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Clean Line Making its Ego GREAT again!

2/14/2017

5 Comments

 
We're going to build huge transmission lines!  It's going to be great!  It's going to be the greatest transmission build ever!  And we're going to make the American people pay for it in their monthly electric bills!  It's going to be GREAT!
Perhaps the new mantra is “we’re going to make transmission great again,” Skelly said.
Oh, puh-leeze.  Transmission is already great in this country.  In fact, we have federally regulated transmission planning and reliability organizations that plan and operate the greatest transmission system in the world.  These organizations carefully monitor our transmission system to ensure that it serves electric consumers reliably, economically, and meets public policy mandates.  It's already GREAT!

And the planning and reliability organizations have never found a need for thousands of miles of expensive, invasive "clean" lines.  That's why Clean Line Energy Partners is a merchant transmission company, proposing to build new transmission outside our regulated system and shoulder all the financial risk that nobody may find its lines useful, economic, or necessary to purchase.  We don't need Clean Line to "make transmission great again."  Our transmission system never stopped being great, but if it did, regulated planners would propose additions to the system to ensure it remained great.

But Clean Line needs our regulated transmission system to make itself great.  It needs volunteer customers to provide a revenue stream that would make its proposal profitable for its filthy rich investors.  And when that did not happen voluntarily, Clean Line now seeks to use the federal government to force electric customers into captivity to finance its projects.

Clean Line and its environmental sycophants, along with transmission industry profiteers, gathered together last week to scheme up a way to force legislators and governmental regulators to usurp state authority to site and permit new transmission projects.  And hilarity ensued.

Considering that there was only one news report of the event, and the front group that organized it didn't bother with social media engagement, it more closely resembled a closed echo chamber that nobody cares about.  So even though Clean Line president Michael Skelly shamelessly sucked up to the political party in power, nothing of any import happened.  Except I laughed!

Conference organizer "Americans for a Clean Energy Grid" has been trying to make itself relevant for years, but their execution is lame and conference attendees may randomly crap on all their ideas.
The organization, an initiative of the Energy Future Coalition, has held regional transmission conferences, but this was its first national event.

The coalition was formed in 2002 by former Sen. Tim Wirth, a Colorado Democrat; Republican C. Boyden Gray, who served as White House counsel to President George H.W. Bush; and Democrat John Podesta, a former aide to Presidents Bill Clinton and Barack Obama who chaired Hillary Clinton’s 2016 presidential campaign.
So this is really a political organization trying to masquerade as an industry or regulatory organization.  And even when they can manage to get important sounding participants to show up, the participants may not share the organization's rabid support for building new transmission outside current regulated planning processes.
“I’d love to have more load growth. It ain’t going to happen,” Craig Glazer, PJM’s vice president for federal government policy, told the gathering.

Weak load growth will make it more complicated to finance upgrades for aging transmission, and the lack of a federal carbon tax or renewable mandate is making it difficult to integrate renewable generation, Glazer said.
Gosh, that really doesn't sound like a glowing endorsement for building new merchant transmission to serve PJM consumers, which seems to be Clean Line's target market.

And when the organization's dream of taking away state authority to site and permit transmission was brought up:
Hoecker and Brown discussed FERC’s inability to gain “backstop” siting authority, saying it’s still very difficult to prevent individual states from blocking a project. The Energy Policy Act of 2015 amended the Federal Power Act to give FERC the authority to site electric transmission lines blocked by states, but court rulings have blocked the commission’s attempts to use it, prompting some in Congress to propose additional legislation strengthening FERC’s authority.

Brown said that Order 1000 hasn’t really helped SPP much with large regional projects.

“We need to decide what we want this grid of the future to look like,” Glazer said. For example, should it be a “localized grid” that can harness distributed generation? he asked. “There’s an added complication; it’s not even clear who is in charge,” Glazer said. FERC, state utility commissions and governors all have a say in siting decisions, he said.

If each governor is asked what infrastructure projects they want, the country will end up with a lot of state-based projects, not interstate ones, Clean Line Energy Partners President Mike Skelly said.

Perhaps the new mantra is “we’re going to make transmission great again,” Skelly said. The power to select infrastructure projects should not be taken away from transmission planners and placed in the hands of Congress, he said.

Skelly and others cautioned the Trump administration not to skimp on project reviews or stakeholder input. The key is that all projects must have “timelines” for regulatory approvals to avoid infinite delays, he said.

The executive director of the AFL-CIO’s Industrial Union Council, Brad Markell, said the labor movement agrees with the need for “hard timelines” to shorten the permit process.

Markell said that labor unions have been in contact with the Trump administration on potential infrastructure efforts.

“From our point of view, more power for the federal government and less power for the states [on electric infrastructure] would be a good thing,” he said.

Others deemed that unlikely. “I think we’re stuck with the system we have,” Glazer said.
But, wait a tick, the Skelly chameleon has actually participated in a federal process that skimped on technical project review and stakeholder input in order to usurp state siting authority for one of his "clean lines."  It seems to me that this is a top-down approach to forcing regulatory approval, instead of a fair and open review of proposed projects.

And then the environmental groups weighed in and things got a lot sillier.
Mary Anne Hitt, executive director of the Sierra Club’s Beyond Coal campaign, said that — contrary to what conference participants may have heard — her organization doesn’t oppose all power lines, only those that appear aimed to “prop up fossil fuels.”

The environmental group opposed the abandoned “coal by wire” Potomac-Appalachian Transmission Highline (PATH) project in PJM. On the other hand, it has backed the Plains and Eastern Clean Line Project, designed to move renewable energy from Oklahoma to Tennessee.

