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How Do You Go Slower Than Dead Stop?

3/26/2018

2 Comments

 
Your statements to the media about the dead Plains & Eastern project have me questioning your sanity, Clean Line.  There's no way to go slower than dead stop.  Your project is over (and I believe your company is over as a whole) and denying reality isn't going to bring it back.

Clean Line spokeswoman Sarah Bray isn't even a Clean Line employee any longer.  It looks like she's got her own consulting company now.  That's an inventive way to cut company overhead... get rid of people and then hire them back as "consultants" so you don't have to give them benefits and can just pay them for assorted projects now and then.  Such as telling the media stuff like this:
“The project is not dead, but is on a much slower track,” Clean Line Energy spokeswoman Sarah Bray said in an email.
You mean the side track to the dump?  That slower track?  Because this project just doesn't exist anymore.  Let's examine...

The Plains & Eastern Clean Line was supposed to be a 700+ mile transmission project for the purpose of connecting not-yet-built wind generators in western Oklahoma to the TVA system in Memphis, Tennessee.  Last year, Clean Line sold all its Oklahoma assets to NextEra.  That would include any regulatory permits, project engineering, and right of way option agreements with landowners.  So everything in Oklahoma is gone.  No longer under Clean Line's control and not for its use.  The generators Clean Line was going to connect to were all in Oklahoma.  There's nothing to transmit, unless Clean Line customers buy power from some other entity and take delivery in Arkansas.

What does Clean Line still own?  The Arkansas and Tennessee assets.  There is no regulatory approval in Arkansas.  The only thing Clean Line owns in that state is any project engineering and a handful of right of way option agreements with landowners.  In Tennessee, Clean Line owns a regulatory approval from the state based on its former project, including the Oklahoma assets.  It also owns a handful of right of way agreements with landowners and any project engineering. 

Clean Line also owns negotiated rate authority granted by the Federal Energy Regulatory Commission, again based on its former project that included the Oklahoma assets.

What can Clean Line do with the assets it owns? Pretty much nothing.  They're not worth anything.  Clean Line no longer has queue positions to connect a transmission line in Arkansas or Tennessee.  It owns a plan for a transmission line that no longer exists.  Is Clean Line going to build a transmission line that doesn't connect with any generators in Arkansas and then not connect it with any customers in Tennessee?  And customers are supposed to voluntarily step up and sign contracts for transmission capacity on this power line to nowhere?

Of course not!  Clean Line couldn't even attract any customers when it actually owned the entire project plan.  Now it doesn't even own a complete plan.  And without the U.S. DOE trying to assert its authority in Arkansas, Clean Line no longer has any regulatory assets in the state.  Could Clean Line apply for a permit to build a transmission across the state that doesn't connect with anything?  Sure, they can apply.  But they're not likely to get anywhere since Arkansas enacted Act 842 in 2015.
(b) The commission shall not issue a certificate of public convenience and necessity to any person or corporation that:
(1) Is not a public utility; (2) Primarily transmits electricity; and
(3) Has not been directed or designated to construct an electric transmission facility from a regional transmission organization.



Only someone not connected with reality would attempt to apply for a merchant transmission permit in Arkansas.  Maybe someone whose sanity might be slipping.

Perhaps telling the media that the project is not dead and merely on a "slower track" fooled a few reporters who don't know what's going on.  But even Utility Dive (often not the brightest bulb in the transmission reporting string) smells something disingenuous in Clean Line's claims.
Is Clean Line Energy still developing the Plains & Eastern Clean Line transmission project? The company says yes, despite the fact that selling the Oklahoma assets and ending its plan to build in Arkansas means the Tennessee portion of the line appears to be all that remains on the drawing board.

The Plains & Eastern Clean Line had been under development in Oklahoma for eight years when Clean Line sold it to NextEra. The company said the project has gone through an environmental review with "substantial stakeholder input" and received the regulatory approvals and major environmental permits necessary for construction, but it's unclear how it will move forward without the DOE support. 

That environmental review and "substantial stakeholder input" as well as the "major environmental permits necessary for construction" were all part and parcel of the DOE's participation in the project.  Those things went through the shredder on Friday.  They no longer exist.

Clean Line's choo-choo
Where are you Michael Skelly?  Why are you hiding from the media?  And where's Mario Harturdo, the Plains & Eastern huckster?  Looks like he's now "self-employed" as well.  The circus is over.  Get outta town.
2 Comments

Hey, ERCOT, There's a New Kid in Town

3/26/2018

2 Comments

 
Now I've officially seen everything.

A private "consulting" firm from California has concocted a "report" about its modeling of the ERCOT system.

Why?  Why do ERCOT stakeholders need a separate report funded by private interests?  Why isn't ERCOT's work sufficient for stakeholders?

ERCOT is an independent body whose whole business is modeling its own system.
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to 24 million Texas customers -- representing about 90 percent of the state’s electric load. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 46,500 miles of transmission lines and 570+ generation units. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for 7 million premises in competitive choice areas. ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. Its members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.
But yet someone contracted this "consultant" to model ERCOT's system and possibly come up with different results.
The company has been modeling energy systems “for more than 30 years and continuously sustains the most up-to-date information on every detail of the Texas grid including minor and major transmission upgrades as well as generation additions and retirement,” the company said upon announcing the report, which looks to new import and export capabilities that are on the way for ERCOT, including the integration of Lubbock Power & Light and the possible Southern Cross transmission project.
Oh, right, Southern Cross and Lubbock Power and Light.  Shall we continue the search for the parties financially responsible for this "report"?

The time when an independent system operator needs "reports" from market participants to override its own reports and planning is the time when there's no point in even having independent system operators.

It's a bit presumptuous for a consulting firm in California to purport that it can do better modeling of the ISO's system than the ISO, don't you think?  What's the intent here?  Is the Public Utility Commission of Texas supposed to toss out any information from ERCOT and instead use a "report" created by a private party?  That's absurd.

