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Allowing Comment is NOT Consultation

4/26/2017

2 Comments

 
A recent "news" story says that Professor Jim Rossi of Vanderbilt Law delivered a presentation entitled “Federalism Battles in Energy Transportation.”
To illustrate these conflicts in energy transportation, Professor Rossi used two transportation examples that differ in geography, product transported, governing body historically responsible for regulation, and often in public perception. Despite these differences, both means of transportation face legal hurdles that require consideration of federalism principles. The examples include the Constitution Pipeline, a natural gas pipeline segment connecting Pennsylvania to New York, and the Plains & Eastern Clean Line Project, a direct current transmission line transporting wind energy from Oklahoma, Kansas, and Texas to Tennessee, Arkansas, and the rest of the south and southeast.

After presenting these conflicts, Professor Rossi engaged the audience in discussions about the need for future collaboration between the federal and state authorities and the impact of the new administration on these battles.
So, what exactly did Rossi present, and what's in his upcoming paper?  You can get a copy of his draft here.  Go ahead, read it.

I read it.  It seems to me that he concluded that the U.S. DOE's Section 1222 evaluation process for Clean Line's Plains & Eastern Clean Line project provided an opportunity for states to consult on the project, and that the DOE carefully considered the comments and concluded that the benefits to the states outweighed the detriments caused by the projects.

Hahahahahahaaaaa!  I think that's ridiculous!

DOE's Section 1222 consideration process was a tone-deaf, double time march to project approval.  Comments from states and other stakeholders were batted away in their entirety in DOE's analysis.  DOE accepted and supported Clean Line's contentions completely, did no independent analysis of statutory criteria, used outdated studies cited by Clean Line, and made specious conclusions that all comments opposing the project were wrong, and that everything in Clean Line's application was factual and persuasive.  DOE's Section 1222 process for Clean Line did not consult with affected states.  It merely allowed them to comment, and then disparaged every point made with spurious excuses.  DOE's failure to consult with states was slapped down by the 9th Circuit in 2011 in California Wilderness Coalition v. US Dep't of Energy, where the court found that the opportunity to comment was not the same as consultation.  To hypothesize that DOE's allowance for states to comment on its Sec. 1222 process equates to "consultation" makes a serious legal error.

It is not true that DOE's Section 1222 process created a "bulletproof" method for state/federal collaboration.  In fact, a lawsuit against the DOE was filed within months of its agreement to participate in the project.  The lawsuit contains a myriad of claims, such as failure to provide due process to affected stakeholders, failure to meet Section 1222's statutory criteria, failure to recognize Sec. 1222's preservation of state siting authority, non-statutory criteria added to DOE's RFP, and, yes, questioning DOE's authority to use eminent domain to condemn property for a Sec. 1222 project, just for starters.

To hold DOE's Sec. 1222 process up as a shining example of "consultation" with states is ludicrous!  DOE concluded that "benefits" of the Clean Line project outweighed the "unavoidable impacts" in states crossed by the project and told states that the project was beneficial to them.  It mattered little that the states did not agree the project was beneficial.  None of the data used was open to cross-examination in a fair and impartial  hearing.  DOE gave itself great deference to make a finding in an opaque manner, without true state consultation.  DOE used Clean Line's sponsored studies to conclude economic and employment benefits to each state, as well as Clean Line's estimates of tax benefit.  Then it considered "payments to landowners" for easements to be a "benefit."  Payments for easements are compensation for something taken from a landowner.  It is not a financial windfall, or a "benefit."  It is purely compensation purported to make a landowner whole.  It is not a "benefit."  DOE then compared its concocted "benefit" to its own rendition of "unavoidable impacts" that had not been "mitigated," to inform the states that they would receive "benefits."  Mitigation, again, is a compensatory action.  It presumes that the taking of something can be made whole by the substitution of something else of value.  Say a company wanted to turn the Grand Canyon into the world's biggest swimming pool... it could "mitigate" the impact of the loss of the Grand Canyon by creating a new park in another canyon and using that to replace the Grand Canyon.  That's the definition of "mitigating" impacts.  It presumes that everything is for sale at the right price.  Mitigation efforts rarely, if ever, actually make up for what was taken.  Mitigation is a poor attempt to compensate for a loss.  Mitigation also presumes a project must proceed, and it's only about how much it costs.  The DOE approached the Sec. 1222 process with a pre-disposition toward approval. Instead of approaching it as a matter of whether or not to build, it approached it as a fait accompli that it would be built with the DOE-approved compensatory measures in place.  This is the same way FERC currently approaches gas pipeline projects.

Will pipeline opponents be fooled into believing they could have more influence on projects by doing away with the current limited veto power of the states and replacing it with a jacked-up "consultation" process that presupposes that a project will be approved at the right price?

FYI, pipeline opponents, DOE's Section 1222 approval process makes FERC's current gas pipeline approval process look like the epitome of democracy.  Don't fall for it!

I'm not sure what Jim Rossi's purpose is with this upcoming research paper, but I think it's much too facile to convince pipeline opponents to toss their last weapon into the scrap heap.  Rossi and his co-author have written numerous papers championing federal siting and permitting authority for electric transmission in the past.  So far, their arguments have been unconvincing to Congress.  Any serious effort to usurp state authority to site and permit electric transmission is going to be met with a firestorm of opposition.

As someone who both observed and participated in DOE's Section 1222 process, I think this research paper treads dangerously outside the realm of reality.
2 Comments

Guess Who's Now a Wind Company?

4/21/2017

6 Comments

 
So, hey, remember this?
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"Clean Line Energy is independent from any existing or planned wind energy generation."  Or so they said.

Except now...
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Clean Line Energy has a brand new project on its website, the Mesa Canyons Wind Farm.  It is owned by Clean Line Energy.  So now they're suddenly a wind company?

What happened?  Transmission business not going so well, Clean Line?  Trying to find refuge in your former glory days developing wind?  Are you going to "develop" wind projects to serve all your proposed transmission lines now, since you've been so unsuccessful at finding independent customers to buy your transmission capacity?  Why not be your own customer?  Kismet!

