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AEP's Shocking Arrogance Translated into Cheesy Videos

7/28/2017

3 Comments

 
Well, hey, hey, hey, aren't we Johnny on the Spot with our Wind Catcher Energy Connection project website, AEP!  But there seems to be some sort of discrepancy.  AEP has not provided the same information to the public on its website for the Independence Energy Connection, even though that project is several months down the road into route selection.  Independence Energy Connection's website provided very little information up until quite recently, and what's there now is so facile that it insults the intelligence of the public.

For example, this explanation of "congestion."
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Right... because transmission lines are just like highways and if all the electrons can't squeeze through electric prices will go up?  You forgot to mention that the "cheaper" electricity that can't squeeze through is only "cheaper" because it can't get through.  Once your 4-lane highway is in place, all the "cheaper" energy will motor through to consumers in other places.

And Independence Energy Connection seems to be missing this collection of cheesy videos that you've provided for "property owners" on your Wind Catcher Energy Connection website.  I'm sure they apply to both projects.

After watching a few of these videos I can only conclude that AEP has absolutely NO self-awareness.  Does AEP really think these videos will appeal to and reassure landowners that everything is going to be hunky dory?  The technique of using multiple actors to recite talking points and finish each other's sentences is annoying.  I'm not sure what presenting your information in that format was supposed to accomplish.  Are the public supposed to find someone they identify with in the video and listen to their 10 words of information and reject the rest recited by the other people they don't like the looks of?  Honestly, some of these guys look like deer in the headlights.  If they're not comfortable presenting information, then the viewer is not comfortable receiving it.  Or is the viewer supposed to feel like they're outnumbered and the only one going against the program?  Whatever technique you were going for, I don't think it works.

And that's because of the actual information recited. 

Such as this one, where AEP says they control what you can do on your land and you'll need AEP's permission to use it.

Or this one, where AEP lists all the things you might want to do with your land that they consider "encroachments."  AEP will monitor what you do and may "insist" that "encroachments" be removed.

This one may be most shocking... because AEP calmly tells you how you may be shocked while around or under their high-voltage transmission lines.  But it's not a risk to you.  It just might be a bit uncomfortable.  Forever.  It's all perfectly safe.

So, let's see here... AEP has just told property owners being asked to host new transmission lines that AEP will become Big Brother to monitor what goes on on their properties forevermore, insist that they remove anything AEP doesn't like, and that they're probably going to be "nuisance" shocked constantly.   Well, gosh, AEP, sign me up!!!

And AEP wonders why property owners oppose their projects?

One last thing, AEP.  I sort of hate to play the race card and all, but why are all the people in your videos white, except for that lone token black guy?  That's not what a cross-section of America looks like, in case that's what you were attempting.

AEP just keeps kicking itself in the butt.  Nice going, knuckleheads!
3 Comments

Why Buy the Milk When You Can Own the Cow?

7/27/2017

2 Comments

 
Have you often wondered why Clean Line Energy Partners doesn't have any customers for its transmission projects?

Clean Line proposes to build a transmission line and sell capacity on the line to load serving entities who want to buy power from future wind facilities and ship it east to serve their retail customers.

But what if that load serving entity already owned a bunch of its own generation and transmission assets... would buying one more generator and building one more transmission line be no big deal?

Utilities make money by owning physical assets like transmission lines and regulated generators that allow them to shift the costs and risks to captive customers and earn a guaranteed return (or profit) on their ownership.

Clean Line wanted to make money just like any utility by owning a profitable asset.  Except other utilities would much rather own the transmission (and generation) asset themselves and collect a return.  It's sort of like the difference between paying rent and ownership, and ownership comes with a guaranteed return on your investment.  What's not to like for big utilities who want to purchase generators and transmission lines to serve their geographically distant customers?

This article explains how utilities are cutting out the middleman wind farm and transmission line owner in favor of scoring the biggest profit.

Yup, AEP has announced that it wants to buy the country's largest wind farm currently under construction and build a transmission line from the wind farm to its customers.  I'm guessing AEP doesn't want to buy transmission capacity from Clean Line and then hope generation springs up at its terminus.  The risks of that are that Clean Line will never actually be permitted and financed to build any transmission, or that the wind farms won't be built, or that prices will be much higher than expected if they actually do.  Utilities hate risk.

