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Legislators Work To Protect Constituents

4/7/2016

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All too often our elected representatives head off to our state capitol, where they're surrounded by paid corporate lobbyists every day, and they forget all about us.

Not so in Iowa and Missouri, where legislators are working hard to protect the interests of the ones who elected them.

A bipartisan Iowa House yesterday passed HF 2448, an act relating to the construction, erection, maintenance and operation, or sale of specified electric transmission lines.  The bill:
  1. Prohibits bifurcation.
  2. The sale or transfer of a merchant line shall not carry with it the transfer of the franchise (permit).
  3. A company has 3 years from the first informational meeting (required as part of the application process) or its application shall be rejected.  A company shall not file another application for the same, or a substantially similar project, for 60 months.
  4. The IUB shall not grant a petition that involves the taking of property by eminent domain unless 75% of the necessary easements have been obtained voluntarily.
  5. In an application that involves eminent domain, "public" shall be interpreted to be limited to the consumers located in Iowa.
The bill now moves on to the Iowa Senate. 

The bill's sponsor, Representative Bobby Kaufmann, said, “Every day I, in this body, am going to be loyal to the landowners rather than the pocketbooks of the Rock Island Clean Line.”

Opponents of the bill said it wasn't "fair" to Texas-based Rock Island Clean Line.

Kaufmann said Rock Island Clean Line developers have kept property owners hanging for too long.

“Whose fairness right are we going to choose: property owners or an out-of-state corporation?” Kaufmann asked.

Read more about the remarkable grassroots efforts in Iowa on the website of the Preservation of Rural Iowa Alliance.

And in Missouri, a House committee hearing was held on HB 2418, a bill modifying provisions related to eminent domain power of utilities.  The bill adds the following provisions:
4. Notwithstanding any other provision of law to the contrary, the power of eminent domain shall not be exercised for any electric transmission line project if any of the following apply:
(1) Such project is proposed and built outside a regulated regional transmission planning process;
(2) Such project is not eligible for recovery of costs under a regional transmission operator or independent system operator tariff for transmission service it provides;
(3) Such project is constructed entirely with private funds and users of the line pay for the transmission line;
(4) Such project primarily involves construction of a high-voltage direct current transmission line.
5. Subsection 4 of this section shall not apply to a transmission line, wire, or cable that primarily provides electricity through alternating current and is used by:
(1) Rate-regulated electric utilities, municipal electric utilities, or rural electric cooperatives; or
(2) Electric transmission owners to provide electric service, for compensation, to the public or any entity described under subdivision (1) of this subsection.
Read more about this legislation here.

Block GBE Missouri reports that the hearing went well, with six witnesses testifying in favor of the bill.

Now that's representation of the people!
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How Much Do You Want to Pay Environmental PIGs to "Represent" You at FERC?

3/9/2016

4 Comments

 
Warning... this is going to be a long one.  Like a terrifying octopus, this issue has tentacles going in all directions.  Hopefully I can follow them all, so that you, little consumer, can follow along and perhaps act in your own interests down the road.

Let's start with the good news -- FERC has approved ratepayer funding for the Consumer Advocates of the PJM States (CAPS) to participate in PJM matters.  This is good news for consumers in the PJM region who don't have time or inclination to participate in PJM's countless stakeholder proceedings.  CAPS is made up of "state advocate offices designated by the laws of their respective jurisdictions to represent the interests of utility consumers within the service territory of PJM...".  These state consumer advocates are overworked and underfunded for all they do on behalf of residential electric customers. 

One caveat in the Order, however, says that CAPS funding may only be used for "staffing and travel costs for state consumer advocates to participate in in-person meetings and other proceedings at PJM as well as to pay professional staff and operation of the CAPS organization."  This also includes "participation in other Commission activities, such as responding to Notices of Proposed Rulemakings and participating in Technical Conferences."  CAPS funding may not be used for "(1) activities related to proceedings of state agencies;  (2) proceedings at federal agencies other than the  Commission; (3) litigation of matters at the Commission arising from the filing of Tariff or Operating Agreement changes by PJM including the filing of interventions or protests or participation in hearings or settlements; or (4) the hiring of counsel or expert witnesses to support the filings of other parties."

However, Commissioner Tony Clark dissented, stating:
This Commission has not before endorsed the policy that the activities of non-decisional
intervenor groups be funded through a dedicated utility tariff under the auspices of the FPA. Yet here we are doing exactly that. Today’s order is couched in the language of
good intentions, but I find it troubling  precedent as both a matter of policy and prudence.
Commissioner Clark said that this Order "cracks open Pandora's box," and before the ink was even dry on the Order and the Dissent, that's exactly what happened.  Clark wondered:
My public policy concern is that there is little that meaningfully differentiates these
organizations from a myriad of other state agencies and not-for-profit governmental
organizations or other interest groups that will now say, “what about my piece of the
pie?” CAPS entities argue they are uniquely situated. But aren’t state energy offices, in
their own way, also uniquely situated? What about state departments of environmental
quality? Do they, too, deserve a Regional Transmission Organization (RTO) funded
organization to finance their participation in stakeholder meetings? Furthermore, given
that CAPS includes at least one non-governmental non-profit, we now have cracked-open the lid of Pandora’s Box just a little wider yet. What is to stop any of the countless groups that intersect with the regulatory world from arguing that they are also uniquely situated to speak for any  number of communities of interest?
Which brings us to... Monday, when the very PIGs (Public Interest Groups) Commissioner Clark was concerned about filed a rulemaking petition looking for their own piece of the pie.

It's no secret that Public Citizen has been harping on FERC for years to set up the Office of Public Participation which was authorized by Congress back in 1978.  That's 38 years ago, folks.  And Public Citizen just now thought about filing a Petition for Rulemaking?  That's some stellar FERC work right there!  Thirty eight years ago, a leisure-suited Congress authorized such an office, along with a funding stream to compensate "persons under this subsection" through the year 1981.  What is new is that Public Citizen now wants its piece of the "person" pie!  And Public Citizen has brought along an entire herd of hungry PIGs to gobble up what it believes should now be a $6.5M yearly pie.  The petition was signed by 31 self-appointed PIG "advocates" for consumers and the environment, and not a state advocate office designated by the laws of their respective jurisdictions to represent the interests of utility consumers in the bunch.

The hungry PIGs are a hodge-podge of "consumer interest" groups you've never heard of, environmental organizations, "coalitions," "projects," "centers," "councils," "institutes," "partnerships," and an "investment corporation."  I've never seen many of these groups doing much of anything at FERC, and I haven't seen them litigating actual rate cases that save consumers real money.  The few I have seen poking their stick into the FERC lion cage are more interested in policy issues, such as championing environmental interests before the Commission.  These organizations are already very well funded through grants and gifts to advocate for the environment.  Do they deserve public money for carrying out their political goals?  These aren't public interest groups, they're specialty interest groups.

Let's look at just a couple on the list.  Public Citizen describes its climate and energy program as:  "Public Citizen's energy and climate program advocates for affordable, clean and sustainable energy. We safeguard families by promoting the strong regulation of energy markets, educate the public on the dangers of continued reliance on dirty energy sources, help solve climate change by promoting localized clean energy alternatives and hold large energy corporations accountable by exposing wrongdoing."  The group's Form 990s available here and here describe their Energy Program as:  "Provides information to the public on the threat of catastrophic climate change, the dangers of nuclear and fossil fuels, and the opportunities available to advance energy efficiency and develop renewable energy solutions."  And they show a whole lot of income from mysteriously unnamed donors, and grants to clean energy programs.  And they also show that Public Citizen has its fingers in a whole lot of political issue pies, not just energy.  Their "Accomplishments" page is devoid of any victories at FERC.  I'm not convinced that Public Citizen is substantially contributing to important issues at the Commission, or that any participation by Public Citizen presents a "financial hardship" for their "person."

