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Ratepayer Robin Hood And His Merry Men Negotiate To Sell Maine to Spain

2/6/2019

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Can we be frank here?  Can we call a spade a spade?  Can we call a bribe a bribe?  No matter how it's packaged, a settlement with a transmission company is the act of selling out an entire community in exchange for a self-interested pay off.  It's a bribe!  And the worst part is that what is being sold belongs only to certain people or communities, while the payoff is going to other people and communities.  Perhaps it's fine to sell something you own, but it isn't legal to sell something you don't own.  So why do we let utilities, elected officials, and bloated "organizations" barter and trade and negotiate to sell the rest of us for their own financial windfall?

Let's turn to what's going on in Maine right now.  Central Maine Power wants to build a new transmission line across western Maine for the purpose of connecting Canadian hydro power to Massachusetts, where the legislature has created an expensive "green" mandate.  Because Massachusetts law requires utilities to create or purchase certain amounts of "clean" power, it's nothing but a feeding frenzy of for-profit companies trying to fill that need at an enormous profit.  Essentially, Massachusetts will pay whatever it costs to meet its stupid law.  Enter CMP, masquerading as a public utility for Maine consumers, but actually owned by Spanish utility giant Iberdrola as a tidy, profitable, regulated monopoly.

The transmission line proposed, the New England Clean Energy Connect (NECEC), has been hotly opposed by the people and communities in western Maine who could be forced to live with the project's detriments forever.  However, there's always a shark or two in the pool, and some formed their own little group last year and extorted a sum of money from CMP in order to pipe down and go away.  In exchange for cash, these greedy gum flappers agreed to allow the transmission line to wreck their community, economy, and environment.  The cash offer did not truly change the transmission proposal, it only changed the character of the opposition in order to neutralize it.  It was nothing more than hush money, or perhaps a flat out bribe.  Worse yet, not everyone affected by the project walked away with money in their pockets.  Only a select few who took it upon themselves to sell the interests of the many walked away with a profit.  The vast majority of the people affected by the transmission project got zip, squat, nada, zero.  They got sold downriver by people who pretended they represented the many, and leveraged that into a quick and personal pay day.

Except CMP must have bought out the wrong opponents... or maybe not enough opponents, because they're still on the hot seat and must believe that approval of their transmission proposal in Maine is in jeopardy.  CMP wouldn't come to the table with cash in hand if it thought there was a good chance of approval without it.

And that's just what the media is reporting... CMP and some of its opponents are back at the bargaining table.  What's for sale?  Maine.  Even though these opponents don't own Maine, they're selling it.

So, who's bellied up to the bar?

Rep. Scott Landry, who said,
“I’m excited to see what’s there,” said Rep. Scott Landry, D-Farmington. “I want to see what we can get for our community, though who knows if it’s going through or not with all the opposition out there.”
Wants to see what he can get.  He can probably get a destructive transmission line, that's what he can get, and maybe a handful of colorful beads.

The Boston-based Conservation Law Foundation, whose spokesman said,
“Clean Energy Connect has the potential to significantly reduce New England’s climate-damaging emissions,” Sean Mahoney, the executive vice president and director of CLF Maine, said. “But any approval of the project must depend on CMP providing greater economic benefits for Maine families and businesses, better safeguards for our environment, and a clear path to boost local clean energy here at home.”
Since when are environmental organizations the champions of Maine families and businesses?  That seems a bit presumptuous, don't you think?  Seems more like he's willing to toss Maine families and businesses under the bus in exchange for some "green" beads.

And then there's Tom Saviello, a selectman in Wilton, who wants to make sure Mainers have jobs.  This transmission line isn't a source of long-term jobs for anyone, it's just a source of cash for its masters in Spain.  And since when is anyone's right to a job more important than another's right to property, recreation, or a preserved environment?  Jobs are great, but they shouldn't come with major sacrifice on the part of thousands of others.

The Maine Office of the Public Advocate, who is supposed to represent electric ratepayers.  All of them.  The advocate declined to comment, but this was reported:
Public Advocate Barry Hobbins declined to comment Tuesday, but has publicly stated in the past that CMP should contribute $50 million to help low-income Mainers with electric bills, just like they're doing in Massachusetts.
How come only "low-income" Mainers would benefit?  Does Hobbins see himself as a Ratepayer Robin Hood, taking from the rich, and giving to the poor?  What do the rest of the ratepayers get?  Perhaps they'll get a rate increase of $50M or more from CMP, just so it can recoup its payoff.

