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Invenergy Confused About Where It's Building Grain Belt Express

1/29/2021

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That's about the only conclusion I can come to after reading this blurb penned by one of Invenergy's most avid supporters... conveniently inspired to write an op-ed just when new legislation to restrict eminent domain abuse was heard by a Missouri House committee.  Invenergy's cheerleader said:
... some lawmakers in Missouri disagree. They’ve repeatedly played political games and tried to make up new laws to target this specific project. 

Their efforts are anti-progress, anti-business, and have failed every time. They’ve failed because the 39 communities affected by the project know a good deal when they see one.

Woah, woah, woah there, sport.  39 communities affected by the project know a good deal when they see one?  What 39 communities would that be?  Do you mean the 39 communities who belong to MJMEUC and will be the beneficiaries of MJMEUC's below cost contract to buy transmission service from Grain Belt Express?  I kind of think that's what you meant to say... but those communities are not AFFECTED BY THE PROJECT.  By and large, they're miles away from any new infrastructure constructed through other communities that won't receive any benefit at all from the project.

Other communities are affected by the project, not the 39 who are party to MJMEUC's "good deal."  The 39 communities on the receiving end of GBE's below cost pricing know a good deal when they see one, however they simply don't care who has to suffer to make their "good deal" possible.  It's kind of like finding a cash-stuffed wallet on the sidewalk, picking it up, and making absolutely no effort to find its owner.  Finders keepers, right?  Having such a "good deal" dumped in your lap comes with blinders to the misfortune of others?  Is that what Missouri wants to show everyone?  Morally bankrupt opportunistic "good deals"?

Anyhow, I hear the committee hearing went well for the landowners who attended and spoke to protect their property rights.  Keep up the good fight!

P.S.  Yes, I know the op-ed is full of other misinformation, but honestly it's not worth writing about.  Nobody believes any of it.
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Transource Mansplains Why Pennsylvania Must Approve Its Project

1/14/2021

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Of course Transource filed exceptions to the Administrative Law Judge's recommended denial of its unnecessary transmission project.  That shouldn't come as any surprise.  But what is surprising is all the mansplaining required to inform the PA PUC that its job is merely to site the transmission project.  Transource says that the Federal Energy Regulatory Commission has authority to approve transmission projects that affect interstate transmission rates.  Transource explains that the only role state utility commissions have is to determine where the project is going because a state may not deny a transmission project permit.
The RD [Recommended Decision] confuses federal and state roles by attempting to overturn PJM’s transmission planning role as approved by FERC. It is undisputed that states retain jurisdiction over transmission siting and construction issues. However, FERC has exclusive jurisdiction over interstate transmission planning and has approved PJM’s role as outlined in its tariff. FERC held in Order 1000 that the regional planning requirements, including transmission planning to address market efficiency considerations, were being adopted pursuant to FERC’s rate jurisdiction under Section 206 of the Federal Power Act. The Federal Power Act preempts state jurisdiction over the wholesale rates of electricity in interstate commerce.
On the one hand, Transource says that the PUC is preempted from having any role in a regionally planned transmission project, except to decide siting and construction issues, but on the other hand, it begs the PUC to approve its transmission project.

Does Transource really expect the PA PUC to roll over and make itself irrelevant?  If states were obligated to accept the RTO's determination of "need", it upends the entire world of state authority to permit transmission projects.  Most states have statutory requirements to determine (for themselves!) whether a transmission project is needed.  Sure, they can consider what the RTO says about need, but they have to make their own determination based upon state law.  Transource purports that the state's "need" criteria are satisfied by simply accepting what PJM says.  However, PJM's planning and "need" determinations are not subject to Pennsylvania law.

FERC has jurisdiction over interstate transmission RATES.  That means the rates transmission projects approved by states may charge to customers.  FERC also has jurisdiction over the actions of the RTO, and can require that they plan transmission.  And that's where FERC's jurisdiction stops.  FERC simply cannot permit transmission projects.  That's a job for the individual states.  Only a state may issue a permit for a transmission project.

If the PA PUC accepts Transource's assertion that it may not reject a transmission project approved by PJM, it sets a dangerous precedent whereby states would be rubber-stamping yes men who abrogate their authority over transmission to the federal government.  Why would any state ever do this?  No one ever willingly relinquishes their power.

Transource also gets all wadded up over the Judge's independent evaluation of the evidence presented and determination of the facts.  It's up to the judge to determine the facts from the evidence presented.  Only the judge can determine which pieces of evidence have greater weight.  However, Transource insists that its evidence is the ONLY evidence worth evaluating and therefore the judge must accept Transource's evidence as superior to all other evidence and simply agree with Transource's purported facts.  Judges are fact finders.  It's what they do.  They determine the facts based on the evidence, and then apply the law to the facts in order to make a judgement.  That's exactly what ALJ Barnes did in the Transource case.  She simply did not believe everything Transource said, when compared to conflicting evidence from other parties.

For instance, Transource's expert testified that transmission lines do not interfere with GPS systems used to guide farmers.  Transource's expert is not a farmer.  He's never driven a GPS-guided piece of farm equipment underneath a transmission line.  However, actual farmers who have driven GPS-guided farm equipment underneath transmission lines testified that there is interference.  The judge weighed these two pieces of conflicting evidence and decided to take the word of the person who actually has experience farming underneath existing transmission lines.  Transource nearly had a conniption over that.  How could the judge accept the testimony of a lay person over its expert?  Don't believe your lying eyes!

