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Reply Briefs Filed in PATH's Long And Winding FERC Proceeding

7/24/2015

11 Comments

 
Today was the deadline for reply briefs in the matter of the Formal Challenges to PATH's rates as well as PATH's recovery of abandoned plant, which was heard by the Federal Energy Regulatory Commission back in March and April.

Here's what turned up:

Reply Brief of Keryn Newman and Alison Haverty

Reply brief of FERC Trial Staff

Reply Brief of the Joint Consumer Advocates

Reply Brief of PATH

Th... tha.... that's all folks!  Now we wait for the Presiding Judge to issue his initial decision on September 14.  The Judge's decision must then go before the Commission for approval.  Possibly more briefs (and replies) on exception at that time.

Now go enjoy summer!  I'm going to!

11 Comments

How Much Does It Cost To Bury Transmission Lines?

7/22/2015

6 Comments

 
Ask a transmission developer proposing a new transmission line and you'll get an answer in the neighborhood of 10 times the cost of an overhead line.  (Example: $1B overhead = $10B buried)

Ask an engineer for a company proposing an underground project and you get an estimate that burial would double the cost of a similar overhead line.
(Example:  $1B overhead - $2B buried)

I've been told both of these things.  So, who to believe?  Who might be exaggerating to serve their own purposes?

Apparently it only does "almost double" costs to bury HVDC transmission.
  That's what the Department of Energy concluded in its recently released draft environmental impact statement on the ill-fated Northern Pass project.

A complete burial of the Northern Pass transmission line would nearly double the project’s cost, but reduce potential negative impacts on the environment, tourism and local property values, according to a draft report released by the U.S. Department of Energy Tuesday.

While the proposed Northern Pass project — made up primarily of overhead lines strung between Pittsburg, N.H., and Deerfield, N.H. — would be the cheapest option at roughly $1.02 billion, it would also pose the greatest environmental and visual impact, the report says.

Four of the alternatives call for a complete burial of the transmission line. Another calls for partial burial beneath Interstate 93 through Franconia Notch, or along Routes 112 and 116 through the White Mountain National Forrest.

Five call for burial along existing roads and highways, options with the least environmental impact, the report says. All of the underground alternatives carry the highest costs, ranging from $1.83 billion to $2.11 billion.
But nowhere near a magnitude of 10 times the cost.  Liar, liar, pants on fire!

In addition, a buried line provides significant benefits over its aerial cousin.
The visual impact, which includes “large industrial-appearing lattice structures,” could negatively impact New Hampshire’s tourism and recreation, the report says. And the proposed overhead route likely would cause the largest drop in residential property values and have the least economic tax benefit to host communities.

Putting the line underground, as opposed to overhead, lessens the impact on tourism, recreation, historic resources and the environment, the review says.

Burying the line requires less vegetation removal and has fewer effects on wildlife, including protected species. The buried lines are less susceptible than the overhead lines to damage from extreme weather.

Construction of the overhead line would generate fewer short-term and permanent jobs than an underground alternative, the report says.
But wait...
But, the report says, blasting during construction would generate more noise than putting the lines overhead. And burial of the line would increase the potential for erosion.
Really?  That's the only drawback?  Noise from blasting?  So, how much "blasting" would Clean Line need to do to bury its proposed transmission lines across Midwest farmland?  Little to none?  What if much of the additional cost of burial was tied to blasting up the "Granite State" to create trenches?  And erosion?  I think that could probably be handled.  Once buried, out of site, out of mind, right?

C'mon, Clean Line, get with the program and re-engineer your projects as underground lines!  How much have you spent (and moreover how much will you have to spend in the future) trying to get your lines permitted?  It would have been much cheaper (in terms of both money and time) to have done the smart thing and proposed your projects as buried lines in the first damned place!

And don't give me any of that crap about how its technologically impossible to bury long lines.  The engineer who gave me the spot on double cost estimate also told me there is no mileage limit.  He's got a lot more cred than you do at this point...

