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S. 1017 Wants to "Improve" Interstate Electric Transmission Facilities

5/16/2015

6 Comments

 
Brace yourselves, Americans, Congress is tinkering with energy policy again!  No good can come of this.  And some idiot has introduced a whole new Sec. 216 (16 U.S.C. 824p) aka Section 1221 of the Energy Policy Act of 2005 that's even worse than its first iteration.

The original, Section 1221, designated the Secretary of Energy to conduct an electric transmission "congestion study" and designate "National Interest Electric Transmission Corridors" (NIETCs) every three years.  Transmission proposed in these designated corridors
was subject to "backstop" permitting by the Federal Energy Regulatory Commission (FERC) in the event a state withheld approval of an application for a permit for more than one year, or lacked the authority to permit the project.

Section 1221 was promptly deconstructed in two federal courts.  When FERC proposed that "withholding approval" included a denial, and that meant it could override a state's denial of an application, the 4th Circuit determined that "withheld approval"
excludes a state's denial of an application, preserving state authority.  In addition, the 9th Circuit determined that DOE did not properly "consult with states" before designating NIETCs, and therefore it vacated the corridors DOE had set in 2009.

Last year, DOE made a half-hearted attempt to produce the 2012 "congestion study," but was resoundingly smacked down by a whole bunch of comments, and hasn't done a thing since.


In practice, Section 1221 has been an abject failure
.

However, the new Section 216, carried to Congress by Sen. Martin Heinrich (D-NM), attempts to fix all that by giving FERC authority to overrule a state denial of a transmission permit and use federal eminent domain authority to take private property.  It also tosses NIETCs out the window as a means to identify worthy transmission projects and replaces them with an RTO/ISO finding that the project is "needed."


Good news:  The new Sec. 216 does not apply to Clean Line in its current form.

Bad news:  The new Sec. 216 will encourage a whole bunch of new transmission projects of questionable necessity, and landowners along existing corridors and/or those owning "open farmland" are always the first targets identified on the ol' transmission routing Etch-A-Sketch.


So, let's look at what the new Sec. 216 says:

(B) FEDERAL AUTHORITY.—The Commission may authorize, in accordance with subsection (d), construction of a high-priority regional transmission project that the Commission finds to be required by the present or future public convenience and necessity and in accordance with this section if--

“(i) a State--

“(I) fails to approve construction and authorize routing of a high-priority regional transmission project not later than 1 year after the date the applicant submits a completed application for authorization to the State;

“(II) rejects or denies the application for a high-priority regional transmission project;

“(III) authorizes the high-priority regional transmission project subject to conditions that unreasonably interfere with the development of a high-priority regional transmission project contrary to the purposes of this section; or

“(IV) does not have authority to approve the siting of the high-priority regional transmission project; or

“(ii) the developer seeking a certificate for construction under subsection (d) does not qualify to apply for State authorization to construct a high-priority regional transmission project because the developer does not serve end-users in the State.
So, FERC can "authorize" a transmission project if a state denies an application or conditions approval in a way the transmission developer doesn't like.  That's not "backstop" or secondary authority, it's usurping state authority in its entirety.  A state must approve, or else.  So, why even bother with the fan dance of state applications at all?  That's just a big waste of time and money.

Tell ya what... if FERC ends up with authority to overrule state transmission permitting decisions, there's going to be a lot more "turn-offs" for Commissioner Norman Bay, because the protestors will have moved "from pipelines to Order 1000."  *Insert laughter here*


Second problem - how these "special" high-priority regional transmission projects are determined:
(1) HIGH-PRIORITY REGIONAL TRANSMISSION PROJECT.—The term ‘high-priority regional transmission project’ means an overhead, submarine, or underground transmission facility, including conductors or cables, towers, manhole duct systems, reactors, capacitors, circuit breakers, static VAR compensators, static synchronous compensators, power converters, transformers, synchronous condensers, braking resistors, and any ancillary facilities and equipment necessary for the proper operation of the facility, that is selected in a regional transmission plan for the purposes of cost allocation under Order Number 1000 of the Commission (or any successor order), including an interregional project selected under that plan.
That's it -- mere selection of and inclusion in a regional transmission plan makes a project "high-priority."  Ummm... does Heinrich know that RTOs include hundreds of projects in their regional plans each year?  "High-priority" over what?  Transmission projects that aren't in a regional plan?  Those are few and far between because they're nearly impossible to build (ain't that right, Clean Line?)  So, every project is going to be a "high-priority" project in this brave, new world?