Chuck this "report" in the trash.
2 Comments

U.S. DOE Kicks Clean Line to the Curb

3/23/2018

4 Comments

 
And just like that, the U.S. Department of Energy is no longer "participating" in the Plains & Eastern Clean Line.  The DOE announced today:
As of March 23rd, 2018 DOE and Clean Line Energy Partners have mutually agreed to terminate their Participation Agreement as well as DOE’s participation in the Project. NextEra Energy Resources has acquired Plains and Eastern Clean Line Oklahoma LLC and all of the assets for the transmission project in Oklahoma. DOE remains committed to an ‘all of the above’ energy strategy, improving our Nation’s electricity infrastructure, and increasing the reliability and resiliency of the electrical grid.
A link to the actual termination agreement has been lost somewhere in the halls of DOE.  It is suspected that an energy industry lobbyist found it lying around and is holding it hostage.

UPDATE:  Look what finally turned up... it's the termination agreement.  And what a beautiful thing it is!  Of course, it's written in legalese but there are a couple of interesting things in here.

1.  Clean Line will continue to pay all DOE's expenses related to this whole debacle.  DOE has a bunch of money it's holding to cover expenses, called an Advance Funding Account.  This account has existed all along and is standard operating procedure for government participation in transmission company proposals.  Now it's time for the DOE to get all its expenses together and cash out.  Anything remaining in the account one year from now will be refunded directly to Clean Line's bank account as listed in the agreement.  Aren't we all instructed time and again not to make our bank information public or give it to someone who doesn't need it?  I guess these folks missed that instruction.

2.  "None of the Clean Line Parties, any of their affiliates nor any of their respective representatives may issue any press release or make any other public statement directly or indirectly relating to DOE’s participation in the Project, this Agreement, and DOE’s involvement in the transaction contemplated thereby without DOE’s prior written consent (other than information that is generally available to the public and background or summary information of a general nature)."  I guess this will prevent Clean Line from making crap up and telling the media how to think about DOE's participation in the project.  Because making crap up in order to feed Skelly's insatiable ego seems to be the knee jerk reaction here.  I guess DOE knows who they're dealing with by now.

And that's all folks -- the DOE "participation" in the Plains & Eastern Clean Line has ended.  No more threats of federal eminent domain.  Any future iterations of this or any other project must be approved by the states.  In Arkansas, the law prevents the Public Service Commission from ever approving and permitting a merchant transmission project such as Clean Line.  Plains and Eastern is officially dead and the DOE's use of Section 1222 of the Energy Policy Act is a gigantic failure, a colossal waste of time and money.


Meanwhile, it's time to celebrate!
4 Comments

Top Ten Clean Line Mistakes - #6 Clueless College Kids

3/22/2018

0 Comments

 
Pizza, puppy chow, and propaganda... it's a party!

Clean Line used clueless college kids to support its project at regulatory public hearings by offering them free things, including free talking points that they could simply read into the record.  Clean Line's marketing of its project to these people continually misrepresented the project and the issue at hand.  And not only did the opposition continually out them on these tactics, but the performance of these clueless kids pretty much missed the mark.  That's just the problem with coerced advocates... they seldom completely understand the issue and go prattling off about things that have nothing to do with the regulatory issue at hand.

"Clean energy..."  "Pass this legislation..."  "Tell the white house..."  "Purchase wind energy from Clean Line..." yada, yada, yada.  Once I sat through a public comment hearing where coerced advocates urged the approval of a transmission project that had already been built, instead of the one at issue in the hearing.  I also directed a truckload of union guys to the "union rally" they thought was taking place at the regulatory public hearing venue.  The transmission company gets those people to show up under false pretenses and hilarity ensues.  Nobody takes these people seriously.  It's a gigantic waste of everyone's time.

Clean Line's first attempt to flood the ICC public hearing on its Rock Island Clean Line only succeeded in spurring the ICC into having a second "forum" with new rules that allowed affected landowners their opportunity to speak.  Here's how Clean Line filled the ugly orange shirts it handed out, along with canned speeches.
The hearing will be Wednesday, September 18th, and buses will leave Roosevelt at 3:30pm for the 7pm hearing in Mendota, IL. Transportation, a free dinner, and a t-shirt will be provided!

We want as many supporters to make it to the hearing as possible, so let us know what it will take for you to get to the hearing. Funding for gas, or other transit and travel needs can be provided.

"Do you want to help pass legislation for renewable energy in the Midwest? Then come to the only public meeting for The Clean Line Energy Project which, if passed, will connect enough wind power from Iowa to Illinois to power over 1.4 million American homes!
If you are interested in going to the only public hearing for this project, next Wednesday leaving @ 4pm, please comment on this! I will happily drive us, and it will be a super fun trip in the name of clean energy!!"
College kids love free crap.  Unfortunately, they oftentimes cannot balance their academic needs with offers of free crap that take time away from their studies.  Clean Line set up a checkpoint in the parking lot next to their cluster of gas guzzling black SUVs where they handed out orange shirts, talking points, and SWAG.  The only thing I got was this picture.
Picture
Ironically, the wind kept trying to make off with their gigantic sail of a sign.  I didn't stick around to see how many perky Clean Line gals floated off to Oz with it.

The students arrived rather late, but isn't that how they always arrive?  And they proceeded to get into heated "discussions" with the landowners.  Good thing the police were around to keep things in check.

I guess Clean Line thought that was a success, because they tried to replicate it on their Grain Belt Express project in Missouri.  Except, once again, they got outed by the opposition.  Take a good look at their emails to college clubs promising pizza parties and other SWAG in exchange for signatures on petitions, form letters, and postcards.  Clean Line even fished for "sponsors" for a company-written response to a letter to the editor of their school newspaper.