How much does opposition cost?  How much does buying support cost?  How much does lobbying to change laws cost?  How much are a whole bunch of contested eminent domain cases going to cost?  How much do repeat or additional approval processes cost?

Clean Line says its currently proposed transmission line will only add something like 2.5 cents per kw hour to the 2.5 cent cost of wind energy.  So, even doubling the project costs, it's still possible to deliver at 7.5 cents/kwh, right?  Well, unless Clean Line has been lying about the delivered price of wind via its projects...

Maybe Clean Line's projects won't be "economic" enough to provide big returns to their investors without foisting some of its costs off onto bypassed landowners by taking land as cheaply as possible through condemnation and eminent domain?

We all know that the public's appetite for "green" energy only stretches so far as their wallet.  When faced with increased electric bills for "green" energy, the majority of the public will snap their wallet shut and oppose it.  So, why would this same public expect that Midwest landowners should accept economic sacrifice and burden to keep urban electric bills low?  It's only appealing when its been greenwashed and politicized, and none of that nasty infrastructure gets planted in THEIR backyard!

And... this question bubbles up... why does the DOE's draft EIS for the Northern Pass include multiple routing options that require underground lines when DOE's draft EIS for the Clean Line Plains & Eastern project proposed NO underground options?  Are the people and environment of Oklahoma and Arkansas worth less than those in New Hampshire?  Or is it just that Northern Pass has gotten bigger, politically-connected, push back and top-notch legal help?

It's about time to recognize that the public will no longer accept the burden of overhead lines.  Anywhere.  There's a better way.  "Green" energy costs more.  Deal with it.
6 Comments

Illinois Commerce Commission Advises Grain Belt Express Public Hearings Are For Directly Affected Citizens

7/20/2015

0 Comments

 
The ICC's press release about the upcoming Grain Belt Express public hearings makes clear who should attend the hearings:
The hearings are set in communities in the western, central and eastern portions of the state in order to reach out to Illinoisans who would be directly affected by the proposed transmission line. As proposed, the line would run through Pike, Scott, Greene, Macoupin, Montgomery, Christian, Shelby, Cumberland and Clark counties.
Hear that, Clean Line?  The hearings are for ILLINOISANS WHO ARE DIRECTLY AFFECTED BY THE TRANSMISSION LINES.  They are not for bussed in, hungry, college students (which are at a premium during the summer months anyhow), and they are not for flown in company executives who stand to profit from supplying components for the project.  They're probably not even for vans full of out-of-work union guys who have no specialized skills in building HVDC transmission lines.

So, there will be none of this:
And certainly none of this:
So, for those folks who ARE ILLINOISANS DIRECTLY AFFECTED BY THE TRANSMISSION LINES, this hearing "forum" is for you!

The forums will have two parts; the first part of the forum will be an opportunity for the public to provide oral and/or written comments into the record. This portion will last for 90 minutes and each speaker will have a 3-minute time limit. After the public comment portion, ICC staff will conduct an informal question and answer session.
The dates, times and location for the Public Forums are:
Tuesday, July 28 at 5 p.m. at the Pike/Scott County Farm Bureau office at 1301 East Washington in Pittsfield.
Wednesday, July 29 at 9:30 a.m. in the Pana Junior High Auditorium, 203 W. 8th Street in Pana.
Wednesday, July 29 at 4 p.m. at the Gerald R. Forsythe Performing Arts Center, Marshall Junior High School, 806 N. 6th Street in Marshall.
Don't let Clean Line steal YOUR seat at the forum!  Arrive early, sign in with the clerk if you wish to speak, and take a seat.

Note to Clean Line:  Don't embarrass yourself again.  Just.Don't.Do.It.
0 Comments

Sprouse Brothers v. Ziff Brothers

7/2/2015

8 Comments

 
... and this one goes to Sprouse!

