StopPATH WV
  • News
  • StopPATH WV Blog
  • FAQ
  • Events
  • Fundraisers
  • Make a Donation
  • Landowner Resources
  • About PATH
  • Get Involved
  • Commercials
  • Links
  • About Us
  • Contact

"A Significant and Unwarranted Intrusion"

12/31/2014

1 Comment

 
Just one more post about Requests for Rehearing of the Illinois Commission's issuance of a conditional permit for the Rock Island Clean Line.

The Illinois Landowners Alliance not only reiterates the arguments put forth by ComEd and the Illinois Farm Bureau, but adds a stylish lambasting of the Commission for permitting "a significant and unwarranted intrusion upon landowners."
ILA’s witnesses and its many other members have expressed repeatedly their uniform opposition to the Project, routing and treatment of landowners and their concerns. The Order’s granting of a CPCN to Rock Island will permit Rock Island to force its way onto landowner property to “make land surveys and land use studies” (220 ILCS 5/8-510), a significant and unwarranted intrusion upon affected landowners for a project that is so speculative and tenuous.
Although the ICC significantly conditioned RICL's permit before any actual construction begins, and denied them eminent domain authority at this time, the ICC also allowed RICL immediate access to private property to conduct its "surveys."

It's a powder keg.  Let's hope it doesn't explode before the ICC reconsiders its misguided decision to order the trespassing and destruction of private property by a company with no financial assets.  The landowners don't seem to have changed their opinion about RICL and probably aren't going to welcome them to their properties with open arms and a forgiving attitude.  I hope the ICC thinks this though...
1 Comment

How Transmission "Competition" Hurts Reliability and Costs Consumers More

12/31/2014

3 Comments

 
FERC is in love with the idea that "competition" between transmission developers will result in lower costs for consumers, but that's not necessarily true.  While competition between developers for a project identified in a regional plan could provide lower cost projects, it completely fails when developers create and submit projects before any need for them is independently recognized by the RTO, or when merchant developers propose transmission projects outside of regional plans.

Hopefully we've seen the last of the transmission projects designed simply to increase profits for a vertically integrated utility that is conceived before the RTO determines a "need" for it.  In this cart before the horse scenario, the RTO will create a smokescreen of need for an unneeded project and "order" it to be built.    These projects usually fall apart when they are examined with any amount of sincere effort.  When this happens, the RTO will cancel the project, but not before millions are spent for a transmission project that will never be built. 
When an RTO "orders" a project, its cost is allocated to ratepayers in the region.  How much are ratepayers paying each year for cancelled projects resulting from bad planning?

But an even more serious problem is developing as a result of merchant projects proposed outside the regional planning process.  These projects are never submitted into the regional planning process, therefore there is no need for them, either reliability, economic or public policy.  The only review they get from regional planners looks at how their interconnection will affect reliability.   These projects are not "ordered" to be built by regional planners. They are constructed at the expense and initiative of their owners, who recoup their costs through charging negotiated rates for transmission service.  The only goal of merchant lines is to make money.  If they aren't economically feasible, they won't be built.  The choice to build them lies entirely with their owners, even after they have a permit in hand.

But a merchant project proposed outside the regional planning process is never "ordered" and must prove itself "needed" to state and federal regulators in order to receive necessary permits or eminent domain authority.  In that instance, the state or federal regulator is stepping into the regional planning position to determine the need for a transmission project.  State and federal regulators are ill-equipped to make such a determination because they lack the kind of expertise found at an RTO.  The best a regulator can do is rely on the evidence submitted by experts in the case.  Merchant transmission developers can afford any number of experts who will say whatever they're paid to say.  Regulators can only afford in-house expertise, or rely on the experts hired by other parties. The decision is not based on any inherent knowledge, but on expert testimony.

So, what happens when a state finds a merchant transmission project serves some purpose and issues it a conditional permit to construct?  Now we've got two competing regional transmission planners with different projects in their plan.  The RTO version of the plan includes projects it has ordered that it has determined are needed for reliability, economic or public policy purposes, and these projects are being paid for by ratepayers.  The state uses the same plan, but it also includes the permitted merchant project, that doesn't serve any RTO-identified need.  Isn't this too much transmission?

What happens to the ordered regional plan if the merchant project is constructed?  Sometimes this effect is modeled into the plan so that other "ordered" projects may not be needed after all.  A permitted merchant project could cause cancellation of transmission projects in the regional plan before they are completed (but long after they start collecting their costs from ratepayers).  But, remember, a merchant project that has not been "ordered" by a RTO may never be built.  So, if a merchant project causes the cancellation of one or more RTO projects, it could jeopardize reliability if it is suddenly abandoned by its developers before being built.

Dilemma!  Perhaps FERC should take notice of the mess it has created and find a remedy.  I would suggest that projects must be part of a regional plan (whether RTO/ISO or other existing planning authority), and that unneeded merchant projects be prohibited.

