StopPATH WV
  • News
  • StopPATH WV Blog
  • FAQ
  • Events
  • Fundraisers
  • Make a Donation
  • Landowner Resources
  • About PATH
  • Get Involved
  • Commercials
  • Links
  • About Us
  • Contact

Social Media Proves Too Real For Invasive Projects

10/3/2019

1 Comment

 
Big, invasive infrastructure projects have lost the social media battle.  This isn't new, it happened before the war even started.  There's no way these projects can ever win the social media battle.  However, that doesn't stop them from trying.  But, they're only fooling themselves!

Take a look at this silly article in a "renewables" publication.  Oooh... use of NIMBY in the headline and throughout the article.  Name-calling is one of the seven common propaganda devices named decades ago by a now defunct U.S. organization, the Institute for Propaganda Analysis.
Name-Calling: "Giving an idea a bad label and therefore rejecting and condemning it without examining the evidence." This is the use of negative words or labels to create prejudice against some person, group or idea. If you fall for this you have been driven to reach a conclusion without examining the evidence.
Interesting these folks need to use propaganda to try to convince their own people that they can win this war.  They need their own people to believe anyone who opposes industrial wind is a self-interested "NIMBY" who shall be dismissed out of hand without consideration of his or her arguments.  That's pretty revealing right up front.  The industry dismisses the concerns of community members automatically.  How could such a project fool the community into believing they care?  They can't.

Who writes this drivel?  A "clean" PR firm drumming up business for "Corporate social media strategy and management."  Take a look at this company's website.  They have written extensively about their "success" with digital media campaigns for "clean" companies.  And, hey, look... they have a facebook page.  Maybe you want to connect and let them know what you think about their article?  They've created a post about it.  They want your comments.  The irony of Tigercomm itself being taught the very lesson it writes about is just too delicious.  Let them know what you think about the opinion expressed  in their article.
Such as:
There’s a growing concern within the wind industry that in communities considering hosting wind farms, the loud minority of opponents is increasingly trumping the silent majority of supporters who want the jobs and revenue that come with projects.
Minority?  Majority?  Where's the unbiased poll numbers?  Or is this contention just created out of thin air to support Tigercomm's opinion?  My experience has been that the only ones who support a new wind farm or other large infrastructure project, such as an electric transmission line, in a community are the ones directly profiting from it.  It's pretty much impossible to buy an entire community, but wind farms do try, with their "Good Neighbor Agreements" that effectively gag signatories from vocal opposition.  If the vocal opposition is such a minority, why would a wind farm pay to gag them?  It's well known that being against something generates more energy than being for it.  Why don't wind farms use their cash to pay the silent majority to be vocal, instead of paying the vocal opposition to be silent?
At best, Nimby pushback is raising costs through delays. At worse, half-a-billion-dollar wind farms are dying because 50 people shouted at their county commissioners during a public meeting.
My, aren't we creative and colorful?  That's a pretty loaded statement.  That make-believe community probably only consists of 52 people who spoke out for or against the project (rarely shouting).  When faced with a threat, rural communities circle the wagons and it's the whole of their energy that is so powerful, not just a handful of shouters.
Facebook is “the new town square” in rural areas, according to Avangrid Renewables’ director of communications, Paul Copleman, as it’s eclipsed traditional local newspapers, many of which are dying.

Nimby groups organise online, then they show up in the room. The wind IPPs have ceded the digital ground to such an extent that “the opposition is eating our lunch”, according to Matt Wagner, manager of renewable energy development at Detroit-based DTE.
It's the digital town square because it's composed of real people with real relationships to each other communicating without the media filter controlled by corporate public relations spinners like Tigercomm.  Real people, real information.  But it's only a window into the town square room.  The real interaction happens in the community, in person, a place that the corporation isn't.
Projects are being built in communities that see undeveloped land as something to be conserved, rather than a resource to be used.
Oh my!  The community IS using its land as a resource.  It's growing food for a profit!  "Undeveloped land" is fully developed to its best and highest purpose - agriculture!  Contrary to urban legend, not all land has to be covered with man made infrastructure to be useful.  Furthermore, it is up to the owners of the land in the collective interest of the community to determine the best use of their resources.  The last thing a farmer needs is some city folks coming in and telling them how to use their land.  This is a complete no-brainer and at the very heart of rural resistance to infrastructure intended to serve the cities.
Nimbys are being helped with outside organisers and money, much of it from incumbent energy sources.
Oh, for goodness sake!  Would you stop with the "dark money" lies?  True grassroots opposition raises its own money.  In more than a decade of working with grassroots opposition groups, I have NEVER seen ANY money given to these groups by outside organizers.  Grassroots money comes from the community, in small amounts.  Any opposition coming from industry is deployed by the industry in tandem with what the grassroots organization is doing.  Industry opposition attempts to siphon grassroots energy for its own purposes, but the two are not connected or coordinated.  Grassroots opposition is the independent leader and industrial opposition is simply an opportunistic parasite.  Industry opposition would never trust grassroots organizations to spend its money to best serve the industry.  They spend it on their own campaigns to oppose things, they don't give it to us.  Now, I know you think it bolsters your name-calling devices to say "NIMBYS" are financially supported and controlled by your corporate opponents, but it's simply not true and the only ones who believe it are the ones whose narrative it fits into -- namely the climate change shouters.  These folks don't show up in small towns to participate in individual infrastructure battles therefore they are irrelevant.  Enough already with the "dark money."  You have absolutely NO PROOF to back up this claim.
The good news? Among the IPP staff on the front lines of community engagement, there is a growing consensus that the industry must up its digital game by more proactively meeting community members where they are — online, not just across the table at the diner.
In a series of interviews with IPP staff, we found widespread agreement on the advantages of increased digital engagement, as well as basic best practices.
They shared nearly a dozen benefits the industry is missing due to digital constraints, including insulating persuadable community members against the predictable arguments of critics; profiling and amplifying supporters’ stories, and creating a credible alternative information source to Nimby Facebook groups.
Interviewees also collectively produced a list of digital best practices for their executive teams to consider, which included starting communicating early, before opposition groups form and gain momentum — it’s a race to define; showing wind farm benefits through supporters’ stories, captured on camera; and showing people the experience of those currently living near existing wind farms.
As Apex Clean Energy vice-president for public affairs, Dahvi Wilson said: “Opponents of one company’s projects can encourage and strengthen opponents to another company’s projects. Like it or not, we’re in the digital boat together. We need more companies to increase their investment in digital community engagement.”
At the staff level, the consensus for upping the industry’s digital game is solid and growing because, as Adam Renz, manager of business development for Pattern Energy, said: “Social media can de-risk projects.”

Insulating persuadable community members?  Insulating them from what?  Keeping them in their sterile corporate bubble where the only facts they learn are cherry-picked for their favorable opinions?  Do you folks even realize where you are?  You've invaded these people's community!  They live there!  They hear and see lots of stuff in their community.  They're real people with real lives.  You cannot digitally control real people.

Presenting "stories" of people who love wind or transmission does little to convince people to support it.  Everyone realizes those are paid-for opinions and dismisses them out of hand (sort of like how the NIMBY and "dark money" arguments are supposed to work).