And what happened?  I guess there were exams that week, or when the kids balanced their summer break against free pizza as a company shill, home won out.  This is what happened.  Where are the orange shirts and pizza-smeared faces?
Picture
They must have gotten educated.  That's what's supposed to happen at college.

So, colleges weren't exactly the fertile breeding ground of pizza-hungry dummies Clean Line expected in Missouri.

But it wasn't just clueless kids Clean Line preyed upon.  Clean Line also tried to pretend it was "the voice of consumers."
Support landowners in Arkansas and Oklahoma!  Support energy infrastructure!  Support the Plains & Eastern Clean Line!

We need your help!

America's energy infrastructure needs your help!  Lobbying efforts at the white house level have inhibited the passage of an energy infrastructure project beneficial to citizens and landowners in Arkansas and Oklahoma!

........

Support energy infrastructure, land owners, and the Plains and Eastern Clean Line project by simply clicking the link below to sign the petition!  Every click makes a difference!

It is absolutely imperative to demonstrate support as a citizen!  The future of America's energy infrastructure is in your hands!!

What?  Hey, wait, consumers didn't even get offered any pizza!  But I guess HBW Resources could buy lots of pizza for employees like Ryan Scott, who pretended to be a "consumer" and speak for other "consumers" at a regulatory public comment hearing in Illinois.  I'm surprised he didn't bring a pizza.

Unfortunately for Clean Line, this kind of shilling doesn't work when it's exposed that it was sponsored by the company attempting to get permitted.  In fact, it backfires when it encourages more opposition to the project, and those people show up to drown it out, and those people have better, on-point comments.  After all, the true state of public opinion about a project is the goal of a public comment hearing.  Clean Line made a mistake when it tried to stack the deck in its own favor by offering free things in exchange for supportive testimony.  It made them look pretty desperate... and dishonest.
0 Comments

Top Ten Clean Line Mistakes:  #7 Theresagate

3/18/2018

1 Comment

 
Mayberry didn't think Clean Line's attempts to cheat and take advantage of them at public hearings were as cute or funny as Clean Line did.

It's well known that utilities attempt to compete with affected citizens by presenting purchased or coerced supportive testimony during  regulatory public hearings.  But do they have to cheat to do it?  Not normally.

But Clean Line did.

At its first regulatory public comment hearing before the Illinois Commerce Commission regarding its Rock Island Clean Line, the company actively worked to shut out the testimony of affected citizens and replace it with its own coerced supporters.

The crowd was much bigger than Clean Line (or even the ICC) expected.  The auditorium simply wasn't big enough to seat everyone who showed up, nor was enough time allowed to hear everyone.  BlockRICL was prepared for a large crowd though.  They advised their folks to arrive early, sign up to speak right away, and find a seat in the auditorium.  The ICC's sign-up table was manned by a couple of BlockRICL volunteers, who took their task seriously, and the line to sign up was soon out the doors and winding around the outside of the venue.  And many of Clean Line's coerced supporters had yet to arrive!

Gosh, that's just too bad, Clean Line.  Maybe you should have planned better.  Maybe you should have realized that citizens would come a long way to have their couple minutes before the judge.  Maybe you should have delivered your supporters to the venue earlier, even if they were way too important to have to cool their heels for a couple hours before the hearing.  But you didn't.  Instead, Clean Line decided to cheat and take advantage of the situation in order to cut down on the number of citizens who were allowed to speak, and increase the number of Clean Line coerced supporters who were allowed to speak.

Clean Line recruited the few supporters who had arrived early to get back in the sign up line in order to sign up speakers who had not yet arrived, but Clean Line expected to arrive later.  And the volunteers, who were being closely supervised by Clean Line employees lest they give some unfair advantage to project opponents, were overwhelmed.  It is unknown how many people were signed up early in the speaking order who actually were not present until much, much later.

Now consider that speakers had to stand in line for a long time to get to the sign up table.  When you're standing in a long line, you glance around, maybe chat a bit with your neighbors in line.  You'd recognize those folks later, right?  What were you thinking, Clean Line?  That nobody would notice or care that the names called didn't match the faces in line?  That people wouldn't take note of what their line neighbors were saying?

When the woman behind me in line was called and spoke early in the hearing, we thought perhaps the judge had mixed up the sign in sheet and was calling late arrivals before early arrivals.  All of a sudden, the order we'd observed in the sign up line was out of whack and we could no longer judge when it might be our turn.  It all became clear when the woman whose name was called after me, "Theresa Hoover," didn't come to the microphone when called.  Of course she didn't... because "Theresa Hoover" had already spoken early in the line up, and I guess then she had a different name... her real name.  Nancy Somebody, from a local economic development office.  Clean Line should have just let it go when "Theresa" was called and didn't respond.  Except they tried to insert one of their VIP speakers in her place, a male vice president of a wire company flown in from Atlanta for the event.  Why did Clean Line think this guy was so important he needed to line jump over all the citizens who had stood in line for a long time to get a place in the speaker line up?

That's rude.  And unfair.  And when the judge was alerted, he was having none of it.  Mr. VIP was instructed to wait to be called in the order in which he'd signed up.  And he had signed up when he arrived, he just wanted to line jump over all the peons and go earlier so he could scoot out of there and get on with his life.  He didn't want to sit in a crowded auditorium with the locals and wait his turn.  So, Clean Line provided him with an earlier spot in the sign up line that it had obtained through signing up people who weren't there and who did not plan to speak.  But poetic justice saved the day.  When Mr. VIP finally got his rightful turn at the microphone, the judge announced it was 10 p.m. and the hearing was over.  He never got his turn to speak at all.  Now maybe if Clean Line hadn't wasted valuable time trying to unsuccessfully jockey him into position earlier in the hearing, he may have had a couple minutes to speak there at the end.  I love poetic justice!