It hasn't been lost on me that the judge is a woman.  It obviously isn't lost on Transource, either.  The tone of Transource's exceptions brief crosses the line into the realm of mansplaining.  What's mansplaining?
to explain something to a woman in a condescending way that assumes she has no knowledge about the topic
Transource says over and over again that the judge simply doesn't understand things.  Tut, tut, tut, there, there, little lady, you simply don't understand the manly world of electric transmission, let me explain it to you so you understand.

Excuse me... but this is an experienced Administrative Law Judge.  She didn't get where she is today by being a silly wallflower.  She understands transmission perfectly well, she just didn't agree with Transource.  She wasn't intimidated by PJM's complicated explanations about why this transmission project is needed.  Maybe the RTO's overly-complicated evidence and testimony is designed to confuse judges with an ego?  The judge is cast into the role of the silly townsfolk in the transmission version of The Emperor's New Clothes.  Does the judge side with the transmission company because she doesn't understand and wants to avoid looking dumb?  Or does she point her finger and declare the transmission company naked (and full of crap)?
Is it possible that an experienced ALJ got everything wrong?  And is it likely that the PUC Commissioners will toss out her decision in its entirety and approve the project anyhow?  It remains to be seen, but I think that stuff only happens in fairy tales.

Up next... other parties may file replies to Transource's exceptions.  Then the Commissioners review everything and make their decision.
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Transmission Companies and Renewable Energy Developers Want YOU To Pay For Their Unholy Alliance

1/13/2021

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Here's another way "Big Green" and "Big Utility" are planning to dip into your pocket.  It's no secret that building new transmission is enormously expensive.  We're talking billions for the big projects that cross states.  But perhaps you haven't noticed lumpy spikes in your electric bill that correspond with new transmission projects.  That's because the costs are added gradually, and spread out over as many ratepayers as possible.  One of the utilities' favorite allocation analogies is to think of the cost of new transmission as "just a few pennies" on your bill.  However, if you consider that there's over 60 million ratepayers in PJM alone, and if each one of them was paying "just a few pennies" for just one new transmission project, then the owner of the transmission project's payday looks like this:
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The trick is to allocate costs across as many customers as possible so that no one will notice how much it actually costs.

Let's go back... way back to the early 2000's.  The Federal Energy Regulatory Commission issued a rule that required new electric generators to pay their own costs to connect to the existing transmission system.  Costs could include the line from the generator to the nearest transmission line, as well as any costs that result from upgrades to the existing transmission system caused by the increased injection of power from the new generator.  This rule ensured that generation owners sited their new generators efficiently by combining the cost of building and operating the generator with the costs to the transmission system caused by the building of that generator.  Just like it wouldn't be cost effective or logical for Walmart to build a store out in the middle of nowhere and then demand that someone else pay to build the road to connect it to the nearest town, it's not logical to build electric generators out in the middle of nowhere and then demand that regional electric consumers pay the cost of connecting it to the transmission system.  A generator's location must be balanced with its costs.  If the added transmission costs make its price of electricity too high to sell, then maybe another generator located closer to the load it would serve would end up being more economic for consumers.  In this way, generators located closer to the consumers they serve actually become cheaper.  They're also more reliable.  And more economic for the community because their energy dollars stay within their community or region.

Everything worked fine under FERC's rule for years.  However, taxpayer-subsidized renewable energy generators wanted to build big in order to suck up as many of your tax dollars as possible.  The Midwest looked like just the place... lots of land and few neighbors combined with good natural resources.  But the Midwest soon became over-saturated with renewable energy projects.  Fewer people, ya know, much less demand for electricity.  The renewable developers thought it was a good idea to continue to build in the Midwest, where the electricity was not needed, but to ship the electricity produced to population centers on both coasts.  They soon used up all the available transmission.  The Midwest grid operator, MISO, even planned and built a suite of "MVP" transmission projects designed to open new pathways for renewable generators not yet built.  Guess who paid for this overly expensive gift to renewable energy developers?  The electric consumers in MISO, although maybe other regions importing MISO's new renewable energy supply may have benefited more than MISO's consumers. 

Recently though, renewable energy developers have hit a wall.  They need not just another suite of MVP projects, but several of them.  They need for regional transmission planners to plan new transmission that presumes new generators will be built in the middle of nowhere and need to be connected.  And here's the thing... if the regional grid operator plans and orders the building of new transmission to serve the willy-nilly and self-serving profit-seeking of private energy corporations, then end-user electric consumers pick up all the costs.  That's YOU!  Instead of the renewable generator's developer picking up the costs of connecting its new, for-profit electricity factory, he wants to shift the costs to YOU.

If the costs of connecting and transmitting electricity from these new generators is separated from the cost of building and operating the generator, what happens?  The cost of the generation appears to be much cheaper than it really is.  Say Plant A can generate electricity in Lower Slobovia for 3 cents, but it costs 10 cents for transmission upgrades that connect it to Metro City.  Plant B, proposed to be build in Metro City can generate electricity for 7 cents, but doesn't require transmission upgrades.  If you simply compare the cost of the power (3 cents for Lower Slobovia vs. 7 cents for Metro City), then the Lower Slobovia generator is the more economic choice for Metro City residents.  However, if you add in the transmission upgrade costs, the Metro City generator is 6 cents cheaper than the Lower Slobovia one and way more economic for Metro City-ites.