Think I'm just nuts?  The Illinois Commerce Commission's recent conditional approval of the Rock Island Clean Line merchant transmission project is already causing doubt about other regionally planned transmission projects that are currently before the ICC.  As the Illinois Farm Bureau pointed out in its recent request for rehearing of the RICL decision, the RICL order is already having "a negative impact on consumers."  The IAA says that the RICL approval is having an immediate effect on two other transmission projects currently before the ICC, a MidAmerican project and an Ameren project, where the ICC staff has suggested that RICL's approval draws into doubt whether these two projects are needed.  And who pays for the other two regionally planned projects if they are cancelled by RICL?  Consumers.
As multiple intervenors have pointed out in this docket that Rock Island’s failure to produce a needs analysis from PJM and/or MISO hurts all of the stakeholders, it seems like this problem could have easily been avoided. The absence of this global analysis produces increased unpredictability and either slows or jeopardizes other legitimate transmission projects. This risk to the consumers could have easily been prevented.
In addition, the IAA points out that there has been no comparative analysis by the ICC as to which of these projects are necessary to promote the development of an effectively competitive electricity market that operates efficiently, are equitable to all customers, and are the least cost means of satisfying those objectives.  Regional planners say that the MidAmerican and Ameren projects are the best options.  The ICC has determined that RICL is the best option, without any attempt at making a fair comparison.

So, what shall it be?  Should we cancel regionally planned projects that conflict with merchant plans and hope the merchant projects are eventually built?  Will the lights go off if none of them get built?  We simply cannot have it both ways. 
Now, other potentially viable and successful transmission projects will have to wait on the sidelines to see if Rock Island can get its act together by, among other things, finding money, qualified employees, suppliers, and numerous regulatory approvals. None of this benefits Illinois consumers, the market, or the reliability of the electric system. Instead, it puts everything at greater risk.
Independent transmission projects based on greed are now actively hurting consumers.  This game must stop.
3 Comments

Grassroots Group Defeats AEP Transmission Project in Arkansas

12/30/2014

0 Comments

 
Save the Ozarks is celebrating a big victory in Eureka Springs, Arkansas, this evening!

Today, AEP subsidiary Southwestern Electric Power Company (SWEPCO) withdrew its application for a permit from the Arkansas Public Service Commission, citing:
SWEPCO received a notification letter from SPP stating that updated electric load  forecasts showing lower future electric demand in North Arkansas than prior forecasts for the area critical to the Facilities, and the  recent cancellation of several large, long-term transmission service reservations, establish that the Facilities are no longer needed to meet the reliability needs in the region.
The withdrawn transmission project was a 60-mile, 345kV monster proposed to plow through the Ozarks as part of a plan developed in 2007.  2007?  That's 8 years ago!  Isn't it funny that SPP continued to find a need for this project, until the Arkansas Public Service Commission made clear that it wasn't likely to approve it.  Suddenly, SPP had an epiphany on load forecasts and transmission service reservations.  How convenient.  Except, that's exactly the same thing that happened with AEP's PATH transmission line when  Virginia state regulators became suspicious and ordered further studies by regional grid planner PJM Interconnection.  This is how a regional planning organization and a transmission owner fall on their collective sword.

How are electric consumers supposed to believe a thing these transmission cartels say anymore?  It's quite clear that transmission planning organizations are conditioned to simply rubber stamp the transmission building whims of their members.  If nobody resists, then the project gets built.

However, the folks of NW Arkansas resisted... and formed Save the Ozarks.  Under the competent leadership of Pat Costner, retired Greenpeace scientist, Save the Ozarks demonstrated that it takes a big, loud, committed, very public opposition, along with competent legal representation to defeat a transmission line.  Lawyers, legal processes and polite demurral to power company public relations campaigns alone do not win transmission permitting battles.  It's about making the transmission project political poison and telling the public the truth.  Pat knew exactly what to do and she did it with style and dignity!

So, Congratulations, Save the Ozarks!  Enjoy your victory for a few days before you start wondering about who is going to pay for SWEPCO and SPP's big "oops."

And for my "friends" at AEP... here's mud in your eye!

"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has." - Margaret Mead
0 Comments

How Deep is the Clean Line Corruption at the U.S. Department of Energy?

12/15/2014

5 Comments

 
Get out your hip-waders, folks, it's going to get pretty deep!

According to this article, in 2011 former Secretary of Energy Steven Chu appointed Lauren Azar to a position at the DOE in order to carry out the administration's political agenda. 
Chu's selection of Azar was largely seen as a sign of the Obama administration's intense interest in expanding the grid to support renewables and tackle climate change, sources said.
Azar got the finger pointed at her as the impetus for a controversial memo that urged federal power marketing agencies (PMAs) to use their authority to help get privately funded transmission projects built.
As laid out in the memo, she also championed Texas-based Clean Line Energy's application to partner with DOE through its never-before-used authority under Section 1222 of the Energy Policy Act, which would allow a PMA with federal authority to site the line and overcome state opposition.
It's not about reliability or economics of the grid, it's about federal support for certain companies with personal ties to the DOE:
Jimmy Glotfelty, founder of Clean Line Energy Partners and a former senior electricity adviser for President George W. Bush, said Azar should be remembered for trying to build infrastructure and integrate renewables in a thoughtful and cooperative manner.