In the grand scheme of things, none of this really mattered.  The ICC held an additional public hearing because so many citizens who had traveled a great distance were not allowed to speak.  And at the next hearing, there was no sign up line, and there were plenty of seats.  All that wasted effort and attempts to cheat the system merely demonstrated the dishonesty of Clean Line.  If the opponents ever needed reason to suspect the motives of Clean Line, Theresagate served as a demonstrative reminder.

The utility has unfair advantage over citizens throughout the administrative hearing process.  It's bad enough that the utility tries to horn into the public hearing process, but apparently non-utilities like Clean Line also try to cheat and line jump.  And that didn't go unnoticed by the public, or even the hearing officer.  Yes, Clean Line demonstrated its true colors to everyone that it intended to win by unfair means.

Silly Clean Line, cheaters never win!
1 Comment

Illinois Court Snatches Away Permit for Grain Belt Express

3/15/2018

1 Comment

 
It's dead folks.  Dead, dead, deader than dead.

This isn't a "casting of doubt" or a "speed bump."  This is the end of Grain Belt Express.

On Tuesday, the 5th District Appellate Court of Illinois "reversed where the Commission lacked the authority to grant a nonpublic utility company a certificate of public convenience and necessity under the expedited review process set forth in the Illinois Public Utilities Act."

If that's not clear as a bell, there's also this:
The order of the Commission is hereby reversed and remanded where it granted a
nonpublic utility company the authority to construct and manage an electrical transmission line project under the Act's expedited review process without the requisite
finding that the applicant was a public utility.
That's right, Grain Belt Express no longer has a permit to construct in Illinois.  Grain Belt Express has no approvals in Illinois.  It's back to square one.

And appeals will be fruitless, because the court cited last year's opinion from the Illinois Supreme Court that determined the exact same thing.  Clean Line is not a public utility and therefore the Illinois Commerce Commission cannot grant it a certificate of public convenience and necessity.  Done deal.

Does Clean Line have legal options?  Sure.  But those options will be very, very expensive and very, very time consuming.  Only an idiot would commit to spending millions and trying to fight this battle for several more years, when its also engaged in a similar battle in Missouri.  At what point will Clean Line run out of money?  And will its investors give it more cash to waste pretending there's still a chance for these projects?  My opinion is no.  No, this is the last hurdle GBE just can't jump.

This turn of events is completely unsurprising.  I've been remarking for months that Illinois was about to snatch away GBE's permit.  There was absolutely no chance that the court would decide otherwise after the Illinois Supreme Court decision.  The die was cast.  It's another case of permit whack-a-mole.

So, what did the 5th District opinion say?
Pursuant to section 8-406.1, the section utilized by GBX in the instant case, "[a]
public utility may apply for a certificate of public convenience and necessity pursuant to
this Section for the construction of any new high voltage electric service line and related
facilities (Project)."

Section 3-105 of the Act defines a "public utility" as follows:
"[E]very corporation, company, limited liability company, association, joint stock company or association, firm, partnership or individual, their lessees, trustees, or receivers appointed by any court whatsoever that owns, controls, operates or manages, within this State, directly or indirectly, for public use, any plant,
equipment or property used or to be used for or in connection with, or owns or controls any franchise, license, permit or right to engage in ***

We note, however, that the definition of "public utility" was recently clarified by the Illinois Supreme Court in Illinois Landowners Alliance, NFP v. Illinois Commerce Comm'n, 2017 IL 121302. In Illinois Landowners Alliance, NFP, our supreme court determined that when the Commission grants a company a certificate of public convenience and necessity under section 8-406 of the Act, the "central question remains: Does it even qualify as a public utility under Illinois law so as to be eligible for such a certificate under section 8-406 of the Public Utilities Act?"

Our supreme court determined that Rock Island, a new entrant, was required to present ownership of utility infrastructure assets to qualify as a public utility, as defined in section 3-105, in order to obtain a certificate of public convenience and necessity under section 8-406 of the Act. Id. ¶ 48. In order to qualify as a public utility, our supreme court concluded that "the company must also own, control, operate , or manage, within this State, directly or indirectly, a plant, equipment, or property used or to be used for or in connection with (or must own or control any franchise, license, permit, or right to engage in) the production, transmission, sale, etc. of one of the specified commodities or services." Id. ¶ 39. The supreme court noted that the statute is phrased in the present tense because it requires that a company must own, control, operate, or manage, within the state, a plant, equipment, property, franchise, etc. at the time it seeks certification by the Commission.

The supreme court reasoned that when the General Assembly repealed the prior language in section 3-105 of the Act, which defined a public utility as "every corporation *** that now or hereafter *** may own, control, operate or manage" specific plants, equipment, or property (Ill. Rev. Stat. 1965, ch. 1112/3, ¶ 10.3), it intended, as the court
must presume, to speak only to ownership in the present tense when it eliminated the words "that now or hereafter *** may." Id. ¶ 42. As a result, the court determined that courts must read the statute as "evincing an intention by the legislature to limit the definition of 'public utility' to situations where the subject entity meets the ownership test
at the present time."

Here, GBX similarly fails to establish that it was a public utility at the time it filed its application with the Commission. It is undisputed that GBX does not presently, or at
the time it filed its disputed application with the Commission, own, control, manage, or operate any plant, equipment, or property in Illinois used or to be used for or in connection with the production, transmission, sale, etc. of one of the specified commodities or services. Accordingly, GBX did not meet the definition of a "public utility" under section 3-105 of the Act at the time it filed its application with the
Commission.