In my 10+ years of grassroots opposition organizing and strategizing, I've seen nothing but failure from corporate social media campaigns.  They cannot be sanitized effectively, and that's the foundation of public relations.  If a corporation creates a Facebook page, the opponents will swarm it and post negative comments.  The corporation must delete comments and block people.  The tide of opponents is so strong though, that more keep coming.  The Facebook page is like a ghost town, with all comments deleted or not viewable (like where a post says it has 72 comments, but when you try to view them, only 1 shows up, and it's complimentary).  There's a certain look to infrastructure company social media campaigns that defies the very nature of social media.  They are a one-way street with no interaction.  Social media is about interaction.  Without that, it's just a webpage.  Essentially, infrastructure company Facebook pages are nothing but a website.  But they're a fun-filled website where opponents get to post their opinions for everyone to read (until they're removed by the corporation).  We have fun playing cat and mouse with you folks when we have free time, or just need a quick giggle to get through a difficult project.

Get ready, Tigercomm...  isn't it almost time for lunch?
1 Comment

When You Don't Get What You Want Fast Enough...

10/1/2019

0 Comments

 
Remember FERC's Transmission Incentives inquiry?  The ink is hardly dry on the hundreds of initial and reply comments filed at the agency this summer, but the greedy utility industry just can't wait to create an easy way to increase their profits.  Or maybe they're not confident that they can twist enough arms at FERC to get their own way and have given up on that in order to pursue another way to get what they want?

In FERC's inquiry released this spring, the agency sought opinions about the security of our transmission system, and ideas about actions it could take to boost security in the form of incentives.

Security
27. Enhancing the physical and cyber-security of existing jurisdictional transmission facilities, including new facilities, can improve the facilities’ ability to contribute to the reliability of the bulk power system. Addressing the security of the transmission system is a priority of the Commission.

Q 32) Should the Commission incentivize physical and cyber- security enhancements at transmission facilities? If so, what types of security investments should qualify for transmission incentives? What type of incentive(s) would be appropriate?
Q 33) How should the Commission define “security” in the context of determining eligibility for incentive treatment? For example, should the Commission define security based on specific investments or based on performance of delivering increased security of the transmission system?

FERC intends to deal with this issue, although it is questionable whether "security" is a basis for awarding financial incentives under Sec. 219 of the FPA, which is the only existing statute authorizing FERC to award transmission incentives.

So, what the heck is this?
Sens. Lisa Murkowski (R-Alaska), Joe Manchin (D-WV), James Risch (R-ID), Maria Cantwell (D-WA) and Angus King (I-ME) introduced last week a bill designed to help strengthen the nation’s electric grid.

The Protecting Resources On The Electric grid with Cybersecurity Technology (PROTECT) Act directs the Federal Energy Regulatory Commission (FERC) to incentivize cybersecurity investments by electric utilities.
The measure also establishes a grant and technical assistance program for advanced cybersecurity technology at the Department of Energy (DOE).

Key provisions of the bill include directing FERC to issue a rulemaking on rate incentives for advanced cybersecurity technology and establish a grant program at DOE for utilities that are not regulated by FERC to deploy advanced cybersecurity technology.
Our Congress critters have introduced legislation to create a new statute just to deal with security issues.  Does this indicate that the critters believe security isn't covered by Sec. 219 and needs a separate mandate?  If that's the case, there are a whole bunch of other issues FERC is considering in the context of Sec. 219 that also fall short.  Or are they just marching in tune to their campaign donors to speed things up?  We all know FERC is going to take its own sweet time on the incentives inquiry.  Like a really, really long time.  Increased utility profits just can't wait!  Does this mean that all the other issues covered in FERC's inquiry will find their own home in separate new legislation?  Is FERC going to be left holding a deflated balloon, where all the transmission incentives have migrated away from Sec. 219?  Why not amend Sec. 219 instead of creating new legislation?  This whole thing makes little sense.

Anyhow... what would this proposed legislation do?
Not later than 180 days after the date of enactment of this section, the Commission, in consultation with the Secretary of Energy, the North American Electric Reliability Corporation, the Electricity Subsector Coordinating Council, and the National Association of Regulatory Utility Commissioners, shall conduct a study to identify incentive-based, including performance-based, rate treatments for the transmission of electric energy subject to the jurisdiction of the Commission that could be used to encourage—
‘‘(1) investment by public utilities in advanced cybersecurity technology; and
‘‘(2) participation by public utilities in cyberse- curity threat information sharing programs.
So, let me get this straight... in addition to FERC considering this very same issue in its transmission incentives inquiry, it's also going to conduct a taxpayer-funded "study" in consultation with a bunch of other quasi-governmental agencies, some of which actually have the authority to simply order utilities to undertake increased security measures?  The Commission itself, as well as NERC, have existing authority to order utilities to undertake security measures to protect their systems.  If this was such a big problem, you'd think they'd do so quickly, before China turns the lights off.  Instead, we're going to waste money "studying" ways to reward public utilities for protecting their own systems, a duty they already have.

INCENTIVE-BASED RATE TREATMENT.—Not later than 1 year after the completion of the study under subsection (b), the Commission shall establish, by rule, incentive-based, including performance-based, rate treat- ments for the transmission of electric energy in interstate commerce by public utilities for the purpose of benefitting consumers by encouraging—

‘‘(1) investments by public utilities in advanced cybersecurity technology; and
‘‘(2) participation by public utilities in cyberse- curity threat information sharing programs.

We've got to provide financial "encouragement" for utilities to protect their own systems?  Instead of ordering utilities to protect their systems, we're going to pay them extra in order to do so voluntarily?  This is nothing more than allowing utilities to set the price at which they agree to be regulated.  Ridiculous!

Furthermore, guess who pays the extra incentives?  You do, I do, everyone does, in their electric bill.  Congress is giving away our money because they believe it "benefits" us.  They've even built in a protection for us...

RATEPAYER PROTECTION.—Any rate approved under the rule issued pursuant to this section, including any revisions to that rule, shall be subject to the requirements of sections 205 and 206 that all rates, charges, terms, and conditions—

‘‘(1) shall be just and reasonable; and
‘‘(2) shall not be unduly discriminatory or pref- erential.

Requiring consumers to pay extra to "encourage" utilities to protect their systems, when the same protection could be had by simply ordering utilities to fulfill their obligation to keep their system safe, is not just and reasonable.  It's unjust and absurd.

But, we're not done yet!

ESTABLISHMENT.—Not later than 180 days after  the date of enactment of this Act, the Secretary, in consultation with the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, and the Electricity Subsector Coordinating Council, shall establish a program, to be known as the ‘‘Rural and Municipal Utility Advanced Cybersecurity Grant and Technical Assistance Program’’, to provide grants and technical assistance to, and enter into cooperative agreements with, eligible entities to protect against, detect, respond to, and recover from cybersecurity threats.