Honestly, the malarkey surrounding Clean Line is getting pretty thick.  Grab a shovel and let's get to work...

How did this happen, anyhow?

Last time you looked, Clean Line was developing five transmission projects, right?  Three heading east, and two heading west.  Clean Line wasn't a wind company. 

One of Clean Line's western projects, the Centennial West Clean Line, has been ineffectually spinning its wheels for years.  Now, all of a sudden, Clean Line is going to develop a wind farm that will purchase  transmission capacity on its Centennial West Clean Line.

Clean Line says:
Members of the Southern Corona Landowner Association (“Corona Landowners Association”) have executed long-term lease agreements for the development of Mesa Canyons on their properties. The Corona Landowners Association was formed in 2007 to facilitate wind energy development in the area.
It doesn't exactly say they executed a lease agreement with Clean Line.  In fact, a little poking around on Google informs that the Corona Landowner Association that was formed a decade ago to market land to wind companies was eventually split into two groups, the Northern group, and the Southern group. 

The Northern group signed with Shell Energy.  Shell Energy is a partner on the proposed SunZia Transmission line.  SunZia has announced an anchor tenant for its transmission capacity, San Francisco-based Pattern Energy.  So that bunch has been happily developing their transmission project and wind farm ever since, and they actually got enough work done to qualify for the full production tax credit last year.  Of course, not all is rosey.  There is much discontent among landowners forced to host the transmission line, because they're not getting the kind of money the landowner group is getting for leasing their land to a wind company.  But that's really not of interest to me today.

However, the Southern group signed with a company named FirstWind.  FirstWind sold its wind assets to SunEdison in 2015.  SunEdison filed for bankruptcy last year and sold their wind assets to NRG.  And next, Clean Line is announcing they're a wind company again.  But I notice Clean Line doesn't claim to own that lease... and where would Clean Line get money to buy a wind lease from NRG right now anyway?  And where would Clean Line get more than a billion dollars to "invest" in building a wind farm?  They've burned through hundreds of millions of dollars of investor cash trying to get customers for any one of their un-built transmission ideas.  Clean Line has no revenue.  So, maybe NRG still owns the lease and there's a deal with Clean Line to "develop" it?

How might that deal have happened?  NRG isn't in such great shape itself.  NRG fired visionary CEO David Crane in 2016.  NRG got a new CEO.  And in February of this year, there was another dustup where members of NRG's board were ousted in favor of "activist investors."  Who now sits on NRG's board?  One is C. John Wilder Jr., described as Executive Chairman of Bluescape.  And what is Wilder going to do?
The agreement also establishes a new committee on the board that will review NRG's initiatives, asset portfolio, capital structure and broad strategic plans, and make recommendations on those to the board, according to the SEC filing. Wilder will chair that committee.
And, hey, Mesa Canyons Wind Farm dot com bought their dot com on the day after Wilder took his seat on the board.  What a coincidence, right?  You can look it up here.  Go ahead.  I'll wait.

Bluescape... Bluescape... where have I heard that name before?  Oh, I know!  Bluescape is the company that pumped a $50M investment into Clean Line in 2015.

Even with all that money from Bluescape, Clean Line still hasn't managed to get any of its projects built.  Maybe Wilder can save his investment by getting struggling NRG involved?  What a great idea!   Ya know, if Clean Line can change itself into a wind company, and recognize some revenue, maybe it won't have to shut down while its transmission projects flounder and die... and maybe Clean Line can claw its way out of the toilet and save all the investors some happy cash?  Well, unless Clean Line manages to botch up its new wind company as bad as it botched up its transmission business, and they all go down the potty together...  Clean Line, Bluescape, and NRG.

Sniff, sniff... hey, do you smell something?  It smells like an overflowing outhouse on an August afternoon in here.  Gotta go get some fresh air....
6 Comments

Finally, Someone Issues a Report Card to The American Society of Civil Engineers

4/19/2017

0 Comments

 
New from the guy who brought us "The Rise and Fall of Big Transmission" (see also R.I.P Big Transmission here), is an opinion on the annual "Chicken Little" report on infrastructure from the American Society of Civil Engineers -- Electric Infrastructure: Sky Keeps not Falling.

The ASCE report has been pure crap every single year, and I'm not sure why anyone even pays attention to it anymore.  It is concocted by a trade group of engineers whose paychecks depend on the need to build more infrastructure every year.  If anyone got an "A," there would be a lot of engineers in the unemployment line because there would be little need to build more infrastructure.  This report is sort of like if Hershey's issued an annual report on the need for chocolate, and the report was authored by women.  We know that a day without chocolate is like a day without hope, so therefore we need chocolate every.single.day.  And talk about your coincidences, Hershey's sells chocolate (not the best chocolate, but when a chocolate emergency strikes, it's better than a bag of Skittles).  The ASCE report is self-serving dreck designed for doomsayers and vapid public officials without an expert staff to tell them the truth about infrastructure.

Speaking of telling the truth, it probably isn't real good for business if an energy lawyer actually tells the truth.  But yet, Huntoon persists.  His clients must be brave souls.  Gotta admire that!

Huntoon says everything in the ASCE report is wrong.  That's a pretty wide characterization, but sadly it's true.  It starts with this:
For starters, there is this claim: “With more than 640,000 miles of high-voltage transmission lines across the three interconnected electric transmission grids … the lower 48 states’ power grid is at full capacity, with many lines operating well beyond their design.”

The fact is that 0 (zero) transmission lines are being operated beyond their design capacity. The grid has been and continues to be designed and constructed to cover projected peak demand years in advance. And every line is operated within its design limits. The ASCE claim is alarmist and wrong.
(And so is Clean Line's claim that our grid is so congested that no new renewable energy generation can be built without it's "clean" lines -- and for the same reason!)  And don't miss ASCE's claim that we "need" new processes to get "needed" transmission  lines built for renewable energy.

And then Huntoon tears up the ASCE claim that lack of new infrastructure causes blackouts.

