Transmission as a Market Enabler:  Today's "conservative" approach to transmission planning exposes customers and other market participants to greater risks and costs because by understating the benefits of and risks addressed by transmission, valuable investments in transmission facilities are either not made or delayed.

State Regulatory Viewpoint on Transmission Developments in the Region

State Regulators will share their perspectives on:
Balancing priorities
The role of stakeholder involvement
How different states are looking at the challenges involved to collaborate with other states
The benefits and challenges that competition for regionally cost-shared transmission projects creates for the PUCs and the ratepayer.

Adam McKinnie, Chief Utility Economist, Missouri Public Service Commission

Communicating with the public is a critical element to successfully building new transmission line projects. Strategic communication requires teams to go beyond traditional outreach tools by embracing new techniques including zip-code targeted social media ads (Facebook and Twitter), electronic communication, videos, online comment collection, and Story Maps. For the busy public, an online open house provides access to open house materials, information videos, interactive maps, and input opportunities. With tight project budgets, it's time to embrace new tactics to communicate and stretch dollars and gain the input necessary to identify smart routes and communicate with all stakeholders throughout the project construction process.

Illinois is home to two of Clean Line's projects, the Rock Island Clean Line and the Grain Belt Express Clean Line. The Rock Island Clean Line received its regulatory approval from the Illinois Commerce Commission (ICC) in November of 2014. The Grain Belt Express Clean Line filed its application with the ICC this April. This presentation will provide an overview of Clean Line's approach to developing multi-state, direct current, transmission lines to deliver renewable energy to market.

“All our other grant awards come with letters of congratulations, including reporting requirements and specifications on how the funder would like to be recognized in Rec Center publicity,” she said, noting that the CCJCA award “came with no such letter.”

Morann said her board had recommended “that we apply for it (the CCJCA grant) and then wanted to see what the conditions were.”

“We were never able to discern the conditions” and whether they included giving public support to the CCJCA and Northern Pass, Morann said, “and after the check had been cut and I attended the ceremony at the request of the board of directors, the board met (Thursday) and decided to return the money.”

The money came by way of the Coös County Jobs Creation Association, which was created by Eversource, formerly known as Public Service of New Hampshire.

John Gallus, who chairs the Coös County Jobs Creation Association and is a former state senator and representative from Berlin, said there were absolutely “no strings attached” to the CCJCA awards, other than they be used to create or keep jobs in Coos County.

While Eversource is the financial resource behind it, the jobs creation association is independent, said Gallus, who is disappointed that the recreation center returned the grant.

“They knew where the money came from,” Gallus said. “The grants aren’t based on how anybody feels about Northern Pass and nowhere on our application did it say you had to sign up to great feelings about Northern Pass. We would give money to the biggest opponent of that project if they were creating jobs in Coos County.”

Eversource has awarded grants to improve cellular service, and in founding the jobs creation association, it provided the entity with $200,000 in seed money while also pledging $7.3 million more if and when the transmission project is approved and built.

NERC has filed a settlement for your  [Commission] review and approval in NP15-31 regarding Entergy. The settlement
involves six separate violations for two reliability standard requirements. The total penalty is $55,000. These violations had durations of multiple years.

This violation is classified as Medium/Moderate on the VRF/VSL Table, which would associate to a base penalty range of $4,000 to $100,000 pursuant to Appendix A of NERC ROP App 4B.

By my math, that is eight years and twelve days, or 2,934 days. Therefore, the base range should be $11,736,0004 to $293,400,000.

But that effort was criticized by the Consumer Advocates Division, which said the move set a bad precedent and weakened the traditional rate making policies of the PSC, where nearly all facets of a utility’s business were considered in a single rate case.

At that time, Jackie Roberts, the CAD director, said allowing electric companies to assess additional surcharges to customers’ bills for tree trimming programs was just the most recent step in a trend toward companies filing a number of smaller rate cases.

According First Energy’s testimony, the company is expected to receive an 8.19 percent return on the cash expenditures under the program before taxes.

In these cases, Roberts said the commission needs to weigh what is needed for the utility to provide safe and reliable service against the customers interest in having reasonable rates.

“On its face, it certainly appears this filing would fail that test,” she said.

Gov. Earl Ray Tomblin has no plan to appoint a third member to the West Virginia Public Service Commission, even though several people have expressed interest in the position or recommended others they believe would fit the post.

Emails and communications obtained through a Freedom of Information Act request show that numerous people have contacted the Governor’s Office since January, asking Tomblin to confirm them for the post or to consider their preferred candidates.

The list of people seeking the governor’s attention include a former state senator, a city mayor, a retired engineer, a member of the state’s rural water association, a managing member at one of Charleston’s largest law firms and a lobbyist for First Energy, the parent company of MonPower and Potomac Edison, two of the state’s largest electric utilities.

An undated note left for the governor shows that Sammy Gray, the state affairs director and a registered lobbyist for First Energy, called to recommend two people for the commission spot. According to the note, Gray called to let Tomblin know that he supported Mike Castle, the Department of Environmental Protection’s director under Gov. Cecil Underwood, and Sam Cann, a former Democratic state senator from Harrison County, for the seat.