While big, corporate, public utilities will benefit from increased rates paid by their consumers who use their systems, small publicly-owned, cooperative and municipal utilities won't be left behind.  These small utilities are operated in the interest of their customers and don't turn a profit.  Whatever it costs to serve is the price their ratepayers pay.  Except with this legislation, these utilities will just be handed some cash to use to provide benefits to their customers.  That cash comes out of the U.S. Treasury, that we all pay into.  So while public utility customers pay to "secure" their own systems, we all pay to "secure" the small not-for-profit utilities so their customers don't have to shoulder the cost.  Does this even make sense?  Nope.  The cost-causer should pay the costs for service. 

Why are all taxpayers paying to secure the systems of small town municipal utilities?  Is cyber security that much of an issue that we have to act now and spend a bunch of taxpayer money?  If so, just order these utilities to secure their own systems and collect the costs from their ratepayers.  No financial incentives to "encourage" them.  No taxpayer dollars to get the job done (or be wasted, like a lot of federal grants).

This is utterly ridiculous.  Let your Congress critter know you don't support this and want your utility service to be made safe now through regular ratemaking.


0 Comments

Transmission Line Deciders Cited for Conflicts of Interest

9/23/2019

0 Comments

 
On August 20, 2019, Commissioners of the Wisconsin Public Service Commission stunned hundreds of onlookers at the Madison headquarters by dismissing a lower cost, non-invasive alternative developed by PSC staff engineers and selecting the Cardinal Hickory Creek (CHC) transmission line. At their one and only public discussion on the topic, Commissioners offered no factually based explanations.

Unsurprisingly, their omissions ignited wide suspicion that commissioners had acted on behalf of their personal affiliations with utilities at the expense of electric customers and communities.

Last Friday, the Driftless Area Land Conservancy and Wisconsin Wildlife Federation acted on facts in the record and formally motioned PSC Commissioners Mike Huebsch and Rebecca Valcq to recuse and disqualify themselves from the case due to conflicting affiliations with utility interests.

The motion cites Commissioner Valcq’s years of work in a law firm supporting the profit making interests of WE Energies (WEC Energy Group), who is 60% owner of American Transmission Company (ATC).

Wisconsin Public Service Commissioners are required by state law to give equal consideration to electric customers who pay the long-term, high-interest debt on all new utility projects as well as look out for the financial stability of state for-profit utilities.

While electricity use has been flat over the last ten years, Wisconsin utilities have benefited from historic rate and meter fee increases. A successful law suit by a
coalition of manufacturing users in 2016 showed that Wisconsin utility spending towards transmission doubled from 2005-2015 while customer payments to meet this
spending increased four times.

Among conflicts of interest cited for Commissioner Huebsch are his past and ongoing collaborations with the transmission builders and other utilities in the design of
regional planning that ATC used in the CHC proposal. During the PSC hearings in June, a witness representing this planning confessed that its assumptions and outcomes were never reviewed by impartial industry professionals. The economic planning Huebsch backed defined future customer spending, future customer usage and eliminated competitive alternatives -- all leading to large electric bill increases and CO2 emission
increases over time.

Specifically, Huebsch’s planning input helped establish $200 to $282 billion in new power plant spending across the Midwest and, unexplainably, it assumed that flat electricity use would suddenly start increasing. Introducing further economic harm to electric customers, Huebsch backed planning limited increases in energy efficiency investment to 10% and, astonishingly, predicted there would be no increases in installations of solar on homes and businesses through 2031. Despite intentions for the expansion planning to favor the economics of the CHC proposal, PSC staff estimates found it would not meet minimal monetary requirements in 8 out of 11 cases they evaluated.

For these and other reasons, most observers expected Commissioners to choose the PSC staff’s alternative. Named the "Base with Asset Renewal Alternative", it is founded on rebuilding two, 1950-era transmission lines at the Mississippi River at Cassville, Wisconsin. Staff reported to Commissioners that their alternative would have comparable reliability benefits, comfortably meet state economic requirements and would cost only $900,000 compared to $2.2 billion Cardinal Hickory Creek would require of Wisconsin and regional ratepayers.

It is expected that the Commission’s Administrative Law Judge will respond to the motion to disqualify Commissioners Huebsch and Valcq from the Cardinal Hickory Creek proceeding in the near future.

The motion can be accessed on the PSC website.
0 Comments

Climate Confessions

9/20/2019

2 Comments

 
Shuffling through the mini-mountain of utility dreck that greets me from my email each morning is a task best performed with a large pot of coffee.  Most of it is so dry and boring that it spontaneously combusts on its way to the cyber trash.  But every once in a while you come across a tasty nugget, like this admission from an investment analyst panning American Electric Power.
Please note that the future cash flows from these assets are supported by long-term power purchase agreements (“PPAs”) and in the case of the Santa Rita East Wind Project, virtual power purchase agreements (“VPPAs”), better enabling these assets to pad American Electric Power’s future net operating cash flows. One of the driving forces behind those PPAs and VPPAs is a growing corporate need to appear to be “green” and that involves acquiring the rights to the electricity produced from renewable power plants (even if those corporate entities aren’t directly consuming the electricity produced). Another reason involves the ever-growing demand from utilities all across America to source a growing percentage of their electricity (meaning total electricity sold to end consumers) from renewable sources (whether for long-term corporate planning purposes or for regulatory reasons).
So, going green is nothing but a scam?  Of course it is!  Corporations aren't actually using "green" electricity to power their businesses, they're just pretending they are because millennials want to believe the actions of others are making up for their own carbon footprint.

NBC got seriously mocked recently for its "Confess Your Climate Sins" project.  The self-proclaimed "climate warriors" apparently don't practice what they preach, despite a growing (and profitable) greenwashing epidemic that attempts to control society.  Eating meat?  That's bad all of a sudden, and not for the health reasons your doctor has been warning you about for decades.  Eating meat is bad for the climate.  Ditto plastic straws and single-service eating utensils.  Save the planet, catch a hideous disease from poorly washed restaurant ware.  Air conditioning is bad.  Sweat away your carbon guilt instead.  Honestly, how much of this is an actual problem, and how much is sheep-controlling propaganda pushing a political agenda?

There's only so far it can go before it jumps the shark.  And as it speeds up, we're getting closer and closer to waking up to bullshit in your cup.

The dishonest "greening" of corporate America mentioned in the AEP analysis is also on the same trajectory.  Do people really choose products from companies pretending to be "green," even if they're more expensive?  Maybe only the climate sheep who secretly eat bacon locked in their closet at 2 a.m. and absolve themselves of their climate sins by anonymous online confession.  The rest of us don't care.   Corporations aren't using green energy!  They're making guilt payments to renewable energy producers so they can pretend to use green energy.  The analyst recognizes the scam of renewable energy credits, or RECs, which are "the social attributes of renewable energy."  What's a social attribute anyhow?  It's a completely manufactured concept that an electron of energy generated has two revenue streams.  The first is the sale of the actual energy produced.  An electron is generated and someone buys and uses it.  It's the only real attribute.  The second assigns a fake "social attribute" REC to the electricity generated and bought by someone else.  You can purchase this "social attribute"  even though someone else has actually purchased the electron that created it.  Corporations purchasing RECs are purchasing nothing at all, engaging in a gigantic scam that allows them to claim they use renewable energy even when they don't.  It's nothing more than corporate virtue signalling used as a marketing ploy to sell more product at a higher price to the greenwashed masses who think they're absolving their climate sins by using their favorite shampoo "made by green energy" so that they can offset that sin and get their Starbucks in a disposable cup and grill a steak on Saturday night.  And it's only going to work for so long.  In fact, the hypocrisy of the climate change religion is actually starting to leak out.  At some point, the hungry, diseased, dirty, and sweaty masses are going to revolt completely.  It's inevitable.