Hitt said she was concerned that President Trump’s nominee for EPA administrator, Scott Pruitt, opposed Clean Line in 2015 as Oklahoma attorney general.
Right... the Sierra Club should be the sole adjudicator of whether transmission projects "appear aimed to prop up fossil fuels."  And this subjective determination can really filter out bad projects.... I guess she doesn't know that her favorite Clean Line projects are being marketed as an arbitrage opportunity to ship fossil fueled electricity between regions, and that "clean" lines can't actually exist because all transmission is open access regardless of fuel source.  I guess that's what happens when you have a bunch of environmentalists meddling in things they don't really understand.

And an ineffectual time was had by all.  But, hey, the political posturing was exquisite!

And speaking of political posturing, here's some political posturing from E&E News regarding a real Washington, D.C., organizational conference with clout - the National Association of Regulatory Utility Commissioners winter meeting.  The members of this organization actually regulate utilities, they don't just talk about it.  E&E complains:
Curiously, there are no sessions scheduled there addressing the unsettled question of whether the federal government has any legitimate interest in transmission siting.
That's probably because this question is NOT "unsettled."  It's quite settled.  It's been settled for years.  Decades.  States have jurisdiction over electric transmission permitting and siting.  The federal Energy Policy Act of 2005 attempted to shift permitting to the Federal Energy Regulatory Commission if a state failed to act within one year on a permit for a project in a federally designated "national interest electric transmission corridor.  That has never happened, so who's to say its ineffective?  What was ineffective was a misinterpretation of this statute (Sec. 1221) that ended in a couple of hugely expensive federal court battles.  The EP Act also allows the U.S. DOE to "participate" in transmission projects financed by third parties, but reserves siting authority to the states.  Again, misinterpretation of the statute by the government has resulted in a federal court battle, still in progress.

This "question" isn't unsettled.  It's written in black and white.  But for those who want to misuse statute, it becomes an "unsettled question" kicked into federal court.  Just because an entity doesn't like the law does not make the law open to interpretation.  The law does not allow the federal government any authority over,  or interest in, transmission siting.  Transmission siting is state jurisdictional.

While it's oftentimes hard to tell a useful and influential Washington conference from a useless and ineffectual one, remember that not all Washington gatherings have the same amount of clout.
5 Comments

It's Pretty Windy in Hannibal These Days

2/11/2017

2 Comments

 
The Herald-Whig reports:
The Hannibal Board of Public Works wants to install a wind farm in Hannibal, and on Wednesday it signed a draft contract indicating its support for a future wind farm.

The Missouri Public Service Commission would ultimately grant approval for construction of the wind farm.
Where could the reporter have gotten an idea like that?  She must have been positively blown over by the over blown hot air generated at a recent meeting of the Hannibal Board of Public Works and the windy enthusiasm displayed by General Manager Bob Stevenson for windy things.  Can't fault that... we've all been there before.

No, a wind farm isn't being constructed in Hannibal.  That would probably make too much sense for Hannibal to get its energy from local sources.  Hannibal seems more interested in importing energy and running over hundreds of Missouri landowners to get it there.  And since the wind farm won't be installed in Hannibal (or anywhere else in the State of Missouri), the MO PSC wouldn't have to approve it.

Hannibal Courier-Post reporter Danny Henley may have been surprised to learn that energy is not included in the cost of transmission capacity on the Grain Belt Express, but he's still trying really hard to tie the two together unnecessarily:
After expressing public interest for months in securing low-cost wind energy, the Hannibal Board of Public Works Board took the next step Wednesday by approving a draft power purchase agreement to get wind energy from an an as of yet unapproved transmission line.
A power purchase agreement is for power (energy).  A transmission capacity contract is not necessary to purchase energy.  Except Stevenson pretended Grain Belt Express was necessary to get that energy to Hannibal.  It's not.  Hannibal can purchase energy from anywhere and use the existing transmission system to get it to Hannibal.  That's what Hannibal does today, and plans to do for 80% of its future energy, according to the article.

But Bob loves Clean Line Energy Partners.  And the harder he loves on CLEP, the more bizarre this whole drama becomes.

Bob made a big show of the BPW board signing a "draft" power purchase agreement with the mysterious "Kansas Wind Farm."  Bob says it's not a tentative agreement because the word "tentative" is not in the agreement.
"The word tentative is not in the agreement. This is a real commitment to us. That's how we intend to pursue it," he said. "But we all realize that things can happen yet through rulings or studies where we might find a show-stopper type of condition. We reserve the right to go back and re-think (the situation). If nothing changes of any significance they would expect us to sign this deal and live by it."
So, it's a draft agreement that has no legal effect, and the BPW can go back and change it at any time?  That's a draft tentative option to purchase power.

tentative |ˈten(t)ədiv| adjective
not certain or fixed; provisional: a tentative conclusion.
done without confidence; hesitant.

Tentative.

But yet, Bob told the assembled audience that this tentative draft option would have some legal significance at the PSC.
The HBPW Board was asked to sign the draft agreement as a show of support for both the Missouri Joint Municipal Electric Utility Commission (MJMEUC) and Clean Line Energy as they prepare their testimony to the Missouri Public Service Commission seeking approval to construct the Grain Belt Express transmission line from wind farms in western Kansas, across Missouri, to the Hannibal area.

Among the blanks on the contract is the price Hannibal will be paying for the wind-generated power.

"The initial price for the energy and transmission service is still confidential. Those prices will be revealed to the public during Public Service Commission testimony. We are satisfied they are going to be in the $21 a megawatt (MW) range when they are finally revealed, or less," said Stevenson.
Let me get this straight -- despite GBE's current argument that contract drafts have no relevance to the issues at hand, in order to keep drafts of a prior "contract" out of the hands of the opposition, GBE is going to present Bob's ceremoniously-signed draft PPA as evidence, along with testimony about this new issue, to the PSC during surrebuttal?

Ha hahahahahaha!

