Furthermore, the Transource letter sent to landowners  dated January 5, 2018 is inaccurate  and misrepresentative of the proper procedures set in place  under the Eminent  Domain  Code and public  codes of the Commonwealth. In  the letter, your company  stated it  has obtained utility status by Pennsylvania. While the Public Utility Commission (PUC) approved Transource's application for utility  status on December 21, 2017, your company  has yet to obtain  the appropriate certificate  and orders from  the PUC to  operate as a public utility  and conduct land surveys/assessments. Moreover,  even after obtaining the appropriate approvals,  Transource must follow the Eminent Domain Code  and issue a  10-day notice to all landowners before  accessing private property. As of today, Transource cannot  send such a notice until the proper certificate and approvals from the PUC.

I have received numerous complaints from constituents in my legislative district who experienced threatening behavior from your contracted land  services agent, Western Land Services. In communication with landowners,  agents from Westem Land  Services threatened to call the sheriff's office  and arrest residents who did not  sign letters granting access to their properties. This type of coercive behavior and  harassment by your contracted  agent is unacceptable  and illegal  at best. I  am requesting punitive actions be  taken to  ensure this type of disrespectful behavior  does not  happen again during  the remainder of  the project.

But after running out the clock with years of study, TVA President Bill Johnson said the utility would back out of the plan — leaving the Clean Line project twisting in the wind.

Late last month, TVA decided not to buy the wind energy it had been window shopping for nearly six years.

The deal was sealed after it became apparent to Clean Line that TVA had little appetite to complete a six-year-old memorandum of understanding to purchase the project’s wind power.

In the meantime, Clean Line founder and president Mike Skelly told RTO Insider, the company will focus on its four other long-haul HVDC projects.
“We’re adapting to the headwinds,” Skelly said. “You have to adapt.”

In response to several queries from Talk Business & Politics, Clean Line on Wednesday (Jan. 3) issued a statement saying a recent decision by the Tennessee Valley Authority (TVA) to drop its six-year-old interconnection agreement with the Texas partnership has put the project on hiatus.

“The need for low-cost renewable energy in Arkansas remains and the benefits the Plains & Eastern Clean Line will deliver to the state have not changed. Clean Line Energy is retaining all permits and acquired rights-of-way in Arkansas while we continue to evaluate energy markets and will respond accordingly,” said Clean Line Founder & President Michael Skelly. “Unfortunately, TVA’s reluctance to enter into an agreement with Clean Line … at this time has delayed our ability to deliver low-cost, renewable energy to the Southeast U.S. and jobs and investment to Arkansas.”

No terms of the deal were disclosed, but regulatory and court filings show that Clean Line appraised the value of its Oklahoma assets north of $1 billion.

But it was exactly two years ago Clean Line cleared its biggest regulatory hurdle in Tennessee when the TVA board unanimously voted to approve the Texas partnerships’ application for a Certificate of Public Convenience and Necessity to operate as a wholesale transmission-only public utility in Tennessee. At the time, TVA said there was a need to connect the supply of thousands of megawatts of new wind energy in the Oklahoma Panhandle with the increasing demand of utilities in the Mid-South and Southeast.

Clean Line has often touted TVA’s “letter of interest” stating that the project presented a valuable option for affordable energy for the Tennessee utility conglomerate, whose largest customer is the city of Memphis.

The nation's biggest wind generator, NextEra Energy Resources, has bought the Oklahoma portion of the proposed 700-mile-long Plains and Eastern Line to serve Oklahoma and Midwest customers. But for now, plans to bring wind energy from the windy areas of Oklahoma and Texas into the less-windy Tennessee Valley and Southeastern part of the United States are stalled and unlikely to be resurrected for years.

"Unfortunately, this represents a significant delay in our ability to deliver this energy in the Southeast," Skelly said of the decision not to actively pursue the project at this time. "TVA's lack of interest has certainly not been helpful."

Skelly said other utilities want to buy wind-generated power, and Clean Line is now focusing on its four other transmission projects in the Midwest and the Western part of the United States. NextEra will use the Oklahoma part of the Plains and Eastern line to begin serving parts of Oklahoma, Kansas with wind-generated power that NextEra plans to develop.

"We are hanging onto our permits and rights of way in Arkansas in the event TVA in the future says it might like this power somewhere down the line, " Skelly said. "But at this point it would take considerably more effort to get this project moving for TVA again."


"TVA obviously has to make its own decisions about its future power supply, and we understand that," Skelly said. "But for now, we've stopped the process [of pursuing an interconnection agreement with TVA] because TVA required a whole lot of money to continue in this process but they have not wanted to make any commitments to buy the energy off of this line."

But Skelly said other utilities have found that their projections about the costs of using a variable source of power like wind have often proven more than expected "and as battery and other storage methods become better, wind will prove even more attractive."

"We think we gave TVA a very good offer, but apparently they did not," he said. "We're still getting a lot of interest from other utilities that want to increase their renewable energy and see wind as a good way to achieve that at a reasonable cost."

Skelly said Duke Power and other Southeastern utilities have expressed interest in buying more wind-generated power, but TVA was needed to buy and/or readily transmit the 3,500 megawatts the line was designed to deliver to Memphis.

Skelly said he and his partners have been working on the Clean Line transmission project for more than eight years and have had to battle local landowners who didn't want to sell their land and regulators in Arkansas who balked at permitting the transmission line rights of way to a developer from another state.
"We've been able to overcome those obstacles, but we always knew when we started it wouldn't necessarily be easy or quick," he said. "But we do think it is the right choice in the long run."