The ASCE habitually conflates the transmission system with the distribution system.  Most outages are due to faults on the distribution system, not the transmission system.  When the rare transmission failure happens, though, more customers may be affected.  But transmission is designed to provide contingencies in the event of transmission failure -- loads are switched to other transmission lines and we don't even notice a problem has occurred.  The distribution system lacks this kind of contingency, so if a tree falls on the line serving your neighborhood, you're in the dark.

What we may need to do is make upgrades to the distribution system, which is sorely neglected by investor-owned utilities who would rather put their cash in the transmission system because it pays higher returns on invested capital.  So we've got utilities pursuing expensive transmission lines to nowhere, while distribution lines are rotting on the pole.

The ASCE report card is an industry-influenced, uninformative, biased joke.  Huntoon suggests that we give the ASCE report a D+.  I think that's much too generous.  I give them a U for useless.
0 Comments

Clean Line Energy Partners is not a Public Utility

4/15/2017

0 Comments

 
The best part about traveling is coming home and catching up on your reading.  Especially when it's a lot of reading of legal briefs on transmission line cases.  Reading a whole bunch of briefs on different Clean Line projects in different states, and in different stages of the legal process, made one thing abundantly clear.  Clean Line Energy Partners is not a public utility.  None of its projects are public utilities.  Nor can they ever be public utilities.

How else to explain finding the exact same arguments before both the Illinois Supreme Court, and the Missouri Public Service Commission?  Two different projects, two very different processes.

The Illinois Farm Bureau's brief at the Illinois Supreme Court cuts right to the chase:
"What Rock Island is asking the Commission to do is grant it a CPCN so it looks like a 'public utility' for purposes of condemning private property to build its line, while at the same time it plans to offer only a token percentage of that line's capacity for 'public use'. The transmission service that Rock Island plans to provide on its transmission line does not meet the public use standard under Section 3-105 of the PUA." (R.V27, C6629).
These are the words of the ICC Staff at the close of a five day evidentiary hearing at the
Commission on Rock Island's Verified Petition. Rock Island is not a public utility, and it does not commit to serve the public. Despite the express language of the PUA, Rock Island, as a non-utility startup company, sought a CPCN from the Commission for which it is not statutorily eligible. Rock Island's public policy arguments regarding an apparent desire for an expansion to the statutory definition of''public utility" should have been, and still can be, made to the legislature.
Clean Line is trying to shoehorn a square peg into a round hole.  It only wants to be a "public utility" so that it may be granted eminent domain authority.

The same basic argument shows up in the Initial Brief of Show Me Concerned Landowners before the Missouri Public Service Commission:

Grain Belt Express is a merchant transmission company. It is proposing to build a participant funded transmission line. As such, neither the applicant nor the proposed project embody the business characteristics the Legislature authorized this Commission to regulate.

The Court recognized that when a private business enters into special contracts upon its own terms and not at a regular rate, there is not only no need for the Commission to regulate, to do so would be a violation of the constitution. The purpose of regulation is to bring the power of government to bear on a common carrier service. Private initiatives not devoted to the public use of all do not justify the comprehensive regulations dictated by the Public Service Commission Law. Stated another way, when facilities are not devoted to a public use, there is no need for the Commission. That is the situation before the Commission in this Grain Belt Express case.

Two different cases.  Two different states.  Same basic precedent.

But wait... let's add a third state!  Because that's basically what Arkansas said when presented with Clean Line's Plains & Eastern project back in 2011.
The issues presented by this case are twofold: (1) whether Clean Line fits the statutory definition of an Arkansas “public utility” and is entitled to a CCN to provide public utility service in the state; and (2) if so, whether Clean Line is entitled to exemption from certain public utility statutes. For the reasons stated more fully below, the Commission finds that Clean Line does not meet the statutory definition of a public utility at this time.  The Commission’s ruling on the first issue moots the necessityof ruling on the second.
The Commission is a creature of the General Assembly, and it performs a legislative function in regulating all public utilities. Bryant u, Arkansas Pub. Sew. Comm‘n, 46 Ark. App. 88,877 S.W.2d 594 (1994); Sw. Bell Tel. Co. v. Ark. Pub. Serv. Comm’n, 267 Ark. 550, 593 S.W.2d 434 (1980).  The Commission’s statutory mandate extends to and includes “all matters pertaining to the regulation and operation of all ... electric lighting companies and other companies furnishing gas or electricity for light, heat, or power purposes.” Ark. Code Ann. 23-2-302.

The Commission’s decision in this case turns on the statutory definition of a “public utility” found in Ark. Code Ann,  23-1-101(9)(a) cited above. Although Clean Line’s presentation of its case was strong on policy considerations and certainly Clean Line worked hard to analogize its case to that of the SPP RTO, the Commission’s authority cannot exceed that which is delegated to it by the Arkansas General Assembly. The “public utility” definition requires “owning or operating in this state equipment or facilities for...transmitting...power to or for the public for compensation.” Ark. Code Ann. 23-1-101(9)(A).

The Parties’ legal filings and opening arguments at the December 7 hearing discussed to varying degrees what each of these key phrases means, but the Commission is not convinced the totality of the evidence satisfies this statutory threshold. Recognizing, as Clean Line pointed out, there is some circularity involved in the fact that Clean Line cannot own or operate regulated major utility facilities pursuant to Arkansas law in this state without first being declared a public utiliity, in isolation, this portion of the statute is not determinative of Clean Line’s utility status. However, read in tandem with the facts that the transmission of the power must also be “to or for the public for compensation’’ when Clean Line, to date, has no contracts for public utility service with any utility, including Arkansas utilities, and there also can be no transmission of power at this time, the Commission is not prepared to approve Clean Line’s CCN Application.
So Clean Line doesn't meet the definition of public utility in at least 3 states.  But nevertheless, Clean Line dolled itself up and presented as a public utility to numerous state regulatory agencies.  Even when a state is initially fooled by Clean Line's public utility costume, the courts have not been tricked.

I think we're on to something here...
If Clean Line Energy Partners is not a public utility, then the company can never use eminent domain to condemn land upon which to build its projects.  I think this is the simplicity we've all been searching for over the past five years to explain why CLEP is different from other transmission lines, and why it should never be granted eminent domain authority.