At the other end of the PIG roll, A World Institute for a Sustainable Humanity describes itself as:  "A World Institute for a Sustainable Humanity (A W.I.S.H.) is an international nonprofit organization whose mission is to provide models and support for life sustaining activities that integrate solutions to poverty and the environment while fostering self-reliance. It was founded in March of 1995 and is registered as an NGO in fourteen countries and states."  A search of FERC's eLibrary for this organization brings up nada.  I'm not convinced they have ever done anything at FERC that contributed to any substantial issues.

This seems more like a "build the funding and they will come" pipe dream.
So, what does the 1978 law say, anyhow?
(a)
(1) There shall be an office in the Commission to be known as the Office of Public Participation (hereinafter in this section referred to as the “Office”).
(2)
(A) The Office shall be administered by a Director. The Director shall be appointed by the Chairman with the approval of the Commission. The Director may be removed during his term of office by the Chairman, with the approval of the Commission, only for inefficiency, neglect of duty, or malfeasance in office.
(B) The term of office of the Director shall be 4 years. The Director shall be responsible for the discharge of the functions and duties of the Office. He shall be appointed and compensated at a rate not in excess of the maximum rate prescribed for GS–18 of the General Schedule under section 5332 of title 5.
(3) The Director may appoint, and assign the duties of, employees of such Office, and with the concurrence of the Commission he may fix the compensation of such employees and procure temporary and intermittent services to the same extent as is authorized under section 3109 of title 5.
(b)
(1) The Director shall coordinate assistance to the public with respect to authorities exercised by the Commission. The Director shall also coordinate assistance available to persons intervening or participating or proposing to intervene or participate in proceedings before the Commission.
(2) The Commission may, under rules promulgated by it, provide compensation for reasonable attorney’s fees, expert witness fees, and other costs of intervening or participating in any proceeding before the Commission to any person whose intervention or participation substantially contributed to the approval, in whole or in part, of a position advocated by such person. Such compensation may be paid only if the Commission has determined that--
(A) the proceeding is significant, and
(B) such person’s intervention or participation in such proceeding without receipt of compensation constitutes a significant financial hardship to him.

(3) Nothing in this subsection affects or restricts any rights of any intervenor or participant under any other applicable law or rule of law.
(4) There are authorized to be appropriated to the Secretary of Energy to be used by the Office for purposes of compensation of persons under the provisions of this subsection not to exceed $500,000 for the fiscal year 1978, not to exceed $2,000,000 for the fiscal year 1979, not to exceed $2,200,000 for the fiscal year 1980, and not to exceed $2,400,000 for the fiscal year 1981.
So, any funding to "persons" is contingent upon the participation substantially contributing the approval of that person's position.  This is not an advance funding free-for-all for PIGs to suddenly access funds to create their own offices to participate in FERC ratemaking.  Funding only comes AFTER a "person" wins a case.  The proceeding also must be "significant," whatever FERC wants to presume that to be.  Such "person's" participation must also present a "financial hardship."  That's a conundrum.  If a person can only collect funding after their position is approved by the Commission, then said "person" would have already spent the money to participate, without knowing in advance if they will prevail, or whether the proceeding is "significant."  If the money has been spent without promise of funding, then how could the "person" then make a case of financial hardship?  If it's a true financial hardship, they'd never be able to participate in the first place.  For real people, every dollar they spend on lawyers and experts is one dollar less they can spend on hot dogs and tickets to the ball game.

Public Citizen then goes on to quote the Congressional Record from 1978, which makes clear that Congress intended this public participation to come from "electric consumers," or "individuals."  I don't see anything in there about PIGs.  After all, any "person" could declare that their efforts were "for consumers," and attempt to score some public funding for participating at the Commission, even utilities, or utility industry coalitions or associations, such as EEI.  Who knows what will pop out of Pandora's box?

Case in point... after blathering on about how the idea for the Office of Public Participation was based on public participation by electric ratepayers, in ratemaking, Public Citizen says this:
The Office of Public Participation is also needed to provide support to communities involved with FERC-jurisdictional hydro and natural gas infrastructure proposals.
Funny that.  The Delaware Riverkeeper Network also used FERC's failure to create the Office of Public Participation and fund intervenor costs as an example of FERC's "bias" in its recent lawsuit filed against the Commission in U.S. District Court.  While I have the utmost sympathy for individuals personally affected by fracking and pipelines, I have no respect for the environmental groups who use these folks as battering rams to accomplish their environmental goals.  That lawsuit was painful to read and I can't imagine a court wasting much time on it.  Just because funding for FERC's gas program comes from gas companies does not create bias.  The annual costs for the program are allocated to gas companies based on their usage.  The Commission would be funded whether or not they approved new pipeline applications, because gas will continue to flow.  Adding new pipelines to the stable simply spreads out the costs among a larger herd.  It does not increase FERC's "take," nor pay dividends to FERC employees to approve pipelines.  The continual attacks on FERC (both judicial and in person at the facility) aren't helping the cause.  About the only good argument in the whole lawsuit relates to requests for rehearing, and FERC has already handled that.  And that's oftentime the problem with environmental and other group participation that comes from "outside" FERC's little specialty practice arena.  It can be clueless about process, laws, and even FERC's jurisdiction to act in the first place.  I'm not sure adding more misinformed voices to the shuffle is prudent or helpful.  If you want to participate at FERC, make it meaningful.  Don't just carry on at monthly meetings, interrupting every other hearing underway in the building, because you're angry and unsatisfied with your own ignorance of the process.  Educate yourself!

And be careful what you wish for.  In discussions with grassroots groups in states with a mechanism for intervenor funding for participation in public utility cases, the same complaint comes up over and over.  They allege that well-heeled and well-connected PIGs are always first in line at the funding trough, and there is precious little left over for the folks who are actually on the front lines of energy projects and rate increases.  Oftentimes the PIGs use their funding to weigh in on the side of the utilities, especially to enable construction of renewable energy infrastructure.  PIGs don't care about you, little ratepayer or landowner.  They really don't.

Funding PIGs to carry on in a nonsensical manner at FERC is a bad idea.  Let's see if FERC actually notices a proposed rulemaking on this issue, or simply bats it aside as more PIG mischief.
4 Comments

Hannibal BPW Tables Clean Line Proposal

2/18/2016

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The Hannibal Bureau of Public Works "stepped back" from Clean Line this week.  Can we get a Hallelujah, brothers and sisters?

The Herald-Whig reports:
The Hannibal Board of Public Works has suspended talks with Houston-based Clean Line Energy Partners about investing in or using its proposed Grain Belt Express transmission line to bring wind-generated electricity to the city.

BPW General Manager Bob Stevenson told the utility's board of directors Tuesday that the BPW has decided to step back and observe developments between the company and other municipalities before moving forward.