Oh, hey, would you look at that?  Not 24 hours after confidential settlement talks begin, leaks erupt.  Maybe someone should toss out this settlement -- it's been compromised.  This article provides details of what CMP is offering.  Not just $50M for low-income ratepayers any longer, now it's also $140M for all ratepayers, over 40 years.

So, let's consider the reality of this... $140M divided by CMP's 600,000 ratepayers is $233.33 each.  But let's further divide that over 40 years, and we get $5.83 per customer per year.  And further divided between 12 monthly bills per year, we come up with a whopping  48.5 cents per month off your electric bill.  Is that kind of savings really going to make a difference in their lives?  There is no gigantic windfall for Mainers here, it's just a figurative "feather in his cap" for Ratepayer Robin Hood, who can pat himself on the back and sing his own praises in the media and the statehouse while the people he supposedly advocates for don't notice a bit of difference in their financial situation.  However, if they take a drive, perhaps they'll notice the transmission scar across western Maine.  It's going to be pretty hard to ignore.

And since we're dealing in reality here, CMP's rates will rise much more than $140M over the next 40 years.  In fact, they'll probably reach that pinnacle within 10 years, and then climb much higher.  Savings in later years will be completely obliterated.

Is it really such a good idea to sell part of the last surviving American wilderness for less than the price of a cup o' joe?
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And what about the rest of the folks who don't look at settlement like a kid in a candy store?
In a statement Saturday, Sandra Howard, a spokeswoman for the opposition group Say NO to NECEC, said there is “no amount of short-term money” that could make up for the impacts to Maine’s natural environment and tourism.

“Parties that wish to settle for their own profit interests should dig deep into their conscience before selling out Maine to benefit corporate profit interests,” she said.
Wise words.  It's not all about the money, folks!

It remains to be seen if CMP will offer enough to the greedy to get a few more parties onboard the Profit Express.  It won't be enough to buy all the opposition, and the most CMP could do is file a contested settlement and hope the PUC will take the coward's way out by approving a skewed settlement in order to escape responsibility for a horrendous decision. 

Utility regulatory settlements are nothing more than government sanctioned bribery.
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Corporations Don't Have Feelings, Especially AEP's Transource Shell

2/5/2019

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It's surrebuttal testimony time in the Pennsylvania PUC Transource proceeding, and the testimony filed by intervenors is direct, logical, and to the point.  It sort of looks like earlier Transource and PJM rebuttals were an exercise in obfuscation.  Apparently there's nothing PJM and its transmission owner pets like better than attempting to change the testimony of other parties by "misunderstanding" it, then restating it incorrectly in their rebuttals *wink, wink*.  Gosh, I wonder if anyone has discovered just how much the utilities direct what PJM says in rebuttal by asking for a privilege log?  It's almost like PJM is nothing but a shapeless puppet that only comes to life when utility counsel has its hand up its shirt (or inside another opportune orifice) and inside its head.

At any rate, intervenor surrebuttals were a joy to read (and soon to be a joy to write about as well).  I'm going to start with the Surrebuttal of Dolores Krick because it cuts through all the crap like a razor, and it makes me smile.

I think my favorite part might be where Dolores shares her opinion that corporations don't have feelings, in response to a Transource witnesses' claim about how Transource "feels."
Mr. Baker testifies that "Transource PA feels that transmission line corridors are a common element in the landscape and that the presence of these features does not diminish the scenic aspects of an area for visual enjoyment from public rights of way."
Transource Statement No. 4-R at 37.

HOW DO YOU RESPOND?

As an initial matter, I am not aware that a corporation can have feelings. However, to the extent that Mr. Baker is expressing his own personal feelings, he is wrong. The proposed project would wholly diminish the scenic aspects of southern York County. The outpouring of opposition from the local community shows how the construction of another transmission line corridor would adversely affect the landscape in a damaging and permanent way.
First a court makes the mistake of making corporations people, and the next thing ya know, they've got "feelings."  And who cares about Transource's opinions anyhow?  They can't see York County from their corporate headquarters in Columbus, Ohio, where the fat cats sit and count their money.  Spot on observation, Dolores!