...we are not persuaded that the legislature intended for the expedited review process to be an available avenue for nonpublic utility entities. The Commission's conclusion that any nonpublic utility may apply to be a public utility under section 8-406.1 ignores the express language set out in section 8-406.1(a). Significantly, section 8-406.1 of the Act clearly and unambiguously reads that "[a] public utility may apply for a certificate of public convenience and necessity pursuant to this Section ***."  As such, our interpretation of section 8-406.1 requires that the applicant must meet the definition of a public utility. In order to obtain status as a public utility, the applicant must meet the ownership test at the time of application, the same prerequisite in section 8-406, and the Commission must make this finding before issuance of a certificate. Here, GBX holds an option to purchase property that would serve as the site to place equipment for the proposed project. "[H]aving an option to buy something is not the same as owning or even controlling it," and an option agreement "does not involve the transfer or [sic] property or an interest therein." Illinois Landowners Alliance, NFP
The court says that Section 8.406.1, the "expedited process" under which GBE applied for its permit is specifically reserved for existing public utilities.  GBE is not a public utility because it doesn't own or control any utility property in Illinois.  It uses the Supreme Court's opinion in Illinois Landowners (RICL decision) as the basis for its finding.  The only place for Clean Line to appeal this is at the Illinois Supreme Court.  That's a dead end.  The Supreme Court is unlikely to reconsider the same argument and come to a different conclusion.

But don't despair, Clean Line, there's still a "way forward" for GBE... you don't need a permit from Illinois to build your project at all!  The only thing is, without a permit and a public utility designation from the ICC, you won't have eminent domain authority.  I mean, you have always said you weren't seeking eminent domain for your projects, right, Clean Line?  Go ahead, try to obtain needed rights of way across Illinois without the coercion of eminent domain.  Landowners love you, right?  That's what the court has instructed you to do:
The supreme court noted, however, that the Act does not prohibit new entrants from commencing development as a purely private project before applying to become a public utility in Illinois:
"Once their projects are further underway and they have obtained the ownership, management, or control of utility-related property or equipment required to qualify as public utilities, they may then seek certification to operate as public utilities if they wish to conduct their business in a way that would make them subject to the Public Utilities Act's regulatory framework."

As a result, the Commission must find that an entity is a public utility at the time of application in order to utilize the expedited review process in section 8-406.1 of the Act.
Unable to meet the requisite ownership test, GBX is not a public utility under section 3-105 of the Act, but rather an entity with a purely private project that does not require the
Commission's authority to proceed.
The media says, "Clean Line officials couldn't be reached yesterday."

Maybe Michael Skelly simply couldn't reach the telephone?

1 Comment

Top Ten Clean Line Mistakes - #8 Hypocrisy and Ego

3/13/2018

3 Comments

 
The party doesn't start without Michael Skelly Not in his own home, anyway.
On Tuesday evening, Skelly and his wife, Anne Whitlock, hosted an intimate bash for the Houston Parks Board inside their loftlike EaDo residence, Firehouse No. 2. The founder and president of Clean Line Energy Partners arrived fresh off a flight from Washington, D.C., making quite the midreception splash.

I think I just threw up in my mouth a little.

Michael Skelly's wind energy party also doesn't start without thousands of landowners across the Midwest, and they haven't been impressed.  In fact, Michael Skelly's ego, false bravado, and ability to create personal puff pieces in the media are one of the root causes of Clean Line's failure.

Transmission opponents realize the transmission guys and gals they intersect with are just doing their jobs, for the most part, and their dislike is related to the lies these employees are paid to tell.  Maybe some of these transmission folks would be likeable in the real world, but we're unlikely to ever know them in that way... because their personal lives aren't splashed across major newspapers in an egotistical fashion.

And then there was Michael Skelly.

Michael Skelly happened to be in the right place at the right time when wind was a new thing.  He made a fortune flipping a small wind company to Goldman Sachs.  But was it so much his genius and business acumen that caused it, or was it serendipity?  There are plenty of businessmen who create a string of business successes through intelligence, strategy, and opportunity.  I think one of them has Michael Skelly on a leash right now.  But it appears that Skelly's success was a one-off that has been squandered in its aftermath by pure self indulgence and a gigantic ego.  I can't find anything else at which Skelly succeeded (because jungle trams in third world countries really don't impress me).

He ran for Congress... and lost.

Then he had an idea to start a transmission company that wanted to build more than 2,000 miles of new transmission across the Midwest.  That hasn't worked out so swell, either.

Landowners threatened with eminent domain to make way for Skelly's projects have been treated to a string of revolting newspaper articles about Skelly's charmed life in Houston, all while he was intent on systematically destroying their own simple way of life, and their farm businesses.  Ya know, there is internet service in Mayberry now, and "a bunch of farmers" know how to use it.

First there was the big to do about Michael Skelly selling his rich man's home in one of Houston's best neighborhoods (on Robin Hood Street no less, the irony of that was not lost on anyone, because farmers also read the classics) and buying a run down firehouse in a not so nice neighborhood.  Opponents had a bit of fun taking a virtual look at Skelly's Robin Hood home, complete with zebra pelt on the floor of the study and a farmhouse sink (lifted from a real farmhouse to imitate trendy shabby chic fakery in a home that's only claim to "farm" is most likely in the pantry on a bag of Pepperidge Farm Goldfish?).  Thanks for that.  It helped the landowners see how the other half lived... if that's what you want to call occupying that movie set dwelling.  So, here's this guy who lives in a fancy house in the city who wants hardworking regular folks to sacrifice their business, their finances, their sense of place, to make way for a transmission line that won't benefit them in the least.  And he lives like a king.  No transmission line in Michael Skelly's backyard.  Not In Michael's Back Yard.

So then this guy pretends he's slumming at a dilapidated fire house.  Except that remodel is probably really, really expensive, and then he buys up other dilapidated homes in the area and has them moved to his "compound."  A compound?  This guy has created his own little fiefdom with a "compound?"  Yeah, lifestyles of the rich and famous.  And then he hosts a bunch of snob parties at his firehouse that are reported in the city paper.  When there's a party down on the farm, nobody thinks to invite the media.  Probably because no one wants to pose for glittering glamour shots, cocktail in hand.  "Look at me, world, I'm so important!  Even the cocktails I drink are worthy of being news!" 