"We just decided to sit back, take it easy for a while, and just study what's going, keep asking questions, keep researching," Stevenson said. "We've got nothing to put forward. There is no pending contract."
Good idea, that research thing.  Clean Line's claims to the BPW haven't quite added up.  Although, I do think other municipalities should observe developments between Hannibal and Clean Line before moving forward themselves, instead of the other way around.  Looks like when push came to shove, there was no contract.  Why couldn't Clean Line put its offered prices in writing? 
In other news:
BPW board members also accepted an average $36.86 per megawatt-hour bid from Florida-based NextEra Energy Resources for energy to be used in summer 2017, 2018 and 2019. Four bidders, including NextEra, submitted quotes for supplying 20 megawatts in June, 25 megawatts in July and 25 megawatts in August each year.

Stevenson said those energy blocks, which make up about one-twelfth of the BPW's demand, will cover peaks during hot summer days. He said the BPW and Chris Dawson, a representative from consulting firm GDS Associates, had discussed locking down prices now while they remain low.
Well, lookie there, that's how energy contracts are supposed to be evaluated and signed.  Because, "an agreement that would commit the utility to do nothing except be a good witness in front of the Missouri Public Service Commission and be willing to work toward a final arrangement" isn't a bid, an expert evaluation of bids, or a contract.  It's nonsense, and it's selling Hannibal short.
The Public Service Commission denied Clean Line a certificate of convenience and necessity in July on grounds that the 4,000-megawatt, direct-current line would not benefit the state's consumers and landowners. Clean Line has since approached municipal utilities, including the BPW, about participating in the project in hopes of showing regulators it has a customer base in Missouri.

Stevenson said the BPW has no deadline for making decisions related to the project despite Clean Line's goal of appearing before the commission again this year.

"Without us, they've got nothing," he said. "Just because they're in a hurry doesn't mean we have to be."
Ahh, so maybe Bob has realized that Hannibal shouldn't be such a cheap date.  Hannibal has something Clean Line desperately wants, and they shouldn't give it away cheaply.

As well, the Missouri PSC and its experts thoroughly vetted Grain Belt Express before making its determination that the project did not benefit consumers last summer.  Hannibal should consider that carefully before making inexpert, snap judgements of its own on the merits of the project.  And so should any other municipalities being courted to "be a good witness" for Clean Line, before signing up.

If the project has merit, it will swim, not sink, on its own before the PSC.  And nobody needs another Prairie State.  Good job, Hannibal BPW!

Clean Line goes home with a big, fat goose egg, as my friend Dave in Arkansas opined.  But something wonderful happened in Hannibal nonetheless.  The Hannibal Ratepayers for Smart Energy grassroots group has formed, and will hopefully continue their efforts to become involved in Hannibal's energy choices going forward.  Public participation is always a good thing!
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Hey, Hannibal... What's up chuck?

1/21/2016

2 Comments

 
Samuel Clemens, better known as Mark Twain, grew up in Hannibal, Missouri.  He once said, "We have the best government that money can buy."

And it must have been in that spirit that "top brass" (subtract consonants at your own pleasure) from Texas-based Clean Line Energy Partners descended on Hannibal this week.
Skelly said that Clean Line is prepared to make a power proposal that would represent a “fantastic deal for the city of Hannibal.”
Insert carnival sideshow music here.
For a visual depiction of the action, go here to get your poster of Michael Skelly scowling in his Dad jeans, arms crossed in defiance.

Of course, nothing is written in stone, or legally binding.

What's the pitch?
Lawlor suggested that the Grain Belt Express could potentially offer power to Hannibal for as little as 2 cents per kilowatt hour (kwh).

...the possibility that Hannibal could buy “capacity rights,” which the BPW could utilize or sell on the open market.

Lawlor said a $12.5 million investment in Grain Belt could equate to a 25 megawatt stake in the Ralls County converter station and a portion of the project's capacity, noting the utility could buy as much or as little as it wanted.
So, Mark, Clean Line is selling power now?  And at two cents per kWh?  Where's your generator?  And how is that power going to get to Hannibal?  How much would that possibly cost?  FOB Kansas, right?

And how about that mind blowing opportunity to invest $12.5 million dollars in the Grain Belt Express project?  What's the guaranteed return on that?  And what happens if Grain Belt is never built?  The entire $12.5 million dollars of Hannibal's ratepayers hard earned cash disappears forever.  You'd think Hannibal has learned their lesson about investing in energy market revenue schemes, after their recent investment in Prairie State, right?
Critics of the investment need only look at the audit’s bottom line regarding Prairie State to find areas where revenues from the sale of power generated at the plant continued to not equal the BPW’s expenses associated with the facility.
I can't imagine what the good citizens of Hannibal must be paying for power, what with all this energy market investment going on.  How much will rates go up to fund a $12.5M "investment" in Grain Belt Express for which the ratepayers may never see any benefit? 

And it wouldn't even supply half of Hannibal's energy needs, "The 25 megawatt chuck of power the city is interested in would represent approximately 40 percent of the city’s current needs."

What's a "chuck" of power?  Maybe it's this.


Is this deal really about cheaper power for Hannibal, or is it about:
What Clean Line will be seeking initially from the city is a letter of participation that the company would include in its next application for a Certificate of Public Convenience and Necessity from the Missouri Public Service Commission. The PSC denied Clean Line such a certificate in July 2015.

In a renewed effort to illustrate Grain Belt's merits to the PSC, Clean Line has approached municipal utilities about participating in the project.
Don't be a cheap date, Hannibal.  That "letter of participation" is worth a lot to Grain Belt Express.  Think of it as Clean Line's precious...
You could probably get Clean Line to pay YOU $12.5M for the letter, if you hold out for a better deal.  Now that's an energy market play with a real return!

But, will the Missouri Public Service Commission really be swayed by Clean Line investors and their non-binding "letters of participation?"  Probably not.  The MO PSC has already rejected this project once, and nothing has changed (except Clean Line's traveling carnival side show barker act at municipal power authorities across the state).  It would be foolish to underestimate the state-wide opposition to this project. 

Samuel Clemens had a lot of wise things to say.  He also said...
"It's not the size of the dog in the fight, it's the size of the fight in the dog."
My money's on the Grain Belt Express opposition.
2 Comments

Clean Power Plan Does Not Require "A Tangled Mess of Hulking, Long-range Transmission Lines"

1/12/2016

3 Comments

 
The Pittsburg Post-Gazette's "Power Source" energy news believes the Clean Power Plan will require "a tangled mess of hulking, long-range transmission lines."  Not true, and the report's "facts" are fallible.

The reporter seems to rely on energy platitudes, pasted together with quotes from people who should have been asked about the conclusions the reporter made.

Such as:
Opponents used some of those arguments to successfully derail the Potomac-Appalachian Transmission Highline, a 290-mile line from Putnam County, W.Va., to Frederick County, Md., proposed by Allegheny Energy in 2008. The Greensburg company, acquired by FirstEnergy in 2011, suspended the project after it could not convince regulators the line was necessary.
This guy calls up Steve Herling, but doesn't bother to ask him why PJM terminated the PATH project.  It's not that "opponents" proved there was no need in any state regulatory process.  It's that PJM first suspended, and later terminated the PATH project because
PJM staff reviewed results of analyses showing reliability drivers no longer exist for the project throughout the 15-year planning cycle. The analyses incorporated the continued trends of decreasing customer load growth, increasing participation in demand response programs and the recent commitment of new generating capacity in eastern PJM.
This reporter also seems to be under the impression that all transmission opposition comes from "citizens groups" who oppose transmission due to environmental reasons.
While citizen groups have fought transmission projects — often successfully — by attacking the developer’s need to build them, the environmental regulations could usher in more projects and complicate opposition.