It's quite obvious that S.1017 intends to "fix" everything that went wrong with the original Sec. 216, including the flawed NIETCs and the ability of a state to deny an application for a transmission project that did not serve its citizens.  But, let's ask ourselves, does it really need fixing?  State approvals aren't the problem with new transmission, it's federal approvals and studies that muck up and delay transmission plans.  In addition, Congress has resolutely refused to make electric transmission siting and permitting a federal responsibility, and will most likely continue to do so.

There seemed to be little love for controversial legislation like S.1017 at Thursday's Senate Energy and Natural Resources Committee hearing.  But, you know how Congress is... they get up to all sorts of hijinks if you don't keep your eye on them, so this bears a bit of babysitting.

One more thing before I wrap this up... where did this legislation come from?

The original Sec. 216 got its purpose from:
(4) In determining whether to designate a national interest electric transmission corridor under paragraph (2), the Secretary may consider whether--
(A) the economic vitality and development of the corridor, or the end markets served by the corridor, may be constrained by lack of adequate or reasonably priced electricity;
(B)
(i) economic growth in the corridor, or the end markets served by the corridor, may be jeopardized by reliance on limited sources of energy; and
(ii) a diversification of supply is warranted;
(C) the energy independence of the United States would be served by the designation;
(D) the designation would be in the interest of national energy policy; and
(E) the designation would enhance national defense and homeland security.
Nothing in there about renewable energy, right?

Now take a look at the purpose of the new Sec. 216:
(a) Policy.—It is the policy of the United States that the national interstate transmission system should be guided by the goal of maximizing the net benefits of the electricity system, taking into consideration--

“(1) support for the development of new, cleaner power generation capacity, including renewable energy generation located distant from load centers;

“(2) opportunities for reduced emissions from regional power production;

“(3) transmission needs driven by public policy requirements established by State or Federal laws (including regulations);


“(4) cost savings resulting from--

“(A) reduced transmission congestion;

“(B) enhanced opportunities for intraregional and interregional electricity trades;

“(C) reduced line losses;

“(D) generation resource-sharing; and

“(E) enhanced fuel diversity;

“(5) reliability benefits, including satisfying reliability standards and guidelines for resource adequacy and system security;

“(6) diversification of risk relating to events affecting fuel supply or generating resources in a particular region;

“(7) the enhancement of competition in electricity markets and mitigation of market power;

“(8) the ability to collocate facilities on existing rights-of-way;

“(9) competing land use priorities, including land protected under Federal or State law;

“(10) the requirements of section 217(b)(4); and

“(11) the contribution of demand side management (including energy efficiency and demand response), energy storage, distributed generation resources, and smart grid investments.
Oh well, lookie there, big wind is reason #1, 2 & 3 for this new legislation.  This isn't about what's good for the people or the environment.  True democratic energy is relegated to reason #11, just an afterthought.  This legislation is designed to line the pockets of big wind and their big transmission developers, and appears to have been written by the funders of their big front group, "Americans for a Clean Energy Grid."  There are no real "Americans" participating in this farce -- it's nothing but a trade group masquerading as a grassroots movement.  Tawdry and unconvincing, but it appears Heinrich was eager to be their legislative minion.  ALEC ain't got nothing on these big green shysters.
6 Comments

Pizza, Ponies, and Prostitutes!

5/12/2015

2 Comments

 
Let's get the profitable infrastructure project party started!
A landowner from southeast Iowa today said he has recorded proof a land agent for the proposed Bakken Pipeline offered to get him an 18-year-old prostitute if he’d grant access rights to his property so the pipeline may pass through.

Hughie Tweedy of Montrose said he recorded two of his conversations with the land agent.
“On these recordings you will hear evidence of my senior pipeline representative offering me not once, not twice, but three times the sexual services of a woman,” Tweedy said, “the last time being a $1200 teenage prostitute.”


Hmm... wasn't it less than 2 weeks ago that Bakken Pipeline owner Dakota Access was investigating different accusations against its land acquisition company?
“If anybody knows of anyone who’s been dealt with unfairly,” Boeyink says, “get the names to me and we will deal with it swiftly.”
I'm thinking Boeyink didn't move too "swiftly."  Or maybe he's been a whirling dervish but simply can't keep up with the unsavory activities of his hired land agents.