"The customers of PMAs are pretty protective, and if you ask a lot of people who have been in her shoes -- including myself -- it's not uncommon to get into debates with customers of PMAs," he said. "They're tough negotiators."
Clean Line, with its DOE-connected "vice president," became the only transmission company to take advantage of Sec. 1222 of the Energy Policy Act of 2005 during a very convenient RFP process run by the DOE in 2010.  But the pre-Azar DOE just wasn't aggressive enough:
Azar brought that same spirit to DOE. She helped bring together the "federal family" in 2011 -- nine agencies key to streamlining federal permitting of major new power lines that could have taken up to 15 years to garner approval (Greenwire, Oct. 5, 2011). DOE already had existing authority to do so under 216(h) of the Energy Policy Act of 2005, language that allows the agency to coordinate federal and environmental reviews.

"DOE, until I got there, implemented [the rule] in somewhat of a tepid manner," she said. "I came in like gangbusters as I always do and not only helped to lead the rapid respond team for transmission but helped DOE draft some rules for 216(h), negotiate with the nine agencies."
Shortly after Azar was appointed, Clean Line submitted an "updated" application under Sec. 1222 in order to use the federal power marketing agencies to take land for its private gain and override state denials.
The Honorable Lauren Azar
Senior Advisor to the Secretary
U.S. Department of Energy
1000 Independence Avenue SW
Washington, D.C. 20585

August 17, 2011

Dear Lauren,

With development efforts well under way, the Plains & Eastern Clean Line is positioned to
help meet President Obama's call for 80% clean energy by 2035. The Plains & Eastern Clean Line will provide affordable, renewable power to millions of customers in the  southeastern United States. Regulatory and permitting approvals at the state and federal levels are the critical path items. Since submitting a proposal in July 2010, the Plains & Eastern Clean Line has made substantial development progress, strengthening the case for a partnership with the Department of Energy (DOE) and Southwestern under  Section 1222 of the Energy Policy Act of 2005.

The attached document provides an update on our efforts, including the widespread support the project has received from a diverse group of stakeholders. It also supplements the original application with respect to how the project is necessary to accommodate the increase in demand for transmission capacity and how the project is consistent with needs identified in transmission plans or otherwise by the appropriate transmission organization.
Projects like the Plains & Eastern Clean Line have the potential to return the United States to a global leadership position in clean energy. The private sector has the resources and the desire to invest in our aging infrastructure and we respectfully ask that the DOE exercise its authority to make it possible. We  appreciate the attention you are giving the Plains & Eastern Clean Line. We will be in Washington, DC regularly in the coming months and would like the opportunity to sit down with you and your team to review the project materials and respond to any  questions.
Magically, the DOE entered into an Advance Funding and Development Agreement with Clean Line in early 2012, despite the fact that Clean Line did NOT meet all the statutory criteria in Sec. 1222.  Sec. 1222 requires that a project:
2) is consistent with--
(A) transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act [16 U.S.C. 791a et seq.]) if any, or approved regional reliability organization
Clean Line's projects are not a part of any transmission expansion plan, therefore they cannot be "consistent with" a plan that does not include them. 

Instead, the DOE relied on:
DOE has emphasized the need for additional high voltage transmission capacity to deliver renewable resources from transmission-constrained areas, stating in its "20% Wind Energy by 2030" Report that "If the considerable wind resources of the United States are to be utilized, a significant amount of new transmission will be required."
GRID2030 is probably the highlight of Clean Line "vice president" Glotfelty's career at the DOE.  And then Glotfelty leaves the DOE after setting the stage, and personally invests in Clean Line Energy Partners? 

Clean Line brags:

Jimmy worked for George W. Bush, for almost eight years, at both the gubernatorial and presidential levels. He led the Bush Administration’s efforts on electricity issues with Congress and the electric utility industry.  In this capacity, he founded Office of Electric Delivery and Energy Reliability at the Department of Energy (DOE) and served as its first Director.
Let's see... which office is undertaking DOE's consideration of Clean Line's application under Sec. 1222? 
The Department of Energy’s (DOE) Section 1222 Program is administered by the Office of Electricity Delivery and Energy Reliability (OE).
Wow!  What a coincidence!  A DOE appointee uses his office to set up a scheme whereby private investors can override state authority and regional transmission planning processes, and then leaves his position to personally invest in just such a scheme?  And the office he "founded" is now in a position to approve his financial scheme?