In either scenario, the ultimate users of the electricity will pay the costs of the electricity, but if you separate out the costs of the upgrades and slide them into consumer electric bills another way they may not notice, maybe they wouldn't object to paying more for electricity from Lower Slobovia because they simply wouldn't know.

That's exactly what a front group of renewable energy developers and transmission developers are demanding in a new "report" recently issued by the Astroturf-y sounding "Americans for a Clean Energy Grid."  These entities stand to make a collective bundle of cash if they can continue to build new generators in Lower Slobovia, along with new transmission to connect these generators to Metro City.  In order to do this, they have to convince FERC to change this rule and knowingly shift costs among consumers in a way they may not understand or notice.  However, they want to do A LOT of it, with some calling for doubling or tripling the amount of electric transmission in this country.  No matter how widely that's cost allocated, they won't be able to hide the gigantic spikes in your electric bill.  There's a limit to how much can be hidden by expanding the captive consumers who pay for it. 

It also hurts electric consumers in Metro City, who could maybe get cheaper electricity from local generation in their own community.  If FERC goes all in on widely-dispersed centralized generation and long-distance transmission, as these greedy corporations suggest, they are slamming the door on community-based, centralized generation forever.  A handful of corporations will get very, very rich, but Metro City will suffer economically from loss of energy jobs, increased electric bills and loss of reliability. 

Never fear though... because when Mr. Metro City's bill starts going up to pay for all this remote electricity, putting solar panels on his own roof is going to start looking mighty appealing.  The higher his bill goes, the more economic the cost of generating his own electricity becomes.  Eventually, he'll pull the plug and stop buying remote electricity in favor of generating his own.  When he does this, the costs of the remote electricity that he was paying get spread to his neighbors, which increases their costs even more.  And then they look at Mr. Metro City's rooftop generator and do the figuring for one of their own.  When that happens, their costs of remote electricity get shifted to their own neighbors in Metro City West.  And so on, and so on... until a majority of users have separated themselves from the grid and the costs of remote electricity.  At that time, the remote generators and long-distance transmission lines go broke because they're no one left to pay for them.

Just say "no" to changing FERC's Order No. 2003 to give renewable generators a free ride to Metro City.  Stop the GREEN GREED!  It hurts electric consumers!
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But Wait!  There's More!

1/12/2021

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A Missouri landowner recently commented that Grain Belt Express is starting to remind him of those folks who call to extend his car warranty.  It's all huckster, all the time.  Everyone is familiar with the infomercial huckster... he's not only selling a GREAT product, he's offering you bonus free gifts with your purchase.
BUT WAIT!  THERE'S MORE!
Perhaps someone at GBE spent too much time watching infomercials over the holidays... or got too into the Native American urban legends over Thanksgiving break...

Who hasn't heard the legend that Native Americans sold Manhattan to the Dutch for $24 worth of glass beads?
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A Dutch West India Company representative sent a missive home in 1626:
They have purchased the Island of Manhattes from the savages for the value of 60 Guilders.
Ahh, those gullible "savages."  Tricked out of their land by shiny objects!
And now GBE is offering MORE for those eager savages... err... landowners who sign a voluntary easement to allow construction of GBE on their land!
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That's right!  In addition to 20% of GBE's valuation of your easement property, you will also receive a pair of work gloves and a hat that you probably won't want to wear out in public as their amazing "Thank You" gift! 

Not available in stores!  Call now!  Operators are standing by!
Seriously?  Invenergy thinks that landowners who have resisted all their efforts to negotiate the sale of an easement will be swayed to do so now by a pair of gloves and a hat that's likely to spawn numerous arguments with friends and neighbors when worn?

Perhaps they need to hire someone for a few late nite infomercials?  Might I suggest this guy?
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Grain Belt Express Admits It Plans To Change Project

1/10/2021

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In a recent letter to landowners, Invenergy admits that it is PLANNING to change its Grain Belt Express project:
Grain Belt Express has announced a proposed plan to increase the project's delivery capacity for Kansas and Missouri consumers.
This is a PLAN to change the project that was permitted by the Missouri PSC.  Invenergy admits that it will have to get this CHANGED PLAN approved by the PSC.
Grain Belt Express will be seeking regulatory approval for this plan...
But not yet.  Right now Invenergy has been telling the PSC that it hasn't decided to change the project yet and therefore can continue to operate under the existing permit.  Is that like asking your Mom if you can have a cookie after you've cleaned out the cookie jar?  The PSC isn't in the business of permitting projects after the fact... a utility project must be permitted before it begins activities.  Perhaps this is why the PSC has decided to hold a hearing on whether the changed Grain Belt Express project is no longer in compliance with the permit it was issued?