And Michael Skelly is quite intent on remaking Houston into the town of his dreams.

Walkability.  Do you know how far a farmer walks each day to produce the food you serve at your glittering parties?  The safari costume was a nice touch, Michael Skelly. 

Bike trails.  Bike repair stations.  Because when you don't have any wide open spaces to recreate on your mechanical devices, things get a little cramped, right?

Trees.

Parks.

City growth.  Urban development.  Is this about not having enough parking again?

Hurricane heroics.  This was probably the pinnacle, the straw that broke the camel's back, for many landowners struggling against nature and recovering, year after year.  And their did it on the land, with blood, sweat and tears, not with their feet up on a table.

And the vanity pieces on energy.  Where Michael Skelly tells reporters that he builds transmission lines.  And gives them tours of his deserted office.

This is what the landowners Michael Skelly wanted to "partner" with to host his transmission lines saw.  Day after day.  Year after year.  While Skelly performed his heroics for the press, the landowners lived under a threatening cloud that Clean Line would condemn their modest homes, their parks, their community development, their history, their genuine farmhouse sinks, their trees, their livelihood, their way of life, to make way for a transmission line that would only make Michael Skelly richer and feed his insatiable ego.

It wasn't a good plan.  Someone attempting what Michael Skelly was attempting should have lived his rich man's life a little quieter.  It's impossible to like the public persona Michael Skelly has created.  It's impossible for regular, hard-working folks to develop any rapport with someone whose glittering lifestyle is so alien from their own, especially when it's constantly thrown in their face -- Michael Skelly matters, and you do not.  No matter what this guy was trying to sell to Mayberry, he was destined to failure.

Perhaps he should try again for a career in politics... in Houston, where the poor and downtrodden are suitably impressed with his philanthropy and ego.  Mayberry was not.
3 Comments

Top Ten Clean Line Mistakes - #9 Buying Influence

3/9/2018

1 Comment

 
Utility "playbooks" call for buying influence and controlling public opinion about a transmission proposal.  They do this through lobbying and front groups to create an appearance of public support for their proposal.

And then there was Clean Line.  No matter how much money they threw at this problem, it continued to grow out of their control.

Did Clean Line not buy the right people?  Or was their buying just directed at the wrong people?  When a real utility does it, they're playing on established relationships and an intimate knowledge of the movers and shakers in the regulatory world.  As a new entrant into the utility business, Clean Line had no idea what it was doing and it had no relationships with state leadership.  It simply found the most obvious and eager people and opened the money faucets, hoping the money by itself would cure all ills.  Not by a long shot.

The most successful Clean Line ever was with the schmoozing was at the U.S. Department of Energy, who agreed to "participate" in its Plains & Eastern Clean Line project after many years and many millions of dollars invested.  That Clean Line had to buy that agreement by offering 2% of its quarterly profits to the U.S. government speaks volumes.  And still, participation by the DOE got them nowhere.  The Plains & Eastern Clean Line still failed.

In the states, Clean Line spent its money on fast talking political operatives who couldn't quite get the job done.  The few permits Clean Line was able to schmooze were subsequently ripped away by the judicial system, where Clean Line's claws couldn't quite reach.

You know what the problem is with fast talking political operatives?  You can't trust them.  They're so busy pumping out the manure you never can be too sure if they're telling the truth, or some other version of the truth that will keep the money flowing.  Some of the people Clean Line bought to schmooze it up with states and local communities were the wrong people.  They didn't have the right connections, and more importantly they didn't have the respect of the people they were trying to schmooze.  The guys who are for sale to out-of-state companies, who will gladly throw their community under the bus for a few bucks, aren't very effective.  Do you think the community doesn't know this guy is for sale to the highest bidder?  Of course they do!  They know what goes on in their own community, and guys who are always trying to enrich themselves by selling out their community are not respected or listened to.  You know who is respected and listened to?  Members of the community.  The ones who have done good things for their community over the years without looking for some sort of reward.

Mayberry had this over Clean Line throughout the process.  The minute landowners and community leaders found out about the Clean Line projects, any favorable opinion gained early on was flipped.  And ultimately, it was forthright and determined opposition that killed the Clean Line projects.

Clean Line's few pathetic attempts at front groups provided only comic relief.

Remember Windward Iowa?  That was entertaining for a few days.  I wonder how much that flop cost?

And then there was the Consumer Energy Alliance's EDJ initiative in Arkansas.  That didn't last very long either.

Every time Clean Line tried to start a front group supporting one of its projects, the opposition quickly outed it for what it was.  You've got to get up pretty early in the morning to fool a farmer!

To add emphasis to the point that these groups were fronts, the groups have completely disappeared.  Once they were outed, the money stopped flowing and the "passion" for the cause evaporated as quickly as it started.  Boom!  Now you see it, now you don't.

But, but, but, Clean Line followed the utility "playbook" and bought local influence.  Why didn't it work? 

Because Clean Line is not a utility.  Simply pretending wasn't enough.
1 Comment

NJ Judge Denies FirstEnergy Transmission Plan

3/9/2018

3 Comments

 
Congratulations, RAGE!  You did it!

Residents Against Giant Electric (RAGE) formed several years ago to fight FirstEnergy affiliate Jersey Central Power & Light's insane plan to construct a 10-mile, 230kV transmission line in a narrow commuter railroad right of way abutting dense residential development in Monmouth County.  As the judge recognized in her decision handed down yesterday, "RAGE took up the predominant oar in mounting the opposition to the MCRP, understandably, in light of the fact that the Project is in the back yards of its members."  This victory is yours, RAGErs!  The citizens group was incredibly well-organized and managed and its members worked incredibly hard toward denial.  The effort put forth was nothing less than stellar, but effort alone cannot always guarantee victory.  RAGE also worked an incredible strategic game and left no stone unturned, no task undone, and no decision left to chance.  They worked this case in an aggressive, take no prisoners fashion.  They assured their own victory.  Bravo, RAGE, well done!