But AEP is no hero and its $4.5B plan has an uphill regulatory battle as it seeks to stick customers with the risks of its renewable energy plays.  AEP figures its plan will save customers in four states $7 billion, most through use of federal production tax credits for wind.  Ahhhh... AEP.... did you stop to apply any simple logic to that idea?  Where do you think federal production tax credits come from?  They come from taxpayers.  They're not cash that just falls out of the sky when a wind turbine spins.  So, those customers who receive $7B in savings are also paying into a tax system that creates the savings.  How much do customers actually save when the tax burden of creating the credits gets added into the equation?  How many other taxpayers around the country that don't receive any of AEP's $7B savings are going to be subsidizing this artificial savings house of cards?  And what happens to a wind farm with a 25-year lifespan when a 10-year tax subsidy expires?  What are the savings then?  This plan may never come to fruition.

But it stands a much better chance than Clean Line's plan.  It's interesting that AEP's ginormous wind farm is located in exactly the spot Clean Line claimed independently owned wind farms to support its Plains & Eastern Clean Line would spring up. 
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I'm thinking this announcement pretty much makes what Clean Line is peddling even less appealing.  Did AEP ask Clean Line to build a converter station near Tulsa to deliver power from a wind farm in the panhandle?  Of course not!  If AEP builds its own transmission line, it can earn anywhere between 9-12% annual return on its investment, plus have all its operating costs fully covered by ratepayers.

This is why you failed, Clean Line.  Why buy the milk when you can own the cow?
2 Comments

Not Even Environmentalists Love Transmission Lines "For Wind" Through Their Own Little Slice of Paradise

7/26/2017

3 Comments

 
We're going to start here.  Play this song and turn up the volume.
Karma gave me a giggle last week when I read a story about the Cardinal-Hickory Creek transmission line proposed for Wisconsin and Iowa.  The project, one of the Midcontinent Independent System Operator's (MISO) multi-value projects designed to increase the distribution of wind power across the region, is being panned by Howard Learner of the Environmental Law and Policy Center.
"The world has changed since MISO began this," said Howard Learner, executive director of the Environmental Law & Policy Center, with offices in Chicago and Madison, serving as attorney for the Driftless Area organization. "It's sort of like saying it's important to build more telephone wires and poles to serve the additional landlines that people in Middleton and Cross Plains are going to use, and then all of a sudden, cell phones came in."
Learner, who has a home near Spring Green, said upgrades to local power lines would be more appropriate than a huge transmission line that will carry electricity produced by fossil fuel and nuclear plants, as well as wind power.
"This is not the right place ... unless it's absolutely needed to keep the lights on, and this line is not needed for that purpose," Learner said.

Oh, Learner has a home near Spring Green, you say?  Gosh, that's dangerously close to Cardinal-Hickory Creek's proposed route, isn't it?

So, now, after years of supporting other big transmission projects "for wind" across other states (see list of "supporters" at bottom of page), Learner has finally seen the light.  Can we get a Hallelujah, brothers and sisters?

"It's not the right place..." if it's near Howard's little slice of paradise.  But it is the right place if it's near someone else's.  Got it.

I think Howard might be a hypocrite.

Here's wishing a transmission line "for wind" in every environmentalist's backyard!  Perhaps then we can get on with real progress, like distributed generation and upgrading local power lines to distribute locally generated renewables.  That might REALLY change the world!
3 Comments

Significantly Wrinkled and Headed to its Grave, Grain Belt Express Hopes for a Miracle

7/26/2017

7 Comments

 
There is no miracle that can save Grain Belt Express.  Legally, it has no leg to stand on.  No matter how many Letters to the Editor that fail to recognize the legal straightjacket GBE finds itself in, and no matter how many Editorials crafted by bombastic opinion, and no matter how many legal briefs that attempt to slice and dice legal precedent to allow PSC approval of GBE, the fact remains that Grain Belt Express cannot be approved without the assent of Missouri County Commissions it proposes to cross.

It's Missouri law, and the court has spoken.

