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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

Federal Transmission Permitting Is a Bad Idea

3/7/2018

1 Comment

 
This guy.  Ugh.
The Republican Party’s current infrastructure spending bill is missing one item: a provision establishing federal siting authority for electric transmission lines. Oddly, this idea has few champions in Congress and only tepid support from environmental groups.
That's because its an awful idea that nobody supports.  Congress doesn't support it.  And do you know why that is?  Because states and citizens oppose it.

While natural gas is limited by its geographic sourcing, electricity generation can take place anywhere.  The days of coal mine mouth electric generation plants and long distance transmission lines are over.  It's much more efficient to move fuel to generation plants located closer to load.  And it's much easier to move fuel than it is to build electric transmission lines.

We don't need federal authority for transmission lines.
Problematically, the best locations for wind and solar power plants are far from population centers—in the windy central plains or the sunny southwestern deserts.
That's absolutely not true.  The "best locations" for wind plants are offshore, conveniently located within just a few miles of the largest population centers.  The "best locations" for solar are right on your own roof, where source and sink align to create the most reliable system.
More than ever, consumers want green power.
Also not true.  When consumers were given an opportunity to purchase renewable energy transmission capacity from the Midwest, there were no takers.  Whether it was a matter of price (new transmission will produce a cost to consumers in the billions of dollars), or a matter of favoring local resources, or both, consumers rejected Clean Line Energy Partner's plans for new transmission.  Consumers who say they want "clean" energy in a random survey are never given complete information about how much this "clean" energy is going to cost, and when the rubber hits the road, consumers vote with their wallets.  Any consumer truly dedicated to a "need" for clean power can make it happen at home.  We don't need big utilities and expensive new infrastructure to make it happen.
Conservatives claim that federal transmission siting authority would threaten state sovereignty or landowner property rights, but those claims ring hollow. Why are those values worth protecting against transmission lines but not against natural gas pipelines?
Those claims don't ring hollow to the affected landowners, and those are the only parties who matter in this instance.  Landowners, frankly, don't give a shit if some policy wonk in the big city thinks their legislators' protection of private property rights sounds hypocritical.  Those policy wonks won't be voting in the next local election, but the landowners will.

Why is it that these liberal wind bags demand that you abandon your own beliefs if you don't support theirs?  "Okay, so you're against transmission lines, therefore you must also be concerned about my issue."  No, we're not.  Attempts to reframe the argument to paint opposition as hypocritical serve no one and are just a waste of time.  But while we're on the subject of hypocritical arguments, that's where your environmental groups come in.  They attempt to use landowners to serve their environmental goals by latching onto non-environmental arguments, such as eminent domain.  And then they get caught supporting eminent domain for electric transmission lines, but not for gas lines.  And then the people start to feel used.

Dude, your argument is crap.  Federal permitting and siting for electric transmission has been attempted many times over the years and it has consistently failed.  Elected officials know it can't happen.  That's why they don't support it.

Duh.

Never going to happen.
1 Comment

Pulling Back the Curtain on Protect Our Pocketbooks

3/7/2018

6 Comments

 
Well it's about time you started fighting back, AEP.  Mysterious Wind Catcher hate group Protect our Pocketbooks thinks it can continue to blow smoke up everyone's rear end without revealing its financiers.  Ya know what?  That can't happen.  The credibility of a group spending buckets of dark money in an attempt to derail an energy proposal just can't pass the sniff test.  At some point, the ones responsible for Protect our Pocketbooks are going to be outed.  And how embarrassing is that going to be?

Reporters in Arkansas seem pretty curious about who's funding Protect our Pocketbooks, and a curious reporter is like a dog with a bone.  They don't stop until they find the answer.

Give a listen to this report by NPR's Jacqueline Froelich.  Froelich gets the lobbyist/attorney who incorporated the mysterious group on the air, and he sounds rather peeved when asked who is funding his group.  Justin Allen says, "As a 501(c)4, as it's right to do under state & federal law, supporters and contributors are anonymous and choose to remain that way."