We're still living in America, where money apparently can't buy everything.  And that's a cheery thought!

The Kansas City Star continues its excellent coverage of the Grain Belt Express debacle in the wake of yesterday's denial of the project by the Missouri Public Service Commission. 

The Star focuses on impacted Missouri landowner Loren Sprouse, who, along with his brothers, operates a farm in Caldwell County.  Read the article and watch the video here.
A week before the vote, Loren Sprouse — along with two brothers, he farms land in Caldwell County that’s been in the family since 1919 — said of Grain Belt: “This is a giant land grab by a huge company. They (Clean Line) are a private, for-profit company trying to masquerade as a public utility.”

After Wednesday’s vote, Sprouse said: “Now we can get back to the important business of feeding America.”
The Missouri PSC's Order denying Grain Belt's application mentioned:
Clean Line Investor Corp. is a subsidiary of ZAM Ventures, L.P., which is one
of the principal investment vehicles for ZBI Ventures, LLC. ZAM Ventures, L.P. has a consolidated net worth of $500 million based on U.S. GAAP measurements. ZBI Ventures,
LLC is owned by Ziff Brothers, a multi-billion dollar family investment fund.
The Order stopped short of revealing how much of this particular $500M chunk their multi-billion dollar fortune the Ziffs have invested in Clean Line's struggling projects, but Clean Line's recent application to the Illinois Commerce Commission revealed it's in the neighborhood of $70M.  That's nearly 1/5 of ZAM's fortune tied up in Clean Line with no hope of recovery if the projects fail.  Maybe this will give the Ziffs some empathy for the Sprouse brothers, who stand to lose a huge chunk of their investment if the project is built.

And let's think about that for a second... how much potential profit is in these projects for the Ziffs if they're willing to invest such a huge chunk of their fortune?  Will they recoup their entire investment if only one of Clean Line's five projects gets built? 

So, who watched the Missouri PSC meeting yesterday?  It was lovely of Mike Skelly and Mark Lawlor to choose seats that put them within range of the streaming video camera.  Everyone got to watch them lose!  Here's what it looked like:
Schadenfreude?  You betcha!

Skelly originally took his classic "arms folded" defiant pose while Lawlor awkwardly stood in the doorway with a hang dog expression.  I guess someone told them that their body language was unbecoming for the occasion, because Skelly switched to the "hands tightly clasped between his knees" pose and Lawlor sat down to take notes.  Although, in this shot, it looks like Lawlor is about to bolt from his seat and run screaming from the room. 

So, what did Clean Line have to say afterwards?  It took forever for them to issue a press release (because the victory one they probably had prepared ended up in the shredder).  Clean Line says:
...there appears to be some confusion at the Missouri Public Service Commission about how the project will benefit Missourians.
Confusion?  Hardly.  The MO PSC's Order was clear as a bell.  It weighed the evidence and made a decision that actual benefits to the general public from the Project are outweighed by the burdens on affected landowners.

Who does that Clean Line?  Who calls a state regulatory board "confused" when they don't get their way?  This isn't boding well for another application down the road...

The profit-seeking needs of the Ziff Brothers were outweighed by the burden the project proposed to the Sprouse Brothers.

What a great thought as we celebrate America this weekend!

And let's end with a final photo of Mike and Mark, who finally managed to have a word with each other as the meeting was ending.  What do you suppose they said?
8 Comments

An Energy History Lesson

6/28/2015

1 Comment

 
Federal energy agencies are a puzzle to most people.  FERC and DOE?  What's the difference?  Is there a difference?  What do these agencies do, and how can you participate in their processes?

It's helpful to start at the beginning, with the creation of these agencies.  The Department of Energy Organization Act of 1977 reorganized a hodge podge of federal energy departments to separate energy policy from energy regulation to prevent too much coziness and to create a national energy program.