Sure, we've talked about the company being a private, for-profit enterprise, but so are other investor-owned utilities who build transmission.  We've talked about CLEP's failure to vet its plan at regional transmission organizations, but that in and of itself isn't necessary to build transmission.

There's absolutely nothing stopping CLEP from building its projects on voluntarily negotiated rights of way, or having voluntarily negotiated rights of way and committed customers in hand when applying for public utility status from any individual state regulatory authority.  Except CLEP can't do that.  CLEP won't do that.  CLEP has applied in various states to be granted public utility status with nothing but a business plan.  CLEP tells state regulatory commissions about its plans in the future tense.  Someday it will own utility property.  Someday it will have customers.  Someday it will negotiate rates with customers.  Someday it will get financing.  Someday it will hire employees with the expertise to build transmission lines.  Someday.  Someday.  Someday.  CLEP wants to be granted the rights of a public utility now without any of the responsibility that comes with it. 

CLEP needs the state regulatory process to grant it eminent domain authority to assemble rights of way.  But in order to be granted that authority, CLEP must be a public utility.  And it's not.
 CLEP is a merchant transmission company.  Its projects are extraneous transmission lines not needed for reliability, economic or public policy purposes.  The sole purpose of CLEP's projects are profit.  Merchant transmission projects aren't new.  There are several of them in existence.  However, those merchant transmission projects have customers.  They were proposed and built with certain customers in mind.  Clean Line is pure speculation... build it and they will come (well, maybe, but not so far).  Clean Line's business plan is unformed and unripe.  It doesn't work as proof of public utility status.

Clean Line's "merchant" business model does not comport with "public use" definitions under state law.  Negotiating rates for service with private parties does not make the service available to the public.  Neither does auctioning off small bits of service to the highest bidder at auction.  Merchant projects don't offer service to the public -- they offer service to private parties who can pay the most for service.

ComEd's brief before the Illinois Supreme Court describes how merchant projects like Clean Line fail the test of public use.
Rock Island’s plan offers the public the nondiscriminatory right to bid for transmission capacity. But it does not offer the public the nondiscriminatory right to use transmission capacity. Under well-settled authority dating back a century, Rock Island’s plan does not meet the “public use” requirement.

As a threshold matter, it is important to clarify what this means. As Rock Island’s witness makes clear in his testimony, the open season auction will be open to the public on non-discriminatory terms. In other words, any member of the public can bid. But there is a difference between being able to bid for a service through an auction and being able to actually use a service at a tariffed price. When Christie’s auctions a painting, any member of the public can bid on non-discriminatory terms; but only the winner takes the painting home.

The ICC points out that the open season will be “fair, transparent and non-discriminatory.” ICC Br. 25-26. ComEd agrees. But this simply means that the auction process will be fair, and that all bidders would have the same opportunity to bid. It does not mean that all members of the public can use the service on equal terms. Those who cannot pay the auction price are left with only the chance of receiving non-firm service and are expressly subordinated to anchor tenants and auction winners. Non-auction winners who do not, or who cannot use non-firm service, are left completely empty- handed.
A merchant transmission project with no customers does not meet the legal definition of public utility.

Show Me sums it all up in its brief:
Grain Belt Express is proposing a duplicate service to the existing, well-established transmission grid. It is seeking to provide discriminatory service to one particular customer to obtain this Commission’s approval. It is proposing as a merchant a service that is participant-funded. It wants to maintain that merchant status, free from the obligations imposed on an “electrical corporation” by the Missouri Public Service Commission Law. This unregulated utility will create many problems that the Missouri Public Service Commission Law was designed to thwart, such as destructive competition, damage to property from duplicative facilities, and the exercise of market power in a traditional monopoly service. Grain Belt is seeking the power of the state of Missouri granted by this CCN without any of the obligations imposed by the law. Show Me is concerned with one enterprise whose property is not devoted to the public service using the land (I think he meant to say "laws") of the state, particularly the eminent domain power of the state, for their own business interests. It is not just and it is not in the public interest of the state of Missouri.
Go away, Clean Line.  You're not a public utility.
0 Comments

Democracy in Action (Ut-oh, FirstEnergy!)

3/31/2017

10 Comments

 
New Jersey BPU Administrative Law Judge Gail Cookson called a public hearing on FirstEnergy affiliate Jersey Central Power & Light's plan to build a new transmission line in Monmouth County "democracy in action" on Wednesday night.

More than 3,000 people showed up for the hearing at a local community college over the course of the evening, all of them opposed.  The comments were heart felt and heart wrenching.  The people told their stories to the judge.  The people rocked this hearing!

Everyone was wearing a sticker.  The stickers said, "My name is..." followed by that particular person's distance to JCP&L's proposed transmission line.
 Among the sea of red t-shirts, jackets, hats and signs were small, blue stickers, each handwritten with a different number. It was a description, in feet, of how far their home was situated from a proposed JCP&L power line poles. For some, it was a couple thousand feet. For others, it a few hundred feet. And there were those whose number was expressed in two digits.
That's how these people may be seen by FirstEnergy and regulators... just a number, a statistic, a casualty of a project the company insists must be built.  Putting faces and personal stories on these numbers made it real.  Brilliant!

But let's go back to those numbers... two digits?  People will be living less than 100 feet from power line poles if this project is built?  How could that happen if a transmission line is properly sited on sufficient right-of-way?  JCP&L's proposed project is 230kV.  A quick google search shows that "typical" right-of-way width for 230kV transmission lines is 100-160 feet.  Utility American Electric Power gets a little more specific in its "Encroachments on Transmission Rights of Way" document.  AEP says typical rights of way for 230kV lines are 120-150 feet in urban areas, and 150 feet in rural areas.  AEP also cautions:
Buildings, building extensions and additions (homes, businesses, garages, barns), swimming pools, above ground fuel tanks, tall signs or billboards, tall trees, obstructions and mounding of soil in the right of way are encroachments that are prohibited.
Transmission lines are usually sited in the center of the right of way, with equal distance on either side from the pole holding conductors, to ensure proper clearance for the line.  Therefore, a 120 ft. right of way would create a buffer zone of 60 feet on either side of the transmission pole.