How many things are wrong with that picture?  Surrebuttal is the only round of testimony yet to be filed.  Surrebuttal testimony must relate to issues raised in prior rebuttal testimony.  I didn't read anything about Hannibal, Bob, or his CLEP infatuation in rebuttal.  Different rounds of testimony act sort of like a funnel to whittle down and refine issues to be litigated.  Direct testimony is the company's story.  Rebuttal is the response of the other parties to the company's story.  Surrebuttal is the response of the company to the other parties' story, and the response of the other parties to each other's story.  New issues cannot be brought up in surrebuttal.

And while Bob says the price is "confidential," he turns around and claims it's going to be $21/MW.  Whoopsie!  Loose lips sink ships (and derail trains), Bob!

Ceremonious draft option agreements have no legal relevance.

Sorry.

Bob claims the City has "committed" to purchase power.  Not with a draft option agreement, it hasn't.

He also says there is real risk to the City from this draft option agreement.
Stevenson did acknowledge there is one "point of risk for the city."

"In the event that the transmission line is completed and the wind generators are for some reason late and can't deliver energy, this contract obliges us to start paying for the transmission service anyway," he said.
And then he says
Stevenson is not losing sleep over that possibility.

"The odds of the particular generators that would be assigned to us being late are very low," he said.

A liquidated damages clause is written into the contract to pay those transmission charges should the wind generators be late.
So, someone else would pay the transmission charges in the event that the generators would be late.  Risk?  This is risky for the City how?

And Bob seems to forget how much the City's buying into Prairie State has cost because the project ran late and over budget.  Now THAT was risky.

I don't know about you, but I'm calling Hollywood.  The risk of not turning this into a major made-for-TV drama is just too much for me!  Imagine the scene... modern city utility manager makes a brave and daring move to escape from the shackles of an "all in" energy management contract to provide energy and capacity for the city's needs.  Will he end up the hero behind a celebratory community energy faire where the city utility pays citizens to consume its cheap clean energy? Or will he end up the unfortunate villain who gets mired in complicated energy disasters that end with the municipality risking it all by playing roulette with rate increases and blackouts?  Stay tuned, Hannibal, stay tuned!

If Bob and his draft PPA show up in the witness chair at the PSC hearings next month, I'm going to be popping some corn in preparation for the pure entertainment that will ensue!  I'm pretty sure the Clean Line attorneys will break out their special "Expert Twitness Shock Collar" and make Bob wear it.  I can't wait!
2 Comments

Show Me Why Grain Belt Express Should Be Denied, Missouri!

2/7/2017

1 Comment

 
And, they did!  Rebuttal testimony in GBE's latest attempt to get its project approved by the Missouri Public Service Commission has been filed.  This article attempts to "analyze" and summarize, but it doesn't acknowledge the weight of the individual testimonies, and that was probably hard to do within the confines of a word count.  So, I had to read it for myself... and I can use as many words as I need to do it justice.

Landowner parties Missouri Landowners Alliance and Show Me Concerned Landowners presented a fact-based, detailed, well-rounded defense against Grain Belt express.  They were bolstered by excellent rebuttal from Blake Hurst of the Missouri Farm Bureau and landowner Christina Reichert.  On the other hand, intervenors supporting Grain Belt Express filed a whole bunch of "me, too" fluff that was short on fact and detail and is likely to blow away in any strong wind of scrutiny.

Here are some of my favorites:

Ralls County Commissioner Wiley Hibbard -- gosh, I love this guy!  His testimony can only be described as forthright.  He doesn't mince words, but gets directly to the point on all issues.  For example:
In my opinion, this whole project is an attempt by a small group of investors to make a large amount of profit from the wind energy generation from Kansas. They have offered the proverbial 30 pieces of silver to local governments. Some have apparently taken it. I for one will not choose to do so. They promise Ralls County a whole million dollars (they must think this is 1960) to sell out our future. It is asking a lot of us to have our land taken by force to enable a few to get rich. I believe that other elected office holders should think beyond just today.
One million dollars?
Point made, Wiley, point made!

Don Lowenstein of the Missouri Landowners Alliance did a fantastic job with a really difficult subject -- taxes.  Nobody wants to even think about taxes,  instead they hire guys like Don to think about taxes for them.  He carefully and factually explains why GBE's claims of tax riches for affected counties are an overly-hyped generalization that has no basis in reality.
I think Mr. Tregengo’s assessment of the benefit to school districts and other county taxing jurisdictions is misleading because the facts are materially understated. 

I believe his overall discussion is short sighted because it does not address the tax revenues generated by the Project after it goes into service. Nor does it address the long term net tax benefits or losses. Therefore I regard most of his testimony as having little significance to an overall assessment of the longer term tax benefits to Missourians.

Basically, I believe that he spoke in generalizations which might leave the reader to see a much brighter prospect than actually exists for tax revenue benefits to Randolph and the other seven counties on the line. He omitted a discussion of which taxing jurisdictions receive little or no tax benefit.

Property devaluation expert Kurt Kielisch submitted fascinating testimony regarding the way electric transmission lines affect values of agricultural and rural property, and why industry-biased studies fail to capture the true cost to landowners.  The value of a piece of property in an open market is primarily perceptual, an idea routinely dismissed by industry-biased studies.
Essentially, the value of a property is based on the perception of the buyer. Understanding that perception drives value is the foundation in analyzing the effect that electric transmission lines have on property value.

This perception does not have to be based on a scientific or engineering fact, it is based on what a buyer believes. An example of perception driving value based solely on belief is the haunted house. A home cannot be proven scientifically to be haunted. Yet, there are several homes throughout the nation thought to be “haunted” which stigmatizes the property resulting in a diminished selling price.
Why would anyone want to purchase a piece of property with a high-voltage transmission line when they can find a comparable property without one?  I'm pretty sure nobody ever considered a high-voltage transmission line a wonderful and useful addition to a piece of property they were considering buying.  This goes double for agricultural property, where transmission lines pose an additional safety concern that the farmer has to work around.