Well, for now.  At some point, Protect our Pocketbooks is going to have to file an IRS-990 (if it really is registered with the IRS like it claims*) and then all bets are off.  What kind of information is revealed in an IRS-990?  Total receipts.  Total expenditures (including who they paid and what for).  Total end of year assets.  Compensation paid to employees.  Names of its Board of Directors or Board of Trustees members, and any compensation received by these parties.  An IRS-990 must be made public.  You can only hide so long, Protect our Pocketbooks.

Now wouldn't it be better to just slink away and hope nobody follows up after you file your taxes?

You know what happens when a person tells a lie?  They have to tell supporting lies, and then lies to support their supporting lies.  Lies upon lies upon lies until even they can't keep their own lies straight.  I love when that happens!

And its not just NPR.  Arkansas Times also wants to know who is funding Protect our Pocketbooks.  Except the author makes some wrong conclusions about whether the organization is "political."
Little is known about the opponents. A  consultant for Renewable Arkansas, a nonprofit offshoot of a group called  Americans for Affordable Energy, has placed an op-ed article recently opposing the SWEPCO project. The author, Grant Tennille, former director of the Arkansas Economic Development Commission, questioned the reliability of the savings estimate and also said it would provide an advantage to SWEPCO in continuing to sell excess electricity from existing coal-fired plants in Arkansas into the open market. Bringing in wind lowers the company's overall cost of power and makes the sales more profitable, he wrote. He has not responded to my email asking about his employer on the issue. He suggests, by the way, that SWEPCO should invest in solar power in Arkansas.
And then the peanut gallery accuses "fossil fuel interests" ... "like the Koch Brothers" of funding Protect our Pocketbooks.

But Justin Allen told Froelich that there's no association between the Windfall Coalition and Protect our Pocketbooks.  Protect our Pocketbooks claims to be for renewable energy and distributed generation.  Distributed generation is roughly defined as many small, local generators located close to electrical load.  Where are a bunch of small, local, renewable generators going to get the kinds of money being spent by Protect our Pocketbooks?  There's a huge amount of money in play here, which means there's a huge amount of money to be made by someone if Wind Catcher fails.  Protect our Pocketbooks own spokesman claims that SWEPCO will continue to generate and sell power from its existing coal-fired power plants.  Sounds like Wind Catcher isn't going to hurt fossil fuel interests, so why would they spend buckets of money on biased TV commercials?  Think about it.

The answer is pretty simple.  I've got a pretty good idea where the money is coming from, but just like Protect our Pocketbooks, I don't have to reveal any information I don't want to.  The only problem with a failure to reveal information is that you may lose the public's trust.  Lose the public's trust and your entire effort to manipulate public opinion falls flat.  Not so much a problem for me, since I don't have a dog in the Wind Catcher fight, but it becomes a huge problem for Protect our Pocketbooks.  Without a gullible public who takes their ads at face value and acts without thinking, Protect our Pocketbooks is a gigantic waste of money.

Which brings us to... AEP, finally attempting to fight back with a news release directed towards the veracity of Protect our Pocketbook's claims and its source of funding.
“A group known only as Protect Our Pocketbooks – which does not reveal the names of its backers or the sources of its substantial funding – is presenting misleading information to the public, including manipulation of statements by Arkansas Gov. Asa Hutchinson,” said Brian Bond, SWEPCO Vice President of External Affairs.

Gov. Hutchinson wrote to the Arkansas Public Service Commission on Jan. 11 asking that the benefits of federal corporate tax cuts be passed on by utilities to Arkansas families and businesses. “In its latest television ad, Protect Our Pocketbooks misleadingly associates the governor’s comments about corporate federal tax cuts with the group’s campaign against Wind Catcher,” Bond said.