Hey, guess what?  Rich east coast communities don't want to be burdened by offshore wind, although they profess to love green energy.  I wonder how many of them confessed to NBC?
Dear Liberal Media Climate Change Gods, hear my confession and absolve me of my sins.  Although I preach to others in order to shame them about their carbon footprint, I don't want an electric cable buried under MY beach. Can't we find some downtrodden serfs in a red state and force them to host renewable energy infrastructure to power our waterfront McMansions?  Pass the bacon, but do it quietly.  In wind energy's name I pray, Amen.
Clean energy is great, as long as it's in someone else's backyard. 

Big wind is busy repowering all their taxpayer funded wind turbines so they can lock in production tax credits for another 10 years before the tax credit goes away entirely.  And it's generating literally tons of landfill waste!  The fiberglass blades cannot be recycled and must be crushed and landfilled.  I couldn't use enough plastic straws in my lifetime to equal just one obsolete wind turbine blade, so quit preaching about the straws already.

And then there's the SF6 thing recently making news.  Apparently it's worse for the climate than CO2, and it's mainly used by the electrical industry.  So, as we increase transmission and substations to serve renewable generators in order to save the climate, we're actually destroying it faster.
The electrical industry continues to be the largest user of SF6 because of its superior properties as a gaseous dielectric insulating medium to prevent high voltage electrical breakdown and electrical explosion hazards. Advantages resulting from its high dielectric strength, compared to air, nitrogen, oil and fluorinated ketones, include size reduction of electrical equipment, superior arc-quenching protection in circuit breakers, self-healing of arcing products, large current interruption, noise-free operation, minimal moisture problems, lower fire risk, absence of carbon deposition, and low maintenance cost.
Currently, electrical utilities and equipment are responsible for consuming 80% of the 10 000 tons of SF
6produced every year, an amount which is growing with the increasing global production and demand for renewable forms of energy, such as wind and solar. As a result, there has been an increase in the number of connections to the electricity grid compared with the traditional fossil power stations, with the consequential rise in the use of switchgear to deal with arcing and to stop short circuits.
Climate religion is expensive.  And the money it generates is all going into the pockets of corporations, so naturally they have a pecuniary interest in promoting it.  The "green" movement started decades ago by environmental groups has been completely co-opted by corporate America because it increases their profits.  And this is why American Electric Power wants to buy renewable generators and build new transmission lines to serve them.  It's about profit, not climate religion.  Does Nick Akins eat bacon?  Google couldn't help me, but I bet he loves bacon.
Picture
But I do know he loves chicken wings.  Chicken wings are meat.  I wonder if he confessed to NBC?
I only love green energy because it increases my company's dividend and ultimately my bonus.  I'm sitting here with a beer (not that cheap, weak, wind-powered Budweiser yellow beer, but a full-bodied, expertly crafted Arrogant Bastard Ale) and I've got chicken wing sauce all over my face.  What time's the game?
Keep building "clean" energy infrastructure near the rich and powerful.  Take away their bacon, and their air conditioning.  Revolt is brewing because the majority aren't buying into the green religion.  One day very soon these folks are going to wake up and realize their cup is full of crap and they've been had.  And then the popes and bishops of climate religion are going to cry big crocodile tears.  Boo.  Hoo.
2 Comments

Knocking A God From Its Pedastal

9/15/2019

0 Comments

 
There was a news article many moons ago that quoted PJM Interconnection's government schmoozer as saying "PJM answers to no one."  True in practice, but maybe not on paper.  To whom do the handful of regional transmission organizations and Independent System Operators answer?  On paper, perhaps, it's the Federal Energy Regulatory Commission.  In practice, it might as well be no one.  FERC does little to make RTOs/ISOs answerable to the consumers they're supposed to serve.  As a result, RTOs do whatever they please and answer to no one.

The RTO does whatever it wants and suffers no consequences.  If its planning or data is off, there is no accountability.  Payment of damages is not the solution since RTOs are not-for-profit entities wholly supported financially by electric consumers.  Essentially, consumers harmed by the actions of an RTO would be suing themselves.

Except now the Texas Supreme Court is considering whether the Electric Reliability Council of Texas (ERCOT) should pay damages to a company that built several new power plants based on ERCOT projections that subsequently went under because ERCOT's projections turned out to have been wildly wrong.
Panda Power built three power plants earlier in this decade, investing billions of dollars based on projections from the state’s grid manager that Texas desperately needed more generation to meet growing electricity demand. But those projections turned out to be wildly wrong — Texas, in fact, had plenty of power — and Panda ended up losing billions of dollars and putting one of the plants into bankruptcy, unable to sell electricity at prices sufficient to cover debts.
The Dallas company is now in court, alleging that the Electric Reliability Council of Texas intentionally manipulated the projections to encourage new power plant construction and relieve the political pressure that was building on the grid manager to increase generation in the state. The case has implications that reach beyond whether Panda gets its money back to issues as profound as the reliability of power grid, the integrity of the wholesale electricity market and the accountability of an organization whose decisions affect thousands of businesses, millions of people and billions of dollars.
The Texas Supreme Court is considering whether ERCOT, a private, nonprofit corporation, is entitled to sovereign immunity, a well-established legal principle that protects governments and their agencies from lawsuits. The high court’s decision, expected later this year, could determine whether electricity buyers and sellers can hold the grid manager responsible for pricing errors, mistake-ridden forecasts or life and death consequences of power outages.
Sovereign immunity?  What's that? Sovereign Immunity is a judicial doctrine that prevents the government or its political subdivisions, departments, and agencies from being sued without its consent. The doctrine stems from the ancient English principle that the monarch can do no wrong.

Ahh... here were are again at the question of RTO godliness.  Except RTOs are not governments or government entities.  They are industry cartels, run by a membership of for-profit utility corporations, sanctioned by a federal regulator.  So, who is responsible when an RTO makes a huge mistake that costs another party financial harm?  The consumers who "benefit" from the RTO actions are also responsible for its mistakes.  Is it that RTOs just provide so much benefit that they are allowed to make some mistakes that come off the "benefit" tally?

It seems that way, if you take in the big picture.  RTOs routinely make mistakes in their transmission planning.  Often, an RTO has ordered a new transmission project that is proven to not be needed.  Once an RTO orders a transmission project, consumers pay for it.  But what happens when a transmission project consumers have been paying for is found not to be needed after all?  Consumers still pay for it.  Even when it is not built, the utility "ordered" to build it is held harmless (because it was only doing what it was ordered to do), and is shielded from taking any financial responsibility for the project.  Abandoned transmission ideas are fully recovered from ratepayers, plus interest.  And we're not just talking about minor costs here, we're talking about billions of dollars paid for bad transmission ideas that were cancelled before putting a shovel to the ground.