Electric power expert Joseph Jakulski completely shreds GBE's greatest hope for approval, the transmission contract between GBE and the Missouri Joint Municipal Electric Utility Commission (MJMEUC).
Just as in the last case, Grain Belt still has no memorandums of understanding with wind generators, and no firm commitments from any load serving utilities to buy capacity on the proposed transmission line.

Grain Belt fails to mention that MJMEUC may without penalty or cost elect to take no capacity over the new line, and that decision will be made sixty to ninety days before the line is then expected to enter service.

The TSA is nothing more than an option agreement.


In short, there currently is no commitment from MJMEUC to buy any capacity on the proposed transmission line.

And about that purported $10M annual savings?
The only support provided for the $10 million estimate from the MJMEUC was an eight-row spreadsheet in response to MLA’s Data Request MJM.13.

It is a flawed calculation of the cost of transmitting 100 MW and 200 MW of wind power from SPP to MISO. There is no calculation of, or comparison to, buying wind power over Grain Belt. The spreadsheet also contains an error in calculating the loss component of the costs. The total costs end up including addition of megawatt-hours and dollars which is flawed mathematics.

The testimony of Christina Reichert is a well-written and compelling account GBE's burden on landowners, as well as a jaw-dropping account of GBE's repulsive interactions with landowners.  Christina tells how she was approached by GBE personnel after the PSC's original denial of the project because the PSC specifically mentioned her situation in their Order.  GBE told her they had "good news" and that the line was being rerouted off her property.  What happened next should give everyone pause:
  1. Mr. Lawlor asked how we felt about this move. We told him we would be thrilled not to have the line crossing our property, but that we did not want it moved to our neighbor’s property either. We couldn’t bring ourselves to benefit at the expense of our neighbors.

  2. He said that the proposal to move the line seemed like a viable option, but that they expected something in return from us. My husband asked what he meant. Mr. Lawlor never did tell us exactly what they were expecting in return for moving the line off our property, but said it would be nice to have something from us.
  3. We eventually told Mr. Lawlor that we could not agree to a move that would be detrimental to our neighbors, and that we would continue to oppose the Grain Belt Project. They thanked us for our time and left. That was the last we heard from Grain Belt about rerouting the line.
These are not the fair and aboveboard interactions with landowners that GBE pretends to carry out.  These are actions designed to reward landowners who toss their neighbors under the bus and support the project for the express purpose of saving themselves.  Sort of reminds me of GBE's pet landowner, Wayne Wilcox, who has testified that GBE crossing a tiny corner of his property isn't a problem and that he thinks the project is wonderful.

The testimony of agricultural expert Charles Kruse is a compelling account of the effects of GBE on agricultural operations.
I will rebut Grain Belt witnesses James Arndt’s and Lanz testimonies regarding how the Grain Belt Express project could impact farming operations as well as discuss other issues regarding the negative impacts to farming and land as a result of large transmission projects like the Grain Belt project. Specifically, I will address the following negative impacts: Compaction of Soil; Erosion; Irrigation Equipment Interference; Difficulty in Aerial Applications to Crops and Pastures; Possible GPS Interference; Problems Maneuvering Large Farm Equipment around Towers; Precision Farming Problems; Concerns about Storm Recovery; and Eminent Domain.
And he does, in factual detail.  He demonstrates that GBE's "agricultural expert" really misses the mark, as well as GBE's land lady, who really doesn't know much about agriculture at all.

Missouri Farm Bureau president Blake Hurst explains his organization's opposition to eminent domain, and he gets right to the truth:
Grain Belt Express Clean Line LLC’s supposed promises to sell power to Missouri municipalities should be recognized for what they are: a political stunt to create pressure for approval of this project by giving small benefits to local governments at the massive expense of landowners’ rights. Those municipalities in support will bear none of the burden from Grain Belt’s proposed project. It is instead Missouri’s rural landowners that will experience significant disruptions in their operations if Grain Belt Express Clean Line LLC is given the power to force land sales through eminent domain takings. This development does not change the underlying nature of the Grain Belt Express proposal. The project remains an attempt to engage in the abuse of eminent domain for private gain.
But the Missouri PSC Staff's report may perhaps be weightiest of all.  The Staff is acting as an impartial party to investigate GBE's claims and make recommendations to the Commissioners.  The PSC Staff found that the project is not needed and that GBE's analysis of "need" is severely flawed.  Staff also determined that the project is not necessarily economically beneficial.  It also opined that the Commission cannot grant a permit until GBE has the consent of the counties crossed.   The Staff has concerns about how GBE affects the safety of pipelines adjacent to its proposed route, as well as GBE's current ability to repair the project in event of failure.
In summary, based on Staff’s review: 1) Grain Belt does not have the consent of the Caldwell county commission for its proposed transmission line to cross the public roads and highways in that county, the validity of its consent from the Monroe County Commission is being challenged in court, and, presently, the prefiled evidence does not include any such consents by the county commissions of Buchanan, Clinton, Caldwell, Carroll, Chariton, Randolph, Monroe and Ralls Counties; 2) There is not a clear need for the Project; 3) Grain Belt is qualified to construct, own, operate, control and manage the Project, but additional expertise will be needed once engineering and safety issues have been resolved; 4) Grain Belt has the financial ability to undertake the Project; 5) It is not clear whether the Project is economically feasible due to the lack of various RTO studies and the uncertainties surrounding the ATXI Mark Twain transmission line and its effects on the Missouri converter station and corresponding congestion; 6) A determination cannot be made at this time as to whether the Project is in the public interest since there is still uncertainty related to the economic feasibility and the safety of the Project.
I'm not going to address the majority of the GBE supporters who filed "rebuttal testimony" in this case.  It's a fluffy bunch of opinion and hot air, short on facts and long on stuff that doesn't matter.  Instead I'm going to focus on only the testimony of MJMEUC witness John Grotzinger, who claims:
It is expected that the MoPEP cities will save approximately $10 million annually by utilizing the Grain Belt Express and Infinity wind contract in their power supply after the IPM contact ends in 2021.
And then he attaches the same spreadsheets that the MLA's witness has already shredded.  But you know what I found really amazing?  The continued use of that $10M savings number.  It was first seen in GBE's proposal to the cities last year as a preliminary calculation using existing production tax credits for wind.  And wouldn't you know it... that number has never varied, despite the reduction in production tax credits, and the sudden addition of a wind PPA just as the testimony was filed.  Wow, serendipity, right?  Or maybe just a little too much coincidence for believability.  It reminds me of the misery of high school algebra... here's the answer to a problem, now create an equation that could result in that answer.  Magic math!