It is my understanding based upon public information that Clean Line requested the use of federal powers of eminent domain through an arrangement with the U.S. Department of Energy under Section 1222 of the Energy Policy Act of 2005 for the Plains and Eastern project. This request required the development of an Environmental Impact Statement under  the National Environmental Policy Act (NEPA) within which the specific purpose and need for the project, siting considerations, and specific environmental impacts for the Plains and Eastern Clean Line project were assessed and considered in order to receive final approval through a Record of Decision for the Plains and Eastern project.

Witness Hurtado has not provided any additional insight or discussion in his responses as to what potential additional permitting requirements and schedule risks may be associated with using a portion of right of way for the Plains and Eastern Clean Line project that was originally acquired for a project that was approved under a different purpose and need, under a different regulatory authority, and potentially, with different permitting requirements.

Landowner Opposition Formidable Obstacle to Tx Projects
Several speakers discussed the opposition Clean Line Energy Partners has faced from landowners and regulators in its plans to connect renewable resources with urban centers via long HVDC transmission lines.
“You’re going right back to the not-in-my-backyard thing,” said Ted Thomas, chair of the Arkansas Public Service Commission. “That’s causing intense pushback. ‘My granddaddy had this land. This is our family property. I don’t want this big, honking thing coming through here. You don’t understand, this property is not for sale.’”

“Siting is difficult,” agreed Missouri Public Service Commissioner Steve Stoll. “Anytime you’re dealing with private rights and eminent domain, it’s difficult. You can say you’re helping our area by giving us the ability to sell our homes and attract business, but [the landowners] don’t see much value in it.”

While not yet ready to begin construction, Hurtado said the next big milestone isn't far off, and Clean Line has turned its focus to finding key customers.

"We've been at it for a while, and we're very close to the finish line," he said.

Clean Line has yet to announce any firm agreements with Southeast utilities for transmission. Meanwhile, the clock is ticking.

"We think that there's a time-sensitive opportunity," Hurtado said. "I'm not comfortable waiting too much longer. The sooner we can get this done, the better. There are always risks, and you want to manage that really prudently. We're already in pre-construction. The sooner we get into full-fledged construction, the better."

"Obviously, the trick is to make sure that you have capacity at the right price to the people that are actually winning the contracts in the Southeast," Hurtado said. "There's direct commercial discussions that are going on that are confidential. There are RFPs [requests for proposals], and that's still moving forward. It's part of our overall commercial discussions that we've got that are sort of focused, but they're all sort of in the works."

One potential customer, the Tennessee Valley Authority, so far hasn't shown an interest in taking transmission service from the Plains and Eastern.

TVA signed a memorandum of understanding with Clean Line in 2011, but the utility currently has no need for more energy on its system as its long-range plans show no demand growth for the next decade, said spokesman Scott Brooks.

And any older power plants being shut down by TVA are generally being replaced with natural-gas-fired generation, Brooks said.

Plains and Eastern is open to PSO or other utilities customers owning all or a portion of the transmission line, commensurate with their transmission needs. In addition, Plains and Eastern is open to PSO or other utilities managing part or all of the Plains & Eastern Project's construction.

If there is a demand for Oklahoma Panhandle wind in eastern Oklahoma, the Project's first phase could be built solely in Oklahoma. Subsequent phases could be built at a later date if market demands warranted such action.

While Plains and Eastern's efforts have been focused on HVDC transmission, other technical
solutions could be constructed in the Project's right-of-way, such as 345kV AC or 765kV AC. Plains and Eastern is open to modifying the
Project to a different technology or voltage level if it offers the best value to customers.

The Project begins near Wind Catcher's generation position in the Panhandle and the route runs within 50 miles of PSO's Tulsa North substation, the proposed interconnection point for the Wind Catcher line.  In eastern Oklahoma, there are also other potential interconnection points in PSO's service territory that are even closer to the Plains & Eastern Project's route than the Tulsa North substation and could be utilized to serve PSO load and other loads.

Furthermore, the Plains and Eastern team has received many questions from landowners and other stakeholders in Oklahoma about the Wind Catcher project. The team has been asked if Plains and Eastern can be involved or assist in the Wind Catcher project given that Plains and Eastern has a construction-ready, long-haul transmission project that runs from the Oklahoma Panhandle to the east and has acquired easements on more than 750 parcels in Oklahoma.

After being approached by representatives of PSO, Oklahoma landowners have asked the Plains and Eastern team if they should work with PSO even though they have already signed an easement with Plains and Eastern.

The power markets have evolved substantially since Plains and Eastern received its order from this Commission in the past eight years and eastern Oklahoma is now a strong delivery point for the Plains & Eastern Project. The Project could be utilized to accommodate high-voltage either direct current ("HVDC") and alternating current ("AC") transmission solutions to accomplish this interconnection in eastern Oklahoma and Plains and Eastern is willing to engage to consider either option. Mr. Hurtado stated that he would explain that Plains and Eastern is open to building a first
phase of the Project that is located solely in Oklahoma.

SPP has no plans to build new transmission
lines in the next decade, making independent transmission necessary to enable large amounts of new wind farms to be built in the Oklahoma Panhandle.

Plains and Eastern has also secured all key regulatory approvals necessary for construction on that route.

The DOE independently analyzed the proposed route and several alternative routes in its
EIS and ultimately approved a preferred route through its Record of Decision.

Plains and Eastern's careful and open approach to landowner interaction and easement acquisition established the company as a solid partner and good neighbor in Oklahoma

Many landowner conversations are on-going, and Plains and Eastern is highly confident that all right-of-way necessary to start construction could be completed in time to allow for construction to start in 2018 and an on-line date in 2020.

We heard about the valuable role agriculture plays in this region and our engineers worked to ensure typical farming practices in **INSERT COUNTY NAME HERE** County, from crops to orchards, could continue to exist within the right-of-way.