What other silly things does this letter say?
Increased Local Delivery to Kansas and Missouri
As you may be aware from recent news, Grain Belt Express has announced a proposed plan to increase the project's delivery capacity for Kansas and Missouri consumers. For many years before lnvenergy Transmission acquired the project, local stakeholders called for more of Grain Belt's power to be delivered locally. This plan makes sense as demand for clean energy has grown in Kansas and Missouri. For the first time, this would open the option for Kansans to benefit from energy produced in-state, and in Missouri, it would expand access beyond the 39 communities across the state that are already contracted to receive service from the line.
Under this plan, up to 2,500 megawatts of Grain Belt's 4,000-megawatt capacity would be delivered to Kansas and Missouri consumers, who would see up to $7 billion in energy cost savings over 20 years. This requires expanding the already-approved converter station in northeast Missouri, which would double the overall economic investment in Missouri to approximately $1 billion.
Local stakeholders called for increased local delivery of power from GBE?  Where?  When?  I don't recall that ever happening.  In fact, as far as the public is aware, GBE has failed to find "local" customers for all of its originally offered 500MW of delivery to Missouri.  That doesn't sound like a call for more local delivery.  It actually sounds like a call for LESS local delivery.

And the logic here is even worse... "local" delivery to Kansas would be effected by shipping power from Kansas to Missouri, and then back to Kansas?  Does Invenergy know how stupid that sounds?  Local delivery of power to Kansas would be most efficiently done on existing transmission.  You don't need GBE for that. 

Another problem with this "plan" is that GBE is a merchant transmission project (at least according to its current permits) that would negotiate service with voluntary customers.  If the "local" customers don't sign up for service, they receive none of it.  The customers of GBE would be distribution utilities that in turn sell electric service to retail customers.  There is no new "option" for Kansans to sign up for service individually.  They are captive consumers of whatever their electric provider decides to to, and  GBE has not revealed any voluntary wholesale customers, aside from a few municipalities who purchased "up to" 250MW of service (which is half of what was originally offered by GBE).  Where's the customers, Invenergy?

Expanding the converter station?  Has that been approved by the regional grid operator?  The grid operator must engage in numerous studies to determine how much power may be injected into the existing transmission grid by GBE.  Changing 500 MW to 2500 MW is going to be a significant increase in power.  It's going to require certain changes and upgrades to the existing grid, and Invenergy is going to have to pay for them all.  Perhaps Invenergy is planning to inject its power elsewhere on the grid?  The feasibility of expanding the converter station has not been made public.
Grain Belt Express will be seeking regulatory approval for this plan, which would also allow for project construction to proceed prior to approval in Illinois. In the meantime, as the proposed changes do not affect the approved route, project development activities are proceeding based on existing regulatory approvals.
Invenergy is going to ask for permission to build only a portion of the transmission line?  But GBE told the PSC that the economic feasibility of the line was premised on selling service to utilities in the eastern PJM grid at a much higher price, and in order to do that, GBE must be connected in Indiana.  Without the leg through Illinois, the project is not economically feasible.  Is Invenergy going to build a road to nowhere and hope that things come together later?  Doesn't sound very plausible, does it?  Invenergy would have a lot of explaining to do at the PSC before it got approved to do that.  In addition, GBE's Kansas permit requires approval in Illinois before it can build the project in Kansas.  Looks like two states would have to approve the road to nowhere.
In Kansas and Missouri, Grain Belt has moved from monopole to steel lattice structures, resulting in more compensation for landowners per structure.
Oh, please!  It's not about more compensation for landowners, it's because lattice structures are CHEAPER for Invenergy to build!  And why was it that lattice structures were compensated at three times the price of monopoles?  Because they're more invasive and take up more ground and are harder to work around.  Save the drama for your mama, Invenergy!
Grain Belt Express, along with its land partner, Contract Land Staff ("CLS"), is in active dialogue with landowners along the route as our team continues to sign voluntary easements in Kansas and Missouri. Thank you to those who have signed agreements to date. We value open conversations with landowners and landowners' attorneys to provide timely, accurate, and useful information that will allow you to make the best decisions regarding your land.
Voluntary.  All easements are voluntary.  So is "dialogue" with CLS land agents.  Thank you for signing an easement?  Did this letter really go out to landowners who have already signed voluntary easements?  Or was that some glaring attempt to make landowners believe they have missed the bandwagon if they have not signed up?  If so, that's pretty insulting to the intelligence of landowners.
Our goal is to secure all easements voluntarily and to make informed facility design decisions
related to your property. That is possible only with open communication. If we have attempted to contact you and we have not yet reached you or your legal representative, please contact your CLS representative at your earliest convenience.
Is Invenergy saying they have not yet made "facility design decisions" for the project?  I find that rather hard to believe.  It looks more like an attempt to get landowners to believe they can change the design of the project if they only call now.  Operators are standing by...

And then there's this.  I laughed so hard I gagged... and almost threw up.  Positive Energy?  Didn't the wheels fall off that when Invenergy rolled it out?  Who hasn't read all about it?
Positive Energy: Pass it Along
Finally, 2020 has brought some significant challenges to the world. We believe that Positive Energy is needed now more than ever. Grain Belt will bring affordable power for families and businesses, jobs for workers, and local investment in school districts, and public services - that's positive energy. With everything going on in 2020, we want to pass along positive energy to you, and hope you do the same. These days we all need it.
I don't know about Positive Energy... but I am positively revolted at GBE.  Is Invenergy positively lying to the PSC?  Is Invenergy positively negotiating with landowners under false pretenses when it negotiates for a different project than the one it has permitted?  Let's hope the PSC positively gets to the bottom of this!
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"Clean Energy" and New Transmission Will Triple Your Electric Bill

1/10/2021

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It's about time for a little honesty, isn't it?