The U.S. Department of Energy was established as a cabinet-level department to deal with energy policy.  Within the DOE hierarchy, Congress also created an independent energy regulatory Commission known as the Federal Energy Regulatory Commission, or FERC.  The DOE organizational chart looks like this.

FERC was given jurisdiction over narrow and specific energy issues.  FERC is NOT a national appeals court for state energy decisions you don't like.  FERC does NOT have jurisdiction over the actions of DOE, or any other agency over which it is not specifically granted jurisdiction by Congress.  Sometimes the DOE can delegate specific authority to independent agencies like FERC, in order to work cooperatively with them to develop rules or policy over which DOE has jurisdiction.

Here's a simple list of what FERC does and what FERC does not.  If you think you have an issue that FERC should do something about, please check the list before wasting time and resources filing frivolous complaints or petitions with FERC.  If you don't understand this list, or need more information, please ask someone who does know or do some research before running to DC with your pop gun loaded with blanks.  Not only do you look silly, but you waste incredible amounts of time and resources and damage your reputation.  Federal energy regulation and policy is not a game of flinging poop on the wall to see which pieces stick.  Get educated, get your game plan organized, and target your requests with efficiency for best results.

FERC has its own set of rules that apply to matters under FERC's jurisdiction.  If your issue isn't within FERC's jurisdiction, FERC's rules don't apply.

Unless operating under the rules of a different agency that has some jurisdiction in one of its actions, the DOE operates under 5 U.S. Code Chapter 5, Subchapter II - ADMINISTRATIVE PROCEDURE.

If you want something, you have to legally support what you're asking for.  Remember, only monkeys throw poop.
1 Comment

PATH Rate Challenge and Abandonment Recovery Briefs Filed at FERC

6/26/2015

2 Comments

 
Did you think I've been on vacation for the past couple of weeks?  Hardly.  But I've been having so much fun it sort of felt like a vacation.

Today was the filing deadline for initial briefs in the consolidated FERC proceeding dealing with the formal challenges to PATH's 2009, 2010 and 2011 rates and the recovery of PATH's capital investment in the cancelled PATH project.

The briefs summarize the evidence and positions of the parties.

You can download them here:

Newman-Haverty Initial Brief
(deals with formal challenge only)
66 pages

FERC Trial Staff Initial Brief
(deals with formal challenge and abandonment)
99 pages

Joint Consumer Advocates Brief
(deals with abandonment only)
268 pages

PATH Brief
(deals with formal challenge and abandonment)
168 pages

Happy reading!  They're much shorter than War and Peace.  I think.

Why do they call them briefs?  Is this some sort of sick joke?
2 Comments

Grain Belt Express Wants MO PSC to Toll its Application

6/13/2015

0 Comments

 
Holding this proceeding in abeyance and allowing the Company to obtain such additional information and to work with Staff to develop additional production cost models would prejudice no one.
They also claim it would be "in the public interest" to allow the application to languish in limbo until Grain Belt Express can actually provide the information the Commission asked for back in February.

"The public" has been inconvenienced and financially harmed by Grain Belt Express every day of the past 2 years this thing has been an active threat to their lives and livelihood.  Targeted landowners have been living in stasis, afraid to invest in their properties, unable to sell their properties without disclosing the possible intrusion of a gigantic power line that will lower its value.  Thousands have been spent legally defending their rights.  There has been many a sleepless night, an uneaten meal, and way too much family time foregone in favor of meetings, hearings, and other related events.  These folks have been put through the wringer, but they have persevered.

Now, when denial of Clean Line's application is imminent, the company suddenly wants the Commission to slow down, after urging it to hurry up all these months it thought it was on the way to victory.

The Commission has given GBE way too many chances already.  A full evidentiary hearing was held.  The record was closed.  But, the Commission gave GBE a second chance to supplement the record months after the record had closed.  Clean Line couldn't be bothered to provide the necessary information or evidence.  Now GBE wants a third chance to get it right, and for thousands of affected landowners to continue to live in suspended animation for however long it takes GBE to get its act together.