Now let's look at JCP&L's proposal.  The company proposes:
[a] minimum of a 60 ft. wide corridor will be cleared (30 ft. from either side of conductor or approximately 45 ft. from centerline of the poles on the rail side and 15 ft. from centerline of the poles on the opposite side/vacant side of pole).
JCP&L believes it can site its project on a 60 ft. right of way, half the size used by other utilities for a project of that voltage.  And JCP&L won't even center its project in the narrow right of way.  It allows 45 feet clearance between the centerline of the poles and the commuter trains passing along nearly directly underneath 230,000 volts of electricity on one side, and a mere 15 feet clearance between the centerline of the pole and the backyards of thousands of people on the other.  The pole itself is at least 8 feet wide, so the distance from the edge of the pole to a person's backyard may actually be around 10 feet.  Here's what that looks like:
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Go here to view the entire slide show in a larger format, as well as a JCP&L photo simulation of what the finished product would look like.
Lots of those residential properties have sheds, pools, and other backyard structures located near the property line that would ordinarily be within a typical sized right of way.  The properties also have vegetative buffers abutting the commuter train right of way.  Here's how JCP&L plans to deal with all that stuff within feet of its new monopoles.
JCP&L will clear the NJT and JCP&L ROW to the specified width in accordance with the FirstEnergy Initial Clearing of Transmission Lines Specification and the FirstEnergy Detailed Property and Provision List. Trees located outside the ROW which are deemed Priority Trees shall be removed. Priority Trees are defined as trees located adjacent to transmission corridors that are dead, dying, diseased, structurally defective, leaning or significantly encroaching, where the transmission facilities are at risk of arcing or failing should the tree or portions of the tree (1) fall into or near the transmission facilities; or (2) grow into or towards the transmission facilities. JCP&L will obtain the necessary rights from applicable property owners before removing trees and vegetation both on and off the ROW.
JCP&L proposed a "vegetation right of way" over the residential properties, and if landowners don't voluntarily agree to this violation of their backyard sanctity, JCP&L proposed using eminent domain to obtain a legal right to encroach upon the residential properties.

Watch a video featuring views of the actual rail right of way here.  Does it look like there's room to install a transmission line on that right of way?  It doesn't to me.

JCP&L's plan is insane!  This isn't your typical "not in my backyard" reaction to a transmission line. 

And consider that the "violation" this project is supposed to fix is rather minor -- to provide a third back up in case existing lines fail.  There has to be a better way!

What were you thinking, JCP&L?  It's only a 10-mile line... it won't gather much opposition... and these folks already live next to a set of train tracks.  They won't notice or care?

They do care, very much.  Opposition has been huge and fierce.  FirstEnergy's usual playbook tactic of creating the appearance of support for a transmission project to "balance out" opposition before regulators has massively failed.  At Wednesday night's public hearing, not one person giving comment supported this project.  JCP&L said,
“This meeting tonight was to hear what the public had to say,” said JCP&L spokesman Ron Morano. “We elected to not have any supporters speak at this event.”
How is it that JCP&L controls all public support for its project?  If JCP&L controls support, than it's not truly independent support, it's paid advocacy -- people acting as puppets to spew JCP&L talking points.  And this lack of grassroots support came after JCP&L spent buckets of money on door-to-door petition gatherers.
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And misleading mass mailers with postage-paid return cards
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And yet not one person was inspired enough to show up at the public hearing to voice support for this project.  JCP&L told them not to come.

I'm having a hard time believing that.  Did JCP&L waste all this time and money trying to buy advocacy only to submit a sanitized list of names of "supporters" to the BPU at a later date?  Or did the BPU finally call JCP&L out on all this nonsense and suggest that it not "elect" to have its supporters speak at the public hearing for fear that it may cause a riot?

So, public hearing safely in the can.  JCP&L lost big time in the court of public opinion.  Was democracy in action enough to sway the judge to recommend modifications to, or outright denial of, JCP&L's project?  Time will tell.  Formal evidentiary hearings before the judge begin next week.

You can follow along to find out the ultimate disposition of this horrific utility plan by liking Residents Against Giant Electric (RAGE) on facebook here and here.  And you just might find yourself wanting to join in this community's RAGE against FirstEnergy.
10 Comments

Smells Like Broken Dreams and Bitter Lobbyist Tears

3/30/2017

6 Comments

 
I'm sure you know one... a member of the "Good Old Boys' Club."  I'm talking about a well-fed, middle-aged white guy who may actually use the phrase, "Do you know who I am?" on a regular basis.  He doesn't appear to be particularly bright or industrious, and has absolutely no self-awareness or empathy, but he's managed to claw his way into a position where he makes his living by being connected to other old white men and selling his influence to outsiders who want to make a buck.  What happens when that special, privileged world spits out its own?  Who doesn't love a little schadenfreude?

Remember the "Infrastructure List" that has been gushed over by members of the Good Old Boys' Club and their media lackeys for the past three months?  Turns out it's been kicked to the curb, along with the guys who prepared it, and a new crew of infrastructure critters has been let loose in the Washington Swamp.

No wonder Norman Anderson was having a public meltdown last month.  I think maybe he didn't appreciate being ignored by an administration he thought he had eating out of his hand.  Awww... life isn't fair, is it, Norman?  Let's sing together...
*sniff, sniff*  Could someone hand me a tissue?

The Charlotte Observer published an in-depth report covering the "Infrastructure List" and the shady way it was compiled and pushed by a group of guys who are now out of favor with the Trump administration.
When Donald Trump and Mike Pence met this month to discuss a promised $1 trillion infrastructure plan, the Cabinet Room was filled with half a dozen billionaire executives, from Tesla’s Elon Musk to Steve Roth, a New York developer and longtime friend to the president.

One person who wasn’t there? The man who worked for months to line up priority infrastructure projects for the Trump transition team.

Just a few weeks earlier, Dan Slane had been jetting around the country — on his own dime — to meet with governors, contractors, investors, labor union officials and others eager to influence Trump’s infrastructure plan. He developed a 50-project proposal filled with exactly the kind of “shovel-ready” investments the White House wanted – the kind that needed regulatory relief, not federal dollars.