The greenwashers like to claim that switching to "clean energy" will save you money on your electric bill.  If you don't think too much about it, you might believe it.  And if you take it on blind faith, you'd think you support a switch to "clean energy," right?  That's what you're supposed to think.

But, look at this:
In this scenario, a zero-carbon electricity system would drive wholesale power costs of about $90 per megawatt-hour on average. That’s roughly three times higher than typical average prices today, but still much less than the estimated $135 per megawatt-hour for reaching zero-carbon in a system limited to state-by-state action alone. 
It's not actually cheaper.  It's just cheaper than what it will cost you if they don't try to mitigate their "clean energy" deal with trillions of dollars of new transmission (possibly in your back yard).  That's like saying "I will mitigate cutting off your hand by giving you a band-aid afterwards."  Or "I will grease the stick before I jam it up your nose."  That makes it all better, right?  If we only promise to mitigate the injury, it's just like the injury never even happened.  They don't tell you about the actual injury, just about what it will look like with mitigation.

Except you're still going to be looking at a monthly electric bill that's THREE TIMES more than you're paying now. 

I can't afford that.  Can you?
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Will The Public Actually Get To Participate At FERC?

1/10/2021

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If you don't know "WTF" FERC does, should you participate in its proceedings?

Not knowing "WTF" FERC does hasn't stopped self-appointed "consumer advocates" like Public Citizen from weighing in at FERC on numerous proceedings in recent memory... and losing.

Now Public Citizen is all excited that Congress has directed FERC to submit a report with a plan for an Office of Public Participation.  Let's hope Public Citizen is first in line to learn exactly "WTF" FERC does so that it could do better in the future and quit wasting FERC's time with complaints that go no where.  But it seems more like Public Citizen is more excited about being first in line to score some public funding for its bleary and uninspired FERC filings.  They sure do spend a lot of time talking about funding in this article.  And they've sure spent a lot of time talking about the funding in the past.

But what has Congress done?  If you search for "Office of Public Participation" in the actual legislation, you get nada.  It's only in the "Explanatory Statement" that the office arises.  It says:
FERC is directed to submit to the Committees on Appropriations of both Houses of Congress not later than 180 days after enactment of this Act a report detailing how it will establish and operate the Office of Public Participation required under section 319 of the Federal Power Act, beginning in fiscal year 2022. As part of the report, FERC shall provide an organizational structure and budget for the office sufficient to carry out its statutory obligations. The report shall assume that funding for the Office of Public Participation will be derived through annual charges and filing fees as authorized by the Federal Power Act and the Omnibus Budget Reconciliation Act of 1986.
Oh, a report.  It doesn't actually establish the office.  That was done back in 1978, but it never happened because there was no funding.  Now Congress says FERC should assume the funding will be provided by charging fees to the entities it regulates, which is where FERC gets all its funding.  FERC's annual budget is recovered from the entities it regulates through fees.  FERC actually costs taxpayers nothing.  So, if additional funding is needed for this office, the fees must increase, or other spending must be decreased.  How much bellyaching is there going to be about funding?

And what exactly is an "explanatory statement" and why does it matter?
The intent of an “Explanatory Statement,” sometimes called “Report Language” is to emphasize, or clarify “Legislative Language.” All Divisions shall comply with the directives, reporting requirements, instructions and allocations within the specified time frames unless specifically addressed to the contrary in their particular Division “Explanatory Statement.” The Executive Branch of the Government could choose to ignore Directives. Rarely do Government Agencies fail to comply as they may face substantial repercussions.

So there is no new legislation.  The legislation remains as it was in 1978.
(a)
(1) There shall be an office in the Commission to be known as the Office of Public Participation (hereinafter in this section referred to as the “Office”).
(2)
(A) The Office shall be administered by a Director. The Director shall be appointed by the Chairman with the approval of the Commission. The Director may be removed during his term of office by the Chairman, with the approval of the Commission, only for inefficiency, neglect of duty, or malfeasance in office.
(B) The term of office of the Director shall be 4 years. The Director shall be responsible for the discharge of the functions and duties of the Office. He shall be appointed and compensated at a rate not in excess of the maximum rate prescribed for GS–18 of the General Schedule under section 5332 of title 5.
(3) The Director may appoint, and assign the duties of, employees of such Office, and with the concurrence of the Commission he may fix the compensation of such employees and procure temporary and intermittent services to the same extent as is authorized under section 3109 of title 5.
(b)
(1) The Director shall coordinate assistance to the public with respect to authorities exercised by the Commission. The Director shall also coordinate assistance available to persons intervening or participating or proposing to intervene or participate in proceedings before the Commission.
(2) The Commission may, under rules promulgated by it, provide compensation for reasonable attorney’s fees, expert witness fees, and other costs of intervening or participating in any proceeding before the Commission to any person whose intervention or participation substantially contributed to the approval, in whole or in part, of a position advocated by such person. Such compensation may be paid only if the Commission has determined that--
(A) the proceeding is significant, and
(B) such person’s intervention or participation in such proceeding without receipt of compensation constitutes a significant financial hardship to him.