Changing drivers of transmission
In the past, environmental groups have glommed onto transmission battles and used citizen group opposition to fuel the push on environmental grounds.  Those days are over.  This reporter seems to be the last to find out, but environmental groups are the newest and biggest fans of transmission lines.  Numerous environmental groups have intervened in favor of big, new transmission lines that the wrongly believe are "for wind."  Transmission lines are open access and it's not possible to segregate "clean" electrons from "dirty" ones.  The citizens are on their own here and that's just fine... nobody needs or wants a hypocritical environmental NGO championing eminent domain for "clean" transmission lines while simultaneously using the same issue as a reason not to build "dirty" pipelines.  Nobody takes these fools seriously anymore.  Without an army, the environmental groups are simply Don Quixote.  Tilting at their beloved windmill fantasy, but getting nothing accomplished.

It's still about need though.  And the transmission poster child the reporter chose to use is not part of any regional transmission plan and therefore has not been designated "needed."
Transmission companies see big potential for new projects, particularly from sparsely populated areas that generate wind energy to urban areas. “Just as trains carried cattle and other goods from the rural areas to urban centers, the Plains & Eastern Clean Line will carry renewable energy from the Plains of the Southwest,” states the website of one developer, Clean Line Energy of Houston, Texas.

Clean Line expects federal approval for its 700-mile Plains & Eastern Clean Line, designed to carry 4,000 megawatts of power from wind farms in the panhandle of Oklahoma. The line will terminate near Memphis, Tenn. Clean Line has four other projects in the pipeline.

“We anticipate a very busy 2016,” said company president Michael Skelly. 
And that's why Clean Line is attempting to use an untested part of the 2005 Energy Policy Act to usurp the siting and permitting authority of states and ram its project through using the federal eminent domain authority of federal power marketers.  Except that statute requires a need for the transmission in the first place.  And there is none.  Clean Line elected not to participate in the regional transmission planning processes that determine need for transmission projects.  Clean Line is nothing but a gamble -- the investors are gambling that a need for the project will develop if they can build it... but Clean Line hasn't been successful in signing up any potential customers... because they can't get their project built... because there is no need for it.  That's the real chicken/egg the reporter should be examining.

I do hope Mr. Skelly is very busy in 2016... polishing up his resume and looking for new investors for his next get rich quick scheme.

The reporter longs for
...some wind mills and solar farms in areas with constant breeze and abundant sunshine
But he's looking in the wrong place.  Even though he had a conversation with Scott Hempling about non-transmission alternatives, none of that seemed to sink in.

There's an area with "a constant breeze" located much closer to Pittsburgh than the Great Plains.  It's called the Atlantic Ocean, where wind potential is much greater.  Best of all, very little "
tangled mess of hulking, long-range transmission lines" would be "necessary to bring that renewable power from the point of generation to utilities for local distribution."

Why can't eastern states boost their own economies by harvesting renewables close to load?  The days of centralized generation are over.  Also, sunshine is abundant anywhere -- no transmission lines needed to slap some solar panels on your own roof.

This reporter needs some education.

1.  Transmission opposition by "citizens groups" won't change because of the Clean Power Plan.

2.  Speculative transmission projects for which there is no need shall not be granted state eminent domain authority to take property for rights of way.

3.  Clean Line is a merchant transmission project, not part of any transmission plan and completely unlike most other transmission projects.  Therefore, it should not be lumped in with them or used as an example of anything transmission-related.  If the CPP requires transmission, it will be planned and ordered by regional transmission organizations so that there is some surety that it will actually be built.  Clean Line is not needed, may never be built, and is driven by anticipated profits selling energy into more expensive markets, not by the Clean Power Plan.

And stop drinking the big wind koolaid.  There are no facts in it.
3 Comments

Grain Belt Express Permit Appealed in Illinois

1/5/2016

3 Comments

 
The same day that the Illinois Commerce Commission denied rehearing of its Order issuing a permit to Grain Belt Express, the Illinois Farm Bureau and grassroots group Concerned Citizens and Property Owners filed appeals with the Illinois Fifth District Appellate Court.

Grain Belt Express pretended that the ICC's denial to rehear the case "strengthens our ability to move the Grain Belt Express clean line project forward."  Huh?  The ink wasn't even dry before appeals were filed that will tie the project up in court for months, or years. But it seems that the media wasn't fooled by Clean Line's press release puffery and coverage was balanced.

But the media missed a couple of important points.

The ICC vote on the rehearing was split into several distinct topics.  On the topic of whether to grant rehearing on Grain Belt's public utility status, it remained 3-2, with the two dissenting Commissioners holding firm in their belief that GBE is not a public utility entitled to file under the expedited process reserved for public utilities.  This "strengthens the opposition's ability to move their appeal forward." ;-)

It was also enlightening to see what the ICC did with GBE's Request for Rehearing.  While the Commission altered some language to include the 345kV lines between the converter station and the substation in the permit, it declined to alter language saying that GBE was not needed, “The Commission finds that GBX has not demonstrated that the Project is needed to provide adequate, reliable, and efficient service to customers within the meaning of Section 8-406.1” (Order at 125).  Have fun with that, Clean Line!

So what does the ICC's denial of rehearing really mean?  "Case Status - Appeal - Court Action Pending."

Looks like the Grain Belt Express is still stuck at the station and not moving anywhere.
3 Comments

Clean Line's Bragging Christmas Letter

12/19/2015

4 Comments

 
Those bragging Christmas letters we receive from friends and relatives, tucked neatly inside a glittery, mass-produced holiday card -- you know you love to hate them.  It's like being gifted with an assortment of badly-written attempts at the great American novel, sometimes screamingly funny, and sometimes amazingly sad.  But rarely an accurate picture of the author's year in review.  As this article demonstrates, the reality behind even the most cheery Christmas letter can only be discerned by reading between the lines.  And it's in that spirit that I shall now read between the lines of Clean Line's bragging Christmas letter to its supporters (or people they think support them anyhow).  Yes, this is a real letter that Clean Line sent to real people, and it leaves out a whole bunch of real facts.

In its rush to gloss over its colossal failures of 2015, Clean Line creates what reads like an alternate universe.  You may hardly recognize it.  But, I assure you that the quotes in red are straight out of Clean Line's holiday letter.  The green quotes are my attempt to crack the door and let a little reality in by including the parts of the story that Clean Line carefully omitted.  Does Clean Line really think the recipients were fooled?


Clean Line Energy has had a busy year, making progress on all of our projects. We are writing today to provide you with a brief update about our efforts to modernize the electric grid and bring more clean energy to communities.
Progress?  Does this mean you're actually permitted to build at least one of them?  No?  Of course not, there's been no real progress. 

You're not "modernizing the grid."  You're proposing to build a completely separate "grid" using 100-year old technology to transport energy from centralized generators to remote users.  A really modern grid isn't a grid at all, but many small microgrids that can either interconnect to share resources, or island themselves off during emergencies or grid outages.  You're not building that, Clean Line.