But as Trump’s attention turns to infrastructure after suffering defeat on his first policy priority, the White House will not even acknowledge Slane, except to say he has “no official or unofficial role” in the administration. He says his infrastructure plan, and indeed his very connection to the president, has become the victim of a power struggle for control of this big-ticket infrastructure agenda between Peter Navarro, a Trump loyalist and economic populist who advised his campaign, and Gary Cohn, a former Goldman Sachs president who now runs the National Economic Council.
Who is Dan Slane?  A quick google search shows he's been working with Peter Navarro on a film called "Death by China."  Apparently these guys believe that trade with China is killing our economy.  Slane ought to know... apparently he moved his wood business to China to collect a 17% profit.  I guess that must have scarred his psyche (while fattening his bank account) so now Slane is anti-China.  Apparently the whole infrastructure thing stems from the fact that China has been investing in its infrastructure lately, and we gotta, you know, keep up with China.  But how does Dan Slane connect with Norman Anderson?  The Charlotte Observer reveals:
Anderson’s company had compiled a list of 100 top infrastructure projects with input from senior-level investors, engineers and developers. The list would have been offered to whichever presidential candidate had won in November, Anderson said.

A week after Trump’s unexpected win, Anderson found a white paper online that Navarro and now-Commerce Secretary Wilbur Ross had written for the Trump campaign. It proposed tax credits to fund infrastructure. He emailed Navarro, and offered some suggestions.

“Navarro asked Dan to talk to me the next day,” Anderson said.

Slane, who was working without a staff, asked Anderson to help him screen a list of projects Navarro wanted for the administration. Anderson in turn hired Boston Consulting Group to analyze how many direct and indirect jobs each project would create.
So, how did this list get presented to the media as a Trump administration list, and how did a project get on Slane/Anderson's list in the first place?  The Charlotte Observer explains how the Good Old Boys' Club gladhanding worked...
Playing the liaison

Leaders at the state and local level, and executives at the National Governors Association, thought they had been working with the White House, through Slane.

Paul Aucoin, executive director of the Southern Louisiana Port, said he assumed Slane was a shoo-in for a White House infrastructure job when he met him at Anderson’s offices in Washington in December.

Aucoin made the trip to DC to promote his port and try to secure federal assistance to dredge the mouth of the Mississippi River.

The meeting with Slane had been arranged for Aucoin by the public relations firm of Gary Meltz, a former aide to Democratic Rep. Eliot L. Engel of New York.

Slane introduced himself as a member of the Trump transition, and Aucoin made his pitch.

Slane promised to get the dredging project on the list he and Anderson were compiling for the transition.

“They were very receptive, they got it, they understood what I was saying, they asked all the right questions,” Aucoin said. “It wasn’t like I was talking to a wall. I was finally talking to some one who understood what I was trying to say.”

Later Slane would visit the port and meet with Louisiana Gov. John Bel Edwards. He reassured Edwards and Aucoin that congressional Republicans would pledge money to the project from the Harbor Maintenance Trust Fund. That promise that has yet to be fulfilled.

Aucoin said he’s since hired a lobbying firm in Washington that was working on getting him a meeting with Gribbin.

“It was a blow for us to lose Dan,” Aucoin said.
Let me get this straight... a PR firm with connections made introductions between an entity with a need for a project and some guys who presented themselves as part of Trump's team?

So when Clean Line's Mario Hurtado said:
"When the Trump campaign was looking at infrastructure, we thought it was a good thing to mention. We're just happy to be part of the conversation."
What he really meant was that Clean Line paid a PR firm to make the introductions between Clean Line, Slane, and Anderson, in order to "mention" putting the company's Plains & Eastern Clean Line project on the infrastructure list?  Mario actually did not bump into these guys in the grocery store.  :-(  It actually cost Clean Line money to buy their way onto the Slane/Anderson list.  Guess what, Clean Line?  Looks like you've maybe been taken, and you're really not on Trump's favored list after all.  Even the union's infrastructure wish list (where all three of CLEP's eastward bound projects showed up) was a Slane/Anderson product that Trump now seemingly wants nothing to do with.
Sean McGarvey, president of North America’s Building Trades Unions, said his organization consulted with Slane on his plan. His union delivered to the White House its own list of priority infrastructure projects in February, after meeting with Trump.

“The way Dan framed it was really good because Dan took projects that had all funding but lacked permitting or some who had permitting,” McGarvey said.

“He did a lot of thoughtful work on the initial ready-to-go, out-of-the gate stuff,” he said. “The projects that Dan was talking about really don’t require a new infrastructure bill. Those are ones that exist, that are both private and public, and have the three elements you need: the financing, the engineering, and permitting. And some of them will happen this year.”
Hey, Good Old Boys' Club, are you paying attention?  Pull up a desk and put on your listening ears.  You could learn something...

Clean Line projects don't have financing!
What they have is a plan to raise financing.  Clean Line's plan requires them to contract with future customers to create a revenue stream that Clean Line can use as evidence to secure financing.  Clean Line doesn't have customers.  Clean Line doesn't have a revenue stream that can support financing.  There is nothing a Trump administration (or the Good Old Boys' Club) can do to create captive customers for Clean Line's projects.

Clean Line doesn't have complete engineering!  What they have is a plan to complete engineering once permitting is complete.  Clean Line has no revenue.  None.  It's living high on investor development cash right now.  Engineering is a construction cost that happens after a project is fully permitted and financed.  There is nothing a Trump administration (or the Good Old Boys' Club) can do to finance final engineering for the Clean Line projects.  Federal money would invalidate the project's merchant transmission status with the Federal Energy Regulatory Commission that allows them to negotiate rates with willing customers (see financing, above).