She also makes a key point over and over.  While Transource claims it will "mitigate" the worst detriments of its project in various ways, it cannot mitigate them all.  It's kind of like asking if you'd rather be kicked in the face, or the shin, without acknowledging the kick in the first place.  This basic statement appears over and over again to rebut Transource's claims that a kick in the shin is much better than a kick to the face.
Regardless of what efforts Transource may have undertaken to minimize the impacts of
the project...  the fact remains that the project would have significant and adverse impacts on...
It makes perfect sense to me!

And then there's Transource's less than honest relationship with the landowners whose property it desires to occupy in perpetuity.
Q.  WHAT IS THE PRIMARY TOPIC OF MR. SCHAFFER'S REBUTTAL TESTIMONY?
Mr. Schaffer testifies about Transource's interactions with landowners, explaining that
the approach to these interactions is described in its Internal Practices for Dealing with the Public on Power Line Projects, which is Attachment 13 to the Siting Application. He claims that "Transource PA strives to be honest and act in good faith with landowners."
Transource Statement No. 6-R at 1-2. Mr. Schaffer further suggests that in most cases,
"the negative interaction is the result of a misunderstanding" and that it makes additional information available in these situations. Transource Statement No. 6-R at 2. He also explains what Transource does when it learns of a negative interaction between one of its representatives and a landowner and describes some of the key elements of its internal practices. Transource Statement No. 6 at 2-3.

Q.  PLEASE RESPOND.
While Transource may have an approach to interactions with landowners that is documented in a manual, landowners have been subjected to numerous instances of negative interactions, including situations of dishonesty and acting in bad faith. Attached as Citizens Exhibit No. 1 is a letter stating that many landowners had already granted Transource access to the property to conduct surveys. That was an untrue statement, as the opposite is actually true. In other instances, agents who were seeking permission and right-of-ways told landowners that many of their neighbors had already consented when in fact only one has signed to this day, of which I am aware. As Transource prepares to conduct drill tests on the land, the agents are telling landowners that they only have to give 24-48 hours' notice, when Section 309 of the Eminant Domain Code plainly states they are required to give 10 days' notice. 

Also, I note that Mr. Schaffer does not suggest
that any landowners received apologies as a result of a "misunderstanding." Nor does he
provide any data to quantify the number of negative interactions that have been reported,
offer any detail about the nature of the so-called misunderstandings or explain what additional information was subsequently provided to the landowner. It is also telling that Mr. Schaffer does not describe any disciplinary procedure that Transource has in place, much less discuss any actions that have been taken.
That's a real world response to some guy in another state waving around a piece of paper that means absolutely nothing on the ground.  And it astutely points out that Shaffer's talk about "misunderstandings" and his remedies to same are nothing but useless prattle.  Maybe the Transource landowners need to get his number, like the Wind Catcher landowners in Oklahoma did.  Better yet, how about the land agents he supervises get his number and put him on speaker phone while they're lying to landowners?  Dolores makes it painfully obvious that what Mr. Shaffer says does not translate into any sort of action where it matters (during interactions with landowners, not empty blather for public utility judges).

And then there's this guy, whose corporate fee-fees must have caused him to just blatantly insult the opposition.
HOW HAS MR. CAWLEY CHARACTERIZED THE THINKING OF OPPONENTS OF THE PROJECT?

Mr. Cawley has characterized the thinking of the project's opponents as "parochial," "self-interested," and "provincial." Transource Statement No. 9-R at 13-14.

HOW DO YOU RESPOND?
Landowners from York County have repeatedly testified that if the project was needed for reliability reasons and no other reasonable alternatives existed, they would not be in this proceeding - spending their personal retirement and college funds and committing vast amounts of their valuable personal time- to oppose construction of this high voltage
transmission line. But, it is not needed for reliability in Pennsylvania or in the region, and other reasonable alternatives do exist, in the form of currently underutilized lines running through the area. Frankly, given the way that the landowners of York County have united and organized their efforts to oppose the project shows the depth of their commitment to preserve the entire area's farmlands, businesses, environment, natural resources and viewshed - not only for their families but for future generations and for visitors to the region. Their attitudes are far from "parochial," "self-interested" and "provincial."
I guess I'd rather be parochial, self-interested and provincial than to be guided by Transource's pecuniary, self-indulgent, and greedy motivation.  Nobody's buying the magnanimous act, and name-calling belongs in kindergarten, Mr. Cawley.