Something stinks here...

Maybe this guy should investigate and clear up the appearances of federal actions undertaken for private profit?

Whether the department will take the same approach under Chu's successor, MIT nuclear physicist Ernest Moniz, remains unclear.
I don't think that Moniz has a clue what his underlings are up to, but that's no excuse to let this federal land-taking scheme continue.

Clean Line's plans are a for-profit initiative masquerading as a political agenda.  And DOE's political agenda is favoring corporate interests over the interests of the citizens and consumers it is supposed to serve.  Let's clean the stink out of our federal Department of Energy!
5 Comments

Clean Line's Grain Belt Express Welcomed to Illinois

12/3/2014

7 Comments

 
Clean Line's Texas hucksters showed up in Illinois last night, and the citizens were there to meet them.
Outside the Church of the Nazarene Fellowship Hall, members of a grassroots protest group gathered to tell landowners of their opposition to the project. Inside the hall, company officials told of its benefits.
Which group do you think was telling the truth?  Hint:  One group was paid to be there by Clean Line, the other was there voluntarily.

Apparently there was lots of "misinformation" afoot, but only one group whined about "misinformation."  Guess which one?  It might be the one laboring under the misapprehension of the information deficit model.

The accompanying picture is a classic:  crowds of disenchanted landowners, some with arms folded, staring down the "clean" employee performing a song and dance in front of a company poster at an "information station."

The divide and conquer routine isn't working, Clean Line.  These folks got the jump on you.

Silly Clean Line routed their project through land owned by a local attorney.


"They are filing for expedited review with the (Illinois Commerce Commission) which provides for limited time for landowners to object and even shorter filing periods, which constrains ability to have fair and full hearings insuring that due process rights of each landowner are protected," Probst said.
"Our firm is looking into calling a meeting of landowners and invite other interested parties to discuss what options are available to the landowners of Shelby County," the lawyer added.
Ooopsy, Clean Line!  Why the hurry?  Hoping that you can ram this project through approvals at the ICC before the landowners organize enough to seek legal counsel?  Too late!

Bravo to the citizens of Illinois who have worked so hard to prepare for Clean Line, as well as to all the experienced Clean Line opponents who traveled to the meeting to help out.  What an auspicious beginning!
7 Comments

What Society Can Learn From Dr. Luther Gerlach

12/2/2014

3 Comments

 
A while back, I shared a little bit about Dr. Luther Gerlach and his work studying public response to electric transmission projects and how it produces debate about and shapes our energy future.  I included a link where you could download his short film, Grassroots Energy.

Now I'd like to share more about this amazing man, how he works, and how he created Grassroots Energy. 
Luther and Ursula Gerlach doing research in early 1970s on a protest of long haul truckers against high cost of their diesel fuel.  They made a 16mm film of the truckers' strike.
Dr. Gerlach explains how and why Grassroots Energy was made:
In the late 1990s, I made 12 videos for a distance learning version of my course Ecological Anthropology at the University of Minnesota, Twin Cities. I made these with the assistance of my wife, Ursula, my colleague Paul Eide in University Media Resources, and research assistant Tis Stringer.  To make these videos, we used 16 mm movie film, 35 mm slide/still film, and audio tape that Ursula and I had taken over years of anthropological field research in the USA, Kenya, Germany, and other places.  Our practice has been to complement written note taking with film and audio recording during this field research.  We draw upon our film and tape library to present lectures in class and also to make films and videos for use in class and in distance learning.  In recent years, we have digitized film and analog tape to make programs that can be presented via computer. 

It is thus that we made the Ecological Anthropology program Grassroots Energy.  I introduce and then conclude the movie with still photos and voice over narration. The movie itself is 27 minutes long, originally a 16 mm film.  We filmed during our field research.  We began research and recording in August 1974, shortly after farmers and townsfolk in West Central Minnesota learned that Cooperative and United Power had applied to state authorities for permits to build a +/-400kVDC line from a mine mouth plant in North Dakota across their land to a AC converter facility in a Minneapolis suburb.  We continued research and recording through the construction and energizing of the line and early response in 1980.  The film focuses on the period 1976-1978, when resistance to the line was most intense and widespread. 

Filming in the field and making slide shows and movies in the era before digital imaging presented problems not experienced by the users of digital cameras.  Instead of being able to take countless pictures and see the results immediately, one had to ration film and wait until processing to determine if one “got it or not.”  One had to keep film – and batteries - cool in the summer and warm in the winter.  And it was obvious to all that one was taking pictures or recording audio.  In any event, we observed the cardinal and ethical rule of anthropology: to get informed consent of those photographed.  

Before we released the film about the CU transmission line issue and resistance to it, we showed it to those involved in the resistance. 