“The anonymous, tax-exempt opposition group claims that Arkansas gets none of the benefits of the project, which is incorrect and misleading. Arkansas will receive the benefits of generation with no fuel costs, cost savings immediately and over the life of the project, the full value of the federal Production Tax Credits available to the project, and the economic development benefits of wind turbine components being manufactured in Arkansas,” Bond said.
I was really hoping for the entertainment of a competing front group funded by AEP, but they chose to take the high road this time.  And you can take it from the horse's mouth, AEP knows a fake grassroots support group when it sees one.  It's been responsible for enough of its own over the years.

But at least, for now, they're slapping back, and a huge, public bitch-slapping contest can still be fun for everyone!

And, remember, I'm worse than a reporter.  I never forget.  I'm sort of patient that way.

Carry on!
*The IRS can verify the existence of a tax exempt organization.  As well, "Contributor names and addresses listed on an exempt organization's exemption application are subject to disclosure, however."
6 Comments

Transource "Respects" Landowners by Filing for Court Order to Trespass and Damage Property

3/1/2018

3 Comments

 
Transource Urges Court to Deny Due Process for Landowners
Transource has sunk to new lows this week.  Hard to believe they could go any lower, right?

Transource filed petitions in Pennsylvania and Maryland courts asking the court to order landowners along its proposed route to permit entry for "surveying," including "geotechnical surveys (including soundings and drillings for testing soil and bedrock)," and "civil surveys (including trimming or cutting vegetation necessary for survey purposes)."  That's right, in addition to all the other things it wants to do to private property, Transource wants to clear cut your trees and bring large equipment across your place so that it may drill into your bedrock.  And guess what you're going to get for this intrusion?  A promise that Transource will give you money to repair the damage they do.  You believe them, don't you?

I couldn't think of a more certain way to demonstrate to landowners how little they matter and how much this company disrespects them than this statement in a court filing:
Defendants will suffer no damage as a consequence of granting immediate possession, because any damage to the land will be remedied by the payment of money, per the statute.
Money can't put 100 year old trees back where Grandpa planted them.  And it probably can't fix compacted and mixed soil, not really.  And if your horse steps into a random drill hole and breaks a leg, maybe you can buy a new one with your free Transource horse voucher.  It's just a possession, right?  It's almost as useful as getting a free $10 meal voucher for having to spend 11 hours at an airport waiting for a cancelled flight to be rescheduled.
So what's the problem here?  The problem is that Transource has no legal authority to enter private property to "survey," and landowners have refused to voluntarily give permission to enter.  Transource is in a big, giant hurry to get its project built.  In fact, they're in such a hurry that they can't seem to wait for the state public utility commissions to find their project necessary and they want to pretty much "move forward" on building their project ahead of state approval.

​Transource spokespuppet Abby Foster tried to pretend it's just a few landowners holding up progress:
Transource appreciates that many landowners have granted them access to conduct surveys, Foster said. 
​
"Transource and its representatives are committed to treating landowners and their properties with respect," Foster said. "While reaching a voluntary agreement with property owners is a high priority, it is imperative for Transource to continue through the phases of the project as the company seeks regulatory approvals. The approval of this filing will allow Transource to proceed with field work for those landowners who have not yet granted the company access.”
How many landowners have granted them access on the proposed Eastern right of way?  Well, Transource's application says there are 38 owners in York County.  The media says filings were made against 36 landowners.  Two out of 38 is "many?"  No, it's not.  If it was only a few landowners, Transource could go around them and wouldn't need to file these desperate, reaching petitions.

It is not "imperative" for Transource to continue through the phases of its project before it has been determined needed by the state utility commissions.  Just because Transource and PJM signed an agreement setting pretty impossible deadlines is not reason enough to trespass upon private property, damage it, and then take away any due process for landowners to object.