There aren't any "communities" that are asking you to bring them "more clean energy."  In order to bring "more" of something, you'd have to actually be supplying that commodity in the first place.  Clean Line still doesn't have any customers in any "communities."
First, we’ve been advancing the Rock Island Clean Line through interconnection studies, surveys, commercial development, and other work.  Additionally, we are pleased to share that we are moving through the regulatory process at the Iowa Utilities Board (IUB). On November 30th, we filed a motion to set a procedural schedule that will move the Rock Island Clean Line forward in Iowa in a timely manner, and will allow for a decision from the IUB as early as the end of 2016. We look forward to adding wind energy to the list of Iowa’s top exports.
Advancing?  That would indicate some sort of forward progress, however RICL has been stalled for the entire year in Iowa.  Clean Line is NOT "moving through the regulatory process at the IUB."  Filing a motion proposing a procedural schedule that allows bifurcation of the hearing process, when RICL's prior requests for bifurcation have been turned down, twice, is nothing but wishful thinking.  What was it ComEd's witness said about you, Clean Line? 

“Listing the number of transmission projects that have successfully achieved financing….is tantamount to my listing the members of the violin section of the Chicago Symphony  Orchestra as evidence that I will certainly become a member of the violin section of the orchestra if I follow the same regimen that they did. “ ComED/Lapson, p. 12

If wishes were horses, beggars would ride.

Clean Line's "procedural schedule" won't be "moving" anywhere unless the IUB approves it, and that doesn't look very likely.

By the way, how are you going to add wind to the list of Iowa exports, Clean Line, when much of the wind developed for your project is actually located in South Dakota, Minnesota or Nebraska?
Clean Line’s other projects are making great strides, as well.

The Grain Belt Express Clean Line (will deliver wind energy from Kansas into Missouri, Illinois, Indiana, and other states), has received regulatory approvals in three of the four project states, with  approval in Illinois last month.

Err... you forgot to mention that Grain Belt Express was DENIED by the Missouri PSC in July.  It doesn't mater how many other states "approve" GBE, unless you're planning to bypass Missouri entirely.  Without approval of the Missouri PSC, Grain Belt Express isn't happening.

You also forgot to mention that numerous requests for rehearing were filed in Illinois, including one from you, Clean Line.  Did the ICC issue you a worthless CPCN full of mistakes, Clean Line?  Awwwww.....


Go ahead, tell your supporters about how unlikely it is that GBE will ever be built at this point, Clean Line.  The truth shall set you free!

And, the Plains & Eastern Clean Line (will deliver Oklahoma wind energy into Arkansas, Tennessee, and other states) received its Final Environmental Impact Statement from the Department of Energy in November, bringing the project one step closer to construction.
Except the final EIS doesn't actually do anything without the DOE's approval to "participate" in your project under Sec. 1222 of the Energy Policy Act, Clean Line.  So, it's not like you really "stepped" anywhere.  And now you've managed to go and tick off Congress, who holds DOE's purse strings.  Probably not a good idea, Clean Line.
As you know, building multi-state, interregional transmission lines is a lengthy process that will bring long-term benefits.  The Rock Island Clean Line will enable $7 billion of new wind energy development that will power about 1.4 million homes with low-cost clean energy each year. We appreciate your continued support as we move through the permitting process.

Best,
Hans, Beth, Amy, Colleen and the Clean Line Energy Team
It sure is a "lengthy process."  In fact, you've been at it for 6 years now, haven't you, Clean Line?  And you're no closer to building any of your proposed lines than you were on the first day.  Don't you think that maybe, just maybe, you should have concentrated on building just ONE of your proposals, to see if you could get it off the ground?  Instead you've been shooting into the dark, hoping you'll eventually get lucky and hit something.  Probably not a good strategy.  Just sayin'.

Ya know what?  Wind and transmission is going to go right on being built without you, Clean Line, because you're really not necessary.  Or special.  Seems like you've made yourself obsolete by biting off more than you could chew and spreading your resources too thin over the past several years.  Arrogance is a sweet, sweet liar, but a liar just the same.

Quit pretending and wasting your investors' money, Clean Line.  Playing transmission company and terrorizing thousands of Midwesterners may have been fun for you over the past several years, but it's time to end this farce.  Stop.  Go away.  Go find another get rich quick scheme.  This one's timed out.
And just in case "Hans, Beth, Amy, Colleen and the Clean Line Energy Team" wonder if the recipients of their bragging Christmas letter are poking fun at them behind their backs.... how do you think the letter ended up at StopPATH WV Blog?  (Colleen?  Who is Colleen?  Is that some new minimum wage intern?  Run, Colleen, run!)

And because Clean Line's letter moved me so deeply that it has caused my heart to grow three sizes today, I would like to take this opportunity to wish all the Grinches at Clean Line a similar epiphany.  Love of home doesn't come from a store, love of your home means just a little bit more...
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Exciting Event for "Community Group Representatives"

12/10/2015

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There they go again.  It's almost time for the 10th Annual (yes, a whole decade of participatory goodness!) Best Practices in Public Participation for Transmission Projects Conference.  Unfortunately, there's no thrilling website contest this year.  That idea seemed to die on the vine after the inaugural year when EUCI's hand-picked website judges selected Clean Line's Rock Island transmission project as the most engaging, creative and useful website for sharing project information with the public.  And how prescient -- the RICL project is still bumping along trying to get approved, after being rejected by 85% of the affected landowners in Iowa.  Just imagine where they'd be without that great website!!

Anyhow, EUCI recommends attendance at this conference for "community group representatives."  Because transmission opposition groups need to learn how to be best participated with, so they can fall for the strategies and methods transmission developers use to positively engage community group stakeholders and overcome project obstacles, such as community group stakeholders. You will leave this conference with practical tools and techniques that can be immediately implemented within your own organization to improve the efficiency and effectiveness of the transmission developer's public participation program, and, you know, fall for their crap and start supporting the transmission project that's going to ruin your property.  What's not to like?  It will only cost you $1,595 plus travel, lodging and expenses in Phoenix for a couple days.  So, get those banana muffins in the oven and get busy raising your registration fees today with a bake sale down at the community center!

And what's on the echo chamber agenda this year? 

Crafting a Comprehensive Stakeholder Communications Plan for Your Transmission Project, presented by Pepco, the company whose merger with Exelon was rejected by the DC Public Service Commission this year.  Maybe they should have spent more time crafting a comprehensive regulatory communications plan for their merger?  But I'm sure their transmission project communications plans are spot on!

Or how about Public Outreach in the Pre-Permitting Stage of a Transmission Project, presented by Holland & Hart?  Here you can find out how to anticipate political objections and make sure your purchase of a permit can withstand appeals.

And then there's Case Study: Conducting Public Outreach on a Unique 500 kV Underground Transmission Project by So. Cal. Edison.  I'm guessing this will be a really short one, since underground transmission projects are usually supported by the public without a bunch of political glad-handing, front groups, or advocacy purchases.

And here we go again with the cutsie-poo topic names that have previously gotten EUCI in trouble with Mayberry --  It's Geek to Me: Using Visual Design to Break Down the Technical Language Barrier.  In other words, Mayberry is stupid and can't handle more than three words and a picture.  Although, I do usually advise community groups to use the same tactics to design their messaging materials.  But then again, the public doesn't expect community groups to present their material in any kind of professional fashion that gives off an aura of technical authority.