Dolores proceeds to poke holes in just about every Transource witness with plain old common sense (horse sense, if you will).  I'm pretty sure Dolores knows more about horses than any veterinarian learned in a book, especially one who makes his living as an expert witness for corporations.

And that's it for this blog... more to come on this topic!
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Another Missive To Missouri Governor

2/5/2019

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Dear Governor Parson,

I own a small business in Missouri, pay Missouri taxes, donate to Missouri charities, and lived in Missouri for more than 30 years of my life. I am adamantly opposed to Clean Line Energy’s Grain Belt Express (GBE) transmission line project, which would usurp my family-owned small farming business for the private gain of an out-of-state company. I write to ask that you support Missouri’s farmers by opposing Clean Line’s application for a Certificate of Convenience and Necessity from the Missouri Public Service Commission (PSC).

For over 40 years, my family has farmed in Ralls County, Missouri. More than a quarter century ago, my family initiated a 200+ acre habitat restoration project on Parham Farms in coordination with the U.S. Natural Resources Conservation Service, an effort which my brother and I continue to manage today. We
set aside this portion of Parham Farms for environmental protection because of its unique qualities. It is a rare swath of Missouri savannah habitat that plays a special role to biodiversity of the surrounding area. It is a hub for wildlife and includes prime habitat for the Indiana Bat, which is listed as endangered by both the State of Missouri and the U.S. Government. Savannah habitat—where the Eastern woodlands and Western prairies meet—was once predominant across Missouri. As savannah habitat declines, so does biodiversity across the state. Today, according to state and federal agencies, less than 1% of savannah habitat remains in Missouri.

Today, Parham Farms falls directly in the path of Clean Line’s planned GBE project, and Clean Line wants to condemn and forcibly take this property for their own use. That remaining 1% of native savannah habitat – which my family has painstakingly restored over decades – now faces destruction if the PSC approves Clean Line’s petition to build the GBE. I urge you to question if this is the kind of legacy that the PSC’s decision should leave.

The proposed route for the GBE would cut straight across Parham Farms – slicing through our most productive cropland. It would also disrupt prime habitat for the Indiana Bat, which depends on land covered
in mature, old-growth trees—exactly the type of habitat that we currently protect on Parham Farms. If the PSC allows Clean Line to take away our old-growth forest, it will take away the endangered Indian Bat population with it.

The PSC’s approval of Clean Line’s project will also tell large companies that Missouri welcomes out-of-state companies to forcibly repurpose family-owned small businesses for their own use—a truly dangerous precedent.

Clean Line does not have the right to tell me how my business should use my property, and the PSC should not grant it such authority. I ask for your support in protecting Missouri residents, landowners, farmers, and natural resources by not supporting Clean Line’s application for Certificate of Convenience and
Necessity.

Respectfully,
Austin Read Parham
President, Parham Farms
Want to send your own letter to the Governor?  Missouri Rep. Jim Hansen is collecting them and promises to hand-deliver your letters to the Governor. 

Send yours here:

Rep. Hansen’s e-mailaddress:[email protected]
Mailing address: State Capitol, 201 W. Capitol Ave., Room 111, Jefferson City, MO 65101-6806
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Clean Line's Been History For Years

2/1/2019

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Oh, I see we're finally growing intellectually enough to admit our failure, Mr. Michael Skelly.  It's about time you admit it. 
YOU FAILED!
But I think you still have a bit of room to grow in taking responsibility for your own failure. 

Quit blaming policy, Donald Trump, and state government.  Clean Line has never been a good idea.  If it was a good idea, a real utility would have accomplished it.  Instead, the real utilities stood back and laughed at you.  And not only did you fail with just one project, you failed BIG with 5 projects.  I've often asked... who does that?  Who takes an unproven idea and makes 5 projects out of it?  One test project might have been prudent, just to see if the idea had any merit.  Instead, Clean Line acted like a hyperactive monkey, throwing poop on the wall to see if any would stick.  At the end of the day, Clean Line investors Ziff, Zilkha, National Grid, and Bluescape lost at bundle.  As revealed in recent proceedings in Missouri, Clean Line wasted $197M on its projects over the past 10 years.  One project would have cut down the budget considerably, perhaps leaving something for a better version of this grandiose idea in Round 2.  I guess it must have just been about living high on the hog with investor cash for a decade.  Well, the party's truly over now.