The arguments of Grain Belt and its supporters are simply rehashed crap that didn't work at the Court of Appeals nor at the Missouri Supreme Court.  From that one can surmise that if the same issue is presented to the court again in the form of a "conditional" permit issued for GBE, that the Courts will issue an identical opinion.  GBE's attempts to distinguish itself from Ameren are  desperate and deeply flawed.

Is that all you got, Clean Line?

The threats to take a denial through state and federal court are empty, right?  I mean, where are you going to get the money to pursue a hopeless state court case, not to mention a very expensive federal court case?

Clean Line no longer has a "team."  Now it only has "leaders."  After years of presenting a pictorial parade of every Clean Line employee, right down to the administrative staff who will never deal with the public, did it just become too embarrassing to have the public watching the ever-shrinking "team" at Clean Line?  Did the big lay-off happen the day "our team" disappeared?  If I call Houston, will one of the "leaders" answer the phone, if they're not busy making coffee or taking out the trash?  I hope Jayshree isn't stuck with phone and coffee duty, just because she's the only woman left on the "team."  That wouldn't be quite fair.

Clean Line's lack of any forward momentum on any of its projects makes me believe that the piggy bank is darn near empty.

If the MO PSC denies or dismisses GBE's application, I think that's all she wrote.

And will the history books reflect the demise of Clean Line accurately?  The only thing that ever stood between Clean Line and success was its careless disregard for landowners and local governments.  Perhaps it was simple greed that prevented Clean Line from allowing participating landowners a piece of the pie commensurate with their sacrifice.  And perhaps it was sheer arrogance that caused Clean Line to think that it could buy enough political influence to run over Mayberrian officials.  Whatever the cause, the effect will be fatal.

"Clean" lines were not well planned, and instead of applying the Golden Rule that any outsider can easily see permeates Mayberrian society and adjusting their plan to produce a successful outcome for everyone, I guess Clean Line's greed and arrogance got the better of them.

It's time for this circus tent to come down.
7 Comments

Missouri PSC Staff Says Grain Belt Express Must Be Dismissed

7/7/2017

3 Comments

 
The Staff of the Missouri Public Service Commission didn't waste any time filing their brief on whether or not Grain Belt Express needs county assent before the Commission could issue a permit.  Although not due until July 18, per Commission Order, the Staff emphatically stated that the Grain Belt Express application must be dismissed.
The Western District Court of Appeal’s holding means that, because Grain Belt does not have consent from the Caldwell County Commission for Grain Belt’s proposed transmission line to cross the public roads and highways in Caldwell County, this Commission cannot lawfully grant Grain Belt the CCN it requests for the Grain Belt transmission line project.

The law as expounded by the Western District Court of Appeals in its opinion in Case No. WD79883 requires that, because Grain Belt has failed to prove that it has the consent of Caldwell County required by § 229.100, RSMo., to cross the public roads and highways in Caldwell county, which consent the Missouri Western District Court of Appeals has held is required by § 393.170, RSMo. as a precondition to the Commission granting Grain Belt the CCN it requests, this Commission should dismiss this case, whether it does so by granting the Missouri Landowners Alliance’s motion to dismiss or otherwise.

Why wait when the issue is so clear?

Or maybe they just got tired of reading Mark Lawlor's incorrect legal analysis in the media?
Mark Lawlor, director of development for Clean Line, doesn’t believe that the standard applied in the case of Ameren’s project is pertinent to the Grain Belt Express.
“We’re saying these are two different things, with entirely different standards,” he said. He contends that the standards debated in the Mark Twain project apply to utilities seeking permission to provide service on a retail basis, and are not relevant to a merchant developer of transmission, like Clean Line.
The two standards “have gotten conflated into one confusing mess,” he said.


I think the only one confused here is Mark.  He's been marinating in his own misinformation just a smidge too long.