And don't miss this!  Case study -  CapX2020 Projects:  Public Outreach Lessons Learned Along the Way.  Xcel Energy is going to tell you how they built a whole bunch of new transmission by creating a non-controversial permitting process. 
CapX2020 is a joint initiative of 11 transmission owning utilities in Minnesota, North Dakota, South Dakota, and Wisconsin to upgrade and expand the electric transmission grid to ensure continued reliable and affordable service. The five 230 and 345 kV projects provide needed transmission capacity to support new generation outlet, including renewable energy. CapX2020 includes electric cooperatives, municipals and investor-owned utilities. The CapX2020 lines are projected to cost more than $2 billion and cover nearly 800 miles. When discussions and planning activities started in 2004, the institutional environment for planning for large scale transmission expansion was not mature and major issues such as cost allocation and recovery were unresolved. The diverse coalition of CapX2020 utilities, environmental groups, renewable energy developers, regulators and others was able to agree on regulatory reforms that addressed many of the issues at the state level. Meanwhile, MISO, through stakeholder processes was able to address issues related to cost allocation and recovery. Extensive public engagement activities were effective in building support for the projects and allowed for a timely and relatively non-controversial permitting process.  It was during construction that some of the most difficult challenges were encountered. In this session, you will hear some of the details of how these issues were successfully addressed as the projects near completion on schedule and on budget.
It's like they had absolutely
no
opposition
at
all!

Amazing!  Maybe next they can re-write some history books to erase awful things like Hitler and Osama Bin Laden, too?  I'm looking forward to Xcel making this world a better place through revisionist history!

But, wait, there's so much more!  Hear ATC explain how it "manages" public fear of EMF and stray voltage issues, even though it's a public perception issue that cannot be alleviated through additional industry studies.  And Tampa Electric Co. will tell you how to "successfully address project opposition."  I wonder if that includes begging?  On their knees?

Arizona Public Service advises how to make those pesky round opposition pegs fit into square utility holes:
In the business of siting electric utility infrastructure, opposition is the norm rather than the exception. While customers typically love an electric utility's product, they almost universally loathe the infrastructure necessary to deliver that product. In this session, we will discuss how to:

Acknowledge a customer's concern

Discern when a customer's concern cannot be resolved

Steer an opponent toward providing constructive input

Be credible

Become unflappable
...because angry opponents are so easily "steered" by utilities.  Does that require the use of a bee smoker or a stun gun?

Well, one thing's for certain.  It's warm in Phoenix in January.  I hope all the utility yahoos have fun in the sun because they're unlikely to learn anything useful.
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Would My Purchase of Voluntary RECS Through "Green Power Programs" Like Arcadia Power Save the Planet?

11/23/2015

7 Comments

 
Lately, I've been bombarded with advertisements from a company named Arcadia Power that claims I can power my home with 100% clean energy, reduce my environmental impact and change the way America consumes its energy.  Those are some pretty big claims!  Can stock photos of children running through a field of golden grain showing (either real or photoshopped) wind turbines really save the planet?  Is this really a "community wind" program?  I was intrigued, so I peeled back the wrapper to see what was inside.
After all, the ad encourages me to "learn more," doesn't it?  The first place I started "learning more" was by clicking the ad to end up at Arcadia Power's Facebook page.  I asked them where they sourced their renewable energy certificates (or RECs) and how much they paid.  After all, I'd like to know what renewable energy projects I'm supporting, and what the mark-up is on the product Arcadia buys and re-sells to consumers.  In answer to my question, Arcadia told me I could find the answers to my questions on my "dashboard."  But, I don't have a dashboard.  In order to get one, I'd have to sign up as a customer of Arcadia.  That sort of defeats the idea of caveat emptor, right?  So, I asked more questions.  And what did I get for my trouble?  Arcadia not only refused to respond to my questions, they also removed or hid them from view and banned me from any further postings on its Facebook page.  I guess they have decided they don't want me as a customer.  Go ahead, check Arcadia's Facebook page out.  Be sure to click to see all the comments on its postings -- you can't see them!  The vast majority are hidden from public view.  I'm guessing I'm not the only one who asked questions Arcadia would rather remain unasked.  And, right there, I lost all faith in this company and its promises.  But, never fear, I'm quite capable of educating myself to get the answers Arcadia refused to give me.  And Arcadia's rudeness and evasiveness gave me the warm fuzzies that further fueled my curiosity!
So, what does Arcadia propose to sell me?
Arcadia Power will buy renewable energy to match your usage, ensuring that an equal amount of clean energy is getting on the power grid.
Arcadia Power buys renewable energy?  Or do they merely buy renewable energy certificates?
...we buy Renewable Energy Certificates (RECs) on behalf of residential and business customers, and sometimes we source our own RECs from projects we directly invest in.
Oh, so Arcadia doesn't really buy renewable energy.  It's not an electric company.  It buys RECs and resells them to consumers as a way to feel good about offsetting my carbon footprint.

But, does it work?

First, I needed to understand what RECs are.  A REC represents the social and environmental benefits of a megawatt hour (MWh) of clean electricity generated.  It does not represent the actual energy generated.  A clean energy generator has two income streams derived from production of clean energy.  One income stream comes from the actual energy produced, which is sold to users on the grid.  A second income stream is derived from the sale of RECs.  RECs can be sold either bundled with the actual electricity produced, or unbundled from the electricity and sold separately.  So, if a company like Arcadia tells me that I'm using the clean energy represented by the unbundled REC, am I really?    Didn't someone else purchase and use the actual clean energy produced, without spending additional money to buy the associated REC?  I learned that RECs aren't really energy at all.

Why is there any market for created products like RECs?  Because utilities are required by law in many states to make sure a certain percentage of the power they purchase for their customers comes from alternative sources.  These individual state laws are called Renewable Portfolio Standards, and every state has its own unique version.  A utility can meet its state RPS requirement by purchasing RECs.  Ahh.... so now I've found the purpose of RECs!  So a utility doesn't really have to purchase alternative energy to meet state RPS requirements, it can simply purchase the "social and environmental benefits" of alternative energy?  Well, sort of.  Many states put some sort of qualifiers on what RECs count towards RPS compliance.  Certain types of generators, certain locations for generation.  Many states contain a requirement that some or all RECs purchased for compliance must come from sources in the state, in the region, or physically able to be used by the utility taking the credit.  Apparently this is what causes unbundling of RECs from the actual energy produced.  A utility is only going to buy those RECs it needs for compliance.  Therefore, the RECs necessary for compliance in any given state or region are the most valuable.  After that, the value of the REC can decrease sharply, because nobody needs to purchase it. 

Not all RECs are created equal.  In a state with substantial renewable/alternative energy supply, there will be many more RECs created than needed for RPS compliance.  There's no real market for these RECs after utilities purchase what they need for compliance.  Therefore, they end up in the "voluntary" REC market, where entities purchase them for the right to say they "use 100% clean energy."  The intent is that one KWh of dirty electricity used is offset by one KWh of clean electricity generated somewhere else in the world.  Some experts contend that this is just wishful thinking and that voluntary REC purchases are nothing but "green washing."
RECs are not offsets and the voluntary green power market does not reduce emissions from electricity generation.

The problem is that green power markets, as currently structured, cannot achieve this goal. They were created on a fundamentally flawed foundation—that buying a virtual attribute can substitute for physically consuming a specific good or service. Further, the incentives of the participants in green power markets—power companies selling RECs, intermediaries marketing them, organizations certifying them, and companies buying them—are aligned, leaving no one with a strong interest in questioning the claims being made.