Whether it's offering ponies and prostitutes to landowners in exchange for easements, or pizza parties and puppy chow to college students in exchange for signatures on petitions of support, buying public support for infrastructure projects is big business! 

And who do you think is first in line for the free cheese?
“If an old junkyard dog like me was offered the sexual services of little girls to get my hackles down, I wonder what was offered to the powerbrokers of this state to gain their support for silence,” Tweedy said. “Shame, shame, shame.”
Can't add anything to that wisdom.
2 Comments

Iowans Take a Stand on Eminent Domain for Private Gain

4/29/2015

0 Comments

 
Great news out of Iowa yesterday!  Legislation targeted to restrict the use of eminent domain by private companies not serving Iowans advanced as hundreds of landowners and other stakeholders gathered to speak out at a subcommittee meeting at the Capitol.

NPR has the story.  Listen to the audio, it's better than the print version.

Several landowners spoke out about abusive practices of land agents attempting to secure right-of-way.

“I've heard this from other landowners being told the same thing,” Murray says. “Right-of-way agents are saying this is inevitable so you better take the easement deal before you.”
A spokesman for Bakken crude pipeline company Dakota Access said what the companies always say when faced with the transgressions of their shifty land agents:
“If anybody knows of anyone who’s been dealt with unfairly,” Boeyink says, “get the names to me and we will deal with it swiftly.”
Yada, yada, yada, we will fire any land agent who violates the "code of conduct."  Tell me, if land agents were regularly subjected to firing for using abusively coercive tactics to secure easements, why does it still happen with such regularity?  I don't think I believe it.  I think it's merely window dressing for instances where a land agent is caught by a landowner in a pack of lies.  I think that companies routinely look the other way when violations occur, as long as easement agreements are being filed.  Because for every one unscrupulous land agent that gets reported in the media, there are probably hundreds of others that got away with it.  I have heard numerous horror stories about transmission right-of-way land agents, continuing up until the present.  Where there's this much smoke, there is certainly fire.

The Sierra Club seems to be backing off its hypocritical support of Clean Line transmission projects, while simultaneously opposing pipelines as an abuse of eminent domain.
Wally Taylor of Cedar Rapids, a lawyer for the Iowa chapter of the Sierra Club, said his organization is worried about an "extreme risk to property and the environment" if the pipeline project proceeds. There is no doubt that oil spills will occur and it will be many years before the land can be farmed again, he added.

It's also clear that if Bakken crude oil is transported through Iowa, it will be shipped from Illinois onto the world petroleum market via the Gulf of Mexico, Taylor said. "This is all about private property. It isn't about benefiting Iowa or the nation," he said. Similarly, the Rock Island Clean Line would not provide a way for Iowans to connect to the line or to obtain energy from the transmission facility, he added.
That's right, Sierra Club!  Clean Line does not provide a way for pass-thru states to benefit from its projects!   The projects also destroy the environment and economy of pass-thru states and won't actually shut down any coal plants.  Not one!  Sierra Club should really get its act together here and stop worshipping at the alter of grant funding and renewable energy make-believe.

Clean Line's spokesperson tried to get the committee to believe the company plans on acquiring more than 90% of the easements it needs voluntarily. 

Paula Dierenfeld, representing Clean Line Energy Partners, said her company currently has obtained voluntary easements from about 15 to 20 percent of property owners and has a goal of obtaining "well in excess of 90 percent" voluntary easements. But she questioned the proposed requirement to obtain 75 percent voluntary sign-ups before eminent domain can be requested. She said a company could spend millions of dollars on obtaining easements without even knowing whether a project could move forward. She asked whether any businesses would support that idea.
Paula must be new.  Clean Line has obtained all the voluntary easements it's going to get, even with the hard sell tactics reported by Mr. Murray.  15%.  That's it.  The rest is a fairy tale.  The  people of Iowa aren't buying what you're selling.  You know, Paula, risk is a big, big part of being in the merchant transmission business when you don't have an order to construct the project from a regional transmission authority.  Maybe you should ask your bosses at Clean Line why they're supporting the company spending millions of dollars on obtaining easements without even knowing whether their project could move forward?