Mark Twain never sought to "provide service on a retail basis."  That's pure invention on the part of Mark.  The PSC Staff says:
The salient facts here regarding Commission jurisdiction are no different than those in the Mark Twain transmission line case. Both are requests for CCNs for transmission lines that would traverse multiple Missouri counties. In both cases the applicants argue in every venue that their requests were made in reliance on §393.170.1, RSMo., for “line certificates” as addressed in State ex rel. Harline v. Pub. Serv. Comm’n, 343 S.W.2d 177, 182 (Mo. App. W.D. 1960). In Case No. WD79883, the Western District Court of Appeals rejected the argument squarely presented to it that the county consent required by § 229.100, RSMo., is not a prerequisite to the Commission issuing a CCN for a line, regardless of the Harline-based distinction between §393.170.1, RSMo., “line” certificates and § 393.170.2, RSMo., “area” certificates.
Grain Belt Express and Mark Twain both applied for a "line" certificate, no matter what Mark thinks.  So if the Western District Appeals Court's order vacated Mark Twain's permit because it was granted before county assent was obtained, then Grain Belt Express also cannot be granted a permit before obtaining county assent.  No way.  No how.  To do so would be a direct defiance of the courts.  Now why would the PSC want to do that?

You should read the Staff's brief.  It's only 3 pages.  They didn't need much space to explain the law.

It's when a party needs page after page after page of the most ridiculous, intricate, and circular legal arguments to prop up their desired outcome that you know they're wrong.

The truth is simple.  So is doing what's right.
3 Comments

"Let this finally be independence day for the affected landowners"

7/5/2017

1 Comment

 
So said the Motion to Dismiss filed by the Missouri Landowners Alliance on July 4, 2017.

After years of battling the Grain Belt Express transmission project proposed to cross the northern half of the state, Missouri law has been made clear by the courts.

A company may not construct an electric transmission line without the permission and approval of the Public Service Commission.  An application to the PSC for an electric transmission line must include:
(D) When approval of the affected govern- mental bodies is required, evidence must be provided as follows:
2. A certified copy of the required approval of other governmental agencies;

If any of the items required under this rule are unavailable at the time the application is filed, they shall be furnished prior to the granting of the authority sought.


And Missouri law requires:
No person or persons, association, companies or corporations shall erect poles for the suspension of electric light, or power wires, or lay and maintain pipes, conductors, mains and conduits for any purpose whatever, through, on, under or across the public roads or highways of any county of this state, without first having obtained the assent of the county commission of such county therefor; and no poles shall be erected or such pipes, conductors, mains and conduits be laid or maintained, except under such reasonable rules and regulations as may be prescribed and promulgated by the county highway engineer, with the approval of the county commission.
This couldn't be clearer!  Grain Belt Express must submit the assents of the County Commissions to the PSC BEFORE the PSC issues approval.  The Western District Court of Appeals confirmed the law, and the Missouri Supreme Court decided not to review that opinion.  Therefore, the law and its interpretation is settled.

But yet Grain Belt Express is so desperate that it has been pretending in the media, and in a Motion for Waiver or Variance of Filing Requirements at the PSC, that there is still some question about the law and its interpretation.  Clean Line is asking the PSC to ignore the law and the courts, and create some new interpretation of the statutes that attempts to circumvent the court's opinion.  Clean Line wants the MO PSC to gladly step in front of a speeding bus in order to save Grain Belt Express to fight another day.

Why would the PSC step up to defy the court and waste its resources when Clean Line refuses to help itself?  Ameren, the company proposing a transmission line that was the subject of the relevant court case, chose to fall on its sword, instead of pushing the PSC to take the heat.  Ameren rerouted its transmission line along existing rights of way with the hope of finally receiving county assent for its project.  Grain Belt Express refuses to abide by the interpretation of Missouri law by the courts, and refuses to secure county assents.  Clean Line believes it does not need no stinkin' county assents and it threatens to litigate any PSC decision that requires it.

Well, good luck there, Clean Line.  Your bravado is laughable.  That's big talk for a company who may not have the financial resources to continue this battle.  Just last month, Clean Line claimed that a prolonged delay in approval by the PSC would serve as a "defacto denial" of its project.

Nevertheless, the PSC issued an Order this morning setting a briefing schedule on this issue, along with oral arguments for those submitting briefs.  The Commission will entertain briefs until July 18, and hear arguments on July 25 at 10:00 am.

Be there or be square!

1 Comment

Clean Line Wants Taxpayer Bailout for its Transmission Projects

6/30/2017

14 Comments

 
Building five ginormous transmission projects totaling thousands of miles of new merchant lines was a pipe dream.  Utility experts said it couldn't be done.  They were right, it can't.