A citizen’s organization in Wisconsin concerned with electricity production, distribution and use asked me if it could show the Grassroots Energy movie for a fundraiser.  After some deliberation, I agreed.  I then also agreed that a blog concerned with electricity transmission issues could provide access to this movie.  Further, I have included clips from the movie as well as other information about the CU case in a presentation to a workshop on transmission held in part by Edison Electric Institute.

I am now working to make available more of my published and unpublished material, print and audiovisual, on transmission and other energy issues.

Luther P. Gerlach, PhD
Professor emeritus of Anthropology, University of Minnesota

Biosketch

My studies of public response to electricity transmission lines is part of my broader study of the interplay of social movements and established orders in the management of technological and ecological risk and resource use locally, regionally and globally.  Thus, I examine how the interplay between advocates and opponents of transmission grid expansion produces debate about the energy future and shapes this future.

I have studied social movements, ecological adaptation, and related cultural change in the USA, Germany, and along the Kenya coast.  Following undergraduate and graduate study at the University of Minnesota, I served as a US Army officer in the Far East and a US government researcher in Germany. I then attended the University of London, particularly its School of Oriental and African Studies and also its London School of Economics, receiving certificates in African Law(Islamic Law Option) and Swahili, and a PhD in Cultural Anthropology (1960), following field research in Kenya.  In addition to my professorship in Anthropology at the University of Minnesota, I have been visiting professor at the Environmental Quality Lab of the California Institute of Technology, the Aspen Institute of Humanistic Studies, Oak Ridge National Laboratory, Science Center, Berlin, Germany.
If you haven't watched the film yet, you can download it here.

Luther's research, writings and film come closest that I have ever seen to capturing the feelings and purpose of people and groups who oppose transmission lines.  He has an understanding and appreciation for both sides of the energy debate, and studying his work should propel us along toward solutions. 

Instead, it appears that we are poised to make the same mistakes about centralized renewables that we made with centralized fossil fuel generation decades ago.  Why must the few sacrifice for the many when there are better solutions available?  Only when we understand social movements and energy equality can we learn from history and stop making the same mistakes over and over.

Dr. Gerlach has a huge body of work, some of which I've had the pleasure to read and ponder, and I hope he continues to make more of his published and unpublished works available.  There's so much to be learned!

Some of Dr. Gerlach's publications pertinent to social movements and energy for further reading:


Gerlach, Luther P, 2014. Public Reaction to Electricity Transmission Lines, Reference Module in Earth Systems and Environmental Sciences, Elsevier, 2014. 21-Mar-14 doi: 10.1016/B978-0-12-409548-9.09111-9.

Gerlach, L. P. (1999). The structure of social movements: Environmental activism and its opponents.  In Waves of Protest: Social Movements since the Sixties.  (J. Freeman and V. Johnson, Eds.), pp. 85–97. Rowan & Littlefield, NY

Gerlach, Luther P., and David Bengston. 1994. “If Ecosystem Management Is the Solution, What Is the Problem?” Journal of Forestry 92, no. 8 (August): 18–21.

Gerlach, L. & Palmer, G. (1981). Adaptation through evolving interdependence, pp 323-381 in Nystrom P.C, & Starbuck W.  Handbook of organizational design, vol 1. Adapting 0rganizations to their environments. New York, Oxford Press

 Gerlach, Luther P. (1979). Energy Wars and Social Change, in Predicting Sociocultural Change, Susan Abbot and John van Willigen, eds. Southern Anthropological Society Proceedings #13. Athens: University of Georgia Press 

Gerlach, L.P. 1978  Gerlach, Luther P. (1978). “The Great Energy Standoff.” Natural History 87 (January).

Gerlach, Luther P., and Virginia H. Hine. 1973. Lifeway Leap: The Dynamics of Change in America. Minneapolis: University of Minnesota Press.

Gerlach, Luther P., and Virginia H. Hine. 1970. People, Power, Change: Movements of Social Transformation. Indianapolis: Bobbs-Merrill.

 Gerlach LP and Eide P (1978) Grassroots Energy, 16-mm 27- minute, sound, color film. University of Minnesota Media Resources. Distributed by Penn State University Film.

We all owe Dr. Gerlach and his wife many thanks for their capable documentation and thoughtful commentary on our energy wars.  Now, let's do it better this time around as we move toward a cleaner, more democratic energy future!
3 Comments

The Bluff and Bluster of Clean Line's Fantastical Business Plan

12/2/2014

3 Comments

 
Finally got around to reviewing the Illinois Commerce Commission's 200+ page final Order on Clean Line's RICL project.  Imagine my shock and horror to find that the actual Order bore no resemblance to the posturing Clean Line did for the media immediately following the Commission's vote.

Clean Line is nothing if not optimistic about its business plan to construct nearly 2000 miles of new "merchant" transmission lines across eight Midwestern states.  However, Clean Line's claims rarely comport with reality.  Isn't it odd that Clean Line had a press release ready to go the second the Commission voted?  It's all about pretending the Commission's decision "marks a critical milestone needed to deliver low-cost wind energy to Illinois and [those mysterious, unnamed] states farther east," no matter what the actual Order said.