(3) Nothing in this subsection affects or restricts any rights of any intervenor or participant under any other applicable law or rule of law.
(4) There are authorized to be appropriated to the Secretary of Energy to be used by the Office for purposes of compensation of persons under the provisions of this subsection not to exceed $500,000 for the fiscal year 1978, not to exceed $2,000,000 for the fiscal year 1979, not to exceed $2,200,000 for the fiscal year 1980, and not to exceed $2,400,000 for the fiscal year 1981.
It's not really a cash register for public participation.  Here's the thing... in order to be compensated, you have to win, and you have to substantially contribute to that win.  However, you'd have to spend the money up front without knowing whether or not you'd win.  Then you'd have to make a case why your participation was a hardship AFTER you'd spent the money to participate.  I can understand why a landowner affected by an energy project would be able to make that case, but some public interest group would not.  Therefore, it's NOT a fountain of funding for groups like Public Citizen.  But I kind of get the feeling that these groups are going to whine and cavort until they get their piece of the pie.

Public funding for intervenors sounds like a really good thing.  However, it rarely is, in practice.  Friends in Wisconsin tell me that the available public funding for intervention at the state Public Service Commission is regularly scooped up by various "public interest groups" who participate in the case TO SUPPORT THE UTILITY!  Landowners affected by the proposed energy project rarely receive funding for their efforts.  This isn't an opportunity to give affected people a voice in the process, it's a cash cow for sophisticated groups who have experience scoring grants and other free cash available for those who know how to write applications for free cash.

My expectations for FERC's Office of Public Participation?  If it ever gets off the ground, it will serve funding-savvy public interest groups, and not the disenfranchised folks on the front lines of the energy war.  They will still not know "WTF" FERC does, and will have no recourse but to continue their efforts to simply shout at FERC and disrupt its meetings.  What a complete waste of time and money.
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Might I Suggest Schadenfreude Stadium?

1/5/2021

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Try though I did to resist gawking at the train wreck that is FirstEnergy these days simply because it's a giant distraction, I simply couldn't resist the belly laugh I got from this article that suggested renaming the Cleveland stadium "Company A Stadium."
That's right... Cleveland gets to be embarrassed for another 10 years by having its football stadium named for a company mired in dirty deals.  Renaming the stadium gives me the giggles (and endless opportunities).  However, instead of focusing on the company, and creative names for it (WorstEnergy, Perpetual Estimate, or the ever popular FirstInfluence) might I suggest we focus on its victims?  Because that's who's thoroughly enjoying the schadenfreude oozing out of this spectacle... Schadenfreude Stadium.  It even has that kicky alliterative punch.  And who doesn't enjoy watching the Browns get their butt kicked on their home turf?  If only football could be influenced by corporate cash, lobbyists and front groups...

The schadenfreude is already thick at the stadium.  The "deal" to put FirstEnergy's name on the stadium was mired in muck from the very beginning.  Fired FirstEnergy CEO Chuck Jones (at the time merely a CEO in waiting) demonstrated for everyone who would listen that FirstEnergy's influence was vast... and he seemed rather proud of it.  Was this the beginning of the end for FirstEnergy?  While FirstEnergy's Empire of Influence had been going strong for decades, previous CEOs like "Tony the Trickster" Alexander didn't parade that stuff out in public like Chatty Chuck.  Chatty Chuck seemed to prefer the transparency of everyone knowing just how powerful he was.  Was it arrogance?  Or mere stupidity?  We may never know, but one thing's for sure.... First Energy's influencing days seem to be over for now.  Or else they're just going to have to get a little more cloak and dagger in carrying it out.

There are several audits of the company and its affiliates going on in two different states, in addition to the federal investigation that was made public last year.  Ohio regulators are looking into FirstEnergy's political and charitable expenditures.  The New Jersey BPU recently decided to open an audit of FirstEnergy's subsidiary in that state after its credit was downgraded.

Pardon the sickening simile, but FirstEnergy is like a giant boil that just got lanced... and all kinds of unspeakable things are leaking out of it.  One might be surprised if they didn't know better.  But for those who have been victims of FirstEnergy's Empire of Influence, its a schadenfreude shindig!

A new report claims that FirstEnergy funded a front group that attacked Cleveland Public Power last year.  The group, Consumers Against Deceptive Fees, claimed to be an "advocate" for CPP customers, although it was funded by FirstEnergy.  What reason would FirstEnergy have to spend money "advocating" for the customers of another utility?  Competitive ones, perhaps, but not "advocacy" ones.  Just another expensive front group funded by FirstEnergy, pretending to be an organic "grassroots" uprising of the people, although it is unlikely any unaffiliated "consumers" were involved.

FirstEnergy should stop with the front groups.  They rarely succeed... and they're quite expensive.  Who's paying for all this?  That's what the Ohio Consumers Council wanted to know in the Ohio case... did any of FirstEnergy's influencing costs end up in consumer electric bills?  Of course, FirstEnergy objected to answering.