This party has actually been over for more than a year.  How's that for some great, fresh news?  The media has finally swooped in to pick over the desicated carcass.  And we get one last poor sports analogy for our scrapbooks.
"We didn’t win the World Cup of transmission, which is what we were trying to do, but we put together great projects and [three of them] are [now] in the hands of people who can hopefully do them," said Skelly.
The World Cup of transmission?  This guy must sit on the couch watching extreme sports channels way, way too much.  That's almost as good as the decathlon that wasn't.  And then there was that time Skelly won the silver medal.  I wonder what dear Doctor Freud would think about this fascination with sports, winning and trophies?  The inappropriate analogies have been plentiful over the years, but the one that made us laugh the hardest may have been the Venn diagram.

We've made a lot of new friends and shared a lot of laughs over the past decade.  But that hardly makes up for the cash, effort, and sleepless nights expended by thousands of landowners in eight states just trying to hold on to what is theirs.  We'll assume Clean Line's investors didn't put up more money than they could afford to lose, including "Clean Line Investment LLC," which was comprised of Clean Line executives who fronted the start-up capital for this horrendous idea.  No harm, no foul, we're wrapping up, says Skelly.  But when do the landowners he attacked get made whole?  They've won the World Cup of Transmission Opposition but there is no cash prize.  There's not even an apology from Skelly.  He doesn't even acknowledge them, instead blaming his failure on everything but their actions.
Skelly said: "Rock Island was killed by the Iowa legislature, which basically made above-ground HVDC illegal."
And why do you suppose the legislature did that, Michael Skelly?  It was the work of the Preservation of Rural Iowa Alliance, the Clean Line opposition group in that state.  Landowners kicked Skelly's butt all over the Midwest, and they're not backing down yet.

And somehow this article completely overlooks the biggest reason Skelly failed.  No customers.  Without being forced to purchase expensive renewable energy and new transmission, no utilities wanted anything to do with the Clean Line projects.  No matter how much the pundits want to imagine a future for big transmission for renewables, it will never be economic.  And it will never happen.

Sooooooo... since we're wrapping things up here, I've wrapped up something for Mr. Skelly to take with him as he leaves the world of transmission.  It's not a world cup of anything, it's just a little sandwich, but he's certainly earned it!  Enjoy!
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Stupid Things The Energy Industry Says

2/1/2019

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It's not every day we get to laugh out loud while reading energy news.  But the coyness of Hydro-Quebec deserves some kind of award for making me laugh so hard the other day.

In a long report by Bangor Daily News regarding Hydro Quebec's lack of participation in state transmission line proceedings that would significantly increase its revenue, the generator claims it isn't participating because it wasn't "invited" to the festivities.  As if anyone, ever, gets "invited" to participate in regulatory proceedings.  Energy companies routinely stick their greedy noses into all sorts of regulatory proceedings if it may affect their income, so I'm just not buying this:
Hydro-Quebec would gladly appear before the Maine Public Utilities Commission, but it has not been invited, said spokesperson Abergel.

“The PUC is doing its own process,” Abergel said. “If the PUC were to invite us, we’d gladly intervene. We’re very willing to collaborate in that sense.”

Apparently the Maine PUC isn't buying it either, and I wonder if this guy laughed as hard as I did over the inanity of H-Q's response:
But that’s not how the commission process works. Individuals and organizations can intervene in cases, but the commission does not invite them to the proceedings, commission spokesperson Lanphear said.
Maybe he's sent out for some official, engraved invitations?

At least there's comedy.  Laughing keeps you warm.
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Transmission Line Fail Has Deeper Meaning?

2/1/2019

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An American Transmission Company (ATC) transmission line failed in southwest Wisconsin the other day.  According to local electric provider Alliant Energy, "This transmission line broke in the extreme cold."
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And when it did, it fell onto Alliant's distribution line, according to WISC-TV.

The irony wasn't lost on the people of SW Wisconsin, who are presenting staunch opposition to an additional ATC transmission line proposed to plow through their communities.  The Cardinal Hickory Creek line is just another overhead hazard imposed on the community that provides no benefit to the community.  It flies over SW Wisconsin on its way elsewhere, for benefit of others, and on its way, it may affect the local electric service these communities depend upon.