And the press ate it up.  Shame on them!  The rest of us have been snickering at how much egg ended up on Clean Line's face for running with a media fantasy, and now the REAL story shall be told.

The ICC's Order issued a CPCN for the proposed business plan, finding it would be "needful and useful to promote competitive electricity markets in Illinois" if it ever gets built.  However, the Commission also found that RICL is not necessary to provide adequate service to customers, and that is is not necessary.  In addition, the Order requires Clean Line to jump some pretty high hurdles to make its business plan actually happen before it can build anything.
  A couple of conditions the ICC attached to the CPCN require that the company make a compliance filing demonstrating that it has funds available to construct the entire project before beginning any construction.  The ICC also attached a stipulation making the CPCN null and void if Clean Line attempts to allocate costs of its project to Illinois ratepayers through regional cost allocation administered by regional transmission organizations and FERC.  And, all this must happen within 2 years from the date of issue.  Tick-tock, Clean Line!

Oh... where to begin?  Let's talk about that financing stipulation.  In order to convince lenders to pony up the money to build the project, Clean Line must demonstrate an income stream.  It needs to have signed contracts with shippers or end users.  It has no end users.  The proposed shippers have not even been constructed yet.  In order to construct these mythical shippers (wind farms), the wind farms also have to borrow money to construct their projects.  In order to receive financing to build, these shippers must also demonstrate an income stream via signed contracts with purchasers.  It's a headache-inducing string of dominoes fraught with risk.  Utilities hate risk.  If utilities need to purchase renewables, there's plenty of EXISTING renewables available at concrete prices.  Since none of Clean Line's shippers exist, none of their proposed prices can be negotiated into signed contracts.  Remember... only two years to get this done!  And if you think it's going to happen, I'm a fairy princess.

Because the ICC did not find the project necessary under Sec. 8-503 of the PUA, Clean Line's CPCN only authorizes the company to build on voluntarily-negotiated easements.  The easements Clean Line has managed to sign with landowners are few and far between.  The rest of the landowners have rejected Clean Line's efforts and may continue to do so.  Clean Line was so certain that it would be granted eminent domain authority to take property that it has disrespected landowners with fantastical claims that bear no resemblance to reality
, along with underhanded tactics and empty promises.  You've got to get up pretty early in the morning to fool a farmer.  Nobody's buying it.  And since Clean Line has already ruined any possible cordial relationship with landowners, it is unlikely to regain what has already been tossed away.

And that brings us to the match tossed into the powder keg...  the CPCN issued by the ICC:


The Commission also observes that the approval of a line route as part of this Certificate Order should facilitate negotiations with landowners, and that the issuance of the Certificate will enable Rock Island to gain access to the property to conduct surveys and related activities, which are steps characterized by Rock Island as important ones in which to engage in the near future.
That's funny.  The Commission was so uncertain about this company's financial resources that it required it to have financing in place before beginning construction, but yet this same company can now enter upon and damage private property to conduct its surveys, without the demonstrated financial resources to guarantee that landowners will be compensated for damages.  What happens when Clean Line's surveys damage private property and the company refuses to make landowners whole?  Where's the remedy for landowners?  Will the ICC be policing Clean Line's survey activities?  Will landowners be left swinging in the wind with only a civil remedy?  And, I don't think Clean Line barging onto private property and leaving a mess behind will "facilitate negotiations with landowners."  Call me jaded...

So, Illinois landowner groups now have been handed the task of figuring out how to protect their interests all on their own.  And they will.

Two years, remember that.

And, in addition, RICL has just barely begun the permitting process in Iowa, where thousands of landowners have joined forces as the Preservation of Rural Iowa Alliance, and hired counsel and witnesses to participate in the Iowa Utility Board's review of RICL.

Two years.

I'm thinking that this thing is NEVER going to happen.  The ICC Order requires Clean Line to perform in accordance with its fantastical business plan to get all this accomplished in two years.

So, despite sweeping bluster like
“The ICC approval is a great step forward for the Rock Island Clean Line project and brings Illinois one step closer to creating a cleaner energy future,” said Michael Skelly, President of Clean Line Energy. “We are grateful to the Commission for their careful consideration of our application and proposed route. By approving game-changing projects like the Rock Island Clean Line, Illinois will benefit from access to low-cost clean energy and job creation in the construction and manufacturing sectors.”
the Order doesn't actually move RICL closer to reality.  It simply starts the clock.  Tick-tock.

Todd Maisch, President of the Illinois Chamber of Commerce should be eating the words Clean Line put in his mouth:

Companies like Clean Line that propose electric transmission projects are forced to meet a high threshold to prove that their energy project serves the public need and benefits consumers.
...because Clean Line didn't actually meet the ICC's high threshold to be found necessary, and therefore has to make its plan a reality before it could be granted the authority to build the project and take land from unwilling owners.