​Transource says:
Transource PA will not be able to begin construction in time to allow the Project to be completed to meet the in-service date set by PJM.  If Transource PA misses the PJM-mandated in-service date, the public will suffer irreparable harm in the form of continued electric gridlock, and delay or ultimate failure  of the project.  Furthermore, Transource P A will suffer irreparable harm as Transource Energy has invested considerable time and money in attempting to obtain access rights to the route.

In fact, Transource PA has invested more than $6.0 million to date in siting, design and engineering. The foregoing harms would also result if Transource PA's access is obstructed by Landowners, or other unauthorized and untrained third parties who are present on the Property in the vicinity of the work corridor at the invitation of Landowners
Suffer?  The public will suffer?  How about those landowners whose property you've commandeered?  I mean, it sure sounds like you want to take over the place and make sure no "untrained parties" are allowed to use their properties while you are surveying.  Hey, guess what?  I read Transource's attachment on how to survey for bog turtles.  Complete instructions included.  Maybe landowners can do their own surveys?  Seems simple enough.  Either you see one or you don't.  And, by the way, can you define "electric gridlock" and list the actual harms that will be experienced by the public because of it?  You make it sound like people are going to drop dead if you're not allowed to trespass on private property.

And as far as your whining about how much money you've "invested?"  You act like this is your own money, Transource, and if you don't complete the project you'll lose your "investment."  That's absolutely not true!  Transource is guaranteed to recover its prudent "investment" in the project, plus 10.4% interest, even if the project is cancelled.  If the project is delayed and/or cancelled, Transource won't be harmed at all.  Transource will be made whole (plus 10.4% for its trouble) by electric ratepayers across the PJM region.  No harm to Transource.

But you know what's most galling of all?  Transource's attempt to prevent due process for affected landowners in Maryland.
Accordingly, this Court may issue an Order, granting this petition and authorizing Transource MD to enter onto the Subject Property to conduct surveys, and obtain information in connection with the acquisition and project, without the need for a hearing prior to the issuance of the Order.
Not only is Transource's legal pondering in its petitions unsound, but they want a judge to wave his magic wand and grant them the right to trespass without the landowner being able to question the company's facts and legal conclusions.  Only a lawyer who knows his work is shockingly wrong would insist that no other parties be allowed to participate and expose him for the corporate shyster that he is.

This just can't happen.

This is a train wreck waiting to happen.  You can't bully your way onto private property with the intention of destroying it just because you *want* to build something on it, maybe, later on, if you get actual permission.  Seems to me that cutting vegetation and drilling ARE construction.  Construction without a permit.

Tick tock, Transource!
3 Comments

United Airlines Is Ridiculous

3/1/2018

1 Comment

 
If you need to get somewhere, don't fly United.

When your early morning flight is delayed until evening.

Maintenance issue my ass.

How much fun is it to spend an entire day at the airport?

And where should I spend my oh so generous $10.00 meal voucher?

Why isn't there free beer?

Screw you, United Airlines.
1 Comment

Grain Belt Express Will Still Need County Assent

2/28/2018

1 Comment

 
I woke up this morning and pondered whether Michael Skelly actually believes the things he says.  Like this:
“Today’s ruling is a significant victory for the Missouri economy and for dozens of Missouri cities that could save more than $10 million annually from the delivery of low-cost clean energy by the Grain Belt Express Clean Line,” Michael Skelly, Clean Line president, said. “After a thorough case that lasted for several months and involved testimony submitted by expert witnesses, the Missouri Public Service Commission determined the Grain Belt Express was in the public’s best interest. We are pleased that the Eastern District Court of Appeals reaffirmed the Commission’s authority in permitting and overseeing Missouri’s vital energy infrastructure projects.”
Houston energy company dabbler Michael Skelly's fake "concern" for Missouri's economy aside, the Court's decision really gets him nowhere.  It's not the "significant victory" he's pretending it to be.