But what if RTOs found themselves liable for their mistakes?  In the Texas case, it would mean that the company who built the unneeded power plants is made whole, and consumers in Texas would foot the bill for the failed power plants.  How is that any different that what happens every day as a result of failed transmission plans?  A transmission line is fully recoverable, but a generator is not?  Is that because a transmission line is "ordered" and a generator assumes its own risk based on RTO forecasts?  Why are transmission lines more necessary than generators?  They ought all be put in the same basket.

This is an interesting case to follow.  Will RTOs finally have to answer to someone?  Will consumers get tossed under the bus again?  And how do we fix the escalating problem of RTO mistakes?  No accountability increases mistakes.  If there is no penalty for a mistake, accuracy goes out the window.

And what about those for-profit utilities that constitute RTO memberships?  When are they going to be held responsible for their own errors?  In reality an RTO rarely comes up with a transmission idea of its own.  A transmission idea is brought to the RTO by the for-profit utility, and since the RTO is membership driven, the RTO is merely a rubber stamp for its members.  The RTO gives the for-profit utilities a mantle of immunity, a sense that it answers to no one, and failure becomes unimportant because someone else will pay for it.

This article perhaps suggests that RTOs should be government entities, not for-profit utility cartels.  Would that cure the error rate?  Doubtful.  It would just grant immunity to a bunch of inept governmental functionaries captured by for-profit utilities.

Perhaps the member utilities should be responsible for the costs of failed RTO planning?  Of course, as the article points out, they would simply pass these costs onto their customers.  However, the costs would become more visible to consumers and the for-profit utility would have to wear the failure in the court of public opinion.

If RTOs do not enjoy sovereign immunity, perhaps it's time to start holding them financially accountable for their mistakes.

0 Comments

Maine Citizens Bring Unwanted Transmission Line to a Vote

9/5/2019

0 Comments

 
This just in from Maine:
CMP Corridor Opponents Launch Citizens Initiative
Opponents of Central Maine Power's transmission corridor have filed an application with the Secretary of State to launch a statewide ballot initiative to stop the controversial project.
Tom Saviello , the citizen initiator of the effort, turned in bill language that would revoke the project's deeply unpopular permit approval from Maine's top energy regulator, the Public Utilities Commission. Revoking this permit, called a certificate of public convenience and necessity, would reflect the clear wishes of the majority of Mainers, who do not want the corridor to be built.
"CMP's corridor has drawn strong opposition from most Mainers," Saviello said. "Allowing Mainers to vote to block this project is only fair. We have to consider that nearly 25 towns have already voted to oppose the project, polling shows overwhelming opposition to the project, and CMP's awful scandals continue to get worse. Add to that the fact that Augusta has failed to listen to the clear voice of the people, and it's time for Mainers to take this matter into their own hands. We began the citizen's initiative process so this project will
get stopped in its tracks. Western Maine is too valuable to destroy."
Saviello is a former state representative and state senator from Franklin County, an area that would be heavily affected by CMP's corridor.
Sandi Howard, the director of Say NO to NECEC, will join Saviello in heading up the effort. Say NO to NECEC is a large grassroots organization that formed in opposition to the corridor.
"This corridor is bad for just about everyone," Howard said. "It's only good for a very select few. Augusta politicians and the state agencies who are supposed to protect Maine have failed, so we have to take this effort into our own hands. The citizen's initiative process is an enormous undertaking, but we have more than 20 thousand motivated Mainers who have signed up to help. They've called legislators, lobbied their elected officials, shown up at town meetings, and have even weighed in with Maine's energy and environmental regulators. The work they've done so far is already the broadest and most impressive exercise in direct democracy this state has seen in the modern era, and we know that Mainers are ready to get to work on this next step. We also know that CMP will use every legal trick, every lobbyist they can buy, and all of their influence in Augusta to push for their billion-dollar project, all while neglecting and overcharging their customers. This corridor is bad for Maine, and we don't trust CMP to build it."
The draft language will be considered by the Secretary of State's office in the coming days. Once the Secretary of State clears the language, corridor opponents will use their volunteer network to begin collecting petition signatures from Mainers. See draft language below.
An Act to Reject the New England Clean Energy Connect Transmission Project
Be it enacted by the People of the State of Maine as follows:
Sec. 1. Amend Order. Within 30 days of the effective date of this legislation and pursuant to its authority under the Maine Revised Statutes, Title 35-A, section 1321, the Public Utilities Commission shall amend the “Order Granting Certificate of Public Convenience and Necessity and Approving Stipulation” entered by the Public Utilities Commission on May 3, 2019 in Docket No. 2017‑00232 for the New England Clean Energy Connect (NECEC) transmission project. The amended order shall find that the construction and operation of the NECEC transmission project is not in the public interest that there is not a public need for the NECEC transmission project. There not being a public need, the amended order shall deny the request for a Certificate of Public Convenience and Necessity for the NECEC.
Maybe Governor Janet Mills shouldn't have vetoed the legislation passed earlier this year.  Now she's got a bigger problem on her hands.

Best of luck to the citizens of Maine in taking back their government from a foreign corporation!  This is what democracy looks like!
0 Comments

Grain Belt Express IS NOT a Public Utility

9/5/2019

0 Comments

 
Initial briefs have been filed in the joint appeal of the Missouri PSC's issuance of a permit to Grain Belt Express.

Eastern Missouri Landowners Alliance, Missouri Farm Bureau and landowner Christina Reichert filed an appeal stating that the PSC has no jurisdiction to issue a permit to GBE because is is not an "electrical corporation" under Missouri law.  If it's not an "electrical corporation," it's not a public utility entitled to use eminent domain to acquire easements. 

It's actually pretty simple and follows the successful arguments made at the Illinois Supreme Court that vacated a permit issued by the Illinois Commerce Commission to Rock Island Clean Line, and a permit for Grain Belt Express that was vacated by the Illinois Court of Appeals.  Clean Line (now Invenergy) doesn't own utility property in the state that qualifies it as a "public utility" under Illinois law.  GBE also doesn't own utility property in Missouri, as defined by Missouri law.  The PSC tried to pretend it did in order to issue the permit, concluding that a handful of easement options and a bank account with some cash was "utility property."  By that definition, anyone with a quarter in his pocket is an "electrical corporation" because he could use that quarter to buy some utility property in the future.  Cash can be used for many things, but you can't build a transmission line out of dollar bills.  The easement options also fail because GBE does not own, control or manage any land.  It has an option to purchase an easement at a later date, but it does not control the land at this time.  The landowner can still do whatever they want with their land before the option is exercised.