Teetering on the brink of failure after spending more than $200M of investor cash on his impossible dream, Clean Line Energy Partners CEO Michael Skelly now suggests that the federal government bail out his investors.
The Trump administration could help by pushing for an infrastructure package that would see the government “buying down a portion of the capacity” on big transmission projects so they can enter construction more quickly, or perhaps through an investment tax credit, Skelly suggests.

“All the ideas come down to a temporary underwriting of the project so you can get these things over the top, or some sort of tax mechanism.”
Skelly has finally given voice to his frustration in an interview with Recharge News.
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Skelly suggests that the federal government should buy capacity on his transmission project in order to get it over some imaginary hump that will allow him to start construction.  The federal government isn't in the business of buying unnecessary transmission capacity in order to prop up commercial projects that cannot stand on their own two feet.  While federal power marketers do occasionally purchase needed transmission capacity, they are not forced to do so merely to support the building of bridges to nowhere.  And if the federal government legislated the purchase of transmission capacity by its federal power marketers, it would be creating captive customers to shoulder the risk of this speculative transmission idea that cannot get off the ground on its own merits.  As a merchant transmission project, Clean Line has pledged to the Federal Energy Regulatory Commission that its investors will shoulder all the risk for its projects and that it does not have a captive ratepayer stream of funding.  Merchant projects succeed or fail based on their economics.  If a merchant project is useful, customers will voluntarily purchase its capacity, and the project will come to fruition.  If there are no customers, a merchant project cannot succeed.  Suggesting that the federal government pour taxpayer money into Skelly's projects would create an artificial "need" and economic basis for the project.  Participation by a government customer would not be voluntary.  That's not how merchant transmission works.
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Clean Line has no customers.  Despite Skelly's claim:
Plains & Eastern is “pretty much fully developed at this point”, Skelly says. “We’re now in the commercialisation phase, matching chippers – that is wind developers – with utilities in the southeast.”
He turns around in his next breath and suggests that the federal government be forced into being a customer through legislation or executive mandate.  Obviously, Skelly's efforts to match his chippers with customers isn't working.  It's been 18 months since the U.S. DOE got involved in his project in an attempt to usurp state authority and claim federal eminent domain authority to site the Plains & Eastern Clean Line, and Skelly still doesn't have a customer.  When the DOE agreed to participate in the project in March, 2016, Skelly claimed that he would have his customer agreements sewn up in a matter of weeks, but that has not panned out.

Skelly's other taxpayer bailout idea is federal investment tax credits.  This would give a direct tax credit to project investors, which they could use as cash to pay down their own corporate tax debt.  Let's see... ultra rich 1% Democrats who invested in a renewable energy scheme supported by a Democratic White House want the current Congress to bail them out with tax credits.
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A tax credit is taxpayer-funded cash for its owner.  By eliminating its own corporate tax debt, the investor would have more cash to invest in Clean Line Energy Partners.  Essentially, it's free government money for Clean Line that the investors wouldn't spend otherwise.  It's a way to prop up Clean Line's failing business model with taxpayer funds.  Clean Line's investors pay less taxes?  You pay more to make up the difference.

Where does the federal government get its money?   Out of your pocket.  Every.last.dollar.  There's no such thing as "free" government money.

So Clean Line has been posturing to the Trump Administration for months now, suggesting it is a prime candidate for the President's great, great Infrastructure Plan.  Trump has posited that private investors can belly up to the bar and fund billions in new infrastructure projects in exchange for ownership that creates a revenue stream, or tax credits that allow publicly-owned projects to be built.
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Except Clean Line isn't a publicly-owned project.  Clean Line's rich investors will own the project and the revenue stream, and charge the public a fee to use it.  There's no benefit for the public.  It's nothing short of taxpayer-financed private industry, and it cannot be included in an infrastructure package designed to get infrastructure like roads and public works projects built.  And furthermore, Skelly wants the federal government to be the "private sector investor" who gets his project over the finish line!  I'm pretty certain that's not what Trump had in mind.

Once certain that his transmission projects would be marketable under a Democratic administration, Skelly now fantasizes about a Republican-led taxpayer bailout to prop up his failing company.
“It’s still a bit early to tell exactly what the administration will do to stimulate more infrastructure investment,” Skelly says. “But in terms of the things they’re talking about, with private-sector-led projects, it forms a pretty nice Venn diagram with transmission.”
What kind of a guy uses the words "Venn diagram" to prop up his unsuccessful ideas in the media?
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Is Skelly's dream even logical, or is the stress getting to him?  Why would the federal government fund an infrastructure project that's supposed to be "led by private investors?"