Which brings us to the thing I found most ridiculous.  GBE's legal shenanigans and dirty tricks designed to keep MJMEUC's magic math from being fairly analyzed.  GBE wants MJMEUC to be able to barf all this who shot John into the evidentiary record at the latest possible date, and then prevent the other parties from getting background information to assist their analysis and rebuttal.  GBE has presented a "Joint Defense Agreement" that basically states that GBE and MJMEUC have a common interest and a joint defense that allows them to share information between the parties and keep the information they share confidential.  GBE supposes this keeps all its interactions with MJMEUC under wraps, a big mystery that can never be questioned.  Just look at that $10M savings number and don't ask how we got there.

But yet, GBE and MJMEUC chose to not file MJMEUC's testimony as part of GBE's direct testimony last summer.  Instead, they chose to keep it under wraps until January, when opposing parties would have only 30 days to analyze and respond to it.  GBE and MJMEUC pretend this is perfectly innocent, and that MJMEUC filed its testimony at its first opportunity -- the deadline for rebuttal testimony.  It simply wasn't legally allowed to file earlier.  Umm... deadline?  A deadline to file testimony means the last possible opportunity.  A deadline does not prevent an earlier filing.  In fact, MJMEUC could have filed its "rebuttal" testimony at any time prior to the deadline.  But filing it on the deadline narrowed the window of time available to the other parties to respond to it.  Your unsportsmanlike actions are plain for all to see, GBE.  So, if GBE believes MJMEUC is its saving grace for this application, and MJMEUC's contract is such a wonderful, transparent attempt to save ratepayers money, why is it trying to shield it from scrutiny?  And what does this say about whose interests MJMEUC is really representing at this point?  A really good deal for the electric consumers MJMEUC is supposed to serve should be able to shine in the sun, not be hidden under layers of confidentiality and legal dirty tricks.  If I was an electric customer in any of those cities, I'd be distinctly suspicious.  It's clear that GBE will do anything and toss anyone under the bus in order to get its project approved.  Must be a lot of money in it for someone.
1 Comment

Clean Line's Fake News

2/3/2017

3 Comments

 
All press is good press, right, Clean Line?

Not necessarily.  After years of using Democrats and environmental organizations as mouthpieces for its "clean energy" scheme to build billions of dollars worth of highly profitable new electric transmission, Clean Line suddenly wants everyone to believe that it has an "in" with the new Republican Trump administration.  As if media spin and fake news could boost investor confidence in a company with no conceivable revenue stream.

Last week it was the fake "Trump administration" infrastructure list that turned out to be nothing more than a lobbyist constructed wish list.  The Trump team disavowed the list as coming from them.

This week, E&E's environmental trade press wants us to believe that Clean Line's Jimmy Glotfelty may be appointed "Chief of Staff" in Perry's Department of Energy.

Hahahaaaaa!

Entertaining, however nothing but more fake news designed to pretend that Clean Line's projects are viable because they will be boosted by the new administration.

So, why can't Jimmy walk into DOE's revolving door and help Clean Line from the inside?

Because he's personally invested in the company.  This would be a huge ethics violation for an individual to "regulate" his own investment.

From Clean Line's testimony at the Missouri PSC:
Clean Line’s owners are GridAmerica Holdings Inc., a subsidiary of National Grid USA (“National Grid”); Clean Line Investor Corp., a subsidiary of ZAM Ventures, L.P. (“ZAM Ventures”); Michael Zilkha; and Clean Line Investment LLC.

Clean Line Investment LLC is a vehicle for service providers and employees to invest in Clean Line, and is a small, minority shareholder in Clean Line.

Which employees have invested in Clean Line Investment LLC?
Michael Skelly
Michael Zikha
Jayshree Desal    
James Glotfelty    
Mario Hurtado    
David Berry

If the mysterious "source close to the DOE" who placed Jimmy's name on the short list for a DOE position thought nobody would ever notice that Jimmy has a huge conflict of interest, the cat's now out of the bag.

What a ridiculous bunch of fake news!  Clean Line's attempts to generate supportive fake news has finally jumped the shark.  This simply cannot happen.

I wonder how much it has cost to place Clean Line in all this fake news?  As the folks at Block Clean Line ruminated:
While all these things seem kind of academic, it's pretty clear from Mario Hurtado's interview with NewsOK that the truthiness of this list isn't going to stop Clean Line from spinning it in a way they can use to preen (beg?) for financing and to pressure landowners.

"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."

Like, when did you just happen to mention it? Did you run into them in the grocery store? How much did that conversation cost?

And how much mileage does this fake news really have?

Will it change the Participation Agreement between Clean Line and the U.S. DOE that requires the company to secure customers and financing before the DOE steps in to negotiate rights of way for the project? 

No.

Will it cause utilities to sign contracts for transmission capacity from a bunch of wind generators that haven't even been built yet? 

No.

Transmission without generation is a cart before horse proposition fraught with risk.  Would you buy shipping for a product from a certain location, before you even decided where to buy your product?  Of course not.  And that's where Clean Line's business plan hit the molasses swamp.

Will the Trump administration be fooled by all this fake news to believe that it supports a transmission project that its never taken official notice of before?  Will no one speak out about all this fake advocacy?