JCP&L's response to having their ass handed to them whined:
"We strongly disagree that JCP&L failed to prove the need for the Monmouth County Reliability Project," the utility said. "The initial decision contradicts the findings made by the regional grid operator and industry experts."
Clearly, the judge did not feel that the regional grid operator and "industry experts" were credible.  Is that going to be JCP&L's thing on exceptions to the BPU?  That the judge who spent hours and hours evaluating testimony and exhibits failed to recognize the superiority of utility arguments?  That the BPU should disregard her "in the trenches" view of the case and substitute their own judgment of whether or not JCP&L met their burden?  That is truly unlikely.  Judge Cookson was very thorough, carefully evaluated the evidence, and made a reasoned decision.  JCP&L couldn't even point to an error she made, it simply whined that it didn't win.

PJM was not credible.  RAGE presented evidence that JCP&L had begun working on this project, and its preferred route, months before PJM even found a "problem" for it to fix.
I FIND that the preponderance of credible evidence proves that JCP&L commenced studies to justify the MCRP as its preferred route months before any “problem” was even identified as needing a solution.
PJM and its utility members suffer from a serious case of chicken/egg.  This isn't the first time a utility came up with a solution for a problem that PJM had not identified and then used PJM's planning process as a "vehicle" to advance a utility plan by finding a "problem" for it to fix.

Judge Cookson also recognized that failure to kowtow to PJM as an omnipotent grid planning oracle who must be obeyed isn't really a big deal at all.
During the hearings, PJM concurred that JCP&L will not suffer any financial penalties if the Board rejects the MCRP. Both PJM and JCP&L agree that if the MCRP is not approved, they will return to the planning stage and find another way to solve the P7 contingency.
Bravo!  This is the first time a state has recognized that denial of a PJM transmission proposal won't make the lights go out.  Such a simple thing, buried under mounds of rhetoric and projections of doom and gloom.
New Jersey can be a shining example in recognizing that states have the ultimate say in whether or not a RTO planned transmission project is constructed.  Instead of cowering and simply accepting regional grid plans as beyond question, states can say "no."  A regional grid authority was never intended to be the final arbiter of transmission plans.  If it were, there would be no purpose to state transmission permitting authority.  States need to stop acting like a rubber stamp and assert their authority under the law.

The judge also questioned the veracity of every RTO and utility's favorite word, "robust."  Personally, I hate that word.  It means nothing.
There were four alternative 230 kV lines into Red Bank on the narrowed list but apparently no technical studies were undertaken of them because they were considered by JCP&L to lack the appropriate level of “robustness.” Palermo could not find any definition for that term and was unfamiliar with its use generally in the transmission industry.
Let that term go back to the world of salad dressings.
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Now let's talk about those "industry experts" JCP&L wants us to believe.  Because I knew the outcome of this Order before I read it, I didn't have to skip to the ordering paragraphs first.  I was able to start at the beginning and read through the synopsis of the evidence before getting to the judge's conclusions.  There was some pretty ominous foreshadowing in the way the judge presented her statement of the evidence.  And once I got to the findings, there were no surprises.  As far as JCP&L's "expert," who found no effect on property values, the judge opined:
Applying these standards, I FIND that Dr. Moliver’s expert opinion is entitled to greater weight than that of McHale. I FIND that McHale’s credibility was undermined by his careless quotation of synopses of studies he never read. He utilized a general search engine that returned results for terms “effect of HVTL at 15 ft” and followed a link to a New Hampshire Siting Commission webpage, copied the summaries, and deleted the attribution footer from his reprint. As reluctant as I am to express this, in my opinion, such “scholarship” by a student would produce an “F” and subject one to claims of plagiarism. It is certainly not the work product of a professional entitled to much weight to count the number of supportive studies versus the number of unsupportive studies without regard for the study criteria and quality. The merits, depths, sampling size, and commonality must be taken into account before a study can be cited as persuasive to a novel setting. I also FIND that his opinion as an expert witness was blended with several lay perceptions that fell outside the scope of his presentation for the Company and were unverified.
The utilities need to quit using this guy.  It sure appears that he put little effort into his testimony, but yet he most likely billed the utility thousands for his "work."  Because utilities believe their expert's opinions are beyond question, apparently some of the "experts" believe likewise.  JCP&L should ask for its money back.  Of course, it's not really JCP&L's money... they paid this guy with funds they will recover from ratepayers.

While the judge did not make a finding on the EMF issue, I got the distinct impression that maybe she believed that the industry has influenced science and that "experts" like Dr. Bailey make a tidy living being utility "experts" and making the same denials over and over.  Perhaps Bailey made a grave error by trying to make the opponent's witness look like a quack.  The judge mentioned that she didn't find him "eccentric" at all.  All those delicious ad hominem utility arguments tossed out to avoid any real debate of the EMF issue... wasted!

The best expert witness overall was clearly RAGE electrical engineer Jeffrey Palermo.  It's obvious that he developed an early rapport with the judge that the other engineering witnesses just couldn't touch.  The technical aspects of electric transmission are extremely difficult for laypeople.  Utility witnesses are usually more about complicating things with unfamiliar words and technical terms in an effort to make the judge give up and simply just trust his opinion because they can't put everything together to devise their own.  From reading this decision, I surmise that Palermo approached it differently and was able to explain the technicalities in a way the judge could understand and equip her to make an informed decision on the technical merits of "need."  He also presented a workable alternative that could be much cheaper and less invasive to the community.  And he clearly explained this alternative to the judge, who adopted it as a possible future solution.  Well done!