When contacted about his recommendations, Gray sent the request for an interview on to communication officials at First Energy.

“We believe both individuals possess solid experience with policy and energy matters that would help them make rulings in complex regulatory cases,” Todd Meyers, MonPower and Potomac Edison’s external communications manager, wrote in an email response. “Of course, the ultimate decision on who is appointed rests solely with the governor.”

First Energy’s recommendation of candidates for a utility commission, which ultimately regulates the company, is not out of the ordinary, according to Meyers.

“In the past, we have recommended individuals whom we believe to be qualified candidates for similar positions, both in West Virginia and elsewhere in our service territory,” Meyers wrote. “Again, others ultimately make the decisions on who is selected.”

In an email from April, Michael Basile, a managing member at Spilman Thomas & Battle, a Charleston law firm that represents clients like the West Virginia Energy Users Group in front of the PSC, asked the governor to consider attorney Susan Basile, his wife.

In the 1990s, Michael Basile worked for Gov. Gaston Capterton, the Attorney General’s Office, the West Virginia Development Office and later assisted in the transitions of Gov. Bob Wise and Gov. Joe Manchin. Basile, who has served as chairman of the Charleston Area Alliance and the Charleston Regional Chamber of Commerce, also is a registered lobbyist at the state capitol, where he has represented companies like DuPont, Chevron, Chesapeake Energy, DIRECTV and Dish Network.

In his email, Basile credited his wife’s qualifications and said she was a “big fan/supporter of GERT,” apparently referencing an acronym for Governor Earl Ray Tomblin.

Amy Swann, director of the West Virginia Rural Water Association, suggested the governor should consider one of her longtime colleagues and former PSC employee, Dina Foster.

Swann said Foster — now the manager of the Pea Ridge Public Service District, in Cabell County — has first-hand experience in utility issues and has the personal characteristics needed to make a good commissioner. With so many important issues being decided by the PSC, Swann said, Foster would be a valuable addition to the commission.

When Bill Wooten, a former Democratic state senator from Raleigh County, contacted the Governor’s Office earlier this year, he was hopeful he would be appointed.

With his experience in utility regulation from a legal and legislative policy perspective, Wooten thought he was qualified for the position, and he believed in his ability to weigh the needs of utility companies and their customers.

John Manchester, the mayor of Lewisburg, also submitted his credentials for consideration.

Manchester, who previously worked for the Tennessee Valley Authority and has dealt with utility regulation as Lewisburg’s mayor, said his experience has prepared him for the position.

“I pride myself on being a mediator, a man who tries to find solutions to issues,” Manchester said.

Allan Tweddle, a resident of Kanawha City and a semi-retired engineer, put his name in after having several people ask him to apply.

In his communications with the Governor’s Office, Tweddle listed a long list of people who could testify to his “commitment” and “open-mindedness.” While Tweddle worked with Southern California Edison, an electric utility on the West Coast during his career, he said he has absolutely no connection to any regulated utility in the state.

“We urge you to appoint a new commissioner as quickly as possible so that this investigation can be resolved,” Cathy Kunkel, a member of the Advocates for a Safe Water System’s steering committee, wrote in a letter to the governor in April. “Furthermore, we hope that anyone you appoint to the Public Service Commission will have experience in utility regulation and be independent of West Virginia’s major utility interests.”

"While the utilities are experts at running their business, it doesn’t always mean that they are right,”  said Jacqueline Roberts, director of the consumer advocate division.

The Consumer Energy Alliance (CEA) is a nonprofit organization and a front group for the energy industry that opposes political efforts to regulate carbon standards while advancing deep water and land-based drilling for oil and methane gas. The CEA supports lifting moratoria on offshore and land-based oil and natural gas drilling, encourages the creation and expansion of petroleum refineries and easing the permitting process for drilling. The group also says it supports energy conservation. CEO portrays itself as seeking to ensure a "proper balance" between traditional non-renewable and extractive energy sources and alternative energy sources. The group also supports construction of the Keystone XL Pipeline.

According to Salon.com, which obtained over 300 emails of personal messages between lobbyists and Canadian officials, the CEA is part of a sophisticated public affairs strategy designed to manipulate the U.S. political system by deluging the media with messaging favorable to the tar-sands industry; to persuade key state and federal legislators to act in the extractive industries' favor; and to defeat any attempt to regulate the carbon emissions emanating from gasoline and diesel used by U.S. vehicles.

A front group is an organization that purports to represent one agenda while in reality it serves some other party or interest whose sponsorship is hidden or rarely mentioned. The front group is perhaps the most easily recognized use of the third party technique. For example, Rick Berman's Center for Consumer Freedom (CCF) claims that its mission is to defend the rights of consumers to choose to eat, drink and smoke as they please. In reality, CCF is a front group for the tobacco, restaurant and alcoholic beverage industries, which provide all or most of its funding.