Personally, I've had enough fake news.  As if the folks so upset by last year's election can overcome it by projectile vomiting a huge vat of half true and made up crap.  The greatest danger of embellishing is that folks will simply tune you out and stop listening.
Here's a little reality.

No matter how Clean Line spins news to try to make you believe Trump champions their project, there is nothing the administration can do to make the project happen.  It's a market-based project, and the market just isn't there.  Who is Clean Line trying to fool with this fake news?  Maybe landowners, who are resisting their efforts to purchase rights of way for the project.  Maybe investors, who may be getting nervous because Clean Line has no customers.  And maybe they just like to hear the sound of their own name, even though the claims are empty.

Is the Trump administration really having secret meetings with Clean Line Energy Partners?  Go ahead, ask them!
Right now, I'm a villager.  I don't believe it.
3 Comments

FERC Orders $7M Refund of PATH Advertising, Lobbying and Front Group Costs

1/20/2017

5 Comments

 
On January 21, 2011, Ali Haverty and I filed a "Formal Challenge to Potomac-Appalachian Transmission Highline, LLC 2010 Formula Rate Annual Update." This was after several months of rather frustrating information requests to an active and threatening PATH transmission project.  We had no expertise or legal help, we simply did the best we could with available processes.

Now, nearly 6 years later, the Federal Energy Regulatory Commission has confirmed our contentions that PATH should not have collected from ratepayers the costs of its reliable power coalitions (West Virginians for Reliable Power, Marylanders for Reliable Power and Virginians for Reliable Energy), its PATH Education Awareness Team (or "PEAT"), its memberships in civic and social groups, its lobbying for release of a conservation easement in Loudoun County, Virginia, its hiring of a well-connected lobbyist in West Virginia, its cost of public opinion polling and focus groups in West Virginia, Virginia and Maryland, and the cost of all of PATH's television, radio and print advertising promoting its project in all three states.  The Commission has ordered PATH to refund these costs (plus unearned return and interest) to millions of ratepayers in PJM's 13-state region.
It truly was no bed of roses.  We combed through hundreds of thousands of documents, learned FERC's accounting rules, learned how to write and file all sorts of legal pleadings, made dozens of trips to FERC's offices in DC, and suffered through some middle of the nighters in order to meet deadlines.  We've spent the past 6 years jumping one hurdle after another to get to this point.

And we're still friends.  Never once did we consider giving up or splitting our team.  No matter how heavy the burden, we kept our eyes on the prize.

Opinion No. 554
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The Commission also ordered accounting transactions to remove an additional $1.1M of public relations & advertising expenses PATH booked to its asset account in 2008, before Ali and I began to challenge PATH's annual rate filings.  This $1.1M of cost has been sitting neatly in an account where it earned 14.3% (and then 10.4%) return on equity for the PATH companies every year since.  Not only will PATH have to deduct those costs from its ultimate recovery, it has also been ordered to make a compliance filing to essentially correct and replace each of its annual accounting filings for the past 8 years.  This approach allows crediting of that undue return to ratepayers.  So, while the total disallowance to PATH is more than $7.1M, the total ratepayer credit effected will be much more.

We appreciate the Commission's order, and our overall experience at FERC.  In an era where the agency has been kicked around by protestors and the media, we can honestly say that we were treated well by FERC staff, judges, and commissioners.  We never felt dismissed or marginalized.  We felt that our concerns were heard.

We wouldn't change a thing.
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5 Comments

Clean Line's Choo-Choo Runs Out of Steam

1/17/2017

2 Comments

 
"Full steam, ahead!" said the Little Engine That Thought He Could.  But when confronted with all the landowners he'd previously tied to the tracks with the hope of running them over, it turned out that he couldn't.  He didn't have enough steam.

"I can't, I can't, I can't, I can't get over these hurdles," said the Little Engine That Couldn't.  "Wheeze, cough, sputter," went the Engine.  "Where are my customers?" whined the Engine as its wheels fell off and it puffed mightily to a full stop. 

"Where are my customerssssssssss..."
KUAR reports that Clean Line has filed a motion at  U.S. District Court for the Eastern District of Arkansas in Jonesboro, asking that the Court speed up its hearing process because the lawsuit is hindering the company's progress in finding financing for its project.

KUAR also points out:
When asked in November whether the federal lawsuit will slow the project’s intended construction start following the delivery of a HVDC converter station in Pope County, Clean Line Founder and President Michael Skelly said the transmission project is moving “full steam ahead.”
Plains & Eastern isn't steaming anywhere without financing, despite claims that its "schedule" is set for construction to begin in the second half of 2017.

That's just not happening.  Clean Line has its eggs mixed up with its chickens.  While it's probably true that nobody wants to finance a transmission project with a pending lawsuit hanging over its head, the bigger problem here is that Plains & Eastern has no customers.  None.  Without customers, the project has no projected revenue.  It's just like asking for a loan when you're unemployed.  Just.not.happening.

Clean Line has neatly lined up all its own business failures in a row and blamed it all on the lawsuit.
“Utilities will have to contract for energy to deliver to their customers with specific dates in mind. A delay in this matter has the potential to delay the entirety of the project as financing institutions require a high degree of certainty – meaning a low risk of legal and regulatory obstacles – prior to committing the capital to make multi-billion dollar investments required to construct the project and the wind generation that the project will enable,” Heister continued. “Because of the interconnected nature of all of the various project participants, even small schedule delays can lead to cascading impacts.”
Then why didn't Clean Line have any customers before the lawsuit was filed?  The U.S. DOE agreed to "participate" in the transmission project last March.  The lawsuit wasn't filed until mid-August.

Clean Line can't get financing because of the lawsuit.
Clean Line can't get customers because of the lawsuit.
Clean Line's project will be delayed because of the lawsuit.
Wind farms cannot be built because of the lawsuit.
And, worst of all, any delay in the project would push back the date “on which the public benefits from new renewable energy generation" (!!!)