Obviously Lawlor's threats to march right to the U.S. DOE to revive his application for federal eminent domain authority under Sec. 1222 of the U.S. Energy Policy Act was a big, fat bluff.  He's not going anywhere, except to drop to his knees right there in Missouri and beg for a third chance.

"Do overs" are best left on the playground.  Release the landowners from this corporate game-playing purgatory.  Deny the application.
0 Comments

Citizens' Groups Accuse Puget Sound Energy of Violating FERC Order 1000

6/10/2015

2 Comments

 
Yesterday, The Coalition of Eastside Neighborhoods for Sensible Energy and Citizens for a Sane Eastside Energy, et al, filed a complaint at FERC against Washington State utilities Puget Sound Energy, Seattle City Light, Bonneville Power Administration and ColumbiaGrid.  The complaint alleges that the utilities violated the Federal Power Act, FERC Orders No. 1000, 890 and 2000, and contractual obligations that the respondents made with the Commission that incorporate the referenced Orders, as well as the terms of their respective Open Access Transmission Tariffs.

Whew!  That's a mouthful, huh?  In plain English, it looks like the complainants are accusing Puget Sound Energy of trying to permit and build a transmission project that was not developed in a plan by an independent grid operator (or a reasonable facsimile, since the Northwest doesn't have a traditional RTO/ISO).

ColumbiaGrid is supposed to be taking the place of a RTO for all the named respondent utilities, and according to the complaint, the utilities promised FERC that ColumbiaGrid would serve in a role to make the area Order 1000-compliant.

The complaint alleges that Puget Sound Energy developed its "Energize Eastside" project without proper load flow studies, no study of alternatives, no RFP to evaluate alternate proposals, and that ColumbiaGrid is an entity controlled by its member utilities, including Puget Sound Energy, and does not meet independence requirements for RTOs.

The complaint also alleges that the project is not the "local load flow" project it claims to be (to escape FERC jurisdiction) but also includes a new 1500MW transmission path to Canada that fulfills a decades-old agreement about shared hydro resources.  The addition of the Canadian firm capacity also elevates the project to one that should be regionally allocated, and not charged 100% to local load in the Eastside neighborhoods, as Puget Sound Energy is attempting to do.

Sounds complicated, but the affidavit of J. Richard Lauckhart is a great read to get an easy handle on the problem here.  These guys really did their homework on FERC process and policies, and provided evidence in the form of expert testimony.  Well done!

Looking forward to seeing where this leads...
2 Comments

Why Do They Always Act So Surprised?

6/10/2015

0 Comments

 
The trade press is its own little microcosm in the media world.  This special interest, subscription only, business model dares to call itself "media."  However, the real bread and butter of trade press is selling outrageously expensive subscriptions to its target industry.  And the trade press likes to keep its "trade" happy.  Because, like, if you tick off your readers, they might cancel their subscription!  So the trade press tells them only what they want to hear... happy, happy, happy... media censorship.  If you make your subscribers look like heros in every story, they will keep buying your drivel, even if they don't believe it.

Just below trade press on the "truth in media" scoreboard is the mainstream media.  Their survival depends on entertaining the masses with what ever version of news it thinks they want to hear.  A lot of the time, mainstream media content is created by corporations.

And then you've got your regional or local news outlets, which is probably the first place you're going to see balanced stories that, well, tell the whole story.

So, I came across this teaser piece by trade press outlet Electricity Policy Today.  If you want to read the whole "story," you need to pay for a subscription.  But, for illustrative purposes here, we don't need anything more than this teaser.