JCP&L needs to take a look at its own failed regulatory strategy at this point.  It didn't work on this judge.  She saw right through it all.
The evaluation directed by JCP&L was both pre-emptive in the timeline of the “need” for the Project and created an unlevel playing field tipped in its obvious favor. This is not a close case of general public interest versus parochial interest, with a tie going to the public utility company. I CONCLUDE that JCP&L’s application for municipal waivers pursuant to N.J.S.A. 40:55D-19 must be denied because the Company has not supported its application by the preponderance of the relevant and admissible evidence. The MCRP is not a safe or reasonable response to the potential P7 violation.
Any transmission opposition group that seeks to have a transmission regulatory application denied has to show up and play ball.  RAGE played hard, but more importantly it played smart.  It gave the judge the tools to deny this application.

But the regulatory process isn't the only game transmission opponents need to play.  Public opinion and politics also play a huge role in driving a denial.  RAGE rocked this game as well.  In her summary of the public hearings, the judge remarked:
The prepared summary of written statements indicates that eighty-three (83%) percent were opposed to the MCRP; and, seventeen (17%) percent in favor. Approximately twenty-five (25%) percent of the statements opposing the Project were form letters; and ninety-two (92%) percent of the statements in favor of the Project were form letters, of which eighty-eight (88%) percent were not from the impacted area.
And where did those 92% favorable form letters come from?  The judge elaborated:  "Those backing the MCRP primarily based that support on reliability and economic concerns, and were primarily from businesses not in the five impacted municipalities on a form letter prepared by the New Jersey Chamber of Commerce for its members."
The utility popularity contest was a flop in this instance.  Regulatory public comment hearings are intended to give voice to the community.  The utility's opportunity to make its opinions known comes during the hearing process.  But yet utilities consistently attempt to intrude in the public's opportunity by coercing supportive statements from entities who care little about the project.  It's strictly a numbers game to the utility -- how  many supportive comments can they coerce, and how "important" are the supporters?  RAGE completely drowned these shills out by showing up in record numbers and making honest, heartfelt, personal testimony opposing the project.  Perhaps JCP&L had a hand in its own defeat here by enraging the community to counteract JCP&L's underhanded efforts to set up its numbers game.  Utility efforts to coerce supportive comments from the community is a tactic that has backfired on more than one occasion and it needs to be jettisoned from the utility bag of tricks.

RAGE's victory should be celebrated and admired.  They not only accomplished their goal, but they provided an example that will be studied over and over by transmission opponents on other projects (and dare I say utilities, if they ever pull their heads out of their own behinds long enough to recognize they have a serious problem with opposition groups).
Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.  --  Margaret Mead
Well done, RAGE!  You changed the world!
3 Comments

Top Ten Clean Line Mistakes:  #10 - Greenwashing

3/7/2018

1 Comment

 
There was a top secret Mayberry meeting over the weekend!  Well, maybe it wasn't so top secret, but Clean Line wasn't invited.  We had a great time re-hashing all the ways in which Clean Line screwed up and made us laugh over the years.  And now that Clean Line is nothing but a "would have" and no longer a "will," an idea was born to create a Top Ten Clean Line Mistakes blog series.

From the first time I read about Clean Line, it has always struck me as a bunch of clueless knuckleheads pretending to be a transmission utility company.  It's not like anyone at Clean Line had any experience whatsoever building regional or national transmission lines.  The most the staff could claim is that they used to work for a wind company that built some generation tie lines that relied on voluntary landowner easements.  That's a whole entirely different animal.

I'm not sure they actually fooled anyone with their "monkey see, monkey do" imitation of real utilities.  But what ensued was a hugely expensive comedy of errors that has ended in failure.

Mistake #10:  Greenwashing

Green is good.  Green is beyond question.  Everyone loves green!  If we just tell everyone our transmission line is for "clean" energy, everyone will support it!

Wrong.

Transmission lines are open access.  There is no such thing as a "clean" line.  Once a transmission line is built, any customers can use it.  In Clean Line's case, it needed to find customers to use its line before it could be built.  Clean Line tried for years to find customers for its transmission capacity, first proposing that its customers could be wind generators, or utilities who wanted to connect with wind generators.  When that didn't work, Clean Line started trying to sell its service as an "arbitrage opportunity" to move fossil fuel power between electric regions.

"Clean" Line?  What is that?  All the "clean" seemed to wash off the line when push came to shove.

And where did it get them?  Nowhere.  Clean Line wasn't useful as an "arbitrage opportunity" either.  There simply weren't any customers.
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The only ones fooled by Clean Line's greenwashing were gullible environmental groups.  And they simply didn't matter.  It's all fine and good to say that there's a "demand" for clean energy, but when you can't produce any actual customers, the project fails.

So, attempts at greenwashing the transmission proposals were a mistake.  Greenwashing only succeeds in selling cleaning products, not transmission lines.  When the targets of the greenwashing are knowledgeable, greenwashing fails.  While Clean Line sold its product to clueless environmentalists in cities far, far away from its proposed transmission lines as "clean" and "green," ultimately those who fell for Clean Line's greenwashing didn't matter.  The only ones who mattered were the utilities to whom Clean Line attempted to sell its transmission capacity.  Greenwashing didn't work on them because they knew the truth about transmission and Clean Line didn't provide any benefit for them.  Likewise the landowners in the local communities.  Clean Line destroying their properties in order to provide greenwashed transmission capacity to utilities hundreds of miles away didn't work either.  Landowners spoke their opposition loud and clear and fought Clean Line every step of the way.

Greenwashing proved to be a poor substitute for proposing a transmission need to regional grid planners and getting them to agree and add it to their plan.  It turns out there really wasn't any need for a "clean" line and being "green" really didn't work to convince any customers to buy capacity.

Tune in as we count 'em down over the next ten days, folks!  And don't be shy about sharing your own personal Clean Line mistakes in the comments.  It's our own little virtual Block party!
1 Comment
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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