind-heavy western portion of its footprint. “The general cost of network upgrades is going to drive them out,” Brown said.
I guess it's time to jettison this idea, not prolong the agony with bogus studies, business cases, and "need" scenarios.  It's simply not cost effective, something the opposition has been saying for years.
However, Kevin Murray, representing the Coalition of Midwest Transmission Customers, said a strong business case can’t be built on a speculative information about where resources might be constructed.

“We need to avoid the ‘build it and they will come’ sentiment. And we’ve seen hints of that in the past,” Murray said. He said some transmission projects might be more appropriately funded by interconnection customers for planned generation.
It's way past time for MISO to put down the cape of climate hero Big Wind that it has been carrying for the past 8 years.  The bleeding of MISO ratepayers for benefit of Big Wind profits has to end.

And it ends at Cardinal Hickory Creek's doorstep.

And what did Big Wind have to say for itself?
Clean Grid Alliance’s Beth Soholt said her company will continue to support the Cardinal Hickory Creek line project in Wisconsin, which she said had a “solid as ever” business case.

Soholt suggested that MTEP 15-year future scenarios should account for sustainability goals beyond renewable portfolio standards.

Hmm... that sounds eerily similar to what Kaya Frieman said in the State Journal article.  You don't suppose Big Wind and ATC are in cahoots, do you?

Keep up the good work, CHC opposition!  Big Wind's ball of string seems to have started to unravel...
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Utility Tries Insulting its Opposition

12/12/2018

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This can't end well.

A report in the Maine Times Record says that Central Maine Power (CMP) spokesman John Carroll called the opposition to the New England Clean Energy Connect project "bizarre" and "shameful."
CMP representative John Carroll called the opposition “bizarre” and “shameful,” lamenting  that instead of seeing Hydro-Quebec as a leader in the clean energy movement, “we are immediately suspicious.”
The project would be “a great battery for the Northeast,” he said, adding that this line would help prevent the continued mass spillover of energy that Hydro-Quebec is currently unable to sell. The project is a simple step toward making the region and the nation less dependent on fossil fuels, Carroll argued.
Sigh.

Insulting your entrenched opposition is not, and has never been, a winning tactic.  In fact, name-calling and ad hominem arguments only expand opposition and drive it deeper.  It's even a no-no in most transmission developer "Code of Conduct" documents.  The "Code of Conduct" is a fig leaf used by many developers to assure regulators and elected officials that landowners facing eminent domain for transmission rights-of-way will be treated fairly.

In this iteration, the Code of Conduct states:
Do not suggest that any person should be ashamed of or embarrassed by his or her opposition to the PATH Project or that such opposition is inappropriate.
Name calling is one of the seven common propaganda devices.   It is used to create unacceptable groups who should be dismissed without an examination of the facts.
Apparently there is no code, moral or otherwise, for CMP... nor any tactic too low.  It is truly bizarre that this company appears to simply not care how much of a bully it looks like.  And they seem to believe Maine is a cheap date and its people mere sheep that can be cowed by suggestions that they should be ashamed of themselves.  It is Central Maine Power who should be ashamed.
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How Much Does Opposition Cost?

12/6/2018

1 Comment

 
Opposition to new aerial transmission lines is nothing new.  It's been around almost as long as the transmission lines themselves.  Nobody wants to live with these things, but in the past they may have been a necessary evil, and in the past it may have been easier to overwhelm small communities to force an involuntary sacrifice.  The people were sacrificing their home, business, health, sense of place and peace of mind for benefit of other people who needed electricity.  We electrified the country in the last century.  Mission accomplished.

But today's transmission lines aren't needed for the same reasons.  The vast majority of today's transmission proposals are for other reasons, such as cheaper prices for customers in other regions, or "cleaner" energy for other regions.  It's no longer about bringing electricity to people without it, and it's not all about keeping the grid we have functioning and reliable.  For today's transmission companies, it's also about profit.  There's a fortune to be made constructing transmission and controlling new pathways to transport electricity further and further from its point of generation.