Way to go, Iowa!
0 Comments

Remembering Bill Howley

4/29/2015

4 Comments

 
UWUA Local 304 recently shared a heartfelt tribute to West Virginia energy activist Bill Howley, who passed away last week.

You can get the details here.

My condolences are also with the Howley family at this difficult time.

To honor Bill, I'm going to tell you all a Bill story.  It's a little insight into his wicked sense of humor and the fun we managed to have even when the PATH transmission line was breathing down our necks.  And it's a story Bill liked to tell often, with a chuckle and grin on his face.

In early 2011, just before the PATH project was put into abeyance, I was browsing PATH's website looking for something or other.  I happened to notice that one page had a link to see what others were saying "in the news" in support of PATH.  The link was supposed to click through to PATH's "Coalition for Reliable Power."

The "Coalition for Reliable Power" was a front group Allegheny Energy had created to build the appearance of public support for its TrAIL project.  It consisted of a tri-state "coalition" of supporters, with subgroups for each affected state (Pennsylvania, West Virginia and Virginia).  The "Coalitions for Reliable Power" had a website, created by PR spinners Burson Marsteller. 
This is the link new PR company Charles Ryan had designed into PATH's website
to see what others are saying about PATH "In the News."

However, shortly after the PATH applications were filed with the state agencies in 2009, Charles Ryan and PATH redesigned their whole coalition organization.  Instead of one coalition with state-specific subgroups, PATH created three individual websites, one for each state, and attempted to pretend there was grassroots support for the PATH project.  New websites were created for these "coalitions."  The original "Coalition for Reliable Power" website was eventually abandoned, when its registration expired.  However, Charles Ryan never updated the link on PATH's website.

So, in early 2011, PATH's website link to see what others were saying about PATH "In the News" was clicking through to a dead link -- the domain name was for sale!

And an idea was born!

Working with Bill and fellow PATH opponent and domain name queen Shelly Channell, we concocted a plan to buy the "Coalition for Reliable Power" web domain name and slap up a website touting competitor Dominion's Alternative One.  Shelly did the buying and pointing of the domain name, Bill built the website, and I registered the business name "Coalition for Reliable Power" with the WV Secretary of State.

Then, when someone browsing PATH's website clicked on PATH's link to see what others are saying about PATH "In the News," they ended up at our new Alternative One site.  Alternative One was a plan by Dominion to simply rebuild several transmission lines in West Virginia in order to increase transmission capacity, and cost one-third as much as PATH.  Ultimately, Alternative One is what caused the cancellation of PATH, and has since been built with little fuss and opposition.

So, we chuckled and waited.  How long would it take PATH to notice that it was now hosting a link to an opposition website?  I guess we had a little too much fun with that and the increased traffic must have sounded some alarms at Charles Ryan Associates, because someone at the agency clicked through to our Alternative One site about a week later and then removed the link from PATH's website.

We figured it wouldn't be long before our friends at PATH found the Alternative One site.  But, that's not what happened...  apparently Charles Ryan didn't mention the whole incident to PATH.  I mean, why admit your failures, right?

We thought it was important for Charles Ryan to tell its client what had happened, and that it was made possible by Charles Ryan's failure to monitor and update PATH's website in a timely fashion, a task it was being paid handsomely to perform.  Charles Ryan seemed to be keeping a secret from its client!

We did the only thing a parent would do when a sneaky child wasn't being honest... we set out on a journey to make Charles Ryan fess up.  "Charles Ryan has a secret" went viral!  People from all over started following along, and learning about PATH in the process.  We even created a sort of scavenger hunt, with clues, and encouraged followers to help uncover Charles Ryan's secret.  And, of course, PATH was also dying to know what the secret was, but couldn't figure it out either.  Only after a reader used his/her noggin to puzzle this out from the clues and post it on the blog, did PATH manage to follow the trail of breadcrumbs to the Alternative One site.  PATH was cancelled just a few short weeks later.

And how we laughed! 

This is how I will remember Bill.  Rest in peace.
4 Comments

Trust Grain Belt Express?