There are no coincidences.  Perhaps the deeper meaning is here:
Almost as though the Universe is saying "Listen up - there is no need for unreliable large scale expansion transmission lines. Improve existing infrastructures, support microgrid and community based renewables. Community decisions that benefit all residents and local environments rather than corporations are preferable options."

Spread the sensible and safe message!

Food for winter ponderings...
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More Governor Letters in Missouri

2/1/2019

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Dear Governor Parson:
 
As a farmer and a Commodity Trader for one of the largest Grain Companies in Missouri and the world, I am writing today in opposition of Grain Belt Express as the proposed route will be crossing my family’s University of Missouri Extension Century Farm in Monroe County.  I am adamantly opposed to a private for-profit company applying to Missouri Public Service Commission for a Convenience and Necessity Certificate that if approved would give the authority of Eminent Domain.
 
On the coldest days of February 2015, our Missouri utility companies were selling excess power to PJM grid and making over million dollars a day.  That money was coming back to Missouri utility companies, workers and citizens as the cooperatives could pass along profits (patronage payments) to members. If merchant lines are allowed to cross our state, they will bring little benefit to Missouri in the way of power or full time jobs. We are basically as the saying goes “cutting off our nose to spite our face”. If these transmission lines were allowed, we would be taking money right out of our local utility companies and Missouri citizens’ hands and putting it in the pockets of few business owners in other states or countries.
 
This is big business and I doubt Grain Belt (Invenergy) will leave any extra money or savings on the table for the residents of Missouri. As mentioned, I’m a commodity trader for one of the largest Grain Companies in Missouri and in the world. Electricity is a commodity that is traded basically like any other commodity in the world. The first thing my company teaches every new commodity trader on the first day of the job is simple……“Always control the freight, then you always have the leverage”. Grain Belt Express (Invenergy) is trying to gain utility status in Missouri, even though they are not a producer or a seller of electricity. Grain Belt would only be the freight haulers. I see no benefit for Missouri or United States in this proposed project. As far as the “jobs created,” I see no long term employment.
 
This project is not the long term solution for our State. People will not be attracted to move or reside in a county with the highest voltage transmission line in the United States. I have asked myself many times if I would want to be part of a legacy that stood by and let the highest voltage transmission line in the history of the United States be erected and forced my neighbors, life-long friends and fellow Missourians to move from their homes and devalue their property so a private company can profit?
 
Please help to protect property rights, utility companies, and workers of Missouri by doing what is within your ability to stop the abuses of eminent domain for merchant transmission companies, and keep agriculture in Missouri for future generations.
 
Respectfully,
Jay O’Bannon
Want to send your own letter to the Governor?  Missouri Rep. Jim Hansen is collecting them and promises to hand-deliver your letters to the Governor. 

Send yours here:

Rep. Hansen’s e-mail address:[email protected]
Mailing address: State Capitol, 201 W. Capitol Ave., Room 111, Jefferson City, MO 65101-6806
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Missouri Transmission Work Tears Up Local Roads

1/30/2019

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Missouri is a bit unique in that local county commissions must assent to crossing of their roads by new transmission lines.
Improvements along public roads--location--control. 229.100. No person or persons, association, companies or corporations shall erect poles for the suspension of electric light, or power wires, or lay and maintain pipes, conductors, mains and conduits for any purpose whatever, through, on, under or across the public roads or highways of any county of this state, without first having obtained the assent of the county commission of such county therefor; and no poles shall be erected or such pipes, conductors, mains and conduits be laid or maintained, except under such reasonable rules and regulations as may be prescribed and promulgated by the county highway engineer, with the approval of the county commission.
And why should the county commission have authority over transmission work over local roads?  This.
Citizens raise concerns about Mark Twain Transmission Line construction

Project Manager Jim Jontry says that people in the area may see crews out clearing trees and installing access points.
He adds that a few residents in the area have raised concerns about the condition of the roads as heavy vehicles travel over them.

Jontry wants to assure citizens that roads will be restored.