Today's transmission opposition has also undergone a vast sea change from the small, disconnected community groups of yore.  Now it's easy for small groups to connect with others and tap the experience of successful opposition groups, thanks to the internet.  We communicate differently in this century, and communication is oftentimes the secret sauce of success.  While transmission companies haven't changed their "best practice" tactics in decades, opposition is fleet and malleable.  The secret hierarchy of opposition groups makes them quick to adapt, and even quicker to deploy new, winning tactics.  The opponents are fighting with their hearts, the industry is fighting from a stale, dog-eared "playbook."  It's just a job for the industry warriors.  Personally, the only thing they get out of victory is a pat on the head, or maybe a bonus or promotion.  Opponents receive the opportunity to maintain the status quo, at least until the next transmission proposal invades.  They don't get a bonus.  In fact, the only return on their investment may be gazing out the window and not seeing an ugly transmission tower.  The transmission employee merely moves on to the next job... he can't see those towers from his house!  It's all about motivation, and transmission opposition groups are racking up an amazing list of victories.  It's simply no longer true that the transmission company wins every time.  In fact, they're probably closer to losing most of the time when faced with organized opposition.  Opposition is costing transmission companies a lot of money and often outright cancellation or failure of transmission proposals.

This recent opinion piece from Transmission Developers Inc. (TDI) defends its project from the inaccurate characterization of its project from competing transmission company Central Maine Power (CMP).  The two projects, both purposed to transmit hydropower from Quebec to Massachusetts, couldn't be more different.   CMP proposes aerial lines and many miles of new right of way through the Maine wilderness.  TDI, on the other hand, proposes new transmission that is underground and underwater, with no new overhead transmission lines.  CMP is also a second attempt to build new aerial lines to satisfy Massachusetts' huge appetite for "clean" power generated elsewhere (Not In My Backyard, eh, Massachusetts?).  Massachusetts' first choice was the ill-fated Northern Pass project through New Hampshire.  When that project was rejected by New Hampshire, CMP was selected as the second choice.  TDI gets no love from Massachusetts, who is only looking at the proposed cost, not the actual cost.  TDI points out something very important in its letter:
TDI, from the very beginning, took important community, environmental and aesthetic considerations into account when designing and siting the NECPL. TDI carefully chose underground technology specifically to minimize impacts on the people, viewshed and environment of Vermont. We recognized that the additional expense related to underground construction for NECPL was worth the alleviation of a multitude of genuine community and environmental concerns, and that the cost of any project can’t only be measured in dollars.
But can it be measured in dollars?  I think we can get pretty close!  Opposition causes real expense.

1.  Purchased advocacy.  Transmission companies first knee-jerk reaction to organized opposition is to compete with it by purchasing advocacy.  Front groups, advertising, and "donations" to advocate groups to win their favor cost money.  How much?  It sort of depends on how big a campaign the transmission company thinks it needs.  It also depends on the size of the opposition.  A bigger opposition requires larger expenditures to secure advocates.  People who are willing to sell their community down river for benefit of an out-of-state intruder can be pretty pricey if they're likely to receive a lifetime of ostracized backlash from their neighbors.  A transmission company can easily spend $10M or more on purchased advocacy.  Cha-ching!

2.  "Mitigation" payments to communities and community groups.  This can be a huge expense!  Transmission companies make agreements to "mitigate" their effect on local communities with monies paid to local governments, organizations, and business groups who are happy to push their community under the bus in exchange for cash.  Local governments figure payments from transmission companies benefit the community as a whole, and some of them are amazingly cheap dates.  Others not so much.  Organizations and business groups are all about personal profit or concessions that benefit the group or organization, at the expense of the community.  This is pure greed!  A transmission company can shell out at least $100M in "mitigation" payments to governments and groups that drive a hard bargain.  Cha-ching!

3.  Increased regulatory costs.  Opposition in the regulatory process costs money.  A transmission company must spend more money on legal fees, experts, and bogus "studies" to be submitted as evidence in the regulatory process.  A transmission company may also shell out a whole bunch of money to purchase the best political influence on the regulatory decision.  We're talking hundreds of millions of dollars in this category alone.  Cha-ching!