The idea that our current Congress will pour buckets of taxpayer dollars into a wind energy transmission project that has no customers in order to bail it out of its current financial crisis is insane.
14 Comments

Missouri Supreme Court Dashes Hope for Grain Belt Express

6/29/2017

1 Comment

 
The Missouri Landowners Alliance and Block Grain Belt Express are optimistic that the Public Service Commission must again deny Grain Belt’s application, in the wake of a Missouri Supreme Court decision yesterday. The Court denied a petition to review an opinion of the Western District Court of Appeals regarding county commission assent for new transmission lines to cross local roadways. The case, Neighbors United Against Ameren’s Power Line vs. Public Service Commission of Missouri and Ameren Transmission Company of Illinois, earlier this year vacated a conditional permit for Ameren’s Mark Twain Transmission Project that was issued by the PSC before Ameren had received the assent of counties crossed by the project.

Earlier this month, Grain Belt Express, and other supportive parties, had urged the PSC to issue a decision on its transmission line application after the Commission discussed putting the case on hold until the Ameren matter was cleared up by the courts. Grain Belt Express, like Ameren, has not produced county assents from the eight Missouri counties it proposed to cross. The Court of Appeals made it clear that county assent must be submitted to the PSC before a certificate of convenience and necessity may be issued. Without Supreme Court review, the Appeals Court decision is final.

“We celebrate with Neighbors United for their incredible victory for property rights. We would also like to thank all the County Commissioners who have stood with us in our battle for our way of life and against eminent domain abuse,” commented Jennifer Gatrel, spokesperson for Block Grain Belt Express-Missouri.


The citizens’ groups hope the PSC will now quickly proceed to dispose of the Grain Belt Express matter, allowing the people to resume their work and plans for the future, albeit a little lighter in the pockets than before the threat of Grain Belt Express reared its head. The three landowner’s organizations say they have spent approximately $350,000 altogether defending private property rights from the speculative transmission project.

Russ Pisciotta, President of Block Grain Belt Express-Missouri said, “The people impacted by the proposed line have repeatedly spoken out loudly and clearly against the ill-conceived, unnecessary interstate transmission line and now we are watching democracy in action and the system is working.”

Grain Belt Express had initially obtained assents from all eight counties before notifying landowners about its project, however, Caldwell County’s assent was later overturned in court because it violated the sunshine law. Five of the eight counties have also since rescinded their assents, and county commissions have remained steadfastly on the side of local property owners.


“I am very glad that the Missouri Supreme Court has upheld the Appeals Court Decision. This decision gives the County Commissions in our State the right to guard our communities and way of life,” said Wiley Hibbard, Ralls County Presiding Commissioner.
1 Comment

Missouri Sticks a Fork in Grain Belt Express

6/28/2017

6 Comments

 
Yesterday, the Missouri Supreme Court denied a petition to hear Neighbors United Against Ameren’s Power Line vs. Public Service Commission of Missouri and Ameren Transmission Company of Illinois.  The opinion of the Western District Court of Appeals is now final.
Grain Belt's last great hope in Missouri is dashed.

The company has been trying to convince the MO PSC that the Ameren decision wasn't final or binding while trying to extract a favorable decision to issue a permit without county assent.  Now, that just can't happen.

The controversy:  Missouri law requires a transmission company proposing a new line to acquire the assent of each county commission to cross county roads, and to submit those assents to the PSC before a permit may be issued.  That's the law.  In the case of Ameren's Mark Twain Transmission Project, the company had failed to acquire and submit the required county assents.  But the PSC issued a conditional permit that allowed the company to submit the assents later, before it began construction.  Transmission opposition group Neighbors United challenged the timing of the assents under Missouri law, contending that the assents must be obtained before the PSC can issue a permit.  The Western District Missouri Court of Appeals agreed with Neighbors United, and vacated the permit issued by the PSC.  The PSC and Ameren petitioned the Missouri Supreme Court to hear the case, and yesterday the Supreme Court declined to hear the case.  The opinion of the Western District Court is final.