How long can FirstEnergy continue to pretend the company had no idea how much influence was being purchased to support its money-making schemes?  And when will state regulators in the other states FirstEnergy serves launch their own canoes into FirstEnergy's river of filth?  Sounds like it may soon be time for a hostile takeover of certain FirstEnergy fiefdoms, either piecemeal, or swallowed whole by one of its fiercest competitors who may want to increase its own utility empire.

If Cleveland renames its football stadium Schadenfreude Stadium, I might even be tempted to visit.  Not to watch a game, however, but to soak up the schadenfreude.  I probably won't be alone.

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Ut-oh, Invenergy!

12/29/2020

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It looks like the Missouri PSC has finally tried to connect the dots between the project Clean Line said it was building and the one Invenergy has lately been promoting in the media and found that something is amiss.  The project that they permitted maybe is not the one Invenergy says it is now building, and the PSC wants to find out more.

On December 23, the PSC issued an order cancelling its prior briefing schedule using the existing evidentiary record, and has decided that it needs to hold a new evidentiary hearing on this matter.

New evidence!

That's exactly what is needed here!

This case is based on a complaint filed by the Missouri Landowners Alliance that purported that the project the PSC permitted has been modified by new project owner Invenergy.  Invenergy tried to bat the complaint away, claiming that it hasn't made any decisions on the project yet, and is only undertaking a public thought process (in the media!) in the interest of transparency. 

Yeah, right.  Because every corporate money-making scheme is always debated openly in the media.  Isn't it?

It seems that Invenergy's grandiose public relations campaign has accidentally inserted Invenergy's foot in its mouth.  Was that what you were going for, Beth Conley?  If so, it looks like you've done a bang up job!  I hope you celebrated by touring a couple of transmission substations with your family over the holidays.  Who doesn't love looking at that stuff?

The people and communities along GBE's route, that's who!

And, if she didn't do enough already, Beth recently claimed that Invenergy will apply for a new permit in Illinois in 2021.  Was that supposed to cover up for all the mistakes?  Are we supposed to now believe that maybe Invenergy is planning to build the project Clean Line has permitted?  Sorry, Beth.  There are still too many unanswered questions.  And it looks like the MO PSC intends to get to the bottom of them.

Whoopsie!

Merry Christmas, Missouri! 
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Pennsylvania Judge Recommends Transource Independence Energy Connection be Denied

12/29/2020

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Merry Christmas, Pennsylvania!  Pennsylvania Public Utility Commission Administrative Law Judge Elizabeth Barnes issued her decision recommending denial of Transource's IEC project on December 22, just in time for Christmas.  This is an amazing gift to the citizens of Pennsylvania, who have been battling this unneeded project since 2017.

While the judge recommended that the Commissioners deny Transource's application, the Commission is free to reject her recommendations and approve it anyhow.  While this is unlikely, it could happen.  The regulatory system in Pennsylvania appoints administrative law judges to hear the case, evaluate evidence, and make determinations based on law.  In some states, such as Maryland, the actual Commissioners hear cases and issue decisions directly.  But in Pennsylvania, the PUC relies on the expertise of administrative law judges to handle the hearings and simply make recommendations to the Commissioners.  Cross your fingers and knock on wood that the Commissioners rely on the judge's expertise to deny the application and aren't sidetracked by any of Transource's nonsense and lobbying to reject the judge's hard work.  Because Transource will do that, you know.  It will now focus its attention on the Commissioners and try to convince them to reject the judge's recommendation.  It's what utilities do when faced with rejection... file more briefs and hire more lobbyists to pressure elected officials to put the squeeze on the Commissioners to reject the judge's recommendation.  Of course, you can participate in this phase of the case as well by filing new comments asking the Commissioners to accept the judge's recommendations, and contacting your elected representatives expressing your support for the judge's recommendations and asking that they also support the judge.

And while you're busy writing comments, you might also send a note to the PA Office of the Consumer Advocate (OCA) thanking them for all their hard work on this case.  After reading the judge's decision, I believe that OCA's participation was crucial to proving that the Transource IEC is not needed.  Lack of "need" for the project was the threshold issue for the judge's denial, although there was reason to deny on other factors under consideration.  The judge stated, "the IEC Project is no longer needed for the purpose for which it was designed in 2016."

The judge found that the "congestion" that was PJM's basis for the project has evaporated.  She recognized that congestion is fleeting and that new transmission to alleviate it is not always a good thing.  She also recognized that PJM's forecasts are not necessarily accurate.
In the simulation that PJM performed in 2015, the PROMOD model simulated a congestion cost of $110 million occurring on the AP South Reactive Interface in 2019. Tr. at 2936. According to the simulation, the AP South Reactive Interface had the highest congestion cost simulated in 2019 when compared to the Safe Harbor-Graceton, Conastone-Peach Bottom, and AEP-DOM constraints. Id. In reality, Congestion on the AP South Reactive Interface cost approximately $14.5 million in 2019, substantially lower than predicted by PJM’s forward-looking models. Tr. at 2921. This indicates the erroneous assumptions that were used to calculate the benefit-cost ratio that PJM relied upon when selecting the IEC Project for approval.
Hear that, PJM?  All your complicated reasoning for the project didn't fool the judge.  She also recognized that "Transource seems to be creating new reasons for the project."  All those arguments about the project being for "reliability" didn't fool the judge either.  Regarding the argument that Transource would relieve transmission congestion that was creating "discriminatory prices," the judge didn't buy that either.
Transource is a foreign company asserting that economic congestion creates artificially low prices in the unconstrained region resulting in rates that are discriminatory and unfair for customers in the constrained region. I reject this premise as evidence to find “need” pursuant to the meaning of the term in 52 Pa. Code Section 57.76(a)(1). Economic congestion is not a form of rate discrimination that implicates the Commission’s authority, but may be an appropriate market-based response to the wholesale power market. Any difference in rates above versus below the point of congestion or constraint can represent reasonable differences in the cost to serve customers in the constrained region as opposed to those in the unconstrained region. I do not find rates in a constrained area necessarily per se discriminatory.