One appeals court said the PSC could not issue a permit without approval of affected counties.  Another appeals court said they could.  The Missouri Supreme Court is going to have to decide this.  They could decide either way.  The Eastern District Appeals Court's decision doesn't guarantee or make it more likely that the Supreme Court will rule in Grain Belt's favor.  It's 1 for 1 and heading into the tie-breaking round.

Big deal.

So, what happens if GBE wins at the Supreme Court?  Nothing much.  It goes back to the PSC.  How much time will elapse before something like that happens?  Nobody knows, but remember, last time GBE tried to get the Supreme Court interested in taking their case, they got ignored.  And the time before that, the Supreme Court declined to review the Western District Appeals Court's initial ruling that said a transmission project must have county approval before the PSC can approve it.

And then guess what?  Even if GBE wins at the Supreme Court and even if the PSC issues a permit for the project, GBE will STILL need to get county assent to cross roads in the affected counties.  A completely different statue requires county assent.  The only thing the recent appeals court decision covered was whether or not a county must approve before or after the PSC issues a decision.  It does nothing to affect the county road assent statute.  That's an additional hurdle GBE would have to jump before it could build anything, and the bar is set pretty high.
"We’re somewhat disappointed but not entirely surprised,” said Wiley Hibbard. “We’ve been fighting this for five years and another year isn’t that big of a deal.”

Ralls County is one of eight counties that has either rescinded assent for Grain Belt or never gave it to begin with.

“What keeps me from becoming too alarmed is that they (Grain Belt developers) still have to get county assent before they build it or not,” Hibbard continued, clarifying that the PSC could still give approval without county assent. “Ralls County is in no way going to give assent to Grain Belt. All three of our commissioners are very steady in favor of protecting landowners from eminent domain.”


So, meh, big deal, Clean Line.  Another year is nothing to Commissioner Hibbard, but that's another year Clean Line's investors will have to pay outrageous legal bills without recognizing any revenue.  Do Clean Line's investors have the stomach (and the funds) for that?

Especially because the final ball has not dropped yet in Illinois.  They're still waiting for their appeals court to decide a case regarding whether or not Clean Line was a utility at the time it applied for its permit from the PSC.  If they rule that Clean Line was not a utility, it's back to square one in Illinois.  And considering that the Illinois Supreme Court ruled Clean Line was not a utility and vacated the permit the Illinois Commerce Commission issued for its Rock Island project, chances of GBE prevailing in Illinois are slim to none.  If RICL wasn't a utility, even after receiving a permit, then GBE certainly was not a utility before it even applied for a permit.   Done deal.

The current situation is nothing more than Clean Line going through the motions pretending it's going to get GBE fully permitted.  Does Skelly really believe that getting permits will guarantee him enough customers to finance the line?  Where's the customers, Clean Line?  Even with permits, the project fails without customers and will not be built.  The only "customers" GBE has are some Missouri municipalities who believe they will get below cost service from a project that expects to make up the difference by charging the other customers more.  Except there are no other customers.

This really doesn't sound like winning to me.  It sounds more like Clean Line is only trying to pretend GBE is viable.  And why would they do that?  Maybe they're trying to sell GBE to the first rube that comes along?  After all, that's exactly what Clean Line did with its "fully permitted" Plains & Eastern Clean Line.

A long time ago, affected farmers became suspicious that Clean Line never actually intended to build anything, but was trying to set up a project that it could flip to some other investor.  You've got to get up pretty early in the morning to fool a farmer.
1 Comment

Quit Wasting My Money, PJM!

2/27/2018

2 Comments

 
Dear PJM Interconnection,

Stop wasting my money on the Transource Independence Energy Connection! 