What generation?  I don't see any generation.  Because of the lawsuit.

That lawsuit!  It's the only reason Clean Line hasn't fired up the bulldozers yet! 

Want to be part of the winning team?  Golden Bridge, the landowner group behind the lawsuit, is still accepting new members.  Check it out!

And, hey, remember that Clean Line is having this gigantic fit in front of a federal court judge because it wants a hearing to be held one month sooner than the judge has scheduled.  One month.  A one month scheduling delay is going to make or break this project, or so Clean Line says. 

Clean Line has been trying to build this project since 2009.  That's eight years. Eight.  And suddenly one month is the difference between success and failure.  Maybe Clean Line is planning to run out of money sometime between October and November of this year and won't be around for a November court date?

And isn't it funny... the lawsuit claims that due process was never afforded to Arkansans during the DOE's Section 1222 process.  And now Clean Line wants a judge to speed up the routine hearing process as well.  Talk about adding insult to injury...

And what about those "conditions precedent" in Clean Line's "Participation Agreement" with the DOE?  These are the conditions Clean Line must satisfy in order for the DOE to "participate" in eminent domain land takings:
  1. Customers.  The project must present fully executed term sheets with customers.
  2. Executed interconnection agreements with regional grid operators.
  3. Insurance that holds the United States of America harmless for any of Clean Line's issues.
  4. Financing.  The project must have money with which to build.
So, if the Court moves the hearing date to October, will all these conditions be magically satisfied so that Mike Skelly can jump behind the wheel of his bulldozer?

Nope.

Clean Line needs to quit blaming others and own its failure.  Quit embarrassing yourself.

Update:  Oh, snap!  The judge has denied Clean Line's motion.
2 Comments

Buried Transmission Line Gets Permit:  Full Steam Ahead!

1/13/2017

2 Comments

 
ITC's Lake Erie Connector transmission project received its Presidential Permit from the U.S. DOE yesterday.

It's full steam ahead for the project!

Unlike other HVDC transmission projects that have been struggling to get their aerial routes approved for the past eight years, Lake Erie Connector sailed through approvals in just a couple years.  Why?
The ITC Lake Erie Connector is a +/- 320 kV HVDC bi-directional transmission line, approximately 73 miles in length, that would interconnect with converter stations located in Erie, Pennsylvania and Nanticoke, Ontario.

A 345kV Alternating Current (AC) underground transmission line would connect the Erie converter station to Penelec's existing Erie West substation, while a 500kV AC line would tie the Nanticoke converter station to Hydro One’s Nanticoke substation.

The majority of the transmission line would be buried beneath Lake Erie or underground using existing roadway rights-of-way. ITC anticipates the project receiving all state, federal, and provincial permits for the ITC Lake Erie Connector by Q2 2017, commencing construction in 2017, and being in service in Q4 2020.

Let's say that again:
Will overhead transmission lines be used?

No. The current project plan envisions all of the cable being installed underwater or underground.

Underground, out of sight, along public rights of way.  No significant or sustained opposition.

And a good time was had by all.
2 Comments

Dominion's Boogeyman Fails to Scare Tidewater

1/13/2017

0 Comments

 
Dominion upped the ante on its Surry-Skiffes Creek transmission project this week.  Because it has not been successful in overcoming opposition to an aerial crossing of the James River, it introduced the blackout boogeyman in the form of a remediation plan for the area, filed with regional grid operator PJM.
The so-called remedial action scheme Dominion prepared and presented this week to PJM Interconnection, the operator of the 13-state electrical grid Virginia is plugged into, would cut power to Hampton, two-thirds of Newport News, Poquoson and eastern York County if there are faults on two of the dozens of components in the Peninsula's high transmission network.
Oh no!  Blackouts, you say?

The people of the Tidewater said, "meh."
They say Dominion's been using scare tactics when it has said there could be as many as 80 days a year in which rolling blackouts are possible. Dominion says that's the number of days when demand is so heavy that faults in the system could force it to cut some customers off in order to avoid a widespread blackout.

"It appears that Dominion Virginia Power would rather continue their campaign to frighten consumers and threaten to close their Yorktown power plants," said James Zinn, a trustee with the Save the James Alliance, who argues that federal law allows the U.S. Department of Energy to order a power plant to operate in an emergency.
Well, gosh, PJM better get to altering its transmission plans in order to avoid emergency, because that's just not acceptable, and it doesn't appear that the opposition is going to fold on this one.
"If nothing else, this is consistent with their continued inflexibility to consider less intrusive alternatives for their construction of towers over the historic James River," he said.
So, what could they do instead?  Bury the line underwater?  Ya think?  Honestly, Dominion, you're behaving like a 5-year old.  "I'm gonna hold my breath until I die!"  Stop being a pimple on the ass of progress.
0 Comments

Clean Line Business Plan May Be Beyond Reporter's Grasp

1/13/2017

2 Comments

 
The Arkansas Business reporter who attempted to speak for landowners last year is back to assure everyone that the Plains & Eastern Clean Line is sure to be a favorite of the new Trump administration.  Maybe it was hard to breathe in there and he got a little confused?  Or maybe he just doesn't have enough information because he's been talking to the wrong people?

Kyle Massey insists:
... a GOP penchant for infrastructure projects and commerce-building is expected to favor endeavors like the Plains & Eastern Clean Line, a $2 billion plan for transmitting wind power across 12 Arkansas counties from Oklahoma to near Memphis.
Let's parse that statement.  Massey says Plains & Eastern is expected to be "favored."  Favored?  How is that exactly?  What might a GOP administration actually do to "favor" the project?  Does this mean that the administration will somehow step outside the law to "permit" this project?  Does it mean that a GOP administration will suddenly find a big chunk of taxpayer cash with which to build the project?  Does this mean that a GOP administration will finance the $2B project with taxpayer funds?