Electricity Policy Today seems quite surprised that Clean Line's Grain Belt Express is "stalled at the MO PSC."  The article gushes over the fact that "hundreds of rural landowners" (and yes, they use those quotes, like it's some kind of distasteful being) have risen in opposition at the Legislature and in PSC hearings.  They finally reveal to their readers that the opposition is strong and successful and relied on representative democracy, grass-roots activism and landowner rights to score their victory.  But they are quick to bookend that with threats from GBE project manager Mark Lawlor to take his "west-to-eats wind power line" (see, I can do it too, and make fun of your editorial failure at the same time!) to the Feds and beg for them to override Missouri's decision.

That's the way it always happens.  Opposition has to work 10 times as hard as corporations to get mainstream media attention.  Sometimes they even have to stage a news-worthy event or stunt to get any attention.  Of course, that's a very thin line to walk -- attention without making yourself look ridiculous.  In the sanitized trade press world, you're pretty much locked out altogether... unless you win.  Then they talk about your victory in surprised tones.

And there they are:  The "trade" guys, scratching their heads and wondering how it was possible to get their butts kicked so hard by an industrious group of plebeians.

"Wha?  What happened?  We were supposed to win!  How did that happen?"

We happened, you dolts!

Because, you know, you really can't eat wind after all.  Thank a farmer at your next meal.
0 Comments

Dollars and Sense

6/3/2015

1 Comment

 
Has Clean Line finally reached its financial tipping point?

I'm sure the initial estimate of development costs for the company's first three transmission line projects (Plains & Eastern, Rock Island and Grain Belt Express) has long since fallen to the wayside.  So far though, Clean Line has been able to sweet talk its investors into injecting more cash when the company runs into trouble and out of money.  But, at some point, these investors are going to have to slap the checkbook shut, cut their losses and move on.  It's not like they're stupid or something, is it?

Clean Line's projects just keep running into more and more trouble.  Instead of moving forward, they're moving in reverse.

For example, take yesterday's indication from the Missouri Public Service Commission that it will deny GBE's application.  How much money was spent on that application process in Missouri?  Millions were wasted.  GBE's angry response was to threaten to revive their parked application for federal eminent domain under Section 1222 of the Energy Policy Act.

How much is that going to cost?  Many millions more!  Another 1222 application is going to very costly, in both time and money.  It's going to add several years to the permitting process and Clean Line is going to pay every penny of the federal government's cost to process the application, including a multi-million dollar NEPA environmental impact statement process.  And still, there's no guarantee.  In fact Clean Line could get several million into this process with Grain Belt Express, only to receive a denial of its other Section 1222 application currently in process on its Plains & Eastern project.  Such a denial would make continuing with Grain Belt's 1222 application a moot point, but the money will have already been spent.

And then what's Clean Line going to do?  Spend millions lobbying Congress to try to pass legislation giving the federal government the authority to usurp state authority to site and permit transmission?  It's not that easy.  It's been tried again and again over the years and has been nothing but an expensive failure.  Another dead end.

Meanwhile, Clean Line has begun the application process for its Grain Belt project at the Illinois Commerce Commission.  Silly Grain Belt has applied under the "expedited" review rule.  This means that the multi-million dollar Illinois permitting process is all going to come due and payable in the next several months (unless GBE gets lucky and the ICC dismisses their application because they're not a public utility).  And what good is an Illinois certificate without a Missouri certificate?  Illinois certificates expire two years from the date of issue.  There's just no way Grain Belt will have completed the Section 1222 process to overrule Missouri's denial before the Illinois certificate expires.

None of the other Clean Line projects are in any better shape.  Rock Island does not have eminent domain authority in Illinois, and the Iowa portion is slogging along the slow track.  New legislation in Iowa could completely derail the project before the IUB even acts.

Plains & Eastern is getting its clock cleaned in the Section 1222 process.  The U.S. DOE has completely mucked up the entire process by failing to perform its review in a legal and transparent manner.

It's becoming more and more obvious that these projects are NEVER going to happen.  It's time to quit giving money to these clowns and collapse the big top they've been performing under.

Clean Line no longer makes financial sense.
1 Comment
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    About the Author

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

    About
    StopPATH Blog

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

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


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