"We are using roads in the area and making sure that those roads are kept in a condition that are passable. Working safely in the area is really our main priority and keeping the roads passable is a big part of that, so if there are any concerns, anyone can reach out to us and let us know, and we will address them as soon as we can."The anticipated in-service date for the Mark Twain Transmission Line is May of this year.
A county has authority over its roadways.  Transmission work could place poles or wires in an unsafe manner.  Or perhaps cause destruction of county roadways left for taxpayers to repair.  Or make roadways impassible. 

Apparently Ameren has done something to the roadways with its heavy vehicle traffic making them "passable."  Passable is a description maybe best left for third world countries.  The citizens who use those roadways every day may consider "passable" to be "impassible."  Who makes that determination?  And more importantly, how long is this going to go on, and what will the road look like once "restored?"  Will it be "passable," or will it be fully restored?  Who is responsible if future repairs aren't done properly, or quickly come apart?

There's a lesson here for county commissions who are asked to assent to future transmission line road crossings.
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Dear Governor Parson...

1/30/2019

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Here's another letter to Missouri Governor Parson.
Dear Governor Parson,

As I sit here entering the eighth year after Grain Belt Express started their drive to build a transmission line through Missouri, to the East to deliver wind power, I wonder how this can still be going on. There have been sixteen public hearings before the PSC that I am aware of, hearings at Jefferson City, hundreds of letters of opposition, and hundreds of testimonies which have been overwhelmely opposed to this transmission line. Also Missouri citizens have had to spend an enormous amount of time, resources, and money against this attempt to illegally use the power of eminent domain for a private company. Even if they did qualify for a permit, statue 229.100 of Missouri law would require consent from each county commission before they apply to the PSC.

GBE has been denied a permit twice before the PSC and their status as a non public utility has not changed. I would think that should have been the last time GBE could apply before the PSC. However, The Missouri Supreme Court requested by GBE and former Governor Nixon, who was in support of GBE
while in office, sent the denial back to the PSC. Is there a limit as to how many times this process can go on? If GBE is approved then they would have the power of eminent domain the same as a public utility to seize private property. The only thing that has changed is that GBE has signed a contract to sell this project to the company lnvenergy. It was stated in GBE's easement agreement that their rights may be sold, mortgaged, or leased in whole or in part at any time. What kind of Pandora's box will we be subject to then?

As I understand, Missouri has ample wind and other power to meet its needs and it is questionable that GBE or lnvenergy would drop off any power in Missouri. Without being a public utility they could sell to the highest bidder. Giving a private company the power of eminent domain would not only give an unfair advantage to our existing public utility companies, it would set a dangerous precedence for the future of our state and it citizens.

My family and I have been on this land for eighty five plus years. This proposed line would cross five farms and three and one quarter miles of our most productive farmland. I have testified and written letters in the past as to the irreparable and sustained economic loss, and ability to farm the land, such a line would have on me and all people in its path. I and my family are firmly opposed to granting GBE this power of eminent domain and it is my hope that as Governor that you can do whatever is in your authority to protect the citizens of Missouri against such abuses of power. Thank you for your time in listening to my concerns.

Respectfully,
Kent Dye
Paris, MO
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Maine Legislator Proposes Consumer Owned Utility

1/30/2019

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What if states took their power back from foreign-owned utilities and saved money in the process?  That's the basis for a new plan proposed this week by Maine Rep. Seth Berry, co-chairman of the Legislature’s Energy, Utilities and Technology Committee.  It's shocking, it's stunning, it's brilliant!
The plan would require Central Maine Power and Emera Maine to sell all transmission and distribution assets to the proposed Maine Power Delivery Authority. Bill supporters said the authority would use low-interest revenue bonds to make the multibillion-dollar purchase, allowing the new consumer-owned utility to provide electricity to most Maine residents at lower rates than those charged by the two investor-owned utilities.

The proposal is, in part, a response to the controversies that have dogged CMP since an October 2017 windstorm left some customers without power for more than a week, as well as massive bill spikes reported by thousands of customers.

“Maine people want and deserve a utility that will keep the costs down and the lights on and put its Maine customers and workers first,” said Berry, the co-chairman of the Legislature’s Energy, Utilities and Technology Committee. “Our current utilities have failed us in every respect, with the clear exception of our own consumer-owned utilities.”