None of that will happen.  Because it can't happen.  The U.S. Department of Energy has already signed a Participation Agreement, in which it agrees to "participate" in the project only under certain conditions.

1.  No taxpayer or government money or loans will be used for the project.
2. The project must be fully financed before the government "participates."
3.  The  project must have confirmed customers for its transmission capacity before the government "participates" in eminent domain activities to secure needed right of way.

There's absolutely no way for any administration to further "favor" the Plains & Eastern project to assure that it gets built.

Plains & Eastern is a "merchant" transmission project.  That means that the company takes on all the market risk for the project.  If there is no market for the project, it cannot be financed and built because it has no revenue stream to pay for construction.  Only potential customers can volunteer to buy capacity and create a revenue stream.  It has no captive ratepayers forced to shoulder its costs and guarantee repayment of financing.

And Plains & Eastern has no customers.  No utilities have volunteered to become customers.  No "fortune 500 companies" have volunteered to become customers.  Fortune 500 companies do not buy power and transmission directly, but are served by their local utility franchise.  So no matter how much they may be clambering for renewable energy, the companies do not decide where it is procured, or how it is transmitted.  The utility makes that choice.  The utility has a responsibility to provide its captive ratepayers with the cheapest resource available.  So, sure, big companies do carelessly throw their names onto ineffectual letters that pretty much say nothing.  But they do so at their own risk... the risk that their customers may find their penchant for eminent domain to accomplish their corporate greenwashing goals repugnant and stop shopping at their stores or buying their products.  While it is generally accepted that "green is good," and that greenwashed companies are favored by the public, that changes when the greenwashing encourages the eminent domain taking of customer private property.  Do I want my shampoo made with green energy?  Do I want my shampoo made with green energy that hinders the productivity and profitability of a chicken farmer in Arkansas?  No, the "green" doesn't spread that far.  Maybe Unilever is going to produce, and Walmart is going to sell, new Eminent Domain Guilt Shampoo?  Lather, ruin someone's dream, rinse.  Repeat the misery.

Massey's dream is buoyed along by academia.
Academic voices say the trend toward renewables may be too entrenched to be crippled by Washington. Trump “can eliminate subsidies for solar power as well as electric cars, and he may not be very supportive of renewable energy, but ultimately technology and market forces will be the determining forces,” said Rajesh Sharma, an Arkansas State University assistant professor and expert in renewable energy technology. “Clean technology is advancing every year and costs are going down.”
Actually, the subsidies for industrial wind are already on the chopping block and were reduced 20% on January 1, with additional reductions to come every year until phased out completely by 2021.  Wind is going to get more expensive when tax credits evaporate,  not cheaper.  Economics aren't going to help Plains & Eastern.  The project failed to attract customers when the tax credits were highest, and a GOP administration is likely to further dampen enthusiasm for expensive power that utilities aren't required by law to buy.  Even our pal Mikey Skelly acknowledges that.
Skelly sees opposition to the Clean Power Plan as “probably a net negative” to his ambitious project...
Massey's prediction, masquerading as "news," holds no greater weight than the prognostication of someone else.

And with the help of Wayne and Garth we will now enter our own dream sequence...
President Trump:  "What's this Plains & Eastern Clean Line?"
Secretary of Energy Perry:  "It's a 700-mile electric transmission line that will encourage the building of thousands of new wind turbines in red states."
President Trump:  "Does it have any customers?"
Secretary of Energy Perry:  "No.  Even the previous administration wasn't capable of 'favoring' it enough to attract customers."
President Trump:  "Do the Republicans want it to be built?"
Secretary of Energy Perry:  "No.  As a matter of fact, the entire Republican delegation from the State of Arkansas is vehemently opposed to it because it is just so much federal overreach."
President Trump:  "$@$& that!  Plains & Eastern Clean Line, you're fired!"

We've all got dreams.  Some are more realistic than others.
2 Comments

FirstEnergy Needs You To Toss Them a Rope

1/12/2017

0 Comments

 
Awwww.... FirstEnergy had a bad year in 2016.
"There's blood in the water," Jones said in an October interview.

He added, "We've reduced benefits, we've reduced 401(k) matches, we froze wages. We've done a lot of things to try and offset lost revenue, but couldn't offset it entirely … We're evaluating everything we do as a company to try and find a way to close that gap. Because (what's been done so far) is not enough to get us into the position with the credit rating agencies that we need to be in."
And I'm sure Chatty Chuck took a huge pay cut and stopped wasting the company's profits on football stadium signage, too.  Wait!  What?  That didn't happen?

Well, there always selling another antique coal-fired electric generating station to captive customers in West Virginia!  I'm pretty sure they're going to try that next as a way to position themselves properly with the credit rating agencies.  Because even though FirstEnergy's money problems were of their own making, they want West Virginians to bail them out.  Again.
Pleasants, currently owned by a Mon Power sister company, Allegheny Energy Supply, is an aging, coal-fired plant that hasn’t been generating the returns investors want in Ohio’s deregulated energy marketplace. FirstEnergy CEO Charles E. Jones, on at least two occasions in 2016, told analysts the company wanted to shift plants like Pleasants that weren’t making investors enough money in Ohio into West Virginia’s regulated market, saying, “I think later this year, they’ll start (looking) at it seriously, and it’s up to (the West Virginia Public Service Commission) to decide, would Pleasants be the appropriate solution.”
And so that's what they did, issuing a narrow and completely opague Request for Proposals that could only be fulfilled by the sale of Pleasants to West Virginia regulated FirstEnergy subsidiaries Mon Power and Potomac Edison.  Once the transaction is completed, electric customers of the two local utilities will pay all the operational costs of the plant, along with a guaranteed profit.  That ought to cheer up the credit rating agencies, right?

Well, only if it happens.  Only if you allow it to happen.  What can you do?  Stay educated.  Stay tuned... 
0 Comments
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    About the Author

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

    About
    StopPATH Blog

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

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


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