But that's not the only problem with GBE, although you may think it is if you read this article.  Try though it might to masquerade an an actual independent news source, Energy News Network (formerly Midwest Energy News) is funded and controlled by "Fresh Energy" which is in turn funded by numerous dark money "foundations" and renewable energy companies.
Since all these hypocritical environmentalists like to point the finger at grassroots opposition to invasive energy projects as being funded by "dark money" (which is absolutely NOT TRUE), the finger goes back at them and this time it IS true.  Try finding out who funds FreshEnergy donor "Energy Foundation".  Influence Watch calls it "...a left-of-center “pass through” charitable foundation founded by and supported by a network of left-wing organizations...".  But, "In reality, it is a medium for bundling vast sums of money from donors to far-left political causes, under the guise of philanthropy."  "News" source, indeed!  It's nothing but dark money propaganda.

Anyhow... back to our show...

Perhaps a bigger hurdle for GBE is the fact that its business model and rate scheme do not meet the definition of public utility in Missouri.  This point was argued quite well at the Illinois Supreme Court, however the justices found Rock Island was not a public utility because it did not own utility property, saving for another day a decision on whether its business model and rate structure prohibited it from meeting the legal definition of a public utility.  And if you think that decision would have been a squeaker, it wasn't.  Anyone watching the oral arguments could discern how the justices felt about it.  Therefore, this argument is alive and well.

In Missouri, a public utility is under the jurisdiction of the PSC.  Except GBE really isn't.  It's rate scheme is under the jurisdiction of the Federal Energy Regulatory Commission.  Under state law, a public utility must serve everyone indiscriminately, and must charge the same rates to similarly situated customers.  But GBE won't do that.  GBE will sell its service to only select customers who bid highest for its service, and it will negotiate a different rate for service with each customer.  Imagine if your electric company did this.  What if they refused to serve your home, but served your neighbors?  And what if they charged your neighbors a much lower rate than they charged you for the same service?  This isn't a public utility, it's a private enterprise.  As a private enterprise, it isn't entitled to eminent domain authority to take private property for its own use.

That's pretty much been the basis of the arguments of landowners since day one.  Clean Line, or GBE, can build whatever it wants, but it should never be given the power of eminent domain.

In addition, the Missouri Landowners Alliance has filed a separate appeal that hinges on legal errors made by the PSC during the course of its hearings.  MLA was prohibited from accessing "confidential" information that made up the basis for GBE's testimony.  If MLA did not have the information, it could not examine it nor question its validity.

Meanwhile, GBE is in a heap of trouble unrelated to its PSC permit.  It still does not have the Missouri county assents it must have before beginning construction.  Therefore, it's PSC permit is nothing more than a useless piece of paper.  What do you think the chances are of the county governments assenting to GBE crossing their roads at this stage of the game... after more than 7 years of lies and harassment from GBE?  In addition, GBE has not even applied for a permit in Illinois.  Doing so would be at least a 2-year endeavor, probably greater, and the chances of the Illinois Supreme Court vacating any permit issued are huge. 

So, what does Invenergy intend to do with GBE?  Not what it told the Missouri Public Service Commission at hearing, obviously.

It's time to retire this white elephant.  Merchant transmission does not pass the test of state public utility laws.

You can read the Joint Appeal Brief here.
And the Missouri Landowners Alliance Brief here.

0 Comments

Reform of Eminent Domain Law

9/4/2019

1 Comment

 
I was reading an article about eminent domain and pipelines in Texas the other day.  Landowners there have had enough and are pushing for eminent domain reform in their legislature.

This caught my eye:
TACTICS
Pack said that contractors for the pipeline companies simply show up at residences, with no advance notice.
“They drive up, they knock on your door,” Pack said. “They’re all contractors. You don’t ever meet anybody that works directly with the company. They’re all contractors who are paid to get things done, to get you to sign. They tell you what they want to do, they make you a lowball offer and they try to get you to sign that day. And if you don’t, then they tell you that they’ll sue you for eminent domain.”
Pack said there is a phrase describing such tactics.
“Their immediate threat is, if you don’t sign, we’ll sue you for eminent domain and take it anyway. And that’s why most people sign. They call it pickup hood signings. Most people sign on the pickup hoods because, you say lawsuit and it scares them to death.
“They brag about a 95 percent settlement rate. The pipeline industry will tell you that there’s nothing wrong with the system, that they settle 95 percent of the cases. That’s not indicative of a fair system, that’s indicative of a system that’s so one-sided and so unfair that people are either afraid or can’t afford to fight.”

Pickup hood signings.  Kitchen table signings.  Binding legal documents being signed at the landowner's home without legal counsel of any kind.  This just isn't right, and it needs to change.

Someone making a voluntary real estate transaction without a lawyer may be known as a fool.  How many people have ever bought or sold property without a lawyer?  Not many.  Ask any expert and they would advise against doing so.  Take a bad real estate transaction without counsel to court and the judge would probably laugh at your foolishness.

So why is this acceptable when for-profit utilities and other corporations with state-granted eminent domain authority want to acquire land rights?  Why do we let corporations get away with taking advantage of landowners this way?

The corporation is well-represented by a fat legal team who writes the easement contract in the company's best interests.  That's who's really calling at your door -- a high-dollar attorney whose job is to protect corporate interests and assist in creating profit.  Except that guy (or gal) isn't at your kitchen table... he sends some "aww shucks" down-to-earth land agent whose job is to convince you to sign on the dotted line.  Just a couple of good ol' boys doing a handshake deal and he can write you a check on the spot!  What a deal!

Except it's not.  And if you resist, they simply send others until they find an agent who fits your expectations better, or threaten to sue you (or maybe arrest you... it's happened).  If you want professional advice before signing, it's discouraged.  And, of course, it's on your own dime.  Why?

Real eminent domain reform would make the utility or corporation cover the cost of an independent attorney of your choosing to represent you.  All deals would happen at a lawyer's office, not on a pickup hood.  The kinds of lies land agents tell to landowners would dry up if it was two attorneys negotiating.  But that's too expensive, right?  No.  Having your attorney deal directly with the corporation's attorney cuts out the middle man, the land agent.  The amount of money utilities spend on land acquisition contractors is astounding.  But they're happy to do it because a land agent can tell you whatever lies facilitate your signature and then claim to have never said that if you repeat the story.

Having the corporation's attorneys prepare and present an agreement for landowner signature is also something that needs to go.  A legal agreement should be edited by attorneys for both parties.  Just because a corporation is offering one thing doesn't mean the landowner has to accept it.  Prepare your own agreement, or edit theirs to suit your best interests.

If corporations had to provide counsel and negotiate with landowners in the sunshine before filing condemnation, things would be fair to both parties.  Right now, they're terribly one-sided.

Why?  Because corporations also write eminent domain laws to suit their interests and profits and your legislators just roll over and cash the campaign contribution checks.

It's about time we reform eminent domain laws in every state! 
1 Comment

When The Wheels Of Progress Turn Backwards

9/4/2019

0 Comments

 
Baltimore Gas & Electric (BGE) wants to replace a transmission line buried underneath a river with an overhead line on five new towers in the water over a 2 mile crossing.

What?  This is insane!  The line was buried in the first place in the 1970's -- out of sight and out of mind -- and not obstructing river traffic.