Clean Line doesn't have permitting completed for any of its projects!  The Plains & Eastern project is the subject of a lawsuit in federal court where the U.S. DOE's preemption of state siting authority in Arkansas has been questioned.  The statute DOE used to run over Arkansas  plainly says it does not affect any requirement of state siting laws.  Although this case has yet to be decided by the court, it's not looking good for Clean Line.  Expect that Clean Line shall have to comply with Arkansas state siting laws for its project.  The Rock Island Clean Line project application for a permit has been withdrawn in Iowa.  Its permit in Illinois has been vacated by the Appellate Court.  It has no permits whatsoever right now.  The Grain Belt Express project's permit in Illinois is on appeal, and the project still needs a permit from the Missouri Public Service Commission.  A recent Missouri Court of Appeals decision prohibits the MO PSC from issuing a permit until Clean Line has the assent of each Missouri county it traverses.  GBE does not have all the county assents it needs and is unlikely to obtain them.  All of these permitting issues are STATE permitting issues.  There is nothing a Trump administration (or the Good Old Boys' Club) can do about state laws which govern state permitting, and if the administration tries to preempt state authority to site and permit electric transmission, it's going to have a hell of a fight on its hands, from the states and from the people.

None of the Clean Line projects are getting done this year.  They're not getting done.  Not now, not ever.  Take them off your list, assuming your list is supposed to be a real list, and not just some "pay to play" Good Old Boys' Club list of bridges to nowhere.

Cry me a river of bitter tears, fellas.  Karma's a real bitch.
6 Comments

Neighbors United Celebrates Court Victory

3/30/2017

0 Comments

 
Just released by Neighbors United:
We the members of Neighbors United Against Ameren’s Powerline would like to thank everyone who supported us in our effort to prevent ATXI from building a project that had no input from the people it would affect the most – Us the citizens of Adair, Knox, Marion, Shelby and Schuyler counties. We would like to thank the county commissioners who continued to listen to their constituents concerns about the project and decided that what was in the best interest of the citizens was to affirmatively say NO!, to the project. They listened to the citizens and not the pressure from big business or the Missouri Public Service Commission (PSC). We would also like to thank our attorneys Jennifer Hernandez, and Arturo “Art” Hernandez for their hard work and dedication in litigating the case through the PSC and the Appellate Court.

Yesterday, March 28, 2017, the Missouri Court of Appeals, Western District issued its decision in the Mark Twain Transmission Line Project. In a unanimous decision, the Court of Appeals vacated the Report and Order issued by the PSC. The court ruled that a Certificate of Convenience and Necessity (CCN), which grants the utility the authority to build the transmission project, can only be issued after a utility has received permission from a county to build a power line. This decision negates the CCN that was granted by the PSC last year. That CCN had approved the line on the condition that ATXI obtain the permission to hang the lines over county roads from each of the 5 affected counties. The CCN granted overstepped the PSC’s authority, because the hearing should never have been heard unless and until the PSC received the county assents given to the utility.

This is a tremendous victory for our members and our local government. For almost three years local citizens of these 5 counties have struggled to have their voices and concerns heard. Too often big corporations, like ATXI come into our communities and talk about knowing what is in the best interests, and then bring big money to try to drown out the local citizenry. They rely on statements like “in the best interest of the state”, “lower costs”, future opportunities, etc. They forget that people, like those members of Neighbors United, who work the land, live in the community, raise families, pay taxes and vote, need to have a voice in the process as well. When the local citizens try to give their input, companies like ATXI turn around and demonize the hard working people who only want to protect their livelihood and property.

Yesterday every one of the citizens of the 5 counties involved in opposing the Mark Twain Transmission Line Project, were vindicated. Not only were the citizens of the counties directly affected finally justified, but all of the citizens of Missouri were on the right side of the law. Yesterday, the courts guaranteed that the voice of the individual citizens in this great state should be and can be heard. The courts vindicated what we, the members of Neighbors United Against Ameren’s Power Line have been saying since 2014 – big business must cooperate with local government and individuals for the good of everyone. The process of approving CCN’s and utility applications by the PSC must be accompanied by input of local government and citizens.

The input of our elected county officials is just as important as the engineers, the input of state and federal agencies, the big money, the profits, and convenience of conglomerates such as ATXI. For the past 3 years, we have fought to have our voices heard. Yesterday, the court gave a voice to the farmers, ranchers and local citizens of Neighbors United as well to all the citizens of Missouri. They ensured that local governments are not overlooked or ignored. They guaranteed local governments a place in the decision making processes that affect their constituents the most.
0 Comments

Checkmate, Grain Belt Express!

3/29/2017

2 Comments

 
Just when Grain Belt Express thinks it's getting close to the  finish line, someone moves the finish line.

After months of very expensive preparation, and a week-long evidentiary hearing before the Missouri Public Service Commission, perhaps Grain Belt Express thought it could be granted a conditional permit (CCN).

But hope was dashed once again yesterday by the opinion of the Western District of the Missouri Court of Appeals.  The Court found that
...county commission assents required by
section 229.100 and 4 CSR 240-3.105(1)(D)1 must be submitted to the PSC before the PSC grants a CCN.
Missouri law provides:
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.
The assent of the county commission must be filed as evidence at the PSC before the PSC issues a CCN:
No such corporation shall exercise any right or privilege under any franchise hereafter granted, or under any franchise heretofore granted but not heretofore actually exercised, or the exercise of which shall have been suspended for more than one year, without first having obtained the permission and approval of the commission. Before such certificate shall be issued a certified copy of the charter of such corporation shall be filed in the office of the commission, together with a verified statement of the president and secretary of the corporation, showing that it has received the required consent of the proper municipal authorities.
And there it is.  In Missouri statute.  In black and white.

But the Missouri PSC issued a "conditional" CCN for a transmission line to applicant ATXI last year, requiring the company to obtain county assent before construction. 

Which came first?  The chicken or the egg?  The PSC must have the assent BEFORE issuing the permit.  It cannot issue a permit now with the condition that assent is obtained later.  The Court vacated the PSC's conditional grant of CCN.

Grain Belt Express does not have all of its county assents necessary as a prerequisite to a CCN.  It cannot be granted a "conditional" permit without assent.

While Grain Belt Express obtained many county assents years ago, before landowners found out about its transmission plan, all but two counties have since rescinded assent.  While there may be debates about whether those rescissions were legal, a court has found that the assent of Caldwell County was never legal in the first place because it violated sunshine laws.  It is not disputed that GBE does not have the assent of Caldwell County.  And without that assent, GBE cannot proceed and the PSC cannot issue a conditional permit.