Why, indeed, do we allow ourselves to become captive customers of investor-owned mega-utilities who run roughshod over our lawmakers and regulators in their own pecuniary interest?  Whoever thought giving investor-owned corporations monopoly power over a necessary service was a good idea?  It's a terrible idea!  When out-of-state (and even out-of-country) for-profit corporations own a monopoly we depend upon, we end up paying more than we need to to ensure corporate profit, huge compensation packages for over-stuffed executives, and buckets of dark money that funds continued dominance and profit.  All those things disappear when our utility is a not-for-profit.  There's nothing wrong with paying at cost rates for a monopoly service, it's all those other costs that run up our bills unnecessarily.  A not-for-profit collects just enough money to run the business. 

How would this proposal work?
...the state create[s] a nonprofit, consumer-owned transmission and distribution utility, and have it take over CMP and Emera’s assets and operations.

“A Maine power delivery utility that purchases at a fair price the assets of CMP and Emera Maine, and shakes their hands and says, respectfully, ‘goodbye,’” he says.

That could cost at least $4 billion, the value of the combined CMP and Emera assets according to 2017 filings with state regulators. Berry says it would be affordable though, because the state would float revenue bonds to finance the purchases — bonds that are not taxed by the federal government.
“This is not magic, it’s not sleight of hand. We are refinancing at different interest rates. That’s all it is, and that’s how we would reduce rates,” he says.

And Berry says that in addition to the debt-cost savings, ratepayers in the newly created Maine Power Delivery Authority would also benefit because their rates would no longer have to return profits to private investors — returns that routinely rise over 10 percent in Maine. That tax savings and the lack of a the need to generate profits for shareholders, he estimates, would cut electricity delivery rates by 15 percent while improving service reliability.
That's right, it's a refinancing of utility debt at a lower interest rate.  The interest rate of a utility with good credit and a captive ratepayer revenue stream is probably less than 5%.  That's the rate at which the utility could borrow the $4B to pay the investor-owned utilities for their stranded investment and take over ownership of the infrastructure.  Since electric consumers would be on the hook for that $4B whether it was to a consumer-owned utility or one owned by investors, the only difference is rate savings.  Investor-owned utilities earn a profitable "rate of return" from consumers on their investment in utility infrastructure in the neighborhood of 10%.  The difference between 10% interest and 5% interest on a balance of $4B is significant.  All that cash could turn into a rate benefit for consumers.

Under the plan, the new consumer-owned utility would take the transmission and distribution assets of CMP and Emera and pay "just compensation" for them.  The investor-owned utilities would be made whole for their costs, but it wouldn't be at 10% interest over 50 years.  They would be paid off for their current equity, dollar for dollar.  The true value of the assets, if sold on the open market, should not be a factor, as transmission and distribution assets are paid for by customers over long periods of time.  Once fully depreciated, or paid for, the assets belong to the consumers who paid for them.  The investor-owned utility should not be reimbursed for the value paid by consumers over the life of the assets, in addition to what is still owed... that would require consumers to pay twice for the same assets.

CMP objects to having its property confiscated this way.
CMP spokeswoman Catherine Hartnett said few details of Berry’s bill – which is still in the legislative drafting office – have been released but the company has “strong concerns about the state seizing private property.” Hartnett questioned how the proposed authority would match the professional experience and on-the-ground knowledge of CMP workers.

“Every time it has come up before (in the Legislature), it has been rejected first of all because of the questionable benefits, but also because of the constitutional issues,” Hartnett said.
CMP is concerned about the state seizing private property?  That's funny!  I'm betting CMP is a strong advocate of CMP seizing private property using the power of the state when it wants new utility rights-of-way.  Puh-leeze, CMP, you slay me!
And about that professional experience and on-the-ground knowledge of CMP workers?  The proposal would retain current employees, at least the ones who do the work to keep the utility functioning.  The fat cat executives aren't necessary at a consumer-owned utility.  And those fat cats pull in multiple millions in salaries and benefits every year.  Perhaps a consumer-owned utility could pass along the salary savings to consumers, or perhaps they could use that money to increase the pay and benefits for current employees.  Or perhaps a new consumer-owned utility could do a little of both.

This proposal is win, win, win!  Everybody benefits, except for a few fat cat executives and parent company balance sheets.  It's long overdue just desserts for an industry that has gone dangerously out of control.

Bravo, Maine!


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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.

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