No one from Maryland or Washington D.C. testified at any public input hearing to complain about discriminatory rates in favor of the project. Some individuals from Maryland spoke against the project at public input hearings. For example, Patty Hankins of 229 St. Mary’s Road, Plyesville, Maryland testified against the project as there was insufficient cost updates from 2015 data to warrant the project. She feared projected costs kept escalating and she argued the existing Otter Creek to Conastone 230 kV line rebuilt by PPL could carry two 230 kV circuits but was currently carrying one as of June 1, 2018.  Ms. Hankins testified that the cost to add 230 kV lines to PPL’s existing transmission towers would cost less than the IEC project.

I heard no complaints from any individuals that rates were too high or prices discriminatory in Washington D.C. or in Maryland compared to Pennsylvania, or that they did not have reliable electric service in those areas. Only Transource’s witnesses testified that there was price discrimination. PJM did not identify or consider non-transmission alternatives to alleviate the projected congestion in the AP Interface.
None of these supposedly benefiting ratepayers from the city thought they needed the project.  It was only PJM and Transource that thought it was a good idea.  The judge also recognized that congestion is primarily a market signal to build new generation below the transmission constraint.  If PJM proposes transmission to solve every transmission constraint, its markets never get the chance to work.  Instead, she recognized that there are other solutions to any congestion problem.

The judge also mentioned that when the math is done correctly, the costs of the project outweigh any benefit.
PJM’s forward-looking model projects that if the IEC Project is constructed, the PJM region would only experience net benefits of $32.5 million over a period of 15 years and Pennsylvania, in particular, would experience a net increase of $400 million in wholesale power prices over that same period of time. This result would be produced by constructing a transmission project that is guaranteed to cost at minimum $476 million and will impact the natural, historic, scenic, and aesthetic lands of Franklin and York Counties, Pennsylvania, and the property rights/market values of those Counties’ landowners. Accordingly, while there may be some forecasted price differences in PJM’s forward-looking models, any reduction in “price discrimination” for regions below the constraints is outweighed by the anticipated harm caused to Pennsylvania by the IEC Project.
She also didn't buy all the stuff about other "benefits" for Pennsylvania, such as jobs, increased generation, increased taxes, and economic benefits.

The judge recommended not accepting the settlement for the eastern half of the project because it was not in the public interest.  While Transource alleviated much of the impact on the eastern leg of its project, the settlement did nothing to change the project's western half.  Alleviating impacts on only a portion of the project did not make the entire project in the public interest.  In other words... the impacts on the western part of the project matter, too.  The judge noted that Transource and PJM never proposed making changes to the western half of the project to alleviate impacts, although perhaps they could have.
Route C selected as the Proposed Route for the West Portion of the IEC Project does not have less of an overall impact to the environment than would be utilizing at least in part the existing parallel route owned by West Penn Power already in existence. A separate bid by West Penn Power dubbed project 18h, was rejected by PJM during the competitive bidding process. However, from an environmental impact view, using a line and its ROW already in existence would have less environmental impact on Falling Spring, cross country course, organic farmland, vegetation, woodlands and wildlife along the West Portion of the IEC Project. Thus, I cannot find “minimum adverse environmental impact” as required by Section 57.76(a)(4). There is no evidence Transource and West Penn Power ever negotiated or agreed to any arrangement whereby West Penn Power’s existing parallel transmission system could be upgraded or utilized for an alternative route. I am persuaded by the business representatives, Superintendent, Quincy Township Supervisors, and landowners to find the environmental impact in Franklin County is not minimalized by the Western route.
Could Transource and PJM fall on their sword once again and work with West Penn Power to utilize their existing right of way?  Yes, but that outcome is highly unlikely.  There would be absolutely no reason for Transource to do so if it loses the income from another leg of this project.  They need to be done with this.  Now.

The judge also found the impacts to western PA to be unacceptable when PJM could have selected another option to alleviate the congestion that would have utilized existing rights of way.

All in all, the judge did a remarkable job in this case and her recommendation should stand.  Her decision was long (124 pages!) and thorough, but is good reading for everyone involved in this case.  Let's hope a new year brings an end to the Transource IEC and PJM will finally abandon this project before it costs us any more money.  Oh, we'll all still pay for the costs to date (including the surveys, land agents, and other development costs Transource merrily incurred while this case was winding its way through the regulatory commissions in two states), plus 11% return on equity until paid in full.  But that's another case yet to come, and this time at the Federal Energy Regulatory Commission.

Well done, Pennsylvania!  Congratulations to all the opponents who fought so long and so hard!
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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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