With these concerns in mind, we are challenging everyone to question their own assumptions about voluntary green power markets.
That also seems to be the conclusion reached by this expert:
Nonetheless, claims that voluntary RECs reduce carbon emissions are highly suspect. Their direct effect is not to reduce net emissions, but to shift responsibility for emissions between parties. They only reduce net emissions, if at all, indirectly, by demonstrating demand for clean energy and by providing a modest boost in revenue to the clean electricity industry.

It's weak tea. Buy voluntary RECs if you like, they're cheap as hell, but have no illusions that by doing so you are offsetting your emissions. It's like tossing your supermarket change into a Unicef jar. Whatever, it's better than not doing so, but you're not "curing poverty."
This article talks about "additionality," which is roughly described as the income stream flowing to the generator from the sale of RECs.  If the RECs are good quality RECs needed by utilities for compliance, or bundled with the electricity as part of a PPA, then the RECs provide some real value that could help that particular generator be financed and built.  However, if the RECs produced by a generator are unbundled voluntary junk RECs that are now selling as low as a buck or two, then the sale of RECs doesn't add the "additionality" that provides a significant income stream to the generator.  If you're buying cheap RECs in the voluntary market, you're buying junk that doesn't do a thing to offset your carbon footprint or increase the use of renewables.

So, voluntary junk RECs in oversupplied markets are selling for a buck?  Some Texas utilities are giving away free electricity, too, in order to deal with the glut of wind energy produced in the state that peaks at night, when electricity use is lowest. 

If an unbundled REC can be purchased for a buck, how much is a company like Arcadia charging to resell it to consumers like me? 
We offer a flat-price premium of $0.015 per kWh for 100% Wind Energy in all states except for Oregon and Washington state.
One REC equals 1 MWh of electricity.  It takes 1,000 kWhs to equal 1 MWh.  Therefore, Arcadia is charging a flat rate of $15 per REC.  If Arcadia is buying voluntary RECs for one dollar each, then the company is adding a huge markup by reselling them to you and me.  Since Arcadia couldn't or wouldn't answer questions about where it sources its RECs and how much it pays, then I have to assume they are buying the cheapest unbundled RECs they can find from places very far from my east coast home.

I can come to no other conclusion than to think that this scheme sounds like something P.T. Barnum would sell at a trashy carnival.  Somebody's getting rich somewhere, and it's not the generator.  I don't want to increase my electric bill by any unnecessary amount, so I won't be signing up for Arcadia Power.  They can quit bombarding me with advertisements now.  Decision's made.

But here's the part that really, really concerns me:
Arcadia Power pays your local utility directly and provides you with a consolidated statement each month that combines your local utility charges with your clean energy from them.

Arcadia Power simplifies your life by providing every customer with automatic billing – either with a credit card or direct debit from your checking account. We provide you with an easy-to-read e-statement every month and you never have to worry about missing a payment!
Arcadia will somehow take over your regulated electric bill and you will no longer receive a bill from your electric provider (don't worry though, I'm sure you'll continue to receive those exciting offers for Exterior Electrical Wiring Protection Plans from HomeServe.)  So you will no longer know how much electricity you use, when your meter was read, how many days are in your billing cycle, or receive notification about rate increases and other information from your provider.  Instead you'll get a "consolidated" monthly bill from an unregulated company.  If you have a billing dispute with Arcadia, your public service commission can't help you.  What happens when you have a dispute with the amount your electric company bills you, such as when they neglect to read your electric meter for years on end and then send you a "catch-up" bill totaling thousands of dollars?  Arcadia pays your bill for you each month and then automatically deducts that amount from your credit or debit card, without your authorization.  While you could dispute an outrageous bill directly with the power company and set up a payment plan, you lose that privilege once you sign up for Arcadia Power.  Your electric company bills.  Arcadia pays.  Then you pay.   Is Arcadia marking up your local electric bill, too?  This loss of control of a regulated service makes me very, very nervous.  We'll have to see what happens when unregulated companies insert themselves between regulated entities and the consumers they are required to serve by law.  I'm sure there are plenty of unique state electricity tariff provisions related to billing that can be violated by an unregulated entity like Arcadia Power. 

Do educate yourself before allowing your carbon footprint guilt to toss spare change in the climate change Unicef jar each month in order to save your soul.  Make sure your clean energy dollars aren't going to buy P.T.
Barnum a yacht and his own, private island in the Caribbean.

7 Comments

The Week Clean Line Imploded

11/20/2015

0 Comments

 
There's probably more than a handful of folks down in Houston this morning falling to their knees thanking their makers that today is the last day of this week.  What else can happen?  The day's not over yet!!!

Each one of Clean Line's Midwestern projects suffered a setback that caused media backlash at some point this week, and the victories for affected landowners just keep piling up.

First, landowner groups in Illinois came out undaunted about the ICC's approval of the Grain Belt Express project last week.  Because of the scathing dissent of two ICC Commissioners regarding the legalities of Clean Line's permit, appeal seems quite likely.  And quite likely to be successful.
Block Grain Belt Express President Dave Buchman said, “We are disappointed by today’s decision but it was not unexpected. It is imperative for members of the opposition to remain united in our common goal of preserving property rights.” Buckman is anxious to review the order so that the group may formulate a plan of action. They have many avenues of defense still available, such as appealing the decision because the ICC violated state law by allowing Clean Line to file under an expedited permitting process for public utilities, although Clean Line is not a public utility. Additionally, Buckman advises that it is crucial to remember that if landowners stick together, the eminent domain process will be significantly more difficult, if not impossible, for Clean Line.
And in Missouri, the Missouri Landowners Alliance announced its victory in Caldwell County Circuit Court:
Opponents of Grain Belt Express recently won another significant victory in their efforts to block construction of a proposed mega electric transmission line through Missouri. Last month, the Caldwell County Circuit Court found that a project franchise initially granted by the County, but later rescinded, was void. Under Missouri law, Grain Belt Express must have the franchise of all counties crossed in order to build its project.
 
 Last year the Missouri Landowners Alliance (MLA) filed a petition in the Circuit Court of Caldwell County, asking the Court to find that the franchise supposedly granted by the Caldwell County Commission to Grain Belt was void and/or unenforceable.  The franchise would have allowed Grain Belt to build its line on and over the public roads of the county.
 
On October 7, the Circuit Court issued an Order finding in favor of the MLA.  The time for Grain Belt to appeal that Order has now passed.  Therefore, as a practical matter, Grain Belt now has no legal authority to build its proposed line across Caldwell County.  And Grain Belt would have no such authority to build, even if it could somehow persuade the Missouri Public Service Commission to reverse its decision earlier this year that denied Grain Belt a Certificate of Convenience and Necessity.  Grain Belt must obtain authorization not only from the PSC, but also from the County Commission in each of the Missouri counties where it plans to locate the line.
 
Grain Belt’s only apparent hope for building the line through Caldwell County would be to convince the County Commission to reissue a new franchise for the proposed line.  Given that the County Commission supported the MLA in the Caldwell County Circuit Court case, the MLA is optimistic that the County Commission would reject any such overtures from Grain Belt. A survey taken last year for Grain Belt revealed that the citizens of Caldwell County overwhelmingly oppose the proposed transmission line.
 
Grain Belt could conceivably try to salvage this project by somehow re-routing the line around Caldwell County, into other neighboring counties.  But given Grain Belt’s claim that the optimal route for the line is through Caldwell County, that option would seemingly raise a host of problems for Grain Belt.