4/24/2015

2 Comments

 
Silly!  But that's exactly what Grain Belt Express expects the Missouri Public Service Commission to do -- issue a permit for the project and then trust Grain Belt Express to later meet all the requirements for a permit.  In the words of the attorney for one of the intervening landowner groups:
Even though the Commission gave GBE a second chance to provide the additional information the Commission said it requires in order to make a decision in this case, GBE did not provide the requested information. Much of the requested information—for example, the RTO interconnection studies—will not be available for some time, perhaps years. And, GBE may never be able to get the required consents from all of the county commissions. GBE’s general attitude is summed up thusly: Trust us—we will give you the information only after you give us our CCN.
As you may recall, instead of making a decision on the application of Grain Belt Express for a Certificate of Convenience and Necessity after going through all the motions of a contested case (discovery, testimony, evidentiary hearing), the MO PSC issued an Order demanding more information from the applicant.  This would be additional evidence submitted after the hearing record had closed.  This generates due process concerns, and the PSC had asked the parties how they wanted to deal with this submission of additional evidence.

The response of of Show Me Concerned Landowners points out that Clean Line didn't actually submit the information ordered -- in many instances, it submitted excuses for not providing information, claiming that it would provide the necessary information AFTER the MO PSC issued the CCN.  Clean Line seems to overlook the fact that much of this information is REQUIRED in order to issue the permit in the first place!  No information, no permit.  It's as simple as that.
The Commission should not allow GBE to play this “which comes first—the chicken or the egg” game. Show Me recommends that the Commission deny GBE’s Application without prejudice. GBE is free to refile its Application after it obtains all of the relevant information and documentation that the law and this Commission require.
The Missouri Landowners Alliance, another landowner group, took a different approach to this permitting circus:  Asking that the entire legal process be repeated in order to allow this new evidence to be examined and rebutted by the other parties.  That should only add... oh... another year or so to the permitting process?

But wait, Clean Line is whining about the amount of time this is taking!  It's already been more than a year! 
The Commission’s supplemental procedure should be scheduled with consideration given to the time that has already elapsed in this case. The Company filed its Application for a Certificate of Convenience and Necessity on March 26, 2014, over 12 months ago. Staff and other parties conducted extensive discovery regarding the Company’s Application, testimony, and schedules. The Commission held eight local public hearings, which occurred on August 12 and 14, and September 3 and 4. Three rounds of pre-filed testimony occurred, and the Commission conducted five days of evidentiary hearings (November 10, November 12-14, and November 21).
...and then the Commission ordered GBE to submit new evidence after the record had closed.  Return to "Go!"

United for Missouri, another citizens' group, thinks the whole idea of asking for more evidence after the record is closed isn't legal in the first place and the PSC should just deny GBE's application outright:
UFM recommends that the Commission reject the Grain Belt Express Response and deny Grain Belt Express’ application because the Commission misapplied its rules in its March 11 Order. The Commission’s order, therefore, was unlawful, arbitrary and capricious. Further, a review of the Grain Belt Express Response shows that there is very little additional relevant evidence to be adduced in additional proceedings. As a result, further proceedings would be inappropriate and a useless exercise. Finally, a review of the Grain Belt Express Response confirms UFM’s argument in its briefs previously filed in this case, that the proposed facilities are a private enterprise not devoted to the public convenience or necessity, and therefore are not qualified to receive a certificate of convenience and necessity.
And the Missouri Farm Bureau can't resist pointing out how futile this whole exercise has been:
Another initial point pertains to the information provided on the number of voluntary easements Grain Belt Express has obtained from landowners on the proposed route. According to Supplemental Exhibit 1 of Grain Belt Express’ Response, out of 724 tracts of land, Grain Belt Express has acquired only 45 easements voluntarily—about 6.2%. Grain Belt Express has been aggressively pursuing voluntary easements from landowners for a year. Given Grain Belt Express’ lack of success in convincing landowners that this is a good project for Missouri, granting Grain Belt Express the power of eminent domain would be inappropriate.
Really?  Would the MO PSC really grant eminent domain to a company that's going to need to use it on 93.8% of the properties?

Perhaps the MO PSC should have just denied the application in the first place, instead of opening this can of worms.  It's not too late!
2 Comments

FERC Hearing Concludes

4/23/2015

1 Comment

 
Yesterday marked the official conclusion of the FERC hearing that's taken up so much of my time over the past month or so.

I'm sure numerous celebrations occurred.