Grain Belt Express finds itself in the same boat as Ameren.  It does not have all county assents needed for a permit.  Grain Belt Express first suggested that the PSC issue it a conditional permit, just like Ameren's, and it would acquire the assents before construction.  The PSC did not take the suggestion, and put the case on hold pending resolution of the Ameren matter in court.  GBE has also taken the position that its project is somehow different than Ameren's and that it does not need county assent.  It has been met with stony silence from the Commission.  The same arguments were made to the Missouri Supreme Court in the Ameren petition, and the Court didn't take the bait, so obviously those arguments aren't valid.

So, the MO PSC doesn't have a lot of options on Grain Belt Express.  It could issue a conditional permit based on GBE's faulty legal arguments, only to have that permit vacated in another expensive and time consuming court battle, or it could give Grain Belt Express a period of time to produce the county assents, and if they can't, dismiss the application.  Or it could yank off the bandaid and deny or dismiss the application right now.  None of these options are any good for Grain Belt Express. 

It is highly unlikely that GBE can obtain needed county assents, even if given eternity to perform the task.  The battle lines have been drawn and the majority of the county commissions have taken an entrenched position firmly behind their constituents.  Unless the constituents change their minds, the commissions aren't budging.

It's hopeless.

Maybe GBE wishes it had treated affected landowners with more respect.  Maybe GBE wishes it had given a little more deference to the county commissions.  But it was blinded by its own sheer arrogance that the people and local governments of Missouri didn't matter and that GBE could simply use state law and political clout to run right over Missourians. 

Alea iacta est... the die has been cast.
6 Comments

What has EEI Done for You Lately, Little Ratepayer?

6/26/2017

3 Comments

 
The Edison Electric Institute is a trade association for investor owned electric utilities.  It's mission and vision:
Our Mission

The Edison Electric Institute (EEI) is the association that represents all U.S. investor-owned electric companies. Our members provide electricity for 220 million Americans, and operate in all 50 states and the District of Columbia. As a whole, the electric power industry supports more than 7 million jobs in communities across the United States. In addition to our U.S. members, EEI has more than 60 international electric companies as International Members, and hundreds of industry suppliers and related organizations as Associate Members.
 
Organized in 1933, EEI provides public policy leadership, strategic business intelligence, and essential conferences and forums.

Our Vision
EEI will be the best trade association.

We will be the best because we are committed to knowing our members and their needs. We will provide leadership and deliver services that consistently meet or exceed their expectations.

We will be the best because we will attract and retain employees who have the ambition to serve and will empower them to work effectively as individuals and in teams.

Above all, we will be the best trade association because, in the tradition of Thomas Edison, we will make a significant and positive contribution to the long-term success of the electric power industry in its vital mission to provide electricity to foster economic progress and improve the quality of life.

That's just a whole lot of business-y sounding jargon for... we lobby, we propagandize, we stick our nose into regulatory proceedings we don't understand, and we do it all for the purpose of increasing investor owned utility profits!

Does any of that sound like something that benefits you, little ratepayer?  No?  Then why are you paying for it in your electric bill?

The Energy and Policy Institute has published a new report detailing how utilities' EEI "dues" end up in electric bills, although ratepayers don't benefit from EEI's activities.

Paying for Utility Politics
How utility ratepayers are forced to fund the Edison Electric Institute and other political organizations

tells the story of the millions of dollars funneled to this organization, and others, by investor owned utilities every year that are, in turn, added to the utility's "cost of service" rate.  A utility's "cost of service" is supposed to include all expenses of the utility necessary to provide your electricity.  The utility also earns a return on its investment for your benefit.  But the Edison Electric Institute doesn't provide any benefits for ratepayers, it only benefits investor owned utilities.  And because some regulators are lazy about examining utility rates, the utility is often successful in passing its expense to fund EEI and other political organizations into the rates you pay.