Checkmate, Grain Belt Express!
2 Comments

Congressman Wants To Know Who's Paying for JCP&L Transmission Line Advocacy

3/29/2017

2 Comments

 
Yesterday, NJ Congressman Frank Pallone sent a letter to the NJ Board of Public Utilities requesting that the regulator open an audit of JCP&L to ensure that the company is not using ratepayer funds to underwrite its lobbying campaign.

Ut-oh, JCP&L!  Yes, your stated rate is not transparent.  You receive a set amount of money from the ratepayers to run your utility, and how you spend that money is pretty much up to you.  But, the thing is, the amount of money you waste on advocacy campaigns is money you don't spend repairing and modernizing your decrepit distribution system, and that causes outages.  While utility customers can directly benefit from repairs and upgrades to the system, nobody is directly benefiting from phone calls, postcards, and door-to-door petitions trying to drum up support for the Monmouth County Reliability Project in advance of tonight's public hearing.

Many people may be scratching their heads over the concept that not only must they pay their own expenses to oppose this awful project, but they're also on the hook for the cost of JCP&L buying support for its project.  You pay to fight them, and you pay for them to fight you.  Something's indeed wrong with this picture.

JCP&L's response to Congressman Pallone's letter:
JCP&L spokesman Ron Morano said the utility is following procedures. "All costs associated with the project will be reviewed as part of that process," Morano said.
Reviewed by whom?  The fox inside the hen house?  Whose procedures?  JCP&L's?  I'm not sure when I've heard a more weaselly statement.

And speaking of weasels and other predatory animals, I gotta say that you've outdone yourself with the bullshit this time, FirstEnergy!  But let's be real here, all your efforts to create advocacy for your project will fail because nobody will go out of their way to support a transmission project unless they're being paid to do so.  As if some random person will drive across the county, stand in a long line, and then sit for hours in a crowded auditorium waiting for a chance to speak in support of a transmission line  they've only recently heard of from a door-to-door day laborer... FOR FREE?  Surely you jest!  Whatever meager appearance of support you manage to milk out of your recent advocacy buy cannot stand up to the honest, forthright and committed opposition to your project.  In fact, perhaps the only thing you've accomplished is to tick off even more people who ordinarily wouldn't have paid any attention to your project.  You know how it goes...
"I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."  --  Isoroku Yamamoto
I see FirstEnergy's media event yesterday got photo bombed by protestors.  What?  No helicopter rides?  Is that because its proposed route would only increase scrutiny?  Jamming a 230kV transmission line into a very narrow commuter railroad right-of-way is insane!  Who thought that was a viable idea?  The visual of that boggles the mind!  Erecting "sleek" monopoles just 15-feet from residential property lines doesn't provide adequate right-of-way, which is probably why JCP&L wants to condemn and take an additional "vegetation" right-of-way on residential properties.  Is that just smoke and mirrors to avoid actually paying for sufficient property for your right-of-way?  Ridiculous!  JCP&L isn't fooling anyone.

So, tonight's the big night!  The second BPU public hearing on the MCRP begins at 5:30.  Opposition will be huge and fierce.  The people will tell their stories.  Fake advocacy cannot withstand the storm.  RAGE on, folks!
2 Comments

The Battle for Property Rights Still Electrifying the Prairie

3/28/2017

1 Comment

 
News release from Block GBE-Missouri:
The small savings offered to municipalities cannot overcome the tremendous burden to Missouri landowners that would come with the Grain Belt Express, says Block Grain Belt Express-Missouri, in the wake of last week’s evidentiary hearing before the Missouri Public Service Commission.

“A majority of the Commissioners denied the project in 2015 because the burden on affected agricultural businesses and landowners was so great,” said spokesperson Jennifer Gatrel. “Nothing has changed.”

Claimed savings for municipalities were concocted with irrelevant and speculative studies which supposedly showed the savings from the Grain Belt line. The actual savings were much less than claimed when examined at the hearing.

Missouri Landowners Alliance (MLA) provided unquestioned expert testimony from agricultural experts and business owners demonstrating the huge financial burden GBE would place on citizens across northern Missouri. MLA expert Don Lowenstein testified that local tax benefits claimed by GBE could not be accurately predicted beyond the first year and that actual tax benefits to localities are likely to be much less than promised by GBE and its witness. Expert appraiser Kurt Kielisch provided testimony demonstrating property value decline and other impacts to agricultural and rural residential property that would be caused by GBE. A Ralls County Commissioner also provided testimony refuting GBE’s claims of local benefit, and declaring his staunch opposition to the project.

The Missouri Public Service Commission Staff, who acts as an advisory party in the public interest, continues to maintain their position that GBE must receive approval to cross county roads from the commission of each county where the line is proposed before the PSC can approve GBE’s application. Today, the Western District of the Missouri Court of Appeals issued a decision on county consent related to the recent Ameren transmission case, finding that that the PSC cannot issue a permit until after all the consents of the county commissions are obtained. The Court vacated the PSC’s decision in the Ameren case, where a conditional permit was issued before county consents were obtained. Grain Belt Express does not have county consent.

“At the hearing, I learned that GBE hugely discounted its service in its offer to Missouri municipalities in order to gain a toehold in the state, and that the normal price of GBE’s transmission service is five times the number offered to the municipalities. There are currently no takers for service to Missouri at the regular price. If GBE cannot find customers willing to absorb the loss created by the offer to the municipalities and make the project profitable, is there any guarantee that GBE will even build the station in Missouri proposed to serve municipalities?” asked group President Russ Piscotta after watching the hearings.

“We are nearly four years into this fight,” stated Jennifer Gatrel. Property rights are the backbone of farming and ranching. We keep on winning because we can't afford to lose. Somehow, someway we will always find a way to protect what we hold dear. It has been the most amazing journey of my life seeing so many diverse people come together from across the country to fight a common wrong."

Background: Grain Belt Express is a $2.7B, 700-mile high-voltage direct current transmission line purposed to move electricity from Western Kansas to Indiana and eastern markets. The speculative venture seeks profit for its investors from electricity market price differentials.
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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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