BGE says building an overhead line causes less damage to the environment (well, unless visual pollution is your thing).  The new overhead line will run adjacent to the bridge, but be much taller than the bridge, necessitating huge marker balls on the line and flashing lights.  BGE also says having new towers on the water will have LESS impacts to waterway activities in the shipping channel.  Now, you're really pulling my leg, right?  Having no obstruction on the water is more impactful than having to navigate around 5 new towers in perpetuity?  But, wait, it doesn't stop there... an overhead line will be cheaper for ratepayers.  Ahhh, now we're getting somewhere, aren't we?  And, get this, an overhead line will provide more jobs... as if the purpose of building new transmission is simply to provide jobs.  I'm guessing BGE isn't going to be picking up day labor in the local WalMart parking lot, but will be hiring specialized contractors to build this monstrosity who will import their own employees to the job site for the duration of construction.

Are people supposed to believe this taradiddle?  I think I might have gotten dumber while watching BGE's 7-minute video about this backwards project.
It's all about "reliability" don't ya know?  Because having an aerial transmission line crossing a river and exposed to the elements and accident is so much more "reliable" than one buried under the river.

BGE says it bought off environmental groups by promising "oyster beds on tower foundations."  And it has promised to build a "wetland habitat" at an adjacent community so those folks don't object too much.  The cost of this boodle ends up in your electric bill, BGE isn't spending its own money on these things.  BGE merely adds it to the cost of the project and then earns a healthy return on it for years.  Seems like this project is "key" to BGE's profits.

In this day and age we ought to be burying new projects, not replacing buried projects with overhead ones.  What a dumb idea!
0 Comments

There's No Crying In Baseball, But There May Be Weeping At FERC

8/26/2019

2 Comments

 
Current and former transmission opposition groups from 14 states filed joint reply comments today on FERC's Transmission Incentives inquiry.  It is a joint response to the initial comments that were filed at FERC in June.  Those initial comments included calls to increase and expand transmission incentives (coming from the utilities who profit from them and the "big green" groups who want consumers to finance new transmission to enable a huge renewable energy buildout in the Midwest).  They also included an equal (or perhaps greater) number of comments to shrink or eliminate transmission incentives from states and customers who pay for incentives.

Transmission incentives came from the Energy Policy Act of 2005.  In a lobbyist-fueled kneejerk, Congress decided that we must act to make our electric grid stronger in the wake of the Northeast blackout in 2003.  Of course, that had nothing to do with a lack of new transmission and everything to do with FirstEnergy's bad business practices and failure to trim vegetation around its transmission lines.  But, nevertheless, FERC developed policy and began awarding financial incentives to transmission owners to encourage the building of new transmission.  Consumers got the bill.  And it's cost us billions over the past 15 years.  Transmission incentives are a solution in search of a problem that no longer exists and has encouraged transmission owners and planning organizations to build big, new transmission projects when rebuild and upgrade of existing transmission would solve the problem cheaper and faster.  But because FERC does not reward making use of existing assets, transmission owners always choose to pursue new transmission and the bigger financial returns it produces.  And the next thing you know, a community is fighting an unneeded transmission line.  We've had enough and are combining our resources to take action.

According to the statute that brought us transmission incentives, they are intended to encourage transmission owners to invest in transmission that benefits consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.  FERC created a "risks and challenges" evaluation process to provide higher returns and special rate treatments to risky transmission projects that may not be attempted but for their potential financial gain.  There was no assurance that these projects provide the necessary benefit.  Therefore, transmission owners were more likely to pursue "risky" transmission projects, regardless of consumer benefit.

Now some have asked FERC to toss out the risks and challenges test and replace it with a benefits test.  They also want FERC to expand the definition of "benefit" to include all sorts of things that cannot be quantified or measured to any satisfactory degree (like "cleaner air"). It's just an attempt to put a thumb on the scale when comparing benefits to costs.  In addition, evaluating a project's benefits does nothing to evaluate whether or not a particular transmission project actually needs consumer funded financial incentives to proceed.

Perhaps FERC needs to do both.  And it needs to ensure that benefits and costs are measured after the incentive is granted in order to make sure consumers actually receive all the "benefits" transmission owners are being paid to provide.

Consumer Organizations believe that FERC's evaluation of risks and challenges should become more rigorous, and limited in scope.  Utilities currently enjoy lifetime financial incentives for undertaking initial project risk that evaporates once the state approval process has concluded.  The incentive should end there as well.

Utilities want FERC to provide an incentive by capitalizing vegetation management.  In people speak:  Tree trimming around transmission lines is a routine maintenance expense for all utilities.  Routine maintenance expense is paid back to the utility dollar for dollar.  However, capital expenses are long-lived assets that provide benefit over a number of years.  They are paid back incrementally over their useful life as their value depreciates.  And because of the time involved in repayment, these expenses earn a return, or interest on their remaining value each year.  What it all boils down to is allowing utilities to earn interest on the money they spend on routine maintenance trimming trees.  Just another way to increase utility profits!  Maintenance should be paid for when it is done, especially something that doesn't last, like trimming trees. 

Dynamic line ratings were brought up.  What's that?  In a nutshell, a transmission line's capacity is limited by things such as weather.  Transmission lines get hot, and can overheat.  This is exacerbated by temperature, wind, and other factors.  Each transmission line has a rated limit that operators cannot exceed.  However, that limit is based on a worse case scenario -- a hot, windless, sunny day.  But for most of the time, the line can carry more power, however its limit is fixed by a worse case scenario.  A dynamic rating takes weather into account to be flexible, allowing operators to get more use of existing lines for the majority of the time.  It sounds like a good idea, right?  Except those who want to make it happen propose that it receive a "shared savings" incentive whereby the utility utilizing DLR is entitled to collect a fixed percentage of a pre-determined monetary benefit consumers should receive from the use of DLR.  In other words, the utility "shares" the savings that result from using DLR.  However, these same folks resist any "after the fact" tallying of actual benefits when making the utility's cut.  Therefore the only thing the utility has to do is overstate the consumer "benefits" of DLR to receive a higher percentage of the savings than it is entitled to.  If nobody is measuring the benefits after the fact, the utility could be taking the entire savings, and then some.  Who wants to "share" with a bunch of greedy corporations?

And then there's the folks who want incentives for long distance, interregional transmission "for renewables."  Our response includes:
We can’t ignore the elephant in the room – these kinds of projects are intended to facilitate the transfer of “clean” energy resources across multiple regions, and often provide no benefit to communities who are asked to bear invasive new infrastructure that only benefits others in far-distant cities. These kinds of projects are an attempt at top-down pressure to force load in one region to choose resources from another, favored, region. There is no empirical evidence that beneficiary communities would choose these resources if offered through new transmission. In fact, experience gained by the failure of the Clean Line Energy Partners merchant transmission projects suggests that even when these kinds of energy choices are offered to load, they are not selected. When left to their own devices, states may choose to use renewables from their own state or region, rather than import generation from another part of the country. Local resources provide more than “cheap” energy; they provide economic growth to the community and keep energy dollars working within the community, state, or region.
Interregional and resource unlocking transmission projects are some of the most hotly opposed transmission today. The larger a project’s geography, the more opponents it garners, and opposition to these kinds of projects has been wildly successful because of its mass and momentum. Rural landowners and businesses will continue to vociferously resist this unnecessary and sacrificial invasion, making these kinds of projects a non-starter.
Providing financial incentives to these projects cannot overcome opposition and the state politics that drive rejection. Until a way to transfer energy long distances that does not rely on overhead structures and eminent domain is developed for common use, these projects are best left to existing planning processes and the merchant transmission world. Incentive rates cannot solve this problem.
Consumer Organizations also take on the RTO adder incentive, which gives member utilities an additional .5% on their return.