Michael Cornicelli, Executive Vice President of the Building Owners and Managers Association of Chicago, or BOMA/Chicago also had some inapt words:
This project should demonstrate that independent, investor-driven transmission infrastructure can become a viable business solution in a traditionally utility-driven arena.
...but only if it can make its fantastical business plan into reality.   I think the ICC's Order demonstrates that merchant transmission projects undertaken outside the traditional regional planning process cannot succeed, but time will tell.  Two years.

Clean Line also makes fantasy claims about its ability to reduce carbon emissions:
The wind energy delivered by the Rock Island Clean Line will allow other generators to run less and burn less fuel by eliminating the need for the equivalent amount of energy to come from fossil fuels, thereby reducing pollution. More than 1.4 million homes will be powered by the renewable energy generated as a result of this project.
Because it is an intermittent resource, baseload fossil fuel generators will be required to run constantly to back up Clean Line.  The ramping up and down of baseload plants actually produces MORE emissions than running at a constant rate.  Clean Line's insistence that its transmission line will reduce fossil fuel generation on a basis equal to its production is unrealistic fantasy. 

And, we'll end with this:

Developing a project of this scale is a long-term undertaking...
Yes, indeed.  Two years.  Tick-tock!
3 Comments

Landowners Prevail Over Rock Island Clean Line Eminent Domain Scheme

11/26/2014

0 Comments

 
You won't be seeing variations of the word "approve" in my headline.  That's because the Illinois Commerce Commission decision yesterday was not a pivotal moment that sealed the project's success.

Far from it.

Although the actual Order has been withheld from the parties and the general public for the time being, I've been able to piece together a general idea of its contents from various news stories, along with knowledge of what was in the proposed order issued by ALJ Larry Jones several months ago.

Clean Line applied to the ICC under two separate statutes.
Rock Island therein requests an order granting it a certificate of public convenience and necessity (“CPCN” or “Certificate”), pursuant to Section 8-406 of the Act, authorizing it to operate as a transmission public utility in the State of Illinois and to construct, operate and maintain an electric transmission line (“Project”); and authorizing and directing it, pursuant to Section 8-503 of the Act, to construct the proposed line. 
News reports say that the Commission granted the CPCN under Section 8-406, but did NOT order it to construct the line under Section 8-503.

Sec. 8-406 makes it technically possible to construct the line, if it can acquire VOLUNTARY easements from all affected landowners. 

Only under Sec. 8-503 may the company be granted the authority to take property through eminent domain condemnation.  An order under 8-503 would set the company up to effect takings through mere procedural steps.  But the ICC DENIED Clean Line's application under Section 8-503.  Therefore, Clean Line would have to come back before the Illinois Commerce Commission with a second application for an order under Sec. 8-503 at some point in the future, with likely similar results.

ROCK ISLAND CLEAN LINE HAS BEEN DENIED EMINENT DOMAIN AUTHORITY TO TAKE PROPERTY IN ILLINOIS!

Big win for landowners!


Know this -- the ICC would never grant Clean Line eminent domain authority to take the majority of its route.  Usually, holdouts in transmission line cases that actually end up being taken via eminent domain are few and far between.  There's strength in numbers.

Feel free to say "no."  Isn't it ironic that a company that has been telling regulators and the media how well it has been "collaborating with landowners" would now actually have to... well... collaborate with landowners?  Perfect!  However, Clean Line's lies and underhanded tactics have inspired massive distrust by landowners.  And every farmer knows... you reap what you sow.
0 Comments

Testimony Filed in PATH's Abandonment/Formal Challenges Case at FERC

11/24/2014

1 Comment

 
Friday marked the first time the public has been able to take a look at what's shaken out of PATH's consolidated FERC case (ER09-1256-002 & ER12-2708-003).

Docket No. ER09-1256 deals with the three Formal Challenges to PATH's formula rate filings for rate years 2009, 2010 and 2011 that were made by West Virginia ratepayers Keryn Newman and Alison Haverty.  The Challenges alleged that PATH recovered millions of dollars that it was not entitled to.

Docket No. ER12-2708 deals with PATH's recovery of $121M of stranded capital investment in the PATH project.  In 2008, FERC granted PATH the right to recover all prudently-incurred expenses for the project in the event it was abandoned for reasons beyond PATH's control.

These two very different PATH cases were consolidated by FERC in 2012, forever joined at the hip for settlement and hearing purposes.

Earlier this year, the settlement phase ended and a procedural schedule for hearing was set.  Under the procedural schedule, PATH filed its Initial Direct Testimony in May of this year, supplemented in July.  Intervenors filed their Direct and Answering Testimony on Friday.  The public, trial-type evidentiary hearing is scheduled to begin on March 24, 2015 in Washington, D.C.