Some were more fun
than others
For those who remarked that the second celebration didn't look like much fun, I offer that the beer was picked up off the table, the light turned out, and the room vacated.  Instant fun!

Now, where did I leave my life?  Anyone seen it?

First, I offer this article from WSJ* (I admit it, the world has been revolving even though I paid it little attention).  It's finally been recognized that utilities may be investing in infrastructure as a cash cow.  Ya think?

The way the regulated rate world works is that the more they invest, the more $$ they make.  Although utilities have a built in O&M component in most stated rates, if they don't spend it all, they can use the money for something else, such as increasing shareholder dividends.  And they did.  But, as less power is sold, profits go down and the utility must turn to other profit centers, such as increased capital spending on long-neglected maintenance, or new transmission lines.  And rates go up.

And they wonder why we drink...

*If you can't read the article, google the headline "Utilities' Profit Recipe:  Spend More" and you should be able to access it directly.
1 Comment

Back to Gone

4/13/2015

1 Comment

 
Hi!  You've reached StopPATHWV Blog.  Your visit is important to me.  I'm sorry I can't come to the website right now... et cetera.

I'm off again, this time until it's over (a week?  two weeks?)  I predict another 6 days.  Too bad there's not some sort of football pool going on.  I might actually make some money that way.

If you're in possession of a call-in phone number to listen in to the festivities live, enjoy it.  Or just show up... it's a public hearing.

If not, transcripts have begun to be posted on the docket.  Go here.  Enter Docket No. ER09-1256 and list sub docket 002 in the correct fields.  Read.
Meanwhile, remember to play fair and be nice, everyone!  Sleep the sleep of the righteous.  A guilty conscience can be like a lead weight attached to your ankle.  Ain't nobody got time for that...
1 Comment

Can Colorado Utility Consumers Afford to be Unrepresented?

4/7/2015

2 Comments

 
Disturbing news out of Colorado this morning.  The Denver Post reports that the legislature is playing games with funding of the Colorado Office of Consumer Counsel (OCC) for the next 10 years.  Without funding and authorization, the OCC will simply cease to exist under Colorado's "sunset" law.

A concerned legislator likened the refusal to deal with the re-funding of the OCC to "Washington, D.C.-style politics."
"If people disagree on the policy, the substance or the process, that's fair; that's what we're each here to do," Garcia said. "But what we're seeing here is Washington, D.C.-style politics where you put something off to the side, and the committee chair doesn't give it due regard until it's too late."
Why is consumer counsel so important?  Because it is the utility consumer's only defense against high rates and utility policy that compromises their interest.  Only the consumer counsel is looking out for residential and small business interests during utility rate cases.  Without the OCC, residential consumers would have no choice but to represent themselves in every utility case before the Colorado Public Utilities Commission.  Who can afford the time or expense of that?  Nobody, therefore consumers would be unrepresented.  It's just not true that outside consumer groups, contingency-based lawyers, or class-action lawsuits can take the place of an independent, governmental advocate that defends the interests of all residential and small business consumers.

According to a report prepared last fall, the OCC regularly saves this class of consumers between $40-50 million per year in increased rates.  The cost of this representation is a mere $1.5M/year.  The funding for the OCC comes from fees paid by regulated utilities, not out of the state's general fund.  It costs consumers nothing, and it consistently saves them money.  The report recommends continuing the OCC until 2026.  However, the legislature is ignoring it, and without their nod, the OCC will sunset.

Don't let the Colorado legislature rob you of the representation that keeps your utility bill in check.  Without the OCC, out-of-control rate increases could have you lamenting that "someone" should do something about that.  The OCC is the consumer's "someone," even though most consumers don't even know they exist.  Get educated and take an active role in the processes that control your utility costs -- support the re-funding of the Colorado Office of Consumer Counsel. 

Halt The Power Lines makes it quick and easy to do your part!  Visit them here to find out how to take action!
2 Comments

TVA's IRP:  Reliability and Cost

4/7/2015

0 Comments

 
I had the pleasure last night of watching the Tennessee Valley Authority's public hearing of their 2015 Integrated Resource Plan (IRP), along with some knowledgeable and committed Clean Line opponents from Arkansas.  Well, okay, maybe watching wasn't exactly pleasant due to the incredibly SLOW "high speed" internet service I receive from Frontier that caused the streaming video to pause after every three words, but the company was outstanding!