What does this have to do with baseball?  Ahh... we're getting to that.  Some transmission owners have suggested that FERC order consumers to pay their costs to compete at RTOs to build new transmission.  In certain regions, some new transmission is competitive, where utilities submit project ideas to solve an identified issue.  The best project is selected.  This kind of competition happens all the time in the business world, right?  Except these companies want to be compensated for their cost to participate, develop ideas, submit them, and usher them through the process.  Essentially, everyone gets paid to compete for consumers, by consumers.
Paying everyone for their costs to compete completely upends the competitive process
and removes any consumer benefit from the competition itself. This isn’t Little League Baseball, where every player gets a trophy for participating; it’s big business with large financial rewards.
And we discuss the abandonment incentive, where utilities are guaranteed to be able to collect their prudent costs from consumers, even when a transmission project is cancelled (like our dearly departed PATH project, still gouging our wallets 8 years after being cancelled).  This equates to consumers paying hundreds of millions of dollars for absolutely nothing... bad transmission ideas that never got built.
The true magnitude of its burden on consumers for circumstances out of their control has been taken rather lightly. Consumer interests deserve serious consideration in a fair evaluation of the use of the abandonment incentive, instead of being a voiceless speed bump thoughtlessly tossed under the bus in an attempt to protect utility interests.
We suggest new transparency, where consumers can find out how much they pay for transmission incentives, and how much they benefit.

And then there's a whole bunch of garbage suggested by other parties that simply falls outside the scope of this inquiry.
Environmental and business interests call for the development of transmission incentives
to spur the construction of a “build it and they will come” proactive grid of the future. The
suggestion that we go “all in” on forced use of remote renewables may be a bad bet because it conflicts with the recent rise of distributed generation, local renewables, and non-transmission alternatives, and may not be the cheapest or most effective way to reduce carbon emissions.

It is no surprise that environmental groups, transmission developers and suppliers, and even corporations with their own voluntary renewable energy goals, are urging the Commission to use incentives to force the building of new consumer-financed transmission that meets their self-imposed goals, or ensures decades of new profit.

Commenter Advanced Energy Buyers Group thinks the Commission should award incentives to encourage new transmission to meet the voluntary goals of its member corporations. Corporations, no matter how big, should not be directing and demanding where
and when consumer-financed energy infrastructure is built. Consumers cannot bear the financial responsibility of this kind of corporate virtue signaling.

Commenter American Wind Energy Association’s support for building a new grid for renewable energy at consumer expense may be a poorly disguised attempt to reduce generator connection and transmission costs in order to make up for the financial loss of the expiring Federal Production Tax Credit. Once the credit is gone for good, remote industrial wind is going to need all the financial help it can get to compete on a cost basis with local renewables.  Reducing transmission congestion and costs by pro-actively building a consumer-financed grid for export is one way to accomplish that.
And then there's big green front group Americans for a Clean Energy Grid.  Names can be confusing, but this front group represents environmental groups and those who profit from building transmission.  And what they suggested...
It suggests wider cost allocation and an expanded definition of “benefit” so that the cost of new transmission can be increased while still scaling pre-defined cost/benefit ratios. ACEG wrongly suggests that such a plan will show state and local authorities the benefit of transmission and convince them to approve more projects. In addition, ACEG believes it can smooth siting by increasing project costs to provide “mitigation” payments to landowners and local communities who may oppose new transmission projects.

"If FERC were to reinforce its policy of permitting transmission project developers
to include in their project costs expenses that were incurred to mitigate the concerns of a local community inclined to oppose the construction of a nearby transmission line, a less contentious project approval could save more than their cost. This might include such expenses as providing a new railroad track
overpass, upgrading a school or community center, or repaving some of the community’s streets. The ability to make such social investments could help build the case for state and local acceptance of a project, and could allow that transmission line to be completed more quickly…"

ACEG has it wrong on all counts. The Commission does not have “a policy of permitting transmission project developers to include in their project costs expenses that were incurred to mitigate concerns of a local community...”. ACEG conflates several misconceptions of existing rate precedent that was recently settled by the Commission in Opinion No. 554. It’s almost as if ACEG failed to take notice of that decision at all. Payments to local communities intended to influence their opinion and decisions in a transmission permitting case are expenditures “…for the purpose of influencing the decisions of public officials…” that belong in Uniform System of Accounts (USoA) account 426.4. Account 426.4 is not included for recovery in transmission formula rates, and its recovery through stated rates requires individualized Commission review and approval.

Furthermore, the idea that landowners and communities can be influenced to support transmission proposals by what essentially amounts to bribe money is the contention of a
Pollyanna. Money is not the issue that foments opposition and we consider this contention insulting. Adding to the insult is the absurdity of paying financial rewards to a community and then collecting the cost of those rewards from the very same community through electric rates (in some instances with added return). In that instance, communities would be paying to bribe themselves.
Interested in reading more yet?  The whole document is available here.  (Roughly 20 pages, double spaced).

So, what happens next?  That's up to FERC, but we stand ready for further action!
2 Comments
<<Previous
Forward>>

    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.


    Need help opposing unneeded transmission?
    Email me


    Search This Site

    Got something to say?  Submit your own opinion for publication.

    RSS Feed

    Archives

    August 2025
    July 2025
    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories

    All
    $$$$$$
    2023 PJM Transmission
    Aep Vs Firstenergy
    Arkansas
    Best Practices
    Best Practices
    Big Winds Big Lie
    Can Of Worms
    Carolinas
    Citizen Action
    Colorado
    Corporate Propaganda
    Data Centers
    Democracy Failures
    DOE Failure
    Emf
    Eminent Domain
    Events
    Ferc Action
    FERC Incentives Part Deux
    Ferc Transmission Noi
    Firstenergy Failure
    Good Ideas
    Illinois
    Iowa
    Kansas
    Land Agents
    Legislative Action
    Marketing To Mayberry
    MARL
    Missouri
    Mtstorm Doubs Rebuild
    Mtstormdoubs Rebuild
    New Jersey
    New Mexico
    Newslinks
    NIETC
    Opinion
    Path Alternatives
    Path Failures
    Path Intimidation Attempts
    Pay To Play
    Potomac Edison Investigation
    Power Company Propaganda
    Psc Failure
    Rates
    Regulatory Capture
    Skelly Fail
    The Pjm Cartel
    Top Ten Clean Line Mistakes
    Transource
    Valley Link Transmission
    Washington
    West Virginia
    Wind Catcher
    Wisconsin

Copyright 2010 StopPATH WV, Inc.