Here's what was filed Friday:

Direct and Answering Testimony of Keryn Newman and Alison Haverty, along with testimony from their witness Doug Kaplan.  Files are labeled, and the narratives are files number 2 of 20, 16 of 20, and 17 or 20.  The other files are supporting exhibits as mentioned in the testimony.  This testimony deals exclusively with the Formal Challenges in Docket No. ER09-1256.

Testimony and Exhibits of FERC Trial Staff.  Witnesses Miller and Deters deal with the Formal Challenges, while witness Keyton testifies on PATH's return on equity percentage that is part of the abandonment docket.

State Agencies and Joint Consumer Advocates filed testimony.  The testimony of witness Lanzalotta is with regards to the amount PATH should recover in the abandonment docket, while witness Woolridge deals with PATH's return on equity in the same docket.  The third JCA witness questions the prudence of PATH's legal expenses.
1 Comment

DOE Inspector General Opens Investigation of FERC's Office of Enforcement

11/20/2014

1 Comment

 
Well, here's a chance for our government to work for us!

It was reported on Monday that DOE's Inspector General will be "undertaking a review" of FERC's Office of Enforcement" at the urging of several U.S. Senators.

The lawmakers have urged the IG to look into the way FERC investigates market manipulation.  Earlier this year, a very public battle between FERC's OE and energy trading firm Powhatan Energy Fund LLC made headlines and haunted former Director of FERC's Office of Enforcement Norman Bay's nomination to the Commission.
Sen. Robert Casey, D-Pa., was the first to ask the inspector general to look at the way FERC has been investigating alleged energy market manipulation. Stressing the need for investigations to be transparent, Casey in July urged Friedman to look at seven specific aspects of FERC's enforcement program, including whether the agency has pursued enforcement actions against entities "that were not acting in violation of then-current applicable laws and regulations," and is "properly allocating its limited resources to investigation of cases that have the most deleterious effects on energy markets."

Then, in September, Barrasso and Sen. Susan Collins, R-Maine, asked the inspector general to explore allegations questioning the fairness and transparency of FERC's enforcement program, including those made in an Energy Law Journal article co-authored by a former FERC general counsel asserting that the commission's enforcement process has become "lop-sided and unfair."

The two senators specifically asked if FERC is holding certain parties to different standards with regard to market manipulation. For instance, Barrasso and Collins questioned whether the public is being given "actionable notice" of the types of conduct FERC considers to be market manipulation. They also asked Friedman to explore the article's allegations that the targets of FERC investigations and their employees are not being afforded the due process "required by FERC's own regulations and precedents" and that provided by other federal enforcement agencies.
The IG will also be investigating any "quid pro quo" connections between enforcement actions and other unrelated FERC actions, and some craziness about career vs. non-career positions.

FERC has publicly offered a recent defense against the allegations.

Some have wondered whether FERC applies different standards to those it considers outsiders to its little energy fiefdom.  Does FERC go after its utility regulars with the same zeal it reserves for banks, traders, companies or individuals that don't regularly wander its halls and hearing rooms?  Is FERC's OE all about big headlines, or is it about justice?  Are utility transgressions dealt with by sweeping the matter under the rug or slapping the offender on the wrist?

It's going to be interesting.  Let's hope we don't next have an investigation of DOE IG's investigation to determine whether that investigation was carried out in a fair manner.  They could run out of inspectors to inspect each other at some point.
1 Comment
<<Previous
Forward>>

    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.


    Need help opposing unneeded transmission?
    Email me


    Search This Site

    Got something to say?  Submit your own opinion for publication.

    RSS Feed

    Archives

    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories

    All
    $$$$$$
    2023 PJM Transmission
    Aep Vs Firstenergy
    Arkansas
    Best Practices
    Best Practices
    Big Winds Big Lie
    Can Of Worms
    Carolinas
    Citizen Action
    Colorado
    Corporate Propaganda
    Data Centers
    Democracy Failures
    DOE Failure
    Emf
    Eminent Domain
    Events
    Ferc Action
    FERC Incentives Part Deux
    Ferc Transmission Noi
    Firstenergy Failure
    Good Ideas
    Illinois
    Iowa
    Kansas
    Land Agents
    Legislative Action
    Marketing To Mayberry
    MARL
    Missouri
    Mtstorm Doubs Rebuild
    Mtstormdoubs Rebuild
    New Jersey
    New Mexico
    Newslinks
    NIETC
    Opinion
    Path Alternatives
    Path Failures
    Path Intimidation Attempts
    Pay To Play
    Potomac Edison Investigation
    Power Company Propaganda
    Psc Failure
    Rates
    Regulatory Capture
    Skelly Fail
    The Pjm Cartel
    Top Ten Clean Line Mistakes
    Transource
    Washington
    West Virginia
    Wind Catcher
    Wisconsin

Copyright 2010 StopPATH WV, Inc.