The goal was to find out more about how TVA is looking at Clean Line through its IRP lens, and the likelihood that TVA may purchase the Plains & Eastern Clean Line's 3500MW payload.  As my Magic 8 Ball is fond of saying, "Don't count on it."

Although viewing from afar, we could tell that the room smelled like pizza and ponies, and could predict with amazing accuracy what the next speaker in line was going to talk about just by viewing the lower half of their outfit, their shoes, and any props they were carrying as they waited their turn at the microphone.  One college student's main goal seemed to be to mention Clean Line.  He was rebuffed by TVA staff, who told him they didn't model any specific transaction, and proceeded to list the different wind resource possibilities that were modeled:  1)  Wind in the TVA footprint; 2) Wind in the Midwest delivered via existing transmission; and 3)  long-distance HVDC wind injection.

Hey, wait a tick, did he say Midwest wind delivered via existing transmission?  So Clean Line is WRONG when it claims that existing transmission lines cannot deliver any new Midwest wind?  Sur-prise, sur-prise, sur-prise!

TVA's patient staff listened to a few pointless climate change speeches that went on way too long.  If there was a point to them that actually related to any specific part of the IRP, I'm not sure what it was.

TVA explained that it had modeled the HVDC option at a 50% capacity factor, however HVDC could not be depended on to actually deliver, so therefore it was modeled differently at peak load times.  That was sort of confusing, considering the clear and concise answers TVA provided to a similar question last June.
TVA analyzes historic and forecasted wind patterns to determine expected wind
deliveries at our system peak. Our forecasting and planning processes reflect
adjustment to wind generation at our summer peaks based on this analysis. Clean
Line has told us that a production profile provided by the independent meteorology
firm, 3Tier Oklahoma, shows that panhandle wind energy produces at about a 50
percent capacity factor between the hours of 4:00 p.m. and 7:00 p.m., thus
contributing to meeting peak demand. TVA's current wind resources produced
about 25 percent average capacity factor over that peak period last summer, with
significant variation each day (between 5 and 65 percent capacity factor). TVA will
take the seasonal and time-of-day energy patterns of wind into account when
evaluating adding additional wind energy to its portfolio.

Because wind is an intermittent resource that lacks some of the dispatch capability
of other resources, it does not eliminate the need for base load or dispatchable
power plants like nuclear, natural gas, coal and hydropower. Adding intermittent
generation resources like wind can be challenging to manage, particularly as the
volume of generation from those sources increases. Wind patterns are fairly
predictable, but not entirely so; in addition, weather and other factors can affect
output. To maintain reliability, a wind energy purchaser must keep adequate
capacity and spinning reserves to cover the variability inherent to wind. Spinning
reserve is typically calculated as the amount of capacity available to cover the loss of the largest generation source on the system.
Utilities across the country have
been integrating more wind into their systems over the last several years, and TVA
already integrates 1,515 megawatts of off-system wind power. The industry has
growing experience with this issue, but it does make ensuring reliability more
complex.
Experience requires a 25% capacity factor for wind, but TVA simply took Clean Line's word that it could reliably meet a 50% capacity factor?  Or is 25% the peak load factor TVA used in its IRP?  Message unclear, ask again later!

We were also told that calculating spinning reserve was an operational issue that would be undertaken outside the IRP, and the question about how much that would add to the cost of HVDC wind injection was avoided completely.  So, I guess that question remains unanswered, except for the part of TVA's June 2014 letter that advised TVA would consider all costs in its IRP?
TVA is studying the addition of new wind energy resources as part of the
development of its new Integrated Resource Plan (IRP). This process provides
opportunity for public participation. When TVA evaluates the cost of wind energy,
we include the value of the energy itself, as well as the cost to transmit out-of-valley
wind energy to the Tennessee Valley. In addition, there are costs associated with
the intermittent nature of wind generation.
Through the IRP, TVA will rigorously compare wind energy purchases against other alternative sources of energy
(renewables, new and existing TVA generating assets, or purchased power) to serve local power companies and directly-served customers in a cost-effective manner.
Outlook uncertain?  What?  Funny when the written report provides more answers than direct questions to knowledgeable individuals.  And the written IRP says that HVDC wind isn't an option until 2025.  I'm thinking that Clean Line needs to look elsewhere for customers.