4.  Permitting delays.  Time is money, and good opposition can cause increased permitting delays.  An uncontested application can sail through the regulatory process in record time.  A contested application drags on and on and on.  How much does delay cost?  Over a month?  Over a number of months?  Over a year?  Over a number of years?  Opposition permitting delays are usually of the "years" category of delay.  The cost of delay to the transmission company can vary.  With a merchant project, the entire cost of the delay and value of the sunk investment is on the company.  This is hugely expensive.  With a ratepayer guaranteed, cost-allocated project it still costs just as much, however ratepayers are picking up the additional costs of delay, and paying the transmission company for the cost of its investment during the process.  While the costs are the same, it's all about who pays.  In the case of the merchant New England projects, the cost is on the company.  Cha-ching!

5.  Permitting failure.  It's reasonable to plan that a merchant transmission project may fail entirely after shelling out the money noted in the four previous categories.  In this case, the transmission company is left with nothing but a huge debt and some pretty angry investors.  Example:  The Clean Line merchant projects that spent over $200M in "development" costs and then failed to receive enough permits to build (and couldn't find any customers to pay for the projects, which was another huge factor in the failure).  Cha-ching!

A transmission project buried on existing public or private rights of way (such as roads or railroads, or under large bodies of water) that doesn't cross privately owned land, and doesn't use eminent domain, doesn't create the same kind of expensive opposition.  A project without opposition can avoid the expense of opposition, and as we've discussed, opposition costs money.  Lots of money.

A buried project may cost more to build, but it provides the kind of regulatory and price certainty that transmission companies need.  The odds are good that a buried project will be approved and built, whereas an aerial project with entrenched opposition will probably not be approved and will never be built.  Any customer who looks solely at price when considering competing transmission proposals fails to realize that after the cost and risk of opposition is added, they're going to end up paying the same, or more.  They may also experience the cost of failure.

Opposition is too expensive.  Choose the buried option.
1 Comment

Clean Line Misses Kansas Deadline -- Too Busy Glittering

12/1/2018

5 Comments

 
Some 550 guests entered the soiree via the Water Works at Buffalo Bayou Park. There, arrivals grabbed A Fare Extraordinare's smoked chicken tostadas and lavender lemonade cocktails before venturing underground to tour Carlos Cruz-Diez's art installation inside the Buffalo Bayou Cistern. 

Later the brightly-hued mob - dressed in-theme with the "Color Outside the Lines" motif - headed into a rainbow-lit tent for dinner. Fuchsia, cobalt and neon streamer-centerpieces zig-zagged from tabletops to the ceiling. Roasted root vegetables with truffle pea puree were plated to match.

The casually A-list throng including Lynn Wyatt, Susie Criner, Sorarya McClelland, Cathy and Jo Cleary, and Anne Whitlock
and Michael Skelly happily dug into their beef tenderloin and vanilla panna cotta.

Post-dessert, BBP chair emeritus Collin Cox
auctioned off two inaugural entertaining opportunities: choice of a cocktail party inside the cistern catered by Emmaline featuring a Houston Grand Opera private recital or around Lost Lake with food and libations by the Dunlavy. Bids for both offers quickly swelled past the five-figure mark.

Here's what that looks like:
Picture
Gosh, what a big surprise it must be to find yourself at another glittering gathering where the wealthy part with their money in the name of "charity."  It looks like someone's ego got well stroked.
Meanwhile, back at the regulatory ranch, the Kansas Corporation Commission had ordered Clean Line to "...submit evidence of its financial, managerial and technical ability to complete the Project" by November 29, 2018.

November 29 came, November 29 went.  November 30 happened.

What did Clean Line file?  Nothing.  Not.A.Thing.

Apparently it's okay to make your own rules and orders at the Kansas Corporation Commission.  If you're a utility with a well-connected attorney, you can do anything you want without repercussion.

Because the night before Thanksgiving, Clean Line's attorney filed a motion asking for an Order from the Commission to suspend the procedural schedule that required it to file evidence by November 29, and to extend Clean Line's permit until further notice.  Clean Line dropped its little Invenergy bombshell and shared that it had a little party with KCC Staff the week prior and "introduced" Invenergy to the Staff.  I wonder if there was vanilla panna cotta?

However, the KCC never responded.  The KCC did not issue an order suspending the procedural schedule.  That means that Clean Line was still obligated to file its evidence by November 29.

Who disobeys a direct order of a state regulatory commission?  Clean Line.

Pass the lavender lemonade cocktails.  I need to practice making the lavender lemonade cocktails face.   Apparently it gives you immunity from regulatory oversight.

5 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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