I know it's hard to admit when you've screwed up (and PJM screws up A LOT!), but with the abandonment incentive granted by the Federal Energy Regulatory Commission it also means that your screw up is costing me money.  Real money.  Dollars and cents added to my electric bill that provide absolutely no benefit to me.  Because Transource was guaranteed the ability to file to collect all its sunk costs in the event the IEC is abandoned, it doesn't cost Transource anything to continue this farce.  In fact, the longer they continue, the more money they can stuff into their capital cost accounts, and then apply to be paid back over 5 or 10 years with an 10.4% interest rate.  They're also in a hurry to do it now because their debt to equity ratio will change in 2020 and later investments won't be quite as lucrative.  As well, any capital costs over $210M will only earn at 9.9%.  It's a spending free-for-all right now as Transource tries to spend as much as possible, as quickly as possible.  Transource predicts it will spend $5.2M of capital in 2018, even though it doesn't plan to even stick a shovel in the ground until 2019.  That's nearly half a million dollars of pure profit this year!  Transource also estimates that it will spend another $1.6M on operations and maintenance in 2018.  The only thing that can stop this out-of-control spending of my money is the cancellation of the IEC.

And we all know that's where we're headed with this thing, right PJM?  The "bats" that you saw as the only impediment on your "constructability report" are revolting!

They've formed StopTransource bat groups. 
They've roosted at the Pennsylvania PUC (Docket Nos. A-2017-2640195 and A-2017-2640200) and the Maryland PSC.  Some of them have even acquired representation by bat lawyers.
They've gotten the support of their bat legislators.  Pennsylvania Representative Kristin Phillips Hill writes,
The PUC should question if the applicant has fully evaluated the use of existing transmission lines in Pennsylvania-New Jersey-Maryland Interconnection (PJM's) regional planning process before proposing a new line, which will be constructed parallel to three established high-voltage transmission power lines operating in York County. Since the intention of the applicant is to relieve congestion on the energy-grid, why not utilize transmission lines that are not operating at
full capacity? I strongly encourage the Administrative Law Judge to modify this application to use these existing transmission lines, thereby minimizing the impact of this project on the community and preserved open space, as well as protecting private landowners from being subject to the oppressive use of eminent domain actions when other utility-owned infrastructure
is available.
Why, PJM, why?  Why are you trying to build a new transmission line with my money when there are parallel lines with available capacity?  Why? 

I'm not buying your story that the existing lines aren't big enough to build your project.  They're brand new and are only half-utilized.   In addition, there's an existing corridor that's de-energized.  With all this at your disposal, PJM, why did you select a project built on greenfield right of way?  Is it because, Transource, as a new entry to your market (well, sorta, heh, heh, heh, AEP has been a member since, like 2002, right?) doesn't own any existing right of way or assets and therefore cannot upgrade something it doesn't own?  How does that save consumers money?  I thought saving consumers money was the whole purpose of this project?  Or is it now more about actually getting your first competitive market efficiency project built, and not about saving consumers money?  I think it would be much, much cheaper for me if you ordered the owners of the two existing, half-utilized lines running parallel to the proposed IEC to each build one of the two 230kV circuits you say you need.  And don't give me any of that "reliability" nonsense about having too many circuits on one pole.  It's no different that your current proposal to double circuit the IEC on one set of poles.

Meanwhile, the important bats of the community are opposing the project.  L. Michael Ross, president of the Franklin County Area Development Corporation writes:
PJM/Transource has managed to unite virtually every constituent group in Franklin County in opposition to the project. 

...neither PJM or its surrogate, Transource, has been able to establish a quantified need for the project; more importantly, they have never been able to articulate the benefits to Franklin County.

Finally, it is worth noting that the FCADC has not received a single call, email, or letter from a Franklin County business voicing support for the project.  (As an aside, one should be aware that Transource simply assumed that because the FCADC is involved in economic development that we would automatically support the project.  We all know the definition of assume.)