A utility's political and lobbying expenses aren't a ratepayer burden.  A utility spends its own profits on these things because it cannot be assumed that laws, regulations, and propaganda that benefits the utility also benefits the ratepayer.  Except that utilities have a nasty habit of having little "accidents" where expenses that are clearly political or lobbying find their way into rates.  Sometimes when caught with their hand in the cookie jar, the utility says "oops" and removes the expense from rates.  Other times, they stand there arrogantly stuffing cookies into their gaping maw as fast as they can while stamping their feet and crying that the political expenses really aren't political at all, or that they are entitled to recover them by twisting regulation to make them into something unpolitical.  Honestly, these schmucks are crooked dirty jockeys who drive a crooked horse.
When third-party organizations or public service commission staffs have attempted to protect ratepayers from funding political organizations in recent years, their attempts have met with fierce resistance from the utility companies.
The report's executive summary:
This report explores how regulated utility companies are including their Edison Electric Institute (EEI) annual payments, along with payments to other trade associations, in their operating expenses. The widespread practice forces ratepayers to pay for political and public relations activities with which they may not agree, and from which they do not benefit. It also has the effect of ratepayers subsidizing the political activities of EEI and other trade associations. Utility commissions have a responsibility to protect ratepayers from paying for industry groups and their political work along with public relations activities. But utilities have become adroit at using EEI, and other organizations, to effectively and quietly influence policy while sheltering their shareholders from the bulk of the associated costs. Almost no other political organizations have the luxury of subsidization enjoyed by EEI and other representatives of the regulated utility industry.
You've paid for:

The salary of EEI President Thomas Kuhn, who made $4.1 million in 2015.

EEI's time to make sure that the Federal Energy Regulatory Commission (FERC) “provides compensatory returns on equity that recognize the risks associated with transmission construction."

EEI's education of regulators and consumers advocates on key industry issues, including capital expenditures that highlight the record-high investments in the grid.

Utility dues for The American Gas Association, Nuclear Energy Institute, and the U.S. Chamber of Commerce.

Utility contributions to the Democratic Governors Association; and Republican Governors Association.

EEI's legislative advocacy; regulatory advocacy; advertising; marketing; public relations; legislative policy research; regulatory policy research.

EEI's "litigation efforts".

EEI-sponsored dialogues and forums that brought together FERC commissioners, state policymakers, consumers, Wall Street analysts, and industry leaders to discuss key issues facing the industry.

A "Defend My Dividend" campaign, that secured permanent parity between the tax rates for dividends and capital gains.

A "We Stand For Energy" campaign, to educate and unite more than 250,000 electricity consumers and stakeholders across the country and to advocate for smart energy solutions that ensure electricity remains safe, reliable, affordable, and increasingly clean.


Hunton & Williams LLP and Venable LLP. Hunton & Williams is the counsel for the Utility Air Regulatory Group (UARG), Utility Water Act Group (UWAG), and Waters Advocacy Coalition (WAC). Venable represents the Utilities Solid Waste and Activities Group (USWAG). Since 2008, Hunton & Williams has received $64.7 million from EEI and Venable has received $21.5 million.  These ad-hoc organizations lobby the EPA and other federal interests to roll back clean air and water regulations.

Americans for Prosperity


Congressional Black Caucus/Foundation

Thomas Alva Edison Foundation

American Legislative Exchange Council

EEI's “Lexicon Project,” an opportunity for utilities to assume an “offensive posture” on energy policy and to rebrand the electric utility industry and overcome the negative perceptions consumers have about the lack of progress utilities have made on renewable energy and environmental issues.

American Coalition for Clean Coal Electricity.

There's much, much more in the report, so read it for yourself.

The report recommends

The evidence in this report reveals that EEI is primarily and inherently a political organization, and that much of its work targets policymakers throughout all levels of government to build influence, specifically for their member companies but also for the industry at large. While many states have their established practices of how to code trade association dues, they should revisit outdated guidelines due to the nature of EEI’s modern activities to ensure that they are adequately protecting ratepayers. Throughout the past three decades, some regulators and consumer advocates have acted to protect ratepayers, but scrutiny has waned dramatically. Precedent exists for public officials to act in every state to investigate whether or not EEI’s inherently political work ought to be funded by ratepayers.
Your public utility commission and consumer advocate owe it to you to pick through rate filings and demand that the utility prove ratepayer benefit for the EEI dues it pays, along with other "dues" it pays to political organizations and other groups whose mission is to support investor owned utility profits, not consumer interests.

Thomas Edison would probably be ashamed of these crooks.
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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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