The Grain Belt project is spearheaded by a Houston-based, investor-owned company with the goal of transmitting energy from Kansas to the richer eastern markets. After a lengthy court battle, in July the Missouri Public Service Commission issued an order finding that Grain Belt Express has failed to meet, by a preponderance of the evidence, its burden of proof to demonstrate that the project is necessary or convenient for the public service.      
 
Recently, the Illinois Commerce Commission granted Grain Belt permission to build in Illinois, leaving Missouri as the only holdout.  Jennifer Gatrel from grassroots group Block Grain Belt stated, “The decision by the Illinois commissioners is in no way final. There will be an extensive appeals process, which the opposition has an excellent chance of winning. We are all very grateful for the two brave commissioners who, in their dissent, outlined why it was illegal for Clean Line to be allowed the expedited permitting process available for public utilities. Their support will be invaluable in the appeal.”
 
Russ Piscotta, President of Block Grain Belt Missouri, stated, “We have beat them once and we will beat them again as many times as necessary. We have spent this time preparing our strategies and are ready to once again defend ourselves. Overall, as a grassroots group, we are doing excellent. We need to remember that Clean Line's goal is to dishearten us. Our goal is to prevent the precedent of a private company getting access to eminent domain. We are doing great so far and will continue to win. We simply cannot afford to lose. Many thanks to the thousands of devoted landowners who have sacrificed much. We are all in this together, and together we will succeed!”
Next up, the Illinois Third Appellate Court scheduled oral arguments on the Illinois Landowners' Alliance appeal of the ICC approval of the Rock Island Clean Line (RICL) project.  The press release also mentioned:
In Iowa, the fate of RICL is equally uncertain. RICL has directed the Iowa Utility Board to suspend all work on their application. In spite of 18 months of land agent activity, less that 15 percent of the easements have been acquired and opposition remains strong.   

Carolyn Sheridan, president of the grass roots organization Preservation of Rural Iowa (PRIA) commented,  “We have a strong legal team and support continues to grow as they and we monitor all aspects of this proposed project. There is no indication that landowners will change their opposition to the misuse of eminent domain." 
This came back to bite Clean Line on Thursday, when the press somehow got the idea that they'd previously been lied to.  Never lie to reporters!  They eventually find stuff out.  Such as the fact that Clean Line quietly asked the Iowa Utilities Board to stop reviewing its application for RICL back in the spring.
Those closely monitoring the project say they were told months ago it had been put on hold. Land agents haven't been in the state for months.

Iowa Republican Gov. Terry Branstad, a supporter of the line, said at a wind energy conference in September that the plan had "kind of been placed on hold right now." Clean Line Energy Partners spokeswoman Sarah Bray said the next day that the project was "certainly still moving forward," with biological studies, wind resource assessment and commercial discussions.

Bray struck a different tone in response to an inquiry on Thursday.

"Given the unique regulatory structure in Iowa, we are currently assessing ways to move the project forward and continue easement negotiations without incurring significant financial and regulatory risk," she wrote in an email.
This caused a whole bunch of weasel words and backpedaling by Clean Line... and more inaccurate and whiny claims by the company spokeswoman.  Bray also whined that the IUB regulatory process would cause the company to spend "tens of millions" of dollars to acquire land with no guarantee that their project would be approved.  Not true!  The IUB requires that a company seeking a transmission line permit submit certain information for each property it may take by eminent domain.  Because Clean Line's land acquisition in Iowa has been such a failure (only 17% of needed easements have been acquired to date) Clean Line doesn't want to do all the work required to take the remaining 83% of the needed easements.  The law doesn't require Clean Line to own all easements up front, it could just as easily acquire signed option agreements to purchase easements if the project is approved by the IUB.  But, the fly in that ointment is that the landowners are having none of it.  So, when Bray says that the company's negotiations with landowners "have been very positive," she's spinning like crazy.

Meanwhile, down in Arkansas, Clean Line's release of an "economic study" of the benefits of its Plains & Eastern project for Arkansas was a major flop.  First of all, most people realize the study is nothing but cooked numbers created from Clean Line's data plugged into a generic spreadsheet that calculates numbers that don't jive with the economic data included in the Environmental Impact Statement released by the DOE.
A controversial electric transmission line project pushed by Houston-based Plains & Eastern Clean Line with the regulatory process challenged by members of Arkansas’ Congressional delegation would create a $660 million impact to Arkansas’ economy, according to a University of Arkansas report.

When asked about the UA economic impact report, Sen. Boozman said the issue is not the impact, but with the process and the potential cost to Arkansas ratepayers.

“Arkansans are not opposed to building needed infrastructure projects, but questions remain about whether this particular project is needed. No Arkansas utilities have signed up to purchase power from the line,” Boozman noted in a statement sent to Talk Business & Politics. “There are questions about the long-term benefits and costs to the state of Arkansas. Not only should a transmission project be necessary, but the state must be given an opportunity to review and approve it – just as it has always has in the past. When DC bureaucrats force a project on the state, as they have in this instance, the harm and costs may not be properly addressed.”

A statement from Rep. Womack’s office to Talk Business & Politics raised a question about who funded the UA study.

“Our concerns about the project are not based on whether Clean Line can commission a favorable study, but rather if the federal government should be able to supersede a state’s right to decide to license a utility and allow the use of eminent domain on behalf of a private company,” Womack said in the statement.

When asked about the perceived credibility of a study commissioned by Clean Line, Deck provided the following statement: “One of the things that our Center does for a wide variety of organizations is estimate economic impacts. Clean Line came to us to understand how its expenditures in Arkansas will affect the state’s economy. We very carefully looked at how much direct expenditure would be made and how the supply chain and personal expenditures that will result from that direct investment would impact the state. For this kind of study, there is no way to estimate economic impact without considerable input from the companies that are involved.  And, of course, companies are the most interested in understanding their own particular economic impact. So, for economic impact studies, you will almost always find that the economic impact generator is the funder of the work.

“As always, economic impact should be considered a single piece of the puzzle as we live in a complex world. But, it is an important piece.”
Landowner opposition groups say the report doesn't address their concerns:
Jordan Wimpy, attorney for Arkansas Citizens Against Clean Line Energy, said Tuesday, “At this time, the primary concern of our clients is Department of Energy’s review of and potential participation in a project that meets no identified or documented transmission need. This is particularly concerning when the federal government’s involvement will circumvent normal state level review and may well include the use of federal eminent domain to condemn the property of private landowners in order to benefit a private, for-profit transmission company.”

Alison Millsaps, spokeswoman for Block Plains & Eastern Clean Line, said, “Again and again, Clean Line and their supporters attempt to focus solely on economic development in regard to Plains & Eastern. The people who make up the opposition to this line aren’t against economic development, they’re against the use of eminent domain to further what is essentially private economic development.

“Dangling big numbers doesn’t always make a proposal necessary or legal. We believe both of those issues will ultimately be determined in a court of law, not by a study on construction benefits,” she said.
Flop.  Flop.  Flop.

So, let's recap.  Clean Line's RICL project is dead in the water and there is no federal override over the IUB's permitting authority.  RICL's Illinois permit is being appealed.  Clean Line's Grain Belt Express project is blocked by counties in Missouri, and will most likely be successfully appealed in Illinois.  Clean Line's Plains & Eastern project just keeps gathering the ire of the State of Arkansas and nobody is buying the manufactured "benefits" of the project.

The only thing moving forward here is bad press.
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    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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