I guess Transource spokeswoman Abby Foster "assumed" Mr. Ross's comments meant that nobody was buying Transource's fake economic claims and vague assertions of benefit to target communities.  So she responded:
Transource officials believe the project would alleviate congestion in the high voltage grid and would create an economic benefit locally. Abby Foster, community affairs representative with Transource, released a statement saying in part: 

"The project will bring investment in the region’s local economies during the construction phase with a direct investment in the project area communities. Construction activities alone are projected to support 112-147 full-time jobs with 50-60 of these being in Franklin County."

People are scratching their heads this morning.  How could construction of something like 16 miles of transmission line require 50-60 permanent full-time jobs in Franklin County?  Are 50-60 people going to be climbing the poles in people's backyards and physically squeezing the electricity through the lines so that it may reach the Washington, DC metro area and save those city folks twenty cents a year on their bills?  What would that look like?
Picture
In the photo above, one of Transource's full-time permanent, local Franklin County workers discusses where he will place the ladder when he climbs the pole to squeeze electricity through the brand new transmission line. Other workers look on in awe, so grateful they have jobs that they don't mind climbing a ladder to the top of a transmission tower and manually squeezing electricity through the wires.
Silly, isn't it?  However, it's no sillier than Abby's job claims.  Where did she get those?  From some economics computer program where you plug in a price tag for your project and then it spits out some wacky numbers based solely on the price of the project?  Probably.  Fact is there will be few local jobs during the year or so Transource is planning to build the project.  Maybe some ground clearing or some concrete.  If you own a company who does that, perhaps you think it's okay to toss your community under the bus to make a few bucks.  It takes very specialized labor to construct a high-voltage transmission line.  Transource's contractor will import the workers with the right skills for the duration of the project.  Transource will not be cruising the K-Mart parking lot looking for day labor.  There will be zero permanent jobs created by the proposed project.  If it is ever constructed, it pretty much does its own thing unassisted.  Repairs and maintenance will be handled by crews who already have a job.  Trust me, maintaining 29 miles of new transmission is not a full-time job for anyone.

I think Abby should spend her time improving Transource's website instead.  Perhaps she can find the missing number that belongs here.
Picture
Are easement owners supposed to guess or make up their own number?

Or how about this.  Maybe Abby can figure out how to spell "publicly?"
Picture
And while she's at it she can get rid of the half-truths, such as this:
Why is this project needed? Through its regional transmission expansion planning, PJM identified concerns with the delivery of electricity on the high-voltage grid into the region.
Now, PJM, you know this just isn't true.  It's weasel words.  PJM supposedly identified economic congestion on its existing transmission system.  That means that the cheapest power available in the region cannot be delivered to all the customers in the region at certain times.  It does not mean that power cannot be delivered and the lights will go out.  It means that some load pockets that use a lot of electricity on a hot day may have to buy their power from more expensive generators closer to home.  It might cost those people some scary number... like 21 cents a month to buy that expensive power on certain days!  So, PJM, you mean to tell me that a twenty one cent savings for someone in Washington, DC is reason to tear up four rural counties in Pennsylvania and Maryland?  I don't think so.  We all know that more than 80% of the benefit from this project will be exclusive to the Washington, DC and Baltimore metro areas.  Those are places that will never allow a nasty power generator to be built in their midst, but yet they have a huge demand for electricity.  What makes you think, PJM, that rural places want to look at transmission lines strung across their communities so that those city folks don't have to make any sacrifice for their own huge appetite for electricity... not even 21 cents a month?

You're ridiculous, PJM.  The IEC project is never going to happen.  There's too much opposition and the communities threatened know the truth about the project.  You know what happens in rural communities in times of trouble?  They gather together and defend their community.  There's a lot you don't know about "undeveloped spaces," PJM.  Some land is "undeveloped" on purpose because its highest and best use is being undeveloped.

It's time to admit this project isn't really needed.  How many former PJM projects have been cancelled without being built?  How many millions of dollars have those projects cost ratepayers like me because PJM didn't want to admit its process is flawed and its projections wrong?

Stop wasting my money, PJM.  Cancel the IEC project.  Now.
2 Comments
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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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