If you'd like to watch the video (and you live somewhere out in the sticks where you have "high speed" internet that actually allows you to watch video) you can check it out here.
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Clean Line Causing American Rebellion

3/8/2015

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Second big Sunday story to blog about today, the St. Louis Post-Dispatch's examination of Clean Line as "a new kind of transmission developer."

This "new kind" of transmission developer is attempting to build transmission based on a "merchant" model.  Under this construct, the transmission developer shoulders all project risk.  In traditional transmission development, a project is ordered to be built by a regional planning entity to meet some reliability, economic or public policy need.  Because the project is undertaken to supposedly benefit regional ratepayers, a developer charges its project costs to ratepayers.  Ratepayers absorb the risk of successful development.  Clean Line's merchant projects chose not to proceed through this traditional process, therefore there is no determined need for its projects.  They are proposed completely as a speculative, profit-making venture, supposing that if they build it, a need will develop.  If Clean Line fails, its investors lose their investment.  There's no ratepayer-guaranteed regulated return.  Clean Line accepts all risk for its market-driven projects.

However, Clean Line has told state regulators that it may "have to" apply to regional planning authorities for cost allocation of its projects in the future.  In fact, Clean Line has been busy behind the scenes in the past, trying to drum up support for cost allocation of its projects.  Clean Line's "build it and they will come" strategy may also extend to getting its projects permitted, customers signed up, and then dumping the entire thing into the regional planning process as a needed "can't fail" project.  Beware, the enemy is at the gate!

So, Clean Line must shoulder all market risk of its voluntarily-undertaken projects.  However, Clean Line also wants state public service commissions and the U.S. DOE to grant it the power of eminent domain to take private property for use in its projects.  Eminent domain authority provides compensation to property owners for their property taken for use in public projects.  It also ensures that holdouts cannot derail a project, and that property is acquired at a reasonable price so public projects aren't burdened by the expensive land acquisition costs that a developer would be faced with if land acquisition wasn't forced on property owners.  There's a huge disconnect here!  If the privately-funded Clean Line is shouldering all market risk of its projects, that includes the cost of voluntary land acquisition.  Further examination of Clean Line's business model notes that the rates it may charge customers include all project costs, plus profit.  Cheaper land acquisition allows lower rates and/or higher profits -- Clean Line's choice.  Assuming all market risk for its project should also include the financial risk of voluntary land acquisition.

Clean Line's request for eminent domain authority is the driving force behind the huge rebellion of landowners, citizens, and local governments in seven target states.  Clean energy advocates and environmental organizations have unwisely chosen to involve themselves in the debate.  The Post-Dispatch talked to a representative of one such group, the National Resources Defense Council, who showcased his disconnect with the grassroots opposition groups:
“Clean Line’s not asking everyone within the region to pay for the line,” Moore said. “That’s the piece that sometimes causes state utility commissioners to pause, because the commissioners haven’t seen this kind of truly competitive business plan before.”

“The more favorable decisions from commerce commissions, the more opposition will recede,” Moore said.
Clean Line's business plan isn't "competitive," it relies on a government-granted right to condemn and take property.  If Clean Line's compensation package was so great, landowners would be falling all over themselves to sign on.  Instead, the company is looking at condemnation rates north of 80%.  80% of needed land condemned through eminent domain!  Never going to happen.

Moore is also completely WRONG in his contention that opposition will recede if public service commissions (or the U.S. DOE) make decisions favorable to the project.  Perhaps Moore doesn't want to acknowledge that Clean Line's "approval" in Illinois for its RICL project was conditioned on land acquisition being voluntary.  That's right... no eminent domain authority for Clean Line in Illinois.  Why?  Because those resistant 80% of targeted landowners number in the thousands and the political price would be too great.  Decisions favorable to Clean Line's land grab will actually drive increased opposition and public revolt.  The opposition numbers in the thousands and extends across seven midwest states (double in Illinois because it is a target of both the RICL and GBE projects).  And it's increasing every day.  Moore knows nothing about the Clean Line opposition and doesn't care to.  He's just pontificating in a most revolting way.  Maybe he should get to know an opponent or two before telling the media how they're going to react to PSC decisions?

Clean Line has no customers and is facing increased public and political opposition.  It's the poster child for a "new kind" of transmission development failure.
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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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