Of course, not all organizations engaged in manipulative efforts to shape public opinion can be classified as "front groups." For example, the now-defunct Tobacco Institute was highly deceptive, but it didn't hide the fact that it represented the tobacco industry. There are also degrees of concealment. The Global Climate Coalition, for example, didn't hide the fact that its funding came from oil and coal companies, but nevertheless its name alone is sufficiently misleading that it can reasonably be considered a front group.

The shadowy way front groups operate makes it difficult to know whether a seemingly independent grassroots is actually representing some other entity. Thus, citizen smokers' rights groups and organizations of bartenders or restaurant workers working against smoking bans are sometimes characterized as front groups for the tobacco industry, but it is possible that some of these groups are self-initiated (although the tobacco industry has been known to use restaurant groups as fronts for its own interests).

“Unfortunately, virtually all energy projects face at least some level of opposition. But, in most cases, the opposition comes from the vocal few who stand in the way of the silent majority who see these necessary projects providing tremendous job and economic development opportunities on many levels. The EDJ Alliance will help taxpayers, energy consumers, landowners and businesses to voice their opinion to elected officials so that they embrace the opportunities associated with energy development.”

Support landowners in Arkansas and Oklahoma!  Support energy infrastructure!  Support the Plains & Eastern Clean Line!

We need your help!

America's energy infrastructure needs your help!  Lobbying efforts at the white house level have inhibited the passage of an energy infrastructure project beneficial to citizens and landowners in Arkansas and Oklahoma!

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Support energy infrastructure, land owners, and the Plains and Eastern Clean Line project by simply clicking the link below to sign the petition!  Every click makes a difference!

It is absolutely imperative to demonstrate support as a citizen!  The future of America's energy infrastructure is in your hands!!

Ryan Scott, Outreach Director

Since 2005, Ryan has provided strategic advice to clients across a number of industries with a focus on the oil and gas sector in particular.

While working as an attorney, before joining HBW, Ryan focused on commercial litigation, often representing business clients in contract disputes.  Prior to practicing law, Ryan worked at Deloitte & Touche’s Strategy & Operations Consulting practice.  While with Deloitte, he worked with clients such as Bristol-Myers Squibb (BMS), developing and delivering Financial Reporting & Legal training to a BMS executive team.  Ryan evaluated Finance function processes to improve and transform them leading up to a major SAP implementation for Wal-Mart.

Ryan received a B.A. in Economics from the University of Southern California, and a JD – MBA from Case Western Reserve University in Ohio.  Ryan is licensed to practice law in Illinois and is a member of the Illinois State Bar Association.

MR. SCOTT: My name is Ryan Scott;
R-y-a-n, S-c-o-t-t. I'm here as a resident of Illinois and representative of Consumer Energy Alliance. We're a trade association representing virtually every sector of the economy from trucking, to organized labor, to energy producers. The reason I'm here to speak in favor of Rock Island is simple. Consumer Energy Alliance and I support this project because it represents an important piece of the energy puzzle to supply consumers with affordable and reliable energy.  Anyone who plugs in their smart phone into an electrical outlet, fires up their television to watch the Bears or perhaps a better football team or just uses their air conditioner will benefit from this project. The bottom line is in the United States demand is increasing. As one of the previous speakers stated, according to the Department of Energy and Energy Information Administration, forecasts of 25 percent increase in demand for electricity over the next three decades are expected in the United States. At the same time, the supply of electricity is expected to decrease due to aging plants and tightening Federal regulations. Many coal-fired power plants will be shuttered in the coming decades. In Illinois coal, which we expect to be decreasing in production, actually makes up approximately 40 percent of the State's energy base level. So that's an important piece of the puzzle that will no longer be available to Illinoisans. For all the reasons stated above and in order to meet Illinois' energy needs, the Consumer Energy Alliance and I support the Rock Island Clean Line project. Thank you.

“The project is too important to Missouri’s energy future not to pursue,” Clean Line Energy officials said, adding that the state’s ruling also deprived the rest of country of low-cost, clean energy."

“We continue to be disappointed by the lack of respect shown by Clean Line to landowners and citizens of Missouri,” opposition leader and farmer Jennifer Gatrel said Thursday. “They have been told no in every way possible and yet they persist in attempting to override the will of the people and the decision by our commissioners.”

"To bring Illinois forward in clean energy, we need dedicated direct current lines here in our state," said Taylorville's Patty Rykhus.

The GBE production modeling studies do not support the GBE allegation that the Project would result in lower retail electric rates for consumers.

Shelby County landowner Clint Richter said that, "it's not that we're not for renewable energy, but we're against a private company coming in and taking land that's ours for their own private gain and I think that's what is really happening here."

WAND-TV's Ed Cross asked, "why is that such a concern?"

"Well it's a concern because I think all of us know what it's like to work hard to save up money to buy land to something that's special and important to you and to have someone come in and basically say 'hey I want that, I'm going to take that land, and I'm going to make some money off it,' I don't think that sits well with a lot of people," added Richter.